Essex Announces Second Quarter 2024 Results and Raises Full-Year 2024 Guidance
Essex Property Trust (NYSE: ESS) reported its Q2 2024 earnings. Net income per diluted share decreased 6.5% to $1.45 compared to Q2 2023. Core FFO per diluted share rose 4.5% to $3.94, surpassing guidance by $0.11 due to favorable NOI growth. The company achieved a 3.4% increase in same-property revenue and a 3.0% rise in NOI compared to Q2 2023. Year-over-year blended rate growth improved to 3.4% from Q1's 2.2%. Essex acquired two properties in Northern California for $147.7 million.
Essex raised its full-year 2024 guidance: Net income per diluted share is now expected to be $8.23-$8.47, and Core FFO per diluted share is expected to be $15.38-$15.62. The guidance for same-property revenue growth is revised to 2.70%-3.30%, and same-property NOI growth is raised to 1.80%-2.80%. The company also emphasized its liquidity with $1.1 billion available via undrawn credit facilities, cash equivalents, and marketable securities.
Essex Property Trust (NYSE: ESS) ha riportato i risultati del Q2 2024. Il reddito netto per azione diluita è diminuito del 6,5% a $1,45 rispetto al Q2 2023. Il Core FFO per azione diluita è aumentato del 4,5% a $3,94, superando le previsioni di $0,11 grazie a una crescita favorevole del NOI. L'azienda ha registrato un aumento del 3,4% nel fatturato degli immobili già in portafoglio e un incremento del 3,0% del NOI rispetto al Q2 2023. La crescita del tasso misto anno su anno è migliorata al 3,4% rispetto al 2,2% del Q1. Essex ha acquisito due proprietà nel Northern California per $147,7 milioni.
Essex ha elevato le previsioni per l'intero anno 2024: Il reddito netto per azione diluita è ora previsto tra $8,23 e $8,47, e Il Core FFO per azione diluita è previsto tra $15,38 e $15,62. Le previsioni per la crescita del fatturato degli stessi immobili sono state riviste al 2,70%-3,30%, e la crescita del NOI degli stessi immobili è stata aumentata all'1,80%-2,80%. L'azienda ha inoltre sottolineato la propria liquidità con $1,1 miliardo disponibili tramite linee di credito non utilizzate, equivalenti di cassa e titoli quotabili.
Essex Property Trust (NYSE: ESS) informó sobre sus resultados del Q2 2024. El ingreso neto por acción diluida disminuyó un 6.5% a $1.45 en comparación con el Q2 2023. El Core FFO por acción diluida aumentó un 4.5% a $3.94, superando la guía en $0.11 gracias a un crecimiento favorable del NOI. La compañía logró un incremento del 3.4% en los ingresos de propiedades similares y un aumento del 3.0% en NOI en comparación con el Q2 2023. El crecimiento de la tasa combinada interanual mejoró al 3.4% desde el 2.2% del Q1. Essex adquirió dos propiedades en el norte de California por $147.7 millones.
Essex elevó su guía para todo el año 2024: El ingreso neto por acción diluida se espera ahora que sea de $8.23 a $8.47, y El Core FFO por acción diluida se espera que sea de $15.38 a $15.62. La guía para el crecimiento de ingresos de propiedades similares se revisó a un 2.70%-3.30%, y el crecimiento de NOI de propiedades similares se incrementó a un 1.80%-2.80%. La compañía también enfatizó su liquidez con $1.1 mil millones disponibles a través de líneas de crédito no utilizadas, equivalentes de efectivo y valores comercializables.
에섹스 재산 신탁(뉴욕 증권 거래소: ESS)이 2024년 2분기 실적을 발표했습니다. 희석 주당 순이익은 2023년 2분기 대비 6.5% 감소하여 $1.45에 달했습니다. 코어 FFO는 희석 주당 4.5% 증가하여 $3.94로, 유리한 NOI 성장으로 인해 예상을 $0.11 초과했습니다. 이 회사는 2023년 2분기 대비 동일한 자산에서 매출이 3.4% 증가하고, NOI가 3.0% 상승했습니다. 연간 복합 요율 성장은 1분기의 2.2%에서 3.4%로 개선되었습니다. 에섹스는 북부 캘리포니아에서 두 개의 부동산을 1억 4천 7백 70만 달러에 인수했습니다.
에섹스는 2024년 전체 연도 목표를 상향 조정했습니다: 희석 주당 순이익은 이제 $8.23-$8.47로 예상되며, 코어 FFO는 $15.38-$15.62로 예상됩니다. 동일 자산 매출 성장에 대한 목표는 2.70%-3.30%로 수정되었으며, 동일 자산 NOI 성장 목표는 1.80%-2.80%로 상향 조정되었습니다. 이 회사는 사용할 수 있는 미사용 신용 시설, 현금 등가물 및 시장성 있는 증권을 통해 11억 달러의 유동성을 강조했습니다.
Essex Property Trust (NYSE: ESS) a publié ses résultats pour le Q2 2024. Le revenu net par action diluée a diminué de 6,5% à 1,45 $ par rapport au Q2 2023. Le Core FFO par action diluée a augmenté de 4,5% à 3,94 $, dépassant les prévisions de 0,11 $ grâce à une croissance favorable du NOI. L'entreprise a réalisé une augmentation de 3,4% des revenus des propriétés similaires et une hausse de 3,0% du NOI par rapport au Q2 2023. La croissance des taux combinés d'une année sur l'autre a progressé à 3,4% contre 2,2% au Q1. Essex a acquis deux propriétés dans le nord de la Californie pour 147,7 millions de dollars.
Essex a relevé ses prévisions pour l'année entière 2024 : Le revenu net par action diluée est désormais prévu entre 8,23 $ et 8,47 $, et Le Core FFO par action diluée est prévu entre 15,38 $ et 15,62 $. Les prévisions de croissance des revenus des même appartements ont été révisées à 2,70%-3,30%, et la croissance du NOI des mêmes appartements a été augmentée à 1,80%-2,80%. L'entreprise a également souligné sa liquidité avec 1,1 milliard de dollars disponibles par le biais de lignes de crédit non utilisées, d'équivalents de liquidité et de titres négociables.
Essex Property Trust (NYSE: ESS) hat seine Quartalszahlen für Q2 2024 veröffentlicht. Der Nettogewinn pro verwässerter Aktie sank um 6,5% auf $1,45 im Vergleich zu Q2 2023. Der Core FFO pro verwässerter Aktie stieg um 4,5% auf $3,94 und übertraf die Prognose um $0,11 aufgrund eines positiven NOI-Wachstums. Das Unternehmen verzeichnete einen Anstieg von 3,4% beim Umsatz aus gleichen Immobilien und einen Anstieg des NOI um 3,0% im Vergleich zu Q2 2023. Das jährliche gemischte Wachstumsraten verbesserten sich von 2,2% im Q1 auf 3,4%. Essex erwarb zwei Immobilien in Nordkalifornien für 147,7 Millionen Dollar.
Essex hat seine Prognose für das gesamte Jahr 2024 angehoben: Der Nettogewinn pro verwässerter Aktie wird jetzt zwischen $8,23 und $8,47 erwartet, und der Core FFO pro verwässerter Aktie wird zwischen $15,38 und $15,62 erwartet. Die Prognose für das Umsatzwachstum aus gleichen Immobilien wurde auf 2,70%-3,30% überarbeitet, und das NOI-Wachstum aus gleichen Immobilien wurde auf 1,80%-2,80% angehoben. Das Unternehmen betonte auch seine Liquidität mit 1,1 Milliarden Dollar, die über nicht in Anspruch genommene Kreditlinien, Zahlungsmitteläquivalente und handelbare Wertpapiere zur Verfügung stehen.
- Core FFO per diluted share increased 4.5% to $3.94
- Same-property revenue grew by 3.4%
- Acquired properties worth $147.7 million
- Raised full-year 2024 guidance for net income and Core FFO per diluted share
- Improved liquidity position with $1.1 billion available
- Net income per diluted share decreased by 6.5% to $1.45
Essex Property Trust's Q2 2024 results demonstrate solid performance and improved outlook for the full year. The company reported Core FFO of
Key highlights include:
- Same-property revenue growth of
3.4% year-over-year, with NOI growth of3.0% - Sequential improvement in same-property revenues (
1.2% ) and NOI (2.5% ) - Blended rate growth of
3.4% , up from2.2% in Q1 - Two acquisitions in Northern California totaling
$147.7 million
The company raised its full-year 2024 guidance, with Core FFO now expected between
Essex's improved performance and outlook suggest a strengthening multifamily market in its core West Coast markets. The company's ability to drive rent growth while maintaining high occupancy (
Essex's Q2 results provide valuable insights into the West Coast multifamily market dynamics. The company's portfolio, spanning Southern California, Northern California and Seattle, shows varying performance across submarkets:
- Southern California led with
4.1% year-over-year revenue growth, particularly strong in San Diego (6.3% ) and Orange County (4.9% ) - Northern California saw more modest growth at
2.9% , with San Mateo County outperforming at4.6% - Seattle Metro achieved
3.3% revenue growth
The sequential improvement in revenues and NOI across all regions suggests a broader market recovery. Notably, Northern California showed the strongest sequential NOI growth at
The company's ability to push rents while maintaining high occupancy levels (
Essex's acquisitions in Northern California, totaling
Overall, Essex's results paint a picture of a gradually improving West Coast rental market, with Southern California leading the recovery and signs of momentum building in the Bay Area and Seattle.
Essex's Q2 results and raised guidance present a compelling case for investors interested in the multifamily REIT sector, particularly those focused on the West Coast markets. Several factors stand out from an investment perspective:
- Operational Efficiency: The company's ability to grow Core FFO by
4.5% year-over-year, outpacing revenue growth, demonstrates effective cost management and operational leverage. - Market Recovery: The improved performance across all regions, especially the sequential growth in Northern California, suggests the West Coast markets are rebounding from pandemic-related challenges.
- Capital Allocation: Essex's strategic acquisitions in high-growth submarkets like Mountain View and San Jose indicate a focus on long-term value creation.
- Balance Sheet Management: The company's refinancing activities, including the repayment of
$400 million in unsecured notes, showcase proactive liability management. - Liquidity Position: With approximately
$1.1 billion in liquidity, Essex maintains financial flexibility for future opportunities or challenges.
The raised guidance for 2024 reflects management's confidence in the company's trajectory. The new Core FFO guidance midpoint of
However, investors should consider potential headwinds, including rising operating expenses and the possibility of interest rate volatility affecting borrowing costs. Additionally, while the West Coast markets are improving, they may face challenges from ongoing affordability issues and potential shifts in migration patterns.
Overall, Essex's Q2 results and outlook position it as an attractive option for investors seeking exposure to the recovering West Coast multifamily market, backed by solid operational execution and a strong balance sheet.
Net Income, Funds from Operations (“FFO”), and Core FFO per diluted share for the quarter ended June 30, 2024 are detailed below.
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Three Months Ended
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Six Months Ended
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% |
% |
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2024 |
2023 |
Change |
2024 |
2023 |
Change |
Per Diluted Share |
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Net Income |
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- |
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Total FFO |
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Core FFO |
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Second Quarter 2024 Highlights:
-
Reported Net Income per diluted share for the second quarter of 2024 of
$1.45 $1.55 -
Grew Core FFO per diluted share by
4.5% compared to the second quarter of 2023, exceeding the midpoint of the Company’s guidance range by$0.11 -
Achieved same-property revenue and net operating income (“NOI”) growth of
3.4% and3.0% , respectively, compared to the second quarter of 2023. On a sequential basis, same-property revenues and NOI improved1.2% and2.5% , respectively. -
Achieved year-over-year blended rate growth of
3.4% for the second quarter of 2024 as compared to2.2% year-over-year blended rate growth achieved in the first quarter of 2024. -
Acquired two apartment home communities in
Northern California at a combined valuation of$147.7 million - Raised full-year 2024 guidance range as detailed in the table below:
Full-Year 2024 Revised Guidance |
Revised Range |
Revised Midpoint |
Change at Midpoint |
Net Income per diluted share |
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Core FFO per diluted share |
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Same-Property Revenues |
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|
+ |
Same-Property Operating Expenses |
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+ |
Same-Property NOI |
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+ |
SAME-PROPERTY OPERATIONS
Same-property operating results exclude any properties that are not comparable for the periods presented. The table below illustrates the percentage change in same-property gross revenues for the quarter ended June 30, 2024 compared to the quarter ended June 30, 2023, and the sequential percentage change for the quarter ended June 30, 2024 compared to the quarter ended March 31, 2024, by submarket for the Company:
Q2 2024 vs.
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Q2 2024 vs.
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% of
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Revenue
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Revenue
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Q2 2024
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Total |
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Total |
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Same-Property Portfolio |
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The table below illustrates the components that drove the change in same-property revenue on a year-over-year basis for the three- and six-month periods ended June 30, 2024 and on a sequential basis for the quarter ended June 30, 2024.
Same-Property Revenue Components |
Q2 2024
|
YTD 2024
|
Q2 2024
|
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Scheduled Rents |
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Delinquencies |
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Cash Concessions |
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Vacancy |
- |
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- |
- |
Other Income |
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2024 Same-Property Revenue Growth |
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Year-Over-Year Change |
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Year-Over-Year Change |
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Q2 2024 compared to Q2 2023 |
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YTD 2024 compared to YTD 2023 |
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Revenues |
Operating
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NOI |
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Revenues |
Operating
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NOI |
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Same-Property Portfolio |
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Sequential Change |
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Q2 2024 compared to Q1 2024 |
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Revenues |
Operating
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NOI |
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- |
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- |
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Same-Property Portfolio |
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- |
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Financial Occupancies |
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Quarter Ended |
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6/30/2024 |
3/31/2024 |
6/30/2023 |
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Same-Property Portfolio |
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INVESTMENT ACTIVITY
Real Estate
In April, the Company elected to accept the third-party sponsor’s common equity interest affiliated with its
In May, the Company acquired ARLO Mountain View, a 164-unit apartment home community located in
Subsequent to quarter end, the Company acquired its joint venture partner’s
Other Investments
Subsequent to quarter end, the Company received cash proceeds of
LIQUIDITY AND BALANCE SHEET
Common Stock
Year-to-date through July 26, 2024, the Company has not issued any shares of common stock through its equity distribution program or repurchased any shares through its stock repurchase plan. As of July 26, 2024, the Company had
Balance Sheet
In May, the Company repaid its
As of July 26, 2024, the Company had approximately
GUIDANCE
For the second quarter of 2024, the Company exceeded the midpoint of the guidance range provided in its first quarter 2024 earnings release for Core FFO by
The following table provides a reconciliation of second quarter 2024 Core FFO per diluted share to the midpoint of the guidance provided in the Company’s first quarter 2024 earnings release.
|
|
Per Diluted Share |
|
Guidance midpoint of Core FFO per diluted share for Q2 2024 |
$ |
3.83 |
|
Same-Property Revenues |
|
0.05 |
|
Non-Same-Property Revenues (One-Time) |
|
0.02 |
|
Consolidated Operating Expenses (Timing Related) |
|
0.02 |
|
FFO from Co-Investments |
|
0.02 |
|
Core FFO per diluted share for Q2 2024 reported |
$ |
3.94 |
The table below provides key updates to the Company’s 2024 full-year assumptions for Net Income, Total FFO, Core FFO per diluted share, and same-property growth. For additional details regarding the Company’s 2024 Core FFO guidance range, please see page S-13 of the accompanying supplemental financial information.
2024 FULL-YEAR AND THIRD QUARTER GUIDANCE |
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Previous
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Previous
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Revised
|
Revised
|
Change at the
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Per Diluted Share |
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Net Income |
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Total FFO |
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Core FFO |
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Q3 2024 Core FFO |
- |
- |
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- |
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Same-Property Growth on a Cash-Basis (1) |
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Revenues |
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+ |
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Operating Expenses |
|
|
|
|
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+ |
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NOI |
|
|
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+ |
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(1) |
The midpoint of the Company’s same-property revenues and NOI on a GAAP basis are |
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CONFERENCE CALL WITH MANAGEMENT
The Company will host an earnings conference call with management to discuss its quarterly results on Wednesday, July 31, 2024 at 10:00 a.m. PT (1:00 p.m. ET), which will be broadcast live via the Internet at www.essex.com, and accessible via phone by dialing toll-free, (877) 407-0784, or toll/international, (201) 689-8560. No passcode is necessary.
A rebroadcast of the live call will be available online for 30 days and digitally for 7 days. To access the replay online, go to www.essex.com and select the second quarter 2024 earnings link. To access the replay, dial (844) 512-2921 using the replay pin number 13747560. If you are unable to access the information via the Company’s website, please contact the Investor Relations Department at investors@essex.com or by calling (650) 655-7800.
CORPORATE PROFILE
Essex Property Trust, Inc., an S&P 500 company, is a fully integrated real estate investment trust (REIT) that acquires, develops, redevelops, and manages multifamily residential properties in selected West Coast markets. Essex currently has ownership interests in 255 apartment communities comprising over 62,000 apartment homes. Additional information about the Company can be found on the Company’s website at www.essex.com.
This press release and accompanying supplemental financial information has been furnished to the Securities and Exchange Commission electronically on Form 8-K and can be accessed from the Company’s website at www.essex.com. If you are unable to obtain the information via the Web, please contact the Investor Relations Department at (650) 655-7800.
FFO RECONCILIATION
FFO, as defined by the National Association of Real Estate Investment Trusts (“NAREIT”), is generally considered by industry analysts as an appropriate measure of performance of an equity REIT. Generally, FFO adjusts the net income of equity REITs for non-cash charges such as depreciation and amortization of rental properties, impairment charges, gains on sales of real estate and extraordinary items. Management considers FFO and FFO which excludes non-core items, which is referred to as “Core FFO,” to be useful supplemental operating performance measures of an equity REIT because, together with net income and cash flows, FFO and Core FFO provide investors with additional bases to evaluate the operating performance and ability of a REIT to incur and service debt and to fund acquisitions and other capital expenditures and to pay dividends. By excluding gains or losses related to sales of depreciated operating properties and land and excluding real estate depreciation (which can vary among owners of identical assets in similar condition based on historical cost accounting and useful life estimates), FFO can help investors compare the operating performance of a real estate company between periods or as compared to different companies. By further adjusting for items that are not considered part of the Company’s core business operations, Core FFO allows investors to compare the core operating performance of the Company to its performance in prior reporting periods and to the operating performance of other real estate companies without the effect of items that by their nature are not comparable from period to period and tend to obscure the Company’s actual operating results. FFO and Core FFO do not represent net income or cash flows from operations as defined by
The following table sets forth the Company’s calculation of diluted FFO and Core FFO for the three and six months ended June 30, 2024 and 2023 (in thousands, except for share and per share amounts):
|
|
Three Months Ended June 30, |
|
Six Months Ended June 30, |
|||||||||||
Funds from Operations attributable to common stockholders and unitholders |
|
2024 |
|
|
2023 |
|
|
2024 |
|
|
2023 |
||||
Net income available to common stockholders |
$ |
92,914 |
|
$ |
99,620 |
|
$ |
365,645 |
|
$ |
253,152 |
|
|||
Adjustments: |
|
|
|
|
|
|
|
|
|||||||
Depreciation and amortization |
|
145,613 |
|
|
136,718 |
|
|
285,346 |
|
|
273,065 |
|
|||
Gains not included in FFO |
|
- |
|
|
- |
|
|
(138,326 |
) |
|
(59,238 |
) |
|||
Casualty loss |
|
- |
|
|
- |
|
|
- |
|
|
433 |
|
|||
Impairment loss from unconsolidated co-investments |
|
- |
|
|
- |
|
|
3,726 |
|
|
- |
|
|||
Depreciation and amortization from unconsolidated co-investments |
|
17,380 |
|
|
17,848 |
|
|
35,850 |
|
|
35,457 |
|
|||
Noncontrolling interest related to Operating Partnership units |
|
3,270 |
|
|
3,506 |
|
|
12,869 |
|
|
8,910 |
|
|||
Depreciation attributable to third party ownership and other |
|
(390 |
) |
|
(365 |
) |
|
(779 |
) |
|
(724 |
) |
|||
Funds from Operations attributable to common stockholders and unitholders |
$ |
258,787 |
|
$ |
257,327 |
|
$ |
564,331 |
|
$ |
511,055 |
|
|||
FFO per share – diluted |
$ |
3.89 |
|
$ |
3.87 |
|
$ |
8.49 |
|
$ |
7.68 |
|
|||
Expensed acquisition and investment related costs |
$ |
- |
|
$ |
5 |
|
$ |
68 |
|
$ |
344 |
|
|||
Tax (benefit) expense on unconsolidated co-investments (1) |
|
(807 |
) |
|
1,733 |
|
|
(758 |
) |
|
833 |
|
|||
Realized and unrealized gains on marketable securities, net |
|
(1,597 |
) |
|
(7,591 |
) |
|
(4,948 |
) |
|
(8,871 |
) |
|||
Provision for credit losses |
|
19 |
|
|
16 |
|
|
66 |
|
|
34 |
|
|||
Equity loss (income) from non-core co-investments (2) |
|
143 |
|
|
(978 |
) |
|
(5,727 |
) |
|
(884 |
) |
|||
Co-investment promote income |
|
- |
|
|
- |
|
|
(1,531 |
) |
|
- |
|
|||
Income from early redemption of preferred equity investments and notes receivable |
|
- |
|
|
(285 |
) |
|
- |
|
|
(285 |
) |
|||
General and administrative and other, net |
|
5,906 |
|
|
561 |
|
|
8,447 |
|
|
827 |
|
|||
Insurance reimbursements, legal settlements, and other, net (3) |
|
(486 |
) |
|
(295 |
) |
|
(43,300 |
) |
|
(8,799 |
) |
|||
Core Funds from Operations attributable to common stockholders and unitholders |
$ |
261,965 |
|
$ |
250,493 |
|
$ |
516,648 |
|
$ |
494,254 |
|
|||
Core FFO per share – diluted |
$ |
3.94 |
|
$ |
3.77 |
|
$ |
7.77 |
|
$ |
7.42 |
|
|||
Weighted average number of shares outstanding diluted (4) |
|
66,486,464 |
|
|
66,444,114 |
|
|
66,477,724 |
|
|
66,584,049 |
|
|||
| (1) | Represents tax related to net unrealized gains or losses on technology co-investments. |
|
| (2) | Represents the Company's share of co-investment income or loss from technology co-investments. |
|
| (3) |
Includes legal settlement gains of |
|
| (4) | Assumes conversion of all outstanding limited partnership units in Essex Portfolio, L.P. (the “Operating Partnership”) into shares of the Company’s common stock and excludes DownREIT limited partnership units. |
NET OPERATING INCOME (“NOI”) AND SAME-PROPERTY NOI RECONCILIATIONS
NOI and Same-Property NOI are considered by management to be important supplemental performance measures to earnings from operations included in the Company’s consolidated statements of income. The presentation of same-property NOI assists with the presentation of the Company’s operations prior to the allocation of depreciation and any corporate-level or financing-related costs. NOI reflects the operating performance of a community and allows for an easy comparison of the operating performance of individual communities or groups of communities. In addition, because prospective buyers of real estate have different financing and overhead structures, with varying marginal impacts to overhead by acquiring real estate, NOI is considered by many in the real estate industry to be a useful measure for determining the value of a real estate asset or group of assets. The Company defines same-property NOI as same-property revenues less same-property operating expenses, including property taxes. Please see the reconciliation of earnings from operations to NOI and same-property NOI, which in the table below is the NOI for stabilized properties consolidated by the Company for the periods presented (dollars in thousands):
|
|
Three Months Ended June 30, |
|
Six Months Ended June 30, |
|||||||||||
|
|
2024 |
|
|
2023 |
|
|
2024 |
|
|
2023 |
||||
Earnings from operations |
$ |
137,450 |
|
$ |
134,832 |
|
$ |
269,809 |
|
$ |
322,217 |
|
|||
Adjustments: |
|
|
|
|
|
|
|
|
|||||||
Corporate-level property management expenses |
|
12,123 |
|
|
11,451 |
|
|
23,854 |
|
|
22,883 |
|
|||
Depreciation and amortization |
|
145,613 |
|
|
136,718 |
|
|
285,346 |
|
|
273,065 |
|
|||
Management and other fees from affiliates |
|
(2,573 |
) |
|
(2,778 |
) |
|
(5,286 |
) |
|
(5,543 |
) |
|||
General and administrative |
|
21,136 |
|
|
13,813 |
|
|
38,307 |
|
|
29,124 |
|
|||
Expensed acquisition and investment related costs |
|
- |
|
|
5 |
|
|
68 |
|
|
344 |
|
|||
Casualty loss |
|
- |
|
|
- |
|
|
- |
|
|
433 |
|
|||
Gain on sale of real estate and land |
|
- |
|
|
- |
|
|
- |
|
|
(59,238 |
) |
|||
NOI |
|
313,749 |
|
|
294,041 |
|
|
612,098 |
|
|
583,285 |
|
|||
Less: Non-same property NOI |
|
(20,325 |
) |
|
(9,170 |
) |
|
(32,315 |
) |
|
(20,436 |
) |
|||
Same-Property NOI |
$ |
293,424 |
|
$ |
284,871 |
|
$ |
579,783 |
|
$ |
562,849 |
|
|||
SAFE HARBOR STATEMENT UNDER THE PRIVATE LITIGATION REFORM ACT OF 1995:
This press release includes “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements are statements which are not historical facts, including statements regarding the Company's expectations, estimates, assumptions, hopes, intentions, beliefs and strategies regarding the future. Words such as “expects,” “assumes,” “anticipates,” “may,” “will,” “intends,” “plans,” “projects,” “believes,” “seeks,” “future,” “estimates,” and variations of such words and similar expressions are intended to identify such forward-looking statements. Such forward-looking statements include, among other things, statements regarding the Company’s third quarter and full-year 2024 guidance (including net income, Total FFO and Core FFO, same-property growth and related assumptions) and anticipated yield on certain investments. While the Company's management believes the assumptions underlying its forward-looking statements are reasonable, such forward-looking statements involve known and unknown risks, uncertainties and other factors, many of which are beyond the Company’s control, which could cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. The Company cannot assure the future results or outcome of the matters described in these statements; rather, these statements merely reflect the Company’s current expectations of the approximate outcomes of the matters discussed.
Factors that might cause the Company’s actual results, performance or achievements to differ materially from those expressed or implied by these forward-looking statements include, but are not limited to, the following: assumptions related to our third quarter and full-year 2024 guidance; occupancy rates and rental demand may be adversely affected by competition and local economic and market conditions; there may be increased interest rates, inflation, escalated operating costs and possible recessionary impacts; geopolitical tensions and regional conflicts, and the related impacts on macroeconomic conditions, including, among other things, interest rates and inflation; the terms of any refinancing may not be as favorable as the terms of existing indebtedness; the Company’s inability to maintain our investment grade credit rating with the rating agencies; the Company may be unsuccessful in the management of its relationships with its co-investment partners; the Company may fail to achieve its business objectives; time of actual completion and/or stabilization of development and redevelopment projects; estimates of future income from an acquired property may prove to be inaccurate; future cash flows may be inadequate to meet operating requirements and/or may be insufficient to provide for dividend payments in accordance with REIT requirements; changes in laws or regulations; unexpected difficulties in leasing of future development projects; volatility in financial and securities markets; the Company’s failure to successfully operate acquired properties; unforeseen consequences from cyber-intrusion; government approvals, actions and initiatives, including the need for compliance with environmental requirements; and those further risks, special considerations, and other factors referred to in the Company’s annual report on Form 10-K for the year ended December 31, 2023, quarterly reports on Form 10-Q, and those risk factors and special considerations set forth in the Company's other filings with the SEC which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. All forward-looking statements are made as of the date hereof, the Company assumes no obligation to update or supplement this information for any reason, and therefore, they may not represent the Company’s estimates and assumptions after the date of this press release.
DEFINITIONS AND RECONCILIATIONS
Non-GAAP financial measures and certain other capitalized terms, as used in this earnings release, are defined and further explained on pages S-17.1 through S-17.4, "Reconciliations of Non-GAAP Financial Measures and Other Terms," of the accompanying supplemental financial information. The supplemental financial information is available on the Company's website at www.essex.com.
View source version on businesswire.com: https://www.businesswire.com/news/home/20240730145822/en/
Loren Rainey
Director, Investor Relations
(650) 655-7800
lrainey@essex.com
Source: Essex Property Trust, Inc.
FAQ
What were Essex's Q2 2024 earnings results?
Did Essex raise its full-year 2024 guidance?
How did same-property revenue and NOI perform in Q2 2024?
What acquisitions did Essex make in Q2 2024?
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