Essex Raises 2026 Outlook as Core FFO Reaches $4.00 per Share

Key Facts

Essex Property Trust reported third-quarter 2026 results, posting Core FFO of $4.00 per diluted share, up 0.8% year over year and $0.01 above the midpoint of its quarterly guidance range. The company attributed the performance to same-property revenue growth and said strength extended across all regions, with continued strong performance in Northern California. The company raised its annual outlook, putting the midpoint of its 2026 same-property revenue growth range at 2.9%. It also raised the midpoint of its same-property net operating income growth outlook to 3.0%. The new guidance follows an earlier increase to the full-year outlook after second-quarter results, according to an EL7 report published in August.

Earnings measures diverged in the quarter: total FFO was $3.98 per diluted share, down 1.2% from $4.03 in the year-earlier period. Reported net income was $1.52 per diluted share, compared with $2.56 a year earlier. The company said the decline in net income was primarily due to property and land sale gains recorded in the third quarter of 2025. The divergence highlights the difference between total FFO and Core FFO, as the core measure rose while total FFO fell year over year. Property operations therefore showed stronger performance than reported net income compared with the prior year.

At the operating level, same-property revenue rose 3.0% and same-property net operating income increased 3.1% year over year in the third quarter. Same-property revenue also improved 1.0% from the previous quarter, the company said. Essex attributed the sequential improvement to growth across all regions and continued strength in Northern California. These figures put revenue growth at the center of the company's explanation for the increase in Core FFO. For the full-year outlook, the company set a same-property revenue growth range of 2.8% to 3.0%, with a net operating income growth range of 2.8% to 3.2%.

Financial and operating moves included the sale of three apartment communities during the quarter, with a contract value attributable to the company's share of $111.9 million. Essex also obtained a $275 million unsecured term loan at a rate of SOFR plus 0.80 percentage points. These transactions add detail to the quarter's picture alongside revenue and operating earnings growth, without changing the distinction between Core FFO and total FFO performance. In the market, EL7 data showed the company's shares, traded under the ticker ESS, closed at $275.3 on October 26, 2026. The data used did not report any other share price movement that day.

The company had announced a conference call to discuss its third-quarter results for Wednesday, October 28, 2026, at 9 a.m. Pacific time. The call gives management an opportunity to present details of the results and the new annual guidance. The reported operating figures center on same-property revenue and net operating income growth, alongside their contribution to Core FFO. The call also follows the company's increase to its full-year outlook in light of second-quarter results, according to an earlier EL7 report. The revised 2026 guidance remains a key focus for the management discussion.