| Factor | Score | Distribution | Value | Avg | Rank |
|---|---|---|---|---|---|
Valuation | 24 | 42.4x | 17.8x | Bottom tier | |
Growth | 31 | 4.7% | 7.1% | Bottom tier | |
Quality | 78 | 5.3% | 4.5% | Top tier | |
Safety | 47 | 5.1x | 2.6x | Around median | |
Capital Return | 66 | 3.76% | 2.12% | Top tier | |
Momentum | 67 | 4.8% | 2.9% | Top tier | |
Sentiment | 86 | 8 | 3 | Top tier |
Estimates — analyst targets and a simplified DCF, not investment advice.
Ten ratios that matter, each compared against its sector median and average — so you can see whether a number is rich or cheap relative to peers in the same sector.
Essex Property Trust focuses on owning and operating multifamily residential communities in West Coast markets, generating its core revenue from rents, occupancy, and property-related income. It also deploys capital selectively into acquisitions, developments, preferred equity investments, and joint ventures, evaluating opportunities based on their impact on growth, net asset value, and funds from operations per share. The portfolio is geographically concentrated; Southern California represents 40% of its exposure, while Southern California and Seattle together represent 60%, making differences in rental trends across regions a critical factor in results.
In Q2 of fiscal 2026, revenue reached $489.0 million, compared with $484.8 million in Q1 of fiscal 2026, while gross profit was $345.7 million, representing a calculated gross margin of approximately 70.7%. Net income was $62.5 million, or approximately 12.8% of revenue, compared with $106.2 million in the previous quarter, while EDGAR data showed earnings per share of $0.97. On the core funds from operations measure used to assess portfolio performance, the company generated $4.08 per share, exceeding the midpoint of its guidance range by $0.10.
The operating mix varied clearly in Q2 of fiscal 2026: Northern California led performance with 6.5% blended rent growth and strong occupancy, Seattle recorded growth of 2.6%, including 3.2% in East Side versus 1% in the urban core, while Southern California achieved growth of 1.4% with occupancy above 95%. Within Southern California, Orange County led performance and San Diego began to improve after absorbing a substantial portion of supply, while Los Angeles remained the weakest area, with economic occupancy between 93% and 94%.
Analyst consensus on ESS is neutral, with an average target of $305.91 and a wide range between $286 and $352. The average target is only approximately 0.8% above the 52-week range high of $303.35, while the range low is $238.46; therefore, the targets reflect a combination of optimism about the higher fiscal 2026 guidance and caution regarding slowing rents and uneven regional performance.
Figures in the text are as of 2026-08-29; the live price is shown at the top of the page.
Core funds from operations in Q2 of fiscal 2026 exceeded the midpoint of the guidance range by $0.10 per share, driven primarily by improved operations. The company raised the midpoint of its same-property net operating income growth forecast by 70 basis points to 2.8% and increased the midpoint of its annual core funds from operations guidance by $0.20. Of the annual increase, $0.12 came from same-property performance, while Northern California acquisition outperformance contributed to the remainder. The published full-year outlook set a range of $16.030 to $16.250 per share.
Northern California achieved blended rent growth of 6.5% in Q2 of fiscal 2026 with strong occupancy. Management attributed this to limited unit deliveries, technology-sector investment in the Bay Area, and an influx of talent and entrepreneurs into the region. The company estimated the loss-to-lease at approximately 6% and said leasing momentum had not yet reached its seasonal peak as of July 30, 2026. By comparison, Seattle recorded growth of 2.6% and Southern California recorded growth of 1.4%.
Automated analysis for informational purposes only — not investment advice.
Blended rent growth in Seattle turned positive in March 2026 at 1.4%, then increased to 2.8% in June 2026. Growth in Q2 of fiscal 2026 was approximately 2.6%, with stronger performance in East Side at 3.2% compared with 1% in the urban core. Management sees future support from lower supply and announced office expansions by prominent companies, but explained that hiring resulting from those expansions will take time. Market rents also reached their seasonal peak in early July 2026 and began slowing afterward.
The clearest weakness is Southern California, which represents 40% of the company's exposure and recorded blended rent growth of 1.4% in Q2 of fiscal 2026. Regional occupancy remained above 95%, but Los Angeles lagged with economic occupancy ranging between 93% and 94%. Orange County led the region, while San Diego began improving after absorbing a substantial portion of supply. Management expects slow economic and job growth to keep the region's performance moderate during the second half of fiscal 2026.
Net debt to earnings before interest, taxes, depreciation, and amortization was 5.4 times on July 30, 2026. Available liquidity exceeded $1 billion, with limited debt maturities during the twelve months following that date and access to multiple funding sources. Management said these resources were sufficient to fund obligations and evaluate acquisitions, developments, and other investments. In the preferred equity book, the company indicated that an operating book value of approximately $100 million was an appropriate assumption unless it completed additional investments.
Analyst consensus on ESS is neutral, with an average price target of $305.91. Targets range from $286 to $352, a $66 difference between the endpoints, indicating clear variation in analyst estimates. The 52-week range extends from $238.46 to $303.35, and the average target is slightly above its high. This valuation reflects the higher fiscal 2026 guidance but balances it against expected rent deceleration and uneven results across Northern California, Seattle, and Southern California.
