Essex raises 2026 Core FFO outlook to $16.10-$16.22 a share as same-property revenue rises 3.0%

Essex Property Trust (NYSE: ESS) raised its 2026 Core FFO guidance to $16.10-$16.22 per diluted share after third-quarter Core FFO rose 0.8% from a year earlier, the company said in its third-quarter earnings release on Tuesday.

What happened

The San Mateo, California, apartment landlord reported Core FFO of $4.00 per diluted share for the three months ended September 30, compared with $3.97 a year earlier. Core FFO is funds from operations adjusted for items the company does not consider part of its core operations. Total FFO was $3.98, down 1.2% from $4.03.

Net income was $1.52 per diluted share, compared with $2.56 in the third quarter of 2025. Essex said the decrease was primarily driven by gains on sale of real estate and land recognized in the 2025 quarter.

Same-property revenue grew 3.0% and net operating income 3.1% from the third quarter of 2025. Same-property revenue rose 1.0% from the second quarter. By region, revenue growth was 5.4% in Northern California, 1.5% in Southern California and 1.3% in the Seattle metro area. Same-property financial occupancy was 96.3% at September 30, unchanged from June 30 and up from 96.0% a year earlier.

Essex sold a 76-unit community in Seattle for $30.0 million and, through a joint venture in which it owned 58%, a 268-unit community in San Jose for $122.3 million. In September it took out a $275.0 million unsecured term loan priced at SOFR plus 0.80%.

Guidance

The company's full-year Core FFO range moved to $16.10-$16.22 from $16.03-$16.25, raising the midpoint by $0.02 to $16.16. It guided fourth-quarter Core FFO to $3.95-$4.07 per diluted share. Same-property revenue growth guidance is now 2.8% to 3.0%, from 2.5% to 3.1%, and same-property net operating income growth 2.8% to 3.2%.

What to watch

Management was due to discuss the results on a conference call on Wednesday, October 28, at 9 a.m. PT (12 p.m. ET), according to the release.