Track market-moving stories before they get noisy

Key Takeaways Essex Property is expected to post higher Q2 revenues, while core FFO per share remains flat year over year.ESS may benefit from high occupancy, peak leasing season and limited new apartment supply in Q2.ESS projects Q2 core FFO of $3.92-$4.04 per share and sees Northern California leading growth. Essex Property Trust, Inc. (ESS - Free Report) is scheduled to report its second-quarter 2026 results on July 29, after market close. The company’s quarterly results are likely to reflect year-over-year growth in revenues, while core funds from operations (FFO) per share might remain unchanged.

In the last reported quarter, this San Mateo, CA-based residential real estate investment trust (REIT) delivered a surprise of 2.53% in terms of core FFO per share. Results reflected favorable growth in same-property net operating income (NOI) aided by solid property-level momentum.

Over the trailing four quarters, Essex Property’s earnings surpassed the Zacks Consensus Estimate on three occasions and missed on the other, the average surprise being 0.82%. The graph below depicts the surprise history of the company:

Let’s see how things have shaped up before this announcement.

US Apartment Market in Q2The U.S. multifamily market entered the second half of 2026 with a clearer recovery taking shape, as strong renter demand and a rapidly shrinking supply pipeline began translating into lower vacancy and improving rent growth.

According to a Cushman & Wakefield report, net absorption reached roughly 124,600 units, up from 83,500 units in the first quarter and 8% above the prior year, making it the fifth-strongest quarter in nearly 25 years. The supply picture also became more favorable. Approximately 88,000 units were delivered during the quarter, down 27% year over year. Around 475,000 units remained under construction at quarter-end, equal to just 3.5% of existing inventory.

Improving demand and slowing supply pushed the national vacancy rate down 35 basis points quarter over quarter to 8.9%, its first move below 9% since 2024. On a trailing four-quarter basis, absorption of approximately 362,000 units exceeded deliveries of about 358,000 units for the first time since early 2022, indicating vacancy is likely to have passed its cyclical peak. The recovery was particularly pronounced in previously overbuilt markets: Austin; Charleston, SC; Savannah, GA; Huntsville, AL; Salt Lake City, UT, and Colorado Springs recorded some of the largest quarterly vacancy declines.

Rent growth remains modest but is beginning to improve. National asking rents reached approximately $1,945 per month, up 1.5% year over year, compared with 1.1% growth in the first quarter. The Bay Area led the recovery, with San Francisco rents rising 13%, San Jose 7% and the East Bay 4.8%. Norfolk, VA; Toledo; Reno, NV, and Boise, ID, also posted strong gains.

High-supply markets remained softer, with rents still declining in Austin and Sarasota, FL, although the pace of those declines moderated as excess supply was absorbed. Overall, the market appears to be shifting from stabilization into an occupancy-led recovery, with broader rent growth likely as the construction pipeline continues to shrink.

Factors to Consider Ahead of ESS' Upcoming ResultsEssex’s Q2 2026 results are likely to benefit from peak-season leasing, high occupancy and limited new supply. The company entered the quarter with April occupancy at 96.4% and blended lease growth above 3%.

Northern California should remain the main growth driver, supported by tech activity, AI expansion and improving migration. Seattle also showed better momentum as lease rates turned positive in March and April. Southern California is likely to remain mixed.

Overall, the second quarter should show improving rent growth and stable occupancy, partly offset by higher expenses from delayed projects.

Projections for ESS' Q2 ResultsThe Zacks Consensus Estimate of $486.85 million for second-quarter revenues calls for a 3.62% increase year over year. The consensus estimate for same-property revenues is pegged at $445.99 million, up from $410.95 million in the year-ago period. The consensus mark for same-property financial occupancies is currently pegged at 96.20%, on par with the prior quarter.

For second-quarter 2026, Essex Property projected core FFO per share in the range of $3.92-$4.04 per share, with a midpoint of $3.98.

Before the second-quarter earnings release, Essex Property’s activities were inadequate to gain analysts’ confidence. The Zacks Consensus Estimate for the quarterly core FFO per share was revised southward in the past week to $4.03. It indicates no change year over year.

What Our Quantitative Model Predicts for ESS StockOur proven model predicts a surprise in terms of core FFO per share for Essex Property this season. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an FFO beat, which is the case here. 

Essex Property currently carries a Zacks Rank of 3 and has an Earnings ESP of +0.54%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Other Stocks That Warrant a LookHere are two other stocks from the broader REIT sector — Digital Realty Trust (DLR - Free Report) and Cousins Properties (CUZ - Free Report) — you may want to consider, as our model shows that these also have the right combination of elements to report an FFO beat this quarter.

Digital Realty is slated to report quarterly numbers on July 23. DLR has an Earnings ESP of +2.30% and a Zacks Rank of 3 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

Cousins is slated to report quarterly numbers on July 30. CUZ has an Earnings ESP of +0.45% and a Zacks Rank of 3 at present.

Note: Anything related to earnings presented in this write-up represents funds from operations (FFO), a widely used metric to gauge the performance of REITs.

WILSONVILLE, Ore.--(BUSINESS WIRE)--ESS and Juniper Energy Sign Agreement for 500 MWh+ of Sodium-Ion Energy Storage Deployments.

ESS benefits from strong West Coast rental demand, high occupancy and a solid balance sheet, though Seattle weakness and debt remain risks.

-

SAN MATEO, Calif.--(BUSINESS WIRE)--Essex Property Trust, Inc. (NYSE:ESS) published its 2025 Sustainability and Impact Report today. The report highlights the Company’s measurable progress towards its sustainability objectives, details actions taken to reduce environmental impacts across its operations, and reinforces its commitment to creating long-term value for stakeholders.

“I’m pleased with the continued progress of our sustainability priorities and strengthening the positive impact we have on our communities. These efforts reflect our commitment to responsible growth, environmental stewardship, and creating long-term value for our shareholders,” said Angela L. Kleiman, Essex’s President and CEO.

Notable Report Highlights Include:

Achieved a GRESB score of 87 in 2025, earning a four-star designation and improving one point from the prior year. Advanced our electrification efforts by completing a water heater retrofit at a property, replacing gas water heaters with all-electric units. Named to Newsweek’s List of Most Responsible Companies for a sixth consecutive year. Recognized by U.S. News and World Report as a 2025-2026 Best Company to Work For. Featured in TIME’s World’s Best Companies in 2025. Additional details on progress toward achievement of goals and initiatives can be found in the Company’s 2025 Sustainability and Impact Report which can be accessed on the Investors section of the Company’s website at www.essex.com under the Sustainability section.

About Essex Property Trust, Inc.

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 259 apartment communities comprising over 63,000 apartment homes with an additional property in active development. Additional information about the Company can be found on the Company’s website at www.essex.com.

More News From Essex Property Trust, Inc.

Back to Newsroom

Company Aligns Resources to Support Expanded Focus on AI Infrastructure and Data Center Markets

WILSONVILLE, Ore.--(BUSINESS WIRE)--ESS Tech, Inc. (NYSE: GWH) (“ESS” or the “company”), a leading provider of non-lithium energy storage solutions, today announced strong early customer engagement for its planned U.S.-made sodium-ion battery energy storage system (BESS) offering, focused on short- and medium-duration applications that have historically been served by lithium-ion systems.

Since announcing its letter of intent with Alsym Energy seven weeks ago, ESS has generated significant customer interest for sodium-ion solutions across data centers, critical infrastructure, and utility markets, exceeding demand expectations with limited outbound marketing. The company has now developed early-stage opportunities approaching $1 billion for its sodium-ion solutions and is accelerating development of its sodium-ion BESS platform to meet growing near-term demand for safer, domestically sourced energy storage solutions.

"The demand we're seeing for sodium-ion is unlike anything in our company's history," said Drew Buckley, Chief Executive Officer of ESS. "Energy demand is changing faster than the market can respond, and it's clear the solutions of the past won't fill the gap. We're moving decisively to meet that need, accelerating our path towards near-term revenue while establishing the foundation to deliver at the scale and speed the market needs."

Across the power sector, including hyperscalers and fast-growing data centers, customers are racing to secure storage that is safe, fast to deploy, and free of supply chain risk. They need systems that avoid the fire and insurance exposure of lithium-ion, meet aggressive delivery timelines, and eliminate Foreign Entity of Concern exposure. Sodium-ion is uniquely suited to fill that gap: it virtually eliminates thermal runaway risk and uses abundant, domestically available materials rather than constrained lithium supply chains.

The company will continue development of its iron flow battery technology for long-duration applications while streamlining its Wilsonville operations, reducing expenses and cash burn, to reallocate capital toward the sodium-ion and related solutions with greater near-term revenue potential.

ESS soon plans to announce sodium-ion container, rack, and hardware solutions, as well as digital software offerings to optimize battery and system health, to support the customer opportunities.

"This transition enables ESS to pursue attractive market opportunities while maintaining our commitment to long-term innovation," added Buckley. " We believe ESS is well-positioned to create value for customers and shareholders by focusing our organization on high-growth markets with a differentiated technology, leveraging our proven execution capabilities, and continuing to deliver American-made energy storage solutions."

About ESS Tech, Inc.

ESS (NYSE: GWH) is the leading provider of non-lithium energy storage solutions. ESS was established in 2011 with a mission to accelerate decarbonization safely and sustainably through longer lasting energy storage. Using easy-to-source materials ESS solutions enable energy security, reliability and resilience. We build flexible storage solutions that allow our customers to meet increasing energy demand without power disruptions and maximize the value potential of excess energy. For more information visit www.essinc.com.

Forward-Looking Statements

This communication contains forward-looking statements (including within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, and Section 27A of the Securities Act of 1933, as amended) concerning the company and other matters that involve substantial risks and uncertainties. These statements may discuss the management team’s goals, beliefs, hopes, intentions and expectations as to future plans, trends, events, results of operations and financial condition, or otherwise, based on current beliefs of the management of the company, as well as assumptions made by, and information currently available to, the company’s management. These forward-looking statements can be identified by the use of forward-looking terminology, including the words “anticipate,” “believe,” “continue,” “could,” “estimate,” “expect,” “intends,” “may,” “might,” “plan,” “possible,” “potential,” “predict,” “project,” “should,” “will,” “would,” or, in each case, their negative or other variations or comparable terminology may identify forward-looking statements, but the absence of these words does not mean that a statement is not forward-looking. These forward-looking statements, which are subject to risks, uncertainties and assumptions about us, may include our anticipated growth strategies and anticipated trends in our business. Examples of forward-looking statements include, among others, ESS’ plans for its business, ESS’ potential opportunities that approach $1 billion in sodium-ion opportunities, the demand for non-lithium battery solutions, the timeline for ESS’ development of sodium-ion BESS, power demands and energy storage, ESS’ ability to generate near-term revenue and reduce its expenses, statements by ESS’ CEO, and ESS’ ability to grow and our ability to meet the growing demand for energy storage. These forward-looking statements are based on ESS’ current expectations and beliefs concerning future developments and their potential effects on ESS. Many factors could cause actual future events to differ materially from the forward-looking statements in this communication. There can be no assurance that the future developments affecting ESS will be those that we have anticipated. These forward-looking statements involve a number of risks, uncertainties (some of which are beyond ESS control) or other assumptions that may cause actual results or performance to be materially different from those expressed or implied by these forward-looking statements, which include, but are not limited to, the demand for our sodium-ion BESS not developing as anticipated; our strategy to allocate resources toward sodium-ion BESS not achieving the anticipated benefits and adversely affecting the development of our iron flow battery technology; our ability to generate revenue, including in the near-term; our cash burn and cash runway; our ability to realize and capitalize on sodium-ion opportunities; delays in the development of our sodium-ion BESS; our ability to expand our portfolio; our ability to execute and meet timelines related to Project New Horizon; our products being in the early stage of commercialization and aspects of our technology not having been fully field tested; our inability to develop our business and effectively commercialize our energy storage products; our dependence on third-party suppliers; our ability to secure or maintain long-term supply relationships with critical suppliers; delays, disruptions or quality control problems in our manufacturing operations; our ability to adequately control our costs, effectively scale our operations and achieve our cost reduction strategy; our reliance on complex machinery; our ability to increase our production capacity; product recalls, defects or performance problems with our products; required maintenance being performed incorrectly or maintenance requirements exceeding our current expectations; our history of losses; our ability to continue as a “going concern”; our ability to secure binding orders; failure to deliver the benefits offered by our technology; inability to achieve market acceptance of our products; our ability to sell effectively to large customers; failure to accurately estimate future supply and demand for our products and services; failure to manage our growth effectively; failure to meet the obligations under our sales contracts and service agreements; our ability to complete on schedule and within budget; loss of a member of our senior management or other key personnel; changes to our leadership team; expansions into new markets, product lines or services; our warranty obligations; failure to identify or complete commercial or financial transactions; changes in the global trade environment; our projects relationships with related parties; regulatory challenges; our ability to protect our intellectual property; and our ability to raise capital in the near future; general economic and market conditions as well as geopolitical developments and other risks and uncertainties described more fully in Exhibit 99.2 of the Current Report on Form 8-K filed by the Company on June 23, 2026 and the Company's other filings with the U.S. Securities and Exchange Commission. Except as required by law, ESS is not undertaking any obligation to update or revise any forward-looking statements whether as a result of new information, future events or otherwise.

More News From ESS, Inc.

SAN MATEO, Calif.--(BUSINESS WIRE)--Essex Property Trust, Inc. (NYSE: ESS) (the “Company”) announced today its first quarter 2026 earnings results and related business activities.

Net Income, Funds from Operations (“FFO”), and Core FFO per diluted share for the three-month period ended March 31, 2026 are detailed below.

Three Months Ended

March 31,

%

2026

2025

Change

Per Diluted Share

Net Income

$1.65

$3.16

-47.8%

Total FFO

$4.17

$3.97

5.0%

Core FFO

$4.06

$3.97

2.3%

Recent Highlights:

Reported Net Income per diluted share for the first quarter of 2026 of $1.65, compared to $3.16 in the first quarter of 2025. The decrease is mainly attributable to gain on sale of real estate and land recognized in the first quarter of 2025. Grew Core FFO per diluted share by 2.3% compared to the first quarter of 2025, exceeding the midpoint of the Company’s guidance range by $0.11. The outperformance was primarily driven by favorable same-property net operating income (“NOI”). Achieved same-property revenue and NOI growth of 2.9% and 4.1%, respectively, compared to the first quarter of 2025. On a sequential basis, same-property revenue and NOI improved 0.7% and 1.3%, respectively. Repurchased $61.9 million of common stock year-to-date, including commissions, at an average price per share of $243.76. Increased the dividend by 0.8% to an annual distribution of $10.36 per common share, the Company’s 32nd consecutive annual increase. Reaffirmed the full-year guidance ranges for Core FFO per diluted share, same-property revenue, expenses, and NOI. As of March 31, 2026, the Company’s immediately available liquidity was over $1.7 billion. 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 revenue on a year-over-year and sequential basis for the three-month period ended March 31, 2026:

Revenue Change

Q1 2026

vs. Q1 2025

Q1 2026

vs. Q4 2025

% of Total Q1
2026 Revenue

Southern California

Los Angeles County

1.7%

-0.2%

17.0%

Orange County

2.9%

0.0%

10.1%

San Diego County

2.6%

0.8%

9.9%

Ventura County

1.9%

0.2%

4.7%

Total Southern California

2.2%

0.1%

41.7%

Northern California

Santa Clara County

4.6%

1.2%

20.8%

Alameda County

3.0%

0.6%

7.0%

San Mateo County

4.9%

1.4%

4.5%

Contra Costa County

1.5%

1.2%

5.1%

San Francisco

4.3%

4.2%

3.0%

Total Northern California

3.9%

1.4%

40.4%

Seattle Metro

2.3%

0.5%

17.9%

Same-Property Portfolio

2.9%

0.7%

100.0%

  The table below illustrates the components that drove the change in same-property revenue on a year-over-year and sequential basis for the three-month period ended March 31, 2026:

Same-Property Revenue Components

Q1 2026

vs. Q1 2025

Q1 2026

vs. Q4 2025

Scheduled Rents

2.2%

0.3%

Delinquency

0.1%

0.0%

Cash Concessions

-0.1%

0.2%

Vacancy

0.2%

0.2%

Other Income

0.5%

0.0%

Q1 2026 Same-Property Revenue Growth

2.9%

0.7%

  Year-Over-Year Change

Q1 2026 compared to Q1 2025

Revenue

Operating

Expenses

NOI

Southern California

2.2%

1.9%

2.3%

Northern California

3.9%

0.2%

5.6%

Seattle Metro

2.3%

-3.4%

4.9%

Same-Property Portfolio

2.9%

0.2%

4.1%

Sequential Change

Q1 2026 compared to Q4 2025

Revenue

Operating

Expenses

NOI

Southern California

0.1%

-1.8%

0.9%

Northern California

1.4%

0.1%

1.9%

Seattle Metro

0.5%

-0.8%

1.0%

Same-Property Portfolio

0.7%

-0.9%

1.3%

  Financial Occupancies

Quarter Ended

3/31/2026

12/31/2025

3/31/2025

Southern California

96.1%

96.4%

95.8%

Northern California

96.9%

96.4%

96.7%

Seattle Metro

96.6%

96.1%

96.2%

Same-Property Portfolio

96.5%

96.4%

96.3%

  BALANCE SHEET AND LIQUIDITY

Common Stock and Liquidity

In the first quarter of 2026, the Company repurchased 205,740 shares of its common stock through the Company’s stock repurchase plan, totaling $50.2 million, including commissions, at an average price per share of $244.06.

Subsequent to quarter end, the Company repurchased 48,261 shares of its common stock through the Company’s stock repurchase plan, totaling $11.7 million, including commissions, at an average price per share of $242.47. Year-to-date, the Company has repurchased $61.9 million of its common stock, including commissions, at an average price per share of $243.76. As of April 27, 2026, the Company has $240.8 million of purchase authority remaining under its stock repurchase plan.

As of March 31, 2026, the Company had over $1.7 billion in liquidity via undrawn capacity on its unsecured credit facilities, cash and cash equivalents, and marketable securities.

GUIDANCE

For the first quarter of 2026, the Company exceeded the midpoint of the guidance range provided in its fourth quarter 2025 earnings release for Core FFO by $0.11 per diluted share, of which $0.08 is attributable to same-property NOI.

The following table provides a reconciliation of first quarter 2026 Core FFO per diluted share to the midpoint of the guidance provided in the Company’s fourth quarter 2025 earnings release.

Per Diluted

Share

Guidance midpoint of Core FFO per diluted share for Q1 2026

$

3.95

NOI from Consolidated Communities

0.09

FFO from Co-Investments

0.02

Core FFO per diluted share for Q1 2026 reported

$

4.06

  2026 FULL-YEAR AND SECOND QUARTER GUIDANCE

  Per Diluted Share (1)

Previous

Range

Current

Range

Current

Midpoint

Change at

Midpoint

Net Income

$5.55 - $6.05

$5.62 - $6.12

$5.87

+$0.07

Total FFO

$15.54 - $16.04

$15.71 - $16.21

$15.96

+$0.17

Core FFO

$15.69 - $16.19

$15.69 - $16.19

$15.94

-

Q2 2026 Core FFO

N/A

$3.92 - $4.04

$3.98

N/A

Same-Property Portfolio Growth (2)

Revenues

1.70% to 3.10%

1.70% to 3.10%

2.40%

-

Operating Expenses

2.50% to 3.50%

2.50% to 3.50%

3.00%

-

Net Operating Income

0.80% to 3.40%

0.80% to 3.40%

2.10%

-

CONFERENCE CALL WITH MANAGEMENT

The Company will host an earnings conference call with management to discuss its quarterly results on Wednesday, April 29, 2026 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 first quarter 2026 earnings link. To access the replay, dial (844) 512-2921 using the replay pin number 13759660. If you are unable to access the information via the Company’s website, please contact the Investor Relations Department at [email protected] or calling (650) 655-7800.

UPCOMING EVENTS

The Company is scheduled to participate in the National Association of Real Estate Investment Trusts (“Nareit”) REITweek in New York being held June 1-4, 2026. The Company’s President and Chief Executive Officer, Angela L. Kleiman, will present at the conference on June 3, 2026 at 3:30 p.m. ET. The presentation will be webcast and can be accessed on the Investors section of the Company’s website at www.essex.com. A copy of any materials provided by the Company at the conference will also be made available on the Investors section of the Company’s website.

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 259 apartment communities comprising over 63,000 apartment homes with an additional property in active development. 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 U.S. generally accepted accounting principles (“GAAP”) and are not intended to indicate whether cash flows will be sufficient to fund cash needs. These measures should not be considered as alternatives to net income as an indicator of the REIT's operating performance or to cash flows as a measure of liquidity. FFO and Core FFO do not measure whether cash flow is sufficient to fund all cash needs including principal amortization, capital improvements and distributions to stockholders. FFO and Core FFO also do not represent cash flows generated from operating, investing or financing activities as defined under GAAP. Management has consistently applied the Nareit definition of FFO to all periods presented. However, there is judgment involved and other REITs’ calculation of FFO may vary from the Nareit definition for this measure, and thus their disclosures of FFO may not be comparable to the Company’s calculation.

The following table sets forth the Company’s calculation of FFO and Core FFO per diluted share for the three-month periods ended March 31, 2026 and 2025 (dollars in thousands, except for share and per share amounts):

Three Months Ended

March 31,

2026

2025

Net income available to common stockholders

$

106,186

$

203,110

Adjustments:

Depreciation and amortization

154,895

151,287

Gains not included in FFO

-

(111,360)

Depreciation and amortization from unconsolidated co-investments

13,316

14,378

Noncontrolling interest related to Operating Partnership units

3,669

7,279

Depreciation attributable to third party ownership and other

(38)

(46)

Funds from Operations attributable to common stockholders and unitholders

$

278,028

$

264,648

FFO per share – diluted

$

4.17

$

3.97

Tax expense (benefit) on unconsolidated technology co-investments

$

3,614

$

(163)

Realized and unrealized losses on marketable securities, net

1,726

91

Provision for credit losses

34

(3)

Equity income from unconsolidated technology co-investments

(17,036)

(1,716)

Loss on early retirement of debt

-

762

General and administrative and other, net (1)

4,546

1,276

Insurance reimbursements, legal settlements, and other, net

(51)

(361)

Core Funds from Operations attributable to common stockholders and unitholders

$

270,861

$

264,534

Core FFO per share – diluted

$

4.06

$

3.97

Weighted average number of shares outstanding diluted (2)

66,688,617

66,656,852

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 revenue 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

March 31,

2026

2025

Earnings from operations

$

155,193

$

257,081

Adjustments:

Corporate-level property management expenses

13,398

12,332

Depreciation and amortization

154,895

151,287

Management and other fees from affiliates

(2,313)

(2,494)

General and administrative

20,014

16,292

Gain on sale of real estate and land

-

(111,030)

NOI

341,187

323,468

Less: Non-same property NOI

(28,118)

(22,700)

Same-Property NOI

$

313,069

$

300,768

  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 second quarter and full-year 2026 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 second quarter and full-year 2026 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; tariffs, 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 its 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 and the anticipated or actual impact of future 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, 2025, 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 and supplemental financial information, 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.

More News From Essex Property Trust, Inc.

Key Takeaways ESS Q1 core FFO hits $4.06 per share, beating consensus; total revenues rise 4.3% to $484.8M.ESS same-property NOI increases 4.1%, led by Northern California revenues up 3.9% year over year.ESS cites NOI and co-investments as key upside; keeps 2026 core FFO outlook at $15.69-$16.19. Essex Property Trust, Inc. (ESS - Free Report) reported first-quarter 2026 core funds from operations (FFO) per diluted share of $4.06, beating the Zacks Consensus Estimate of $3.96 by 2.5%. The figure improved 2.3% from $3.97 in the year-ago quarter.

Total revenues were $484.8 million, up 4.3% year over year and ahead of the consensus mark of $481.4 million by 0.7%. Same-property net operating income (NOI) increased 4.1% from the year-ago quarter, reflecting solid property-level momentum.

Management noted that core FFO per share exceeded the midpoint of the company’s prior guidance for the quarter by 11 cents. Of that outperformance, 8 cents was attributed to favorable same-property NOI, with additional help from co-investments.

ESS Delivers Broad-Based Same-Property MomentumSame-property strength was a clear driver of the quarterly performance. The company reported a 2.9% year-over-year increase in same-property revenues, supported by improving fundamentals across its West Coast footprint.

Northern California led the regional growth profile, with same-property revenues up 3.9% year over year, while Southern California and the Seattle Metro posted increases of 2.2% and 2.3%, respectively. On a sequential basis, the same-property portfolio generated 0.7% revenue growth, reflecting continued stabilization in demand and pricing.

ESS Sees Sequential Improvement in Rent DriversThe quarter’s same-property revenue growth was driven primarily by scheduled rents, which increased 2.2% year over year. Other income added another 0.5% tailwind, while delinquency and vacancy were modestly favorable.

Sequentially, scheduled rents increased 0.3%, while vacancy and cash concessions were each a 0.2% positive factor. The company’s same-property financial occupancy ended the quarter at 96.5%, up 20 basis points from a year ago, with occupancies of 96.1% in Southern California, 96.9% in Northern California and 96.6% in Seattle.

ESS' Expense Profile Reflects Higher Interest and G&AExpense items were mixed. Net interest expense totaled $64.0 million, up from $61.5 million in the year-ago quarter, while general and administrative expense increased to $20.0 million from $16.3 million. At the property level, operating expenses rose to $141.3 million from $138.6 million, led by higher utilities costs, partially offset by lower real estate taxes.

Essex Property Maintains Ample Liquidity and Credit MetricsEssex Property ended the quarter with more than $1.7 billion of immediately available liquidity, supported by undrawn capacity on unsecured credit facilities as well as cash and marketable securities. Cash and cash equivalents totaled $47.4 million, and marketable securities were $96.5 million at quarter-end.

Balance sheet leverage metrics remained within stated covenant levels. Total debt, net, was $6.81 billion, and debt to total assets stood at 34%. Credit ratings were Baa1 from Moody’s and BBB+ from S&P, both with stable outlooks, underscoring ongoing access to the unsecured debt markets.

Essex Property Highlights Shareholder ReturnsEssex Property continued to lean into capital returns alongside operating execution. During the quarter, the company announced an increase in its dividend by 0.8% to an annual distribution of $10.36 per common share, extending its streak of consecutive annual dividend increases to 32 years.

Share repurchases were also notable. Year to date through April 27, 2026, the company repurchased $61.9 million of common stock, including commissions, at an average price per share of $243.76. As of the same date, remaining authorization under the repurchase plan was $240.8 million.

ESS Reaffirms 2026 Outlook After Q1 OutperformanceESS introduced second-quarter 2026 core FFO guidance of $3.92-$4.04 per diluted share, with a midpoint of $3.98. The Zacks Consensus Estimate is pegged at $4.06.

For full-year 2026, the company reaffirmed its core FFO guidance range of $15.69-$16.19 per share, alongside its same-property portfolio expectations for revenue growth of 1.70% to 3.10%, operating expense growth of 2.50% to 3.50% and NOI growth of 0.80% to 3.40%. The Zacks Consensus Estimate for full-year 2026 core FFO per share currently stands at $16.03.

ESS’ Zacks RankEssex Property currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Performance of Other Residential REITsAvalonBay Communities, Inc. (AVB - Free Report) reported first-quarter 2026 core funds from operations (FFO) per share of $2.83, beating the Zacks Consensus Estimate of $2.80 by 1.1%. Total revenues came in at $770.3 million, up 3.3% year over year and essentially in line with the consensus mark of $770.6 million.

AvalonBay’s same-store economic occupancy held at 96.1%, underscoring steady demand heading into the peak leasing season. The quarter benefited from incremental development NOI and commercial NOI. However, higher interest expenses undermined the performance of AvalonBay to an extent.

Equity Residential (EQR - Free Report) reported first-quarter 2026 normalized FFO of 99 cents per share, up 4.2% year over year and ahead of the Zacks Consensus Estimate of 95 cents by 4.2%. Rental income grew 2.5% year over year to $779.8 million but came in 0.3% below the consensus mark of $782.6 million.

Equity Residential’s operating fundamentals were supported by steady occupancy and improving coastal-market momentum. Same-store performance remained strong, with revenue growth outpacing prior-quarter momentum and occupancy staying firm. Equity Residential’s management emphasized strength in San Francisco and New York, citing solid demand from higher-earning renters and moderating new supply across its markets.

Note: Anything related to earnings presented in this write-up represents funds from operations (FFO), a widely used metric to gauge the performance of REITs.

Essex Property Trust, Inc. (ESS) Q1 2026 Earnings Call Transcript

Key Takeaways INVH reported Q1 core FFO of $0.48, flat year over year and in line with estimates.INVH revenues rose 8.8% to $734.1M, driven by rentals, other income and new homebuilding activity.INVH saw higher expenses and mixed leasing spreads, with renewal gains offset by weaker new lease rates. Invitation Homes Inc. (INVH - Free Report) reported first-quarter 2026 core funds from operations (FFO) per share of $0.48, in line with the Zacks Consensus Estimate. Core FFO was unchanged from the year-ago quarter.

Total revenues climbed 8.8% year over year to $734.11 million and beat the consensus mark by 6.58%. The quarter reflected firm operating momentum, with higher blended rentals and leasing trends improving in April.

INVH’s Revenue Beat Comes From a Broader MixThe top-line outperformance was aided by growth in core property revenues and incremental contributions from homebuilding activities. Rental revenues increased to $597.70 million from $585.19 million a year ago, while other property income rose to $72.82 million from $67.88 million.

A notable change in the revenue mix was the addition of $43.75 million in homebuilding revenues, which was absent in the prior-year quarter. Management fee revenues declined year over year to $19.85 million from $21.41 million, but the combination of rental, other income and homebuilding supported overall revenue strength.

Invitation Homes Witnesses a Rise in ExpensesOn the cost side, property operating and maintenance expenses increased 5.8% year over year to $251.13 million. The company also reported a higher interest expense of $95.31 million, up 13.1% from the prior-year quarter, reflecting a heavier financing cost backdrop.

INVH’s Same-Store Results Show Rent ResilienceOperationally, the Same-Store portfolio posted a 1.6% year-over-year increase in core revenues, aided by a 2.2% rise in the average monthly rent and a 10.3% jump in other income, net of resident recoveries. Those gains were partially offset by a moderation in occupancy versus the year-ago period. Same-store occupancy declined to 96.3% from 97.2% in the prior year period.

Leasing spreads remained mixed. Same-Store renewal rent growth was 3.7%, while Same-Store new lease rent growth was (3%), resulting in blended rent growth of 1.6%. Management noted preliminary April Same-Store blended rent growth of about 2.3%, including a return to positive new lease rent growth for the month.

Invitation Homes Accelerates Capital Returns and SalesCapital allocation was active in the quarter. INVH repurchased 17,101,046 shares for approximately $439 million under its share repurchase program.

The company also leaned into home sales. It was a net seller of 222 wholly owned homes, generating net proceeds of about $116 million.

INVH’s Balance SheetInvitation Homes exited the first quarter of 2026 with total liquidity of $1.3 billion, including unrestricted cash and undrawn capacity on its revolving credit facility.

Secured and unsecured debt aggregated $8.87 billion as of March 31, 2026, and its Net Debt/TTM adjusted EBITDAre was 5.6X.

INVH Maintains Its 2026 Outlook and Key AssumptionsInvitation Homes maintained its previously disclosed full-year 2026 outlook. It continues to expect core FFO per share of $1.90-$1.98. The Zacks Consensus Estimate for the same is pegged at $1.94, which lies within the guided range.

Underlying assumptions call for Same-Store core revenues growth of 1.3%-2.5% alongside Same-Store core operating expenses growth of 3%-4%, implying Same-Store NOI growth of 0.3%-2%. The framework also includes planned capital recycling, with wholly owned dispositions projected at $450-$650 million and wholly owned acquisitions at $150-$350 million.

INVH’s Zacks RankCurrently, INVH carries a Zacks Rank #4 (Sell).

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Performance of Other Residential REITsEssex Property Trust Inc. (ESS - Free Report) reported first-quarter 2026 core FFO per share of $4.06, beating the Zacks Consensus Estimate of $3.96 by 2.5%. The figure improved 2.3% from $3.97 in the year-ago quarter.

Results reflected favorable growth in same-property NOI and higher occupancy.

AvalonBay Communities (AVB - Free Report) reported first-quarter 2026 core FFO per share of $2.83, surpassing the Zacks Consensus Estimate of $2.80.

AVB’s same-store economic occupancy held at 96.1%, underscoring steady demand heading into the peak leasing season. The quarter benefited from incremental development NOI and commercial NOI.

Note: Anything related to earnings presented in this write-up represents funds from operations (FFO) — a widely used metric to gauge the performance of REITs.

Essex Property Trust receives a Buy rating with a $289/share price target, reflecting a 9% upside from current levels. ESS benefits from AI-driven employment growth in the Bay Area and Seattle, limited new housing supply, and compelling rent-to-income dynamics supporting embedded rent growth. Q1 2026 results exceeded guidance, with Core FFO at $4.07/share and management reaffirming full-year guidance while raising total FFO and net income forecasts.

WILSONVILLE, Ore.--(BUSINESS WIRE)--ESS Tech, Inc. (NYSE: GWH) ("ESS" or the "Company"), a leading manufacturer of long-duration iron flow energy storage systems (“LDES”) for commercial and utility-scale applications, today announced that management will attend the upcoming Sidoti Micro-Cap Virtual Conference.

ESS’ Chief Executive Officer, Drew Buckley, will participate in one-on-one investor meetings and will also host a presentation from 2:30 PM ET to 3:00 PM ET in Track 1. Mr. Buckley will be discussing recently reported quarterly results, recent validation of the Company’s technology, and advancing commercial opportunities.

Sidoti Virtual Micro-Cap Virtual Conference
Date: Wednesday, May 20, 2026
Format: Presentation & Virtual 1x1 Meetings
Presentation: 2:30 – 3:00 PM ET in Track 1
Webcast: Click here
Attendee: Chief Executive Officer Drew Buckley
Conference Website: Click here

For more information on the Sidoti Micro-Cap Virtual Conference, or to schedule a one-on-one meeting with Drew Buckley, please contact your conference representative or you may also email your request to [email protected] or call Chris Tyson at (949) 941-8235.

About ESS Tech, Inc.

ESS (NYSE: GWH) is the leading manufacturer of long-duration iron flow energy storage solutions. ESS was established in 2011 with a mission to accelerate decarbonization safely and sustainably through longer lasting energy storage. Using easy-to-source iron, salt, and water, ESS iron flow technology enables energy security, reliability and resilience. We build flexible storage solutions that allow our customers to meet increasing energy demand without power disruptions and maximize the value potential of excess energy. For more information visit www.essinc.com.

Cautionary Language on Forward-Looking Statements

This communication contains forward-looking statements (including within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, and Section 27A of the Securities Act of 1933, as amended) concerning the Company and other matters that involve substantial risks and uncertainties. These forward-looking statements are based on ESS’ current expectations and beliefs concerning future developments and their potential effects on ESS. These forward-looking statements involve a number of risks, uncertainties (some of which are beyond ESS control) or other assumptions that may cause actual results or performance to be materially different from those expressed or implied by these forward-looking statements, which include risks and uncertainties described more fully in the section titled “Risk Factors” in the Company’s Quarterly Report on Form 10-Q filed on May 7, 2026, and the Company’s other filings with the U.S. Securities and Exchange Commission. Except as required by law, ESS is not undertaking any obligation to update or revise any forward-looking statements whether as a result of new information, future events or otherwise.

More News From ESS, Inc.

-

SAN MATEO, Calif.--(BUSINESS WIRE)--Essex Property Trust, Inc. (NYSE:ESS) announced today that Angela L. Kleiman, President and CEO, will be participating in a roundtable presentation at the 2026 Nareit REITweek Conference on Wednesday, June 3, 2026 at 2:00 p.m. Eastern Time.

To listen to the panel, please visit the webcast link under the latest events section of the Company’s Investors website at www.essex.com. An archive of the webcast will be available for thirty days following the event. A copy of any materials provided by the Company at the conference can be obtained through the Investors section of the Company’s website.

About Essex Property Trust, Inc.

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 259 apartment communities comprising over 63,000 apartment homes with an additional property in active development. Additional information about the Company can be found on the Company’s website at www.essex.com.

More News From Essex Property Trust, Inc.

Back to Newsroom

Essex Property Trust, Inc. (ESS) Nareit REITweek: 2026 Investor Conference June 3, 2026 2:00 PM EDT

Company Participants

Angela Kleiman - President, CEO & Director
Barb Pak - Executive VP & CFO
Rylan Burns - Executive VP & Chief Investment Officer

Conference Call Participants

John Kim - BMO Capital Markets Equity Research

Presentation

John Kim
BMO Capital Markets Equity Research

Okay. Thank you so much for joining us today. My name is John Kim with BMO Capital Markets. It is my pleasure to be hosting this panel presentation with Essex Property Trust, one of the preeminent multifamily owners.

With me today, Angela Kleiman, CEO and President; to the far left, Barb Pak, Chief Financial Officer; and in between, Rylan Burns, CIO.

I think at this time, we're just going to pass it off to Angela for some opening remarks, and then we'll go to Q&A.

Angela Kleiman
President, CEO & Director

Great. Thanks, John, and welcome, everyone, to the Essex presentation. Just a high-level overview. Essex is an S&P 500 company and the only public company dedicated to the West Coast geography. We have our market cap, which is about $25 billion. We own somewhere around 258 units -- apartment buildings, a little over 63,000 units across our footprint. And we have generated a 32 years of consecutive dividend growth, earning us the Dividend Aristocrat standing. So we're quite pleased with that.

Some of the differentiating factors with the West Coast is really driven by the fundamentals, and the key one being that we have -- we produced a low amount of housing supply. And currently, actually, we're sitting at a historical low. We have about 40 basis points of total supply right now. And normally, it's about 70 basis points. And that's important because it provides a very safe basis in terms of where the economy is. We don't need a