Essex Property Trust beats core FFO estimates on higher rentals
Oct 26 (Reuters) - Essex Property Trust beat third-quarter estimates for core funds from operations (FFO) on Thursday, as the residential real estate investment firm benefited from strong U.S. rental revenue caused by high inflation.
Rental units and their prices continue to benefit from a housing shortage across the U.S. as fewer people can afford new houses at a time when mortgage rates have touched two-decade highs.
Core FFO - a measure that captures trends in occupancy rates, rental rates and operating costs - grew 2.4% to $3.78 per share, compared with estimates of $3.77 per share, according to LSEG data.
Same-property revenue increased 3.2% for the quarter ended Sept. 30, helped by higher rents.
Net income fell 4.9% to $1.36 per share.
As of Dec. 31, 2022, the California-based company's portfolio included 252 apartment communities, which comprise of 62,147 apartments overall.
(Reporting by Mehr Bedi in Bengaluru; Editing by Devika Syamnath)
