Essex Property Trust Inc (ESS) Q3 2023 Earnings: Key Highlights
Net income per diluted share for Q3 2023 was $1.36, a decrease of 4.9% compared to Q3 2022.
Total Funds from Operations (FFO) per diluted share for Q3 2023 was $3.69, an increase of 7.0% compared to Q3 2022.
Core FFO per diluted share for Q3 2023 was $3.78, an increase of 2.4% compared to Q3 2022.
Same-property revenue growth for Q3 2023 was 3.2%.
Essex Property Trust Inc (NYSE:ESS) released its third quarter 2023 earnings results and related business activities on October 26, 2023. The report showed a decrease in net income per diluted share compared to the same period in 2022, but an increase in both Total FFO and Core FFO per diluted share. The company also reported a 3.2% growth in same-property revenue for Q3 2023.
Financial Performance
ESS reported a net income per diluted share of $1.36 for Q3 2023, marking a 4.9% decrease from $1.43 in Q3 2022. However, Total FFO per diluted share for Q3 2023 was $3.69, a 7.0% increase from $3.45 in Q3 2022. Core FFO per diluted share also increased by 2.4% from $3.69 in Q3 2022 to $3.78 in Q3 2023.
Same-Property Operations
ESS reported a 3.2% increase in same-property gross revenues for Q3 2023 compared to Q3 2022. The company's same-property portfolio showed a 3.2% revenue growth and a 4.4% increase in operating expenses for Q3 2023 compared to Q3 2022.
Investment Activity
In September 2023, ESS committed $12.3 million to one preferred equity investment at a preferred return rate of 13.5%. The investment was fully funded at closing and is scheduled to mature in 2028.
Liquidity and Balance Sheet
ESS did not issue any shares of common stock through its equity distribution program or repurchase any shares through its stock repurchase plan in Q3 2023. As of October 24, 2023, the company had approximately $1.6 billion in liquidity via undrawn capacity on its unsecured credit facilities, cash and cash equivalents, and marketable securities.
Guidance
ESS provided its 2023 full-year assumptions for Net Income, Total FFO, Core FFO per diluted share, and same-property growth, as well as the companys fourth quarter 2023 assumptions for Core FFO per diluted share.
Upcoming Events
ESS is scheduled to participate in the National Association of Real Estate Investment Trusts (NAREIT) REITWorld Conference held at the JW Marriott Los Angeles L.A. LIVE in Los Angeles, CA from November 14 - 15, 2023.
Explore the complete 8-K earnings release (here) from Essex Property Trust Inc for further details.
This article first appeared on GuruFocus.
