Essex Property Trust lifts 2025 forecast on rental strength

Essex Property Trust

29/07/2025 22:32

July 29 (Reuters) - Essex Property Trust ESS.N raised its annual core funds from operations (FFO) forecast on Tuesday, boosted by stronger rental income and lower property tax trends, particularly in Washington state.

The multifamily residential property company, which owns a portfolio of about 62,000 apartment units across Washington and California, continues to benefit from steady rental demand in its core markets.

High home prices and strong tech-sector employment in these regions make renting a more affordable option.

The company raised its 2025 core FFO per share forecast to a range of $15.80 to $16.02, compared with its earlier projection of $15.56 to $16.06.

It also lifted its full-year net income per share forecast to a range of $10.05 to $10.29, up from its prior estimate of $9.27 to $9.57. Analysts, on average, expect $7.56 per share.

On a same-property basis, Essex projected operating expenses for 2025 to grow between 3.00% and 3.50%, with revenue growth expected in the range of 2.90% to 3.40%.

For the second quarter ended June 30, Essex reported core FFO of $4.03 per share, compared with analysts' estimates of $3.99 per share.

 (Reporting by Anandita Mehrotra and Aishwarya Jain in Bengaluru; Editing by Mohammed Safi Shamsi)

 ((Aishwarya.Jain@thomsonreuters.com;))