ESSEX PROPERTY TRUST, INC. (ESS)

Price—Loading quote

AI: Fair-priced

Price checkAt $287.52, Essex looks fairly priced, with quality offset by modest expected growth.

The most recent completed session was August 14, when Essex closed at $287.52. Against management’s revised 2026 core funds from operations midpoint of $16.14 per share—property earnings excluding depreciation and unusual items—the price is 17.8 times earnings. That represents $5.60 of guided earnings for each $100 invested. The $10.36 annual dividend provides a 3.6% cash yield and equals 64% of guided earnings. This valuation assumes steady 2%–3% growth and orderly refinancing, leaving limited bargain protection.

Big pictureCash generation has risen despite noisy accounting profit, while regional rent trends remain uneven.

Operating cash flow—cash produced by normal operations—rose from $803 million in 2020 to $1.07 billion in 2025. It reached $541 million in the first half of 2026, 8.7% above the comparable 2025 quarters. Second-quarter comparable-property revenue and property profit grew 2.7% and 2.6%, with occupancy at 96.3%. Recurring rent supports durability, but geography creates cycles: Northern California revenue grew 4.4%, versus 1.5% in Southern California and 1.7% in Seattle. Property sales and depreciation also make reported profit unusually volatile.

Business strengthStrong liquidity and restrained share issuance help, but debt leaves little room for mistakes.

At June 30, Essex carried $6.39 billion of debt and $58 million of cash, leaving about $6.33 billion of debt after cash. That is roughly 5.1 times the supplied trailing four-quarter earnings before interest, taxes, depreciation, and amortization. The company also reported $1.4 billion of cash and available borrowing capacity. Shares declined slightly to 64.27 million from 64.44 million at year-end, avoiding dilution. Essex repurchased $61.9 million of stock during 2026 at $243.76 per share, below today’s price, after no buybacks in 2024–2025.

What could change the storyFaster Northern California rents could lift value, while weak growth or refinancing would expose the premium.

The bull case strengthens if comparable-property profit exceeds management’s 3.3% guidance ceiling and core property earnings surpass $16.25 per share, especially without issuing shares. Northern California already provides the needed momentum. The bear case emerges if profit growth falls below 2.3%, Southern California remains near 1%, Seattle expenses keep outrunning rents, or refinancing raises interest costs. At 17.8 times expected property earnings, Essex needs several years of modest growth; flat earnings would leave investors mainly with a 3.6% dividend yield and little valuation cushion.

$287.52 price considered

AI: News

Yearly outlook raisedEssex raised its yearly outlook as stronger rent growth outweighed softer headline profit.

On July 29, Essex reported second-quarter core property earnings of $4.08 per share, up 1.2% and $0.10 above its guidance midpoint. It raised the 2026 midpoint to $16.14, an increase of $0.20, and lifted comparable-property profit growth expectations to 2.8%. Shares closed about 4.1% lower on July 30, falling from $296.80 to $284.67. The timing makes the report relevant to trading, but does not prove the announcement alone caused the decline.

Legal cases settledTwo legal settlements cut reported profit and created a real, though manageable, cash cost.

On July 29, the quarterly report disclosed a $36.5 million settlement resolving Essex’s RealPage rent-pricing case and a separate $19.3 million litigation settlement. The combined $55.8 million charge increased company-level expenses and helped reduce second-quarter reported earnings to $0.97 per share from $3.44 a year earlier, although property-sale gains also distort that comparison. Both settlements require court approval. Their specific contribution to the following day’s share decline cannot be isolated.

Capital recycledProperty sales, loan repayments, and discounted buybacks shifted capital toward higher expected returns.

During June, a half-owned venture sold a 218-home San Jose community for $105.3 million, with Essex’s share totaling $52.6 million. Essex also recovered $87.8 million from investments yielding 11.6%, then committed $18.1 million after quarter-end to new investments yielding 11.5%. It repurchased $61.9 million of stock during 2026 at an average $243.76, well below the August 14 close. These moves may improve returns, but no separate share-price reaction is reliably attributable to them.

Revenue

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2021

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2025

Net income

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Free cash flow

No reported data

Total cash / debt

CashTotal debt

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Financial statements

	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015	2014	2013	2012	2011	2010	2009	2008
Revenue	$9.4M	$10.3M	$11.1M	$11.1M	$9.1M	$9.6M	$9.5M	$9.2M	$1.36B	$1.29B	$1.19B	$970.9M	$610.6M	$535.2M	$467.4M	$410.3M	$408.9M	$408.4M
Gross profit	$1.32B	$1.24B	$1.17B	$1.13B	—	—	—	—	—	—	—	—	—	—	—	—	—	—
Operating income	$899.3M	$703.1M	$584.3M	$595.2M	$530.0M	$491.4M	$481.1M	$512.0M	$472.9M	$420.8M	$331.2M	$201.5M	$188.7M	$167.0M	$134.6M	$110.6M	$111.7M	$138.0M
EBITDAderived	$1.51B	$1.28B	$1.13B	$1.13B	$1.05B	$1.02B	$964.9M	$991.9M	$941.8M	$862.5M	—	—	$393.3M	$347.8M	$296.1M	$240.3M	$230.3M	$251.3M
Net income	$702.8M	$811.3M	$430.7M	$433.0M	$515.7M	$599.3M	$464.4M	$390.2M	$433.1M	$415.0M	$232.1M	$122.2M	$156.3M	$125.3M	$47.1M	$35.9M	$37.1M	$62.1M
Basic EPSper diluted share	$10.40	$11.55	$6.32	$6.27	$7.51	$8.69	$6.67	$5.91	$6.58	$6.28	$3.50	$2.07	$4.05	$3.42	$1.24	$1.14	$3.01	$2.10
Diluted EPSper diluted share	$10.40	$11.54	$6.32	$6.27	$7.51	$8.69	$6.66	$5.90	$6.57	$6.27	$3.49	$2.06	$4.04	$3.41	$1.24	$1.14	$2.91	$2.09

Review source filings at SEC.gov ↗

Insider buys & sells

Jul 1, 2024–Jun 30, 2026

Buys0$0.00 disclosed value

Sells (SEC code S)13$14.19M disclosed value

Transaction	Insider	Type	Shares	Price	Value	Owned after
May 27, 2026Form 4	Kasaris MaryDirector	SellCommon Stock	600	$279.45	$167.7K	2.4K
Mar 11, 2025Form 4	Kasaris MaryDirector	SellCommon Stock	2.8K	$300.80	$842.2K	1.8K
Mar 4, 2025Form 4 · 10b5-1	Kleiman Angela L.President and CEO	SellCommon Stock	400	$315.12	$126.0K	13.7K
Mar 3, 2025Form 4 · 10b5-1	Kleiman Angela L.President and CEO	SellCommon Stock	4.9K	$314.99	$1.55M	13.7K
Mar 3, 2025Form 4	GUERICKE KEITH RDirector	SellCommon Stock	7.3K	$315.00	$2.30M	16.1K

Review ownership filings at SEC.gov ↗

ESSEX PROPERTY TRUST, INC. (ESS)

Financial charts

Financial statements

Insider buys & sells