Essex Lifts 2026 Core FFO Outlook After Faster Same-Property Revenue Growth

The Tip Desk · November 8, 2026 · 4 min read

Core FFO was $4.00 a share in the third quarter as same-property revenue rose 3.0% and the company raised the full-year Core FFO midpoint to $16.16.

Essex Property Trust (ESS), a West Coast multifamily REIT, reported Core FFO of $4.00 a share for the third quarter, up 0.8% from $3.97 a year earlier, after 1.2% growth in the second quarter. The company said the result exceeded the midpoint of its prior Core FFO guidance range by $0.01 a share, driven by same-property revenue growth.

Same-property revenue growth accelerated to 3.0% from 2.7% in the second quarter. Sequential same-property revenue rose 1.0%, versus 0.8% in the prior quarter. The company attributed the sequential improvement to growth across all regions and continued strength in Northern California.

Scheduled rents contributed 2.5% to year-over-year same-property revenue growth. Vacancy added 0.1% and other income added 0.4%. Same-property financial occupancy was 96.3%, unchanged from June 30 and up from 96.0% a year earlier.

Northern California same-property revenue rose 5.4% year over year and 1.7% sequentially. Southern California same-property revenue rose 1.5% year over year and 0.4% sequentially. Seattle Metro same-property revenue rose 1.3% year over year and 0.8% sequentially.

Same-property NOI growth was 3.1% year over year, up from 2.6% in the second quarter. Sequential same-property NOI declined 1.3% after a 1.2% sequential increase in the second quarter. Northern California same-property NOI rose 7.0% year over year. Southern California same-property NOI rose 1.0% year over year. Seattle Metro same-property NOI declined 0.4% year over year.

Total FFO was $3.98 a share, down 1.2% from $4.03 a year earlier, after a 17.6% year-over-year decline in the second quarter. Net income was $1.52 a share, down 40.6% from $2.56 a year earlier, after a 71.8% year-over-year decline in the second quarter. The company said the net-income decrease was primarily driven by gains on sale of real estate and land recognized in the third quarter of 2025. Gains excluded from FFO were $12.5 million, down from $67.5 million a year earlier. The company recorded a $6.8 million gain on sale of real estate and land and a $5.8 million pro-rata gain on sale of co-investment communities, both excluded from Total and Core FFO. It also recorded a $10.7 million impairment loss.

In August, Essex sold a 76-unit Seattle community for a $30.0 million contract price. A joint venture in which the company owned a 58% interest sold a 268-unit San Jose community for a $122.3 million contract price, or $70.9 million at pro rata share. The company said it disposed of three apartment communities for a total pro rata contract price of $111.9 million. After quarter end, it acquired a 378-unit Oakland community built in 2024 following liquidation of a $64.2 million subordinated loan and payoff of a $92.3 million senior mortgage, and said it will consolidate the community in the fourth quarter.

In September, the company obtained a $275.0 million unsecured term loan priced at SOFR plus 0.80%, maturing in September 2029 with two one-year extension options. As of September 30, liquidity was over $1.7 billion via available capacity on unsecured credit facilities, cash and cash equivalents, and marketable securities. It did not repurchase shares in the third quarter. Year-to-date it had repurchased 254,001 shares for $61.9 million at an average $243.76, with $500.0 million of remaining repurchase authority and $883.5 million of remaining ATM authority.

Essex raised full-year 2026 Core FFO guidance to a range of $16.10 to $16.22, a midpoint of $16.16, from a prior midpoint of $16.14. Same-property revenue guidance midpoint was raised to 2.9% from 2.8%, and same-property NOI midpoint to 3.0% from 2.8%. Same-property operating-expense guidance midpoint was unchanged at 2.8%. Net income guidance midpoint was raised to $5.68 from $5.58. Total FFO guidance midpoint was unchanged at $15.48. The company issued new fourth-quarter 2026 Core FFO guidance of $3.95 to $4.07, a midpoint of $4.01.