Essex Property Trust (ESS)

Real Estate · $17.7B market cap · SEC CIK 0000920522

Next reports on Feb 2, 2027, after the close, with analysts expecting $1.51 in earnings per share.

52-week range $238.46 to $303.35. 9% below its 52-week high and 16% above its low.

The case for ESS

• Pays a 4.3% dividend while you wait.
• Gross margin of 71% absorbs cost shocks.
• Moves less than the market (beta 0.70).

The case against

• Expensive for its growth: 51.1× earnings, where 4% a year of growth would justify about 14×.
• Earnings per share down 59.0%.
• Priced at 9.1× sales with revenue growing only 4.5%.
• Return on equity of only 6%.
• Current liabilities exceed current assets (ratio 0.73).
• Dividend takes 191% of earnings, leaving little cushion.

What the score is made of

Each factor is half a curve over reported figures and half a rank among the other Real Estate companies (momentum is judged against fixed thresholds only), and the five are blended by weight. The score is where that blend places it in the S&P 500. It describes the last filing and the current price. It is not a forecast.

• Capital spending is missing from its filings, so free cash flow cannot be worked out. Operating cash flow stands in for the cash test, against a stricter bar.
• Each factor except momentum is half fixed thresholds, half rank among the 30 Real Estate companies.

The financials

The financials, five years deep

Pulled from Essex Property Trust's XBRL filings on SEC EDGAR. Italic rows are worked out from the others.

What Essex Property Trust says it does

OVERVIEW Essex Property Trust, Inc. (“Essex”), a Maryland corporation, is an S&P 500 company that operates as a self-administered and self-managed real estate investment trust (“REIT”). Essex owns all of its interest in its real estate and other investments directly or indirectly through Essex Portfolio, L.P. (the “Operating Partnership” or “EPLP”). Essex is the sole general partner of the Operating Partnership and as of December 31, 2025, had an approximately 96.6% general partner interest in the Operating Partnership. In this report, the terms “Company,” “we,” “us,” and “our” also refer to Essex Property Trust, Inc., the Operating Partnership and those entities/subsidiaries owned or controlled by Essex and/or the Operating Partnership. Essex has elected to be treated as a REIT for federal income tax purposes commencing with the year ended December 31, 1994. Essex completed its initial public offering on June 13, 1994. In order to…

Risk factors ESS lists in its 10-K

• General real estate investment risks may materially adversely affect property income and values, and therefore our stock price may be materially adversely affected
• Short-term leases expose us to the effects of declining market rents, and the Company may be unable to renew leases or relet units as leases expire
• Acquisitions of communities involve various risks and uncertainties and may fail to meet expectations
• Development and redevelopment activities may be delayed, not completed, and/or not achieve expected results
• The geographic concentration of the Company’s communities and fluctuations in local markets may adversely affect the Company’s financial condition and results of operations
• The Company may experience various increased costs, including increased property taxes, to own and maintain its properties
• Competition in the apartment community market and other housing alternatives may materially adversely affect operations and the rental demand for the Company’s communities
• Investments in mortgages, mezzanine loans, subordinated debt, other real estate, and other marketable securities could materially adversely affect the Company’s cash flow from operations
• We may pursue acquisitions of other REITs and real estate companies, which may not yield anticipated results and could materially adversely affect our results of operations
• Real estate investments are relatively illiquid and, therefore, the Company’s ability to vary its portfolio promptly in response to changes in economic or other conditions may be limited
• The Company’s portfolio may have environmental liabilities
• The Company may incur general uninsured losses or may experience market conditions that impact the procurement of certain insurance policies
• Climate change may materially adversely affect our business
• Accidental death or severe injuries at our communities due to wildfires, floods, other disasters or hazards could materially adversely affect our business and results of operations
• Adverse changes in laws may materially adversely affect the Company’s liabilities and/or operating costs relating to its properties and its operations
• Failure to succeed in new markets or with new community operations formats may limit the Company’s growth, and additionally, the Company’s commercial leases could adversely affect us
• The Company’s real estate assets may be subject to impairment charges
• Reliance on third party software providers to host systems is critical to our operations and to provide the Company with data, and regulation of those providers and practices may impact operational capabilities
• We may from time to time be subject to litigation or regulatory investigation, which could have a material adverse effect on our business, financial condition and results of operations
• Compliance requirements of tax-exempt financing and below market rent requirements may limit income from certain communities
• Interest rate hedging arrangements may result in losses
• A downgrade in the Company’s investment grade credit rating could materially adversely affect its business and financial condition
• Changes in the Company’s financing policy may lead to higher levels of indebtedness
• If the Company or any of its subsidiaries defaults on an obligation to repay outstanding indebtedness when due, the default could trigger a cross-default or cross-acceleration under other indebtedness
• The Company could be negatively impacted by the condition of Fannie Mae or Freddie Mac and by changes in government support for multifamily housing
• The Company depends on its personnel, whose continued service is not guaranteed
• The Company’s Chairman is involved in other real estate activities and investments, which may lead to conflicts of interest
• The influence of executive officers, directors, and significant stockholders may be detrimental to holders of common stock
• Our related party guidelines may not adequately address all of the issues that may arise with respect to related party transactions
• Employee theft or fraud could result in loss
• Essex may choose to pay dividends in its own stock, which could materially adversely affect its stockholders
• The Company’s future issuances of common stock, preferred stock or convertible debt securities could be dilutive to current stockholders and materially adversely affect the market price of the Company’s common stock
• Certain provisions contained in the Operating Partnership agreement, Charter and Bylaws, and certain provisions of the Maryland General Corporation Law could delay, defer or prevent a change in control
• Stockholders have limited control over changes in our policies and operations
• Loss of the Company’s REIT status would have a material adverse effect on the Company and the value of the Company’s common stock
• Complying with REIT requirements may affect our profitability and may force us to liquidate or forgo otherwise attractive investments
• Legislative or other actions affecting REITs could have a material adverse effect on the Company or its stockholders
• Failure of one or more of the Company’s subsidiaries to qualify as a REIT could materially adversely affect the Company’s ability to qualify as a REIT
• The tax imposed on REITs engaging in “prohibited transactions” may limit the Company’s ability to engage in transactions which would be treated as sales for federal income tax purposes
• We may face risks in connection with Section 1031 exchanges
• Partnership tax audit rules could have a material adverse effect on us
• The soundness of financial institutions could materially adversely affect us
• The price per share of the Company’s stock may fluctuate significantly
• Corporate responsibility, specifically related to sustainability factors, may impose additional costs and expose us to new risks or litigation
• We could face adverse consequences as a result of M&A activity in the REIT sector and actions of activist investors
• Any material weaknesses identified in the Company’s internal control over financial reporting could have an adverse effect on the Company’s stock price
• Increased public, media, regulatory and governmental scrutiny of the housing industry could materially adversely affect our business, reputation, and results of operations

Filings

Other Real Estate companies