Q3 2024 Essex Property Trust Inc Earnings Call Transcript
Key Points
- Essex Property Trust Inc (ESS) reported a third guidance raise this year due to strong quarterly performance, with core FFO per share exceeding the midpoint of their guidance range.
- Record low turnover and excellent progress in resolving delinquency have contributed to results exceeding original 2024 expectations.
- Seattle has been a top performer, delivering a strong 3.8% blended rent growth in the third quarter.
- The company has successfully acquired over 1,700 units totaling over $700 million at their pro rata share, with attractive returns relative to their cost of capital.
- Essex Property Trust Inc (ESS) has a strong balance sheet with low leverage, defined by a net debt-to-EBITDA ratio of 5.5 times, and over $1 billion in liquidity.
- The company anticipates a heavier supply delivery and increased concessions usage in the Seattle region for the rest of the year.
- Southern California's lease rate growth was tempered by delinquency recovery headwinds in Los Angeles.
- The company expects short-term impacts from higher concessions in Northern California due to anticipated deliveries in San Jose.
- Essex Property Trust Inc (ESS) faces potential regulatory challenges, such as California Proposition 33, which could impact housing production and costs.
- The structured finance book's strategic reallocation results in short-term FFO dilution, although it aims to improve long-term growth.
Ladies and gentlemen, good afternoon, and welcome to the Essex Property Trust third-quarter 2024 earnings conference call. (Operator Instructions) As a reminder, this conference is being recorded.
It is now my pleasure to introduce your host, Angela Kleiman, President and CEO. Please go ahead, ma'am.
Good morning. Thank you for joining Essex's third quarter earnings call. Barb Pak will follow with prepared remarks, and Roland Burns is here for Q&A.
We are pleased to report our third guidance raise this year as a result of another healthy quarter with core FFO per share exceeding the midpoint of our guidance range. Today, my comments will focus on our performance year-to-date preliminary considerations for 2025 and an update on the investment market.
Starting with highlights to date. Notable milestones this year include record low turnover, excellent progress resolving delinquency, and positive inflection points in several key demand drivers.
| Access to All Earning Calls and Stock Analysis | |
| 30-Year Financial on one screen | |
| All-in-one Stock Screener with unlimited filters | |
| Customizable Stock Dashboard | |
| Real Time Insider Trading Transactions | |
| 8,000+ Institutional investors’ 13F holdings | |
| Powerful Excel Add-in and Google sheets Add-on | |
| All data downloadable | |
| Quick customer support | |
| And much more... |
Trustpilot
We'd love to learn more about your experiences on GuruFocus.com and how we can improve!
Take Survey
