Update shared on05 Sep 2025
Analysts have modestly reset expectations for Essex Property Trust following sector underperformance and Q2 results, highlighting its relative valuation appeal and West Coast rent growth amid supply declines but noting more attractive opportunities among peers, leaving the consensus price target unchanged at $295.44.
Analyst Commentary
- Apartment REIT sector underperformance and Q2 selloff have created rare relative valuation discounts and negative sentiment, but expectations are now reset and supply is falling.
- Bullish analysts highlight tech-centric West Coast markets (San Francisco, San Jose, Seattle) driving robust rent growth and helping Essex outperform Sun Belt peers facing oversupply headwinds.
- Some adjustment to estimates and targets followed Q2 results, as Essex’s results led to moderation in near-term growth outlook relative to other REITs seen as offering greater discounts or more upside.
- Falling new supply in Essex’s key markets provides some downside protection if job growth weakens, but peer opportunities are seen as more attractive by certain analysts.
- Overall, recent target changes reflect a mix of cautious optimism from valuation resets and market strength, counterbalanced by concerns about broader sector underperformance and competitive opportunities elsewhere.
What's in the News
- No shares were repurchased from April 1 to June 30, 2025; total buyback completed remains at 857,632 shares for $197.33 million.
- Full-year 2025 net income per diluted share guidance was raised to $10.05–$10.29 from prior $9.19–$9.69.
- Third quarter 2025 consolidated revenues are guided at $0.05 per diluted share.
Valuation Changes
Summary of Valuation Changes for Essex Property Trust
- The Consensus Analyst Price Target remained effectively unchanged, at $295.44.
- The Future P/E for Essex Property Trust has fallen slightly from 55.83x to 53.35x.
- The Discount Rate for Essex Property Trust remained effectively unchanged, moving only marginally from 7.22% to 7.23%.
Disclaimer
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