Essex Property Trust Reports 6.4% Revenue Growth to $1.76 Billion for Fiscal Year 2024

Essex Property Trust, Inc. reported a solid financial performance for the fiscal year ending December 31, 2024, with total property revenues reaching $1.76 billion, a 6.4% increase from $1.66 billion in 2023. The company’s net income available to common stockholders was $741.5 million, compared to $405.8 million in the previous year. This growth was driven by a combination of increased rental rates and successful acquisitions, which contributed to a 3.3% rise in Same-Property revenues, totaling $1.64 billion. The average rental rate increased from $2,605 in 2023 to $2,655 in 2024, while financial occupancy averaged 96.1%, slightly down from 96.5% in the prior year.

In terms of strategic developments, Essex made significant acquisitions in 2024, including the purchase of its joint venture partner's interests in several portfolios, such as the BEXAEW and BEX II portfolios, and properties like Patina at Midtown and Century Towers. The total acquisition cost for these properties amounted to approximately $1.2 billion. Additionally, the company disposed of its 81.5% interest in Hillsdale Garden for $252.4 million, which it plans to reinvest in higher-return communities. The company’s development pipeline as of December 31, 2024, included various predevelopment projects with total incurred costs of $52.7 million.

Operationally, Essex managed a portfolio of 255 apartment communities, comprising 62,157 apartment homes, with a geographic focus on Southern California, Northern California, and the Seattle metropolitan area. The company reported a financial occupancy rate of 95.8% in Southern California, 96.3% in Northern California, and 96.7% in the Seattle Metro region. The company employed 1,715 individuals, with 99.8% being full-time employees, reflecting a commitment to maintaining a skilled workforce to support its operations.

The filing also highlighted the company’s proactive approach to managing its debt and liquidity. As of December 31, 2024, Essex had $5.2 billion in fixed-rate public bonds outstanding at an average interest rate of 3.4%. The company maintained two unsecured lines of credit totaling $1.28 billion, with a portion of these funds available for future acquisitions and developments. The company’s credit ratings from Moody’s and S&P were Baa1/Stable and BBB+/Stable, respectively, indicating a strong financial position.

Looking ahead, Essex anticipates continued growth in its revenues and occupancy rates, supported by a favorable supply-demand dynamic in its key markets. The company expects new housing supply growth to remain at 1% or less of the total housing stock in its operating regions, which should help sustain rental demand. However, management acknowledged potential risks, including economic fluctuations, interest rate changes, and regulatory challenges, which could impact future performance. The company remains committed to its strategic focus on high-quality apartment communities in supply-constrained markets, positioning itself for long-term success.