Essex Property Trust, Inc. (ESS) Q2 2025 Earnings Call

Investor webinar replay

Replay transcript excerpt

Good day and welcome to Essex Property Trust second quarter 2025 earnings call. As a reminder, today's conference call is being recorded. Statements made on this conference call regarding expected operating results and other future events are forward-looking statements that involve risk and uncertainties. Forward-looking statements are made based on current expectations, assumptions and beliefs as well as information available to the company at this time. A number of factors could cause actual results to differ materially from those anticipated. Further information about these risks can be found on the company's filings with the SEC. It is now my pleasure to introduce your host, Ms. Angela Kleiman, President and Chief Executive Officer for Essex Property Trust. Thank you, Ms. Kleiman. You may begin. Good morning. Welcome to Essex second quarter earnings call. BARPAC will follow with prepared remarks, and Rylan Burns is here for Q&A. Today, I will cover key takeaways from the quarter, our outlook for the second half of the year, and provide an update on the transaction market. We are pleased to report solid results for the first half of 2025, highlighted by a $0.07 core FFO outperformance in the second quarter. and an increase to same property and core FFO guidance for the year. Starting with operations highlights, second quarter performed on plan with 3% blended rate growth for the same store portfolio. Northern California and Seattle led with 3.8 and 3.7% blended rate growth respectively, while Southern California lagged with 2% blended rate growth, primarily because of Los Angeles. On a more granular level, the suburban markets of San Mateo and San Jose were notable outperformers with 5.6 and 4.4% blended rate growth, respectively. We attribute the outperformance t...