Essex Property Trust, Inc. (ESS) Q3 2025 Earnings Call

Investor webinar replay

Replay transcript excerpt

Good day and welcome to Essex Property Trust's third 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 risks 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. Welcome to Essex's third quarter earnings call. Our pack will follow with prepared remarks and Ryland Burns is here for Q&A. We are pleased to report solid results for the third quarter, highlighted by a $0.03 FFO outperformance, and an increase to our core FFO full-year guidance. Today, I will cover key takeaways from the quarter, my high-level outlook for 2026, and provide an update on the transaction markets. Starting with operations, our portfolio performed well amid a backdrop of muted job growth across the U.S. and heightened policy uncertainty. Year-to-date through the third quarter, we generated a blended lease rate growth of 3% on all leases, and 2.7% unlike term leases. This is a proven example of the competitive advantage of our low supply markets. As expected, Northern California is our best performing region and the fundamental backdrop remains favorable with forward-looking supply continuing to decline, comparable to a level in the years following the Gr...