Essex Property Trust, Inc. (ESS) — Fundamental Analysis & Key Financial Ratios

Kaplio's reading: Essex Property Trust, Inc.

Updated on October 27, 2026 · accounts published on July 29, 2026

Reading of October 26, 2026: A growing REIT with a well-covered dividend that keeps rising

Essex Property Trust trades at 13.8× fiscal 2025 FFO, just below the 15× to 20× range seen as healthy for REITs, and FFO covers its dividend 2.0×.

• Is Essex Property Trust expensive or cheap? At 13.8× fiscal 2025 FFO, Essex Property Trust trades just below the 15× to 20× range considered healthy for REITs.
• How is the business doing? Revenue grew 7 % over the last 12 months, but the operating margin fell to 29 % from a record 44 % in fiscal 2025.
• How strong is the balance sheet? Net debt is 4.4× fiscal 2025 EBITDA, under the 5× seen as excellent for REITs, and the dividend has risen 11 years in a row.
• What to expect from the next earnings? Analysts expect EPS of $1.47 in results due October 27, 2026, after a 34 % miss in the quarter reported in July.
• Does FFO cover the dividend, and at what multiple does the stock trade? FFO covered the dividend 2.0× in fiscal 2025, well above the 1.1× healthy floor, and the stock trades at 13.8× FFO.

Is Essex Property Trust expensive or cheap?

For a REIT, the first multiple to check is price to FFO. At 13.8× fiscal 2025 FFO, Essex Property Trust sits just under the 15× to 20× band usually considered healthy, a borderline reading that leans cheap. Price to book is 3.3× and the free cash flow yield is 7.6 % over the last 12 months, which suggests the market is not paying a rich price for its cash generation. Over the past decade the P/E has ranged from 21.6× to 65.3×, so wide a range that it says more about depreciation than about value. The stock is up 7 % over 12 months and sits 8 % below its 52-week high of $298.33.

How is the business doing?

Growth is steady: revenue rose 7 % over the last 12 months. The margins are less tidy. The operating margin reached 44 % in fiscal 2025, the highest of the last 12 fiscal years, yet over the last 12 months it stands at 29 %, below the 2014-2025 average of 34 %. The record year looks like an exception, so the trailing figure is the one to watch: if it stays below its decade average, profitability is slipping even as revenue grows. FFO per share was $19.97 in fiscal 2025, a better gauge for a REIT than reported earnings.

How strong is the balance sheet?

The debt is substantial but stays within the limits that apply to REITs, which finance property largely with borrowed money. In fiscal 2025 debt equals 53 % of assets, below the 60 % ceiling considered healthy, and net debt stands at 4.4× EBITDA, inside the 5× mark considered excellent. Debt to equity is 1.3× over the last 12 months. The dividend looks solid: the yield is 3.8 % over the last 12 months, payouts took 61 % of operating cash flow in fiscal 2025, well under the 80 % limit, and the dividend per share has risen for 11 consecutive fiscal years.

What to expect from the next earnings?

Results are due on October 27, 2026, with analysts expecting EPS of $1.47. The last report, on July 29, 2026, showed EPS of $0.97 against $1.46 expected, a 34 % miss, although Essex Property Trust has beaten EPS estimates in 6 of the last 8 quarters. Expectations have barely moved: the 2026 EPS consensus slipped 1.0 % in the last 30 days, from $5.62 to $5.56, and the revenue consensus is almost unchanged. Of 47 analysts, 18 rate the stock a buy, 25 a hold and 4 a sell. For a REIT, FFO in the release will say more than EPS.

Does FFO cover the dividend, and at what multiple does the stock trade?

In a REIT, EPS and the P/E mislead, because depreciation on buildings cuts reported profit even when the properties hold their value. That is why the sector looks at FFO, which adds that depreciation back. On that measure Essex Property Trust is comfortable: FFO of $19.97 per share in fiscal 2025 covered the dividend 2.0×, against a healthy floor of 1.1×, which leaves a wide cushion. At 13.8× that FFO, the multiple sits just below the 15× to 20× range considered healthy. Strong coverage paired with a modest multiple is what stands out in the data.

How this was prepared: the data comes from companies' official filings, collected by a professional provider, and from Kaplio's analysis engine (trailing-12-month ratios, 10 years of history and sector medians computed across US-listed companies). The text is written from that data alone, every figure is checked against it before publication, and it is reviewed when the company reports results. This is not investment advice.