01—Abstract
Summary
Summary of the 10-K filed February 20, 2026. Cited figures are marked; the original filing is the authoritative source.
Essex Property Trust (ESS) closed 2025 with total revenues of $1.887 billiona (up 6.4% on rental and other property revenue) and net income available to common stockholders of $669.7 million, down from $741.5 million in 2024 as 2024 benefited from a $210.6 million remeasurement gain and larger legal settlement gains.
The more relevant earnings signal is operating: Same-Property revenues rose 3.3%, Same-Property NOI grew to $1.150 billionb (up 3.2%), and Core FFO per diluted share was $15.94, up from $15.60 in 2024. Average rental rates on the same-property portfolio increased 2.3%, and financial occupancy held steady at 96.2%. Non-same-property revenue rose 35.2% on $829.5 million of acquisitions and the consolidation of Artizan and TENTEN Downtown, while dispositions of $563.8 million (including Highridge, Essex Skyline, The Grand and Fourth & U) generated $299.5 million of gains.
The balance sheet remains investment grade (Baa1/BBB+) with total assets of $13.16 billionc and a 2025 debt stack dominated by unsecured bonds. Management refinanced aggressively: a $400 million 5.375% 2035 note and a $350 million 4.875% 2036 note were issued, a $300 million term loan was added, and the $500 million April 2025 maturity was repaid. Leverage has risen modestly, with unsecured debt up to $6.0 billion from $5.5 billion, and interest expense increased 9.7% to $258.4 million.
Investors should note the upcoming $450 milliond 3.375% notes due April 2026, the 2026 expiry of the term loan swap, and the $900 million ATM program, of which 52,600 shares are under forward sale agreements at about $314 per share to be settled by September 2026. Key risk factors center on West Coast concentration in Southern California, Northern California and Seattle, rising California property taxes and Prop 13 uncertainty, rent-control and eviction-moratoria exposure, and pending antitrust class actions tied to RealPage revenue management software.
Management reports that 2026 new housing supply in each region is projected below 1% of housing stock, a supportive backdrop for rent growth. The company also self-insures earthquake losses through its captive, PWI, which holds $106.7 million in cash and securities.
02—Key points
Key Highlights
- Same-Property revenue grew 3.3% to $1.64 billion, and Same-Property NOI rose to $1.15 billion, with average rental rates up 2.3% to $2,699 per apartment home.
- Core FFO per diluted share increased to $15.94 in 2025 from $15.60 in 2024, while FFO per share was $15.98 versus $15.99, a roughly flat result on a reported basis.
- Net income available to common stockholders fell to $669.7 million ($10.40 per share) from $741.5 million ($11.54 diluted) in 2024, mainly because 2024 included a $210.6 million remeasurement gain.
- Acquisitions totaled $829.5 million for 1,523 apartment homes, and dispositions raised $563.8 million for 1,230 homes, with $299.5 million in gains on sale recorded in 2025.
- Unsecured debt increased to $6.0 billion; the company issued $400 million of 5.375% 2035 notes and $350 million of 4.875% 2036 notes, and the $450 million 3.375% notes due April 2026 remain to be refinanced.
- Investment-grade ratings of Baa1 (Moody's) and BBB+ (S&P) are maintained, with $1.5 billion of revolving credit capacity undrawn at year-end and $750 million of commercial paper capacity.
- The dividend was $2.57 per share for Q4 2025, paid January 15, 2026, and full-year 2025 dividends declared totaled $10.28 per share.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in FY2025, Essex Property Trust, Inc. kept $0.35.
- Revenue$1.89B100.0%
- Cost of revenue−$568.4M30.1%
- Gross profit$1.32B69.9%
- Operating costs−$419.7M22.2%
- Operating income$899.3M47.6%
- Interest, other & tax−$229.7M12.2%
- Net income$669.7M35.5%
Where FY2025 revenue went
$1.89B- Net income: $669.7M, 35% of revenue
- Cost of revenue: $568.4M, 30% of revenue
- Operating costs: $419.7M, 22% of revenue
- Interest, other & tax: $229.7M, 12% of revenue
Kept 35% as net incomeInterest, other & tax $229.7M · 12%
Full revenue history →04—Financials
Financial Highlights
Figures from 10-KFY2025filed February 20, 2026Financial Statements
FY2025 against FY2024
| Line item | FY2025FY2024 | Change |
|---|---|---|
| Revenue | $1.89B$1.77B | +6.4% |
| Gross Profit | $1.32B$1.24B | +6.1% |
| Operating Expenses | $1.29B$1.25B | +3.3% |
| Operating Income | $899.32M$703.10M | +27.9% |
| Net Income | $669.67M$741.52M | −9.7% |
| EPS (Basic) | $10.40$11.55 | −10.0% |
| EPS (Diluted) | $10.40$11.54 | −9.9% |
| Shares Outstanding (Basic) | 64.38M64.23M | +0.2% |
| Shares Outstanding (Diluted) | 64.40M64.25M | +0.2% |
05—Questions
Frequently Asked Questions
Did Essex's earnings improve in 2025?
On a GAAP basis, net income available to common stockholders declined to $669.7 million from $741.5 million, largely because 2024 included a $210.6 million gain on remeasurement of co-investments. On an operating basis, the picture improved: Core FFO per diluted share rose to $15.94 from $15.60, and Same-Property NOI grew 3.2% to $1.15 billion.
How much debt does Essex carry, and how is it structured?
Unsecured debt totaled $6.0 billion at year-end 2025, mostly fixed-rate public bonds with a 3.7% weighted average rate. Mortgage notes payable were $784 million, and the company had no balance drawn on its $1.5 billion unsecured line of credit. Total fixed-rate debt was $6.0 billion, and the $858.8 million of variable-rate debt includes $258.8 million of tax-exempt bonds.
What are the near-term refinancing and capital needs?
The most pressing item is the $450 million 3.375% senior notes due April 2026, which management intends to fund partly from the December 2025 $350 million 4.875% notes offering and commercial paper or credit facility borrowings. Scheduled mortgage principal of $99 million and $548 million of fixed-rate debt also mature in 2026, and the term loan's interest rate swap terminates in October 2026.
Is Essex still growing its portfolio, and how is it funded?
Essex acquired about $830 million of communities in 2025, funded largely with debt and disposition proceeds, and it has $900 million of ATM equity capacity remaining. Forward sale agreements for 52,600 shares at about $314 per share are outstanding and settle by September 2026, which would provide equity funding if the company chooses to settle them. The company also has $328 million of total co-investment and development commitments, with $259 million unfunded.
What are the main risks for ESS investors?
Key risks include geographic concentration in high-cost West Coast markets, potential rent control and eviction-moratorium laws, rising California property taxes under possible Prop 13 changes, and class action lawsuits tied to RealPage revenue management software. The company also faces interest-rate and refinancing risk on its growing unsecured debt, as well as earthquake exposure that is only partly covered by insurance and its captive subsidiary PWI.
06—Continue