Essex Property Trust Inc. ESS reported second-quarter 2022 core funds from operations (FFO) per share of $3.68, beating the Zacks Consensus Estimate of $3.55. The figure also surpassed the high-end of the company’s guidance range and improved 21.1% from the year-ago quarter.Management noted that the quarterly results marked the second-largest year-over-year core FFO growth in the company’s history. Results highlighted better-than-expected operating results and lower property taxes in Washington. Following better-than-expected second-quarter results, this residential REIT also raised the full-year 2022 guidance for the third time this year.Total revenues of $400 million exceeded the Zacks Consensus Estimate of $392.9 million. The figure also increased 14% year over year.Michael J. Schall, the president and CEO of Essex Property, noted, “Return to office mandates at many of the large technology companies became a catalyst for strong housing demand in our Northern California and Seattle markets, which now lead the Essex portfolio with year-to-date net effective rent growth of 18.1% and 19.9%, respectively.”Quarter in DetailDuring the April-June period, Essex Property’s same-property revenues increased 12.7% from the prior-year period and operating expenses rose 3.8% year over year. Consequently, the same-property net operating income (“NOI”) increased 16.7% year over year.However, financial occupancies of 96.1% in the second quarter contracted 20 basis points (bps) sequentially and 50 bps year over year.During the reported quarter, Phase IV (the final phase) of ESS’ Station Park Green development, which is a 107-unit apartment home community in San Mateo, CA, reached stabilization.Balance Sheet and Liquidity PositionEssex Property exited the second quarter of 2022 with cash and cash equivalents, including restricted cash, of $48.5 million, down from the $58.6 million recorded at the end of 2021.Essex Property had $1.3 billion in liquidity through the undrawn capacity on its unsecured credit facilities, cash and marketable securities as of Jul 22, 2022.During the second quarter, Essex Property repurchased 218,960 shares of its common stock aggregating $60.8 million, including commissions, at an average price of $277.81 per share. ESS had $153.6 million in purchase authority remaining under its stock repurchase plan as of Jun 30, 2022.GuidanceFor the third quarter of 2022, the company projects core FFO per share in the range of $3.60-$3.70. The Zacks Consensus Estimate for the same is $3.59.For full-year 2022, the company raised the core FFO per share guidance to the $14.35-$14.55 band from the $14.00-$14.32 band guided earlier, suggesting a 29-cent-per-share increase at the midpoint to $14.45. The Zacks Consensus Estimate for the same is currently pegged at $14.19.ESS projects same-property gross revenue growth on a cash basis in the range of 10.0-10.6% for 2022, indicating a 0.7% increase from the prior guidance at the midpoint. Operating expenses are now expected to grow 3.0-3.5%, suggesting a 0.8% decline at the midpoint due to favorable property tax assessments in Washington. NOI is projected to expand in the range of 13.0-14.0%, implying a 1.4% increase at the midpoint.Essex Property currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.Essex Property Trust, Inc. Price, Consensus and EPS Surprise Essex Property Trust, Inc. price-consensus-eps-surprise-chart | Essex Property Trust, Inc. QuotePerformance of Another Residential REITEquity Residential’s EQR second-quarter 2022 normalized FFO per share of 89 cents outpaced the Zacks Consensus Estimate of 85 cents. The rental income of $687 million also exceeded the consensus mark of $670.6 million. Results reflected strong physical occupancy and sustained growth in pricing power. Equity Residential also benefited from the favorable real estate tax and payroll expenses. EQR raised its full-year guidance for same-store revenues, NOI and normalized FFO per share. Management noted that robust demand and continued strong cost controls have driven guidance improvements.Upcoming ReleasesWe now look forward to the earnings releases of other residential REITs — AvalonBay Communities, Inc. AVB and Mid-America Apartment Communities, Inc. MAA — scheduled for today after the closing bell.Note: Anything related to earnings presented in this write-up represent funds from operations (FFO) — a widely used metric to gauge the performance of REITs. Just Released: Zacks Top 10 Stocks for 2022 In addition to the investment ideas discussed above, would you like to know about our 10 top picks for the entirety of 2022? From inception in 2012 through 2021, the Zacks Top 10 Stocks portfolios gained an impressive +1,001.2% versus the S&P 500’s +348.7%. Now our Director of Research has combed through 4,000 companies covered by the Zacks Rank and has handpicked the best 10 tickers to buy and hold. Don’t miss your chance to get in…because the sooner you do, the more upside you stand to grab.See Stocks Now >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report AvalonBay Communities, Inc. (AVB): Free Stock Analysis Report Equity Residential (EQR): Free Stock Analysis Report MidAmerica Apartment Communities, Inc. (MAA): Free Stock Analysis Report Essex Property Trust, Inc. (ESS): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research