Why did ESS's Q3 2024 results surprise positively?

Essex Property Trust, Inc. (ESS) likely experienced positive surprises in its Q3 2024 results due to several key factors:

1. **Strong Revenue Growth**: Total revenues for the quarter exceeded expectations, with ESS reporting $442.36 million, surpassing the Zacks Consensus Estimate of $433.26 million. This indicates a robust performance in leasing operations and rental income.
2. **Beat on Core FFO**: The company's core FFO per share was $3.94, which not only beat the Zacks Consensus Estimate of $3.84 but also reflected a 4.5% improvement year-over-year. This suggests efficient operational management and a healthy bottom line.
3. **Improved Occupancy Rates**: Despite market shifts and a complex environment, ESS maintained strong occupancy rates in its core markets. This is a testament to the company's effective property management and its ability to navigate challenging market conditions.
4. **Strategic Market Focus**: ESS's focus on high-demand markets such as Southern California and the San Francisco Bay Area has likely contributed to its positive results. These regions tend to have stable rental demand and higher income growth, which supports steady revenue growth.
5. **Acquisitions and Development**: The company's ongoing efforts to acquire, develop, and manage high-quality residential properties have likely contributed to its financial success. Strategic expansions and upgrades to its property portfolio can lead to increased rental income and long-term value.

In summary, ESS's Q3 2024 results surprised positively due to strong revenue growth, efficient operational management, strategic market focus, and effective property management, which collectively contributed to the company's financial success.