Skip to Content

Essex Property Trust Inc ESS

Rating as of

Morningstar’s Analysis

Valuation
Currency in USD
Is it the right time to buy or sell?
Find out with Morningstar Premium
Is it the right time to buy or sell?
Find out with Morningstar Premium

1-Star Price

PREMIUM

5-Star Price

PREMIUM

Economic Moat

PREMIUM

Capital Allocation

PREMIUM

Essex Property Trust Beats Our Expectations, Though San Francisco Has Been a Drag on Performance

Kevin Brown Equity Analyst

Analyst Note

| Kevin Brown |

Essex Property Trust reported second-quarter results that were slightly ahead of our expectations, though we don't see anything that would materially affect our $270 fair value estimate for the no-moat company. Same-store occupancy fell 10 basis points sequentially to 96.6% in the second quarter, though that is up 170 basis points from the second quarter of 2020. However, rental rates continue to decline, with a 3.6% year-over-year drop in the quarter, leading to a same-store revenue decline of 3.0%. However, Essex did a good job controlling operating expenses with the same-store figure falling 0.2% year over year as maintenance and repair expenses falling 10.1% to a more normal level for the company. As a result, same-store net operating income declined only 4.2% in the second quarter, which is better than our estimate of a 6.4% decline. Essex reported a similar 3.8% year-over-year decline to core funds from operations, which came in at $3.04 in the second quarter.

Read Full Analysis

Company Profile

Business Description

Essex Property Trust owns a portfolio of 250 apartment communities with over 60,000 units and is developing three additional properties with 571 units. The company focuses on owning large, high-quality properties on the West Coast in the urban and suburban submarkets of Southern California, Northern California, and Seattle.

Contact
1100 Park Place, Suite 200
San Mateo, CA, 94403
T +1 650 655-7800
Sector Real Estate
Industry REIT - Residential
Most Recent Earnings Jun 30, 2021
Fiscal Year End Dec 31, 2020
Stock Type Hard Assets
Employees 1,799