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Essex Property Trust Inc ESS

Morningstar Rating
$234.37 +2.97 (1.28%)
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Company Report

Despite Short-Term Slowdown in Rent Growth, Essex Should See Solid Long-Term Internal Growth

Essex Property Trust is the most geographically focused multifamily real estate investment trust, with a portfolio of high-quality multifamily buildings positioned entirely on the West Coast: Los Angeles, San Diego, San Francisco, San Jose, and Seattle. These markets should experience strong, long-term demographic trends like job growth, income growth, decreasing homeownership rates, high relative cost of single-family housing, and attractive urban centers that draw younger populations, which allows the company to maintain high occupancies and drive rent growth above the US average. Long term we expect the company's markets to see job and income growth above national average, which should continue to support above average net operating income growth, though some of these markets are experiencing near-term slowdowns. The company's solid internal operating outlook should be supplemented by its small but opportunistic development pipeline to create value for shareholders.

Price vs Fair Value

ESS is trading at a 19% discount.
Price
$234.37
Fair Value
$628.00
Uncertainty
Medium
1-Star Price
$464.60
5-Star Price
$687.00
Economic Moat
Bftgz
Capital Allocation
Wtmdpyrl

Bulls Say, Bears Say

Bulls

Essex’s portfolio benefits from strong job and income growth and limited supply growth in its attractive West Coast markets.

Bears

The pandemic has made millennials consider alternatives to urban apartments, including suburban apartments and single-family homeownership. This demographic has put off many major adult milestones but may finally be making the shift toward the suburbs.

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News

Trading Information

Previous Close Price
$231.40
Day Range
$226.84234.47
52-Week Range
$195.03252.85
Bid/Ask
$204.62 / $449.80
Market Cap
$15.05 Bil
Volume/Avg
455,595 / 455,912

Key Statistics

Price/Earnings (Normalized)
41.72
Price/Sales
9.02
Dividend Yield (Trailing)
3.94%
Dividend Yield (Forward)
4.18%
Total Yield
4.58%

Company Profile

Essex Property Trust owns a portfolio of 252 apartment communities with over 62,000 units and is developing another property with 264 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.
Sector
Real Estate
Industry
REIT - Residential
Stock Style Box
Mid Core
Total Number of Employees
1,750

Competitors

Valuation

Metric
ESS
AIRC
EQR
Price/Earnings (Normalized)
41.727.1039.05
Price/Book Value
2.771.902.09
Price/Sales
9.025.658.26
Price/Cash Flow
15.3411.6715.51
Price/Earnings
ESS
AIRC
EQR

Financial Strength

Metric
ESS
AIRC
EQR
Quick Ratio
1.850.460.06
Current Ratio
1.880.530.17
Interest Coverage
2.816.274.16
Quick Ratio
ESS
AIRC
EQR

Profitability

Metric
ESS
AIRC
EQR
Return on Assets (Normalized)
3.10%10.92%4.44%
Return on Equity (Normalized)
6.87%31.64%8.07%
Return on Invested Capital (Normalized)
4.33%13.79%5.89%
Return on Assets
ESS
AIRC
EQR
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REIT - Residential Industry Comparables

Ticker
Name
Morningstar Rating for Stocks
Economic Moat
Market Cap
AVB
AvalonBay Communities IncYmf$25.3 Bil
EQR
Equity ResidentialByljp$23.1 Bil
INVH
Invitation Homes IncXdnp$21.1 Bil
SUI
Sun Communities IncWgkw$16.5 Bil
MAA
Mid-America Apartment Communities IncTvbt$14.9 Bil
AMH
American Homes 4 Rent Class AMkbj$13.5 Bil
ELS
Equity Lifestyle Properties IncSkvm$12.5 Bil
UDR
UDR IncFhmlj$11.8 Bil
AIRC
Apartment Income REIT Corp Class AQvjc$4.5 Bil

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