ESS Stock Overview
Essex Property Trust, Inc., an S&P 500 company, is a fully integrated real estate investment trust (REIT) that acquires, develops, redevelops, and manages multifamily residential properties in selected West Coast markets.
Essex Property Trust Competitors
Price History & Performance
|Historical stock prices|
|Current Share Price||US$242.23|
|52 Week High||US$363.36|
|52 Week Low||US$236.01|
|1 Month Change||-9.62%|
|3 Month Change||-9.19%|
|1 Year Change||-25.73%|
|3 Year Change||-26.69%|
|5 Year Change||-5.75%|
|Change since IPO||1,150.22%|
Recent News & Updates
Essex Property Trust declares $2.20 dividend
Essex Property Trust (NYSE:ESS) declares $2.20/share quarterly dividend, in line with previous. Forward yield 3.37% Payable Oct. 14; for shareholders of record Sept. 30; ex-div Sept. 29. See ESS Dividend Scorecard, Yield Chart, & Dividend Growth.
Essex Property Trust: Another Beat-And-Raise Quarter
Back in January, I expected Apartment REITs like Essex Property Trust to outperform the REIT average. Thanks to the mad rush to high yield brought on by inflation, that hasn't happened. Essex Property Trust has been typical of Apartment REITs in its total return. The price movement, however, stands in sharp contrast to the company's performance. Essex just beat expectations and raised guidance for the second straight quarter. This article examines growth, balance sheet, dividend, and valuation metrics for this Cadillac of apartment REITs. Back in January, I expected apartment real estate investment trusts ("REITs") to outperform the REIT average. Thanks to the mad rush to high yield brought on by inflation, that hasn't happened. According to Hoya Capital Income Builder, the Apartment REIT sector's total return of (-14.62)% YTD slightly trails the Equity REIT Index of (-12.54)%. Hoya Capital Income Builder Essex Property Trust, Inc. (ESS) has been typical of Apartment REITs in its total return, losing (-14.0)% thus far this year. ESS Total Return Level data by YCharts The price movement, however, stands in sharp contrast to the company's performance. Essex just posted its second straight beat-and-raise quarter. This article examines growth, balance sheet, dividend, and valuation metrics for this Cadillac of apartment REITs. Meet the company Founded in 1971 and headquartered in San Mateo, California, Essex Property Trust owns 253 apartment communities in 8 major West Coast markets, totaling about 62,000 units. The company divides these into three regions: Northern California (85 communities) Southern California (104 communities), and Seattle Metro (59 communities). In a recent article, I went into considerable detail about this company. For the sake of this article, suffice it to say Essex deals in high-end apartments (average rent near $2800 per month), and is benefitting from the return to office of high-tech workers displaced by the pandemic. Company investor presentation The West Coast states of California, Oregon, and Washington have higher-than-average GDP and job growth. At the same time, restricted supply due to high barriers to entry and demanding regulations drives up the rent on existing apartments. Still, purchasing a house on the West Coast costs more than double the cost of renting. Company investor presentation Essex is riding a wave of superior job growth in its West Coast markets, that started in the latter half of 2021, and continues to this day. Company investor presentation This is also reflected in the massive increase in job openings in the top 10 tech companies California and Washington. Prior to the pandemic, this was running between 25,000 and 30,000. COVID cut that to less than 20,000. By May of this year, it was over 50,000. Company investor presentation Quarterly Results Essex beat expectations and raised guidance in Q1 2022. Here are the highlights for Q2, reported July 26: FFO was up 1.3% QoQ (quarter-over-quarter), and 2.5% YoY. Core FFO was up a whopping 21.1% QoQ and 15.4% YoY. Net income declined 13.0% QoQ, and 44.3% YoY, mostly because of unrealized losses on "non-core co-investments" the company made. Company Q2 2022 earnings release Same-property revenues rose 4.8% QoQ and 12.7% YoY Same-property NOI (net operating income) rose 8.0% QoQ, and 16.7% YoY Same-store gains were shared by all three Essex regions, but the biggest gain was in the biggest segment, Southern California, at 14.5%. Company Q2 earnings release Each and every one of Essex' markets saw significant same-store gains, but they were heaviest in Los Angeles County, with 18.8%. Company Q2 earnings release This happened in spite of slightly lower occupancy. Company Q2 earnings release That can only mean leasing spreads were very favorable. In fact, net effective rents have increased between 18% and 20% year-to-date, according to CEO Michael Schall, on the earnings call, with Q3 renewals coming in at about 10%. Loss-to-lease stands at 10.3% and growing. The company raised full-year guidance for full-year Core FFO by 2%, to $14.45 at the midpoint. The company also raised full-year guidance for full-year NOI by 1.4%, to 13.5% at the midpoint. It was not a pure beat-and-raise, however, because Essex also lowered its guidance for full-year net income and total FFO, due primarily to the unrealized losses on their investments in Q2. (I would love to know what they invested in, that lost that much money, wouldn't you? Unfortunately, none of the analysts on the earnings call asked that question.) The company also trimmed back their planned acquisitions for H2 2022 by a whopping $275 million (45% decrease), their targeted dispositions by $50 million (25% decrease), and their planned preferred equity redemptions by $25 million (10% decrease). Company Q2 2022 earnings release Essex repurchased 219,000 shares of common stock totaling $60.8 million, at an average of $277.81 per share. (ESS still has $153.6 million in purchase authority remaining, but CFO Barbara Pak said any cash for buying back more shares would come from dispositions only, and those plans have been trimmed back, as shown in the figure above.) Essex completed stabilization of a 107-unit apartment complex in San Mateo. Growth metrics Here are the 3-year growth figures for FFO (funds from operations), TCFO (total cash from operations), and market cap. Metric 2019 2020 2021 2022* 3-year CAGR FFO (millions) $936 $865 $941 $877 -- FFO Growth % -- (-7.6) 8.8 (-6.8) (-2.15)% FFO per share $13.38 $12.82 $12.49 $14.45 -- FFO per share growth % -- (-4.2) (-2.6) 15.7 2.60% TCFO (millions) $919 $803 $905 $1,020 -- TCFO Growth % -- (-12.4) 12.7 12.7 3.54%
|ESS||US REITs||US Market|
Return vs Industry: ESS underperformed the US REITs industry which returned -20.4% over the past year.
Return vs Market: ESS underperformed the US Market which returned -23.2% over the past year.
|ESS Average Weekly Movement||3.2%|
|REITs Industry Average Movement||4.2%|
|Market Average Movement||6.8%|
|10% most volatile stocks in US Market||15.5%|
|10% least volatile stocks in US Market||2.8%|
Stable Share Price: ESS is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 3% a week.
Volatility Over Time: ESS's weekly volatility (3%) has been stable over the past year.
About the Company
Essex Property Trust, Inc., an S&P 500 company, is a fully integrated real estate investment trust (REIT) that acquires, develops, redevelops, and manages multifamily residential properties in selected West Coast markets. Essex currently has ownership interests in 246 apartment communities comprising approximately 60,000 apartment homes with an additional 6 properties in various stages of active development.
Essex Property Trust Fundamentals Summary
|ESS fundamental statistics|
Is ESS overvalued?See Fair Value and valuation analysis
Earnings & Revenue
|ESS income statement (TTM)|
|Cost of Revenue||US$495.56m|
Last Reported Earnings
Jun 30, 2022
Next Earnings Date
|Earnings per share (EPS)||5.92|
|Net Profit Margin||24.01%|
How did ESS perform over the long term?See historical performance and comparison
3.6%Current Dividend Yield
Is ESS undervalued compared to its fair value, analyst forecasts and its price relative to the market?
Valuation Score 5/6
Price-To-Earnings vs Peers
Price-To-Earnings vs Industry
Price-To-Earnings vs Fair Ratio
Below Fair Value
Significantly Below Fair Value
Key Valuation Metric
Which metric is best to use when looking at relative valuation for ESS?
Other financial metrics that can be useful for relative valuation.
|What is ESS's n/a Ratio?|
Price to Earnings Ratio vs Peers
How does ESS's PE Ratio compare to its peers?
|ESS PE Ratio vs Peers|
|Company||PE||Estimated Growth||Market Cap|
MAA Mid-America Apartment Communities
INVH Invitation Homes
AMH American Homes 4 Rent
ESS Essex Property Trust
Price-To-Earnings vs Peers: ESS is good value based on its Price-To-Earnings Ratio (40.9x) compared to the peer average (48.6x).
Price to Earnings Ratio vs Industry
How does ESS's PE Ratio compare vs other companies in the US REITs Industry?
Price-To-Earnings vs Industry: ESS is expensive based on its Price-To-Earnings Ratio (40.9x) compared to the US REITs industry average (25.8x)
Price to Earnings Ratio vs Fair Ratio
What is ESS's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.
|Current PE Ratio||40.9x|
|Fair PE Ratio||46.9x|
Price-To-Earnings vs Fair Ratio: ESS is good value based on its Price-To-Earnings Ratio (40.9x) compared to the estimated Fair Price-To-Earnings Ratio (46.9x).
Share Price vs Fair Value
What is the Fair Price of ESS when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.
Below Fair Value: ESS ($242.23) is trading below our estimate of fair value ($481.25)
Significantly Below Fair Value: ESS is trading below fair value by more than 20%.
Analyst Price Targets
What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?
Analyst Forecast: Target price is more than 20% higher than the current share price and analysts are within a statistically confident range of agreement.
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How is Essex Property Trust forecast to perform in the next 1 to 3 years based on estimates from 16 analysts?
Future Growth Score1/6
Future Growth Score 1/6
Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: ESS's forecast earnings growth (14.8% per year) is above the savings rate (1.9%).
Earnings vs Market: ESS's earnings (14.8% per year) are forecast to grow slower than the US market (14.8% per year).
High Growth Earnings: ESS's earnings are forecast to grow, but not significantly.
Revenue vs Market: ESS's revenue (5% per year) is forecast to grow slower than the US market (7.7% per year).
High Growth Revenue: ESS's revenue (5% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: ESS's Return on Equity is forecast to be low in 3 years time (10.2%).
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How has Essex Property Trust performed over the past 5 years?
Past Performance Score2/6
Past Performance Score 2/6
Growing Profit Margin
Earnings vs Industry
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: ESS has high quality earnings.
Growing Profit Margin: ESS's current net profit margins (24%) are lower than last year (26.8%).
Past Earnings Growth Analysis
Earnings Trend: ESS's earnings have grown by 1.2% per year over the past 5 years.
Accelerating Growth: ESS's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.
Earnings vs Industry: ESS had negative earnings growth (-4.3%) over the past year, making it difficult to compare to the REITs industry average (45.8%).
Return on Equity
High ROE: ESS's Return on Equity (6.8%) is considered low.
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How is Essex Property Trust's financial position?
Financial Health Score0/6
Financial Health Score 0/6
Short Term Liabilities
Long Term Liabilities
Financial Position Analysis
Short Term Liabilities: ESS's short term assets ($287.8M) do not cover its short term liabilities ($438.4M).
Long Term Liabilities: ESS's short term assets ($287.8M) do not cover its long term liabilities ($6.1B).
Debt to Equity History and Analysis
Debt Level: ESS's net debt to equity ratio (98.9%) is considered high.
Reducing Debt: ESS's debt to equity ratio has increased from 87.4% to 99.5% over the past 5 years.
Debt Coverage: ESS's debt is not well covered by operating cash flow (16.4%).
Interest Coverage: ESS's interest payments on its debt are not well covered by EBIT (2.8x coverage).
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What is Essex Property Trust current dividend yield, its reliability and sustainability?
Dividend Score 5/6
Cash Flow Coverage
Current Dividend Yield
Dividend Yield vs Market
|Essex Property Trust Dividend Yield vs Market|
|Company (Essex Property Trust)||3.6%|
|Market Bottom 25% (US)||1.7%|
|Market Top 25% (US)||4.7%|
|Industry Average (REITs)||4.1%|
|Analyst forecast in 3 Years (Essex Property Trust)||3.9%|
Notable Dividend: ESS's dividend (3.63%) is higher than the bottom 25% of dividend payers in the US market (1.67%).
High Dividend: ESS's dividend (3.63%) is low compared to the top 25% of dividend payers in the US market (4.73%).
Stability and Growth of Payments
Stable Dividend: ESS's dividends per share have been stable in the past 10 years.
Growing Dividend: ESS's dividend payments have increased over the past 10 years.
Earnings Payout to Shareholders
Earnings Coverage: With its reasonable payout ratio (57.9%), ESS's dividend payments are covered by earnings.
Cash Payout to Shareholders
Cash Flow Coverage: With its reasonable cash payout ratio (60.1%), ESS's dividend payments are covered by cash flows.
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How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
Mike Schall (65 yo)
Mr. Michael J. Schall, also known as Mike, CPA, has been the Chief Executive Officer and President of Essex Property Trust, Inc., the general partner of Essex Portfolio, L.P. since January 1, 2011. He was...
CEO Compensation Analysis
|Mike Schall's Compensation vs Essex Property Trust Earnings|
|Date||Total Comp.||Salary||Company Earnings|
|Jun 30 2022||n/a||n/a|
|Mar 31 2022||n/a||n/a|
|Dec 31 2021||US$7m||US$900k|
|Sep 30 2021||n/a||n/a|
|Jun 30 2021||n/a||n/a|
|Mar 31 2021||n/a||n/a|
|Dec 31 2020||US$7m||US$900k|
|Sep 30 2020||n/a||n/a|
|Jun 30 2020||n/a||n/a|
|Mar 31 2020||n/a||n/a|
|Dec 31 2019||US$6m||US$800k|
|Sep 30 2019||n/a||n/a|
|Jun 30 2019||n/a||n/a|
|Mar 31 2019||n/a||n/a|
|Dec 31 2018||US$5m||US$800k|
|Sep 30 2018||n/a||n/a|
|Jun 30 2018||n/a||n/a|
|Mar 31 2018||n/a||n/a|
|Dec 31 2017||US$5m||US$700k|
|Sep 30 2017||n/a||n/a|
|Jun 30 2017||n/a||n/a|
|Mar 31 2017||n/a||n/a|
|Dec 31 2016||US$4m||US$650k|
|Sep 30 2016||n/a||n/a|
|Jun 30 2016||n/a||n/a|
|Mar 31 2016||n/a||n/a|
|Dec 31 2015||US$4m||US$550k|
Compensation vs Market: Mike's total compensation ($USD7.18M) is below average for companies of similar size in the US market ($USD13.04M).
Compensation vs Earnings: Mike's compensation has been consistent with company performance over the past year.
Experienced Management: ESS's management team is considered experienced (2.7 years average tenure).
Experienced Board: ESS's board of directors are considered experienced (8.4 years average tenure).
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.
|Owner Type||Number of Shares||Ownership Percentage|
|State or Government||28,391||0.04%|
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
|Ownership||Name||Shares||Current Value||Change %||Portfolio %|
Essex Property Trust, Inc.'s employee growth, exchange listings and data sources
- Name: Essex Property Trust, Inc.
- Ticker: ESS
- Exchange: NYSE
- Founded: 1971
- Industry: Residential REITs
- Sector: Real Estate
- Implied Market Cap: US$16.326b
- Market Cap: US$15.775b
- Shares outstanding: 67.40m
- Website: https://www.essexapartmenthomes.com
Number of Employees
- Essex Property Trust, Inc.
- 1100 Park Place
- Suite 200
- San Mateo
- United States
|Ticker||Exchange||Primary Security||Security Type||Country||Currency||Listed on|
|ESS||NYSE (New York Stock Exchange)||Yes||Common Stock||US||USD||Jun 1994|
|EXP||DB (Deutsche Boerse AG)||Yes||Common Stock||DE||EUR||Jun 1994|
|EXP||XTRA (XETRA Trading Platform)||Yes||Common Stock||DE||EUR||Jun 1994|
|0IIR||LSE (London Stock Exchange)||Yes||Common Stock||GB||USD||Jun 1994|
|E1SS34||BOVESPA (Bolsa de Valores de Sao Paulo)||BDR EACH 10 REPR 1 COM||BR||BRL||Jan 2020|
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2022/10/01 00:00|
|End of Day Share Price||2022/09/30 00:00|
Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.