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Essex Announces Third Quarter 2019 Results

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Essex Property Trust, Inc. (NYSE:ESS) (the "Company") announced today its third quarter 2019 earnings results and related business activities.

Net Income, Funds from Operations ("FFO"), and Core FFO per diluted share for the quarter ended September 30, 2019 are detailed below.

 

Three Months Ended

September 30,

 

Nine Months Ended

September 30,

 

 

%

%

 

2019

2018

Change

2019

2018

Change

Per Diluted Share

 

 

 

 

 

 

 Net Income

$1.51

$1.22

23.8%

$4.71

$4.12

14.3%

 Total FFO

$3.50

$3.22

8.7%

$10.19

$9.74

4.6%

 Core FFO

$3.35

$3.15

6.3%

$9.92

$9.38

5.8%

 

 

 

 

 

 

 

Third Quarter 2019 Highlights:

  • Reported Net Income per diluted share for the third quarter of 2019 of $1.51, compared to $1.22 in the third quarter of 2018.
  • Grew Core FFO per diluted share by 6.3% compared to the third quarter of 2018, exceeding the midpoint of the guidance range by $0.04.
  • Achieved both same-property gross revenue and net operating income ("NOI") growth of 3.1% compared to the third quarter of 2018.
  • Acquired three apartment communities for a total contract price of $414.7 million.
  • Increased full-year Net Income per diluted share guidance range to $6.04 to $6.14. Provided Net Income guidance range for the fourth quarter of $1.33 to $1.43 per diluted share.
  • Increased full-year Total FFO per diluted share guidance range to $13.50 to $13.60. Provided Total FFO guidance range for the fourth quarter of $3.31 to $3.41 per diluted share
  • Raised full-year Core FFO per diluted share guidance by $0.05 per share at the midpoint to a range of $13.28 to $13.38. Provided Core FFO guidance range for the fourth quarter of $3.36 to $3.46 per diluted share.

"We are pleased to report another quarter of healthy growth resulting in Core FFO at the top end of our guidance range. As a result, we are increasing our full-year Core FFO per share guidance midpoint for the third time this year. The dramatic reduction in our cost of capital since January has allowed us to exceed the high-end of our acquisition targets and we remain on the hunt for accretive opportunities. Looking forward, our supply-constrained West Coast markets continue to add jobs and grow incomes at a sufficient pace to maintain market rent growth near their long term averages," commented Michael Schall, President and CEO of the Company.

SAME-PROPERTY OPERATIONS

Same-property operating results exclude any properties that are not comparable for the periods presented. The table below illustrates the percentage change in same-property gross revenues for the quarter ended September 30, 2019 compared to the quarter ended September 30, 2018, and the sequential percentage change for the quarter ended September 30, 2019 compared to the quarter ended June 30, 2019, by submarket for the Company:

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Q3 2019 vs.

Q3 2018

 

Q3 2019 vs.

Q2 2019

 

% of Total

 

Gross

Revenues

 

Gross

Revenues

 

Q3 2019

Revenues

Southern California

 

Los Angeles County

 

2.7%

 

0.2%

 

18.9%

Orange County

 

1.8%

 

0.0%

 

10.8%

San Diego County

 

2.3%

 

0.3%

 

8.5%

Ventura County and Other

 

3.5%

 

0.9%

 

4.9%

Total Southern California

 

2.5%

 

0.3%

 

43.1%

Northern California

 

 

Santa Clara County

 

3.6%

 

0.6%

 

18.8%

Alameda County

 

3.4%

 

1.4%

 

6.9%

San Mateo County

 

2.5%

 

-0.2%

 

5.0%

Contra Costa County

 

2.9%

 

0.8%

 

4.8%

San Francisco

 

5.2%

 

0.3%

 

3.4%

Total Northern California

 

3.5%

 

0.6%

 

38.9%

Seattle Metro

 

4.1%

 

1.3%

 

18.0%

Same-Property Portfolio

 

3.1%

 

0.6%

 

100.0%