Essex Property Trust (NYSE:ESS) Stock, Quote.Headers.trade-ideas

Essex Property Trust

Essex Property Trust owns a portfolio of 254 apartment communities with over 62,000 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.

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Mid-America Apartment (NYSE: MAA) is poised to benefit from its well-diversified Sun Belt-focused portfolio. The prospects of its redevelopment program and progress in technology measures are likely to drive margin expansion.

Solid Demand Boosts Mid-America Apartment Despite Supply Woes

Wealthy Americans Are Opting To Rent Instead Of Buy: 7 Reasons Why Buying A House Is A Lousy Investment According To These 3 Experts

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Initiation

INVH

Goldman Sachs analyst initiated coverage of multifamily and single-family rental REITs with Buy ratings and price targets ranging from $46-$318, citing favorable growth environment and strong demand. UDR was the only stock rated Sell with a price target of $42.

Multifamily REITs Set For Revenue Boost As Supply Pressures Ease, Says Goldman Sachs

Small Cap

Shares of Essex Property Trust, Inc. (NYSE: ESS) have rallied 23.1% in the past six months, outperforming the industry&#39;s growth of 16.2%.

Essex Property Rises 23.1% in 6 Months: Will the Trend Last?

Essex Property Trust Inc

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BANGCHAK SRIRACHA PCL by BANGCHAK SRIRACHA PUB CO LTD.

ESS Tech Inc

ESSA Pharma Inc

ESSENDANT ORD

ESSENT GROUP ORD

ESSENTRA ORD

ESSEX PROPERTY REIT ORD

ESSILORLUXOTTICA ORD

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Essential Metals Ltd

Essential Properties Realty Trust, Inc. Common Stock

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Essential Utilities Inc

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Essentra PLC

ESSILOR LXTTCA UNSP/ADR by EssilorLuxottica

Essilorluxottica

ESSITY AKTIEBOLAG ORD by Essity Aktiebolag Publ

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B of A Securities analyst Joshua Dennerlein downgrades Essex Property Trust (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ESS#NYSE">ESS</a>) from Buy to Neutral and raises the price target from $307 to $321.

Downgrades

B of A Securities Downgrades Essex Property Trust to Neutral, Raises Price Target to $321

Scotiabank analyst Nicholas Yulico maintains Essex Property Trust (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ESS#NYSE">ESS</a>) with a Sector Outperform and raises the price target from $309 to $329.

Scotiabank Maintains Sector Outperform on Essex Property Trust, Raises Price Target to $329

Evercore ISI Group analyst Steve Sakwa maintains Essex Property Trust (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ESS#NYSE">ESS</a>) with a In-Line and raises the price target from $283 to $287.

Evercore ISI Group Maintains In-Line on Essex Property Trust, Raises Price Target to $287

JP Morgan analyst Anthony Paolone maintains Essex Property Trust (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ESS#NYSE">ESS</a>) with a Neutral and raises the price target from $265 to $297.

JP Morgan Maintains Neutral on Essex Property Trust, Raises Price Target to $297

Mid-America Apartment (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/maa#NYSE">MAA</a>) is poised to benefit from its well-diversified Sun Belt-focused portfolio. The prospects of its redevelopment program and progress in technology measures are likely to drive margin expansion. A healthy balance sheet will support its growth endeavors despite an elevated supply of rental units and a high interest rate environment.
<h2>What&#39;s Aiding MAA?</h2>
Sunbelt-Focused Portfolio: MAA&#39;s portfolio is set to gain from healthy operating fundamentals. The pandemic accelerated employment shifts and population inflow into the company&#39;s markets as renters sought more business-friendly, low-taxed and low-density cities. These favorable long-term secular dynamic trends are increasing the desirability of its markets.
The high pricing of single-family ownership units in a high interest rate environment continues to drive the demand for rental apartments. Amid these positives, MAA is expected to continue maintaining a high level of occupancy in the upcoming period.
Moreover, per a September Update from MAA, both new lease pricing and occupancy for the quarter through Aug. 31 improved from the second quarter of 2024 despite supply pressures.
<img alt="Mid-America Apartment Communities, Inc." src="https://staticx-tuner.zacks.com/images/articles/charts/49/77197.jpg?v=400042492" style="border-style:solid; border-width:1px" />
Image Source: Mid-America Apartment Communities, Inc.
Our projection for average physical occupancy in 2024 is 95.6%. For 2025 and 2026, the average physical occupancy is expected to remain elevated at 95.9% and 96%, respectively. While we anticipate a 1.7% increase in total revenues, the metric will rise 2.9% and 6.1% year over year in 2025 and 2026, respectively.
Redevelopment &amp; Technology Initiatives: MAA continues to implement its three internal investment programs &mdash; interior redevelopment, property repositioning projects and Smart Home installations. These programs are likely to help the company capture the upside potential in rent growth, generate accretive returns and boost earnings from its existing asset base.
In the first half of 2024, MAA redeveloped 2,796 apartment homes. As of June 30, 2024, the total number of units with Smart Home technology reached more than 94,000 across its apartment community portfolio since the initiative&#39;s beginning in the first quarter of 2019. The company expects to complete the remaining few properties in 2024.
Along with the healthy operating fundamentals of the Sunbelt markets and a robust development pipeline, the prospects of its redevelopment program and progress in technology measures are likely to drive margin expansion.
Balance Sheet Strength: MAA enjoys a solid balance sheet, with low leverage and ample availability under its revolving credit facility. As of June 30, 2024, MAA had a strong balance sheet with $1.0 billion of combined cash and available capacity under its unsecured revolving credit facility. It also has a low net debt/adjusted EBITDAre ratio of 3.7.
In the second quarter of 2024, it generated 95.9% unencumbered net operating income (NOI), providing the scope for tapping additional secured debt capital if required. Hence, the company is well-positioned to bank on growth scopes.
In addition, its trailing 12-month return on equity is 8.25% compared with the industry&#39;s average of 3.17%. This reflects that the company is more efficient in using shareholders&#39; funds than its peers.
Attractive Dividend: Solid dividend payouts are arguably the biggest enticements for REIT shareholders, and MAA remains committed to that. In the last five years, MAA has increased its dividend seven times, and its five-year annualized dividend growth rate is 9.98%. Moreover, it has a lower dividend payout compared with the industry. Further, backed by healthy operating fundamentals, we expect its dividend distribution to be sustainable in the upcoming period.
Over the past three months, shares of this Zacks Rank #3 (Hold) company have risen 17%, outperforming the industry&#39;s growth of 13.9%.
<img alt="Zacks Investment Research" src="https://staticx-tuner.zacks.com/images/articles/charts/4a/77198.jpg?v=1643274172" />
Image Source: Zacks Investment Research
<h2>What&#39;s Hurting MAA?</h2>
Elevated Supply: The struggle to lure renters will persist as supply volumes are expected to remain elevated in many Sunbelt markets. This phenomenon is expected to put pressure on rent growth in the upcoming period. Furthermore, competition in the residential real estate market with various housing alternatives like manufactured housing, condominiums and the new and existing home markets is concerning. This affects the company&#39;s power to raise rent or increase occupancy as well as leads to aggressive pricing for acquisitions.
High Interest Expenses: A high interest rate environment is a concern for MAA. Elevated rates imply a high borrowing cost for the company, which will affect its ability to purchase or develop real estate. The company has a substantial debt burden, and its total debt as of June 30, 2024 was $4.7 billion. For 2024, our estimate indicates a 17.6% year-over-year increase in the company&#39;s interest expenses.
<h2>Stocks to Consider</h2>
Some better-ranked stocks from the broader REIT sector are Cousins Properties (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/cuz#NYSE">CUZ</a>) and Essex Property Trust, Inc. (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/ess#NYSE">ESS</a>), each carrying a Zacks Rank #2 (Buy) at present.
The Zacks Consensus Estimate for Cousins Properties&#39; current-year FFO per share has been raised marginally over the past two months to $2.66.
The Zacks Consensus Estimate for Essex Property Trust&#39;s current-year FFO per share has moved northward marginally over the past month to $15.53.
Note: Anything related to earnings presented in this write-up represents funds from operations (FFO), a widely used metric to gauge the performance of REITs.
<a href="https://www.zacks.com/stock/news/2334104/solid-demand-boosts-mid-america-apartment-despite-supply-woes?cid=CS-BENZ-FT-analyst_blog|zer_report_update-2334104">To read this article on Zacks.com click here.</a>

Deutsche Bank maintains Essex Property Trust (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ESS#NYSE">ESS</a>) with a Hold and raises the price target from $240 to $308.

Deutsche Bank Maintains Hold on Essex Property Trust, Raises Price Target to $308

Goldman Sachs analyst Julien Blouin initiated coverage of several multifamily REITs and single-family rental REITs companies.
Initiating with a Buy rating, the analyst kept the price target for Invitation Homes Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/INVH#NYSE">INVH</a>) <a target="_blank" href="https://www.benzinga.com/quote/INVH/analyst-ratings" rel="noreferrer noopener">at $46</a>,&nbsp;&nbsp;Mid-America Apartment Communities, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/MAA#NYSE">MAA</a>) <a target="_blank" href="https://www.benzinga.com/quote/MAA/analyst-ratings" rel="noreferrer noopener">at $187</a> and American Homes 4 Rent (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/AMH#NYSE">AMH</a>) <a target="_blank" href="https://www.benzinga.com/quote/amh/analyst-ratings" rel="noreferrer noopener">at $48.</a>
The analyst says that for single-family REITs like AMH and INVH, strong demand driven by demographics, home affordability, and migratory trends is expected to lead to re-accelerating same-store revenue growth in 2025 and 2026 as competitive rental supply pressures ease.
In particular, the analyst expects AMH and INVH to experience the highest same-store revenue growth among their covered stocks in 2025. Additionally, Blouin says that AMH&#8217;s upcoming development projects will enable the company to achieve superior external growth.
On the other hand, Blouin started coverage at a Neutral rating on Camden Property Trust (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CPT#NYSE">CPT</a>), Equity Residential (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/EQR#NYSE">EQR</a>), and Essex Property Trust, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ESS#NYSE">ESS</a>), with a price target of <a target="_blank" href="https://www.benzinga.com/quote/cpt/analyst-ratings" rel="noreferrer noopener">$139</a>, <a target="_blank" href="https://www.benzinga.com/quote/eqr/analyst-ratings" rel="noreferrer noopener">$81</a> and <a target="_blank" href="https://www.benzinga.com/quote/ess/analyst-ratings" rel="noreferrer noopener">$318</a>, respectively.
The analyst expects rent growth in ESS's markets to stay strong, driven by improving migration trends in the company's suburban areas (~60% of exposure based on GS estimates, 47% per CoStar).
However, they anticipate that EQR to encounter a significant supply challenge in its urban submarkets.
Apart from this, the analyst initiated coverage on UDR, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/UDR#NYSE">UDR</a>) at a Sell rating, <a target="_blank" href="https://www.benzinga.com/quote/UDR/analyst-ratings" rel="noreferrer noopener">with a price target of $42</a>.
For UDR, Blouin expects solid rent growth for UDR, driven by improving migration in suburban areas (~70% exposure per GS and UDR's estimates, ~50% according to CoStar). This will be partially offset by outmigration from urban areas (~30% of the portfolio).
Also, same-store expense growth is projected to be in the low 4% range, about 100 basis points above consensus, adds the analyst.
Overall, the analyst writes that in residential REIT sector, declining supply is creating a favorable growth environment. For Sunbelt multifamily REITs, while suburban migration is moderating, Blouin anticipates a sharper decline in supply, which will drive accelerating same-store revenue growth.
Image via Shutterstock
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Goldman Sachs analyst Julien Blouin initiates coverage on Essex Property Trust (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ESS#NYSE">ESS</a>) with a Neutral rating and announces Price Target of $318.

Goldman Sachs Initiates Coverage On Essex Property Trust with Neutral Rating, Announces Price Target of $318

Shares of Essex Property Trust, Inc. (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/ess#NYSE">ESS</a>) have rallied 23.1% in the past six months, outperforming the industry&#39;s growth of 16.2%.
This residential REIT, which has a robust property base in the West Coast market, is poised to benefit from the healthy demand for its residential units. It is also banking on technology, scale and organizational capabilities to drive growth.
Analysts also seem bullish on this Zacks Rank #2 (Buy) stock. The Zacks Consensus Estimate for the company&#39;s 2024 FFO per share has been revised two cents upward over the past week to $15.53.
<img alt="Zacks Investment Research" src="https://staticx-tuner.zacks.com/images/articles/charts/a6/76414.jpg?v=2100882721" />
Image Source: Zacks Investment Research
Let us now decipher the factors behind the surge in the stock price.
This residential REIT&#39;s substantial exposure to the West Coast market has offered ample scope to enhance its top line. The West Coast is home to several innovation and technology companies that drive job creation and income growth. The West Coast region has higher median household incomes, an increased percentage of renters than owners and favorable demographics.
With layoffs in the tech industry slowing and return to office gaining momentum, the West Coast markets are likely to see an increase in renter demand in the near term. Also, due to the high cost of homeownership amid high interest rates, the transition from renter to homeowner is difficult in its markets, making renting apartment units a more flexible and viable option.
Essex Property is also banking on its technology, scale and organizational capabilities to drive margin expansion across its portfolio and bring about operational efficiency by lowering costs. It is making good progress on the technology front, and leasing agents are becoming more productive by leveraging these tools. These efforts are likely to have an incremental effect on the top-line and bottom-line growth, positioning Essex Property to ride the growth curve.
<h2>ESS&#39; Balance Sheet Position</h2>
Essex Property maintains a healthy balance sheet and enjoys financial flexibility. As of July 26, 2024, the company had $1.1 billion of liquidity through an undrawn capacity on its unsecured credit facilities, cash, cash equivalents and marketable securities.
In the second quarter of 2024, its net debt-to-adjusted EBITDAre remained unchanged at 5.4X from the prior quarter. Over the years, it has made efforts to increase its unencumbered net operating income (NOI) to an adjusted total NOI, which stood at 93% at the end of the second quarter of 2024. With a high percentage of such assets, the company can access secured and unsecured debt markets and maintain availability on the line. With a solid liquidity position, the company is well-poised to ride its growth curve.
In addition, its trailing 12-month return on equity is 9.14% compared with the industry&#39;s average of 3.17%. This reflects that the company is more efficient in using shareholders&#39; funds than its peers.
<h2>ESS&#39; Dividend Payouts</h2>
Solid dividend payouts are arguably the biggest attraction for REIT investors, and Essex Property has been steadily raising its payout. ESS has increased its dividend five times in the last five years, and its five-year annualized dividend growth rate is 4.34%. With a low dividend payout ratio, a solid operating platform and decent balance sheet strength, the dividend payment is expected to be sustainable over the long run.
<h2>Negatives Likely to Affect ESS Stock</h2>
However, the elevated supply of apartment units in some of the company&#39;s markets is likely to fuel competition and curb pricing power. A flexible working environment and high interest rates add to its woes.
<h2>Other Stocks to Consider</h2>
Some other top-ranked stocks from the retail REIT sector are Modiv Industrial, Inc. (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/mdv#NYSE">MDV</a>) and Equity Lifestyle Properties (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/els#NYSE">ELS</a>). While Modiv Industrial sports a Zacks Rank #1 (Strong Buy) at present, Equity Lifestyle carries a Zacks Rank #2.
The Zacks Consensus Estimate for MDV&#39;s current-year FFO per share has been raised 6.5% over the past month to $1.32.
The Zacks Consensus Estimate for ELS 2024 FFO per share has moved marginally northward over the past two months to $2.91.
Note: Anything related to earnings presented in this write-up represents funds from operations (FFO) &mdash; a widely used metric to gauge the performance of REITs.
<a href="https://www.zacks.com/stock/news/2330980/essex-property-rises-23-1-in-6-months-will-the-trend-last?cid=CS-BENZ-FT-analyst_blog|price_surge_/_plunge-2330980">To read this article on Zacks.com click here.</a>

Raymond James analyst Buck Horne maintains Essex Property Trust (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ESS#NYSE">ESS</a>) with a Outperform and raises the price target from $295 to $325.

Raymond James Maintains Outperform on Essex Property Trust, Raises Price Target to $325

Evercore ISI Group analyst Steve Sakwa maintains Essex Property Trust (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ESS#NYSE">ESS</a>) with a In-Line and raises the price target from $268 to $283.

Evercore ISI Group Maintains In-Line on Essex Property Trust, Raises Price Target to $283

Truist Securities analyst Michael Lewis maintains Essex Property Trust (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ESS#NYSE">ESS</a>) with a Hold and raises the price target from $282 to $294.

Truist Securities Maintains Hold on Essex Property Trust, Raises Price Target to $294

In the latest quarter, 16 analysts provided ratings for Essex Property Trust (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ESS#NYSE">ESS</a>), showcasing a mix of bullish and bearish perspectives.
The table below offers a condensed view of their recent ratings, showcasing the changing sentiments over the past 30 days and comparing them to the preceding months.
<table>
<thead>
<tr>
<th></th>
<th style="text-align: right;">Bullish</th>
<th style="text-align: right;">Somewhat Bullish</th>
<th style="text-align: right;">Indifferent</th>
<th style="text-align: right;">Somewhat Bearish</th>
<th style="text-align: right;">Bearish</th>
</tr>
</thead>
<tbody>
<tr>
<td>Total Ratings</td>
<td style="text-align: right;">1</td>
<td style="text-align: right;">6</td>
<td style="text-align: right;">9</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
</tr>
<tr>
<td>Last 30D</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">2</td>
<td style="text-align: right;">1</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
</tr>
<tr>
<td>1M Ago</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">2</td>
<td style="text-align: right;">2</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
</tr>
<tr>
<td>2M Ago</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">1</td>
<td style="text-align: right;">3</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
</tr>
<tr>
<td>3M Ago</td>
<td style="text-align: right;">1</td>
<td style="text-align: right;">1</td>
<td style="text-align: right;">3</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
</tr>
</tbody>
</table>
In the assessment of 12-month price targets, analysts unveil insights for Essex Property Trust, presenting an average target of $288.56, a high estimate of $355.00, and a low estimate of $260.00. Observing a 7.08% increase, the current average has risen from the previous average price target of $269.47. 
<img src="https://www.benzinga.com/files/images/story/2024/1724702425_0.png" alt="price target chart" />
<h2>Deciphering Analyst Ratings: An In-Depth Analysis</h2>
The perception of Essex Property Trust by financial experts is analyzed through recent analyst actions. The following summary presents key analysts, their recent evaluations, and adjustments to ratings and price targets.
<table>
<thead>
<tr>
<th>Analyst</th>
<th>Analyst Firm</th>
<th>Action Taken</th>
<th>Rating</th>
<th>Current Price Target</th>
<th>Prior Price Target</th>
</tr>
</thead>
<tbody>
<tr>
<td>Alexander Goldfarb</td>
<td>Piper Sandler</td>
<td>Raises</td>
<td>Overweight</td>
<td>$355.00</td>
<td>$315.00</td>
</tr>
<tr>
<td>Nicholas Yulico</td>
<td>Scotiabank</td>
<td>Raises</td>
<td>Sector Outperform</td>
<td>$309.00</td>
<td>$290.00</td>
</tr>
<tr>
<td>James Feldman</td>
<td>Wells Fargo</td>
<td>Raises</td>
<td>Equal-Weight</td>
<td>$314.00</td>
<td>$269.00</td>
</tr>
<tr>
<td>Nicholas Yulico</td>
<td>Scotiabank</td>
<td>Raises</td>
<td>Sector Outperform</td>
<td>$290.00</td>
<td>$285.00</td>
</tr>
<tr>
<td>Richard Anderson</td>
<td>Wedbush</td>
<td>Raises</td>
<td>Neutral</td>
<td>$301.00</td>
<td>$264.00</td>
</tr>
<tr>
<td>Brad Heffern</td>
<td>RBC Capital</td>
<td>Raises</td>
<td>Outperform</td>
<td>$288.00</td>
<td>$284.00</td>
</tr>
<tr>
<td>Simon Yarmak</td>
<td>Stifel</td>
<td>Raises</td>
<td>Hold</td>
<td>$268.00</td>
<td>$267.00</td>
</tr>
<tr>
<td>Michael Goldsmith</td>
<td>UBS</td>
<td>Raises</td>
<td>Neutral</td>
<td>$283.00</td>
<td>$261.00</td>
</tr>
<tr>
<td>Simon Yarmak</td>
<td>Stifel</td>
<td>Raises</td>
<td>Hold</td>
<td>$267.00</td>
<td>$243.50</td>
</tr>
<tr>
<td>Steve Sakwa</td>
<td>Evercore ISI Group</td>
<td>Raises</td>
<td>In-Line</td>
<td>$260.00</td>
<td>$254.00</td>
</tr>
<tr>
<td>Alexander Goldfarb</td>
<td>Piper Sandler</td>
<td>Maintains</td>
<td>Overweight</td>
<td>$315.00</td>
<td>$315.00</td>
</tr>
<tr>
<td>Michael Lewis</td>
<td>Truist Securities</td>
<td>Raises</td>
<td>Hold</td>
<td>$282.00</td>
<td>$255.00</td>
</tr>
<tr>
<td>Anthony Paolone</td>
<td>JP Morgan</td>
<td>Raises</td>
<td>Neutral</td>
<td>$265.00</td>
<td>$244.00</td>
</tr>
<tr>
<td>Nicholas Yulico</td>
<td>Scotiabank</td>
<td>Raises</td>
<td>Sector Outperform</td>
<td>$285.00</td>
<td>$283.00</td>
</tr>
<tr>
<td>James Feldman</td>
<td>Wells Fargo</td>
<td>Raises</td>
<td>Equal-Weight</td>
<td>$269.00</td>
<td>$232.00</td>
</tr>
<tr>
<td>Vikram Malhorta</td>
<td>Mizuho</td>
<td>Raises</td>
<td>Buy</td>
<td>$266.00</td>
<td>$250.00</td>
</tr>
</tbody>
</table>
<h3>Key Insights:</h3>
<ul>
<li>Action Taken: Responding to changing market dynamics and company performance, analysts update their recommendations. Whether they 'Maintain', 'Raise', or 'Lower' their stance, it signifies their response to recent developments related to Essex Property Trust. This offers insight into analysts' perspectives on the current state of the company.</li>
<li>Rating: Delving into assessments, analysts assign qualitative values, from 'Outperform' to 'Underperform'. These ratings communicate expectations for the relative performance of Essex Property Trust compared to the broader market.</li>
<li>Price Targets: Analysts explore the dynamics of price targets, providing estimates for the future value of Essex Property Trust's stock. This examination reveals shifts in analysts' expectations over time.</li>
</ul>
Navigating through these analyst evaluations alongside other financial indicators can contribute to a holistic understanding of Essex Property Trust's market standing. Stay informed and make data-driven decisions with our Ratings Table.
<a href="https://www.benzinga.com/quote/ESS/analyst-ratings?utm_source=Benzinga Insights">Stay up to date on Essex Property Trust analyst ratings.</a>
<h2>Unveiling the Story Behind Essex Property Trust</h2>
Essex Property Trust owns a portfolio of 254 apartment communities with over 62,000 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.
<h3>Financial Milestones: Essex Property Trust's Journey</h3>
Market Capitalization Highlights: Above the industry average, the company's market capitalization signifies a significant scale, indicating strong confidence and market prominence.
Revenue Growth: Over the 3 months period, Essex Property Trust showcased positive performance, achieving a revenue growth rate of 6.32% as of 30 June, 2024. This reflects a substantial increase in the company's top-line earnings. As compared to its peers, the company achieved a growth rate higher than the average among peers in Real Estate sector.
Net Margin: Essex Property Trust's net margin excels beyond industry benchmarks, reaching 21.0%. This signifies efficient cost management and strong financial health.
Return on Equity (ROE): The company's ROE is a standout performer, exceeding industry averages. With an impressive ROE of 1.68%, the company showcases effective utilization of equity capital.
Return on Assets (ROA): Essex Property Trust's financial strength is reflected in its exceptional ROA, which exceeds industry averages. With a remarkable ROA of 0.73%, the company showcases efficient use of assets and strong financial health.
Debt Management: The company maintains a balanced debt approach with a debt-to-equity ratio below industry norms, standing at 1.16.
<h2>How Are Analyst Ratings Determined?</h2>
Ratings come from analysts, or specialists within banking and financial systems that report for specific stocks or defined sectors (typically once per quarter for each stock). Analysts usually derive their information from company conference calls and meetings, financial statements, and conversations with important insiders to reach their decisions.
Analysts may supplement their ratings with predictions for metrics like growth estimates, earnings, and revenue, offering investors a more comprehensive outlook. However, investors should be mindful that analysts, like any human, can have subjective perspectives influencing their forecasts.
This article was generated by Benzinga's automated content engine and reviewed by an editor.

What 16 Analyst Ratings Have To Say About Essex Property Trust

Piper Sandler analyst Alexander Goldfarb maintains Essex Property Trust (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ESS#NYSE">ESS</a>) with a Overweight and raises the price target from $315 to $355.

Piper Sandler Maintains Overweight on Essex Property Trust, Raises Price Target to $355

Scotiabank analyst Nicholas Yulico maintains Essex Property Trust (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ESS#NYSE">ESS</a>) with a Sector Outperform and raises the price target from $290 to $309.

Scotiabank Maintains Sector Outperform on Essex Property Trust, Raises Price Target to $309

Wells Fargo analyst James Feldman maintains Essex Property Trust (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ESS#NYSE">ESS</a>) with a Equal-Weight and raises the price target from $269 to $314.

Wells Fargo Maintains Equal-Weight on Essex Property Trust, Raises Price Target to $314

Shares of&nbsp;AvalonBay Communities&nbsp;(NYSE: <a class="ticker" href="https://www.benzinga.com/stock/avb#NYSE">AVB</a>) have rallied 15.4% year to date compared with the&nbsp;industry&#39;s upside of 9.8%.
Last month, AvalonBay reported a second-quarter 2024 core funds from operation (FFO) per share of $2.77, which beat the Zacks Consensus Estimate of $2.71.
The quarterly results reflected a year-over-year increase in both same-store total revenues and average rental revenue per occupied home.
This residential REIT also raised its guidance for 2024 core FFO per share, same-store residential revenues and net operating income (NOI).
Analysts also seem bullish on this Zacks Rank #3 (Hold) company, with the Zacks Consensus Estimate for its 2024 FFO per share revised upward over the past week to $10.97.
<img alt="Zacks Investment Research" src="https://staticx-tuner.zacks.com/images/articles/charts/62/74763.jpg?v=166392566" />
Image Source: Zacks Investment Research
Let us decipher the factors behind the surge in the stock price.
AvalonBay focuses on adding properties situated in the leading metropolitan areas where the market is characterized by growing employment in the high-wage sectors of the economy, higher home ownership costs, and a diverse and vibrant quality of life. This allows AvalonBay to generate superior long-term risk-adjusted returns on apartment community investments over the other markets that lack such characteristics.
AVB&#39;s portfolio is well-diversified, with its same-store portfolio comprising a decent number of both suburban and urban assets. Moreover, limited single-family home inventory is making the transition from renter to homeowner difficult in its markets, and renting apartment units is a viable option. Hence, with these factors in place, AvalonBay remains well-poised for growth.
To enhance its overall portfolio quality, AvalonBay has carried out several strategic acquisitions over the years. From the beginning of 2024 through Aug 1, 2024, the company completed acquisitions worth $225 million. Moreover, given the favorable residential real estate market fundamentals in the newly expanded markets of Raleigh-Durham and Charlotte, NC; Southeast Florida; Dallas and Austin, TX, and Denver, CO, AVB is tracking opportunities to increase its asset base there.
AvalonBay has an encouraging development pipeline. As of Jun 30, 2024, the company had 17 consolidated development communities under construction. Over the next few years, the developments underway are expected to deliver meaningful incremental NOI upon completion and stabilization and are expected to fuel FFO and net asset value growth.
AvalonBay is leveraging technology, scale and organizational capabilities to drive margin expansion across its portfolio. Such efforts are likely to bring about operational efficiency and reduce costs, aiding NOI growth.
The company maintains a healthy balance sheet position. As of Jun 30, 2024, AvalonBay did not have any borrowings outstanding under its $2.25 billion unsecured credit facility. AVB has a well-laddered debt maturity schedule with a weighted average year-to-maturity of 7.3 years.In addition, in the second quarter of 2024, its annualized net debt-to-core EBITDAre was 4.2 times, and the unencumbered NOI was 95%, providing scope for tapping the additional secured debt capital if required.
However, the elevated supply of rental units in certain markets is likely to fuel competition and curb pricing power, thereby impeding the rent growth momentum to some extent. A high interest rate adds to its woes.
Stocks to Consider
Some better-ranked stocks from the REIT sector are&nbsp;Essex Property Trust (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/ess#NYSE">ESS</a>) and&nbsp;Cousins Properties (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/cuz#NYSE">CUZ</a>), each carrying a Zacks Rank #2 (Buy) at present.
The Zacks Consensus Estimate for Essex Property Trust&#39;s 2024 FFO per share is pegged at $4.82, up 3.26% year over year.
The Zacks Consensus Estimate for Cousins Properties&#39; 2024 FFO per share is pegged at $2.66, up 1.53% year over year.
Note:&nbsp;Anything related to earnings presented in this write-up represents funds from operations (FFO), a widely used metric to gauge the performance of REITs.
<a href="https://www.zacks.com/stock/news/2324444/avalonbay-communities-avb-up-15-4-ytd-will-it-rise-further?cid=CS-BENZ-FT-analyst_blog|price_surge_/_plunge-2324444">To read this article on Zacks.com click here.</a>

Earnings Beats

Guidance

AvalonBay Communities Up 15.4% YTD: Will It Rise Further?

The notes will be issued as additional notes under the indenture pursuant to which the Issuer previously issued&nbsp;$350 million&nbsp;of&nbsp;5.500%&nbsp;senior notes due 2034 (the &quot;initial notes&quot;).&nbsp;

Essex Property Trust Prices Public Offering Of $200M In Additional Senior Notes Due 2034 With Reoffer Yield Of 5.110%

Scotiabank analyst Nicholas Yulico maintains Essex Property Trust (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ESS#NYSE">ESS</a>) with a Sector Outperform and raises the price target from $285 to $290.

Scotiabank Maintains Sector Outperform on Essex Property Trust, Raises Price Target to $290

Wedbush analyst Richard Anderson maintains Essex Property Trust (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ESS#NYSE">ESS</a>) with a Neutral and raises the price target from $264 to $301.

Wedbush Maintains Neutral on Essex Property Trust, Raises Price Target to $301

In a report released yesterday, James Feldman from Wells Fargo maintained a Hold rating on Essex Property (ESS – Research Report), with a price tar...

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