Essex Property Trust (ESS) Tops Q1 EPS by $1.63

Essex Property Trust (NYSE: ESS) reported Q1 EPS of $2.59, $1.63 better than the analyst estimate of $0.96.

First Quarter 2021 Highlights:

• Reported Net Income per diluted share for the first quarter of 2021 of $2.59, compared to $4.76 in the first quarter of 2020. The decrease is largely attributable to a gain on remeasurement of co-investments recorded in the first quarter of 2020.
• Core FFO per diluted share declined by 11.8% compared to the first quarter of 2020.
• Same-property gross revenues and net operating income (“NOI”) declined by 8.1% and 12.3%, respectively, compared to the first quarter of 2020. The decline in same-property gross revenues and NOI is primarily attributed to lower scheduled rents and higher cash concessions compared to the prior-year period.
• On a sequential basis, both same-property gross revenues and NOI improved by 0.1% compared to the fourth quarter of 2020. The improvement is largely attributed to lower cash concessions and delinquency compared to the fourth quarter of 2020.
• Increased the annual dividend by $0.05 to an annual distribution of $8.36 per common share, the Company’s 27th consecutive annual increase.
• Disposed of three apartment communities during the quarter for a total contract price of $275.5 million.
• Issued $450.0 million of 7-year senior unsecured notes due in 2028 at an interest rate per annum of 1.70% and an effective yield of 1.79%. The Company has less than $200.0 million of debt maturing through the end of 2022.
• Reaffirmed full-year guidance for Core FFO, same-property gross revenues, expenses, and NOI.

“We are pleased with our first quarter results which exceeded the midpoint of our initial guidance. Although the West Coast markets are still in the early stages of an economic recovery, we are cautiously optimistic that declining COVID cases and widespread vaccinations will provide a foundation for a long economic expansion. Encouragingly, the large tech employers in our markets have accelerated hiring and are beginning to reopen their offices which should improve apartment demand, consistent with our expectations at the beginning of the year,” commented Michael J. Schall, President and CEO of the Company.

For earnings history and earnings-related data on Essex Property Trust (ESS) click here.

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