Essex Property Trust, Inc.NYSE
Fri, Dec. 2, 11:51 AM
- The financial sector is taking a breather from its staggering post-election run, with a post-jobs report dip in rates a good enough excuse for satiated bulls to cash in some chips.
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- No longer part of the financial sector as far as the GICS classification, REITs are enjoying the respite in rates. IYR +1.6%, VNQ +1.6%
- Realty Income (O +4.1%), Vereit (VER +3%), Omega Healthcare (OHI +3.2%), Welltower (HCN +3.5%), HCP (HCP +2.7%), Universal Health (UHT +4.4%), W.P. Carey (WPC +2%), Lexington Realty (LXP +2.5%), Essex Property (ESS +1.2%), Aimco (AIV +1.5%), General Growth (GGP +2.6%), Brixmor (BRX +1.6%), Federal Realty (FRT +1.8%), Kimco (KIM +1.2%), Public Storage (PSA +1.4%), Life Storage (LSI +1.4%), Boston Properties (BXP +1.2%), Stag Industrial (STAG +2.4%).
Mon, Nov. 28, 10:02 AM
- Evercore boosts its estimate for the 10-year Treasury yield to 3% to end next year. While REITs are in "the crosshairs" of higher rates, the improving economy should help offset that in areas like apartments and hotels, says analyst Steve Sakwa.
- He also notes the sectors have struggled of late, meaning they've discounted plenty of bad news.
- Upgraded to Buy from Hold are AvalonBay (AVB +1.9%), Essex Property (ESS +1.8%), and UDR (UDR +1.8%), with Sakwa noting supply growth on the coasts becoming less of a concern beginning in the second half of 2017.
- He's also got a valuation-related downgrade in the office space to Hold from Buy: Kilroy Realty (KRC -0.4%).
- Source: Bloomberg
Wed, Nov. 23, 7:58 AM
- What's the play here? AvalonBay (NYSE:AVB) and Essex Property (NYSE:ESS) are heavily exposed to the pricey coastal markets where oversupply is crimping business, but Camden Property Trust (NYSE:CPT) is more about the Sunbelt.
- The theme isn't a new one this year, and it's reflected in the stocks' performance - AVB and ESS are down more than 10% YTD, while CPT is up 1.25%.
- BAML's Jeffrey Spector downgrades AvalonBay and Essex to Neutral from Buy, and lifts Camden to Buy from Neutral.
- While he's at it, he upgrades Education Realty Trust (NYSE:EDR) to Buy, noting its strong balance sheet and accretive campus development pipeline.
- Source: Bloomberg
Thu, Oct. 27, 4:47 PM
- Q3 core FFO per share of $2.81 up 12.9% from $2.49 one year ago, topping high end of previous guidance.
- Same-property revenue growth of 6.9% Y/Y; NOI growth of 8.3%.
- The midpoint of full-year core FFO guidance is lifted by a nickel to $11.03 per share. Q4 core FFO is guided to $2.77-$2.83.
- CEO Michael Schall, however, sounds a word of caution, expecting continued supply deliveries and a deceleration of employment trends in west coast markets to moderate pricing power. "We expect rental growth rates to return to longer-term averages, as compared to the exceptional rental growth generated in the past several years."
- Conference call tomorrow at 2 ET
- Previously: Essex Property Trust beats by $0.05 (Oct. 27)
- ESS flat after hours
Thu, Oct. 27, 4:23 PM
Wed, Oct. 26, 5:35 PM
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Wed, Sep. 21, 8:31 AM
Tue, Sep. 6, 3:45 PM
Thu, Aug. 25, 7:58 AM
- Analyst James Sullivan moves over the BTIG from Cowen & Co. Checking apartment REITs:
- AvalonBay (NYSE:AVB) is started at Buy and $208 price target after being rated only a Hold with $192 price target at Cowen, with Sullivan saying the company is the sector's best external growth story.
- Also a Hold at Cowen, UDR is initiated at Buy with $42 price target, with Sullivan saying the portfolio mix of primary and secondary markets and moderate price points has outperformed in a decelerating market.
- Essex Property Trust (NYSE:ESS) also merits an upgrade - now a Buy at BTIG.
- A Buy at Cowen, MAA is now only Neutral at BTIG.
- Monogram Residential (NYSE:MORE) is a Buy at BTIG after being rated the same at Cowen.
- See also: More new REIT coverage at BTIG (Aug. 25)
Thu, Jul. 28, 4:40 PM
- Q2 core FFO of $2.74 per share vs. $2.40 one year ago.
- Same-property revenue up 6.9% Y/Y; NOI up 8.2%. Revenue up 1.8% Q/Q.
- As with Equity Residential, company notes slowing revenue growth concentrated mostly in the San Francisco and San Jose areas, and cuts same-property revenue growth guidance by 20 bps at the midpoint to 6.8%.
- San Francisco revenue growth in Q2 was just 4% Y/Y vs. all NoCal at 7.6% and SoCal at 6.1%.
- Full-year core FFO guidance is lifted by $0.06 at the midpoint to $10.90-$11.06 per share. Q3 core FFO guidance of $2.73-$2.79.
- CC tomorrow at 2 ET
- Previously: Essex Property Trust beats by $0.04 (July 28)
- ESS flat after hours
Thu, Jul. 28, 4:33 PM
Wed, Jul. 27, 5:35 PM
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Tue, Jul. 26, 3:01 PM
- Concessions of $300K in Q2 were four times higher than in Q2 one year ago, with sweeteners the greatest in NYC, NoCal, and New England, according to COO Sean Breslin.
- Higher competition from the surge in newly built apartment buildings will drive revenue in communities open at least 12 months down by about 0.4%, says the company. Also at work: Job growth in the areas where AvalonBay (AVB -1.9%) owns properties was weaker than expected in Q2.
- "We did not see the same seasonal lift we’ve seen in prior years,” says CEO Timothy Naughton. "There's just not enough high-paying jobs being created to absorb al the new supply," says Breslin.
- Equity Residential (EQR -0.6%), Essex Property (ESS -1.8%), UDR (UDR -1.1%), Camden Property (CPT -1.3%)
Thu, Jun. 16, 10:20 AM
- Inside May's CPI report was a monthly rent increase of 0.4%, the strongest monthly increase sine 2007. The year-over-year rise was 3.8%, the highest since 2008.
- That far outpaces the average hourly wage increase of 1.4%.
- Associated tickers: EQR, AVB, ESS, PPS, UDR, AIV, CPT, MAA, IRET, IRT, MORE, APTS
Thu, Jun. 9, 11:52 AM
- The team hosted meetings with 29 companies over two days across six subsectors. Some highlights:
- Lodging: Business travel remains soft and most are operating defensively by grouping up and reducing leverage. NYC is flooded with hotels available for sale which should pressure pricing.
- Apartments: The slowdown in NoCal is concentrated in Soma and San Jose, but expected to be temporary. The NYC slowdown is expected to endure through 2017. Merchant builders in Houston with deliveries in 2017 are in trouble - an opportunity for Camden Property Trust (NYSE:CPT) to pick up assets on the cheap.
- Malls: Concerns over department stores are overblown. Simon Property (NYSE:SPG) expects spreads to top mid-teens in the next five years. Omni-channel retail strategy is growing increasingly important as the WSJ reports 80% of online sales touch brick and mortar in some way.
- CS's Ian Weissman is ranked #1,134 out of #3,990 analysts on TipRanks.com.
- Tickers of interest: HPT, SHO, LHO, PEB, CHSP, INN, RLJ, EQR, AVB, ESS, PPS, UDR, AIV, GGP, BRX, KIM, WRI, MAC
Wed, Jun. 8, 9:49 AM
- Equity Residential (EQR -1%), AvalonBay Communities (AVB -1.1%), and Essex Property Trust (ESS -0.5%) are all downgraded to Hold from Buy at Jefferies.
- With market caps of $13B-$23B, these three are the apartment sector giants by a wide margin. They tend to play in the high-priced markets on the coasts (Essex is all West Coast).
- Equity Residential made big news late last year when it sold a big chunk of its portfolio - and when Sam Zell sells, it's worth paying attention to. The company made more news last week when it cut guidance thanks to weakness in San Francisco and New York (though management played this down at a conference yesterday).
- Other sector names: Post Properties (PPS +0.1%), UDR (UDR -0.8%), Aimco (AIV -0.5%), Camden Property (CPT -1%), Mid-America (MAA -0.3%), Investors Real Estate (IRET +1.6%), Independence Realty (IRT +0.4%), Monogram Residential (MORE -0.5%), NexPoint (NXRT), Preferred Apartment (APTS +0.6%), Bluerock Residential (BRG -0.2%)