Apartments In Free Fall, So I Bought Essex


  • We picked up 49 shares of ESS at $208.60.
  • The technical factors suggest we may be early to catch the falling knife, but the fundamentals look good.
  • To be clear, there are headwinds such as the rapid decline in leasing spreads. That's a headwind we warned investors about long in advance.
  • We tend to get excited about apartment REITs when the narrative for the sector gets awful. Problems exist, but people still like having a roof.
  • ESS is trading around 15.3x forward AFFO. Historically, they rarely go under 19x.
  • We're currently running a sale at my private investing ideas service, The REIT Forum, where members get access to portfolios, market alerts, real-time chat, and more. Learn More »
Burning building roof at night

Share prices are going up in flames, but the fundamentals remain solid. Lower leasing spreads? We called that several quarters in advance. It's time to start bargain hunting.

Collab Media/iStock via Getty Images

We purchased shares of Essex Property Trust (NYSE:ESS) today. I don't usually send alerts out on the public side the same day, but I decided it would be appropriate this time. Sharing the occasional article right away is nice because it means

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Disclosure: I/we have a beneficial long position in the shares of ESS, AVB, ELS, SUI, REXR, TRNO, PLD either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Additional disclosure: We have equity REIT positions beyond those that are listed. However, we've disclosed all of our housing REIT and industrial REIT positions since they were either referenced in the text or the charts.

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