NYSE$ESS

Essex Property Trust Inc · Q4 2019 earnings

Q4 2019 earnings · · Investor relations

Briefing

Announced fourth quarter and full-year 2019 results.

Essex Property Trust reported solid results for Q4 2019, with same-property NOI growth at the high-end of their guidance range, driven by strong demand for rental housing along the West Coast.

  • Net Income per diluted share for the fourth quarter of 2019 was $1.95, compared to $1.78 in the fourth quarter of 2018.
  • Core FFO per diluted share increased by 8.2% compared to the fourth quarter of 2018.
  • Same-property revenue and net operating income (NOI) grew by 4.0% and 5.5%, respectively, compared to the fourth quarter of 2018.
  • Two apartment communities were acquired during the fourth quarter of 2019 for a total contract price of $172.1 million.

Headline financials

Total Revenue

$375M

Previous: $353M+6.3%
EPS (adj)

$3.45

Previous: $3.19+8.2%
FFO

$3.54

No prior period
Apartment Homes

60.0K

No prior period
Net Income

$135M

Previous: $118M+14.7%
Operating Income

$117M

Previous: $109M+6.8%
Gross Profit

$266M

Previous: $247M+7.6%
Cash & Equivalents

$70.1M

Previous: $134M-47.9%
Total Assets

$12.7B

Previous: $12.4B+2.6%
Stock-Based Comp

$262K

Previous: -$74K+454.1%

Revenue & EPS history

Essex Property Trust · Revenue · Quarterly

$375M

Q4 2019+6.3%vs Q4 2018
Beat estimate in 14 of 16 quarters(88%)
ActualEstimate

Forward guidance

The Company expects another productive year in 2020 with stable operating fundamentals and rent growth mostly consistent with our long-term averages.

Tailwinds

  • Total NOI from Consolidated Communities is expected to be between $1,143,500,000 and $1,161,200,000.
  • Accretion from Acquisitions/Dispositions/Preferred Equity is expected to be between $5,500,000 and $6,500,000.
  • Management Fees are expected to be between $9,500,000 and $10,500,000.
  • Interest and other income is expected to be between $10,900,000 and $11,900,000.
  • FFO from co-investments is expected to be between $99,300,000 and $102,500,000.

Headwinds

  • Net interest expense is expected to be between $223,800,000 and $218,000,000.
  • General and administrative expenses are expected to be between $52,200,000 and $54,200,000.
  • Corporate-level property management expenses are expected to be between $33,900,000 and $34,900,000.
  • Non-controlling interest is expected to be between $12,400,000 and $11,400,000.
  • Expensed acquisition and investment related costs are expected to be between $100,000 and $300,000.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q4 2019

Historical avgQ4 2019

+0.3%

Avg return

Earnings day

+1.0%

Avg return

5 days after

+2.1%

Avg return

30 days after

52%

35 / 67 earnings

Positive

+6.9%

Q2 2016

Best reaction

-6.3%

Q3 2022

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-0.9%-1.2%+1.9%
Q4 2025-0.4%+3.9%+1.0%
Q3 2025+1.2%+3.8%+6.7%
Q1 2025+1.5%+4.8%+3.2%
Q4 2024+3.0%+1.4%+5.1%
Q3 2024-1.9%-7.6%+4.4%
Q2 2024-2.7%-1.5%+4.2%
Q1 2024-1.0%+0.9%+3.1%
Q4 2023-0.6%-0.2%+5.3%
Q3 2023-1.8%+1.7%+2.1%
Q2 2023-0.9%+1.9%-0.9%
Q1 2023+6.7%+5.4%+2.1%
Q4 2022+3.8%+3.2%-0.0%
Q3 2022-6.3%-6.0%-10.1%
Q2 2022+1.3%+4.6%+3.6%
Q1 2022-1.8%-5.4%-18.7%
Q4 2021-0.5%-2.5%+2.6%
Q3 2021+2.1%+1.5%+6.7%
Q2 2021-0.9%-1.0%-3.1%
Q1 2021-3.3%-2.1%-1.8%
Q4 2020+4.0%+4.5%+6.7%
Q3 2020+1.1%+11.1%+28.0%
Q2 2020-2.9%+1.1%+0.1%
Q1 2020+1.9%-0.7%+7.4%
Q4 2019+1.2%+1.0%-8.1%
Q3 2019-1.4%-2.3%-6.1%
Q2 2019+1.0%+4.1%+6.6%
Q1 2019+0.5%+0.3%+5.1%
Q4 2018+0.9%+2.1%+3.8%
Q3 2018+3.1%-0.0%+5.0%
Q2 2018-2.6%+1.0%+2.4%
Q1 2018-1.0%+0.3%-1.0%
Q4 2017-0.2%+4.1%+8.5%
Q3 2017-3.3%-3.3%-5.9%
Q2 2017-0.9%-1.5%-0.6%
Q1 2017+1.4%+3.1%+6.3%
Q4 2016+0.6%+1.0%+4.0%
Q3 2016+0.9%+2.8%+2.6%
Q2 2016+6.9%+5.8%+1.5%
Q1 2016-1.9%
Q4 2015-3.7%
Q3 2015-1.2%
Q2 2015+1.1%
Q1 2015+2.2%
Q4 2014+0.9%
Q3 2014+3.0%
Q2 2014-0.6%
Q1 2014+2.0%
Q4 2013+3.6%
Q3 2013-0.8%
Q2 2013-1.9%
Q1 2013-1.4%
Q4 2012+0.6%
Q3 2012-1.1%
Q2 2012-0.7%
Q1 2012+1.3%
Q4 2011-1.8%
Q3 2011+0.4%
Q2 2011+3.4%
Q1 2010+2.8%
Q1 2011+2.4%
Q4 2010+5.3%
Q4 2008+5.3%
Q3 2009-2.7%
Q3 2010-2.7%
Q2 2009+0.8%
Q2 2010+0.8%

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