Summary
Essex Property Trust, Inc. (ESS) reported its third-quarter 2009 results, showcasing resilience amidst a challenging economic environment. The company's diversified portfolio across Southern California, Northern California, and the Seattle metropolitan area demonstrates stable occupancy rates, averaging 97.0% for the quarter. While same-property revenues saw a slight decline due to decreased scheduled rents, this was partially offset by increased occupancy and RUBS income. The company actively managed its balance sheet, completing strategic debt retirements and equity issuances, including repurchasing Series G preferred stock and exchangeable bonds at a discount, which resulted in gains. Significant impairment and other charges were recorded, primarily related to the write-off of development costs and the cancellation of the Outperformance Plan. Looking ahead, Essex Property Trust maintains a solid liquidity position with substantial cash and marketable securities, and access to credit facilities, positioning it to navigate the ongoing credit market uncertainties. The company continues to invest in its development and redevelopment pipeline, indicating confidence in future market conditions. Despite a challenging revenue environment for same-property assets, the company's strategic financial management and diversified portfolio provide a foundation for stability and potential future growth.
Financial Highlights
21 data points| Revenue | $101.69M |
| Operating Expenses | $83.14M |
| Operating Income | $18.55M |
| Interest Expense | $21.97M |
| Net Income | -$1.24M |
| EPS (Basic) | $0.79 |
| EPS (Diluted) | $0.74 |
| Shares Outstanding (Basic) | 27.59M |
| Shares Outstanding (Diluted) | 30.07M |
Key Highlights
- 1Overall property revenues remained stable year-over-year for the nine months ended September 30, 2009, totaling $307.5 million, a 2.5% increase from $300.0 million in the prior year, driven by growth in non-same-property revenues.
- 2Average financial occupancy for stabilized apartment communities improved to 97.0% for the third quarter of 2009, up from 96.3% in the prior year, indicating strong demand for its residential properties.
- 3The company repurchased a significant portion of its Series G Cumulative Convertible Preferred Stock ($81.9 million in Q3 2009) and Exchangeable Bonds ($71.3 million in Q1 2009), resulting in gains from repurchases at a discount to carrying value.
- 4Total assets grew to $3.27 billion as of September 30, 2009, from $3.16 billion at the end of 2008, reflecting continued investment in real estate assets.
- 5Despite an increase in mortgage notes payable, the company maintained a strong liquidity position with $81.9 million in unrestricted cash and cash equivalents and $131.3 million in marketable securities.
- 6Significant impairment and other charges of $11.1 million in Q3 2009 and $16.9 million for the nine months ended Q3 2009 were recorded, primarily due to write-offs of development costs and cancellation of the Outperformance Plan.
- 7Funds From Operations (FFO) on a diluted basis increased to $1.69 per share for the third quarter of 2009, up from $1.51 in the prior year, indicating improved operational performance adjusted for real estate specific items.