Essex Property Trust Provides Preliminary Third Quarter 2021 Operating Update

Rhea-AI Summary

Essex Property Trust, Inc. (NYSE:ESS) has reaffirmed its full-year and Q3 2021 guidance while providing a preliminary operating update. The company reported a same-property revenue change of -8.1% in Q1 2021 and -3.0% in Q2 2021, with a preliminary increase of 2.6% for July-August 2021. Cash delinquencies were at 2.1% in Q1 2021, with a slight increase to 2.6% in Q2 2021. Financial occupancy remained stable at 96.7% in Q1, slightly decreasing to 96.4% in August 2021. Essex operates 246 communities with approximately 60,000 homes across the West Coast.

Positive

• Preliminary revenue increase of 2.6% in July-August 2021.
• Stable financial occupancy at 96.4% in August 2021.

Negative

• Same-property revenue decline of -8.1% in Q1 2021.
• Same-property revenue decline of -3.0% in Q2 2021.
• Increased cash delinquencies from 2.1% in Q1 to 2.6% in Q2 2021.

SAN MATEO, Calif.--(BUSINESS WIRE)-- Essex Property Trust, Inc. (NYSE:ESS) announced today that it is reaffirming its full-year and third quarter 2021 guidance ranges and providing a preliminary third quarter 2021 operating update.

Same-property revenue change, operating statistics, and net effective new lease rates by region are reflected in the tables below:

Same-Property Revenue Change(1)
	Q1 2021 Actuals	Q2 2021 Actuals	Jul – Aug 2021 Preliminary
Southern California	-5.8%	2.0%	9.5%
Northern California	-10.9%	-8.4%	-2.9%
Seattle	-7.0%	-2.3%	-0.8%
Total Same-Property	-8.1%	-3.0%	2.6%

1)	Reflects the year-over-year change in same-property revenues.

Same-Property Operating Statistics and Net Effective New Lease Rates(1)
	Q1 2021	Q2 2021		Jul 2021	Preliminary Aug 2021
Cash delinquencies(2)	2.1%	2.6%		2.2%	0.8%
Financial occupancy	96.7%	96.6%		96.5%	96.4%
Southern California
vs. Dec'20	0.7%	4.8%		12.7%	17.1%
vs. Pre-COVID	-2.4%	1.6%		9.3%	13.5%
Northern California
vs. Dec'20	0.3%	3.1%		10.0%	12.7%
vs. Pre-COVID	-16.2%	-13.8%		-8.1%	-5.8%
Seattle
vs. Dec'20	-0.7%		8.2%	22.8%	26.0%
vs. Pre-COVID	-14.5%		-6.8%	5.8%	8.5%
Total Same-Property
vs. Dec'20	0.3%		4.8%	13.4%	17.0%
vs. Pre-COVID	-10.2%		-6.2%	1.5%	4.7%

1)	Table reflects the % change of new lease rates on a net effective basis, including the impact of leasing incentives, compared to Dec’20 and Mar’20 (pre-COVID).
2)	Represents total same-property portfolio cash delinquencies as a percentage of scheduled rent, reflected in the financial statements of the reporting period. Year-to-date through August 2021, the Company has received $7.1 million in delinquency reimbursements associated with COVID rental assistance programs.

About Essex Property Trust, Inc.

Essex Property Trust, Inc., an S&P 500 company, is a fully integrated real estate investment trust (REIT) that acquires, develops, redevelops, and manages multifamily residential properties in selected West Coast markets. Essex currently has ownership interests in 246 apartment communities comprising approximately 60,000 apartment homes with an additional 3 properties in various stages of active development. Additional information about the Company can be found on the Company’s website at www.essex.com.

View source version on businesswire.com: https://www.businesswire.com/news/home/20210909005274/en/

Rylan Burns

Group Vice President of Private Equity & Finance

(650) 655-7800

rburns@essex.com

Source: Essex Property Trust, Inc.

FAQ

What is Essex Property Trust's recent revenue change?

Essex Property Trust reported a same-property revenue change of -8.1% in Q1 2021, -3.0% in Q2 2021, and a preliminary increase of 2.6% in July-August 2021.

What is the financial occupancy rate for Essex Property Trust in August 2021?

The financial occupancy rate for Essex Property Trust was 96.4% in August 2021.

How have cash delinquencies changed for Essex Property Trust?

Cash delinquencies increased from 2.1% in Q1 2021 to 2.6% in Q2 2021.

What guidance has Essex Property Trust reaffirmed for 2021?

Essex Property Trust has reaffirmed its full-year and third quarter 2021 guidance ranges.