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Essex Property Trust: Buy This Top-Shelf, 3.1%-Yielding Apartment REIT For Income And Safety

Published Fri, 11 Jan 2019 08:58:00 -0500 on Seeking Alpha

Essex Property Trust, Inc. (ESS) provides income investors with growing dividend income and could be an anchor of stability for investors in times of market turmoil. Essex Property Trust is a leading apartment real estate investment trust in the U.S. with an attractive real estate portfolio and a strong balance sheet. Shares are not cheap but are worth the price tag, in my opinion. An investment in Essex Property Trust yields 3.1 percent.
Essex Property Trust - Portfolio Overview
Essex Property Trust is a West Coast-focused U.S. multi-family residential real estate investment trust with an equity value of $15.8 billion.
Essex Property Trust has a heavy presence in California and Seattle.
Here's a location map.

Source: Essex Property Trust Investor Presentation
A more detailed portfolio breakdown reveals that Los Angeles County and Santa Clara County, both counties in California, contribute the lion's share of the REIT's net operating income: 19.0 percent and 19.7 percent respectively. The Seattle Metro market is the second biggest market for Essex Property Trust, contribution 16.3 percent of total company NOI.
Here's a breakdown by region.

Source: Essex Property Trust Q3-2018 Earnings And Supplement
The West Coast is an attractive market for apartment REITs such as Essex Property Trust because of its attractive economic fundamentals: California has the world's 5th largest GDP, the population is growing rapidly, the... Read more