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Press Release: Essex Announces Fourth Quarter and Full-Year 2020 Results and 2021 Guidance

· 02/04/2021 16:15
Q4 2020 vs. Q4 2019 YTD 2020 vs. YTD 2019 ----------------- --------------------------- --------------------------- Same-Property Revenue $ Amount (in % $ Amount (in % Components Millions) Contribution Millions) Contribution ----------------- ------------- ------------ ------------- ------------ Prior-Period Same-Property Revenues $ 340.7 $ 1,338.7 Scheduled Rents -6.3 -1.9% 9.0 0.7% Delinquencies -7.9 -2.3% -23.5 -1.8% Cash Concessions -11.8 -3.5% -31.8 -2.4% Vacancy -1.6 -0.5% -8.1 -0.6% Other Income 0.2 0.1% 2.4 0.2% ------------- ------------ ------------ ------------ 2020 Same-Property Revenues/Change $ 313.3 -8.0% $ 1,286.7 -3.9% ============= ============ ============ ============ Year-Over-Year Change Year-Over-Year Change --------------------------- --------------------------- YTD 2020 compared to YTD Q4 2020 compared to Q4 2019 2019 --------------------------- --------------------------- Gross Operating Gross Operating Revenues Expenses NOI Revenues Expenses NOI -------- --------- ------ -------- --------- ------ Southern California -7.2% 3.6% -11.3% -4.4% 2.9% -7.3% Northern California -10.4% 4.2% -15.5% -4.9% 3.2% -7.7% Seattle Metro -4.9% 7.8% -9.9% -0.6% 7.8% -4.0% -------- --------- ------ -------- --------- ------ Same-Property Portfolio -8.0% 4.6% -12.7% -3.9% 3.9% -6.8% ======== ========= ====== ======== ========= ====== Sequential Change --------------------------------- Q4 2020 compared to Q3 2020 --------------------------------- Gross Operating Revenues Expenses NOI ---------- --------- ---------- Southern California 2.0% -2.3% 4.0% Northern California -0.5% 0.2% -0.8% Seattle Metro -1.7% -1.3% -1.9% ---------- --------- ---------- Same-Property Portfolio 0.3% -1.2% 1.0% ========== ========= ========== Financial Occupancies --------------------------------- Quarter Ended --------------------------------- 12/31/2020 9/30/2020 12/31/2019 ---------- --------- ---------- Southern California 96.8% 95.9% 97.0% Northern California 96.5% 96.2% 97.2% Seattle Metro 95.8% 95.9% 97.1% ---------- --------- ---------- Same-Property Portfolio 96.5% 96.0% 97.1% ========== ========= ==========Q4 2020 vs. Q4 2020 vs. Q4 2019 Q3 2020 % of Total ----------- ----------- ---------- Gross Gross Q4 2020 Revenues Revenues Revenues ----------- ----------- ---------- Southern California Los Angeles County -13.0% 2.4% 18.1% Orange County -3.5% 1.3% 11.4% San Diego County -1.4% 2.4% 8.9% Ventura County -1.3% 1.2% 4.3% ----------- ----------- ---------- Total Southern California -7.2% 2.0% 42.7% ----------- ----------- ---------- Northern California Santa Clara County -10.0% -1.5% 18.7% Alameda County -11.5% 0.5% 6.8% San Mateo County -12.0% -0.2% 4.9% Contra Costa County -4.2% 1.6% 5.1% San Francisco -17.3% -0.7% 3.0% ----------- ----------- ---------- Total Northern California -10.4% -0.5% 38.5% ----------- ----------- ---------- Seattle Metro -4.9% -1.7% 18.8% ----------- ----------- ---------- Same-Property Portfolio -8.0% 0.3% 100.0% ----------- ----------- ------------ Reported Net Income per diluted share for the fourth quarter of 2020 of $1.47, compared to $1.95 in the fourth quarter of 2019 and $1.13 in the third quarter of 2020. For the full-year, the Company reported Net Income per diluted share of $8.69. -- Core FFO per diluted share declined by 12.5% compared to the fourth quarter of 2019 and 4.2% for the full-year 2020. -- Core FFO per diluted share declined by $0.13 as compared to the third quarter of 2020. The impact of straight-line rent concessions accounted for $0.16 of the decline. -- Same-property gross revenue and net operating income ("NOI") declined by 8.0% and 12.7%, respectively, compared to the fourth quarter of 2019. For the full-year, same-property gross revenue and NOI declined by 3.9% and 6.8%, respectively. -- On a sequential basis, same-property gross revenue and NOI improved by 0.3% and 1.0%, respectively, compared to the third quarter of 2020. -- Disposed of one community during the fourth quarter for a total contract price of $60.0 million. For the full-year, the Company disposed of four apartment communities for a total contract price of $343.5 million. -- Committed $206.0 million in structured finance investments in the fourth quarter of 2020. For the full-year, the Company committed $352.1 million in structured finance investments, partially financed with $175.2 million in redemptions for the year. -- Repurchased 211,681 shares of common stock in the fourth quarter, totaling $46.3 million at an average price per share of $218.84 under the stock buyback program. For the full-year, the Company repurchased 1,197,190 shares of common stock totaling $269.3 million at an average price per share of $224.96.Three Months Ended Year Ended December 31, % December 31, % 2020 2019 Change 2020 2019 Change --------- --------- ------ ------ ------ ------ Per Diluted Share ----------- Net Income $1.47 $1.95 -24.6% $8.69 $6.66 30.5% Total FFO $3.24 $3.54 -8.5% $12.78 $13.73 -6.9% Core FFO $3.02 $3.45 -12.5% $12.82 $13.38 -4.2%SAN MATEO, Calif.--(BUSINESS WIRE)--February 04, 2021--

Essex Announces Fourth Quarter and Full-Year 2020 Results and 2021 Guidance

Essex Property Trust, Inc. (NYSE:ESS) announced today its fourth quarter and full-year 2020 earnings results and related business activities.

Net Income and Funds from Operations ("FFO") per diluted share for the quarter ended and year ended December 31, 2020 are detailed below.

Fourth Quarter and Full-Year Highlights:

"As expected, our fourth quarter and full-year results reflect the extraordinary challenges arising from the Covid-19 pandemic, including severe lockdowns which resulted in unprecedented job losses and declining effective rents for most of the year. With that backdrop, our fourth quarter results provided signs of stabilization, with a partial recovery of lost jobs and modestly improved same-property revenues on a sequential basis. Given difficult comparisons to one year ago, we expect year-over-year results to remain challenged through the second quarter of 2021, followed by a steady economic recovery and resurgence in rental demand assuming a widespread distribution of vaccines. The Company's strong balance sheet, well-covered dividend, and technology platform position Essex to emerge from the pandemic an even stronger company," commented Michael J. Schall, President and CEO of the Company.

SAME-PROPERTY OPERATIONS

Same-property operating results exclude any properties that are not comparable for the periods presented. The table below illustrates the percentage change in same-property gross revenues for the quarter ended December 31, 2020 compared to the quarter ended December 31, 2019, and the sequential percentage change for the quarter ended December 31, 2020 compared to the quarter ended September 30, 2020, by submarket for the Company:

The table below illustrates the components that drove the change in Same-Property Revenues on a year-over-year basis for the fourth quarter and full-year 2020.

INVESTMENT ACTIVITY

Dispositions

In October 2020, the Company sold a community located in Glendale, CA containing 115 apartment homes, for a total contract price of $60.0 million. The Company recognized a $25.7 million gain on sale in the quarter, which has been excluded from Core FFO.

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February 04, 2021 16:15 ET (21:15 GMT)