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Essex Property Trust, Inc. (ESS)

NYSE - NYSE Delayed Price. Currency in USD
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335.36+2.38 (+0.71%)
At close: 4:02PM EDT
335.36 -0.27 (-0.08%)
After hours: 04:02PM EDT
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  • m
    maddog
    Folks, get ready for the downside soon. P/E at 51. This is not even worth calling a company with a Management that is capable, let alone giving it a growth P/E ratio. Watch how the dividend is cut soon and analysts in bed with Schall will soon start downgrading the stock. Schall has lawyers and financial people running the numbers. No company grows with cost cutting and shady business practices.
    See yo uta $220 soon.
  • s
    stocktargetadvisor
    $ESS
    Initiated by Barclays Equal Weight USD 335
    Maintains Piper Sandler Overweight USD 340 » USD 390
  • i
    ifm
    Essex Property Trust (ESS) is one of the best run REITs owning & operating appartments in California.
    They have a solid balance sheet, good interest coverage & track record of dividend growth.

    Therefore ESS was trading at a premium to their NAV in the past.
    Currently it's priced around 23% Discount to NAV (284 USD) - Why?
  • m
    maddog
    Operations cash flow is kept inflated with reduced spending and finishing of projects. ESS is actually losing money. Thus ponzi schema will explode. At some point there will be a clean up. Question is will Schall be held accountable?
  • m
    maddog
    The only company I know off that does a conference call the next day after earnings announcement so it gives the management team time to make up stories. Analysts - you are smart guys since you project have been ballparking low estimates giving ESS Schall the benefit of doubt when he beats. This has been ongoing for many quarters now. Either you are unable to improve estimations precisely or are giving Schall the ability to inflate the stock with earnings beats which are in reality not true. You are focused on few metrics. Ask Schall to report property by property numbers. Revenue, costs, vacancy rate, customer satisfaction (make sure you add zero to that scale), turnover, ROI etc. You will soon realize that this ponzi scheme only works for select properties.
  • m
    maddog
    There you go. Earnings released on 2/7. If Essex is really well positioned in strong markets as they claim to be wouldn't you expect some positivity and enthusiasm from this company's announcement. I think even holding onto cash would have made you money in 2017. Technically Essex has last money for investors in 2017. Look at the net income number. It's down 48%. Don't fall for the superficial FFO which basically allows Essex to capitalize on gimmicks. Make real estate transactions to show higher numbers. Folks they do not know how to operate. It's evident. They are hanging by a thread. Their CEO and management team has no desire other than pocket hefty stock option gains. Note: They have issued stock at the $260 level. Employees are already losing money working for Essex. Institutional investors far from Silicon Valley and Seattle metro area - Essex has 1799 employees. They claim to have revenue of $1.3B. That's $722k per employee. Really? Even high tech companies don't have that kind of revenue per employee nowadays. Essex's creativity in financial make believe is what is forcing funds to buy their stock. Being in the S&P index ties hands of money managers and drives auto buying. Trust me analysts are lagging in seeing the reality of this company. I have enjoyed the downward slide based on fundamentals. The next support level that ESS will break through in 10-12 weeks is $160. Sell sell sell. Surprised all analysts think alike. Isn't there a bold analyst who can see through this drama filled company?
  • m
    maddog
    YES ON PROP 10. Surprised the management team thinks the same way. Is there really and diversity and inclusiveness at Essex? The smartest of companies have replaced their CEO. Infact CEO's like Nooyi are even stepping down proactively to transfer the baton. Schall seems to be really wanting to drive ESS into the ground.
    Watch for restatements, abrupt exits. Everything catches up. A CEO in denial and out of touch with customers. The attitude will only change once there is a hard fall. Until then shareholder money is being pocketed via dividends which are not sustainable and cost cutting which will drive customers away. Chatter of a recession in Silicon valley is already happening.
  • m
    maddog
    The conference call answers are a joke related to maintenance and technology being incorporated. I can tell you that Essex has no clue on how to maintain a property in a timely manner. Their vagueness on expenses cannot be timed and they don't have a date for closing is so true. They never close. They are wonderful at telling the market what they want to hear. Trust me these guys have no desire or interest in problem solving. Spot the word "customer service" or "excellence" or "resident interest" or "putting the customer first".
    Enjoy the short ride. ESS will be in a downfall soon. Surprised the board has no control over the CEO and his team.
    Essex will do anything to manages costs by basically cutting out items that they are required to do. So they tell the markets one thing and actually do another or don't even do anything since they have no control of productivity and efficiency of their employees and it starts at the top. It's amazing how employees take the CEO for a ride and he takes the markets and investors for a ride. Essex management walking a community - really....you would see something on Instagram or you would see fixes to problems. It's amazing the stories these guys tell.
  • m
    maddog
    Folks I am surprised that analysts are not putting weightage on Management effectiveness. Essex management are sophisticated story tellers in day to day activities. Essex StEalerS have no ability to hold their management accountable. It is a joke in what stories Essex employees get away with in real day to day interactions with residents. It seems like the wave riding is happening at all levels in Essex. Read on yelp, apartmentratings.com and other places to see how frustrating it is to deal with Essex. Board of Directors seem to be aloof as well. Letting the CEO run the ship without any empathy for customers. I have emails from Essex management that supports the lowest bar in customer service that I have seen in today's digital age. It's shocking to see that the layers are so ineffective in problem solving. Lawyers I bet you can get people to sign up for a class action against these guys for negligence and discrimination of residents.
  • S
    Senor
    Occupancy is terrible and rent rates all along the west coast will be low for next 2years. Occupancy may return but rate definately won’t be there.. I’ll think of buying at 150
  • m
    maddog
    Out of touch bankers and analysts continue upgrading this company as if it is a gem. Inflated PE which should demand higher returns just doesn't line up. Risk free return is negative and the multiple is so much higher than some fast growing companies that ESS is over bought due to hype. Folks if ESS just does what is said it will do, they will be losing money. They have abandoned projects and cut out holding their side of the bargain at many properties. Renters - walk away. Many have been fooled and lied too and by walking away from this business you will send a strong signal to the management and lenders that money doesn't grow on trees. This business is built on pushing the can down the road at every instance they can get. These include lack of productive employees, abandoned projects, ignorance of paying customers, bureaucratic operations, a cozy management team removed from reality of service. I will stick to $160 in 10 weeks. There is no reason for the high financial ratios and multiples. This is a scheme that will eventually blow up when rates normalize.
  • m
    maddog
    Folks, read the fine print in the earnings release. There is no growth. All there are is excuses and financial gimmicks. Share repurchases so the BS duo can continue filling their pockets. Bold statements like they care about residents during this time. All BS like the BS duo. They cannot even return phone calls. The earnings are actually showcased if Essex was going to crush the analyst estimates. All they have done is recycled money from bonds, moved expirations out, used money to prop up the stock price by buying at elevated levels (one would think that they knew how to dollar coast average down), issued notes to fund daily operations. Folks, if operations are profitable why would a business need to use borrowed money. Is the BS duo siphoning money on the sidelines?

    Can't wait for $100....will continue pocketing premiums while patiently waiting for this ship to sink.

    Projects funded 5 years ago have not been completed. The management of funds and operations is wore than a Chinese company with zero transparency.
  • m
    maddog
    The stock market drop over the past few days should recover at some point, but one point to note is that ESS has dropped far more than the S&P and institutional investors have started reducing their holdings. This is based on lack of fundamentals in this company that has borrowed cheaply to build a unsustainable portfolio of apartments. Their tactics to lure prospective residents and continuous story telling (aka lying) to the current residents about grand plans is coming to light. Other than a 3.10% yield this company has actually lost money for buy and hold investor. Why risk your money? Buy an index fund. ESS (Essex SteAlerS) don't deserve a dime of bond or equity money. I wouldn't be surprised if there is a massive turnover at this poorly managed company. What is the board waiting for? There is no originality nor efficient thinking at this company. You will be surprised by the mindless projects they do at their properties, none of which provide benefits to residents.
  • m
    maddog
    Forward P/E at 47.57. Got to be kidding. Operating margin (TTM) at 34.58%. This is only because of lack of proper spending to maintain apartments. Essex SteAlerS have basically abandoned projects that they raised money for. I don't think the word fiduciary is in their books. They are desperately trying to maintain their quarterly payout. Cash balance 50M. Debt 5B+. Folks sell before you are left with nothing. Price/Book (mrq) at 2.31. This stock is not worth the book value of 94.93. The valuation is so skewed that institutional investors are also starting to reduce holdings. I have no confidence or faith in this management team running the show for decades.
  • m
    maddog
    With the events in the world unfolding beyond COVID, one would think that the shady business tactics of the Essex CEO and his team would stop. Instead as usual they have zero empathy or sympathy towards residents. They will give 1-3 months of rent off to bring in residents, allow them to smoke marijuana while turning the other way while continuing to harass current residents and force them to pay rents or go behind their unemployment checks and threaten them with collection agencies.

    What a shame. Isn't this racism and discrimination of another sort? Shouldn't the dividend be cut and Schall's salary be reduced first? What a Board and Chairman and other management team that continues to pocket at the expense of common man. Folks stage a walk out because that is the only way Schall will be fixed. The most shameful company out there.
  • m
    maddog
    Burkart-Schall what is your plan to hold your operations accountable to cleanliness, hygiene and follow through on the memo sent regarding COVID-19. Many such reactionary memos have been sent by Essex during account hacking or some change to online links. These memos are useless since they have no proper operations oversight. By firing property level managers you are just protecting your corporate staff and their lack of ability to do anything meaningful and customer friendly. Do you plan to get out of your office and come and clean the garbage and staircases in your so called 250 properties? What is your plan? You are unable to have anyone competent at property level nor do you hold your own direct VP's accountable. How long do you plan to have sub standard amenities, broken lights, leaking pipes (wasting precious water), zero maintenance.

    Lawyers start lawsuits. Only way to get these guys to come clean.
  • m
    maddog
    Buy puts. This is going downhill fast. The yield is kept artificially inflated.
  • m
    maddog
    The dance around 230 level continues. I can't believe analysts can't see through this company's practices in the real world. 10-yr note will hit 3% in a few months. There is no doubt about it. Wonder if ESS is worth the risk given flat to lower returns. The payout of $7 of yield of 3.08% is just the tip of the iceberg. This stock doesn't deserve to be in the S&P 500 index. They can't even maintain properties they own and manage. Oh and the leases are filled with jargon. Basically a get out of jail free card for their management to have no incentive to perform basic duties.
  • P
    Patrick
    "$450 million aggregate principal amount of 1.700% senior notes due 2028" Would have been much better choice to extent the maturity of these 7 year 1.7% notes to 10, 20 or even 30 years.
  • m
    maddog
    What a run up it's been? The crash will be twice as hard. What goes up must come down and that's even more true for a company with zero ability to solve problems. Apartment vacancies piling up. Incomplete projects is the new look at Essex properties. Money seems to be drying up to pay contractors. Essex management blinded by easy money and profits due to the tech boom. They can't even fix a light bulb which has been shown to 3 layers of management at this company full of story tellers. Starbucks is even shutting doors to train their employees. Wonder if Essex is smart or the market is smarter. Time will tell. Enjoy the ride since the fall will not be fun.