LONDON, UK / ACCESSWIRE / March 27, 2018 / Active-Investors has a free review on Essex Property Trust, Inc. (NYSE: ESS) ("Essex Property") following the Company's announcement that it will begin trading ex-dividend on March 28, 2018. In order to capture the dividend payout, investors must purchase the stock a day prior to the ex-dividend date that is by latest at the end of the trading session on March 27, 2018. Active-Investors has initiated due-diligence on this dividend stock. Register with us for more free research including the one on ESS:
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Dividend Declared
On February 22, 2018, Essex Property announced that its Board of Directors has approved a 6.3% increase to its prior quarterly cash dividend. The Board of Directors has declared a first quarter dividend of $1.86 per share, payable on April 16, 2018, to shareholders of record as of March 29, 2018. On an annualized basis, the dividend represents a distribution of $7.44 per common share.
Essex Property's indicated dividend represents a yield of 3.25% compared to the average dividend yield of 3.78% for the financial sector. The Company has raised dividend for twenty-four consecutive years.
Dividend Insights
Essex Property has a dividend payout ratio of 59.9%, which means that the Company distributes approximately $0.60 for every $1.00 earned. The dividend payout ratio reflects how much amount a company is returning to shareholders versus how much money it is keeping on hand to reinvest in growth, to pay off debt, and/or to add to its cash reserves.
As per analysts' estimates, Essex Property is forecasted to report earnings of $5.11 per share for the next years compared to the Company's annualized dividend of $7.44 per share. One of the primary reasons for the difference between earnings and annualized dividend is that Essex Property is a Real Estate Investment Trust (REIT) which is structured by law to distribute at least 90% of earnings. Moreover, since REITs generate income from owning portfolios of investment real estate, they are likely to have higher depreciation charges.
Since depreciation is a non-cash charge, it does not directly impact the ability of dividend the companies can distribute. For this reason, Fund from Operations (FFO) is calculated by adding depreciation and amortization (D&A) to earnings and subtracting any gains on sales which then provides a better picture of any company's profitability and capacity to pay and to sustain dividends. For instance, Essex Property reported net income of $1.57 per diluted share, for the quarter ended December 31, 2017, compared to net income of $2.98 per diluted share, for the quarter ended December 31, 2016.
On the other hand, Essex Property posted total FFO of $3.01 per diluted share for Q4 2017 compared to total FFO of $2.85 per diluted share for Q4 2016. The Company reported Core FFO of $3.01 per diluted share for Q4 2017 compared to Core FFO of $2.81 per diluted share for Q4 2016. Essex Property's FFO number indicates that the Company should be able to comfortably cover its dividend payout.
About Essex Property Trust, Inc.
Essex Property, an S&P 500 company, is a fully integrated REIT that acquires, develops, redevelops, and manages multifamily residential properties in selected West Coast markets. The Company has currently ownership interests in 247 apartment communities with an additional 7 properties in various stages of active development.
Stock Performance Snapshot
March 26, 2018 - At Monday's closing bell, Essex Property's stock rose 1.51%, ending the trading session at $232.63.
Volume traded for the day: 244.88 thousand shares.
Stock performance in the last month - up 2.36%
After yesterday's close, Essex Property's market cap was at $15.66 billion.
Price to Earnings (P/E) ratio was at 35.55.
The stock has a dividend yield of 3.20%.
The stock is part of the Financial sector, categorized under the REIT - Residential industry. This sector was up 2.6% at the end of the session.
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