Essex Announces 21% Increase in Q3 FFO

PALO ALTO-Locally-based apartment REIT Essex Property Trust is reporting a 21% increase in its Funds From Operations for the third quarter ended Sept. 30, in part due to strong rent growth in all West Coast markets.

During the quarter, Essex reported FFO of $21.3 million, or $1.02 per diluted share. In 1999, the third quarter produced FFO of $17.3 million, or 84 cents per diluted share. Revenues for the third quarter of 2000 were $47.4 million, compared to $37.7 million in the comparable 1999 quarter, a 25% increase. Net income for the quarter was $10.2 million, or $.54 per diluted share, down from $13.1 million, or $.71 per diluted share in the comparable quarter of 1999, which included a $4.7 million gain on sales of real estate.

The Northwestern region experienced the greatest improvement since last quarter, attributable to improved occupancy and higher rents, says Keith R. Guericke, Essex’s President and Chief Executive Officer, as part of the earnings announcement. During the third quarter, Essex’s same-property multifamily net operating income increased by 18.9% in the San Francisco Bay Area, 11.8% in the Pacific Northwest, and 6.9% in Southern California, for an average increase of 13%.