Essex Property Trust Acquires JV Partner's 49.9% Interest In Four Communities For Total Purchase Price Of $505M On A Gross Basis
Portfolio Pulse from Benzinga Newsdesk
Essex Property Trust has acquired its JV partner's 49.9% interest in four apartment communities for a total purchase price of $505 million on a gross basis. The portfolio includes 1,480 apartment homes and generated an 11.4% IRR. Essex will recognize approximately $1.5 million in promote income, excluded from Core FFO.
March 25, 2024 | 1:05 pm
News sentiment analysis
Sort by:
Ascending
POSITIVE IMPACT
Essex Property Trust has completed a significant acquisition, enhancing its portfolio with 1,480 apartment homes. This move is expected to positively impact its financial performance, excluding the $1.5 million promote income from Core FFO.
The acquisition of a 49.9% interest in four apartment communities for $505 million represents a significant expansion of Essex Property Trust's portfolio. The transaction's size and the generated 11.4% IRR suggest a positive outlook for the company's asset base and future earnings potential. The promote income of $1.5 million, although excluded from Core FFO, indicates additional financial benefits from the deal. Given these factors, the acquisition is likely to be viewed positively by investors, potentially leading to a short-term increase in ESS's stock price.
CONFIDENCE 90
IMPORTANCE 90
RELEVANCE 100