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Essex Property Trust ROE %

: 3.87% (As of Jun. 2022)
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ROE % is calculated as Net Income attributable to Common Stockholders (Net Income minus dividends to participating security holders) divided by its average Total Stockholders Equity over a certain period of time. Essex Property Trust's annualized net income attributable to common stockholders for the quarter that ended in Jun. 2022 was $228 Mil. Essex Property Trust's average Total Stockholders Equity over the quarter that ended in Jun. 2022 was $5,892 Mil. Therefore, Essex Property Trust's annualized ROE % for the quarter that ended in Jun. 2022 was 3.87%.

The historical rank and industry rank for Essex Property Trust's ROE % or its related term are showing as below:

ESS' s ROE % Range Over the Past 10 Years
Min: 2.95   Med: 7   Max: 9.31
Current: 6.5

During the past 13 years, Essex Property Trust's highest ROE % was 9.31%. The lowest was 2.95%. And the median was 7.00%.

ESS's ROE % is ranked better than
50% of 770 companies
in the REITs industry
Industry Median: 6.50 vs ESS: 6.50

Essex Property Trust ROE % Historical Data

The historical data trend for Essex Property Trust's ROE % can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Essex Property Trust Annual Data
Trend Dec12 Dec13 Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21
ROE %
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 6.95 6.22 7.04 9.31 8.15

Essex Property Trust Quarterly Data
Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22
ROE % Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 4.33 7.96 9.17 4.90 3.87

Competitive Comparison

For the REIT - Residential subindustry, Essex Property Trust's ROE %, along with its competitors' market caps and ROE % data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

   

Essex Property Trust ROE % Distribution

For the REITs industry and Real Estate sector, Essex Property Trust's ROE % distribution charts can be found below:

* The bar in red indicates where Essex Property Trust's ROE % falls into.



Essex Property Trust ROE % Calculation

Essex Property Trust's annualized ROE % for the fiscal year that ended in Dec. 2021 is calculated as

ROE %=Net Income attributable to Common Stockholders (A: Dec. 2021 )/( (Total Stockholders Equity (A: Dec. 2020 )+Total Stockholders Equity (A: Dec. 2021 ))/ count )
=488.554/( (6000.41+5993.603)/ 2 )
=488.554/5997.0065
=8.15 %

Essex Property Trust's annualized ROE % for the quarter that ended in Jun. 2022 is calculated as

ROE %=Net Income attributable to Common Stockholders (Q: Jun. 2022 )/( (Total Stockholders Equity (Q: Mar. 2022 )+Total Stockholders Equity (Q: Jun. 2022 ))/ count )
=228.216/( (5956.983+5827.847)/ 2 )
=228.216/5892.415
=3.87 %

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

In the calculation of annual ROE %, the net income attributable to common stockholders of the last fiscal year and the average total shareholder equity over the fiscal year are used. In calculating the quarterly data, the net income attributable to common stockholders data used here is four times the quarterly (Jun. 2022) net income attributable to common stockholders data. ROE % is displayed in the 30-year financial page.


Essex Property Trust  (NYSE:ESS) ROE % Explanation

ROE % measures the rate of return on the ownership interest (shareholder's equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' equity (also known as net assets or assets minus liabilities). ROE % shows how well a company uses investment funds to generate earnings growth. ROE %s between 15% and 20% are considered desirable.

The factors that affect a company's ROE % can be illustrated with the three-step DuPont Analysis:

ROE %**(Q: Jun. 2022 )
=Net Income/Total Stockholders Equity
=228.216/5892.415
=(Net Income / Revenue )*(Revenue / Total Assets)*(Total Assets / Total Stockholders Equity)
=(228.216 / 1599.912)*(1599.912 / 12664.156)*(12664.156 / 5892.415)
=Net Margin %*Asset Turnover*Equity Multiplier
=14.26 %*0.1263*2.1492
=ROA %*Equity Multiplier
=1.8 %*2.1492
=3.87 %

With this breakdown, it is clear that if a company grows its Net Profit Margin, its Asset Turnover, or its Leverage, it can grow its ROE %.

The factors that affect a company's ROE % can also be illustrated with the five-step DuPont Analysis:

ROE %**(Q: Jun. 2022 )
=Net Income/Total Stockholders Equity
=228.216/5892.415
=(Net Income /Pre-Tax Income) * (Pre-Tax Income/Operating Income) * (Operating Income/Revenue) * (Revenue/Total Assets) * (Total Assets/Total Stockholders Equity)
= (228.216 / 219.304) * (219.304 / 514.552) * (514.552 / 1599.912) * (1599.912 / 12664.156) * (12664.156 / 5892.415)
= Tax Burden * Interest Burden * Operating Margin % * Asset Turnover * Equity Multiplier
= 1.0406 * 0.4262 * 32.16 % * 0.1263 * 2.1492
=3.87 %

Note: The net income attributable to common stockholders data used here is four times the quarterly (Jun. 2022) net income attributable to common stockholders data. The Revenue data used here is four times the quarterly (Jun. 2022) revenue data. The same rule applies to Pre-Tax Income and Operating Income.

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

** The ROE % used above is for Du Pont Analysis only. It is different from the defined ROE % page on our website, as here it uses Net Income instead of Net Income attributable to Common Stockholders in the calculation.


Be Aware

Net income attributable to common stockholders is used.

Because a company can increase its ROE % by having more financial leverage, it is important to watch the equity multiplier when investing in high ROE % companies. Like ROA %, ROE % is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.

Asset light businesses require very few assets to generate very high earnings. Their ROE %s can be extremely high.


Essex Property Trust ROE % Related Terms

Thank you for viewing the detailed overview of Essex Property Trust's ROE % provided by GuruFocus.com. Please click on the following links to see related term pages.


Essex Property Trust Business Description

Essex Property Trust logo
Address
1100 Park Place, Suite 200, San Mateo, CA, USA, 94403
Essex Property Trust owns a portfolio of 253 apartment communities with over 62,000 units and is developing three additional properties with 571 units. The company focuses on owning large, high-quality properties on the West Coast in the urban and suburban submarkets of Southern California, Northern California, and Seattle.
Executives
Pak Barbara officer: Executive Vice President & CFO C/O ESSEX PROPERTY TRUST, INC. 1100 PARK PLACE, SUITE 200 SAN MATEO CA 94403
Hawthorne Maria R director 701 WESTERN AVENUE GLENDALE CA 91201
Berry Adam W officer: Co-Chief Investment Officer C/O ESSEX PROPERTY TRUST, INC. 1100 PARK PLACE, SUITE 200 SAN MATEO CA 94403
Kasaris Mary director C/O ESSEX PROPERTY TRUST, INC. 1100 PARK PLACE, SUITE 200 SAN MATEO CA 94403
Johnson Amal M director C/O MELLANOX TECHNOLOGIES, INC. 350 OAKMEAD PARKWAY, SUITE 100 SUNNYVALE CA 94085
Farias John officer: Group Vice President and CAO C/O ESSEX PROPERTY TRUST, INC 1100 PARK PLACE, SUITE 200 SAN MATEO CA 94403
Kleiman Angela L. officer: Executive Vice President & CFO 1100 PARK PLACE SUITE 200 SAN MATEO CA 94403
Robinson Thomas E director 309 GARRISON FOREST ROAD OWNINGS MILLS MD 21117
Lyons Irving F Iii director C/O ESSEX PROPERTY TRUST, INC. 925 E. MEADOW DRIVE PALO ALTO CA 94303
Sullivan Thomas P. director 525 MARKET STREET, 4TH FLOOR SAN FRANCISCO CA 94133
Scordelis Byron A director
Zinngrabe Claude J. Jr. director 925 EAST MEADOW DRIVE PALO ALTO CA 94303
Sears Janice L. director 1100 PARK PLACE SUITE 200 SAN MATEO CA 94403
Alexander Erik J. officer: Senior Vice President 925 EAST MEADOW DRIVE PALO ALTO CA 94303
Burkart John F. officer: Executive Vice President C/O ESSEX PROPERTY TRUST INC. 1100 PARK PLACE, SUITE 200 SAN MATEO CA 94403

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