Shares of Essex Property Trust, Inc. (NYSE: ESS) have rallied 23.1% in the past six months, outperforming the industry's growth of 16.2%.
This residential REIT, which has a robust property base in the West Coast market, is poised to benefit from the healthy demand for its residential units. It is also banking on technology, scale and organizational capabilities to drive growth.
Analysts also seem bullish on this Zacks Rank #2 (Buy) stock. The Zacks Consensus Estimate for the company's 2024 FFO per share has been revised two cents upward over the past week to $15.53.
Image Source: Zacks Investment Research
Let us now decipher the factors behind the surge in the stock price.
This residential REIT's substantial exposure to the West Coast market has offered ample scope to enhance its top line. The West Coast is home to several innovation and technology companies that drive job creation and income growth. The West Coast region has higher median household incomes, an increased percentage of renters than owners and favorable demographics.
With layoffs in the tech industry slowing and return to office gaining momentum, the West Coast markets are likely to see an increase in renter demand in the near term. Also, due to the ...
