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Essex Property Prices $350 Million Senior Unsecured Notes

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Essex Property Trust, Inc. (ESS - Free Report) announced that it has priced the aggregate principal amount of senior unsecured notes worth $350 million. This is likely to add to the financial flexibility of this San Mateo, CA-based residential real estate investment trust.

The senior unsecured notes carry a rate of interest of 3.625% per annum. Interest will be paid on a semi-annual basis on May 1 and Nov 1, with the first slated to be paid on Nov 1, 2017. The notes are slated to mature on May 1, 2027.
 
Essex Property is engaged in the acquisition, development, redevelopment and management of multifamily residential properties in supply-constrained markets. The company intends to utilize the net proceeds for repayment of debts under its unsecured line of credit facilities. Also, it plans to use the proceeds for meeting working capital requirements and other general corporate purposes.

Currently, Essex Property carries a Zacks Rank #3 (Hold).

Shares of Essex Property outperformed the Zacks categorized REIT and Equity Trust - Residential industry in the last six months. During this time, shares of the company increased 8.2%, while the industry gained 6.7%.


Investors interested in the REIT space may consider better-ranked stocks like Global Net Lease, Inc. (GNL - Free Report) , CoreSite Realty Corporation (COR - Free Report) and CorEnergy Infrastructure Trust, Inc. . Each of these stocks carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

In the last 30 days, Global Net Lease’s FFO per share for first-quarter 2017 remained unchanged at 60 cents.

In the last 30 days, CoreSite Realty’s FFO per share for first-quarter 2017 increased 0.9% to $1.06.

CorEnergy Infrastructure Trust’s first-quarter 2017 FFO per share estimates moved up 6.5% to $1.14, in the last 30 days.

Note: FFO, a widely used metric to gauge the performance of REITs, is obtained after adding depreciation and amortization and other non-cash expenses to net income. All EPS numbers presented in this write up represent FFO per share.

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