Essex Property Trust, Inc. (NYSE:ESS)

CAPS Rating: 4 out of 5

The Company operates as a self-administered and self-managed real estate investment trust which is engaged primarily in the ownership, operation, management, acquisition, development and redevelopment of real estate.


Player Avatar Gedunken (30.71) Submitted: 9/26/2007 2:42:14 PM : Outperform Start Price: $89.80 ESS Score: +82.20

With the housing slump, more people will be entering the rental market. Although condo and housing foreclosures will likely result in more rental units coming on-line many of these units will be able to be picked up cheap by well financed rental REITs and will boost their long term return. Many of the new rentals will also be in less desirable areas rather than the higher demand urban areas closer to downtown and work.

Rental prices are currently increasing but pricing power may be under some pressure as the residential housing bubble unwinds, but the longer term prospects for rental REITS is bright.

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