Essex Property Trust, Inc. (NYSE:ESS) announced today that its
operating partnership, Essex Portfolio, L.P. (the “Issuer”), priced
an underwritten public offering of $300 million aggregate principal
amount of 2.550% senior notes due 2031 (the “Notes”). The Notes
were priced at 99.367% of par value with a yield to maturity of
2.622%. Interest is payable semiannually at an interest rate per
annum of 2.550% on June 15 and December 15 of each year with the
first interest payment due December 15, 2021. The Notes mature on
June 15, 2031. The Notes will be the senior unsecured obligations
of the Issuer and will be fully and unconditionally guaranteed by
Essex Property Trust, Inc. The Notes offering is expected to close
on June 1, 2021, subject to the satisfaction of certain closing
conditions.
The Issuer expects to use the net proceeds to repay upcoming
debt maturities, including to fund the redemption of $300.0 million
aggregate principal amount (plus the make-whole amount and accrued
and unpaid interest) of its outstanding 3.375% senior unsecured
notes due January 2023, and for other general corporate and working
capital purposes.
Wells Fargo Securities, LLC, Citigroup Global Markets Inc., J.P.
Morgan Securities LLC, U.S. Bancorp Investments, Inc., MUFG
Securities Americas Inc. and PNC Capital Markets LLC served as
joint book-running managers. BNP Paribas Securities Corp., Mizuho
Securities USA LLC, Scotia Capital (USA) Inc. and Truist
Securities, Inc. served as senior co-managers and Capital One
Securities, Inc. and Regions Securities LLC served as co-managers
for the offering.
The Issuer and Essex Property Trust, Inc. have filed a
registration statement (including a preliminary prospectus
supplement and a prospectus) with the U.S. Securities and Exchange
Commission (“SEC”) for the offering to which this communication
relates. You may get these documents for free by searching the SEC
online database on the SEC website at http://www.sec.gov.
Alternatively, the Issuer, Essex Property Trust, Inc., any
underwriter or any dealer participating in the offering will
arrange to send you the prospectus supplement and prospectus if you
request it from (i) Wells Fargo Securities, LLC toll free at
1-800-645-3751, (ii) Citigroup Global Markets Inc. toll free at
1-800-831-9146, (iii) J.P. Morgan Securities LLC collect at
1-212-834-4533 or (iv) U.S. Bancorp Investments, Inc. toll free at
1-877-558-2607.
This press release shall not constitute an offer to sell or the
solicitation of an offer to buy any securities nor will there be
any sale of these securities in any jurisdiction in which, or to
any person to whom, such offer, solicitation or sale would be
unlawful.
About Essex Property Trust,
Inc.
Essex Property Trust, Inc. (“Essex”), an S&P 500 company, is
a fully integrated real estate investment trust (“REIT”) that
acquires, develops, redevelops, and manages multifamily residential
properties in selected West Coast markets. Essex currently has
ownership interests in 244 apartment communities comprising
approximately 60,000 apartment homes with an additional 5
properties in various stages of active development.
Safe Harbor Statement
This press release includes “forward-looking statements” within
the meaning of Section 27A of the Securities Act of 1933, as
amended, and Section 21E of the Securities Exchange Act of 1934, as
amended. Forward-looking statements are statements which are not
historical facts, including statements regarding our expectations,
estimates, assumptions, hopes, intentions, beliefs and strategies
regarding the future. Words such as “expects,” “assumes,”
“anticipates,” “may,” “will,” “intends,” “plans,” “projects,”
“believes,” “seeks,” “future,” “estimates,” and variations of such
words and similar expressions are intended to identify such
forward-looking statements. Such forward-looking statements
include, among other things, statements related to the Notes
offering and the expected use of the net proceeds therefrom.
While our management believes the assumptions underlying its
forward-looking statements are reasonable, such forward-looking
statements involve known and unknown risks, uncertainties and other
factors, many of which are beyond our control, which could cause
our actual results, performance or achievements to be materially
different from any future results, performance or achievements
expressed or implied by such forward-looking statements. We cannot
assure the future results or outcome of the matters described in
these statements; rather, these statements merely reflect our
current expectations of the approximate outcomes of the matters
discussed. Factors that might cause our actual results, performance
or achievements to differ materially from those expressed or
implied by these forward-looking statements include, but are not
limited to, the following: the continued impact of the COVID-19
pandemic, which remains inherently uncertain as to duration and
severity, and any additional governmental measures taken to limit
its spread and other potential future outbreaks of infectious
diseases or other health concerns could continue to adversely
affect our business and tenants, and cause a significant downturn
in general economic conditions, the real estate industry, and the
markets in which our communities are located; we may fail to
achieve our business objectives; the actual completion of
development and redevelopment projects may be subject to delays;
the stabilization dates of such projects may be delayed; we may
abandon or defer development or redevelopment projects for a number
of reasons, including changes in local market conditions which make
development less desirable, increases in costs of development,
increases in the cost of capital or lack of capital availability,
resulting in losses; the total projected costs of current
development and redevelopment projects may exceed expectations;
such development and redevelopment projects may not be completed;
development and redevelopment projects and acquisitions may fail to
meet expectations; estimates of future income from an acquired
property may prove to be inaccurate; occupancy rates and rental
demand may be adversely affected by competition and local economic
and market conditions; there may be increased interest rates and
operating costs; we may be unsuccessful in the management of our
relationships with our co-investment partners; future cash flows
may be inadequate to meet operating requirements and/or may be
insufficient to provide for dividend payments in accordance with
REIT requirements; changes in laws or regulations; the terms of any
refinancing may not be as favorable as the terms of existing
indebtedness; unexpected difficulties in leasing of development
projects; volatility in financial and securities markets; our
failure to successfully operate acquired properties; unforeseen
consequences from cyber-intrusion; our inability to maintain our
investment grade credit rating with the rating agencies; government
approvals, actions and initiatives, including the need for
compliance with environmental requirements; and those further
risks, special considerations, and other factors referred to in our
most recent annual report on Form 10-K, quarterly reports on Form
10-Q, current reports on Form 8-K, and the prospectus supplement
and related prospectus for this offering, as well as our other
filings with the SEC that are incorporated by reference in such
prospectus supplement and accompanying prospectus. Additionally,
the risks, uncertainties and other factors set forth above or
otherwise referred to in the reports that we have filed with the
SEC may be further amplified by the global impact of the COVID-19
pandemic. All forward-looking statements are made as of the date
hereof, we assume no obligation to update or supplement this
information for any reason, and therefore, they may not represent
our estimates and assumptions after the date of this press
release.
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version on businesswire.com: https://www.businesswire.com/news/home/20210517005958/en/
Rylan Burns Vice President of Finance & Investor Relations
(650) 655-7800 rburns@essex.com
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