Essex Property Trust – Value Investment Fund Buy

Today, May 24, 2022,  at 10:50 AM the market price for Essex Property Trust, Inc. dropped below the ‘Buy’ point of $278 triggering the ‘Buy’ at $278 per share. Altogether, the Fund purchased 71.6846 shares. Total investment including a $1 per share transaction fee was $20,000.

Recently, the Fund reevaluated Essex Property Trust, Inc. and increased the company’s intrinsic value to $285 per share. In an article written in January of 2021, the Facilitator determined intrinsic value at $256 per share. In the course of one year, many market forces have elevated this intrinsic value higher. With real estate investment trusts (REITs), intrinsic value is strongly tied to fair market value of properties. At the end of 2020, the overall fair market value of the entire portfolio of apartments for Essex was estimated at net assets value (adjusted for closing costs, costs to sell, pay-off of associated debt and costs to eliminate book balance of financing outlays) of $19.14 Billion. This made each share worth approximately $283. During the last 16 months, the market value of real estate has jumped over 16%. Using a mere 12% adjustment to this portfolio, the modified net assets value now exceeds $21.8 Billion. This alone adds $36 per share in value. Utilizing net assets value by itself warrants an intrinsic value of $319 per share. And this assumes only a 12% increase in value over 16 months.