S&P rates Essex preferreds BB+

Standard & Poor's said it assigned a BB+ rating to Essex Property Trust Inc.'s $65 million of series H 7.125% perpetual preferred shares.

The real estate investment trust plans to use the $63 million in proceeds to repay, in whole or in part, its $80 million of series B preferred units.

Essex (BBB/stable) has a portfolio of around $4.4 billion in multifamily properties. The company's assets are geographically concentrated in West Coast markets, with the majority of net operating income generated in California, the agency said.

The transaction marginally reduces Essex's dividend payout obligations and should provide a negligible benefit to fixed-charge and total coverage metrics, the agency added.

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