Essex Property Trust ESS posted weak third-results that were roughly in line with our expectations, so our fair value estimate is unchanged. Total revenue for this apartment landlord edged down 1.4% on a year-over-year basis, but that relative resiliency was due to properties that came on line in 2009. Same-store sales paint a far more grim picture of how the firm's West Coast footprint's elevated unemployment rate is taking a bite out of earnings power. On a same-store basis, year-over-year revenue and net operating income dropped 4.7% and 8.0%, respectively. With unemployment expected to remain high in California and the Seattle metro area, a rough near term is likely for Essex. Still, the firm's decent financial health should tide it through the recession.

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