Exhibit 99.2
E S S E X P R O P E R T Y T R U S T, I N C.
Operating Results Three Months Ended Nine Months Ended
(Dollars in thousands, except per share amounts) September 30, September 30,
------------------------------------------------------------------------------ ---------------- ---------------- ----------------
2003 2002 2003 2002
---------------- ---------------- ---------------- ----------------
Revenues:
Rental $ 53,431 $ 42,337 $ 161,131 $ 126,223
Other property 1,824 1,292 5,301 4,004
---------------- ---------------- ---------------- ----------------
Total property revenues 55,255 43,629 166,432 130,227
Interest and other 2,982 5,166 9,247 18,961
---------------- ---------------- ---------------- ----------------
58,237 48,795 175,679 149,188
---------------- ---------------- ---------------- ----------------
Expenses:
Property operating 18,526 12,838 54,927 37,412
Depreciation and amortization 12,308 9,129 35,473 27,229
Interest 10,528 8,621 31,858 26,062
Amortization of deferred financing costs 333 147 825 442
General and administrative 1,678 1,482 5,208 4,747
---------------- ---------------- ---------------- ----------------
Total expenses 43,373 32,217 128,291 95,892
---------------- ---------------- ---------------- ----------------
Income from continuing operations before minority interests
and discontinued operations 14,864 16,578 47,388 53,296
Minority interests (5,604) (5,964) (17,247) (18,313)
---------------- ---------------- ---------------- ----------------
Income from continuing operations 9,260 10,614 30,141 34,983
Discontinued operations (net of minority interests):
Operating income from real estate sold -- -- -- 225
Gain on sale of real estate -- -- -- 8,061
---------------- ---------------- ---------------- ----------------
Net income available to common stockholders $ 9,260 $ 10,614 $ 30,141 $ 43,269
================ ================ ================ ================
Net income per share - basic $ 0.44 $ 0.58 $ 1.43 $ 2.34
================ ================ ================ ================
Net income per share - diluted $ 0.43 $ 0.57 $ 1.42 $ 2.32
================ ================ ================ ================
See Company's 10-K and 10-Q for additional disclosures
F-1
Operating Results
Selected Line Item Detail Three Months Ended Nine Months Ended
(Dollars in thousands) September 30, September 30,
---------------------------------------------------------------------------------- ---------------- ---------------- ----------------
2003 2002 2003 2002
---------------- ---------------- ---------------- ----------------
Interest and other
Interest income $ 190 $ 1,735 $ 652 $ 4,662
Equity income in co-investments 1,848 1,835 5,458 7,135
Fee income 913 652 2,580 2,263
Gain on sale of co-investment activities, net -- 19 -- 1,408
Miscellaneous - non-recurring 31 925 557 3,493
---------------- ---------------- ---------------- ----------------
Interest and other $ 2,982 $ 5,166 $ 9,247 $ 18,961
================ ================ ================ ================
Property operating expenses
Maintenance and repairs $ 4,540 $ 2,965 $ 12,476 $ 8,131
Real estate taxes 4,407 3,158 13,144 9,426
Utilities 3,303 2,050 9,015 6,333
Administrative 4,377 3,403 14,950 10,075
Advertising 1,016 658 2,878 2,011
Insurance 883 604 2,464 1,436
---------------- ---------------- ---------------- ----------------
Property operating expenses $ 18,526 $ 12,838 $ 54,927 $ 37,412
================ ================ ================ ================
General and administrative
Total general and administrative $ 3,134 $ 2,819 $ 9,616 $ 9,448
Allocated to property operating expense - administrative (697) (603) (2,051) (1,783)
Allocated to Essex Management Corporation (615) (532) (1,907) (2,010)
Capitalized and incremental to real estate under development (144) (202) (450) (908)
---------------- ---------------- ---------------- ----------------
Net general and administrative $ 1,678 $ 1,482 $ 5,208 $ 4,747
================ ================ ================ ================
Minority interests
Limited partners of Essex Portfolio, L.P. $ 992 $ 1,318 $ 3,242 $ 4,311
Perpetual preferred distributions 4,580 4,580 13,740 13,739
Series Z incentive units -- 39 175 158
Third party ownership interests 32 27 90 105
---------------- ---------------- ---------------- ----------------
Minority interests $ 5,604 $ 5,964 $ 17,247 $ 18,313
================ ================ ================ ================
See Company's 10-K and 10-Q for additional disclosures
F-2
Funds From Operations Three Months Ended Nine Months Ended
(Dollars in thousands, except per share amounts) September 30, September 30,
--------------------------------------------------------------------------- ---------------- ---------------- ----------------
2003 2002 2003 2002
---------------- ---------------- ---------------- ----------------
Funds From Operations
Income from continuing operations before
minority interests and discontinued operations $ 14,864 $ 16,578 $ 47,388 $ 53,296
Adjustments:
Gain on sale of co-investment activities, net -- (19) -- (1,408)
Depreciation and amortization 12,308 9,129 35,473 27,229
Depr. and amort. - unconsolidated co-investments 2,663 2,170 7,071 5,892
Minority interests (4,612) (4,607) (13,829) (13,816)
Income from discontinued operations -- -- -- 225
Depreciation - discontinued operations -- -- -- 191
---------------- ---------------- ---------------- ----------------
Funds from operations $ 25,223 $ 23,251 $ 76,103 $ 71,609
================ ================ ================ ================
Components of the change in FFO
Same property NOI $ (1,221) $ (4,210)
Non-same property NOI 7,159 22,900
Income and depreciation from discontinued operations -- (416)
Other - corporate and unconsolidated co-investments (1,672) (7,127)
Interest expense and amortization of deferred financing (2,093) (6,179)
General and administrative (196) (461)
Minority interests (5) (13)
---------------- ----------------
Funds from operations $ 1,972 $ 4,494
================ ================
Funds from Operations Per Share - Diluted $ 1.07 $ 1.12 $ 3.23 $ 3.42
================ ================ ================ ================
Percentage Increase -4.5% -5.6%
================ ================
Weighted average number of shares outstanding diluted (1) 23,647,225 20,829,211 23,535,160 20,962,971
================ ================ ================ ================
(1) Assumes conversion of all outstanding operating partnership interests in the Operating Partnership into
shares of the Company's common stock.
See Company's 10-K and 10-Q for additional disclosures
F-3
Balance Sheet
(Dollars in thousands)
September 30, 2003 December 31, 2002
--------------------------------------------------------------------------- -------------------
Real Estate:
Land and land improvements $ 392,156 $ 368,712
Buildings and improvements 1,212,194 1,147,244
------------------- -------------------
1,604,350 1,515,956
Less: accumulated depreciation (227,300) (191,821)
------------------- -------------------
1,377,050 1,324,135
Investments 88,831 61,212
Real estate under development 96,203 143,756
------------------- -------------------
1,562,084 1,529,103
Cash and cash equivalents 20,472 17,827
Other assets 71,077 66,532
Deferred charges, net 5,448 6,272
------------------- -------------------
Total assets $ 1,659,081 $ 1,619,734
=================== ===================
Mortgage notes payable $ 664,596 $ 677,563
Lines of credit 162,700 126,500
Other liabilities 61,854 61,827
------------------- -------------------
889,150 865,890
Minority interests 263,683 262,530
Stockholders' Equity:
Convertible preferred stock -- --
Common stock 2 2
Cumulative redeemable preferred stock, liquidation value 25,000 --
Additional paid-in-capital 544,252 535,125
Distributions in excess of accumulated earnings (63,006) (43,813)
------------------- -------------------
Total liabilities and stockholders' equity $ 1,659,081 $ 1,619,734
=================== ===================
See Company's 10-K and 10-Q for additional disclosures
F-4
Debt Summary - September 30, 2003
(Dollars in thousands)
Percentage of Weighted Weighted
Total Balance Average Average Maturity
Debt Outstanding Interest Rate (1) In Years
---------- ------------- ---------------- --------------
Mortgage notes payable
Fixed rate - secured 72% $ 595,024 6.9% 6.9
Tax exempt variable (2) 8% 69,572 3.7% 22.2
-------------- ---------------- --------------
Total mortgage notes payable 664,596 6.5% 8.5
==============
Lines of credit (3) 20% 162,700 2.3%
---------- -------------- ----------------
Total debt 100% $ 827,296 5.7%
========== ============== ================
Scheduled principal payments (excludes lines of credit)
2003 $ 1,689
2004 7,901
2005 41,003
2006 20,397
2007 63,130
Thereafter 530,476
--------------
Total $ 664,596
==============
Interest expense coverage is 3.6 times earnings before gain, interest, taxes, depreciation and amortization.
Capitalized interest for the quarter ended September 30, 2003 was $1,239.
(1) Weighted average interest rate for variable rate debt are approximate current values.
(2) Interest rate protection agreements cap the total all in interest rate at a range of 7.1% to 7.3%.
These agreements expire between 2003 and 2004.
(3) One line of credit commitment is $185 million and matures in May 2004. A second line of credit commitment is $30 million
and matures in December 2003. Interest on these lines is based on a tiered rate structure tied to the Company's
corporate ratings and is currently at LIBOR plus 1.10%.
See Company's 10-K and 10-Q for additional disclosures
F-5
Capitalization - September 30, 2003
(Dollars in thousands, except per share data)
Total debt $ 827,296
==============
Common stock and potentially dilutive securities
Common stock outstanding 21,187
Limited partnership units (1) 2,325
Options-treasury method 156
--------------
Total common stock and potentially dilutive securities 23,668 shares
Common stock price per share as of September 30, 2003 $ 62.710
--------------
Market value of common stock and potentially dilutive securities $ 1,484,220
Perpetual preferred units/stock $ 235,000 8.626% weighted average pay rate
--------------
Total equity capitalization $ 1,719,220
--------------
Total market capitalization $ 2,546,516
==============
Ratio of debt to total market capitalization 32.5%
==============
(1)Assumes conversion of all outstanding operating partnership interests in the
Operating Partnership into shares of the Company's common stock.
See Company's 10-K and 10-Q for additional disclosures
F-6
Property Operating Results - Quarter ended September 30, 2003 and 2002
(Dollars in thousands)
Southern California Northern California Pacific Northwest Other real estate assets(1) Total
------------------------- -------------------------- ------------------------- ------------------------- -------------------------
2003 2002 % Change 2003 2002 % Change 2003 2002 % Change 2003 2002 % Change 2003 2002 % Change
-------- -------- ------- -------- -------- -------- -------- -------- ------- -------- -------- ------- -------- -------- -------
Revenues:
Same property revenues $17,914 $17,263 3.8% $12,189 $13,589 -10.3% $10,032 $10,534 -4.8% $ -- $ -- n/a $40,135 $41,386 -3.0%
Non same property revenues(2) 9,270 1,297 2,910 811 -- -- 2,940 135 15,120 2,243
-------- -------- -------- -------- -------- -------- -------- -------- -------- --------
Total Revenues $27,184 $18,560 $15,099 $14,400 $10,032 $10,534 $ 2,940 $ 135 $55,255 $43,629
-------- -------- -------- -------- -------- -------- -------- -------- -------- --------
Property operating expenses:
Same property operating expenses $ 5,155 $ 5,104 1.0% $ 3,836 $ 3,702 3.6% $ 3,259 $ 3,474 -6.2% $ -- $ -- n/a $12,250 $12,280 -0.2%
Non same property operating expenses(2) 3,442 264 1,063 229 -- -- 1,771 65 6,276 558
-------- -------- -------- -------- -------- -------- -------- -------- -------- --------
Total property operating expenses $ 8,597 $ 5,368 $ 4,899 $ 3,931 $ 3,259 $ 3,474 $ 1,771 $ 65 $18,526 $12,838
-------- -------- -------- -------- -------- -------- -------- -------- -------- --------
Net operating income:
Same property net operating income $12,759 $12,159 4.9% $ 8,353 $ 9,887 -15.5% $ 6,773 $ 7,060 -4.1% $ -- $ -- n/a $27,885 $29,106 -4.2%
Non same property operating income(2) 5,828 1,033 1,847 582 -- -- 1,169 70 8,844 1,685
-------- -------- -------- -------- -------- -------- -------- -------- -------- --------
Total net operating income $18,587 $13,192 $10,200 $10,469 $ 6,773 $ 7,060 $ 1,169 $ 70 $36,729 $30,791
======== ======== ======== ======== ======== ======== ======== ======== ======== ========
Same property operating margin 71% 70% 69% 73% 68% 67% n/a n/a 69% 70%
======== ======== ======== ======== ======== ======== ======== ======== ======== ========
Same property turnover percentage 61% 68% 69% 67% 70% 70% n/a n/a 66% 68%
======== ======== ======== ======== ======== ======== ======== ======== ======== ========
Same property concessions $ 203 $ 212 $ 487 $ 327 $ 508 $ 290 $ -- $ -- $ 1,198 $ 829
======== ======== ======== ======== ======== ======== ======== ======== ======== ========
Average same property average concessions $ 274 $ 256 $ 786 $ 543 $ 660 $ 376 $ -- $ -- $ 562 $ 377
per turn (In dollars) ======== ======== ======== ======== ======== ======== ======== ======== ======== ========
Net operating income percentage of total 51% 43% 28% 34% 18% 23% 3% 0% 100% 100%
======== ======== ======== ======== ======== ======== ======== ======== ======== ========
Loss to lease(3) $ 6,403 $(1,090) $ (77) $ n/a $ 5,236
======== ======== ======== ======== ========
Loss to lease as a percentage 5.3% -1.9% -0.1% n/a 2.6%
of rental income ======== ======== ======== ======== ========
(1) Includes apartment communities located in other geographic areas, other rental properties and commercial properties.
(2) Includes properties which subsequent to June 30, 2002, were either acquired, in a stage of development or redevelopment without stabilized operations.
(3) Loss to lease represents the annualized difference between market rents (without considering the impact of rental concessions)
and contractual rents. These numbers include the Company's pro-rata interest in unconsolidated properties.
Reconciliation of apartment units at end of period
Same property consolidated apartment units 4,869 4,869 3,597 3,597 4,402 4,402 -- -- 12,868 12,868
======== ======== ======== ======== ======== ======== ======== ======== ======== ========
Consolidated Apartment Units 8,143 5,460 4,007 3,737 4,402 4,402 578 -- 17,130 13,599
Down REIT 1,360 1,360 170 170 301 301 -- -- 1,831 1,831
Joint Venture 5,277 3,930 116 116 741 741 -- -- 6,134 4,787
Under Development 686 689 682 832 -- -- -- -- 1,368 1,521
-------- -------- -------- -------- -------- -------- -------- -------- -------- --------
Total apartment units at end of period 15,466 11,439 4,975 4,855 5,444 5,444 578 -- 26,463 21,738
======== ======== ======== ======== ======== ======== ======== ======== ======== ========
Percentage of total 58% 53% 19% 22% 21% 25% 2% 0% 100% 100%
======== ======== ======== ======== ======== ======== ======== ======== ======== ========
Average same property financial occupancy 97.0% 96.3% 95.6% 96.8% 94.8% 94.8% 0.0% 0.0% 96.0% 96.1%
======== ======== ======== ======== ======== ======== ======== ======== ======== ========
See Company's 10-K and 10-Q for additional disclosures
F-7
Same Property Revenue by County - Quarters ended September 30, 2003, September 30, 2002 and June 30, 2003
(Dollars in thousands)
September 30 September 30, June 30,
Units 2003 2002 % Change 2003 % Change
------- ----------- ------------- -------- ----------- --------
Southern California
Ventura County 989 $ 3,296 $ 3,177 3.7% $ 3,290 0.2%
Los Angeles County 2,873 10,754 10,319 4.2% 10,449 2.9%
Orange County 783 3,216 3,158 1.8% 3,189 0.8%
San Diego County 224 648 609 6.4% 610 6.2%
------- ----------- ------------- -----------
Total Southern California 4,869 $ 17,914 $ 17,263 3.8% $ 17,538 2.1%
------- ----------- ------------- -----------
Northern California
San Francisco County 99 $ 347 $ 365 -4.9% $ 350 -0.9%
Santa Clara County 1,556 5,517 6,146 -10.2% 5,843 -5.6%
Alameda County 1,116 3,317 3,791 -12.5% 3,557 -6.7%
Contra Costa County 826 3,008 3,287 -8.5% 3,091 -2.7%
------- ----------- ------------- -----------
Total Northern California 3,597 $ 12,189 $ 13,589 -10.3% $ 12,841 -5.1%
------- ----------- ------------- -----------
Pacific Northwest
Seattle 3,527 $ 8,331 $ 8,666 -3.9% $ 8,444 -1.3%
Portland 875 1,701 1,868 -8.9% 1,770 -3.9%
------- ----------- ------------- -----------
Total Pacific Northwest 4,402 $ 10,032 $ 10,534 -4.8% $ 10,214 -1.8%
------- ----------- ------------- -----------
Total same property revenues 12,868 $ 40,135 $ 41,386 -3.0% $ 40,593 -1.1%
======= =========== ============= ======== =========== ========
See Company's 10-K and 10-Q for additional disclosures
F-8
Development Communities - September 30, 2003
(Dollars in millions)
Total Estimated
Estimated Incurred Remaining Initial Stabilized % %
Project Name Location Units Cost to Date Cost Occupancy Operations Leased Occupied
------------------------------------------- ------------------- ------- ------------ ---------- ---------- ----------- ----------- -------- ----------
Development Communities
-------------------------------------------
Direct Development - Consolidated
The San Marcos (formerly Vista del Mar) Richmond, CA 312 $ 52.3 $ 52.0 $ 0.3 Jul-02 Oct-03 96% 90%
Hidden Valley-Parker Ranch(1) Simi Valley, CA 324 46.0 35.7 10.3 Nov-03 Sep-04 n/a n/a
The San Marcos Phase II Richmond, CA 120 23.9 8.5 15.4 Jun-04 Oct-04 n/a n/a
------- ------------- ----------- -----------
Subtotal - direct development 756 $ 122.2 $ 96.2 $ 26.0
Joint Venture Transactions - Unconsolidated(2)
River Terrace Santa Clara, CA 250 $ 56.8 25.8 $ 31.0 May-04 Mar-05 n/a n/a
Chesapeake San Diego, CA 230 44.9 27.1 17.8 Apr-04 Dec-04 n/a n/a
Kelvin Avenue Irvine, CA 132 5.8 $ 5.8 0.0 n/a n/a
------- ------------- ----------- -----------
Total - development 1,368 $ 229.7 $ 154.9 $ 74.8
======= ============= =========== ===========
Stabilized Communities - Third Quarter 2003
-------------------------------------------
None
(1)The Company acquired bond financing which closed in December 2002. The Company has a 75% interest in this development project.
(2)The Company has a 21.4% interest in development projects owned by the Fund.
See Company's 10-K and 10-Q for additional disclosures
F-9
Redevelopment Communities - September 30, 2003
(Dollars in thousands)
Total Estimated
Estimated Incurred Remaining Redevelopment Restabilized
Project Name Units Cost to date Cost Start Operations
------------------------------------------ ------- ---------- ---------- ---------- ------------- ---------------
Hillcrest Park - Phase II 608 $ 3,429 $ 755 $ 2,674 Apr-03 (1)
Rosebeach (2) 174 3,537 1,788 1,749 Mar-03 (1)
------- ---------- ---------- ----------
Total 782 $ 6,966 $ 2,543 $ 4,423
======= ========== ========== ==========
Re-stabilized Communities - Third Quarter 2003
------------------------------------------
None
(1)Restabilized operations is defined as the month that the property reaches at least 95% occupancy after
completion of the redevelopment project. A component of these redevelopments are upgrades to unit interiors.
These will be completed in the normal course of unit turnover.
(2)The Company has a 21.4% interest in the asset owned by the Fund.
See Company's 10-K and 10-Q for additional disclosures
F-10
Investments - September 30, 2003 Debt $62.710
------------------------------------- Down Value of Essex
(Dollars in thousands) Book Estimated Interest Maturity REIT Down REIT Equity
Value Value(1) Amount Type Rate Date Units Unit Value(2)
--------------------------------------------------------------- --------- ------------------------------------- -------- --------- ---------
Down REIT's
Highridge, Rancho Palos Verde, CA $ 19,784 Fixed 6.26% Jun-07
Anchor Village, Mukilteo, WA 10,750 Var/bonds 5.50% Dec-27
Barkley Apartments, Anaheim, CA 5,274 Fixed 6.63% Feb-09
Brookside Oaks, Sunnyvale, CA 14,928 Fixed 7.90% Oct-10
Capri at Sunny Hills, Fullerton, CA 12,296 Fixed 5.37% Aug-07
Hearthstone, Santa Ana, CA 9,959 Fixed 7.01% Jun-08
Montejo, Garden Grove, CA 6,145 Fixed 6.98% Feb-11
Treehouse, Santa Ana, CA 8,273 Fixed 6.98% Feb-11
Valley Park, Fountain Valley, CA 10,481 Fixed 6.98% Feb-11
Villa Angelina, Placentia, CA 14,172 Fixed 6.98% Feb-11
--------
$ 12,894 $ 213,961 112,062 1,469 $ 92,120 $ 9,779
Value of Company
Joint Ventures Equity Ownership
Essex Apartment Value Fund, L.P. -------- ---------
Andover Park, Beaverton, OR 12,281 Fixed 6.60% Oct-11
Vista Del Rey (El Encanto), Tustin, CA 7,904 Fixed 6.95% Feb-11
Rosebeach, La Mirada, CA 8,344 Fixed 7.09% Feb-11
Hunt Club, Lake Oswego, CA 11,565 Fixed 7.05% Feb-11
The Crest, Pomona, CA 35,500 Fixed 7.99% Jul-05
Foxborough (Woodland), Orange, CA 4,852 Fixed 7.84% Jul-09
The Arboretum at Lake Forest, Lake Forest, CA 23,054 Fixed 5.16% Feb-10
Ocean Villas, Oxnard, CA 9,960 Fixed 5.42% Apr-13
Villas at Carlsbad, Carlsbad, CA 9,590 Fixed 5.03% Aug-11
Huntington Villas, Huntington Beach, CA 38,330 Fixed 4.64% May-10
The Villas at San Dimas, San Dimas, CA 13,007 Fixed 4.67% May-10
The Villas at Bonita, San Dimas, CA 8,275 Fixed 4.67% May-10
Villa Venetia, Costa Mesa, CA 53,803 Fixed 4.58% May-13
Coronado at Newport - North, Newport Beach, CA - 49.9% (3) --
Coronado at Newport - South, Newport Beach, CA - 49.9% (3) --
Kelvin Avenue, Irvine, CA (development) --
Chesapeake, San Diego, CA (development) --
Rivermark, Santa Clara, CA (development) --
Line of credit 36,572 Var. LIBOR+.875 Dec-03
--------
45,184 441,334 273,037 $168,297 21.4% 36,016
AEW
The Pointe at Cupertino, Cupertino, CA --
Tierra Vista, Oxnard, CA 37,491 Fixed 5.93% Jun-07
--------
7,166 76,173 37,491 38,682 20.0% 7,736
Lend Lease
Coronado at Newport - North, Newport Beach, CA 56,282 Fixed 5.30% Dec-12
Coronado at Newport - South, Newport Beach, CA 49,559 Fixed 5.30% Dec-12
--------
12,150 153,147 105,841 47,306 49.9% 23,606
Other Joint Ventures
Park Hill Apartments, Issaquah, WA 5,735 27,752 21,456 Fixed 6.90% Aug-29 6,296 45.0%(4) 5,735
Other 5,702 5,702
--------- ----------
$ 88,831 $ 88,574
========= ==========
(1)Estimated value based on estimated 2003 net operating income applying capitalization rates ranging from 7.25% to 7.75% on stabilized
multifamily properties. Other properties, either in development, redevelopment or acquired less than 12 months ago are valued at cost.
(2)Although the Company generally intends to hold these properties for use, the Company equity value assumes liquidation at September 30, 2003.
(3)The Fund accounts for its investment in this property under the equity method of accounting. Estimated value is equal to the Fund's book
value of its equity investment.
(4)The Company's 45% ownership interest receives a cumulative preferred return.
See Company's 10-K and 10-Q for additional disclosures
F-11
ESSEX PROPERTY TRUST, INC.
REAL ESTATE INFORMATION
30-Sept-03
Square Year Year
Property Name Address City State Units Footage Acquired Built
---------------------------------------------------------------------------------------------------------------------------------------
MULTIFAMILY COMMUNITIES
---------------------------------------------------------------------------------------------------------------------------------------
SAN FRANCISCO BAY AREA
---------------------------------------------------------------------
Santa Clara County
---------------------------------------
1 Pointe at Cupertino, The (Westwood) 19920 Olivewood Street Cupertino CA 116 135,288 1998 1963
1 Carlyle, The 2909 Nieman Boulevard San Jose CA 132 129,216 2000 2000
1 Waterford, The 1700 N. First Street San Jose CA 238 219,642 2000 2000
1 Le Parc (Plumtree) 440 N. Winchester Avenue Santa Clara CA 140 113,260 1994 1975
1 Marina Cove 3480 Granada Avenue Santa Clara CA 292 250,294 1994 1974
River Terrace N.E. corner Montague/Agnew Santa Clara CA 250 223,880
1 Bristol Commons 732 E. Evelyn Avenue Sunnyvale CA 188 142,668 1995 1989
1 Brookside Oaks 1651 Belleville Way Sunnyvale CA 170 119,980 2000 1973
1 Oak Pointe 450 N. Mathilda Avenue Sunnyvale CA 390 294,180 1988 1973
1 Summerhill Park 972 Corte Madera Avenue Sunnyvale CA 100 78,584 1988 1988
1 Windsor Ridge 825 E. Evelyn Avenue Sunnyvale CA 216 161,892 1989 1989
----------------------------
8% 1,982 1,645,004
Alameda County
---------------------------------------
1 Stevenson Place (The Apple) 4141 Stevenson Blvd. Fremont CA 200 146,296 1983 1971
1 Treetops 40001 Fremont Blvd. Fremont CA 172 131,270 1996 1978
1 Wimbeldon Woods 25200 Carlos Bee Blvd. Hayward CA 560 462,400 1998 1975
1 Summerhill Commons 36826 Cherry Street Newark CA 184 139,012 1987 1987
1 Essex at Lake Merritt, The 108-116 17th Street Oakland CA 270 258,967 2003 2003
----------------------------
6% 1,386 1,137,945
Contra Costa County
---------------------------------------
San Marcos (Vista del Mar) Hilltop Drive at Richmond PkwyRichmond CA 312 292,716
San Marcos (Vista del Mar) - Phase II Hilltop Drive at Richmond PkwyRichmond CA 120 114,930
1 Bel Air (The Shores) 2000 Shoreline Drive San Ramon CA 462 391,136 1995 1988 114 units 2000
1 Eastridge Apartments 235 East Ridge Drive San Ramon CA 188 174,104 1996 1988
1 Foothill Gardens 1110 Harness Drive San Ramon CA 132 155,100 1997 1985
1 Twin Creeks 2711-2731 Morgan Drive San Ramon CA 44 51,700 1997 1985
----------------------------
3% 826 772,040
San Francisco County
---------------------------------------
1 Mt. Sutro Terrace Apartments 480 Warren Drive San Francisco,CA 0% 99 64,095 1999 1973
--------------------------------------- ----------------------------
20 Total San Francisco Bay Area 17% 4,293 3,619,084
SOUTHERN CALIFORNIA
---------------------------------------------------------------------
Los Angeles County
---------------------------------------
1 Hampton Court (Columbus) 1136 N. Columbus Avenue Glendale CA 83 71,573 1999 1974
1 Hampton Place (Loraine) 245 W. Loraine Street Glendale CA 132 141,591 1999 1970
1 Rosebeach 16124 E. Rosecrans Ave. La Mirada CA 174 172,202 2000 1970
1 Marbrisa 1809 Termino Ave. Long Beach CA 202 122,870 2002 1987
1 Pathways 5945 E. Pacific Coast Hwy. Long Beach CA 296 197,720 1991 1975
1 Bunker Hill 222 and 234 S. Figueroa St. Los Angeles CA 456 346,672 1998 1968
1 City Heights 209 S. Westmoreland Los Angeles CA 687 424,170 2000 1968
1 Cochran Apartments 612 South Cochran Los Angeles CA 58 51,468 1998 1989
1 Kings Road 733 North Kings Road Los Angeles CA 196 132,112 1997 1979
1 Park Place 400 S. Detroit Street Los Angeles CA 60 48,000 1997 1988
1 Windsor Court 401 S. Detroit Street Los Angeles CA 58 46,600 1997 1988
1 Mirabella (Marina View) 13701 Marina Point Drive Marina Del Rey CA 188 176,860 2000 2000
1 Hillcrest Park (Mirabella) 1800 West Hillcrest Drive Newbury Park CA 608 521,968 1998 1973
1 Monterra del Mar (Windsor Terrace) 280 E. Del Mar Boulevard Pasadena CA 123 74,475 1997 1972
1 Monterra del Rey (Glenbrook) 350 Madison Pasadena CA 84 73,101 1999 1972
1 Monterra del Sol (Euclid) 280 South Euclid Pasadena CA 85 69,295 1999 1972
1 Crest, The 400 Appian Way Pomona CA 501 498,036 2000 1986
1 Highridge 28125 Peacock Ridge Drive Rancho Palos Verde CA 255 290,250 1997 1972
1 Villas at San Dimas Canyon 325 S. San Dimas Canyon Rd.San Dimas CA 156 144,669 2003 1981
1 Villas at Bonita 477 E. Bonita Ave. San Dimas CA 102 94,200 2003 1981
1 Avondale at Warner Center 22222 Victory Blvd. Woodland Hills CA 446 331,072 1999 1970
----------------------------
20% 4,950 4,028,904
Ventura County
---------------------------------------
1 Camarillo Oaks 921 Paseo Camarillo Camarillo CA 564 459,072 1996 1985
1 Mariner's Place 711 South B Street Oxnard CA 105 77,254 2000 1987
1 Ocean Villa 4202-4601 Dallas Drive Oxnard CA 119 108,900 2002 1974
1 Tierra Vista Rice and Gonzales Oxnard CA 404 387,144 2001 2001
1 Village Apartments 1040 Kelp Lane Oxnard CA 122 122,120 1997 1974
1 Meadowood 1733 Cochran Street Simi Valley CA 320 264,568 1996 1986
Parker Ranch Los Angeles and Stearns Simi Valley CA 324 310,938
1 Villa Scandia 1021 Scandia Avenue Ventura CA 118 71,160 1997 1971
----------------------------
7% 1,752 1,490,218
Orange County
---------------------------------------
1 Barkley Apartments 2400 E. Lincoln Ave. Anahiem CA 161 139,835 2000 1984
1 Vista Pointe 175-225 S. Rio Vista Anahiem CA 286 242,410 1985 1968
1 Villa Venetia 2775 Mesa Verde Drive East Costa Mesa CA 468 405,800 2003 1972
1 Valley Park Apartments 17300 Euclid Ave. Fountain Valley CA 160 169,788 2001 1969
1 Capri at Sunny Hills 2341 Daphne Place Fullerton CA 100 128,100 2001 1961
1 Wilshire Promenade 141 West Wilshire Avenue Fullerton CA 149 128,130 (1) 1997 1992
1 Montejo Apartments 12911 Dale St. Garden Grove CA 124 103,280 2001 1974
1 Huntington Breakers 21270 Beach Boulevard Huntington Beach CA 342 241,763 1997 1984
1 Huntington Villas 16761 Viewpoint Lane Huntington Beach CA 400 352,872 2003 1972
Irvine development 2552 Kelvin Ave. Irvine CA 132 122,456
1 Hillsborough Park 1501 South Beach Boulevard La Habra CA 235 215,510 1999 1999
1 Arboretum at Lake Forest 22700 Lake Forest Drive Lake Forest CA 225 215,319 2002 1970
1 Trabuco Villas 25362 Mosswood Way Lake Forest CA 132 131,032 1997 1985
1 Coronado At Newport-North 880 Irvine Avenue Newport Beach CA 732 459,677 1999 1968
1 Coronado At Newport-South 1700 16th Street Newport Beach CA 715 498,716 1999 1969
1 Fairways Apartments 2 Pine Valley Lane Newport Beach CA 74 107,160 1999 1972
1 Woodland Apartments 501 East Katella Ave. Orange CA 90 108,000 2000 1969
1 Villa Angelina 201 E. Chapman Ave. Placentia CA 256 217,600 2001 1970
1 Hearthstone Apartments 2301 E. Santa Clara Ave. Santa Ana CA 140 154,820 2001 1970
1 Treehouse Apartments 2601 N. Grand Ave. Santa Ana CA 164 135,762 2001 1970
1 El Encanto 1151 Walnut Ave. Tustin CA 116 92,760 2000 1969
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20% 5,069 4,248,334
San Diego County
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1 Alpine Country 2660 Alpine Blvd. Alpine CA 108 81,900 2002 1986
1 Alpine Village 2055 Arnold Way Alpine CA 306 254,424 2002 1971
1 Bonita Cedars 5155 Cedarwood Rd. Bonita CA 120 120,824 2002 1983
1 Villas at Carlsbad 2600 Kremeyer Circle Carlsbad CA 102 72,960 2002 1965
1 Cambridge 660 F. St. Chula Vista CA 40 22,140 2002 1965
1 Woodlawn Colonial 245-255 Woodlawn Ave. Chula Vista CA 159 104,583 2002 1974
1 Mesa Village 5265 Clairemont Mesa Blvd. Clairemont CA 133 43,696 2002 1963
1 Casa Tierra 355 Orlando St. El Cajon CA 40 28,730 2002 1972
1 Coral Gardens 425 East Bradley El Cajon CA 200 182,000 2002 1976
1 Tierra del Sol/Norte 989 Peach Ave. El Cajon CA 156 117,000 2002 1969
1 Grand Regacy 2050 E. Grand Ave. Escondido CA 60 42,432 2002 1967
1 Mira Woods Villa 10360 Maya Linda Rd. Mira Mesa CA 355 262,630 2002 1982
1 Country Villas 283 Douglas Drive Oceanside CA 180 179,764 2002 1976
1 Bluffs II, The 6466 Friars Road San Diego CA 224 126,744 1997 1974
Chesapeake Front at Beech St. San Diego CA 230 147,480
1 Emerald Palms 2271 Palm Ave. San Diego CA 152 133,000 2002 1986
1 Summit Park 8563 Lake Murray Blvd. San Diego CA 300 229,400 2002 1972
1 Vista Capri - East 4666 63rd St. San Diego CA 26 16,890 2002 1967
1 Vista Capri - North 3277 Berger Ave. San Diego CA 106 51,840 2002 1975
1 Carlton Heights 9705 Carlton Hills Blvd. Santee CA 70 48,440 2002 1979
1 Shadow Point 9830 Dale Ave. Spring Valley CA 172 131,260 2002 1983
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12% 3,009 2,250,657
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68 Total Southern California 59% 14,780 12,018,113
SEATTLE METROPOLITAN AREATotal Seattle Metropolitan Area 16% 4,073 3,397,634
PORTLAND METROPOLITAN AREA
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1 Andover Park 15282 SW Teal Blvd. Beaverton OR 240 227,804 2001 1992
1 Jackson School Village 300 NE Autumn Rose Way Hillsboro OR 200 196,896 1996 1996
1 Landmark Apartments 3120 NW John Olsen Ave. Hillsboro OR 285 282,934 1996 1990
1 Hunt Club 6001 SW Bonita Road Lake Oswego OR 256 198,056 2000 1985
1 Meadows @ Cascade Park 314 SE 19th Street Vancouver WA 198 199,377 1997 1989
1 Village @ Cascade Park 501 SE 123rd Avenue Vancouver WA 192 178,144 1997 1989
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6 Total Portland Metropolitan Area 5% 1,371 1,283,211
OTHER AREAS
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1 Devonshire Apartments 2770 West Devonshire Ave. Hemet CA 276 207,220 2002 1988
1 St. Cloud Apartments 6525 Hilcroft Houston TX 302 306,869 2002 1968
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2 2% 578 514,089
----------------------
117 Multifamily Properties 25,095 20,832,131 1998 1980
6 Multifamily Properties Under Construction 1,368 1,212,400
======================
Avg. square footage 830
Avg. units per property 214
Avg. age of property 22
(1) Also has 11,836 square feet of commercial/retail space.
(2) Also has 9,512 square feet of commercial space.
OTHER REAL ESTATE ASSETS
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Manufactured Housing Communities
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Green Valley 2130 Sunset Dr. Vista CA 157 pads 2002 1973
Riviera 2038 Palm St. Las Vegas NV 450 pads 2002 1969
Recreational Vehicle Parks
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Circle RV 1835 E. Main St. El Cajon CA 179 spaces 2002 1977
Vacationer 1581 E. Main St. El Cajon CA 159 spaces 2002 1973
Diamond Valley 344 N. State St. Hemet CA 224 spaces 2002 1974
Golden Village 3600 W. Florida Ave. Hemet CA 1,019 spaces 2002 1972
Riviera RV 2200 Palm St. Las Vegas NV 136 spaces 2002 1969
Office Buildings
---------------------------------------
Essex Corporate Headquarter Bldg. 925 E. Meadow Dr. Palo Alto CA 17,400 1997 1988
Valley Financial Office Building 2399 Camino Del Rio South San Diego CA 5,200 2002 1978
Moore Street Office Building 3205 Moore St. San Diego CA 2,000 2002 1957
Essex Southern Cal. Office Building 22110-22120 Clarendon St. Woodland Hills CA 38,940 2001 1982
F-12
New Residential Supply: Permits as % of Current Stock 12 Month Permit Period: September 2002 through September 2003 (inclusive)
Single Family Data Multi-Family Data All Residential Data ----------------------------------------------------------------------------- ----------------------------------- --------------------------------- Median SF 2002 SF SF Stock SF Permits % of MF Stock MF Permits % of Total Residential % of Market Price (2002) Affordability 2000 Last 12 Months Stock 2000 Last 12 months Stock Permits Last 12 months Stock ============================================================================= =================================== ================================= Boston $395,900 69% 1,530,000 4,429 0.3% 670,800 2,484 0.4% 6,913 0.3% New York PMSA $310,000 70% 760,000 2,670 0.4% 2,920,000 11,349 0.4% 14,019 0.4% Nassau-Suffolk $312,900 112% 740,000 3,452 0.5% 240,000 661 0.3% 4,113 0.4% Philadelphia $146,100 175% 1,532,000 12,223 0.8% 515,100 3,242 0.6% 15,465 0.8% Chicago $220,900 121% 1,700,000 30,632 1.8% 1,404,900 9,788 0.7% 40,420 1.3% Miami/Ft. Lauderda $192,700 98% 717,000 11,902 1.7% 876,000 12,179 1.4% 24,081 1.5% Denver $228,100 113% 582,000 13,043 2.2% 274,900 4,021 1.5% 17,064 2.0% Austin $156,500 153% 326,000 7,830 2.4% 169,900 2,322 1.4% 10,152 2.0% Wash. D.C. PMSA $250,200 117% 1,299,000 31,482 2.4% 644,300 10,393 1.6% 41,875 2.2% Minneapolis $185,000 103% 818,000 19,394 2.4% 351,800 6,403 1.8% 25,797 2.2% Dallas-Ft. Worth $135,700 174% 1,381,000 40,344 2.9% 650,000 12,465 1.9% 52,809 2.6% Houston $132,800 170% 1,027,000 33,449 3.3% 547,700 16,269 3.0% 49,718 3.2% Phoenix $143,300 157% 970,000 45,036 4.6% 360,500 5,663 1.6% 50,699 3.8% Orlando $136,000 152% 482,000 21,054 4.4% 201,500 5,027 2.5% 26,081 3.8% Atlanta $146,500 178% 1,122,000 50,975 4.5% 467,800 12,107 2.6% 63,082 4.0% Las Vegas $159,800 132% 440,000 29,966 6.8% 215,700 8,276 3.8% 38,242 5.8% ----------------------------------------------------------- ----------------------------------- --------------------------------- Totals $209,616 132% 15,426,000 357,881 2.3% 10,510,900 122,649 1.2% 480,530 1.9% =========================================================== =================================== ================================= Seattle $254,000 100% 656,000 11,322 1.7% 354,487 5,513 1.6% 16,835 1.7% Portland $180,400 134% 561,000 10,638 1.9% 225,335 4,157 1.8% 14,795 1.9% San Francisco $511,100 68% 368,000 1,411 0.4% 344,000 1,959 0.6% 3,370 0.5% Oakland $412,100 73% 625,000 6,876 1.1% 270,000 3,759 1.4% 10,635 1.2% San Jose $504,400 78% 388,000 2,682 0.7% 192,000 3,239 1.7% 5,921 1.0% Los Angeles $280,900 89% 1,877,000 9,692 0.5% 1,392,963 8,947 0.6% 18,639 0.6% Ventura $341,700 89% 199,000 2,422 1.2% 53,295 1,020 1.9% 3,442 1.4% Orange $415,300 72% 628,000 6,175 1.0% 340,800 4,280 1.3% 10,455 1.1% San Diego $356,300 71% 664,000 9,607 1.4% 375,664 6,541 1.7% 16,148 1.6% PNW $220,073 116% 1,217,000 21,960 1.8% 579,822 9,670 1.7% 31,630 1.8% No Cal $464,413 73% 1,381,000 10,969 0.8% 806,000 8,957 1.1% 19,926 0.9% So Cal $324,418 82% 3,368,000 27,896 0.8% 2,162,722 20,788 1.0% 48,684 0.9% ----------------------------------------------------------- ----------------------------------- --------------------------------- ESSEX $335,538 87% 5,966,000 60,825 1.0% 3,548,543 39,415 1.1% 100,240 1.1% =========================================================== =================================== ================================= Permits: Single Family equals 1 Unit, Multi-Family equals 5 or More Units Sources: SF Prices - National Association of Realtors,Rosen Consulting Group : Permits, Total Residential Stock - U.S. Census Median Home Prices - National Association of Realtors; DataQuick, Mortgage Rates - Freddie Mac, Median Household Incomes - US Census; BEA; Essex Single Family - Multi-Family Breakdown of Total Resdiences, Rosen Consulting Group, US Census, EASI, Essex *Single Family Affordability - Equals the ratio of the actual Median Household Income to the Income required to purchase the Median Priced Home. The required Income is defined such that the Mortgage Payment is 35% of said Income, assuming a 10% Down Payment and a 30-year fixed mortgage rate. Median Household Income is estimated from US Census 2000 data and Income Growth from BEA and Popultation Growth from the US Census.
F-13
==================================================================================================== Essex Markets Forecast 2004: Supply, Jobs and Apartment Market Conditions ====================================================================================================
Residential Supply* Job Forecast** Forecast Market Conditions*** ---------------------------------------------- ---------------------- ------------------------------ Market New MF % of New SF % of Est.New Jobs % Estimated Y-o-Y Estimated Year Supply Total Stock Supply Total Stock Dec-Dec Growth Rent Growth End Vacancy ============================================== ====================== ============================== Seattle 2,300 0.6% 8,400 1.3% 17,000 1.3% Flat 94.5% Portland 2,200 1.0% 9,700 1.8% 10,000 1.1% Flat 93.0% San Francisco 1,400 0.4% 1,100 0.3% 6,000 0.5% Flat 95.0% Oakland 1,500 0.6% 6,000 1.0% 11,000 1.0% Flat 95.0% San Jose 1,800 0.5% 1,800 0.5% 6,000 0.7% Flat 94.0% Ventura 700 1.4% 2,300 1.2% 2,800 1.0% 2.0% 96.0% Los Angeles 7,000 0.5% 8,500 0.5% 35,000 0.8% 2% to 4% 96.0% Orange 3,000 0.9% 6,400 1.0% 21,000 1.5% 2% to 3% 96.0% San Diego 4,000 1.0% 8,400 1.3% 21,000 1.7% 3.0% 96.0%
All data is an Essex Forecast
* New Residential Supply: represents Essex's internal estimate of actual deliveries during the year, which are related to but can differ from the 12 Month trailing Permit Levels reported on Appendix A.
** Job Forecast/Performance refers to the difference between Total Non-Farm Industry Employment (not Seasonally Adjusted) projected through December 2004 over the comparable actual figures for December 2003. The first column represents the current Essex forecast of the increase in Total Non-Farm Industry Employment. The second column represents these forecasted new jobs as a percent of the December 2003 base.
*** The Forecast Market Conditions represents Essex's estimates of the Change in Rents/Vacancy Rates at the end of 2004. The Estimated Year-over-Year Rent Growth represents the forecast change in Effective MarketRents for December 2004 vs. December 2003 (where Marketrefers to the entire MSA apartment market, NOT the Essex portfolio). The estimated Year End Vacancy represents Essex's forecast of MarketVacancy Rates for December 2004.
F-14