EX-99 4 exh99-2.htm EXH99-2.HTM 04282004 8K Exhibit 99.2

Exhibit 99.2




E S S E X P R O P E R T Y T R U S T, I N C.

Consolidated Operating Results                                        Three Months Ended                 Six Months Ended
(Dollars in thousands, except per share amounts)                          June 30,                           June 30,
------------------------------------------------------------------------------ ----------------  ---------------- ----------------
                                                                    2004           2003 (1)            2004           2003 (1)
                                                              ---------------- ----------------  ---------------- ----------------

Revenues:
  Rental                                                      $        67,908  $        60,961   $       132,137  $       121,983
  Other property                                                        2,400            1,984             4,502            4,000
                                                              ---------------- ----------------  ---------------- ----------------
    Total property revenues                                            70,308           62,945           136,639          125,983
  Interest and other                                                    2,389            2,370             5,708            4,636
                                                              ---------------- ----------------  ---------------- ----------------
                                                                       72,697           65,315           142,347          130,619
                                                              ---------------- ----------------  ---------------- ----------------
Expenses:
  Property operating                                                   24,047           20,120            45,888           40,426
  Depreciation and amortization                                        17,739           13,225            36,143           26,489
  Interest                                                             15,081           12,913            29,391           26,121
  Amortization of deferred financing costs                                457              362               730              582
  General and administrative                                            3,502            2,362             6,432            4,674
                                                              ---------------- ----------------  ---------------- ----------------
    Total expenses                                                     60,826           48,982           118,584           98,292
                                                              ---------------- ----------------  ---------------- ----------------
Income from continuing operations before minority interests
  and discontinued operations                                          11,871           16,333            23,763           32,327

Minority interests                                                     (5,583)          (6,577)          (11,154)         (13,344)
                                                              ---------------- ----------------  ---------------- ----------------
Income from continuing operations                                       6,288            9,756            12,609           18,983

Income (loss) from discontinued operations, net of minority int          (575)              41              (459)             456
                                                              ---------------- ----------------  ---------------- ----------------
Net income                                                              5,713            9,797            12,150           19,439

Dividends to preferred stockholders - Series F                           (488)              --              (976)              --
                                                              ---------------- ----------------   --------------- ----------------
Net income available to common stockholders                   $         5,225  $         9,797   $        11,174  $        19,439
                                                              ================ ================   =============== ================

Net income per share - basic                                  $          0.23  $          0.47   $          0.49  $          0.92
                                                              ================ ================  ================ ================

Net income per share - diluted                                $          0.23  $          0.46   $          0.48  $          0.92
                                                              ================ ================  ================ ================

(1) The results for the three and six months ended June 30, 2003 have been restated to reflect the retroactive adoption of
    FIN 46 Revised and SFAS 123. Certain prior period balances have been reclassified to conform to the current year presentation.

See Company's 10-K and 10-Q for additional disclosures

S-1




E S S E X P R O P E R T Y T R U S T, I N C.

Consolidated Operating Results
Selected Line Item Detail                                                 Three Months Ended                 Six Months Ended
(Dollars in thousands)                                                         June 30,                           June 30,
---------------------------------------------------------------------------------- ----------------  ---------------- ----------------
                                                                        2004             2003              2004             2003
                                                                  ---------------- ----------------  ---------------- ----------------
Interest and other
  Interest income                                                 $           265  $           210   $           411  $           267
  Equity income in co-investments and lease income                            780              621             2,664            1,461
  Fee income                                                                1,337            1,254             2,617            2,452
  Miscellaneous - non-recurring                                                 7              285                16              456
                                                                  ---------------- ----------------  ---------------- ----------------
    Interest and other                                            $         2,389  $         2,370   $         5,708  $         4,636
                                                                  ================ ================  ================ ================
Property operating expenses
  Maintenance and repairs                                         $         4,825  $         4,512   $         9,208  $         8,829
  Real estate taxes                                                         6,196            4,813            11,740            9,622
  Utilities                                                                 3,501            3,265             6,515            5,991
  Administrative                                                            7,513            5,420            14,429           12,114
  Advertising                                                                 966            1,086             1,806            2,000
  Insurance                                                                 1,046            1,024             2,190            1,870
                                                                  ---------------- ----------------  ---------------- ----------------
    Property operating expenses                                   $        24,047  $        20,120   $        45,888  $        40,426
                                                                  ================ ================  ================ ================
General and administrative
  Total general and administrative                                $         4,825  $         3,468   $         9,056  $         6,859
  Allocated to property operating expenses - administrative                (1,106)            (946)           (2,152)          (1,879)
  Capitalized and incremental to real estate under development               (217)            (160)             (472)            (306)
                                                                  ---------------- ----------------  ---------------- ----------------
    Net general and administrative                                $         3,502  $         2,362   $         6,432  $         4,674
                                                                  ================ ================  ================ ================
Minority interests
  Limited partners of Essex Portfolio, L.P.                       $           637  $         1,028   $         1,261  $         2,103
  Perpetual preferred distributions                                         4,009            4,580             8,113            9,160
  Series Z and Z-1 incentive units                                             56               44               131               88
  Third party ownership interests                                            (240)            (108)             (612)            (189)
  Limited partners of Down REITs                                            1,121            1,033             2,261            2,182
                                                                  ---------------- ----------------  ---------------- ----------------
    Minority interests                                            $         5,583  $         6,577   $        11,154  $        13,344
                                                                  ================ ================  ================ ================

Certain prior period balances have been reclassified to conform to the current year presentation.





See Company's 10-K and 10-Q for additional disclosures

S-2




E S S E X P R O P E R T Y T R U S T, I N C.

Consolidated Funds From Operations                                        Three Months Ended                Six Months Ended
(Dollars in thousands, except share and per share amounts)                    June 30,                          June 30,
----------------------------------------------------------------------------------- ---------------- ---------------- ----------------
                                                                         2004           2003 (1)           2004             2003
                                                                   ---------------- ---------------- ---------------- ----------------
Funds from operations

Income from continuing operations before minority interests
  and discontinued operations                                      $        11,871  $        16,333  $        23,763  $        32,327
Adjustments:
  Depreciation and amortization                                             17,739           13,225           36,143           26,489
  Depr. and amort. - unconsolidated co-investments
    and minority interests                                                     970              638            1,804            1,229
  Minority interests                                                        (4,947)          (5,501)          (9,808)         (11,104)
  Income (loss) from discontinued operations                                  (575)              41             (459)             456
  Depreciation - discontinued operations                                        34               33               62               72
  Dividends to preferred stockholders - Series F                              (488)              --             (976)              --
                                                                   ---------------- ---------------- ---------------- ----------------
    Funds from operations                                          $        24,604  $        24,769  $        50,529  $        49,469
                                                                   ================ ================ ================ ================

Components of the change in FFO

Same property NOI                                                  $          (328)                  $        (4,833)
Non-same property NOI                                                        3,764                            10,027
Other - corporate and unconsolidated co-investments                            351                             1,647
Interest expense and amortization of deferred financing                     (2,263)                           (3,418)
General and administrative                                                  (1,140)                           (1,758)
Minority interests                                                             554                             1,296
Income from discontinued operations                                           (616)                             (915)
Depreciation - discontinued operations                                           1                               (10)
Dividends to preferred stockholders - Series F                                (488)                             (976)
                                                                   ----------------                  ----------------
    Funds from operations                                          $          (165)                  $         1,060
                                                                   ================                  ================
Funds from operations per share - diluted                          $          0.97  $          1.05  $          1.99  $          2.10
                                                                   ================ ================ ================ ================
    Percentage decrease                                                       -7.6%                             -5.2%
                                                                   ================                  ================

Weighted average number of shares outstanding diluted (2)               25,446,752       23,558,314       25,386,273       23,511,388
                                                                   ================ ================ ================ ================

(1) The results for the three and six months ended June 30, 2003 have been restated to reflect the retroactive adoption of FIN 46 Revised and SF
(2) Assumes conversion of the weighted average operating partnership interests in the Operating Partnership into shares of the Company's common



See Company's 10-K and 10-Q for additional disclosures

S-3




E S S E X P R O P E R T Y T R U S T, I N C.

Consolidated Balance Sheet
(Dollars in thousands)
                                                                                 June 30, 2004     December 31, 2003 (1)
------------------------------------------------------------------------------------------------- -----------------------
Real Estate:
  Land and land improvements                                                  $          509,286  $              465,257
  Buildings and improvements                                                           1,729,549               1,510,742
                                                                              ------------------- -----------------------
                                                                                       2,238,835               1,975,999
  Less:  accumulated depreciation                                                       (301,771)               (265,623)
                                                                              ------------------- -----------------------
                                                                                       1,937,064               1,710,376
  Real estate investment held for sale, net of accumulated depreciation of
    $203 and $140 as of June 30, 2004 and December 31, 2003, respectively                  6,645                   7,983

  Investments                                                                             72,186                  79,567
  Real estate under development                                                           66,115                  55,183
                                                                              ------------------- -----------------------
                                                                                       2,082,010               1,853,109
Cash and cash equivalents                                                                 27,810                  25,943
Other assets                                                                              32,387                  29,185
Deferred charges, net                                                                     11,097                   8,574
                                                                              ------------------- -----------------------
    Total assets                                                              $        2,153,304  $            1,916,811
                                                                              =================== =======================

Mortgage notes payable                                                        $        1,054,167  $              891,798
Lines of credit                                                                          199,600                  93,100
Other liabilities                                                                         54,754                  57,371
                                                                              ------------------- -----------------------
Total liabilities                                                                      1,308,521               1,042,269
Minority interests                                                                       285,902                 293,143

Stockholders' Equity:
  Common stock                                                                                 2                       2
  Series F cumulative redeemable preferred stock, liquidation value                       25,000                  25,000
  Additional paid-in-capital                                                             645,167                 642,643
  Distributions in excess of accumulated earnings                                       (111,288)                (86,246)
                                                                              ------------------- -----------------------
    Total liabilities and stockholders' equity                                $        2,153,304  $            1,916,811
                                                                              =================== =======================
(1) The December 31, 2003 consolidated balance sheet has been restated for the retroactive adoption of the
    provisions of FIN 46 Revised and SFAS 123.

See Company's 10-K and 10-Q for additional disclosures

S-4




E S S E X P R O P E R T Y T R U S T, I N C.

Debt Summary - June 30, 2004
(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                                   69% $     869,656              6.7%            6.1
  Tax exempt variable (2)                                15%       184,511              2.6%           25.1
                                                  ---------- -------------- ----------------  --------------
    Total mortgage notes payable                         84%     1,054,167              6.0%            9.4
                                                  ---------- -------------- ----------------  ==============

Line of credit - secured (3)                              8%        96,600              1.6%
Line of credit - unsecured (4)                            8%       103,000              2.4%
                                                  ---------- -------------- ----------------
                                                         16%       199,600              2.0%
                                                  ---------- -------------- ----------------
    Total debt                                          100% $   1,253,767              5.2%
                                                  ========== ============== ================

     Scheduled principal payments (excludes lines of credit)

                                                     2004    $      13,398
                                                     2005           43,734
                                                     2006           24,069
                                                     2007          124,191
                                                     2008          153,759
                                                  Thereafter       695,016
                                                             --------------
                                                    Total    $   1,054,167
                                                             ==============

Interest expense coverage is 3.0 times earnings before gain, interest, taxes, depreciation and amortization.
Capitalized interest for the quarter ended June 30, 2004 was $655.

(1) Weighted average interest rate for variable rate debt are approximate current values.
(2) Subject to interest rate protection agreements.
(3) Secured line of credit commitment is $100 million and matures in January 2009.
    This line is secured by five of Essex's multifamily communities. The underlying interest rate is currently the
    Freddie Mac Reference Rate plus .55% to .60%.
(4) Unsecured line of credit commitment is $185 million and matures in May 2007.
    The underlying interest rate on this line is based on a tiered rate structure tied to the Company's
    corporate ratings and is currently at LIBOR plus 1.00%.





See Company's 10-K and 10-Q for additional disclosures

S-5




E S S E X P R O P E R T Y T R U S T, I N C.

Capitalization - June 30, 2004
(Dollars and shares in thousands, except per share amounts)


Total debt                                                              $   1,253,767
                                                                        ==============

Common stock and potentially dilutive securities
   Common stock outstanding                                                    22,936
   Limited partnership units (1)                                                2,408
   Options-treasury method                                                        148
                                                                        --------------
Total common stock and potentially dilutive securities                         25,492   shares

Common stock price per share as of June 30, 2004                        $      68.350
                                                                        --------------
Market value of common stock and potentially dilutive securities        $   1,742,378

Perpetual preferred units/stock                                         $     210,000   8.567% weighted average pay rate
                                                                        --------------
Total equity capitalization                                             $   1,952,378
                                                                        --------------
Total market capitalization                                             $   3,206,145
                                                                        ==============
Ratio of debt to total market capitalization                                     39.1%
                                                                        ==============

(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

S-6




E S S E X P R O P E R T Y T R U S T, I N C.

Property Operating Results - Quarter ended June 30, 2004 and 2003
(Dollars in thousands)
                                            Southern California        Northern California         Pacific Northwest          Other real estate assets(1Total
                                            -------------------------  --------------------------  -------------------------  ------------------------- -------------------------
                                              2004     2003   % Change   2004     2003   % Change    2004     2003   % Change   2004     2003   % Change  2004     2003   % Chang
                                            -------- -------- -------  -------- -------- --------  -------- -------- -------  -------- -------- ------- -------- -------- -------

Revenues:

  Same property revenues                    $24,583  $23,766     3.4%  $12,670  $13,383     -5.3%  $10,264  $10,214     0.5%  $  --    $  --      n/a   $47,517  $47,363     0.3%
  Non same property revenues(2)              16,099    9,554             3,492    2,695              1,922      829             1,278    2,504           22,791   15,582
                                            -------- --------          -------- --------           -------- --------          -------- --------         -------- --------
    Total Revenues                          $40,682  $33,320           $16,162  $16,078            $12,186  $11,043           $ 1,278  $ 2,504          $70,308  $62,945
                                            -------- --------          -------- --------           -------- --------          -------- --------         -------- --------
Property operating expenses:

  Same property operating expenses          $ 7,652  $ 7,258     5.4%  $ 3,934  $ 3,834      2.6%  $ 3,706  $ 3,718    -0.3%  $  --    $  --      n/a   $15,292  $14,810     3.3%
  Non same property operating expenses(2)     6,006    2,673             1,264    1,002                755      249               730    1,386            8,755    5,310
                                            -------- --------          -------- --------           -------- --------          -------- --------         -------- --------
    Total property operating expenses       $13,658  $ 9,931           $ 5,198  $ 4,836            $ 4,461  $ 3,967           $   730  $ 1,386          $24,047  $20,120
                                            -------- --------          -------- --------           -------- --------          -------- --------         -------- --------
Net operating income:

  Same property net operating income        $16,931  $16,508     2.6%  $ 8,736  $ 9,549     -8.5%  $ 6,558  $ 6,496     1.0%  $  --    $  --      n/a   $32,225  $32,553    -1.0%
  Non same property operating income(2)      10,093    6,881             2,228    1,693              1,167      580               548    1,118           14,036   10,272
                                            -------- --------          -------- --------           -------- --------          -------- --------         -------- --------
    Total net operating income              $27,024  $23,389           $10,964  $11,242            $ 7,725  $ 7,076           $   548  $ 1,118          $46,261  $42,825
                                            ======== ========          ======== ========           ======== ========          ======== ========         ======== ========


Same property operating margin                   69%      69%               69%      71%                64%      64%             n/a      n/a                68%      69%
                                            ======== ========          ======== ========           ======== ========          ======== ========         ======== ========
Same property turnover percentage                62%      60%               59%      64%                69%      67%             n/a      n/a                63%      63%
                                            ======== ========          ======== ========           ======== ========          ======== ========         ======== ========
Same property concessions                   $   157  $   252           $    97  $   182            $   154  $   366           $  --    $  --            $   408  $   800
                                            ======== ========          ======== ========           ======== ========          ======== ========         ======== ========
Average same property average concessions   $   165  $   229           $   176  $   304            $   203  $   497           $  --    $  --            $   180  $   328
  per turn (In dollars)                     ======== ========          ======== ========           ======== ========          ======== ========         ======== ========
Net operating income percentage of total         58%      55%               24%      26%                17%      17%                1%       3%             100%     101%
                                            ======== ========          ======== ========           ======== ========          ======== ========         ======== ========

Loss to lease(3)                            $ 9,075                    $   828                     $   (87)                   $  n/a                    $ 9,816
                                            ========                   ========                    ========                   ========                  ========
  Loss to lease as a percentage                 4.9%                       1.3%                       -0.2%                      n/a                        3.3%
  of rental income                          ========                   ========                    ========                   ========                  ========


Reconciliation of apartment units at end of period Same property consolidated apartment units 7,339 7,339 3,737 3,737 4,402 4,402 -- -- 15,478 15,478 ======== ======== ======== ======== ======== ======== ======== ======== ======== ======== Consolidated Apartment Units 11,669 10,190 4,605 4,177 5,212 4,703 578 578 22,064 19,648 Joint Venture 4,186 4,620 -- 116 741 741 -- -- 4,927 5,477 Under Development 686 686 370 682 -- -- -- -- 1,056 1,368 -------- -------- -------- -------- -------- -------- -------- -------- -------- -------- Total apartment units at end of period 16,541 15,496 4,975 4,975 5,953 5,444 578 578 28,047 26,493 ======== ======== ======== ======== ======== ======== ======== ======== ======== ======== Percentage of total 59% 58% 18% 19% 21% 21% 2% 2% 100% 100% ======== ======== ======== ======== ======== ======== ======== ======== ======== ======== Average same property financial occupancy 95.2% 95.2% 96.9% 95.4% 95.6% 95.2% n/a n/a 95.7% 95.2% ======== ======== ======== ======== ======== ======== ======== ======== ======== ======== (1) Includes apartment communities located in other geographic areas, other rental properties and commercial properties. (2) Includes properties which subsequent to March 31, 2003 were not consolidated, or either acquired or 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.

See Company's 10-K and 10-Q for additional disclosures

S-7







E S S E X P R O P E R T Y T R U S T, I N C.

Same Property Revenue by County - Quarters ended June 30, 2004, June 30, 2003 and March  31, 2004
(Dollars in thousands)

                                                       June 30,     June 30,                 March 31,
                                             Units      2004          2003     % Change       2004     % Change
                                            ------- ------------ ------------- --------   ------------ --------


Southern California
  Ventura County                             1,229  $     4,168  $      4,173     -0.1%   $     4,169     -0.0%
  Los Angeles County                         2,271        8,638         8,158      5.9%         8,565      0.9%
  Orange County                                932        3,915         3,768      3.9%         3,902      0.3%
  San Diego County                           2,907        7,862         7,667      2.5%         7,968     -1.3%
                                            ------- ------------ -------------            ------------
    Total Southern California                7,339  $    24,583  $     23,766      3.4%   $    24,604     -0.1%
                                            ------- ------------ -------------            ------------

Northern California
  San Francisco County                          99  $       329  $        350     -6.0%   $       340     -3.2%
  Santa Clara County                         1,696        5,923         6,385     -7.2%         5,902      0.4%
  Alameda County                             1,116        3,415         3,557     -4.0%         3,384      0.9%
  Contra Costa County                          826        3,003         3,091     -2.8%         2,967      1.2%
                                            ------- ------------ -------------            ------------
    Total Northern California                3,737  $    12,670  $     13,383     -5.3%   $    12,593      0.6%
                                            ------- ------------ -------------            ------------

Pacific Northwest
  Seattle                                    3,527  $     8,489  $      8,444      0.5%   $     8,532     -0.5%
  Portland                                     875        1,775         1,770      0.3%         1,779     -0.2%
                                            ------- ------------ -------------            ------------
    Total Pacific Northwest                  4,402  $    10,264  $     10,214      0.5%   $    10,311     -0.5%
                                            ------- ------------ -------------            ------------

Total same property revenues                15,478  $    47,517  $     47,363      0.3%   $    47,508      0.0%
                                            ======= ============ ============= ========   ============ ========

See Company's 10-K and 10-Q for additional disclosures

S-8




E S S E X P R O P E R T Y T R U S T, I N C.

Development Communities - June 30, 2004
(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

   Hidden Valley-Parker Ranch(1)                  Simi Valley, CA         324  $       48.3  $     46.1  $      2.2    Dec-03      Oct-04      62%       53%

   The San Marcos Phase II                        Richmond, CA            120          23.9        17.1         6.8    Sep-04      Feb-04      n/a       n/a

   Pre-development                                                                      2.9         2.9         0.0         --        --       n/a       n/a
                                                                       ------- ------------- ----------- -----------
     Subtotal - direct development                                        444  $       75.1  $     66.1  $      9.0

Joint Venture Transactions - Unconsolidated(2)

   River Terrace                                  Santa Clara, CA         250          56.8        44.2        12.6    Sep-04      Jun-05      n/a       n/a

   Chesapeake                                     San Diego, CA           230          44.9        40.4         4.5    Jun-04      Dec-04      n/a       n/a

   Kelvin Avenue                                  Irvine, CA              132           5.8         5.8         --        --          --       n/a       n/a

                                                                       ------- ------------- ----------- -----------
     Total - development                                                1,056  $      182.6  $    156.5  $     26.1
                                                                       ======= ============= =========== ===========

Stabilized Communities - Second Quarter 2004
-------------------------------------------------
   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

S-9




E S S E X P R O P E R T Y T R U S T, I N C.

Redevelopment Communities - June 30, 2004
(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  $   2,326  $   1,103      Apr-03           (1)

Kings Road                                   196       6,039        807      5,232      Jan-04           (1)

Rosebeach (2)                                174       3,537      2,470      1,067      Mar-03           (1)

Coronado at Newport - South (2)(3)(4)        715      13,257        262     12,995      Jan-04           (1)
                                           ------- ---------- ---------- ----------
Total                                       1,693  $  26,262  $   5,865  $  20,397
                                           ======= ========== ========== ==========






Re-stabilized Communities - Second Quarter 2004
------------------------------------------

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.
(3)The Company has an approximate 49.9% direct ownership interest in this asset.
(4)The Fund has an approximate 49.9% direct ownership interest in this asset.

See Company's 10-K and 10-Q for additional disclosures

S-10



E S S E X P R O P E R T Y T R U S T, I N C.
Investments - June 30, 2004                                                                                  Debt
                                                                                         ---------------------------------------                          Essex
(Dollars in thousands)                                                 Book    Estimated                     Interest  Maturity   Value of   Company     Equity
                                                                      Value    Value(1)    Amount    Type      Rate      Date      Equity   Ownership   Value(2)
-----------------------------------------------------------------------------  --------- ---------------------------------------  --------  ---------   ---------
Joint Ventures
   Essex Apartment Value Fund, L.P.
     Andover Park, Beaverton, OR                                                         $ 12,177    Fixed       6.60%   Oct-11
     Vista Del Rey (El Encanto), Tustin, CA                                                 7,838    Fixed       6.95%   Feb-11
     Rosebeach, La Mirada, CA                                                               8,276    Fixed       7.09%   Feb-11
     Hunt Club, Lake Oswego, CA                                                            11,470    Fixed       7.05%   Feb-11
     The Crest, Pomona, CA                                                                 62,000    Fixed       5.24%   May-13
     Foxborough (Woodland), Orange, CA                                                      4,808    Fixed       7.84%   Jul-09
     The Arboretum at Lake Forest, Lake Forest, CA                                         22,812    Fixed       5.16%   Feb-10
     Ocean Villas, Oxnard, CA                                                               9,862    Fixed       5.42%   Apr-13
     Villas at Carlsbad, Carlsbad, CA                                                       9,490    Fixed       5.03%   Aug-11
     Huntington Villas, Huntington Beach, CA                                               37,892    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                                                         53,183    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)                                               26,654    Var.    LIBOR+ 2%   Jan-07
     Rivermark, Santa Clara, CA (development)                                              17,006    Var.    LIBOR+ 2%   Jan-07
                                                                                          --------
                                                                    $ 44,179  $ 482,464   304,750                                $177,714       21.4%  $  38,031
   Lend Lease
     Coronado at Newport - North, Newport Beach, CA                                        55,701    Fixed       5.30%   Dec-12
     Coronado at Newport - South, Newport Beach, CA                                        49,047    Fixed       5.30%   Dec-12
                                                                                          --------
                                                                      15,583    170,143   104,748                                  65,395       49.9%     32,632

   Park Hill Apartments, Issaquah, WA                                  5,618     28,743    21,209    Fixed       6.90%   Aug-29     7,534       45.0%(4)   5,618

Other                                                                  6,806                                                                               6,806
                                                                    ---------                                                                          ----------
                                                                    $ 72,186                                                                           $  83,087
                                                                    =========                                                                          ==========

(1)Estimated value based on estimated 2004 net operating income applying capitalization rates ranging from 7.00% to 7.25% 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 June 30, 2004.
(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

S-11





                                                                        ESSEX PROPERTY TRUST, INC.
                                                                        REAL ESTATE INFORMATION
                                                                               30-Jun-04
                                                                                                             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       135,200      1998    1963
 1 Carlyle, The                           2909 Nieman Boulevard         San Jose             CA      132       129,200      2000    2000
 1 Waterford, The                         1700 N. First Street          San Jose             CA      238       219,600      2000    2000
 1 Le Parc (Plumtree)                     440 N. Winchester Avenue      Santa Clara          CA      140       113,200      1994    1975
 1 Marina Cove                            3480 Granada Avenue           Santa Clara          CA      292       250,200      1994    1974
   River Terrace                          N.E. corner Montague/Agnew    Santa Clara          CA      250       223,800
 1 Bristol Commons                        732 E. Evelyn Avenue          Sunnyvale            CA      188       142,600      1995    1989
 1 Brookside Oaks                         1651 Belleville Way           Sunnyvale            CA      170       119,900      2000    1973
 1 Oak Pointe                             450 N. Mathilda Avenue        Sunnyvale            CA      390       294,100      1988    1973
 1 Summerhill Park                        972 Corte Madera Avenue       Sunnyvale            CA      100        78,500      1988    1988
 1 Windsor Ridge                          825 E. Evelyn Avenue          Sunnyvale            CA      216       161,800      1989    1989
                                                                                           ----------------------------
                                                                                              7%   1,982     1,644,300
   Alameda County
   ---------------------------------------
 1 Stevenson Place (The Apple)            4141 Stevenson Blvd.          Fremont              CA      200       146,200      1983    1971
 1 Treetops                               40001 Fremont Blvd.           Fremont              CA      172       131,200      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       139,000      1987    1987
 1 Essex at Lake Merritt, The             108-116 17th Street           Oakland              CA      270       258,900      2003    2003
                                                                                           ----------------------------
                                                                                              5%   1,386     1,137,700
   Contra Costa County
   ---------------------------------------
 1 San Marcos (Vista del Mar)             Hilltop Drive at Richmond PkwyRichmond             CA      312       292,700      2003    2003
   San Marcos (Vista del Mar) - Phase II  Hilltop Drive at Richmond PkwyRichmond             CA      120       114,900
 1 Bel Air (The Shores)                   2000 Shoreline Drive          San Ramon            CA      462       391,000      1995    1988  114 units 2000
 1 Eastridge Apartments                   235 East Ridge Drive          San Ramon            CA      188       174,100      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
                                                                                           ----------------------------
                                                                                              4%   1,138     1,064,600
   San Francisco County
   ---------------------------------------
 1 Mt. Sutro Terrace Apartments           480 Warren Drive              San Francisco,CA      0%      99        64,000      1999    1973
   ---------------------------------------                                                 ----------------------------
21 Total San Francisco Bay Area                                                              17%   4,605     3,910,600

                       SOUTHERN CALIFORNIA
   ---------------------------------------------------------------------
   Los Angeles County
   ---------------------------------------
 1 Hampton Court (Columbus)               1136 N. Columbus Avenue       Glendale             CA       83        71,500      1999    1974
 1 Hampton Place (Loraine)                245 W. Loraine Street         Glendale             CA      132       141,500      1999    1970
 1 Rosebeach                              16124 E. Rosecrans Ave.       La Mirada            CA      174       172,200      2000    1970
 1 Marbrisa                               1809 Termino Ave.             Long Beach           CA      202       122,800      2002    1987
 1 Pathways                               5945 E. Pacific Coast Hwy.    Long Beach           CA      296       197,700      1991    1975
 1 Bunker Hill                            222 and 234 S. Figueroa St.   Los Angeles          CA      456       346,600      1998    1968
 1 City Heights                           209 S. Westmoreland           Los Angeles          CA      687       424,100      2000    1968
 1 Cochran Apartments                     612 South Cochran             Los Angeles          CA       58        51,400      1998    1989
 1 Kings Road                             733 North Kings Road          Los Angeles          CA      196       132,100      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 Marina City Club                       4333 Admiralty Way            Marina Del Rey       CA      101       127,200      2004    1971
 1 Mirabella (Marina View)                13701 Marina Point Drive      Marina Del Rey       CA      188       176,800      2000    2000
 1 Hillcrest Park (Mirabella)             1800 West Hillcrest Drive     Newbury Park         CA      608       521,900      1998    1973
 1 Monterra del Mar (Windsor Terrace)     280 E. Del Mar Boulevard      Pasadena             CA      123        74,400      1997    1972
 1 Monterra del Rey (Glenbrook)           350 Madison                   Pasadena             CA       84        73,100      1999    1972
 1 Monterra del Sol (Euclid)              280 South Euclid              Pasadena             CA       85        69,200      1999    1972
 1 Fountain Park                          13141 Fountain Park Drive     Playa Vista          CA      705       608,900      2004    2002
 1 Crest, The                             400 Appian Way                Pomona               CA      501       498,000      2000    1986
 1 Highridge                              28125 Peacock Ridge Drive     Rancho Palos Verde   CA      255       290,200      1997    1972
 1 Villas at Bonita                       477 E. Bonita Ave.            San Dimas            CA      102       144,600      2003    1981
 1 Villas at San Dimas Canyon             325 S. San Dimas Canyon Rd.   San Dimas            CA      156        94,200      2003    1981
 1 Walnut Heights                         20700 San Jose Road           Walnut               CA      163       146,700      2003    1964
 1 Avondale at Warner Center              22222 Victory Blvd.           Woodland Hills       CA      446       331,000      1999    1970
                                                                                           ----------------------------
                                                                                             22%   5,919     4,910,700
   Ventura County
   ---------------------------------------
 1 Camarillo Oaks                         921 Paseo Camarillo           Camarillo            CA      564       459,000      1996    1985
 1 Mountain View                          649 E. Las Posas Road         Camarillo            CA      106        83,900      2004    1980
 1 Mariner's Place                        711 South B Street            Oxnard               CA      105        77,200      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       387,100      2001    2001
 1 Monterey Villas (Village Apartments)   1040 Kelp Lane                Oxnard               CA      122       122,100      1997    1974
 1 Meadowood                              1733 Cochran Street           Simi Valley          CA      320       264,500      1996    1986
   Parker Ranch                           Los Angeles and Stearns       Simi Valley          CA      324       310,900
 1 Lofts at Pinehurst (Villa Scandia)     1021 Scandia Avenue           Ventura              CA      118        71,100      1997    1971
                                                                                           ----------------------------
                                                                                              7%   1,858     1,573,800
   Orange County
   ---------------------------------------
 1 Barkley Apartments                     2400 E. Lincoln Ave.          Anahiem              CA      161       139,800      2000    1984
 1 Vista Pointe                           175-225 S. Rio Vista          Anahiem              CA      286       242,400      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       169,700      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       128,000 (1)  1997    1992
 1 Montejo Apartments                     12911 Dale St.                Garden Grove         CA      124       103,200      2001    1974
 1 Huntington Breakers                    21270 Beach Boulevard         Huntington Beach     CA      342       241,700      1997    1984
 1 Huntington Villas                      16761 Viewpoint Lane          Huntington Beach     CA      400       352,800      2003    1972
   Irvine development                     2552 Kelvin Ave.              Irvine               CA      132       122,400
 1 Hillsborough Park                      1501 South Beach Boulevard    La Habra             CA      235       215,500      1999    1999
 1 Arboretum at Lake Forest               22700 Lake Forest Drive       Lake Forest          CA      225       215,300      2002    1970
 1 Trabuco Villas                         25362 Mosswood Way            Lake Forest          CA      132       131,000      1997    1985
 1 Coronado At Newport-North              880 Irvine Avenue             Newport Beach        CA      732       459,600      1999    1968
 1 Coronado At Newport-South              1700 16th Street              Newport Beach        CA      715       498,700      1999    1969
 1 Fairways Apartments                    48 1/2 Pine Valley Lane       Newport Beach        CA       74       107,100      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       154,800      2001    1970
 1 Treehouse Apartments                   2601 N. Grand Ave.            Santa Ana            CA      164       135,700      2001    1970
 1 El Encanto                             1151 Walnut Ave.              Tustin               CA      116        92,700      2000    1969
                                                                                           ----------------------------
                                                                                             19%   5,069     4,247,500
   San Diego County
   ---------------------------------------
 1 Alpine Country                         2660 Alpine Blvd.             Alpine               CA      108        81,900      2002    1986
 1 Alpine Village                         2055 Arnold Way               Alpine               CA      306       254,400      2002    1971
 1 Bonita Cedars                          5155 Cedarwood Rd.            Bonita               CA      120       120,800      2002    1983
 1 Villas at Carlsbad                     2600 Kremeyer Circle          Carlsbad             CA      102        72,900      2002    1965
 1 Cambridge                              660 F. St.                    Chula Vista          CA       40        22,100      2002    1965
 1 Woodlawn Colonial                      245-255 Woodlawn Ave.         Chula Vista          CA      159       104,500      2002    1974
 1 Mesa Village                           5265 Clairemont Mesa Blvd.    Clairemont           CA      133        43,600      2002    1963
 1 Casa Tierra                            355 Orlando St.               El Cajon             CA       40        28,700      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        42,400      2002    1967
 1 Mira Woods Villa                       10360 Maya Linda Rd.          Mira Mesa            CA      355       262,600      2002    1982
 1 Country Villas                         283 Douglas Drive             Oceanside            CA      180       179,700      2002    1976
 1 Bluffs II, The                         6466 Friars Road              San Diego            CA      224       126,700      1997    1974
   Chesapeake                             Front at Beech St.            San Diego            CA      230       147,400
 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        16,800      2002    1967
 1 Vista Capri - North                    3277 Berger Ave.              San Diego            CA      106        51,800      2002    1975
 1 Carlton Heights                        9705 Carlton Hills Blvd.      Santee               CA       70        48,400      2002    1979
 1 Shadow Point                           9830 Dale Ave.                Spring Valley        CA      172       131,200      2002    1983
                                                                                           ----------------------------
                                                                                             11%   3,009     2,249,900
   ---------------------------------------                                                 ----------------------------
72 Total Southern California                                                                 59%  15,855    12,981,900

             SEATTLE METROPOLITAN AREA
   ---------------------------------------------------------------------
 1 Emerald Ridge                          3010 118th Avenue SE          Bellevue             WA      180       144,000      1994    1987
 1 Foothill Commons                       13800 NE 9th Place            Bellevue             WA      360       288,300      1990    1978
 1 Palisades, The                         13808 NE 12th                 Bellevue             WA      192       159,700      1990    1977
 1 Sammamish View                         16160 SE Eastgate Way         Bellevue             WA      153       133,500      1994    1986
 1 Woodland Commons                       13700 NE 10th Place           Bellevue             WA      236       172,300      1990    1978
 1 Canyon Pointe                          1630 228th St. SE             Bothell              WA      250       210,400      2003    1990
 1 Inglenook Court                        14220 Juanita Drive, NE       Bothell              WA      224       183,600      1994    1985
 1 Salmon Run at Perry Creek              2109 228th Street SE          Bothell              WA      132       117,100      2000    2000
 1 Stonehedge Village                     14690 143rd Blvd., NE         Bothell              WA      196       214,800      1997    1986
 1 Park Hill at Issaquah                  22516 SE 56th Street          Issaquah             WA      245       277,700      1999    1999
 1 Peregrine Point                        21209 SE 42nd Street          Issaquah             WA       67        85,900      2003    2003
 1 Wandering Creek                        12910 SE 240th                Kent                 WA      156       124,300      1995    1986
 1 Bridle Trails                          6600 130th Avenue, NE         Kirkland             WA       92        73,400      1997    1986
 1 Evergreen Heights                      12233 NE 131st Way            Kirkland             WA      200       188,300      1997    1990
 1 Laurels at Mill Creek                  1110 164th Street SE          Mill Creek           WA      164       134,300      1996    1981
 1 Anchor Village                         9507 49th Avenue West         Mukilteo             WA      301       245,900      1997    1981
 1 Castle Creek                           7000 132nd Place, SE          Newcastle            WA      216       191,900      1998    1998
 1 Brighton Ridge                         2307 NE 4th Street            Renton               WA      264       201,300      1996    1986
 1 Forest View                            650 Duvall Ave. NE            Renton               WA      192       182,500      2003    1998
 1 Fountain Court                         2400 4th Street               Seattle              WA      320       207,000      2000    2000
 1 Linden Square                          13530 Linden Avenue North     Seattle              WA      183       142,200      2000    1994
 1 Maple Leaf                             7415 5th Avenue, NE           Seattle              WA       48        35,500      1997    1986
 1 Spring Lake                            12528 35th Avenue, NE         Seattle              WA       69        42,300      1997    1986
 1 Wharfside Pointe                       3811 14th Avenue West         Seattle              WA      142       119,200 (2)  1994    1990
   ---------------------------------------                                                 ----------------------------
24 Total Seattle Metropolitan Area                                                            17%   4,582     3,875,400

            PORTLAND METROPOLITAN AREA
   ---------------------------------------------------------------------
 1 Andover Park                           15282 SW Teal Blvd.           Beaverton            OR      240       227,800      2001    1992
 1 Jackson School Village                 300 NE Autumn Rose Way        Hillsboro            OR      200       196,800      1996    1996
 1 Landmark Apartments                    3120 NW John Olsen Ave.       Hillsboro            OR      285       282,900      1996    1990
 1 Hunt Club                              6001 SW Bonita Road           Lake Oswego          OR      256       198,000      2000    1985
 1 Meadows @ Cascade Park                 314 SE 19th Street            Vancouver            WA      198       199,300      1997    1989
 1 Village @ Cascade Park                 501 SE 123rd Avenue           Vancouver            WA      192       178,100      1997    1989
   ---------------------------------------                                                 ----------------------------
 6 Total Portland Metropolitan Area                                                          5%    1,371     1,282,900

                           OTHER AREAS
   ---------------------------------------------------------------------
 1 Devonshire Apartments                  2770 West Devonshire Ave.     Hemet                CA      276       207,200      2002    1988
 1 St. Cloud Apartments                   6525 Hilcroft                 Houston              TX      302       306,800      2002    1968
                                                                                           ----------------------------
 2                                                                                           2%      578       514,000
                                                                                                 ----------------------
   125                                    Multifamily Properties                                  26,991    22,564,800      1998    1981
   5                                      Multifamily Properties Under Construction                1,056       919,400
                                                                                             ======================
   Avg. square footage                                 836
   Avg. units per property                             216
   Avg. age of property                                 23

   (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
   ---------------------------------------------------------------------
   Manufactured Housing Communities
   ---------------------------------------
   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
   ---------------------------------------
   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


S-12



New Residential Supply: Permits as % of Current Stock 12 Month Permit Period: June 2003 through June 2004 (inclusive)

Single Family Data Multi-Family Data All Residential Data
----------------------------------------------------------------------------- ----------------------------------- --------------------------------- Median SF 2003 SF SF Stock SF Permits % of MF Stock MF Permits % of Total Residential % of Market Price (2003) Affordability 2000 Last 12 Months Stock 2000 Last 12 months Stock Permits Last 12 months Stock ============================================================================= =================================== ================================= Nassau-Suffolk $364,500 101% 740,000 3,640 0.5% 240,000 500 0.2% 4,140 0.4% New York PMSA $352,600 63% 760,000 2,644 0.3% 2,920,000 13,831 0.5% 16,475 0.4% Boston $412,800 70% 1,530,000 6,094 0.4% 670,800 5,074 0.8% 11,168 0.5% Philadelphia $168,000 163% 1,532,000 14,208 0.9% 515,100 5,326 1.0% 19,534 1.0% Chicago $238,900 118% 1,700,000 33,380 2.0% 1,404,900 10,112 0.7% 43,492 1.4% Wash. D.C. PMSA $286,200 109% 1,299,000 27,553 2.1% 644,300 8,668 1.3% 36,221 1.9% Miami/Ft. Lauderda $227,000 94% 717,000 20,042 2.8% 876,000 14,454 1.7% 34,496 2.2% Denver $238,200 112% 582,000 14,814 2.5% 274,900 3,719 1.4% 18,533 2.2% Minneapolis $199,600 147% 818,000 20,619 2.5% 351,800 5,771 1.6% 26,390 2.3% Dallas-Ft. Worth $138,400 179% 1,381,000 43,434 3.1% 650,000 9,745 1.5% 53,179 2.6% Austin $156,700 161% 326,000 11,163 3.4% 169,900 2,195 1.3% 13,358 2.7% Houston $136,400 174% 1,027,000 39,236 3.8% 547,700 12,174 2.2% 51,410 3.3% Atlanta $152,400 181% 1,122,000 57,353 5.1% 467,800 12,175 2.6% 69,528 4.4% Phoenix $152,500 155% 970,000 52,160 5.4% 360,500 7,005 1.9% 59,165 4.4% Orlando $145,100 152% 482,000 26,717 5.5% 201,500 5,957 3.0% 32,674 4.8% Las Vegas $179,200 124% 440,000 34,453 7.8% 215,700 6,260 2.9% 40,713 6.2% ----------------------------------------------------------- ----------------------------------- --------------------------------- Totals $228,137 132% 15,426,000 407,510 2.6% 10,510,900 122,966 1.2% 530,476 2.0% =========================================================== =================================== ================================= Seattle $268,800 106% 656,000 11,954 1.8% 354,487 3,510 1.0% 15,464 1.5% Portland $192,000 125% 561,000 10,394 1.9% 225,335 3,658 1.6% 14,052 1.8% San Francisco $566,400 59% 368,000 1,417 0.4% 344,000 1,970 0.6% 3,387 0.5% Oakland $399,000 83% 625,000 7,522 1.2% 270,000 3,546 1.3% 11,068 1.2% San Jose $473,900 76% 388,000 2,398 0.6% 192,000 2,212 1.2% 4,610 0.8% Los Angeles $318,900 84% 1,877,000 11,090 0.6% 1,392,963 11,938 0.9% 23,028 0.7% Ventura $388,500 80% 199,000 1,678 0.8% 53,295 1,078 2.0% 2,756 1.1% Orange $418,600 78% 628,000 6,491 1.0% 340,800 2,664 0.8% 9,135 0.9% San Diego $379,300 73% 664,000 9,688 1.5% 375,664 6,084 1.6% 15,772 1.5% PNW $233,398 115% 1,217,000 22,348 1.8% 579,822 7,168 1.2% 29,516 1.6% No Cal $464,651 74% 1,381,000 11,337 0.8% 806,000 7,728 1.0% 19,065 0.9% So Cal $353,510 81% 3,368,000 28,947 0.9% 2,162,722 21,744 1.0% 50,691 0.9% ----------------------------------------------------------- ----------------------------------- --------------------------------- ESSEX $354,735 86% 5,966,000 62,632 1.0% 3,548,543 36,640 1.0% 99,272 1.0% =========================================================== =================================== ================================= 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; Axiometrics 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 Residences, 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.(5.75%) Median Household Income is estimated from US Census 2000 data and Income Growth from BEA and Popultation Growth from the US Census.

S-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 Job % Estimated Y-o-Y Estimated Year Supply Total Stock Supply Total Stock Dec-Dec Growth Rent Growth End Vacancy ============================================== ====================== ============================== Seattle 2,100 0.6% 9,000 1.4% 16,000 1.2% 0% to 1.5% 94.5% Portland 2,400 1.1% 9,900 1.8% 9,600 1.0% Flat 93.0% San Francisco 1,600 0.5% 1,200 0.3% 8,200 0.9% Flat 95.0% Oakland 1,800 0.7% 6,100 1.0% 10,700 1.0% Flat 95.0% San Jose 2,000 1.0% 2,100 0.5% 6,000 0.7% Flat 94.0% Ventura 600 1.2% 2,400 1.2% 3,500 1.3% 2.0% 95.5% Los Angeles 7,500 0.5% 8,600 0.5% 36,000 0.9% 2% to 4% 95.5% Orange 3,200 0.9% 6,200 1.0% 26,500 1.9% 2% to 3% 95.5% San Diego 4,200 1.1% 9,100 1.4% 25,000 2.0% 3.0% 95.5% =================================================================================================================== SO.Cal 15,500 0.7% 26,300 0.8% 91,000 1.3% 2% to 3% 95.5% ===================================================================================================================

All data is an Essex Forecast

* New Residential Supply: represents Essex's internal estimate of actual deliveries during the yea 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 fir column represents the current Essex forecast of the increase in Total Non-Farm Industry Employment. The seco 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 t end of 2004. The Estimated Year-over-Year Rent Growth represents the forecast change in Effective Market Re December 2004 vs. December 2003 (where Market refers to the entire MSA apartment market, NOT the Essex portf The estimated Year End Vacancy represents Essex's forecast of Market Vacancy Rates for December 2004.

S-14