8-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, DC 20549

FORM 8-K 

Current Report Pursuant to Section 13 or 15 (d) of the Securities Exchange Act of 1934

Date of Report (Date of Earliest Event Reported): November 1, 2006

ESSEX PROPERTY TRUST, INC. 

(Exact Name of Registrant as Specified in its Charter)

001-13106

(Commission File Number)

Maryland	77-0369576
(State or Other Jurisdiction of Incorporation)	(I.R.S. Employer Identification No.)

925 East Meadow Drive, Palo Alto, California 94303

(Address of Principal Executive Offices) (Zip Code)

(650) 494-3700

(Registrant’s Telephone Number, Including Area Code)

Not Applicable

(Former Name or Former Address, if Changed Since Last Report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

  o   Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

  o   Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

  o   Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d2(b))

  o   Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)

Item 2.02. Results of Operations and Financial Condition

On November 1, 2006 Essex Property Trust, Inc. (the “Company”) issued a press release announcing the Company’s earnings for the quarter ended September 30, 2006. A copy of the press release is attached hereto as Exhibit 99.1 and incorporated by reference herein in its entirety.

The information in this report (including Exhibits 99.1 and 99.2) is being furnished pursuant to Item 2.02 and shall not be deemed to be "filed" for purposes of Section 18 of the Securities Exchange Act of 1934 (the "Exchange Act") or otherwise subject to the liabilities of that section, nor shall it be deemed to be incorporated by reference in any filing under the Securities Act of 1933 or the Exchange Act.

Item 9.01. Financial Statements and Exhibits.

(a) - (b) Not applicable.

(c) Exhibits.

The exhibits listed below are being furnished with this Form 8-K.

99.1	Press Release issued by Essex Property Trust, Inc. dated November 1, 2006
99.2	Supplemental Information

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

Date: November 1, 2006
	Essex Property Trust, Inc. By: /s/ Michael T. Dance
	Michael T. Dance
	Executive Vice President & Chief Financial Officer                                                    (Authorized Officer, Principal Financial Officer)

EXHIBIT INDEX

Exhibit
Number	Description
99.1	Press Release issued by Essex Property Trust, Inc. dated November 1, 2006
99.2	Supplemental Information

EX-99.1

FOR IMMEDIATE RELEASE

Nicole Culbertson

(650) 849-1649

Essex Announces Third Quarter 2006 Earnings Results

FFO Guidance Range Increased To $4.98 - $5.02 Per Share

Palo Alto, California—November 1, 2006—Essex Property Trust, Inc. (NYSE:ESS) announces its third quarter 2006 earnings results and related business activities.

Net income available to common stockholders for the quarter ended September 30, 2006 totaled $10.7 million, or $0.45 per diluted share, compared to net income available to common stockholders of $8.3 million, or $0.35 per diluted share, for the quarter ended September 30, 2005. Funds from Operations (“FFO”) increased 8.9% to $32.9 million or $1.26 per diluted share for the quarter ended September 30, 2006, compared to $29.7 million, or $1.15 per diluted share for the quarter ended September 30, 2005.

Commenting on Essex’s third quarter results, Keith R. Guericke, President and Chief Executive Officer for the Company stated, “We are delighted by the strong growth from our supply-constrained markets during the third quarter.” He continued, “We expect to meet or exceed our development, redevelopment and acquisitions expectations for the year and we are increasing our FFO guidance range to $4.98-$5.02 per diluted share.” 

SAME-PROPERTY OPERATIONS

Same-property operating results exclude properties that do not have comparable results for the three months ended September 30, 2006 and 2005. The table below illustrates the percentage change in same-property revenues, operating expenses, and net operating income (“NOI”) for the quarter ended September 30, 2006, compared to the quarter ended September 30, 2005:

	Q3 2006 compared to Q3 2005
	Revenues	Expenses	NOI
Southern California	5.9%	5.0%	6.3%
San Francisco Bay Area	10.3%	6.3%	12.5%
Seattle	11.2%	11.2%	11.2%
Same-Property Average	7.7%	6.4%	8.4%

The following is the sequential percentage change in same-property revenues, expenses, and NOI for the three months ended September 30, 2006 versus the three months ended June 30, 2006:

	Q3 2006 compared to Q2 2006
	Revenues	Expenses	NOI
Southern California	2.8%	2.3%	3.0%
San Francisco Bay Area	2.6%	4.5%	1.7%
Seattle	4.5%	10.5%	1.1%
Same-Property Average	3.0%	4.3%	2.4%

SAME-PROPERTY OPERATIONS - Continued

The following is the same-property financial occupancies for the quarters ended:

	9/30/06	6/30/06	9/30/05
Southern California	96.6%	96.0%	96.8%
San Francisco Bay Area	97.0%	97.8%	96.9%
Seattle	97.1%	97.6%	97.1%
Same-Property Average	96.8%	96.7%	96.8%

The Company’s FFO, excluding non-recurring items, increased 14.0% or $4.3 million for the quarter ended September 30, 2006 compared to the prior year quarter. A reconciliation of FFO for non-recurring items can be found on page S-3 in the Company’s Financial Supplemental Information package. The following non-recurring items impacted the Company’s third quarter results for 2006 and 2005:

·   Promote income from Essex Apartment Value Fund I increased FFO in the amount of approximately $1.0 million and $.9 million during third quarter of 2006 and 2005, respectively.

·   In 2006, gains of $1.1 million, net of taxes and allocated costs, related to the sale of condominium units at Peregrine Point generated FFO of approximately $.5 million, or $.02 per diluted share.

·   In 2005, income from a condominium loan increased FFO by $1.8 million, net of taxes and allocated expenses.

ACQUISITIONS/DISPOSITIONS

During the third quarter of 2006, the Company acquired Hillsdale Garden Apartments, a 697-unit community located in San Mateo, California for approximately $97.3 million. The property is subject to a ground lease with annual payments of $46,000 that will expire in 2047.

During October 2006, the Company acquired Belmont Terrace, a 71-unit community located in Belmont, California for approximately $14.7 million in a transaction structured as an UpREIT. The community was built in 1974 and consists of one four-story building located in the Belmont hills.

Currently, the Company is in the process of a condo conversion at Peregrine Point, a taxable REIT subsidiary (TRS), in Issaquah, Washington. In April of 2006 the property was reclassified from a rental property to real estate under development held for sale. During the third quarter of 2006, the Company sold 28 of the 66 available condominiums.

Through the nine months ended September 30, 2006, the Company has acquired approximately $271 million in assets, including Fund II acquisitions, surpassing its initial projection of $200 million. Acquisition strategy continues to focus on the Northern California and Seattle markets.

DEVELOPMENT

“Our development team continues to make excellent headway and will exceed $200 million in construction starts in 2006. Consequently, we have increased our development pipeline to over $900 million in total costs,” stated John Eudy, Executive Vice President, Development.

During the third quarter of 2006, the Company completed the shoring, foundation, and construction of most structural portions of the garage at Northwest Gateway, a 275-unit development in Los Angeles, California. The property is scheduled to begin leasing activities in December 2007.

During the first quarter of 2007, the Company will commence construction on 100 Grand in Oakland, California. The development will include a 22-story high rise building containing 238 units and 7,843 square feet of retail space. The development location is adjacent to the thriving uptown business district which will include a new Whole Foods Market retail complex, a new Arch Diocese and several new upscale condominium projects. In regards to the development, John Eudy stated, “Having recently built a 270-unit community (The Essex on Lake Merritt) in the immediate area, we are familiar with the market and the unique opportunity this location affords us to build an upscale apartment community.” He continued, “When we decided to take advantage of the condominium conversion opportunity at The Essex on Lake Merritt, we immediately found a comparable site (100 Grand) to repeat the same rental success.”

The Company’s development pipeline, including predevelopment, development and other projects (TRS), currently has approximately 2,900 units in various stages of development with a total estimated cost of approximately $900 million.

Additional information pertaining to the geographic locations, as well as ownership interests in these projects can be found on page S-9 in the Company’s Financial Supplemental Information package.

ESSEX APARTMENT VALUE FUND II, L.P.

The Essex Apartment Value Fund II, L.P. (“Fund II”) acquired two communities in September of 2006. Renaissance Apartments, a 168-unit apartment community located in Los Angeles, California was acquired for approximately $46.3 million and Alderwood Park Apartments, a 96-unit apartment community located in Newark, California was acquired for approximately $13.4 million.

During the third quarter of 2006, Fund II development activities continued to prosper. In August, the Company commenced construction of Lake Union in Seattle which is scheduled for completion in January 2008. Chatsworth, a 119-unit development in Los Angeles, California, is scheduled to begin construction in the second quarter of 2007.

As of October 31, 2006, management has determined that Fund II is fully committed and closed for any future acquisitions or development.

REDEVELOPMENT ACTIVITIES

As of September 30, 2006, the Company had 8 redevelopment communities (2,600 units) in various stages of renovation, with estimated redevelopment costs of $65 million. “Our redevelopment team has doubled its size over the past 18 months to eight redevelopment project managers, and is now active in each of the Company’s West coast markets,” said Tom Flitsch, Vice President, Redevelopment.

Currently, the initial stages of redevelopment activity are underway at Pathways, a 296-unit apartment community located in Long Beach, California. The property, which was built in 1975, will undergo renovations to its exterior, conversion of the old leasing center to a fitness center, extensive interior unit upgrades to include installation of washer and dryers. The community is expected to begin interior unit renovations in the first quarter of 2007, with completion of redevelopment expected in early 2009.

Treetops Apartments, a 172-unit property located in Fremont, California is in the initial stages of redevelopment activity. The property, built in 1978, will undergo exterior renovations including the replacement of siding and roofing and landscaping improvements, as well as renovation of the leasing center and laundry facilities. The property renovation will include extensive interior renovation of 75% of the units as well as the conversion of approximately 20 two-bedroom, one-bathroom units to add an additional bathroom and washer and dryer. Interior renovations are expected to begin in the first quarter of 2007, with completion of the entire project in late 2008.

Montclaire, formerly known as Oak Pointe, a 390-unit property located in Sunnyvale, California is currently in Phase II of its redevelopment program. The property has already undergone renovation of the leasing and fitness center, as well as pool and spa area. Phase II will include the interior renovation of 354 units as well as replacement of the balcony railings. Completion of the entire redevelopment project is expected in late 2008.

All projects will contribute to the Company’s expected redevelopment goal of a 10% to 12% incremental return on invested capital. A summary of the major redevelopment projects can be found on page S-10 in the Company’s Supplemental Financial Information Package.

LIQUIDITY AND BALANCE SHEET

During the third quarter of 2006, the Company sold 5.98 million shares of its 4.875% Series G Cumulative Convertible Preferred Stock at $25 per share for estimated gross proceeds of $149.5 million. Holders may convert Series G Preferred Stock into shares of the Company’s common stock subject to certain conditions. The conversion rate will initially be .1830 shares of common stock per the $25 share liquidation preference, which is equivalent to an initial conversion price of approximately $136.62 per share of common stock (the conversion rate will be subject to adjustment upon the occurrence of specified events). On or after July 31, 2011, the Company may, under certain circumstances, cause some or all of the Series G Preferred Stock to be converted into that number of shares of common stock at the then prevailing conversion rate. During the third quarter of 2006, the Company issued and sold approximately 114,100 shares of common stock for $12.4 million, net of fees and commissions. The Company used the net proceeds from the offerings to pay down outstanding borrowings under the Company’s lines of credit, to fund the development pipeline and for general corporate purposes.

During the third quarter of 2006, the Company entered into a ten-year forward-starting interest rate swap for a notional amount of $50 million and a settlement date in the first quarter of 2011. As of September 30, 2006, the Company’s ten-year forward-starting interest rate swaps totaled $400 million with rates ranging from 4.9% to 5.9% and settlement dates from October 1, 2007 through February 1, 2011.

GUIDANCE

The Company is increasing its 2006 guidance to an estimated FFO range of $4.98 - $5.02 per diluted share. The revision reflects the better than expected regional and national economic strength that is currently benefiting the Company’s targeted supplied constrained markets.

CONFERENCE CALL INFORMATION

The Company will host an earnings conference call with management on Thursday, November 2, 2006, at 9:00 a.m. PDT or 12:00 p.m. EDT, which can be accessed by:

·   Internet at (replay available for 90 days following the live call);

·   Phone by dialing (866) 713-8395 and entering the passcode 14603329 (replay available digitally for 7 days at (888) 286-8010 using the passcode, 28248181).

Essex Property Trust, Inc., located in Palo Alto, California and traded on the New York Stock Exchange (ESS), is a fully integrated real estate investment trust (REIT) that acquires, develops, redevelops, and manages multifamily residential properties in selected West Coast communities. Essex currently has ownership interests in 130 apartment communities 27,562 units, and has 908 units in various stages of development. Additional information about Essex can be found on the Company’s web site at www.essexpropertytrust.com.

This press release and accompanying supplemental financial information has been filed electronically on Form

8-K with the Securities and Exchange Commission and can be accessed on the Company’s Web site at www.essexpropertytrust.com. If you are unable to obtain the information via the Web, please contact the Company’s Investor Relations department at (650) 849-1649.

FUNDS FROM OPERATIONS RECONCILIATION

Funds from Operations, as defined by the National Association of Real Estate Investment Trusts (“NAREIT”) is generally considered by industry analysts as an appropriate measure of performance of an equity REIT. Generally, FFO adjusts the net income of equity REITS for non-cash charges such as depreciation and amortization of rental properties, gains/losses on sales of real estate and extraordinary items. Management considers FFO to be a useful financial performance measurement of an equity REIT because, together with net income and cash flows, FFO provides investors with an additional basis to evaluate the performance and ability of a REIT to incur and service debt and to fund acquisitions and other capital expenditures.

FFO does not represent net income or cash flows from operations as defined by generally accepted accounting principles (GAAP) and is not intended to indicate whether cash flows will be sufficient to fund cash needs. It should not be considered as an alternative to net income as an indicator of the REIT's operating performance or to cash flows as a measure of liquidity. FFO does not measure whether cash flow is sufficient to fund all cash needs including principal amortization, capital improvements and distributions to shareholders. FFO also does not represent cash flows generated from operating, investing or financing activities as defined under GAAP. Management has consistently applied the NAREIT definition of Funds from Operations to all periods presented; however, Funds from Operations as disclosed by other REITs may not be comparable to the Company's calculation of FFO. The following table sets forth the Company’s calculation of FFO for the three months ended September 30, 2006 and 2005.

	Three Months Ended 9/30/06
Funds from operations	2006	2005
Net income available to common stockholders	10,686	8,259
Adjustments:
Depreciation and amortization	20,666	20,323
Co-investments (1)	841	147
Gains not included in FFO (2)	(714)	-
Minority interests	1,376	937
Funds from operations	32,855	29,666

(1)   Amount includes the following: (i) depreciation add back for Fund II assets and minority interests, (ii) joint venture NOI, and (iii) City Heights land lease income not recognized for GAAP.

(2)   Amount includes accumulated depreciation on Peregrine Point condominium sales.

This earnings release also presents FFO results that exclude certain non-recurring items. Management believes that the presentation of such results is useful to investors because they illuminate underlying operational trends by excluding significant non-recurring or otherwise unusual transactions. Our criteria for excluding non-recurring its may differ from methods of other companies and should not be regarded as a replacement for corresponding GAAP measures. A reconciliation of FFO for non-recurring items can be found on page S-3 in the Company’s Financial Supplemental Information package.

SAFE HARBOR STATEMENT UNDER THE PRIVATE LITIGATION REFORM ACT OF 1995:

This press release includes “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Such forward-looking statements include statements regarding 2006 FFO per share estimates, anticipated timing of the completion and stabilization of property developments and redevelopments, the anticipated costs and investment returns of property developments and redevelopments, the Company’s projected development projects in 2006 and the Company will exceed its development, redevelopment and acquisitions expectations.. The Company's actual results may differ materially from those projected in such forward-looking statements. Factors that might cause such a difference include, but are not limited to, changes in market demand for rental units and the impact of competition and competitive pricing, changes in economic conditions, unexpected delays in the development and stabilization of development and redevelopment projects, unexpected difficulties in leasing of development and redevelopment projects, total costs of renovation and development investments exceeding our projections and other risks detailed in the Company's filings with the Securities and Exchange Commission (SEC). All forward-looking statements are made as of today, and the Company assumes no obligation to update this information. For more details relating to risk and uncertainties that could cause actual results to differ materially from those anticipated in our forward-looking statements, and risks to our business in general, please refer to our SEC filings, including our most recent Report on Form 10-K for the year ended December 31, 2005.

###

EX-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				Nine Months Ended
(Dollars in thousands, except per share amounts)		September 30,				September 30,
		2006		2005		2006		2005
Revenues:
	Rental and other property	$	89,670	$	81,881	$	261,589	$	239,819
	Management and other fees from affiliates		1,872		1,601		3,526		9,108
			91,542		83,482		265,115		248,927
Expenses:
	Property operating, excluding real estate taxes		23,307		21,254		68,017		62,167
	Real estate taxes		7,535		7,066		22,305		20,517
	Depreciation and amortization		20,666		20,323		61,432		59,945
	Interest		18,525		18,566		57,012		54,866
	Amortization of deferred financing costs		778		451		1,971		1,490
	General and administrative		5,289		5,960		15,190		14,974
	Other expenses		-		-		1,770		1,500
			76,100		73,620		227,697		215,459
Earnings from operations			15,442		9,862		37,418		33,468
Gain on sale of real estate			-		-		-		6,391
Interest and other income			1,701		4,978		4,749		7,932
Equity income (loss) in co-investments			(368)		(98)		(1,184)		17,217
Minority interests			(5,212)		(4,918)		(14,899)		(16,719)
Income before discontinued operations and
	income tax provision		11,563		9,824		26,084		48,289
Income tax provision			(150)		(1,185)		(325)		(2,386)
Income before discontinued operations			11,413		8,639		25,759		45,903
Income and gain from discontinued operations,
	net of minority interests		1,064		108		19,552		28,600
Net income			12,477		8,747		45,311		74,503
Dividends to preferred stockholders			(1,791)		(488)		(2,768)		(1,465)
Net income available to common stockholders		$	10,686	$	8,259	$	42,543	$	73,038
Net income per share - basic		$	0.46	$	0.36	$	1.85	$	3.17
Net income per share - diluted		$	0.45	$	0.35	$	1.82	$	3.13

See Company's 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			Three Months Ended				Nine Months Ended
Selected Line Item Detail			September 30,				September 30,
(Dollars in thousands)			2006		2005		2006		2005
Rental and other property
	Rental		$	84,508	$	77,294	$	246,823	$	226,437
	Other property			5,162		4,587		14,766		13,382
		Rental and other property	$	89,670	$	81,881	$	261,589	$	239,819
Management and other fees from affiliates
	Management		$	806	$	665	$	2,406	$	2,915
	Development and redevelopment			66		40		120		183
	Promote interest from Fund I			1,000		896		1,000		6,010
		Management and other fees from affiliates	$	1,872	$	1,601	$	3,526	$	9,108
General and administrative
	General and administrative		$	7,795	$	7,703	$	22,255	$	20,113
	Allocated to property operating expenses - administrative			(1,382)		(1,293)		(4,018)		(3,799)
	Capitalized and incremental to real estate under development			(1,124)		(450)		(3,047)		(1,340)
		Net general and administrative	$	5,289	$	5,960	$	15,190	$	14,974
Interest and other income
	Interest income		$	1,103	$	175	$	1,679	$	459
	Lease income			398		416		1,183		1,248
	Participating loan (Condo conversion)			-		4,308		-		6,121
	Gain from sale of Town & Country stock			-		-		1,687		-
	Miscellaneous			200		79		200		104
		Interest and other income	$	1,701	$	4,978	$	4,749	$	7,932
Equity income (loss) in co-investments
	Equity income (loss) in co-investments		$	(368)	$	(91)	$	(1,184)	$	261
	Gain on sale of co-investment activities, net			-		(7)		-		17,077
	Early extinguishment of debt			-		-		-		(121)
		Equity income (loss) in co-investments	$	(368)	$	(98)	$	(1,184)	$	17,217
Minority interests
	Limited partners of Essex Portfolio, L.P.		$	1,119	$	826	$	2,541	$	4,568
	Perpetual preferred distributions			2,559		2,559		7,677		7,677
	Series Z and Z-1 incentive units			151		100		453		300
	Third party ownership interests			317		392		1,021		969
	Down REIT limited partners' distributions			1,066		1,041		3,207		3,205
		Minority interests	$	5,212	$	4,918	$	14,899	$	16,719

See Company's 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					Nine Months Ended
(Dollars in thousands, except share and per share amounts)			September 30,					September 30,
			2006		2005		% Change	2006		2005		% Change
Funds from operations
Net income available to common stockholders			$	10,686	$	8,259		$	42,543	$	73,038
Adjustments:
	Depreciation and amortization			20,666		20,323			61,432		60,093
	Co-investments (1)			841		147			2,592		503
	Gains not included in FFO (2)			(714)		-			(12,576)		(51,303)
	Minority interests			1,376		937			4,931		7,707
		Funds from operations	$	32,855	$	29,666		$	98,922	$	90,038
		FFO per share-diluted	$	1.26	$	1.15	8.9%	$	3.83	$	3.51	9.2%
Components of the change in FFO
Non-recurring items:
Fund I - promote interest				(1,000)		(896)			(1,000)		(6,010)
Income generated from TRS activities, net of taxes and expenses				(456)		(1,845)			(456)		(3,658)
Deferred lease revenue on sale of RV parks											(1,134)
Legal settlement											1,500
Vista Pointe - promote distribution and fees									(8,221)
Net gain on sale of Town and Country stock									(717)
Impairment of property									800
Miscellaneous				(200)					(200)		121
		Funds from operations excluding non-recurring items		31,199		26,925			89,128		80,857
		FFO excluding non-recurring items per share-diluted	$	1.19	$	1.05	14.0%	$	3.45	$	3.15	9.6%
Changes in recurring items:
Same property NOI			$	4,084				$	9,802
Non-same property NOI				1,183					4,328
Management fees from joint ventures				167					(572)
Interest expense and amortization of deferred financing costs				(286)					(2,627)
Other items, net				(874)					(2,660)
			$	4,274				$	8,271
Weighted average number of shares outstanding diluted (3)				26,143,923		25,711,320			25,825,185		25,671,923
(1)	Amount includes the following: (i) depreciation addback for Fund II assets and minority interests, (ii) joint venture NOI, and (iii) City Heights land lease income not recognized for GAAP.
(2)	Amount includes accumulated depreciation on Peregrine Point condominium sales.
(3)	Assumes conversion of the weighted average operating partnership interests in the Operating Partnership into shares of the Company's common stock.

See Company's 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 Sheets
(Dollars in thousands)
	September 30, 2006			December 31, 2005
Real Estate:
Land and land improvements	$	561,582		$	551,132
Buildings and improvements		2,103,595			1,932,113
		2,665,177			2,483,245
Less: accumulated depreciation		(457,220	)		(398,476	)
		2,207,957			2,084,769
Real estate under development		101,562			54,416
Investments		53,806			27,228
		2,363,325			2,166,413
Cash and cash equivalents		45,141			28,274
Other assets		37,407			29,488
Deferred charges, net		13,617			15,115
Total assets	$	2,459,490		$	2,239,290
Mortgage notes payable	$	1,097,330		$	1,104,918
Exchangeable bonds		225,000			225,000
Lines of credit		80,000			25,000
Other liabilities		88,608			67,998
Deferred gain		2,193			2,193
Total liabilities		1,493,131			1,425,109
Minority interests		227,761			233,214
Stockholders' Equity:
Common stock		2			2
Series F cumulative redeemable preferred stock, liquidation value		25,000			25,000
Series G cumulative convertible preferred stock, liquidation value		149,500			-
Additional paid-in-capital		658,455			632,646
Distributions in excess of accumulated earnings		(92,849	)		(77,341	)
Accumulated other comprehensive income (loss)		(1,510	)		660
Total stockholders' equity		738,598			580,967
Total liabilities and stockholders' equity	$	2,459,490		$	2,239,290

See Company's 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 - September 30, 2006
(Dollars in thousands)
			Percentage of			Weighted	Weighted
			Total	Balance		Average	Average Maturity
			Debt	Outstanding		Interest Rate	In Years
Mortgage notes payable
	Fixed rate - secured		65%	$	910,895	6.4%	4.6
	Tax exempt variable (1)		13%		186,435	4.8%	25.0
		Total mortgage notes payable	78%		1,097,330	6.2%	8.1
Exchangeable bonds (2)			16%		225,000	3.6%
Line of credit - secured (3)			6%		80,000	6.3%
			6%		80,000	6.3%
		Total debt	100%	$	1,402,330	5.8%
		Scheduled principal payments (excludes lines of credit)
			2006	$	-
			2007		69,541
			2008		147,200
			2009		24,764
			2010		157,388
			Thereafter		923,437
			Total	$	1,322,330
Capitalized interest for the quarter ended September 30, 2006 was approximately $1,153.
(1)		Subject to interest rate protection agreements.
(2)		Exchangeable bonds total $225 million and mature in November 2025. This is an unsecured obligation of the operating partnership, and is
		fully and unconditionally guaranteed by Essex Property Trust, Inc.
(3)		Secured line of credit commitment is $100 million and matures in January 2009.
		This line is secured by eight of Essex's apartment communities. The underlying interest rate is currently the Freddie Mac Reference Rate plus .55% to .59%.

See Company's 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 - September 30, 2006
(Dollars and shares in thousands, except per share amounts)
Total debt	$	1,402,330
Common stock and potentially dilutive securities
Common stock outstanding		23,177
Limited partnership units (1)		2,461
Options-treasury method		250
Total common stock and potentially dilutive securities		25,888	shares
Common stock price per share as of September 30, 2006	$	121.40
Market value of common stock and potentially dilutive securities	$	3,142,803
Perpetual preferred units/stock	$	304,500
Total equity capitalization	$	3,447,303
Total market capitalization	$	4,849,633
Ratio of debt to total market capitalization		28.9%
(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-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 September 30, 2006 and 2005
(Dollars in thousands)
			Southern California					Northern California					Seattle					Other real estate assets (1)					Total
			2006		2005		% Change	2006		2005		% Change	2006		2005		% Change	2006		2005		% Change	2006		2005		% Change
Revenues:
	Same property revenue		$	47,383	$	44,750	5.9%	$	17,122	$	15,521	10.3%	$	13,035	$	11,718	11.2%	$	2,603	$	2,401	8.4%	$	80,143	$	74,390	7.7%
	Non same property revenue (2)			5,727		4,246			1,863		1,242			1,346		1,420			591		583			9,527		7,491
		Total Revenues	$	53,110	$	48,996		$	18,985	$	16,763		$	14,381	$	13,138		$	3,194	$	2,984		$	89,670	$	81,881
Property operating expenses:
	Same property operating expenses		$	15,164	$	14,446	5.0%	$	5,692	$	5,357	6.3%	$	5,017	$	4,510	11.2%	$	1,286	$	1,177	9.3%	$	27,159	$	25,490	6.5%
	Non same property operating expenses (2)			1,819		1,374			684		369			511		510			669		577			3,683		2,830
		Total property operating expenses	$	16,983	$	15,820		$	6,376	$	5,726		$	5,528	$	5,020		$	1,955	$	1,754		$	30,842	$	28,320
Net operating income:
	Same property net operating income		$	32,219	$	30,304	6.3%	$	11,430	$	10,164	12.5%	$	8,018	$	7,208	11.2%	$	1,317	$	1,224	7.6%	$	52,984	$	48,900	8.4%
	Non same property operating income (2)			3,908		2,872			1,179		873			835		910			(78)		6			5,844		4,661
		Total net operating income	$	36,127	$	33,176		$	12,609	$	11,037		$	8,853	$	8,118		$	1,239	$	1,230		$	58,828	$	53,561
Same property operating margin				68%		68%			67%		65%			62%		62%			51%		51%			66%		66%
Same property turnover percentage				60%		59%			66%		61%			64%		71%			80%		60%			63%		62%
Same property concessions			$	181	$	143		$	34	$	155		$	6	$	74		$	10	$	39		$	231	$	410
Average same property concessions per turn (3)			$	104	$	84		$	48	$	248		$	8	$	94		$	42	$	218		$	68	$	124
Net operating income percentage of total				61%		62%			21%		21%			15%		15%			3%		2%			100%		100%
Loss to lease (4)			$	8,011				$	8,869				$	2,784				$	385				$	20,049
	Loss to lease as a percentage
	of rental income			3.8%					10.3%					4.7%					4.8%					5.7%
Reconciliation of apartment units at end of period
	Same property apartment units			11,602					4,231					4,452					1,177					21,462
	Consolidated Apartment Units			12,957		12,784			5,318		4,621			4,943		4,956			1,177		1,177			24,395		23,538
	Joint Venture			480		598			2,101		1,299			515		515			-		-			3,096		2,412
	Under Development (5)			543		637			238		-			127		-			-		-			908		637
		Total apartment units at end of period		13,980		14,019			7,657		5,920			5,585		5,471			1,177		1,177			28,399		26,587
		Percentage of total		49%		53%			27%		22%			20%		21%			4%		4%			100%		100%
Average same property financial occupancy				96.6%		96.8%			97.0%		96.6%			97.1%		97.1%			94.9%		95.6%			96.7%		96.8%
(1)		Includes apartment communities located in other geographic areas including four properties in Portland, Oregon and one property in Houston, Texas, and other rental properties including commercial properties.
(2)		Includes properties which subsequent to June 30, 2005 were either acquired or in a stage of development or redevelopment without stabilized operations.
(3)		Average same property concessions per turn is the dollar amount per unit resulting from the same property concessions divided by the product of the same property turnover percentage times the same property apartment units.
(4)		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.
(5)		Fund II owns 395 of the units under development as of September 30, 2006.

See Company's 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 September 30, 2006, September 30, 2005 and June 30, 2006
(Dollars in thousands)
			Average Property Rental Rates							Property Revenue							Property Revenue
			September 30,		September 30,					September 30,		September 30,					June 30,		Sequential
Region	Units		2006		2005		% Change			2006		2005		% Change			2006		% Change
Southern California
Ventura County		2,236	$	1,329		1,263		5.2	%	$	9,120	$	8,570		6.4	%	$	8,798		3.7	%
Los Angeles County		4,285		1,477		1,376		7.3	%		19,849		18,729		6.0	%		19,218		3.3	%
Orange County		2,037		1,465		1,361		7.6	%		9,095		8,464		7.5	%		8,907		2.1	%
San Diego County		2,768		1,029		986		4.4	%		8,651		8,279		4.5	%		8,490		1.9	%
Riverside County		276		820		778		5.4	%		668		708		-5.6	%		681		-1.9	%
Total Southern California		11,602	$	1,324	$	1,244		6.4	%	$	47,383	$	44,750		5.9	%	$	46,094		2.8	%
Northern California
San Francisco MSA		175	$	1,563		1,439		8.6	%	$	838	$	778		7.7	%	$	806		4.0	%
Santa Clara County		1,870		1,396		1,259		10.9	%		7,962		7,050		12.9	%		7,736		2.9	%
Alameda County		1,116		1,113		1,050		6.0	%		3,794		3,552		6.8	%		3,727		1.8	%
Contra Costa County		1,070		1,393		1,291		7.9	%		4,528		4,141		9.3	%		4,419		2.5	%
Total Northern California		4,231	$	1,328	$	1,219		8.9	%	$	17,122	$	15,521		10.3	%	$	16,688		2.6	%
Seattle		4,452	$	916	$	831		10.2	%	$	13,035	$	11,718		11.2	%	$	12,471		4.5	%
Other real estate assets		1,177	$	714	$	659		8.3	%	$	2,603	$	2,401		8.4	%	$	2,550		2.1	%
Total same property revenue		21,462	$	1,206	$	1,122		7.5	%	$	80,143	$	74,390		7.7	%	$	77,803		3.0	%

See Company's 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 Pipeline - September 30, 2006
(Dollars in millions)
			Estimated Units	Total Incurred to Date	Estimated Remaining Costs	Estimated Total Cost	Construction Start	Construction Complete	Initial Occupancy/ Sale	Stabilized Operations/ Last Sale
Development Projects
Project Name		Location
Northwest Gateway		Los Angeles, CA	275	$ 23.5	$ 47.6	$ 71.1	Jan-06	Dec-07	Dec-07	Oct-08
100 Grand		Oakland, CA	238	8.4	87.8	96.2	Feb-07	Feb-09	Feb-09	Jul-09
Consolidated - Development Projects			513	31.9	135.4	167.3
Development Projects - Fund II
Project Name		Location
Lake Union		Seattle, WA	127	6.6	28.8	35.4	Aug-06	Jan-08	Jan-08	Jun-08
Studio City		Studio City, CA	149	21.3	32.0	53.3	Apr-07	Jan-09	Jan-09	Apr-09
Chatsworth (1)		Chatsworth, CA	119	0.7	38.7	39.4	Jun-07	May-09	May-09	Sep-09
Fund II - Development Projects			395	28.6	99.5	128.1
Total - Development Projects			908	60.5	234.9	295.4
Predevelopment Projects
Project Name		Location
	Moorpark	Moorpark, CA	-	-	-	-	Jul-07	Apr-09	Apr-09	Dec-09
	Berkeley	Berkeley, CA	-	-	-	-	Sep-07	Sep-09	Sep-09	Mar-10
	Hollywood	Hollywood, CA	-	-	-	-	Jun-08	Jun-10	Jun-10	Dec-10
	Tasman	Sunnyvale, CA	-	-	-	-	Jun-08	Jun-10	Jun-10	Sep-11
	River Oaks	San Jose, CA	-	-	-	-	Jan-10	Sep-13	Jan-12	Jul-14
	Other Predevelopment Projects (2)		-	-	-	-
			1,845	40.5	516.5	557.0
Other Projects (TRS)
Project Name		Location
	Tracy	Tracy, CA	30	-	-	-	Aug-05	Nov-06	Dec-06	Mar-07
	Peregrine Pointe (3)	Issaquah, WA	38	-	-	-	Jan-06	Dec-06	Jul-06	Mar-07
	View Pointe	Newcastle, WA	24	-	-	-	May-07	Jul-08	Jul-08	Nov-08
	Archer	San Jose, CA	45	-	-	-	Aug-07	Dec-08	Dec-08	Mar-09
			137	21.4	24.9	46.3
Development Joint Ventures (4)			-	7.8	1.0	8.8
Grand Total - Development Pipeline			2,890	130.2	777.3	907.5
(1)	Fund II expects to close on the Chatsworth property during the fourth quarter of 2006.
(2)	There are two additional predevelopment projects, one is located in Northern California and one in Southern California.
(3)	The property is in the process of being converted and sold as condominium units. Twenty eight units have been sold as of September 30, 2006.
(4)	The Company has entered into four joint venture development projects with third parties. Total estimated costs are not determinable at this time,
	except for $1.0 in additional commitments as of September 30, 2006.

See Company's 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 - September 30, 2006
(Dollars in thousands)
			Total	Estimated	Estimated
			Incurred	Remaining	Total	Redevelopment
	Project Name	Units	To Date	Cost	Cost	Start Date
	Mira Woods, Mira Mesa, CA	355	4,457	1,550	6,007	Sep-04
	Palisades - Phase I and II, Bellevue, WA	192	4,451	2,120	6,571	Sep-04
	Avondale at Warner Center, Woodland Hills, CA	446	8,706	3,232	11,938	Oct-04
	Sammamish View, Bellevue, WA	153	1,726	1,605	3,331	Dec-05
	Woodland/Foothill Commons, Bellevue, WA	596	131	3,235	3,366	Apr-06
	Pathways, Long Beach, CA	296	107	10,590	10,697	Jul-06
	Montclaire - Phase I - III, Sunnyvale, CA	390	2,135	12,943	15,078	Aug-06
	Treetops, Fremont, CA	172	86	8,172	8,258	Sep-06
	Total	2,600	$ 21,799	$ 43,447	$ 65,246
	Re-stabilized Communities - Third Quarter 2006
	Bridle Trails, Kirkland, WA

See Company's 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.
													For three months
Investments - September 30, 2006				Essex		Total Fund		Debt					months ended
(In thousands)				Book		Estimated				Interest	Maturity		9/30/2006
				Value		Value	Units	Amount	Type	Rate	Date		NOI
Joint Ventures
	Essex Apartment Value Fund, L.P. (Fund I)
		Net assets (1)	$	582	$	2,378						$	-
	Essex Apartment Value Fund II, L.P. (Fund II)
		Alderwood Park, Newark, CA					96	7,177	Fixed	5.56%	Jun-2015
		Carlmont Woods, Belmont, CA					195	13,180	Fixed	4.89%	Dec-2013
		Davey Glen, Belmont, CA					69	6,654	Fixed	6.13%	Aug-2016
		Echo Ridge, Snoqualmie, WA					120	13,508	Fixed	5.01%	Sep-2014
		Enclave, San Jose, CA					637	22,245	Fixed	7.26%	Jan-2018
		Enclave, San Jose, CA					-	60,000	Variable	3.64%	Dec-2029
		Harbor Cove, Foster City, CA					400	35,540	Fixed	4.89%	Dec-2013
		Morning Run, Monroe, WA					222	13,960	Fixed	5.10%	Oct-2014
		Parcwood, Corona, CA					312	25,877	Fixed	4.89%	Dec-2013
		Regency Towers, Oakland, CA					178	11,265	Fixed	5.16%	Mar-2014
		Renaissance, Los Angeles, CA					168	23,497	Fixed	6.51%	May-2011
		Tower @ 801, Seattle, WA					173	19,691	Fixed	4.91%	Aug-2014
		Total		39,706		432,284	2,570	252,594					4,797
	Fund II - Development Pipeline (2)
		Lake Union, Seattle, WA					127
		Studio City, Studio City, CA					149
		Chatsworth, Chatsworth, CA					119
		Total		5,492		28,637	395
		Line of credit						36,650	Var.	LIBOR+0.875%	Jun-2007
				45,198		460,921	2,965	289,244
		Capitalized costs		720
				45,918
	Mountain Vista Apartments (3)			6,806									1,165
	Other			500									-
			$	53,806
	(1)	Net assets primarily consist of cash proceeds less estimated liabilities which includes the $1 million in promote due the Company.
	(2)	See S-9 for more detail about the Fund II Development Pipeline.
	(3)	Included in FFO for Q3 is $196 for the Company's preferred interest in this property, and the approximate fair value of this investment is $14 million
		as of September 30, 2006.

See Company's 10-Q for additional disclosures

S-11

E S S E X   P R O P E R T Y   T R U S T,   I N C.
Consolidated Co-Investments - September 30, 2006
(Dollars in thousands)
The Company enters into co-investment transactions with third party developers, owners and investors of apartment properties. In accordance with FIN 46R, the Company consolidates certain of these co-investment transactions, resulting in minority interests corresponding to the ownership interest of the third-party developer, owner or investor.
The following table summarizes the consolidated co-investment transactions:
										Operations for the quarter ended
	Balance as of September 30, 2006									September 30, 2006
	Investment in		Related		Minority			Down-REIT				Operating
	Real Estate		Debt		Interest			Units (1)		Revenue		Expenses		NOI
Down-REITs:
Anchor Village	$	10,764	$	10,750	$	2,505			118,988	$	673	$	282	$	391
Barkley Apartments		9,567		5,009		2,320			80,302		600		217		383
Brookside Oaks		20,836		14,393		9,363			230,938		616		200		416
Capri at Sunny Hills		16,296		11,751		4,069			188,467		604		159		445
Brentwood Apartments		13,684		9,538		3,951			90,591		565		183		382
Hidden Valley (Parker Ranch)		45,685		33,686		6,089			62,647		1,360		371		989
Highridge Apartments		20,773		18,772		6,699			321,249		1,362		381		981
Montejo Apartments		8,999		5,921		1,534			38,038		439		128		311
Treehouse Apartments		12,195		7,972		3,264			75,700		586		168		418
Valley Park Apartments		15,720		10,099		820			60,892		690		179		511
Villa Angelina Apartments		20,879		13,656		2,611			62,339		942		259		683
		195,398		141,547		43,225			1,330,151		8,437		2,527		5,910
Other Co-investments transactions:
Derian Office Building		17,203		-		-			n/a (note 2)		481		121		360
City Heights		31,285		32,850		-			n/a (note 3)		2,217		776		1,441
The Bluffs		8,959		12,414		(151	)		n/a		731		220		511
(1) Represents the number of Down-REIT units that are currently outstanding. Generally, Down-REIT units can be redeemed at the holder's election for cash equal to the current price of Essex's common stock.
(2) Essex has mortgage loans to the owners of this property with an aggregate principal balance outstanding of $23.9 million as of September 30, 2006.
(3) The Company owns the land and has leased the improvements to an unrelated third-party investor. The leashold interest entitles the Company to receive a monthly payment during the 34 year term of the lease. The Company may sell its interest in the property starting 2007, in which case the Company is entitled to receive 20% of the net sales price (without considering related debt), plus unpaid subordination fees. The cumulative unrecognized subordination fees of approximately $8.5 million as of September 30, 2006 will be recorded as income for GAAP and FFO purposes when paid to Essex.

See Company's 10-Q for additional disclosures

S-12

	ESSEX PROPERTY TRUST, INC.
	Real Estate Information as of September 30, 2006
						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	Enclave, The	4355 Renaissance Drive	San Jose	CA	637	525,463		2005	1998
1	Esplanade	350 East Taylor St.	San Jose	CA	278	279,000		2004	2002
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
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
				10%	2,897	2,448,763
	Alameda County
1	Stevenson Place (The Apple)	4141 Stevenson Blvd.	Fremont	CA	200	146,200		1983	1971
1	Waterstone at Fremont (Mountain Vista )	39600 Fremont Blvd	Fremont	CA	526	433,100		2000	1975
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	Regency Towers	1130 Third Ave.	Oakland	CA	178	140,900		2005	1975
	100 Grand	100 Grand Avenue	Oakland	CA	238	205,026
1	Summerhill Commons	36826 Cherry Street	Newark	CA	184	139,000		1987	1987
1	Alderwood Park Apartments	37057 Magnolia Street	Newark	CA	96	74,624		2006	1987
				7%	1,916	1,527,424
	Contra Costa County
1	San Marcos (Vista del Mar)	Hilltop Drive at Richmond Pkwy	Richmond	CA	432	407,600		2003	2003	120 units 2005
1	Bel Air (The Shores)	2000 Shoreline Drive	San Ramon	CA	462	391,000		1995	1988	114 units 2000
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%	1,070	1,005,400
	San Mateo County
1	Carlmont Woods	2515 Carlmont Drive	Belmont	CA	195	107,200		2004	1971
1	Harbor Cove	900 E. Hillsdale Blvd.	Foster City	CA	400	306,600		2004	1971
1	Davey Glen	200 Davey Glen Road	Belmont	CA	69	65,974		2006	1962
1	Hillsdale Garden	3421 Edison Avenue	San Mateo	CA	697	611,505		2006	1948
				5%	1,361	1,091,279
	San Francisco and Marin Counties
1	Mt. Sutro Terrace Apartments	480 Warren Drive	San Francisco,CA	CA	99	64,000		1999	1973
1	Vista Belvedere	15 Red Hill Circle	Tiburon	CA	76	78,300		2004	1963
				1%	175	142,300
29	Total San Francisco Bay Area			27%	7,419	6,215,166
	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	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	Marbella	600 South Detroit Street	Los Angeles	CA	60	50,108		2005	1991
	Northwest Gateway	1302 West 2nd St.	Los Angeles	CA	275	225,000
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	Renaissance	630 South Masselin Avenue	Los Angeles	CA	168	154,268		2006	1990
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	Highridge	28125 Peacock Ridge Drive	Rancho Palos Verde	CA	255	290,200		1997	1972
	Studio City	4043 Radford Avenue	Studio City	CA	149	127,238
1	Walnut Heights	20700 San Jose Hills Road	Walnut	CA	163	146,700		2003	1964
1	Avondale at Warner Center	22222 Victory Blvd.	Woodland Hills	CA	446	331,000		1999	1970
				19%	5,214	4,206,076
	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
	Chatsworth	Topanga Blvd	Lassen	CA	119	125,400
1	Mariner's Place	711 South B Street	Oxnard	CA	105	77,200		2000	1987
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
1	Hidden Valley (Parker Ranch)	5065 Hidden Park Court	Simi Valley	CA	324	310,900		2004	2004
1	Lofts at Pinehurst,The (Villa Scandia)	1021 Scandia Avenue	Ventura	CA	118	71,100		1997	1971
1	Pinehurst	3980 Telegraph Road	Ventura	CA	28	21,200		2004	1973
1	Woodside Village	675 Providence Ave.	Ventura	CA	145	136,500		2004	1987
				8%	2,236	1,933,500
	Santa Barbara County
1	Chimney Sweep		Isle Vista	CA	91			2006	1967
1	CBC		Isle Vista	CA	148			2006	1962
				1%	239	179,908
	SOUTHERN CALIFORNIA (cont'd)
	Orange County
1	Barkley Apartments	2400 E. Lincoln Ave.	Anahiem	CA	161	139,800		2000	1984
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	Hillsborough Park	1501 South Beach Boulevard	La Habra	CA	235	215,500		1999	1999
1	Trabuco Villas	25362 Mosswood Way	Lake Forest	CA	132	131,000		1997	1985
1	Fairways Apartments	2 Pine Valley Lane	Newport Beach	CA	74	107,100		1999	1972
1	Villa Angelina	201 E. Chapman Ave.	Placentia	CA	256	217,600		2001	1970
1	Brentwood Apartment Homes (Hearthstone)	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
				8%	2,037	1,872,200
	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	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	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	Mission Hills	218 Rancho Del Oro	Oceanside	CA	282	244,000		2005	1984
1	Bluffs II, The	6466 Friars Road	San Diego	CA	224	126,700		1997	1974
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 - 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%	3,123	2,375,500
	Riverside County
1	Parcwood	1700 Via Pacifica	Corona	CA	312	270,000		2004	1989
1	Devonshire Apartments	2770 West Devonshire Ave.	Hemet	CA	276	207,200		2002	1988
				2%	588	477,200
66	Total Southern California			49%	13,437	11,044,384
	SEATTLE METROPOLITAN AREA
1	Cedar Terrace	3205 115th Ave. NE	Bellevue	WA	180	174,200		2005	1984
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	Sold 28 condos
1	Peregrine Point	21209 SE 42nd Street	Issaquah	WA	38	85,900		2003	2003
1	Wandering Creek	12910 SE 240th	Kent	WA	156	124,300		1995	1986	16 units 2006
1	Bridle Trails	6600 130th Avenue, NE	Kirkland	WA	108	73,400		1997	1986
1	Evergreen Heights	12233 NE 131st Way	Kirkland	WA	200	188,300		1997	1990
1	Morning Run	18463 Blueberry Lane	Monroe	WA	222	221,786		2005	1991
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	Fairwood Pond	14700 SE Petrovitsky Rd.	Renton	WA	194	189,200		2004	1997
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
	Lake Union	2833 - 2851 Eastlake Avenue	Seattle	WA	127	-
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
1	Tower @ 801	801 Pine Street	Seattle	WA	173	118,500		2005	1970
1	Echo Ridge	34907 SE Kinsey Street	Snoqualmie	WA	120	124,359		2005	2000
29	Total Seattle Metropolitan Area			20%	5,458	4,703,445
	OTHER REAL ESTATE ASSETS
1	St. Cloud Apartments	6525 Hilcroft	Houston	TX	302	306,800		2002	1968
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	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
5				4%	1,177	306,800
	129	Multifamily Properties		100%	27,491	22,269,795
	5	Multifamily Properties Under Construction			908
	Avg. square footage	810
	Avg. units per property	213
	Avg. age of property	2004
	(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
	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
	Office Buildings
	Essex Corporate Headquarter Bldg.	925 E. Meadow Dr.	Palo Alto	CA		17,400		1997	1988
	Derian Office Building	17461 Derian Av.	Irvine	CA		110,000		2000	1983
	Essex Southern Cal. Office Building	22110-22120 Clarendon St.	Woodland Hills	CA		38,940		2001	1982
						166,340

New Residential Supply: Permits as % of Current Stock
12 Month Permit Period: Trailing 12 Months September 2006
	Single Family Data					Multi-Family Data			All Residential Data
Market	Median SF Price (2005**)	2005 SF Affordability*	SF Stock 2000	SF Permits Last 12 Months	% of Stock	MF Stock 2000	MF Permits Last 12 months	% of Stock	Total Residential Permits Last 12 Months	% of Stock
Nassau-Suffolk	$471,000	78%	740,000	3,894	0.5%	240,000	266	0.1%	4,160	0.4%
New York PMSA	$461,000	50%	760,000	2,078	0.3%	2,920,000	21,476	0.7%	23,554	0.6%
Boston	$431,000	72%	1,530,000	6,775	0.4%	670,800	7,266	1.1%	14,041	0.6%
Philadelphia	$231,000	108%	1,532,000	12,668	0.8%	515,100	3,603	0.7%	16,271	0.8%
Baltimore	$282,000	100%	797,000	6,876	0.9%	268,000	2,244	0.8%	9,120	0.9%
Minneapolis	$233,000	121%	818,000	13,787	1.7%	351,800	2,667	0.8%	16,454	1.4%
Wash. D.C. PMSA	$441,000	80%	1,299,000	19,990	1.5%	644,300	10,206	1.6%	30,196	1.6%
Chicago	$275,001	196%	1,700,000	31,745	1.9%	1,404,900	16,484	1.2%	48,229	1.6%
Denver	$254,000	108%	582,000	14,691	2.5%	274,900	4,114	1.5%	18,805	2.2%
Miami/Ft. Lauderdale	$386,000	53%	717,000	16,972	2.4%	876,000	22,205	2.5%	39,177	2.5%
Dallas-Ft. Worth	$147,000	166%	1,381,000	49,115	3.6%	650,000	11,210	1.7%	60,325	3.0%
Phoenix	$268,000	83%	970,000	41,027	4.2%	360,500	7,634	2.1%	48,661	3.7%
Houston	$145,000	163%	1,027,000	55,776	5.4%	547,700	12,555	2.3%	68,331	4.3%
Atlanta	$171,000	158%	1,122,000	58,821	5.2%	467,800	12,150	2.6%	70,971	4.5%
Orlando	$261,000	85%	482,000	25,041	5.2%	201,500	7,501	3.7%	32,542	4.8%
Austin	$167,001	255%	326,000	18,844	5.8%	169,900	7,886	4.6%	26,730	5.4%
Las Vegas	$313,000	68%	440,000	25,427	5.8%	215,700	11,299	5.2%	36,726	5.6%
Totals	$290,589	117%	16,223,000	403,527	2.5%	10,778,900	160,766	1.5%	564,293	2.1%
Seattle	$342,000	81%	656,000	11,001	1.7%	354,487	8,672	2.4%	19,673	1.9%
Portland	$253,000	99%	561,000	11,236	2.0%	225,335	4,777	2.1%	16,013	2.0%
San Francisco	$755,000	44%	368,000	965	0.3%	344,000	3,847	1.1%	4,812	0.7%
Oakland	$655,000	50%	625,000	5,272	0.8%	270,000	4,840	1.8%	10,112	1.1%
San Jose	$711,000	52%	388,000	2,230	0.6%	192,000	3,227	1.7%	5,457	0.9%
Los Angeles	$505,000	45%	1,877,000	10,847	0.6%	1,392,963	12,912	0.9%	23,759	0.7%
Ventura	$564,000	58%	199,000	1,527	0.8%	53,295	1,113	2.1%	2,640	1.0%
Orange	$696,000	46%	628,000	4,119	0.7%	340,800	3,402	1.0%	7,521	0.8%
San Diego	$615,000	40%	664,000	5,184	0.8%	375,664	3,625	1.0%	8,809	0.8%
PNW	$300,974	89%	1,217,000	22,237	1.8%	579,822	13,449	2.3%	35,686	2.0%
No Cal	$697,381	49%	1,381,000	8,467	0.6%	806,000	11,914	1.5%	20,381	0.9%
So Cal	$565,787	45%	3,368,000	21,677	0.6%	2,162,722	21,052	1.0%	42,729	0.8%
ESSEX	$542,229	55%	5,966,000	52,381	0.9%	3,548,543	46,415	1.3%	98,796	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 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 (6.0%).
Median Household Income is estimated from US Census 2004 data and Income Growth from BEA and Population Growth from the US Census.
**2005 Median Home Prices - 3rd Quarter Estimates: Nationall Realtors Association

Essex Markets Forecast 2006: Supply, Jobs and Apartment Market Conditions
	Residential Supply*				Job Forecast**		Forecast Market Conditions***
Market	New MF Supply	% of Total Stock	New SF Supply	% of Total Stock	Est.New Jobs Dec-Dec	% Growth	Estimated Y-o-Y Rent Growth	Estimated Year End Occupancy
Seattle	2,300	0.6%	11,000	1.6%	46,000	3.3%	8.50%	95.50%
Portland	3,250	1.4%	11,000	2.0%	27,000	2.8%	5.00%	95.00%
San Francisco	2,300	0.6%	1,000	0.3%	14,000	1.5%	8.50%	96.50%
Oakland	2,300	0.8%	6,700	1.1%	20,000	1.9%	7.00%	96.00%
San Jose	2,400	1.2%	2,300	0.6%	12,000	1.4%	8.00%	96.00%
No. Cal.	7,000	0.9%	10,000	0.7%	46,000	1.6%	7.75%	96.00%
Ventura	700	1.3%	2,500	1.2%	7,000	2.5%	4.50%	95.50%
Los Angeles	9,200	0.6%	10,000	0.5%	60,000	1.5%	5.00%	96.00%
Orange	4,000	0.8%	4,500	0.7%	27,000	1.8%	5.50%	96.00%
San Diego	4,800	1.2%	9,000	1.3%	24,000	1.9%	3.50%	95.50%
So. Cal.	18,700	0.8%	26,000	0.8%	118,000	1.6%	4.75%	95.75%
All data is an Essex Forecast
U.S. Economic Assumptions: G.D.P. - 3.75% Growth, Jobs - 1.7% Growth
* 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 New Residential Supply schedule.
** Job Forecast/Performance refers to the difference between Total Non-Farm Industry Employment (not
Seasonally Adjusted) projected through December 2006 over the comparable actual figures for December 2005. The first
column represents the current Essexforecast of the increase in Total Non-Farm Industry Employment. The second column
represents these forecasted new jobs as a percent of the December 2005 base.
***The Forecast Market Conditions represents Essex's estimates of the Change in Rents/Occupnacy Rates at the
end of 2006. The Estimated Year-over-Year Rent Growth represents the forecast change in Effective Market Rents for
December 2006 vs.December 2005 (where Market refers to the entire MSA apartment market, NOT the Essex portfolio).
The estimated Year End Occupancy represents Essex's forecast of Market Occupancy Rates for December 2006.