-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, MkISoDfDqgJdL17LbPfpVEvcLo6xcCXZX9CS8QrImdoULIsOtHm3pwGwLEemvjQ3 OdT8iCV32XFZtcuU8825jg== 0000920522-07-000009.txt : 20070208 0000920522-07-000009.hdr.sgml : 20070208 20070207180917 ACCESSION NUMBER: 0000920522-07-000009 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 3 CONFORMED PERIOD OF REPORT: 20070207 ITEM INFORMATION: Results of Operations and Financial Condition ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20070208 DATE AS OF CHANGE: 20070207 FILER: COMPANY DATA: COMPANY CONFORMED NAME: ESSEX PROPERTY TRUST INC CENTRAL INDEX KEY: 0000920522 STANDARD INDUSTRIAL CLASSIFICATION: REAL ESTATE INVESTMENT TRUSTS [6798] IRS NUMBER: 770369576 STATE OF INCORPORATION: MD FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-13106 FILM NUMBER: 07589352 BUSINESS ADDRESS: STREET 1: 925 EAST MEADOW DR CITY: PALO ALTO STATE: CA ZIP: 94303 BUSINESS PHONE: 6504943700 MAIL ADDRESS: STREET 1: 925 EAST MEADOW DRIVE CITY: PALO ALTO STATE: CA ZIP: 94303 8-K 1 form_8-k.htm FORM 8-K Form 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 February 7, 2007 Essex Property Trust, Inc. (the “Company”) issued a press release announcing the Company’s earnings for the quarter ended December 31, 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 February 7, 2007
 
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: NoveFebruary 7, 2007
 
        
   
 
 
 
                                                    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 February 7, 2007
 
 
99.2
 
  
 
Supplemental Information
 

EX-99.1 2 ex99_1.htm EXHIBIT 99.1 Exhibit 99.1

FOR IMMEDIATE RELEASE
Nicole Culbertson
(650) 849-1649


Essex Announces 2006 Fourth Quarter and Annual Earnings Results
Net Operating Income Increases 10.1% Percent For The Fourth Quarter

Palo Alto, California—February 7, 2007—Essex Property Trust, Inc. (NYSE:ESS), announces its fourth quarter and annual operating results for the quarter and year ended December 31, 2006.
 
Funds From Operations (FFO) for the quarter ended December 31, 2006, totaled $31.6 million, or $1.19 per diluted share, an increase of 21.5% compared to $25.1 million, or $0.98 per diluted share for the quarter ended December 31, 2005. For the year ended December 31, 2006, FFO totaled $130.5 million, or $5.01 per diluted share, an increase of 11.9% compared to $115.1 million, or $4.48 per diluted share for the year ended December 31, 2005.
 
Net income available to common stockholders for the quarter ended December 31, 2006, totaled $15.1 million, or $0.63 per diluted share compared to $4.7 million, or $0.20 per diluted share for the quarter ended December 31, 2005. For the year ended December 31, 2006, net income available to common stockholders totaled $57.6 million, or $2.45 per diluted share, compared to $77.8 million or $3.32 per diluted share for the year ended December 31, 2005.
 
"Our fourth quarter and year-end results reflect the superior performance we saw across all of our supply-constrained markets,” said Keith Guericke, President and Chief Executive Officer. Both the Seattle Metro and Northern California regions continue to outperform our high expectations, where annual same-property NOI grew 10 percent and 9 percent, respectively, compared to a year ago. Mr. Guericke continued, “Looking forward, we expect to see continued strength in our markets where rents are steadily increasing, yet still at historical lows compared to the alternative cost of homeownership.”
 
Same-Property Operations
Same-property operating results exclude properties that do not have comparable results. The table below illustrates the percentage change in same-property revenues, operating expenses, and net operating income (“NOI”) for the quarter and year ended December 31, 2006, compared to the quarter and year ended December 31, 2005:
 
  Quarter ended 12/31/06  Year Ended 12/31/06   2006 Original Guidance
 
Rev.
 
Ops. Exp.
 
NOI
 
Rev.
 
Ops. Exp.
 
NOI
 
Rev.
 
Ops. Exp.
 
NOI
Southern California
6.4%
1.9%
8.5%
5.8%
3.5%
7.0%
3.9%
3.0%
4.3%
Northern California
8.9%
6.5%
10.1%
8.4%
7.2%
9.0%
4.3%
5.7%
3.6%
Seattle Metro
11.7%
5.5%
15.5%
9.2%
8.0%
10.0%
3.9%
4.9%
3.3%
Same-Property Avg.
7.7%
3.2%
10.1%
6.9%
4.9%
8.0%
4.0%
3.9%
4.0%

Sequential percentage changes in same-property revenues, expenses, and NOI for the quarter ended December 31, 2006 versus the quarter ended September 30, 2006 are as follows:

   
Q4 2006 compared to Q3 2006
                  
Revenues
Expenses
NOI
Southern California
1.60%
-0.70%
2.70%
Northern California
-0.20%
8.70%
-4.40%
Seattle Metro
1.50%
-5.30%
5.70%
Same-Property Average
1.30%
-0.30%
2.00%
 
Same-property financial occupancies for the quarters ended are as follows:
       
 
12/31/06
09/30/06
12/31/05
Southern California
96.3%
96.8%
97.1%
Northern California
94.8%
97.3%
96.8%
Seattle Metro
96.0%
97.1%
96.0%
 Same Property Average
 95.9%
 96.8%
 96.8%

The Company’s FFO, excluding non-recurring items, increased 11.0% or $4.1 million for the quarter ended December 31, 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 fourth quarter results for 2006 and 2005:
 
§  
Promote income from Essex Apartment Value Fund I increased FFO in the amount of approximately $.2 million and approximately $1.0 million during fourth quarter of 2006 and 2005, respectively.
 
§  
In 2006, incremental gains related to the sale of condominium units at Peregrine Point generated FFO of approximately $.4 million.
 
§  
In 2005, the Company recorded an impairment loss in the amount of $1.3 million resulting from the write-down of a property in Houston, Texas, and pre-payment penalties and write-off of deferred charges totaling approximately $1.6 million related to early termination of various mortgage notes payable.
 
Acquisitions/Dispositions
In December, the company acquired Camino Ruiz Square apartments, a 160-unit community located in Camarillo, California for approximately $32.9 million.

In December, the Company sold Emerald Palms apartments, a 152-unit garden-style community located in San Diego for approximately $20.5 million, for a gain of approximately $6.7 million.

The Company sold 17 condominium units at Peregrine Point during the fourth quarter of 2006, and the 21 remaining units are expected to be sold in the first four months of 2007.

City Heights apartments, a 687-unit community located in Los Angeles is classified as held for sale as of December 31, 2006, and is expected to be sold to a third party for a gain in the first quarter of 2007.

Development Activites
The Company’s development efforts continued to progress during the fourth quarter of 2006 with three projects currently under construction and two projects starting construction in the first half of 2007. Exceeding its construction goal of $200 million for the year, and increasing the development pipeline to $900 million, the Company’s development program is well positioned for growth in 2007. The development team has expanded with the hiring of two Development Managers for the Northern California and Southern California regions.
 
2
During the fourth quarter of 2006, the Company completed the subterranean garage and started framing at Northwest Gateway, a 275-unit community located in downtown Los Angeles, California. Initial leasing activity is scheduled for February 2008.

Construction commenced at 100 Grand, a 238-unit community located near Lake Merritt in Oakland, California. Completion of the 22-story high-rise is anticipated for December 2008.

In January 2007, the Company purchased 14.2 acres improved with four commercial buildings consisting of 262,000 net rentable square feet located in San Jose, California. The buildings are subject to a two-year lease with two, six-month lease option extensions with the previous owner. The City of San Jose has approved a General Plan Amendment to accommodate a multi-family housing development with density ranging from 55 to 90 units per acre. The Company will continue to pursue the design and entitlement process during the leaseback period.

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 Supplemental Financial Information package.

Essex Apartment Value Fund II, L.P.
Essex and several institutional partners formed the Essex Apartment Value Fund II, L.P. (“Fund II”) to broaden the Company’s capital alternatives. The Company’s co-investment activities enhance its financial flexibility by providing an alternative source of capital to fund new acquisition and development transactions. Fund II is fully invested and closed for any future acquisitions or development.

During the fourth quarter, Fund II acquired a 3.1 acre parcel of land located in Chatsworth, California. Construction of a 119-unit apartment community on the site is expected to commence in June of 2007 for a total estimated cost of approximately $39.4 million.

Construction continued on schedule for Lake Union, a 127-unit community located in Seattle, Washington. Initial leasing activity is scheduled for January 2008.

Redevelopment Activities
The Company defines redevelopment communities as existing properties owned or recently acquired, which have been targeted for additional investment by the Company with the expectation of increased financial returns through property improvement. During redevelopment, apartment units may not be available for rent and, as a result, may have less than stabilized operations. As of December 31, 2006, the Company had ownership interests in 12 redevelopment communities aggregating 3,648 apartment units with estimated redevelopment costs of $90.2 million, of which approximately $51.2 million remains to be expended. These amounts exclude redevelopment projects owned by Fund II.

In the final stages of redevelopment, Mira Monte Apartments (formerly known as Mira Woods), a 355-unit apartment community was recognized by the San Diego County Apartment Association (SDCAA) for its redevelopment initiatives, being named the “2006 Repositioned Property of the Year.” Tom Flitsch, Vice President of Redevelopment commented, “We are very pleased with this award as it is truly a testament to our redevelopment team and their hard work and dedication.” He continued, “The redevelopment of Mira Monte Apartments afforded Essex the chance to reposition the property within the surrounding community thereby enhancing the quality of life for residents and providing an attractive return to the Company.”

Another redevelopment success story is Palisades, a 192-unit community in Bellevue, Washington. This community is near completion of its redevelopment with estimated total costs of $6.6 million. Commenting on the redevelopment, Tom Flitsch said, “Palisades is a terrific example of Essex’s redevelopment strategy. We took an outdated property in a B+ location and substantially upgraded the exterior and the leasing facility. In addition we created a coordinated and contemporary apartment living space that includes new entry doors, cabinets, appliances, countertops, fixtures, and furnishings. Since commencing the redevelopment effort at Palisades, rental rates have increased between 35 and 55 percent.”

Extensive exterior renovation was substantially completed during the fourth quarter at Summerhill Commons, a 184-unit garden style community located in Newark, California. The redevelopment of Summerhill Commons will establish the property among the finest apartment communities in the local submarket. The $4.3 million phase I of the renovation focuses on the property exterior conditions and finishes, including siding replacement, upgraded leasing office, new amenities, and vehicular access gates. This work is expected to be substantially completed during the second quarter of 2007.
3
Liquidity and Balance Sheet
During the fourth quarter of 2006, the Company issued and sold approximately 173,100 shares of common stock for $21.0 million, net of fees and commissions. The Company used the net proceeds from the offering to pay down outstanding borrowings under the Company’s lines of credit, to fund the development pipeline and for general corporate purposes.
 
During the fourth 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 second quarter of 2011. As of December 31, 2006, the Company’s ten-year forward-starting interest rate swaps totaled $450 million with rates ranging from 4.9% to 5.9% and settlement dates from July 2007 through April 2011.

Conference Call with Management
The Company will host an earnings conference call with management on Thursday, February 8, 2007, at
9:00 a.m. PST - 12:00 p.m. EST, which will be broadcast live via the Internet at www.essexpropertytrust.com, and accessible via phone by dialing (800) 510-0219 and entering the passcode 62174650.
 
A rebroadcast of the live call will be available online for 90 days and digitally for 7 days. To access the replay online, go to www.essexpropertytrust.com and select the fourth quarter earnings link. To access the replay digitally, dial (888) 286-8010 using the passcode, 36347426. If you are unable to access the information via the Company’s Web site, please contact the Investor Relations department at investors@essexpropertytrust.com or by calling (650) 494-3700.
 
Company Profile
Essex Property Trust, Inc., located in Palo Alto, California and traded on the New York Stock Exchange (NYSE:ESS), is a fully integrated real estate investment trust (REIT) that acquires, develops, redevelops, and manages multifamily residential properties located in highly desirable, supply-constrained markets. Essex currently has ownership interests in 130 apartment communities (27,553 units), and has 908 units in various stages of development.
 
This press release and accompanying supplemental financial information will be filed electronically on Form
8-K with the Securities and Exchange Commission and can be accessed from the Company’s Web site at www.essexpropertytrust.com. If you are unable to obtain the information via the Web, please contact the Investor Relations Department at (650) 494-3700.

Funds from Operations
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.

4
 
Three Months Ended
December 31,
Twelve Months Ended
December 31,
2006
2005
2006
2005
Funds from operations
        
Net income available to common stockholders
$15,060
$4,725
$57,603
$77,763
Adjustments:
        
    Depreciation and amortization
21,602
20,033
83,034
80,126
    Gain not included in FFO (1)
(7,090)
(1,032)
(19,666)
(52,335)
    Minority interests and co-investments(2)
2,023
1,322
9,547
9,536
         Funds from operations
$31,595
$25,048
$130,518
$115,090

(1)  
Amount includes gain equivalent to accumulated depreciation on Peregrine Point condominium sales.
(2)  
Amount includes the following: (i) minority interest related to Operating Partnership units, (ii) depreciation addback for Fund II assets and minority interests and (iii) joint venture NOI not recognized for GAAP.
 
Safe Harbor Statement under the Private Securities 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, trends in apartment fundamentals, trends in occupancy and rental rates, anticipated timing and costs of the completion and stabilization of property developments and redevelopments, the Company’s projected development projects in 2007, potential sales of our properties, and future construction costs. 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 Report on Form 10-K for the year ended December 31, 2005.

###
 
5
 EX-99.2 3 ex99_2.htm 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
  
Twelve Months Ended
(Dollars in thousands, except per share amounts)
December 31,
  
December 31,
 
 
 
2006
  
2005
  
2006
  
2005
 
 
 
 
 
  
 
 
  
 
                                                                  
 
 
                                                  
Revenues:
                                            
 
Rental and other property
$
90,244
 
$
80,281
 
$
343,044
 
$
310,970
 
Management and other fees from affiliates
  
1,504
 
 
1,843
 
 
5,030
 
 
10,951
     
 
91,748
 
 
82,124
 
 
348,074
 
 
321,921
                           
Expenses:
                      
 
Property operating, excluding real estate taxes
  
23,142
   
21,750
   
88,505
   
81,241
 
Real estate taxes
  
7,632
   
6,640
   
29,278
   
26,469
 
Depreciation and amortization
  
21,022
   
19,242
   
80,147
   
76,848
 
Interest
  
17,621
   
18,072
   
72,898
   
70,784
 
Amortization of deferred financing costs
 
774
 
 
478
 
 
2,743
 
 
1,947
 
General and administrative
  
7,045
   
5,574
   
22,235
   
19,148
 
Other expenses
 
-
 
 
2,927
 
 
1,770
 
 
5,827
     
 
77,236
 
 
74,683
 
 
297,576
 
 
282,264
Earnings from operations
  
14,512
   
7,441
   
50,498
   
39,657
                           
Gain on sale of real estate
  
-
   
-
   
-
   
6,391
Interest and other income
  
1,448
   
664
   
6,176
   
8,524
Equity (loss) income co-investments
  
(319)
    
1,336
   
(1,503)
    
18,553
Minority interests
 
(4,892)
  
 
(4,525)
  
 
(19,309)
  
 
(20,936)
Income before discontinued operations and
                      
     
income tax provision
  
10,749
   
4,916
   
35,862
   
52,189
Income tax provision
  
(200)
  
 
(152)
  
 
(525)
  
 
(2,538)
Income before discontinued operations
 
10,549
 
 
4,764
 
 
35,337
 
 
49,651
                           
Income and gain from discontinued operations,
                     
 
net of minority interests
 
6,888
 
 
449
 
 
27,411
 
 
30,065
Net income
  
17,437
   
5,213
   
62,748
   
79,716
Dividends to preferred stockholders
 
(2,377)
  
 
(488)
  
 
(5,145)
  
 
(1,953)
Net income available to common stockholders
$
15,060
 
$
4,725
 
$
57,603
 
$
77,763
     
 
 
  
 
 
  
 
 
  
 
 
Net income per share - basic
$
0.64
  
$
0.21
  
$
2.50
  
$
3.38
     
 
 
  
 
 
  
 
 
  
 
 
Net income per share - diluted
$
0.63
  
$
0.20
  
$
2.45
  
$
3.32
                                                                  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
Three Months Ended
  
Twelve Months Ended
Selected Line Item Detail
December 31,
  
December 31,
(Dollars in thousands)
2006
 
2005
  
2006
 
2005
 
 
 
 
 
  
 
 
  
 
 
  
 
 
Rental and other property
                      
 
Rental
$
85,088
 
$
75,728
 
$
323,577
 
$
293,502
 
Other property
  
5,156
 
 
4,553
 
 
19,467
 
 
17,468
   
Rental and other property
$
90,244
 
$
80,281
 
$
343,044
 
$
310,970
       
 
                  
Management and other fees from affiliates
    
 
                
 
Management
$
1,118
 
$
786
 
$
3,523
 
$
3,696
 
Development and redevelopment
  
208
 
 
16
 
 
329
 
 
204
 
Promote interest from Fund I
  
178
 
 
1,041
 
 
1,178
 
 
7,051
   
Management and other fees from affiliates
$
1,504
 
$
1,843
 
$
5,030
 
$
10,951
                           
General and administrative
                      
 
General and administrative
$
9,875
 
$
7,650
 
$
32,139
 
$
26,354
 
Allocated to property operating expenses - administrative
  
(1,429)
 
 
(1,330)
 
 
(5,455)
 
 
(5,150)
 
Capitalized and incremental to real estate under development
 
(1,401)
 
 
(746)
 
 
(4,449)
 
 
(2,056)
   
Net general and administrative
$
7,045
 
$
5,574
 
$
22,235
 
$
19,148
           
 
    
 
    
 
  
Interest and other income
                      
 
Interest income
$
1,056
 
$
225
 
$
2,719
 
$
678
 
Lease income
  
392
 
 
393
 
 
1,570
 
 
1,570
 
Participating loan (Condo conversion)
  
-
 
 
-
 
 
-
 
 
6,121
 
Gain from sale of Town & Country stock
  
-
 
 
-
 
 
1,687
 
 
-
 
Miscellaneous
  
-
 
 
46
 
 
200
 
 
155
   
Interest and other income
$
1,448
 
$
664
 
$
6,176
 
$
8,524
                           
Equity (loss) income in co-investments
                      
    
Equity (loss) income in co-investments
$
(319)
 
$
304
 
$
(1,503)
 
$
558
 
Gain on sale of co-investment activities, net
  
-
 
 
1,032
 
 
-
 
 
18,116
 
Early extinguishment of debt
  
-
 
 
-
 
 
-
 
 
(121)
     
Equity (loss) income in co-investments
$
(319)
 
$
1,336
 
$
(1,503)
 
$
18,553
                           
Minority interests
                      
 
Limited partners of Essex Portfolio, L.P.
$
946
 
$
471
 
$
3,487
 
$
4,937
 
Perpetual preferred distributions
  
2,559
 
 
2,559
 
 
10,238
 
 
10,238
 
Series Z and Z-1 incentive units
  
151
 
 
123
 
 
605
 
 
424
 
Third party ownership interests
 
180
 
 
315
 
 
718
 
 
1,079
 
Down REIT limited partners' distributions
 
1,056
 
 
1,057
 
 
4,261
 
 
4,258
   
Minority interests
$
4,892
 
$
4,525
 
$
19,309
 
$
20,936
 
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
      
Twelve Months Ended
    
(Dollars in thousands, except share and per share amounts)
December 31,
      
December 31,
    
 
 
 
2006
 
2005
 
% Change
 
2006
 
2005
 
% Change
                                   
Funds from operations
                              
Net income available to common stockholders
$
15,060
 
$
4,725
      
$
57,603
 
$
77,763
    
Adjustments:
                              
 
Depreciation and amortization
  
21,602
   
20,033
        
83,034
   
80,126
    
 
Gains not included in FFO (1)
  
(7,090)
    
(1,032)
        
(19,666)
    
(52,335)
    
 
Minority interests and co-investments (2)
  
2,023
   
1,322
        
9,547
   
9,536
    
     
Funds from operations
$
31,595
 
$
25,048
      
$
130,518
 
$
115,090
    
   
FFO per share-diluted
$
1.19
  
$
0.98
  
21.5%
  
$
5.01
  
$
4.48
  
11.9%
                                   
Components of the change in FFO
                              
Non-recurring items:
                              
Fund I - promote interest
  
(178)
    
(1,041)
        
(1,178)
    
(7,051)
    
Income generated from TRS activities, net of taxes and expenses
 
(381)
              
(837)
    
(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
        
1,300
        
800
   
1,300
   
Write-off of deferred charges and prepayment penalties
        
1,627
              
1,748
   
Miscellaneous
 
    
 
        
 
(200)
  
 
      
   
Funds from operations excluding non-recurring items
  
31,036
   
26,934
       
120,165
   
107,795
   
   
FFO excluding non-recurring items per share-diluted
$
1.17
  
$
1.05
  
11.0%
  
$
4.62
  
$
4.20
  
10.0%
                                   
Changes in recurring items:
                              
Same property NOI
$
4,742
           
$
14,158
         
Non-same property NOI
  
2,837
             
7,843
         
Management fees from joint ventures
  
524
             
(48)
          
Interest expense and amortization of deferred financing costs
  
155
             
(2,910)
          
Other items, net
 
(4,156)
            
 
(6,673)
          
     
$
4,102
           
$
12,370
          
                                   
Weighted average number of shares outstanding diluted (3)
 
26,508,994
  
 
25,538,884
      
 
26,029,774
  
 
25,693,637
    
                                   

(1)
 Amount includes gain equivalent to accumulated depreciation on Peregrine Point condominium sales.
  
(2)
 Amount includes the following: (i) minority interest related to Operating Partnership units, (ii) depreciation addback for Fund II assets and minority interests,
 
 and (iii) joint venture NOI not recognized for GAAP.
(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-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 Sheets
          
(Dollars in thousands)
          
 
 
 
 
December 31, 2006
 
 
December 31, 2005
               
Real Estate:
          
 
Land and land improvements
$
560,880
 
$
541,232
 
Buildings and improvements
 
2,108,307
 
 
1,890,397
     
 
2,669,187
 
 
2,431,629
 
Less: accumulated depreciation
 
(465,015)
  
 
(389,040)
     
 
2,204,172
 
 
2,042,589
Real estate - Held for sale, net
  
43,372
   
44,805
Real estate under development
  
103,487
   
51,546
Investments
  
60,451
   
30,098
     
 
2,411,482
 
 
2,169,038
Cash and cash equivalents
 
21,459
 
 
25,947
Other assets
  
40,036
   
29,287
Deferred charges, net
 
12,863
 
 
15,018
   
Total assets
$
2,485,840
 
$
2,239,290
               
Mortgage notes payable
$
1,060,704
 
$
1,072,068
Mortgage notes payable - Held for sale
  
32,850
   
32,850
Exchangeable bonds
  
225,000
   
225,000
Lines of credit
  
93,000
   
25,000
Other liabilities
  
77,852
   
67,998
Deferred gain
  
2,193
   
2,193
   
Total liabilities
 
1,491,599
 
 
1,425,109
               
Minority interests
  
236,120
   
233,214
Series G cumulative convertible preferred stock, liquidation value
  
145,912
   
-
               
Stockholders' Equity:
          
 
Common stock
  
2
   
2
 
Series F cumulative redeemable preferred stock, liquidation value
  
25,000
   
25,000
 
Additional paid-in-capital
  
686,937
   
632,646
 
Distributions in excess of accumulated earnings
  
(97,457)
    
(77,341)
 
Accumulated other comprehensive (loss) income
 
(2,273)
  
 
660
   
Total stockholders' equity
  
612,209
   
580,967
   
Total liabilities and stockholders' equity
$
 
2,485,840
 
$
2,239,290
               

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 - December 31, 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
  
64%
  
$
907,215
  
6.4%
  
4.3
 
Tax exempt variable (1)
  
13%
    
186,339
  
4.6%
  
24.8
        
Total mortgage notes payable
  
77%
  
 
1,093,554
  
6.1%
  
7.9
           
 
          
Exchangeable bonds (2)
  
16%
  
 
225,000
  
3.6%
    
                       
Line of credit - secured (3)
  
7%
    
93,000
  
6.2%
    
       
 
  
 
 
  
 
    
   
Total debt
  
100%
  
$
1,411,554
  
5.9%
    
                       
                 
Weighted
   
 
 Scheduled principal payments (excludes lines of credit)
    
Average
    
                 
Interest Rate
   
       
2007
  
$
69,108
  
6.0%
    
       
2008
    
179,494
  
6.8%
    
       
2009
    
24,587
  
6.8%
    
       
2010
    
156,875
  
8.0%
    
       
2011
    
155,528
  
6.4%
    
       
Thereafter
  
 
732,962
  
5.1%
    
       
Total
  
$
1,318,554
  
5.9%
    
                       
Capitalized interest for the quarter and year ended December 31, 2006 was approximately $1.5 million and $3.9 million, respectively.
    
                       
(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-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 - December 31, 2006
            
(Dollars and shares in thousands, except per share amounts)
                                             
 
 
 
 
 
 
 
 
 
                 
Total debt
  
$
1,411,554
      
       
 
 
      
Common stock and potentially dilutive securities
            
    
Common stock outstanding
    
23,416
      
 
Limited partnership units (1)
    
2,495
      
 
Options-treasury method
    
265
      
Total common stock and potentially dilutive securities
  
 
26,176
shares
    
                 
Common stock price per share as of December 31, 2006
  
$
129.25
      
       
 
 
      
Market value of common stock and potentially dilutive securities
  
$
3,383,248
      
                 
Perpetual preferred units/stock
  
$
304,500
      
       
 
 
      
Total equity capitalization
  
$
3,687,748
      
       
 
 
      
Total market capitalization
  
$
5,099,302
      
       
 
 
      
Ratio of debt to total market capitalization
  
 
27.7%
      
                 
(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-7
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 December 31, 2006 and 2005
                                                      
(Dollars in thousands)
                                                                                                                                  
     
Southern California
  
Northern California
  
Seattle Metro
  
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
$
47,049
 
$
44,238
 
6.4%
  
$
14,004
 
$
12,865
 
8.9%
  
$
13,228
 
$
11,842
 
11.7%
  
$
2,631
 
$
2,440
 
7.8%
  
$
76,912
 
$
71,385
 
7.7%
 
Non-same property revenue (2)
 
4,275
 
 
2,842
     
 
7,134
 
 
4,178
     
 
1,292
 
 
1,198
     
 
631
 
 
678
     
 
13,332
 
 
8,896
   
   
Total Revenues
$
51,324
 
$
47,080
     
$
21,138
 
$
17,043
     
$
14,520
 
$
13,040
     
$
3,262
 
$
3,118
     
$
90,244
 
$
80,281
   
                                                                                   
Property operating expenses:
                                                                              
 
Same-property operating expenses
$
14,533
 
$
14,268
 
1.9%
  
$
4,866
 
$
4,569
 
6.5%
  
$
4,752
 
$
4,504
 
5.5%
  
$
1,195
 
$
1,220
 
-2.0%
  
$
25,346
 
$
24,561
 
3.2%
 
Non-same property operating expenses (2)
 
1,336
 
 
958
     
 
2,734
 
 
1,524
     
 
375
 
 
465
     
 
983
 
 
882
     
 
5,428
 
 
3,829
   
   
Total property operating expenses
$
15,869
 
$
15,226
     
$
7,600
 
$
6,093
     
$
5,127
 
$
4,969
     
$
2,178
 
$
2,102
     
$
30,773
 
$
28,390
   
                                                                                   
Net operating income:
                                                                              
 
Same-property net operating income
$
32,516
 
$
29,970
 
8.5%
  
$
9,138
 
$
8,296
 
10.1%
  
$
8,476
 
$
7,338
 
15.5%
  
$
1,436
 
$
1,220
 
17.7%
  
$
51,566
 
$
46,824
 
10.1%
 
Non-same property operating income (2)
 
2,939
 
 
1,884
     
 
4,400
 
 
2,654
     
 
917
 
 
733
     
 
(352)
  
 
(204)
      
 
7,904
 
 
5,067
   
   
Total net operating income
$
35,455
 
$
31,854
     
$
13,538
 
$
10,950
     
$
9,393
 
$
8,071
     
$
1,084
 
$
1,016
     
$
59,470
 
$
51,891
   
                     
 
 
  
 
 
      
 
 
  
 
 
      
 
 
  
 
 
                    
Same-property operating margin
 
69%
  
 
68%
      
 
65%
  
 
64%
      
 
64%
  
 
62%
      
 
55%
  
 
50%
      
 
67%
  
 
66%
    
Same-property turnover percentage
 
50%
  
 
45%
      
 
67%
  
 
56%
      
 
60%
  
 
52%
      
 
54%
  
 
60%
      
 
56%
  
 
49%
    
Same-property concessions
$
114
 
$
87
     
$
92
 
$
117
     
$
40
 
$
45
     
$
24
 
$
43
     
$
271
 
$
292
   
Average same-property concessions per turn (3)
$
82
 
$
69
     
$
165
 
$
259
     
$
61
 
$
77
     
$
151
 
$
243
     
$
97
 
$
118
   
Net operating income percentage of total
 
60%
  
 
61%
      
 
23%
  
 
21%
      
 
16%
  
 
16%
      
 
1%
  
 
2%
      
 
100%
  
 
100%
    
                     
 
 
  
 
 
      
 
 
  
 
 
      
 
 
  
 
 
                    
Loss to lease (4)
$
6,718
           
$
5,237
           
$
1,313
           
$
191
           
$
13,459
         
 
Loss to lease as a percentage
                
 
 
            
 
 
            
 
 
                          
 
of rental income
 
3.2%
            
 
5.8%
            
 
2.0%
            
 
2.3%
            
 
3.7%
          
                     
 
 
            
 
 
            
 
 
                          
Reconciliation of apartment units at end of period
                                                                
 
Same-property apartment units
 
11,078
            
 
3,315
            
 
4,452
            
 
1,177
            
 
20,022
          
 
Consolidated Apartment Units
  
12,805
    
12,784
        
5,389
    
4,621
        
4,926
    
4,956
        
1,337
    
1,177
        
24,457
    
23,538
    
 
Joint Venture
  
480
    
598
        
2,101
    
1,936
        
515
    
515
        
-
   
-
       
3,096
    
3,049
    
 
Under Development (5)
 
543
  
 
505
      
 
238
  
 
-
     
 
127
  
 
-
     
 
-
 
 
-
     
 
908
  
 
505
    
   
Total apartment units at end of period
 
13,828
  
 
13,887
      
 
7,728
  
 
6,557
      
 
5,568
  
 
5,471
      
 
1,337
  
 
1,177
      
 
28,461
  
 
27,092
    
                     
 
 
  
 
 
      
 
 
  
 
 
      
 
 
  
 
 
                    
   
Percentage of total
 
49%
  
 
51%
      
 
27%
  
 
24%
      
 
20%
  
 
20%
      
 
4%
  
 
5%
      
 
100%
  
 
100%
    
                                                                                   
Average same-property financial occupancy
 
96.3%
  
 
97.1%
      
 
94.8%
  
 
96.8%
      
 
96.0%
  
 
96.0%
        
93.9%
    
96.5%
      
 
95.9%
  
 
96.8%
    

(1)
Includes four apartment communities in Portland, OR, one community in Houston, TX, and other rental properties including commercial properties and assets held by TRS's. In addition, included in fourth quarter 2006
 
in non-same property operating expenses is $401 for storm damage repairs incurred by the Seattle and Portland regions.
(2)
Includes properties which subsequent to September 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 December 31, 2006.
                                                                    

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 December 31, 2006, December 31, 2005 and September 30, 2006
 
(Dollars in thousands)
 
 
 
 
 
 
 
                     
 
 
 
 
 
 
 
                     
 
 
 
 
                             
 
 
 
 
 
 
 
 
 
                     
 
 
   
 
 
 
 
                      
 
 
                        
 
 
 
 
 
 
 
 
 
 
 
 
 
Average Property Rental Rates
 
 
 
Property Revenue
 
 
 
Property Revenue
 
 
 
 
 
 
 
 
December 31,
 
December 31,
 
                   
 
December 31,
 
December 31,
 
                  
 
September 30,
 
Sequential
 
 
Region
 
Units
 
2006
 
2005
 
% Change
 
2006
 
2005
 
% Change
 
2006
 
% Change
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Southern California
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Ventura County
 
2,236
 
$
1,347
 
 
1,279
 
5.3%
  
$
9,096
 
$
8,614
 
5.6%
  
$
9,120
 
-0.3%
   
Los Angeles County
 
3,913
 
 
1,599
 
 
1,483
 
7.8%
 
 
19,692
 
 
18,408
 
7.0%
 
 
19,289
 
2.1%
 
Orange County
 
2,037
 
 
1,490
 
 
1,379
 
8.0%
 
 
9,175
 
 
8,652
 
6.0%
 
 
9,095
 
0.9%
  
San Diego County
 
2,616
 
 
1,039
 
 
993
 
4.6%
 
 
8,389
 
 
7,868
 
6.6%
 
 
8,120
 
3.3%
 
Riverside County
 
276
 
 
811
 
 
803
 
1.0%
 
 
697
 
 
696
 
0.1%
 
 
668
 
4.3%
 
 
Total Southern California
 
11,078
 
$
1,376
 
$
1,290
 
6.7%
 
$
47,049
 
$
44,238
 
6.4%
 
$
46,292
 
1.6%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Northern California
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
San Francisco MSA
 
175
 
$
1,596
 
 
1,473
 
8.4%
 
$
831
 
$
788
 
5.5%
 
$
838
 
-0.8%
 
Santa Clara County
 
1,870
 
 
1,437
 
 
1,285
 
11.8%
 
 
8,080
 
 
7,290
 
10.8%
 
 
7,962
 
1.5%
 
Alameda County
 
200
 
 
1,168
 
 
1,077
 
8.4%
 
 
707
 
 
655
 
7.9%
 
 
704
 
0.4%
 
Contra Costa County
 
1,070
 
 
1,417
 
 
1,297
 
9.3%
 
 
4,386
 
 
4,132
 
6.1%
 
 
4,528
 
-3.1%
 
 
Total Northern California
 
3,315
 
$
1,423
 
$
1,286
 
10.7%
 
$
14,004
 
$
12,865
 
8.9%
 
$
14,032
 
-0.2%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Seattle Metro
 
4,452
 
$
946
 
$
845
 
12.0%
 
$
13,228
 
$
11,842
 
11.7%
 
$
13,035
 
1.5%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Other real estate assets
 
1,177
 
$
725
 
$
664
 
9.2%
 
$
2,631
 
$
2,440
 
7.8%
 
$
2,603
 
1.1%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total same-property revenue
 
20,022
 
$
1,250
 
$
1,154
 
8.3%
 
$
76,912
 
$
71,385
 
7.7%
 
$
75,962
 
1.3%

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 Pipeline - December 31, 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
 
$ 28.2
 
$ 42.9
 
$ 71.1
 
Jan-06
 
Feb-08
 
Feb-08
 
Oct-08
100 Grand
 
Oakland, CA
 
238
 
12.2
 
84.0
 
96.2
 
Dec-06
 
Dec-08
 
Dec-08
 
May-09
 
 
 
 
 
 
 
          
 
 
 
 
 
 
 
 
 Consolidated - Development Projects
 
513
 
40.4
 
126.9
 
167.3
 
 
 
 
 
 
 
 
 
 
 
 
 
              
 
 
 
 
 
 
 
 
Development Projects - Fund II
 
              
 
 
 
 
 
 
 
 
Project Name
  
Location
  
 
 
 
 
 
 
 
 
      
 
      
Lake Union
 
Seattle, WA
 
127
 
10.9
 
24.5
 
35.4
 
Aug-06
 
Jan-08
 
Jan-08
 
Jun-08
Studio City
 
Studio City, CA
 
149
 
22.3
 
31.0
 
53.3
 
Apr-07
 
Jan-09
 
Jan-09
 
Apr-09
Chatsworth
 
Chatsworth, CA
 
119
 
9.3
 
30.1
 
39.4
 
Jun-07
 
May-09
 
May-09
 
Sep-09
 Fund II - Development Projects
 
395
 
42.5
 
85.6
 
128.1
   
 
 
 
  
 
 
 Total - Development Projects
 
908
 
82.9
 
212.5
 
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 (1)
 
-
 
-
 
-
 
-
 
      
 
      
 
  
 
 
 
1,845
 
42.2
 
514.8
 
557.0
 
 
 
 
 
 
 
 
 
 
 
 
 
              
 
 
 
 
 
 
 
 
Other Projects (TRS)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Project Name
  
Location
 
 
 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
Tracy (2)
 
Tracy, CA
 
30
 
-
 
-
 
-
 
Aug-05
 
Dec-06
 
Jan-07
 
Mar-07
 
Peregrine Pointe (3)
 
Issaquah, WA
 
21
 
-
 
-
 
-
 
Jan-06
 
Feb-07
 
Jul-06
 
Apr-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
 
 
 
 
 
120
 
20.2
 
21.8
 
42.0
 
 
 
 
 
 
 
 
Development Joint Venture (4)
 
-
 
0.7
 
-
 
0.7
 
 
 
 
 
 
 
 
                                 
Grand Total - Development Pipeline
 
2,873
 
146.0
 
749.1
 
895.1
 
 
 
 
 
 
 
 
 
 
 
 
 
              
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(1)  There are two additional predevelopment projects, one is located in Northern California and one in Southern California.
 
 
(2)  Lease-up for this property will commence in the first quarter of 2007, and will be reclassified as an operating community in the Other real estate assets region.
 		  
(3)  The property is in the process of being converted and sold as condominium units. Forty-five of sixty-six units have been sold as of December 31, 2006.
 
(4)  The Company has entered into a joint venture development project with a third party located in the Seattle region, and is presently working to obtain entitlements.
                               
 
      

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 Pipeline - December 31, 2006
                                
(Dollars in thousands)
                                
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                       
          
                        
         
Total
 
Estimated
  
Estimated
          
Q4 2006
 
Units completed
         
Incurred
  
Remaining
  
Total
  
Redevelopment
  
NOI
  
Rehab
  
and available
 
Region/Project Name
  
Units
   
To Date
   
Cost
   
Cost
   
Start Date
   
Q4 2006
  
Vacancy Loss
   
for rent
                                   
 
Approved - Redevelopment Projects
                               
 
Pathways, Long Beach, CA (1)
  
296
 
$ 532
 
$ 10,173
 
$ 10,705
 
Jun-06
            
 
Woodland/Foothill Commons, Bellevue, WA (1)
  
596
 
227
 
3,145
 
3,372
 
Apr-06
            
     
892
 
759
 
13,318
 
14,077
               
                 
 
                
 
Active - Redevelopment Projects
                
 
              
 
Southern California
                  
 
  
 
        
 
Kings Road, Los Angeles, CA (2)
  
196
 
4,400
 
1,783
 
6,183
 
Jan-04
  
$ 655
 
$ 6
 
107
 
Mira Monte, Mira Mesa, CA
 
355
 
5,132
 
881
 
6,013
 
Sep-04
  
854
 
54
 
311
 
Avondale at Warner Center, Woodland Hills, CA
  
446
 
9,543
 
2,407
 
11,950
 
Oct-04
  
1,317
 
42
 
134
                                 
 
 
Northern California
                              
 
 
Montclaire - Phase I - III, Sunnyvale, CA
  
390
 
2,667
 
12,423
 
15,090
 
Aug-06
  
953
 
21
 
23
 
Treetops, Fremont, CA
  
172
 
746
 
7,520
 
8,266
 
Sep-06
  
382
 
-
 
-
 
Summerhill Commons, Newark, CA
  
184
 
2,809
 
1,509
 
4,318
 
Oct-06
  
430
 
-
 
-
 
Wimbledon Woods, Hayward, CA
  
560
 
791
 
8,559
 
9,350
 
Oct-06
  
1,061
 
-
 
-
                                   
 
Seattle Metro
                                
 
Palisades - Phase I and II, Bellevue, WA
  
192
 
5,703
 
880
 
6,583
 
Sep-04
  
308
 
90
 
154
 
Sammamish View, Bellevue, WA
  
153
 
2,149
 
1,193
 
3,342
 
Dec-05
  
356
 
75
 
77
 
Bridle Trails, Kirkland, WA (3)
  
108
 
4,367
 
704
 
5,071
 
May-05
  
254
 
2
 
108
     
2,756
 
38,307
 
37,859
 
76,166
             
 
                                   
 
Total
 
3,648
 
$ 39,066
 
$ 51,177
 
$ 90,243
     
$ 6,570
 
$ 290
 
914
                                 
(1) The community was approved as a redevelopment project during 2006, but operations are not destabilized and therefore the community is still in same-property operations.
 
(2) This community was restabilized at the end of the first quarter of 2005, and has been included in same-property operations since the second quarter of 2006. This community will be included in same-property operations for the full year ended starting 2007.
 
(3) This community was restabilized at the end of the second quarter of 2006, and will be included in same-property operations starting the third quarter of 2007.
 
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.
 
 
 
 
 
                         
 
                         
 
 
 
 
                  
 
 
                   
 
             
 
                  
                  
                     
                    
 
For the three
 
For the twelve
Investments - December 31, 2006
 
Essex
 
 
Total Fund
 
 
 
Debt
 
months ended
 
months ended
(Dollars in thousands)
 
Book
 
 
Estimated
 
 
 
 
 
Interest
Maturity
 
12/31/2006
 
12/31/2006
 
 
 
 
Value
 
 
Value
 
Units
 
Amount
Type
Rate
Date
 
NOI
 
NOI
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Joint Ventures
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Essex Apartment Value Fund II, L.P. (Fund II)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Alderwood Park, Newark, CA
 
 
 
 
 
 
96
 
7,161
Fixed
5.56%
Jun-2015
 
 
 
 
 
 
Carlmont Woods, Belmont, CA
 
 
 
 
 
 
195
 
13,128
Fixed
4.89%
Dec-2013
 
 
 
 
 
 
Davey Glen, Belmont, CA
 
 
 
 
 
 
69
 
6,654
Fixed
6.13%
Aug-2016
 
 
 
 
 
 
Echo Ridge, Snoqualmie, WA
 
 
 
 
 
 
120
 
13,458
Fixed
5.01%
Sep-2014
 
 
 
 
 
 
Enclave, San Jose, CA
 
 
 
 
 
 
637
 
21,929
Fixed
7.26%
Jan-2018
 
 
 
 
 
 
Enclave, San Jose, CA
 
 
 
 
 
 
-
 
60,000
Variable
4.49%
Dec-2029
 
 
 
 
 
 
Harbor Cove, Foster City, CA
 
 
 
 
 
 
400
 
35,399
Fixed
4.89%
Dec-2013
 
 
 
 
 
 
Morning Run, Monroe, WA
 
 
 
 
 
 
222
 
13,909
Fixed
5.10%
Oct-2014
 
 
 
 
 
 
Parcwood, Corona, CA
 
 
 
 
 
 
312
 
25,774
Fixed
4.89%
Dec-2013
 
 
 
 
 
 
Regency Towers, Oakland, CA
 
 
 
 
 
 
178
 
11,223
Fixed
5.16%
Mar-2014
 
 
 
 
 
 
Renaissance, Los Angeles, CA
 
 
 
 
 
 
168
 
23,446
Fixed
6.51%
May-2011
 
 
 
 
 
 
Tower @ 801, Seattle, WA
 
 
 
 
 
 
173
 
19,616
Fixed
4.91%
Aug-2014
 
 
 
 
 
 
Total
 
39,386
 
 
434,559
 
2,570
 
251,697
 
 
 
 
5,476
 
19,393
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Fund II - Development Pipeline (1)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Lake Union, Seattle, WA
 
 
 
 
 
 
127
 
 
 
 
 
 
 
 
 
 
 
Studio City, Studio City, CA
 
 
 
 
 
 
149
 
 
 
 
 
 
 
 
 
 
 
Chatsworth, Chatsworth, CA
 
 
 
 
 
 
119
 
 
 
 
 
 
 
 
 
 
 
Total
 
5,492
 
 
42,472
 
395
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Line of credit
 
 
 
 
 
 
 
 
54,450
Var.
LIBOR+0.875%
Jun-2007
 
 
 
 
 
 
 
 
44,878
 
 
477,031
 
2,965
 
306,147
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Capitalized costs
 
720
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
45,598
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Waterstone at Fremont (formerly
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
known as Mountain Vista) (2)
 
6,806
 
 
 
 
 
 
 
 
 
 
 
1,116
 
4,529
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Other (3)
 
8,047
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
$
60,451
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(1)  See S-9 for more detail about the Fund II Development Pipeline.
 
 
 
(2)  Included in FFO for the 4th quarter is $196 for the Company's preferred interest in this property, and the approximate fair value of this investment is $14 million.
 
 
(3)  Other investments include two development joint ventures in preliminary stages totaling $7,547, one is located in Northern California and one is located Southern California, and one investment for $500 with a real estate technology company.
 
 
 
 
 
 
 

See Company's 10-K and 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 - December 31, 2006
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(Dollars in thousands)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
The Company enters into co-investment transactions with third party developers, owners and investors of apartment communities. 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 December 31, 2006  
 December 31, 2006
 
 
Investment in
 
Related
 
Minority
   
 
Down-REIT
   
 
    
Operating
      
 
 
 
Real Estate
   
Debt
    
Interest
 
 
Units (1)
 
Revenue
 
Expenses
 
NOI
 
 
 
 
                
 
 
 
 
 
 
 
 
 
 
 
Down-REITs:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Anchor Village
 
$ 11,057
 
$ 10,750
 
$ 2,589
   
117,473
 
$ 666
 
$ 305
 
$ 361
Barkley Apartments
 
9,537
 
4,985
 
2,369
   
80,302
 
603
 
206
 
397
Brookside Oaks
 
21,063
 
14,342
 
9,190
   
226,712
 
632
 
203
 
429
Capri at Sunny Hills
 
17,098
 
11,701
 
4,504
   
185,333
 
601
 
135
 
466
Brentwood Apartments
 
13,650
 
9,498
 
3,951
   
90,591
 
595
 
176
 
419
Hidden Valley (Parker Ranch)
 
45,391
 
33,590
 
6,089
   
62,647
 
1,349
 
346
 
1,003
Highridge Apartments
 
20,780
 
18,678
 
6,653
   
319,407
 
1,351
 
382
 
969
Montejo Apartments
 
9,143
 
5,900
 
1,596
   
38,038
 
439
 
135
 
304
Treehouse Apartments
 
12,203
 
7,943
 
3,299
   
75,700
 
601
 
196
 
405
Valley Park Apartments
 
16,364
 
10,063
 
1,461
   
60,892
 
703
 
161
 
542
Villa Angelina Apartments
 
21,366
 
13,607
 
3,205
   
62,339
 
953
 
241
 
712
 
 
                          
 
 
 
197,652
 
141,057
 
44,906
   
1,319,434
 
8,493
 
2,486
 
6,007
 
 
                          
 
Other Co-investments transactions:
                          
 
Derian Office Building
 
16,981
 
-
 
-
   
n/a
 
481
 
101
 
380
City Heights
 
31,114
 
32,850
 
-
   
n/a (2)
  
2,245
 
779
 
1,466
The Bluffs
 
8,897
 
12,360
 
(125)
    
n/a (3)
  
743
 
232
 
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) 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 in 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 $10 million as of December 31, 2006 will be recorded as income for GAAP and FFO purposes when paid to Essex. This property is in contract to be sold during the first quarter of 2007.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(3) Essex acquired the minority interest in this property during the first quarter of 2007.

See Company's 10-K and 10-Q for additional disclosures
S-12

 
 
  
 
  
 
  
 
  
 
  
 
  
 
  
 
  
 
  
Discontinued Operations and Selected Financial Data - December 31, 2006
  
 
  
 
  
(Dollars in thousands)
  
 
  
 
  
 
  
 
  
 
  
 
  
 
  
 
  
 
  
 
  
 
  
 
  
 
  
 
  
Income from Discontinued Operations
  
 
  
 
  
 
  
 
  
 
  
For the year ended December 31, 2006, the Company sold the Vista Capri East, Casa Tierra, Vista Pointe, and Emerald Palms apartment communities, as well as the Diamond Valley Recreational RV park, and condominium units at Peregrine Point. The City Heights apartment community is held for sale as of December 31, 2006. For the year ended December 31, 2005, the Company sold the Eastridge apartment community, the Riviera RV park, a manufactured home park in Las Vegas, and two office buildings in San Diego.
 
 
  
 
  
 
  
 
  
 
  
 
  
Three Months Ended
  
Twelve Months Ended
  
 
  
December 31,
  
December 31,
  
 
  
2006
  
2005
  
2006
  
2005
  
Rental revenues
  
$
2,473
  
$
3,151
 
$
11,261
 
$
13,531
 
Interest and other income
    
20
   
25
   
41
   
1,231
 
     Revenues
    
2,493
   
3,176
   
11,302
   
14,762
 
 
                          
Property operating expenses
    
(911
)
  
(1,189
)
  
(4,223
)
  
(4,927
)
Interest Expense
    
(579
)
  
(676
)
  
(2,314
)
  
(2,830
)
Depreciation and amortization
    
(580
)
  
(793
)
  
(2,889
)
  
(3,301
)
Minority interests
    
(215
)
  
(188
)
  
(850
)
  
(594
)
     Expenses
    
(2,285
)
  
(2,846
)
  
(10,276
)
  
(11,652
)
 
    
 
    
 
    
 
    
 
  
Gain on sale of real estate
    
7,471
   
-
   
20,505
   
29,219
 
Equity income co-investments
    
-
   
119
   
238
   
477
 
Promote interest and fees
    
-
   
-
   
8,221
   
-
 
Minority interests
    
(791
)
  
-
   
(2,579
)
  
(2,741
)
     Net gain on sale of real estate
    
6,680
   
119
   
26,385
   
26,955
 
Income from discontinued operations
  
$
6,888
  
$
449
 
$
27,411
 
$
30,065
 
 
                          
 
                          
Common Stock Equivalents
                          
 
                          
 
 
 
Q4 2006 
    
YTD 2006
          
 
  
 
    
Weighted Avg. 
    
Weighted Avg.
   
 
        
Common Shares
    
23,356,206
   
23,081,682
   
 
        
Stock Options
    
251,456
   
264,967
   
 
        
Exchangelabe Bonds
    
400,732
   
204,393
   
 
        
      Weighted Avg. Shares Diluted - EPS
    
24,008,394
   
23,551,042
   
 
        
Vested Series Z Incentive Units
    
184,482
   
184,141
   
 
        
Operating Limited Partnership Units
    
2,316,118
   
2,294,591
   
 
        
      Weighted Avg. Shares Diluted - FFO
    
26,508,994
   
26,029,774
             

See Company's 10-K and 10-Q for additional disclosures
S-13

 
ESSEX PROPERTY TRUST, INC.
    
 
Real Estate Information as of December 31, 2006
                
                            
Square
   
Year
Year
Age of
 
 
Property Name
Address
City
State
Units
Footage
 
Acquired
Built
Property
 
                                             
 
APARTMENT COMMUNITIES
 
  
                       
   
SAN FRANCISCO BAY AREA
                  
 
Santa Clara County
                    
1
Pointe at Cupertino, The (Westwood)
19920 Olivewood Street
Cupertino
CA
116
135,200
  
1998
1963
44
  
1
Carlyle, The
2909 Nieman Boulevard
San Jose
CA
132
129,200
  
2000
2000
7
  
1
Enclave, The
4355 Renaissance Drive
San Jose
CA
637
525,463
  
2005
1998
9
  
1
Esplanade
350 East Taylor St.
San Jose
CA
278
279,000
  
2004
2002
5
  
1
Waterford, The
1700 N. First Street
San Jose
CA
238
219,600
  
2000
2000
7
  
1
Le Parc (Plumtree)
440 N. Winchester Avenue
Santa Clara
CA
140
113,200
  
1994
1975
32
  
1
Marina Cove
3480 Granada Avenue
Santa Clara
CA
292
250,200
  
1994
1974
33
  
1
Bristol Commons
732 E. Evelyn Avenue
Sunnyvale
CA
188
142,600
  
1995
1989
18
  
1
Brookside Oaks
1651 Belleville Way
Sunnyvale
CA
170
119,900
  
2000
1973
34
  
1
Montclaire (Oak Pointe)
450 N. Mathilda Avenue
Sunnyvale
CA
390
294,100
  
1988
1973
34
  
1
Summerhill Park
972 Corte Madera Avenue
Sunnyvale
CA
100
78,500
  
1988
1988
19
  
1
Windsor Ridge
825 E. Evelyn Avenue
Sunnyvale
CA
216
161,800
  
1989
1989
18
  
       
10%
2,897
2,448,763
          
 
Alameda County
                    
1
Stevenson Place (The Apple)
4141 Stevenson Blvd.
Fremont
CA
200
146,200
  
1983
1971
36
  
1
Waterstone at Fremont (Mountain Vista )
39600 Fremont Blvd
Fremont
CA
526
433,100
  
2000
1975
32
  
1
Treetops
40001 Fremont Blvd.
Fremont
CA
172
131,200
  
1996
1978
29
  
1
Wimbeldon Woods
25200 Carlos Bee Blvd.
Hayward
CA
560
462,400
  
1998
1975
32
  
1
Regency Towers
1130 Third Ave.
Oakland
CA
178
140,900
  
2005
1975
32
  
 
100 Grand
100 Grand Avenue
Oakland
CA
238
205,026
 
 
 
    
1
Summerhill Commons
36826 Cherry Street
Newark
CA
184
139,000
  
1987
1987
20
  
1
Alderwood Park Apartments
37057 Magnolia Street
Newark
CA
96
74,624
  
2006
1987
20
  
       
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
4
120 units 2005
1
Bel Air (The Shores)
2000 Shoreline Drive
San Ramon
CA
462
391,000
  
1995
1988
19
114 units 2000
1
Foothill Gardens
1110 Harness Drive
San Ramon
CA
132
155,100
  
1997
1985
22
  
1
Twin Creeks
2711-2731 Morgan Drive
San Ramon
CA
44
51,700
  
1997
1985
22
  
       
4%
1,070
1,005,400
          
 
San Mateo County
                    
1
Carlmont Woods
2515 Carlmont Drive
Belmont
CA
195
107,200
  
2004
1971
36
  
1
Harbor Cove
900 E. Hillsdale Blvd.
Foster City
CA
400
306,600
  
2004
1971
36
  
1
Davey Glen
200 Davey Glen Road
Belmont
CA
69
65,974
  
2006
1962
45
  
1
Hillsdale Garden
3421 Edison Avenue
San Mateo
CA
697
611,505
  
2006
1948
59
  
1
Belmont Terrace
1606 Continetals Way
Belmont
CA
71
72,951
  
2006
1974
33
  
       
5%
1,432
1,164,230
          
                       
 
San Francisco and Marin Counties
                                  
1
Mt. Sutro Terrace Apartments
480 Warren Drive
San Francisco
CA
99
64,000
  
1999
1973
34
  
1
Vista Belvedere
15 Red Hill Circle
Tiburon
CA
76
78,300
  
2004
1963
44
  
       
1%
175
142,300
          
                    
 
 
  
30
Total San Francisco Bay Area
    
27%
7,490
6,288,117
   
1980
27
Average Age
                                    
 
SOUTHERN CALIFORNIA
                                        
 
Los Angeles County
                    
1
Hampton Court (Columbus)
1136 N. Columbus Avenue
Glendale
CA
83
71,500
  
1999
1974
33
  
1
Hampton Place (Loraine)
245 W. Loraine Street
Glendale
CA
132
141,500
  
1999
1970
37
  
1
Marbrisa
1809 Termino Ave.
Long Beach
CA
202
122,800
  
2002
1987
20
  
1
Pathways
5945 E. Pacific Coast Hwy.
Long Beach
CA
296
197,700
  
1991
1975
32
  
1
Bunker Hill
222 and 234 S. Figueroa St.
Los Angeles
CA
456
346,600
  
1998
1968
39
  
1
City Heights
209 S. Westmoreland
Los Angeles
CA
687
424,100
  
2000
1968
39
  
1
Cochran Apartments
612 South Cochran
Los Angeles
CA
58
51,400
  
1998
1989
18
  
1
Kings Road
733 North Kings Road
Los Angeles
CA
196
132,100
  
1997
1979
28
  
1
Marbella
600 South Detroit Street
Los Angeles
CA
60
50,108
  
2005
1991
16
  
 
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
19
  
1
Windsor Court
401 S. Detroit Street
Los Angeles
CA
58
46,600
  
1997
1988
19
  
1
Renaissance
630 South Masselin Avenue
Los Angeles
CA
168
154,268
  
2006
1990
17
  
1
Marina City Club
4333 Admiralty Way
Marina Del Rey
CA
101
127,200
  
2004
1971
36
  
1
Mirabella (Marina View)
13701 Marina Point Drive
Marina Del Rey
CA
188
176,800
  
2000
2000
7
  
1
Hillcrest Park (Mirabella)
1800 West Hillcrest Drive
Newbury Park
CA
608
521,900
  
1998
1973
34
  
1
Monterra del Mar (Windsor Terrace)
280 E. Del Mar Boulevard
Pasadena
CA
123
74,400
  
1997
1972
35
  
1
Monterra del Rey (Glenbrook)
350 Madison
Pasadena
CA
84
73,100
  
1999
1972
35
  
1
Monterra del Sol (Euclid)
280 South Euclid
Pasadena
CA
85
69,200
  
1999
1972
35
  
1
Fountain Park
13141 Fountain Park Drive
Playa Vista
CA
705
608,900
  
2004
2002
5
  
1
Highridge
28125 Peacock Ridge Drive
Rancho Palos Verde
CA
255
290,200
  
1997
1972
35
  
 
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
43
  
1
Avondale at Warner Center
22222 Victory Blvd.
Woodland Hills
CA
446
331,000
  
1999
1970
37
  
       
19%
5,214
4,206,076
          
 
Ventura County
                    
1
Camarillo Oaks
921 Paseo Camarillo
Camarillo
CA
564
459,000
  
1996
1985
22
  
1
Camino Ruiz Square
105 Camino Ruiz
Camarillo
CA
160
105,448
  
2006
1990
17
  
1
Mountain View
649 E. Las Posas Road
Camarillo
CA
106
83,900
  
2004
1980
27
  
 
Chatsworth
Topanga Blvd
Lassen
CA
119
125,400
 
 
 
    
1
Mariner's Place
711 South B Street
Oxnard
CA
105
77,200
  
2000
1987
20
  
1
Tierra Vista
Rice and Gonzales
Oxnard
CA
404
387,100
  
2001
2001
6
  
1
Monterey Villas (Village Apartments)
1040 Kelp Lane
Oxnard
CA
122
122,100
  
1997
1974
33
  
1
Meadowood
1733 Cochran Street
Simi Valley
CA
320
264,500
  
1996
1986
21
  
1
Hidden Valley (Parker Ranch)
5065 Hidden Park Court
Simi Valley
CA
324
310,900
  
2004
2004
3
  
1
Lofts at Pinehurst,The (Villa Scandia)
1021 Scandia Avenue
Ventura
CA
118
71,100
  
1997
1971
36
  
1
Pinehurst
3980 Telegraph Road
Ventura
CA
28
21,200
  
2004
1973
34
  
1
Woodside Village
675 Providence Ave.
Ventura
CA
145
136,500
  
2004
1987
20
  
       
9%
2,396
2,038,948
          
 
Santa Barbara County
                    
1
Chimney Sweep
775 Camino Del Sur Drive
Goleta
CA
91
    
2006
1967
40
  
1
CBC
6721 El Colegio Drive
Goleta
CA
148
    
2006
1962
45
  
       
1%
239
179,908
          

 
1

 
SOUTHERN CALIFORNIA (cont'd)
                  
 
Orange County
                                                                                     
1
Barkley Apartments
2400 E. Lincoln Ave.
Anahiem
CA
161
139,800
  
2000
1984
23
  
1
Valley Park Apartments
17300 Euclid Ave.
Fountain Valley
CA
160
169,700
  
2001
1969
38
  
1
Capri at Sunny Hills
2341 Daphne Place
Fullerton
CA
100
128,100
  
2001
1961
46
  
1
Wilshire Promenade
141 West Wilshire Avenue
Fullerton
CA
149
128,000
(1)
1997
1992
15
  
1
Montejo Apartments
12911 Dale St.
Garden Grove
CA
124
103,200
  
2001
1974
33
  
1
Huntington Breakers
21270 Beach Boulevard
Huntington Beach
CA
342
241,700
  
1997
1984
23
  
1
Hillsborough Park
1501 South Beach Boulevard
La Habra
CA
235
215,500
  
1999
1999
8
  
1
Trabuco Villas
25362 Mosswood Way
Lake Forest
CA
132
131,000
  
1997
1985
22
  
1
Fairways Apartments
2 Pine Valley Lane
Newport Beach
CA
74
107,100
  
1999
1972
35
  
1
Villa Angelina
201 E. Chapman Ave.
Placentia
CA
256
217,600
  
2001
1970
37
  
1
Brentwood Apartment Homes (Hearthstone)
2301 E. Santa Clara Ave.
Santa Ana
CA
140
154,800
  
2001
1970
37
  
1
Treehouse Apartments
2601 N. Grand Ave.
Santa Ana
CA
164
135,700
  
2001
1970
37
  
       
8%
2,037
1,872,200
          
 
San Diego County
                    
1
Alpine Country
2660 Alpine Blvd.
Alpine
CA
108
81,900
  
2002
1986
21
  
1
Alpine Village
2055 Arnold Way
Alpine
CA
306
254,400
  
2002
1971
36
  
1
Bonita Cedars
5155 Cedarwood Rd.
Bonita
CA
120
120,800
  
2002
1983
24
  
1
Cambridge
660 F. St.
Chula Vista
CA
40
22,100
  
2002
1965
42
  
1
Woodlawn Colonial
245-255 Woodlawn Ave.
Chula Vista
CA
159
104,500
  
2002
1974
33
  
1
Mesa Village
5265 Clairemont Mesa Blvd.
Clairemont
CA
133
43,600
  
2002
1963
44
  
1
Coral Gardens
425 East Bradley
El Cajon
CA
200
182,000
  
2002
1976
31
  
1
Tierra del Sol/Norte
989 Peach Ave.
El Cajon
CA
156
117,000
  
2002
1969
38
  
1
Grand Regacy
2050 E. Grand Ave.
Escondido
CA
60
42,400
  
2002
1967
40
  
1
Mira Monte (Mira Woods Villa)
10360 Maya Linda Rd.
Mira Mesa
CA
355
262,600
  
2002
1982
25
  
1
Country Villas
283 Douglas Drive
Oceanside
CA
180
179,700
  
2002
1976
31
  
1
Mission Hills
218 Rancho Del Oro
Oceanside
CA
282
244,000
  
2005
1984
23
  
1
Bluffs II, The
6466 Friars Road
San Diego
CA
224
126,700
  
1997
1974
33
  
1
Summit Park
8563 Lake Murray Blvd.
San Diego
CA
300
229,400
  
2002
1972
35
  
1
Vista Capri - North
3277 Berger Ave.
San Diego
CA
106
51,800
  
2002
1975
32
  
1
Carlton Heights
9705 Carlton Hills Blvd.
Santee
CA
70
48,400
  
2002
1979
28
  
1
Shadow Point
9830 Dale Ave.
Spring Valley
CA
172
131,200
  
2002
1983
24
  
       
11%
2,971
2,242,500
          
 
Riverside County
                    
1
Parcwood
1700 Via Pacifica
Corona
CA
312
270,000
  
2004
1989
18
  
1
Devonshire Apartments
2770 West Devonshire Ave.
Hemet
CA
276
207,200
  
2002
1988
19
  
       
2%
588
477,200
          
                 
 
 
  
66
Total Southern California
  
49%
13,445
11,016,832
    
1979
28
Average Age
                       
 
SEATTLE METROPOLITAN AREA
                  
1
Cedar Terrace
3205 115th Ave. NE
Bellevue
WA
180
174,200
  
2005
1984
23
  
1
Emerald Ridge
3010 118th Avenue SE
Bellevue
WA
180
144,000
  
1994
1987
20
  
1
Foothill Commons
13800 NE 9th Place
Bellevue
WA
360
288,300
  
1990
1978
29
  
1
Palisades, The
13808 NE 12th
Bellevue
WA
192
159,700
  
1990
1977
30
  
1
Sammamish View
16160 SE Eastgate Way
Bellevue
WA
153
133,500
  
1994
1986
21
  
1
Woodland Commons
13700 NE 10th Place
Bellevue
WA
236
172,300
  
1990
1978
29
  
1
Canyon Pointe
1630 228th St. SE
Bothell
WA
250
210,400
  
2003
1990
17
  
1
Inglenook Court
14220 Juanita Drive, NE
Bothell
WA
224
183,600
  
1994
1985
22
  
1
Salmon Run at Perry Creek
2109 228th Street SE
Bothell
WA
132
117,100
  
2000
2000
7
  
1
Stonehedge Village
14690 143rd Blvd., NE
Bothell
WA
196
214,800
  
1997
1986
21
  
1
Park Hill at Issaquah
22516 SE 56th Street
Issaquah
WA
245
277,700
  
1999
1999
8
  
1
Peregrine Point
21209 SE 42nd Street
Issaquah
WA
21
85,900
  
2003
2003
4
Sold 45 condos
1
Wandering Creek
12910 SE 240th
Kent
WA
156
124,300
  
1995
1986
21
  
1
Bridle Trails
6600 130th Avenue, NE
Kirkland
WA
108
73,400
  
1997
1986
21
16 units 2006
1
Evergreen Heights
12233 NE 131st Way
Kirkland
WA
200
188,300
  
1997
1990
17
  
1
Morning Run
18463 Blueberry Lane
Monroe
WA
222
221,786
  
2005
1991
16
  
1
Laurels at Mill Creek
1110 164th Street SE
Mill Creek
WA
164
134,300
  
1996
1981
26
  
1
Anchor Village
9507 49th Avenue West
Mukilteo
WA
301
245,900
  
1997
1981
26
  
1
Castle Creek
7000 132nd Place, SE
Newcastle
WA
216
191,900
  
1998
1998
9
  
1
Brighton Ridge
2307 NE 4th Street
Renton
WA
264
201,300
  
1996
1986
21
  
1
Fairwood Pond
14700 SE Petrovitsky Rd.
Renton
WA
194
189,200
  
2004
1997
10
  
1
Forest View
650 Duvall Ave. NE
Renton
WA
192
182,500
  
2003
1998
9
  
1
Fountain Court
2400 4th Street
Seattle
WA
320
207,000
  
2000
2000
7
  
1
Linden Square
13530 Linden Avenue North
Seattle
WA
183
142,200
  
2000
1994
13
  
 
Lake Union
2833 - 2851 Eastlake Avenue
Seattle
WA
127
-
 
 
 
    
1
Maple Leaf
7415 5th Avenue, NE
Seattle
WA
48
35,500
  
1997
1986
21
  
1
Spring Lake
12528 35th Avenue, NE
Seattle
WA
69
42,300
  
1997
1986
21
  
1
Wharfside Pointe
3811 14th Avenue West
Seattle
WA
142
119,200
(2)
1994
1990
17
  
1
Tower @ 801
801 Pine Street
Seattle
WA
173
118,500
  
2005
1970
37
  
1
Echo Ridge
34907 SE Kinsey Street
Snoqualmie
WA
120
124,359
  
2005
2000
7
  
29
Total Seattle Metropolitan Area
  
20%
5,441
4,703,445
    
1989
18
Average Age
                       
 
OTHER REAL ESTATE ASSETS
                  
1
St. Cloud Apartments
6525 Hilcroft
Houston
TX
302
306,800
  
2002
1968
39
  
1
Jackson School Village
300 NE Autumn Rose Way
Hillsboro
OR
200
196,800
  
1996
1996
11
  
1
Landmark Apartments
3120 NW John Olsen Ave.
Hillsboro
OR
285
282,900
  
1996
1990
17
  
1
Meadows @ Cascade Park
314 SE 19th Street
Vancouver
WA
198
199,300
  
1997
1989
18
                   
1
Village @ Cascade Park
501 SE 123rd Avenue
Vancouver
WA
192
178,100
  
1997
1989
18
  
5
      
4%
1,177
306,800
    
1986
21
Average Age
                                                
 
130
Apartment Communities
  
100%
27,553
22,315,194
          
 
 
Apartment Communities Under Construction
 
908
 
          
                       
 
Avg. square footage
810
                  
 
Avg. units per property
212
                  
 
Avg. age of property
26
                  
                       
 
(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
          
 
2

 
12 Month Permit Period: Trailing 12 Months September 2007
                                          
 
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
3,688
0.5%
  
240,000
572
0.2%
  
4,260
0.4%
New York PMSA
$461,000
50%
760,000
1,933
0.3%
  
2,920,000
18,470
0.6%
  
20,403
0.6%
Boston
$431,000
72%
1,530,000
6,329
0.4%
  
670,800
6,633
1.0%
  
12,962
0.6%
Philadelphia
$231,000
108%
1,532,000
11,269
0.7%
  
515,100
3,614
0.7%
  
14,883
0.7%
Baltimore
$282,000
100%
797,000
6,331
0.8%
  
268,000
1,788
0.7%
  
8,119
0.8%
Minneapolis
$233,000
121%
818,000
11,966
1.5%
  
351,800
3,378
1.0%
  
15,344
1.3%
Chicago
$275,001
196%
1,700,000
28,619
1.7%
  
1,404,900
15,192
1.1%
  
43,811
1.4%
Wash. D.C. PMSA
$441,001
180%
1,299,000
18,457
1.4%
  
644,300
9,205
1.4%
  
27,662
1.4%
Denver
$254,000
108%
582,000
12,903
2.2%
  
274,900
4,561
1.7%
  
17,464
2.0%
Miami/Ft. Lauderdale
$386,000
53%
717,000
14,750
2.1%
  
876,000
18,672
2.1%
  
33,422
2.1%
Dallas-Ft. Worth
$147,000
166%
1,381,000
43,751
3.2%
  
650,000
11,984
1.8%
  
55,735
2.7%
Phoenix
$268,000
83%
970,000
35,740
3.7%
  
360,500
6,394
1.8%
  
42,134
3.2%
Atlanta
$171,000
158%
1,122,000
53,944
4.8%
  
467,800
13,591
2.9%
  
67,535
4.2%
Houston
$145,001
263%
1,027,000
55,105
5.4%
  
547,700
15,289
2.8%
  
70,394
4.5%
Orlando
$261,000
85%
482,000
23,498
4.9%
  
201,500
6,620
3.3%
  
30,118
4.4%
Las Vegas
$313,000
68%
440,000
21,590
4.9%
  
215,700
11,400
5.3%
  
32,990
5.0%
Austin
$167,002
355%
326,000
17,753
5.4%
  
169,900
8,064
4.7%
  
25,817
5.2%
Totals
$290,589
133%
16,223,000
367,626
2.3%
  
10,778,900
155,427
1.4%
  
523,053
1.9%
                         
Seattle
$342,000
81%
656,000
10,328
1.6%
  
354,487
8,172
2.3%
  
18,500
1.8%
Portland
$253,000
99%
561,000
10,201
1.8%
  
225,335
4,600
2.0%
  
14,801
1.9%
                         
San Francisco
$755,000
44%
368,000
893
0.2%
  
344,000
2,838
0.8%
  
3,731
0.5%
Oakland
$655,000
50%
625,000
4,970
0.8%
  
270,000
3,599
1.3%
  
8,569
1.0%
San Jose
$711,000
52%
388,000
2,218
0.6%
  
192,000
4,081
2.1%
  
6,299
1.1%
                         
Los Angeles
$505,000
45%
1,877,000
9,719
0.5%
  
1,392,963
14,162
1.0%
  
23,881
0.7%
Ventura
$564,000
58%
199,000
1,345
0.7%
  
53,295
636
1.2%
  
1,981
0.8%
Orange
$696,000
46%
628,000
3,675
0.6%
  
340,800
4,224
1.2%
  
7,899
0.8%
San Diego
$615,000
40%
664,000
4,746
0.7%
  
375,664
3,947
1.1%
  
8,693
0.8%
                         
PNW
$300,974
89%
1,217,000
20,529
1.7%
  
579,822
12,772
2.2%
  
33,301
1.9%
                         
No Cal
$697,381
49%
1,381,000
8,081
0.6%
  
806,000
10,518
1.3%
  
18,599
0.9%
                         
So Cal
$565,787
45%
3,368,000
19,485
0.6%
  
2,162,722
22,969
1.1%
  
42,454
0.8%
                         
ESSEX
$542,229
55%
5,966,000
48,095
0.8%
 
3,548,543
46,259
1.3%
 
94,354
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
                
       
3
                

Essex Markets Forecast 2007: 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
  
3,200
0.9%
  
10,500
1.5%
  
38,000
2.6%
  
7.50%
  
96.00%
Portland
  
3,400
1.4%
  
11,000
1.9%
  
27,000
2.6%
  
5.00%
  
95.50%
   
 
      
 
  
 
 
  
 
  
 
San Francisco
  
2,800
0.8%
  
1,000
0.3%
  
15,000
1.5%
  
7.00%
  
96.50%
Oakland
  
2,500
0.9%
  
5,800
0.9%
  
24,000
2.2%
  
6.00%
  
96.00%
San Jose
  
2,000
1.2%
  
2,200
0.6%
  
16,000
1.7%
  
7.00%
  
96.00%
No. Cal.
 
7,300
0.9%
 
9,000
0.6%
 
55,000
1.9%
 
6.75%
  
96.00%
   
 
      
 
  
 
 
  
 
  
 
Ventura
  
600
1.2%
  
2,300
1.1%
  
6,000
1.7%
  
5.00%
  
96.00%
Los Angeles
  
9,300
0.6%
  
10,300
0.5%
  
48,000
1.2%
  
4.50%
  
96.00%
Orange
  
4,100
1.1%
  
4,100
0.6%
  
20,000
1.3%
  
5.00%
  
96.00%
San Diego
  
4,300
1.1%
  
7,500
1.1%
  
25,000
1.9%
  
3.50%
  
95.50%
So. Cal.
 
18,300
0.8%
 
24,200
0.7%
 
99,000
1.4%
 
4.50%
  
95.75%
                           
All data is an Essex Forecast
                      
                           
U.S. Economic Assumptions: G.D.P. - 3.0% Growth, Jobs - 1.6% 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 2007 over the comparable actual figures for December 2006. The first
     
column represents the current Essex forecast of the increase in Total Non-Farm Industry Employment. The second column
     
represents these forecasted new jobs as a percent of the December 2006 base.
         
                           
***The Forecast Market Conditions represents Essex's estimates of the Change in Rents/Occupancy Rates at the
      
end of 2007. The Estimated Year-over-Year Rent Growth represents the forecast change in Effective Market Rents for
     
December 2007 vs.December 2006 (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 2007.
      
 
4
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