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): March 31, 2007

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 May 2, 2007 Essex Property Trust, Inc. (the “Company”) issued a press release announcing the Company’s earnings for the quarter ended March 31, 2007. 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 May 2, 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: May 2, 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 May 2, 2007
99.2	Supplemental Information

EX-99.1

FOR IMMEDIATE RELEASE

Nicole Culbertson

(650) 849-1649

Essex Announces First Quarter 2007 Earnings Results

Recurring Funds From Operations Increased 18.9% for the First Quarter

2007 FFO Guidance Increased to $5.50 - $5.65 Per Diluted Share

Palo Alto, California—May 2, 2007—Essex Property Trust, Inc. (NYSE:ESS) announces its first quarter 2007 earnings results and related business activities.

Funds from Operations (“FFO”) for the quarter ended March 31, 2007, totaled $45.4 million, or $1.70 per diluted share, an increase of 50.1% compared to $28.9 million, or $1.13 per diluted share for the quarter ended March 31, 2006.

The Company’s FFO, excluding non-recurring items, increased 18.9% per diluted share or $6.8 million for the quarter ended March 31, 2007 compared to the quarter ended March 31, 2006. 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 first quarter results for 2007 and 2006:

l	In 2007, the Company received approximately $33.9 million for its share of proceeds from the sale of City Heights Apartments, resulting in a gain on sale of $13.7 million (not included in FFO), and $10.3 million in fee income (resulting in $10.1 million of FFO).
l	In 2007, incremental net gains related to the sale of 13 condominium units at Peregrine Point generated FFO of $0.3 million.
l	In 2006, net gain on sale of marketable securities generated FFO of $0.7 million.

Net income available to common stockholders for the quarter ended March 31, 2007 totaled $35.3 million, or $1.46 per diluted share, compared to net income available to common stockholders of $9.8 million, or $0.43 per diluted share, for the quarter ended March 31, 2006.

Commenting on Essex’s first quarter results, Keith R. Guericke, President and Chief Executive Officer for the Company stated, “We are pleased to report outstanding results for our entire portfolio. Northern California and Seattle Metro continue to outperform our expectations.” He continued, “We anticipate continued strength throughout all of our West Coast markets for the remainder of 2007 and consequently we have increased guidance with respect to our 2007 FFO per diluted share to a range of $5.50 to $5.65.”

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 ended March 31, 2007, compared to the quarter ended March 31, 2006:

	Q1 2007 compared to Q1 2006
	Revenues	Expenses	NOI
Southern California	6.1%	2.3%	7.9%
Northern California	8.9%	2.1%	12.3%
Seattle Metro	11.4%	3.2%	16.4%
Same-Property Average	7.5%	2.7%	10.0%

The table below illustrates the sequential percentage change in Same-Property revenues, expenses, and NOI for the quarter ended March 31, 2007 versus the quarter ended December 31, 2006:

	Q1 2007 compared to Q4 2006
	Revenues	Expenses	NOI
Southern California	0.1%	-0.8%	0.6%
Northern California	2.6%	-7.9%	8.2%
Seattle Metro	2.1%	-0.7%	3.7%
Same-Property Average	1.0%	-1.9%	2.4%

Same-Property financial occupancies for the quarters ended are as follows:

	3/31/07	12/31/06	3/31/06
Southern California	95.7%	96.3%	96.4%
Northern California	95.4%	94.8%	96.7%
Seattle Metro	95.9%	96.0%	96.7%
Same-Property Average	95.6%	95.9%	96.4%

ACQUISITIONS/DISPOSITIONS

In March 2007, the Company acquired Harvest Park apartments, a 104-unit community located in Santa Rosa, California for approximately $22.5 million. The property was built in 2004 with a condo map and is comprised of eight buildings on 5.8 acres. Amenities include a fitness center, pool and spa, washer and dryer in each unit, 9-foot ceilings, patio/balcony and modern finishes.

In March 2007, the Company acquired two adjacent apartment communities aggregating 108 units located in Santa Barbara, California for approximately $21.2 million. Lucero Village, built in 1973 consists of 70 units and features a pool. The Continental, built in 1965, consists of 38 units. Both communities have undergone recent interior renovations including new appliances, Pergo flooring, new lighting and crown molding in most units.

In April 2007, the Company acquired Cardiff by the Sea Apartments located in Cardiff, California for approximately $72 million. The community, located approximately a half mile from the ocean is in Northern San Diego County, consists of 300 units and was built in 1986. Property amenities include two pools and two tennis courts. Unit amenities include private patio/balconies or enclosed sunrooms, and select units include wood-burning fireplaces, walk-in closets and full-size washers and dryers.

During February 2007, the Company and its joint venture partner sold City Heights Apartments, a 687-unit community located in Los Angeles, California for $120 million. The Company’s net proceeds from the transaction totaled approximately $33.9 million which included $23.6 million from the gain on sale and $10.3 million for fees received from the joint venture partner ($0.2 million was accrued as FFO in prior years).

DEVELOPMENT

During the first quarter of 2007, the Company had 16 projects totaling approximately 3,100 units in various stages of development. The total development pipeline is approximately $970 million with approximately $60 million spent during the first quarter.

During the quarter the Company added “Broadway Heights” (a joint venture) to the predevelopment pipeline.  The project is located in downtown Seattle and the joint venture partner will be contributing land to the venture in exchange for a 50 percent interest in the project.  Construction activity is expected to begin in April 2008 on 250-

300 apartment units with 25,000 square feet of ground-floor retail. Expected completion of the property is January 2010 with stabilized operations anticipated in November 2010.

Fund II's, Lake Union project, located in Seattle, commenced construction in August 2006 and initial framing of the property will take place in May 2007. Consisting of 127 units, the property will offer views of Lake Union to the majority of its residents and will also feature 9,330 square feet of ground-floor retail space, and will offer residents a fitness center as well as a rooftop deck featuring barbeque pits.

Additional information pertaining to the location of all development projects related costs and construction timelines can be found on page S-9 in the Company’s Supplemental Financial Information package.

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. Redevelopment communities typically have apartment units that are not available for rent and, as a result, may have less than stabilized operations. As of March 31, 2007, the Company had ownership interests in redevelopment communities aggregating 4,249 units in various stages of renovation with estimated total redevelopment costs of $115.4 million, of which $68.5 million remains to be expended.

During the quarter, redevelopment commenced on Pathways Apartments, a 296-unit community located in Long Beach, CA. The redevelopment of the property aims to capitalize on the opportunity to compete with the newer assets in the market while increasing the value of the community. The Company plans to add a new leasing office, upgraded fitness center and improved exterior. Renovated units will feature new kitchen appliances, cabinets, plumbing and electrical upgrades including the addition of washers and dryers. Total estimated redevelopment costs are $10.7 million, of which $9.3 million remains to be expended. The Company has already achieved expected post-rehab units that have undergone renovation by increasing rents on average 17 percent, net of market increases.

Also in the initial stages of redevelopment is Treetops Apartments located in Fremont, CA. The property consists of 172 units and the redevelopment will include a remodel of the leasing center, business center and pool area. The property is currently undergoing exterior renovations to include new siding, landscaping, roofing, and a new laundry facility and fitness center. The property will begin interior renovations once a significant amount of the exterior work has been completed. The property’s total estimated redevelopment costs are $8.3 million, of which $7.1 million remains to be expended.

The Renaissance, acquired by the Essex Apartment Value Fund II, L.P. (“Fund II”) in August of 2006, is a 168-unit community located in Los Angeles. The properyt was built in 1990, and is currently in the process of redevelopment. The scope of the redevelopment will include replacement of the roof, leasing office renovation, front entry restoration as well as unit interior upgrades. Unit interior upgrades will include new appliances, granite countertops and new cabinets. The total renovation budget is $4 million, of which $3.3 million remains to be expended.

Regency Tower, a 178-unit community located in Oakland is another Fund II property under redevelopment. The scope of the redevelopment will include a remodel of the leasing office, exterior common area improvements as well as interior unit renovations to include upgraded kitchens and cabinets. The total renovation budget is $4.5 million, of which $2.7 million remains to be expended. The Company has already achieved expected post-rehab units that have undergone renovation by increasing rents between 23 and 46 percent, net of market increases.

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

In March 2007, the Company originated a mortgage loan secured by the Camino Ruiz Square community purchased in December 2006 in the amount of $21.1 million, with a fixed interest rate of 5.36%, which matures in April 2017.

During the first quarter of 2007, the Company entered into a ten-year forward-starting interest rate swap for a notional amount of $50 million and a settlement date on or before October 1, 2011. As of March 31, 2007, the Company’s ten-year forward-starting interest rate swaps totaled a notional amount of $500 million with rates ranging from 4.9% to 5.9% and settlement dates from April 2007 through October 2011.

During April 2007, the Company refinanced a mortgage loan for $35.7 million secured by the Tierra Vista property in the amount of $62.5 million, with a fixed interest rate of 5.47%, which matures in April 2017. In conjunction with this transaction the Company settled its first $50 million forward-starting swap and received $1.3 million from the counterparty. The settlement of the swap was deemed effective and reduces the interest rate on the new Tierra Vista mortgage loan to 5.19%.

GUIDANCE

The Company has increased its 2007 FFO Guidance to a range of $5.50 to $5.65 per diluted share, and 2007 Earnings per Share (“EPS”) guidance of $2.70 to $2.85 per diluted share. The revision reflects the better than expected regional economic strength that is currently benefiting the Company’s targeted supply-constrained markets.

CONFERENCE CALL WITH MANAGEMENT

The Company will host an earnings conference call with management on Thursday, May 3, 2007, at 10:00 a.m. PDT - 1:00 p.m. EDT, which will be broadcast live via the Internet at www.essexpropertytrust.com, and accessible via phone by dialing (800) 320-2978 and entering the passcode 79937561.

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 first quarter earnings link. To access the replay digitally, dial (888) 286-8010 using the passcode, 72731734. 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.

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 apartment communities located in highly desirable, supply-constrained markets. Essex currently has ownership interests in 132 apartment communities 27,387 units, and has 908 units in development.

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) 494-3700.

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 FFO to all periods presented. However, there is judgment involved and other REIT's in calculating FFO may vary from the NAREIT definition for this measure, and thus their disclosure of FFO may not be comparable to Essex's calculation.   

The following table sets forth the Company's calculation of FFO for the three months ended March 31, 2007 and 2006.

	Three Months Ended March 31,
Funds from operations	2007	2006
Net income available to common stockholders	$35,303	$9,834
Adjustments:
Depreciation and amortization	21,718	20,091
Gains not included in FFO (1)	(14,040)	(3,062)
Minority interests and co-investments (2)	2,406	2,054
Funds from operations	$45,387	$28,917

(1)   Amount includes net gain from sale of City Heights and the equivalent to accumulated depreciation on Peregrine Point condominium sales.

 (2)   Amount includes the following 2007 adjustments: (i) minority interest related to Operating Partnership units totaling $3.8 million, (ii) depreciation add back and preferred interest for co-investments not recognized for GAAP totaling $0.9 million, and (iii) less adjustments to income from Waterstone at Fremont and City Heights not recognized for FFO totaling $2.3 million.

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 items 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 2007 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 2007, and the anticipated rent increases from the Company’s unit turn program. 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, 2006.

###

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
(Dollars in thousands, except per share amounts)	March 31,
	2007		2006
Revenues:
Rental and other property	$	92,154	$	82,233
Management and other fees from affiliates		1,040		824
		93,194		83,057
Expenses:
Property operating, excluding real estate taxes		23,120		21,660
Real estate taxes		7,712		7,170
Depreciation and amortization		21,677		19,320
Interest		18,266		18,412
Amortization of deferred financing costs		677		696
General and administrative		6,096		4,899
Other expenses		-		970
		77,548		73,127
Earnings from operations		15,646		9,930
Interest and other income		2,182		2,394
Equity income (loss) co-investments		1,982		(442)
Minority interests		(5,307)		(4,807)
Income before discontinued operations and
income tax provision		14,503		7,075
Income tax provision		-		(37)
Income before discontinued operations		14,503		7,038
Income and gain from discontinued operations,
net of minority interests		23,043		3,284
Net income		37,546		10,322
Dividends to preferred stockholders		(2,243)		(488)
Net income available to common stockholders	$	35,303	$	9,834
Net income per share - basic	$	1.51	$	0.43
Net income per share - diluted	$	1.46	$	0.43
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
Selected Line Item Detail			March 31,
(Dollars in thousands)			2007		2006
Rental and other property
	Rental		$	86,876	$	77,654
	Other property			5,278		4,579
		Rental and other property	$	92,154	$	82,233
Management and other fees from affiliates
	Management		$	781	$	824
	Development and redevelopment			259		-
		Management and other fees from affiliates	$	1,040	$	824
General and administrative
	General and administrative		$	8,782	$	7,032
	Allocated to property operating expenses - administrative			(1,394)		(1,262)
	Capitalized to real estate			(1,292)		(871)
		Net general and administrative	$	6,096	$	4,899
Interest and other income
	Interest income		$	1,790	$	315
	Lease income			392		392
	Gain from sale of marketable securities			-		1,687
		Interest and other income	$	2,182	$	2,394
Minority interests
	Limited partners of Essex Portfolio, L.P.		$	1,380	$	702
	Perpetual preferred distributions			2,559		2,559
	Series Z and Z-1 incentive units			198		151
	Third party ownership interests			127		320
	Down REIT limited partners' distributions			1,043		1,075
		Minority interests	$	5,307	$	4,807

   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
(Dollars in thousands, except share and per share amounts)			March 31,
			2007		2006		% Change
Funds from operations
Net income available to common stockholders			$	35,303	$	9,834
Adjustments:
	Depreciation and amortization			21,718		20,091
	Gains not included in FFO (1)			(14,040)		(3,062)
	Minority interests and co-investments (2)			2,406		2,054
		Funds from operations	$	45,387	$	28,917
		FFO per share-diluted	$	1.70	$	1.13	50.1%
Components of the change in FFO
Non-recurring items:
Income generated from TRS activities, net of taxes and expenses				(270)		-
City Heights - subordination fees				(10,068)		-
Net gain on sale of marketable securities				-		(717)
		Funds from operations excluding non-recurring items		35,049		28,200
		FFO excluding non-recurring items per share-diluted	$	1.31	$	1.10	18.9%
Changes in recurring items:
Same-property NOI			$	4,709
Non-same property NOI				3,210
Management fees from joint ventures				216
Interest expense and amortization of deferred financing costs				165
Other items, net				(1,451)
			$	6,849
Weighted average number of shares outstanding diluted (3)				26,735,117		25,572,575
(1)	Amount includes net gain from sale of City Heights and the equivalent to accumulated depreciation on Peregrine Point condominum sales.
(2)	Amount includes the following 2007 adjustments: (i) minority interest related to Operating Partnership units totaling $3.8 million, (ii) depreciation add back and preferred interest for co-investments not recognized for GAAP totaling $0.9 million, and (iii) less adjustments to income from Waterstone at Fremont and City Heights not recognized for FFO totaling $2.3 million.
(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)
				March 31, 2007		December 31, 2006
Real Estate:
	Land and land improvements		$	577,223	$	560,880
	Buildings and improvements			2,173,605		2,108,307
				2,750,828		2,669,187
	Less: accumulated depreciation			(486,134)		(465,015)
				2,264,694		2,204,172
Real estate - held for sale, net				-		41,221
Real estate under development				152,248		103,487
Investments				64,221		60,451
				2,481,163		2,409,331
Cash and cash equivalents				25,815		23,610
Marketable securities				5,784		-
Other assets				51,093		40,036
Deferred charges, net				12,476		12,863
		Total assets	$	2,576,331	$	2,485,840
Mortgage notes payable			$	1,092,407	$	1,060,704
Mortgage notes payable - held for sale				-		32,850
Exchangeable bonds				225,000		225,000
Lines of credit				158,374		93,000
Other liabilities				90,434		77,852
Deferred gain				2,193		2,193
		Total liabilities		1,568,408		1,491,599
Minority interests				230,259		236,120
Series G cumulative convertible preferred stock, liquidation value				145,912		145,912
Stockholders' Equity:
	Common stock			2		2
	Series F cumulative redeemable preferred stock, liquidation value			25,000		25,000
	Additional paid-in-capital			690,467		686,937
	Distributions in excess of accumulated earnings			(83,985)		(97,457)
	Accumulated other comprehensive income (loss)			268		(2,273)
		Total stockholders' equity		631,752		612,209
		Total liabilities and stockholders' equity	$	2,576,331	$	2,485,840

  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 - March 31, 2007
(Dollars in thousands)
			Percentage of				Weighted	Weighted
			Total	Balance			Average	Average Maturity
			Debt	Outstanding			Interest Rate	In Years
Mortgage notes payable
	Fixed rate - secured		61%	$	903,356		6.4%	4.5
	Tax exempt variable (1)		13%		189,051		4.8%	23.5
		Total mortgage notes payable	74%		1,092,407		6.1%	7.7
Exchangeable bonds (2)			15%		225,000		3.6%
Line of credit - secured (3)			7%		99,974		5.8%
Line of credit - unsecured (4)			4%		58,400		6.2%
			11%		158,374		5.9%
		Total debt	100%	$	1,475,781		5.8%
							Weighted
	Scheduled principal payments (excludes lines of credit)						Average
							Interest Rate
			2007	$	68,662	(5)	6.0%
			2008		113,226		6.8%
			2009		24,405		6.9%
			2010		156,351		8.0%
			2011		154,927		6.4%
			Thereafter		799,836		5.0%
			Total	$	1,317,407		5.8%
Capitalized interest for the quarter was approximately $2.0 million.
(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%.
(4)	Unsecured line of credit commitment is $200 million and matures in March 2009.
	The underlying interest rate on this line is based on a tiered rate structure tied to the Company's corporate ratings and is currently at LIBOR plus 0.80%.
(5)	During April 2007, the Company refinanced a mortgage loan for $35.7 million secured by the Tierra Vista property in the amount of $62.5   million, with a fixed interest rate of 5.47%, which matures in April 2017. In conjunction with this transaction the Company settled its first $50 million forward-starting swap and received $1.3 million from the counterparty. The settlement of the swap was deemed effective and reduces the interest rate on the new Tierra Vista mortage loan to 5.19%.

   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 - March 31, 2007
(Dollars and shares in thousands, except per share amounts)
Total debt	$	1,475,781
Common stock and potentially dilutive securities
Common stock outstanding		23,471
Limited partnership units (1)		2,491
Options-treasury method		256
Total common stock and potentially dilutive securities		26,218	shares
Common stock price per share as of March 31, 2007	$	129.48
Market value of common stock and potentially dilutive securities	$	3,394,707
Perpetual preferred units/stock	$	304,500
Total equity capitalization	$	3,699,207
Total market capitalization	$	5,174,988
Ratio of debt to total market capitalization		28.5%
(1) Assumes conversion of all outstanding operating partnership interests in the Operating Partnership into shares of the Company's common stock.

   See Company's 10-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 March 31, 2007 and 2006
(Dollars in thousands)
			Southern California					Northern California					Seattle Metro					Other real estate assets (1)					Total
			2007		2006		% Change	2007		2006		% Change	2007		2006		% Change	2007		2006		% Change	2007		2006		% Change
Revenues:
	Same-property revenue		$	45,801	$	43,178	6.1%	$	14,371	$	13,191	8.9%	$	13,505	$	12,119	11.4%	$	2,639	$	2,472	6.8%	$	76,316	$	70,960	7.5%
	Non-same property revenue (2)			6,162		5,185			7,497		4,253			1,539		1,152			640		683			15,838		11,273
		Total Revenues	$	51,963	$	48,363		$	21,868	$	17,444		$	15,044	$	13,271		$	3,279	$	3,155		$	92,154	$	82,233
Property operating expenses:
	Same-property operating expenses		$	14,251	$	13,933	2.3%	$	4,481	$	4,388	2.1%	$	4,719	$	4,572	3.2%	$	1,236	$	1,147	7.8%	$	24,687	$	24,040	2.7%
	Non-same property operating expenses (2)			1,841		1,585			2,747		1,530			476		442			1,081		1,233			6,145		4,790
		Total property operating expenses	$	16,092	$	15,518		$	7,228	$	5,918		$	5,195	$	5,014		$	2,317	$	2,380		$	30,832	$	28,830
Net operating income:
	Same-property net operating income		$	31,550	$	29,245	7.9%	$	9,890	$	8,803	12.3%	$	8,786	$	7,547	16.4%	$	1,403	$	1,325	5.9%	$	51,629	$	46,920	10.0%
	Non-same property operating income (2)			4,321		3,600			4,750		2,723			1,063		710			(441)		(550)			9,693		6,483
		Total net operating income	$	35,871	$	32,845		$	14,640	$	11,526		$	9,849	$	8,257		$	962	$	775		$	61,322	$	53,403
Same-property operating margin				69%		68%			69%		67%			65%		62%			53%		54%			68%		66%
Same-property turnover percentage				45%		48%			49%		49%			52%		48%			50%		55%			48%		49%
Same-property concessions			$	234	$	107		$	53	$	30		$	22	$	57		$	18	$	28		$	327	$	223
Average same-property concessions per turn (3)			$	191	$	82		$	129	$	74		$	37	$	106		$	123	$	174		$	138	$	92
Net operating income percentage of total				58%		62%			24%		22%			16%		15%			2%		1%			100%		100%
Loss to lease (4)			$	7,997				$	5,506				$	2,363				$	225				$	16,092
	Loss to lease as a percentage
	of rental income			3.8%					5.7%					3.8%					2.7%					4.3%
Reconciliation of apartment units at end of period
	Same-property apartment units			10,766					3,315					4,452					1,177					19,710
	Consolidated Apartment Units			12,386		12,957			5,523		4,621			4,905		4,956			1,177		1,177			23,991		23,711
	Joint Venture			480		598			2,101		1,936			515		515			-		-			3,096		3,049
	Under Development (5)			543		551			238		-			127		-			-		-			908		551
		Total apartment units at end of period		13,409		14,106			7,862		6,557			5,547		5,471			1,177		1,177			27,995		27,311
		Percentage of total		48%		52%			28%		24%			20%		20%			4%		4%			100%		100%
Average same-property financial occupancy				95.7%		96.4%			95.4%		96.7%			95.9%		96.7%			94.9%		95.5%			95.6%		96.4%
(1)	Includes four apartment communities in Portland, OR, one community in Houston, TX, and other rental properties including commercial properties. Included in first quarter 2007 non-same property operating expenses is $0.5 million for a property legal settlement, offset by the $0.5 million for the elimination of earthquake insurance expense paid to a wholly owned captive insurance company.
(2)	Includes properties which subsequent to January 1, 2006 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 March 31, 2007.

  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 March 31, 2007, March 31, 2006 and December 31, 2006
(Dollars in thousands)
				Average Property Rental Rates					Property Revenue					Property Revenue
				March 31,		March 31,			March 31,		March 31,			December 31,		Sequential
		Region	Units	2007		2006		% Change	2007		2006		% Change	2006		% Change
Southern California
	Ventura County		2,844	$	1,377	$	1,300	5.9%	$	11,851	$	11,302	4.9%	$	11,759	0.8%
	Los Angeles County		2,754		1,658		1,545	7.3%		14,475		13,505	7.2%		14,454	0.1%
	Orange County		2,037		1,495		1,398	6.9%		9,115		8,709	4.7%		9,175	-0.7%
	San Diego County		2,616		1,046		1,001	4.5%		8,423		7,963	5.8%		8,389	0.4%
	Santa Barbara County		239		1,670		1,405	18.9%		1,229		1,014	21.2%		1,259	-2.4%
	Riverside County		276		816		801	1.9%		708		685	3.4%		697	1.6%
			10,766		1,383		1,298	6.5%		45,801		43,178	6.1%		45,733	0.1%
Northern California
	San Francisco MSA		175		1,635		1,484	10.2%		858		793	8.2%		831	3.2%
	Santa Clara County		1,870		1,478		1,316	12.3%		8,401		7,440	12.9%		8,080	4.0%
	Alameda County		200		1,200		1,092	9.9%		734		673	9.1%		707	3.8%
	Contra Costa County		1,070		1,428		1,336	6.9%		4,378		4,285	2.2%		4,386	-0.2%
			3,315		1,453		1,318	10.2%		14,371		13,191	8.9%		14,004	2.6%
Seattle Metro			4,452		967		855	13.1%		13,505		12,119	11.4%		13,228	2.1%
Other real estate assets			1,177		731		677	8.0%		2,639		2,472	6.8%		2,631	0.3%
Total Same-Property revenue			19,710	$	1,262	$	1,164	8.4%	$	76,316	$	70,960	7.5%	$	75,596	1.0%

  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 - March 31, 2007
(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	$	34.2	$	36.9	$	71.1	Jan-06	Feb-08	Feb-08	Oct-08
100 Grand		Oakland, CA	238		17.7		78.5		96.2	Dec-06	Dec-08	Dec-08	May-09
	Consolidated - Development Projects		513		51.9		115.4		167.3
Development Projects - Fund II
Project Name		Location
Lake Union		Seattle, WA	127		13.0		22.4		35.4	Aug-06	Jan-08	Jan-08	Jun-08
Studio City		Studio City, CA	149		22.8		30.5		53.3	Jun-07	Mar-09	Mar-09	Jun-09
Chatsworth		Chatsworth, CA	119		9.9		29.5		39.4	Jun-07	May-09	May-09	Sep-09
	Fund II - Development Projects		395		45.7		82.4		128.1
	Total - Development Projects		908		97.6		197.8		295.4
Predevelopment Projects
Project Name		Location
	Moorpark	Moorpark, CA	-		-		-		-	Sep-07	Jun-09	Jun-09	Feb-10
	Berkeley (1)	Berkeley, CA	-		-		-		-	Sep-07	Sep-09	Sep-09	Mar-10
	Citiplace	San Diego, CA	-		-		-		-	Feb-08	Nov-09	Nov-09	Mar-10
	Broadway Heights (2)	Seattle, WA	-		-		-		-	Apr-08	Jan-10	Jan-10	Nov-10
	Hollywood	Hollywood, CA	-		-		-		-	Jun-08	Jun-10	Jun-10	Dec-10
	Tasman (1)	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 Project (3)		-		-		-		-
Total - Predevelopment Projects			2,136		92.0		554.0		646.0
Other Projects (TRS)
Project Name		Location
	Peregrine Pointe (4)	Issaquah, WA	8		-		-		-	-	-	-	-
	Archer	San Jose, CA	45		-		-		-	Aug-07	Dec-08	Dec-08	Mar-09
	View Pointe	Newcastle, WA	24		-		-		-	Sep-07	Nov-08	Nov-08	Mar-09
	Total - Other Projects		77		8.3		20.7		29.0
	Grand Total - Development Pipeline		3,121	$	197.9	$	772.5	$	970.4
(1)	Properties in contract to be purchased by the Company with non-refundable deposits or options payments.
(2)	The Company has entered into a joint venture development project with a third-party to develop this property and Essex will have a 50% interest in the project.
(3)	There is one additional predevelopment project located in Northern California that is in the entitlement process.
(4)	The property is being sold as condominium units, and 58 of 66 units have been sold as of March 31, 2007.

  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 Pipeline - March 31, 2007
(Dollars in thousands)
				Total		Estimated		Estimated							Q1 2007	Units completed
				Incurred		Remaining		Total	Redevelopment		NOI		NOI		Rehab	as of
	Region/Project Name	Units		To Date		Cost		Cost	Start Date		Q1 2007		Q1 2006		Vacancy Loss	3/31/2007
	Approved - Redevelopment Projects
	Woodland/Foothill Commons, Bellevue, WA (1)	596	$	279	$	3,097	$	3,376	Apr-06
		596		279		3,097		3,376
	Active - Redevelopment Projects
	Southern California
	Kings Road, Los Angeles, CA (2)	196		4,525		1,667		6,192	Jan-04	$	634	$	589	$	4	115
	Mira Monte, Mira Mesa, CA	355		5,467		556		6,023	Sep-04		859		747		20	324
	Avondale at Warner Center, Woodland Hills, CA	446		9,954		2,010		11,964	Oct-04		1,252		1,087		37	154
	Pathways, Long Beach, CA	296		1,391		9,323		10,714	Jun-06		942		863		38	7
	Highridge, Rancho Palos Verdes, CA	255		63		16,000		16,063	Jan-07		888		903		4	-
	Northern California
	The Montclaire - Phase I - III, Sunnyvale, CA	390		3,221		11,877		15,098	Aug-06		964		866		77	55
	Treetops, Fremont, CA	172		1,219		7,054		8,273	Sep-06		394		324		-	1
	Summerhill Commons, Newark, CA	184		3,259		1,067		4,326	Oct-06		471		432		8	-
	Wimbledon Woods, Hayward, CA	560		1,866		7,484		9,350	Oct-06		1,348		1,102		8	3
	Seattle Metro
	Palisades - Phase I and II, Bellevue, WA	192		6,059		532		6,591	Sep-04		386		244		9	192
	Sammamish View, Bellevue, WA	153		2,665		1,146		3,811	Dec-05		378		333		65	104
	Bridle Trails, Kirkland, WA (3)	108		4,422		651		5,073	May-05		285		134		-	108
		3,307		44,111		59,367		103,478			8,801		7,624		270	1,063
	Consolidated - Redevelopment Projects	3,903		44,390		62,464		106,854			8,801		7,624		270	1,063
	Redevelopment Projects - Fund II
	Regency Tower - Phase I - II, Oakland, CA	178		1,735		2,741		4,476	Nov-05		389		216		5	84
	The Renaissance, Los Angeles, CA (4)	168		766		3,275		4,041	Oct-06		511		-		100	28
	Fund II - Redevelopment Projects	346		2,501		6,016		8,517			900		216		105	112
	Grand Total - Redevelopment Pipeline	4,249	$	46,891	$	68,480	$	115,371		$	9,701	$	7,840	$	375	1,175
(1)	The community was approved as a redevelopment project during 2006, but operations were not destabilized and therefore the community is classified 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.
(4)	The Renaissance was purchased in September 2006, thus there is no NOI for Q1 2006.

  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 the three
Investments - March 31, 2007				Essex	Total Fund		Debt				months ended
(Dollars in thousands)				Book	Estimated				Interest	Maturity	3/31/2007
				Value	Value	Units	Amount	Type	Rate	Date	NOI
Joint Ventures
	Essex Apartment Value Fund II, L.P. (Fund II)
		Alderwood Park, Newark, CA				96	7,136	Fixed	5.56%	Jun-2015
		Carlmont Woods, Belmont, CA				195	13,073	Fixed	4.89%	Dec-2013
		Davey Glen, Belmont, CA				69	6,654	Fixed	6.13%	Aug-2016
		Echo Ridge, Snoqualmie, WA				120	13,405	Fixed	5.01%	Sep-2014
		Enclave, San Jose, CA				637	21,607	Fixed	7.26%	Jan-2018
		Enclave, San Jose, CA				-	60,000	Variable	4.38%	Dec-2029
		Harbor Cove, Foster City, CA				400	35,251	Fixed	4.89%	Dec-2013
		Morning Run, Monroe, WA				222	13,856	Fixed	5.10%	Oct-2014
		Parcwood, Corona, CA				312	25,666	Fixed	4.89%	Dec-2013
		Regency Tower, Oakland, CA				178	11,179	Fixed	5.16%	Mar-2014
		Renaissance, Los Angeles, CA				168	23,392	Fixed	6.51%	May-2011
		Tower @ 801, Seattle, WA				173	19,538	Fixed	4.91%	Aug-2014
		Total		47,643	436,786	2,570	250,757				6,087
	Fund II - Development Pipeline (1)
		Lake Union, Seattle, WA				127	6,205	Variable	LIBOR+1.50%	Jan-2010
		Studio City, Studio City, CA				149	7,805	Variable	LIBOR+1.50%	Apr-2010
		Chatsworth, Chatsworth, CA				119
		Total		5,492	45,652	395	14,010
		Line of credit					13,800	Variable	LIBOR+0.875%	Jun-2007
				53,135	482,438	2,965	278,567
		Capitalized costs		720
				53,855
	Waterstone at Fremont (formerly
		known as Mountain Vista) (2)		1,182							1,159
	Other (3)			9,184
			$	64,221
	(1)	See S-9 for more detail about the Fund II Development Pipeline.
	(2)	Included in FFO for the 1st quarter is $0.2 million for the Company's preferred interest in this property, and unpaid preferred interest of approximately $7.5 million is expected to be paid in 2008.
	(3)	Other investments include three development joint ventures in preliminary stages totaling $8.7 million and a real estate technology investment. Two of the real estate investments are located in Northern California and one is located in Southern California.

  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 - March 31, 2007
(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 March 31, 2007							March 31, 2007
		Investment in		Related		Minority	Down-REIT				Operating
		Real Estate		Debt		Interest	Units (1)		Revenue		Expenses		NOI
Down-REITs:
Anchor Village	$	10,946	$	10,750	$	2,544	117,154	$	699	$	305	$	394
Barkley Apartments		9,452		4,960		2,369	80,302		604		211		393
Brookside Oaks		34,091		14,291		3,974	99,073		661		190		471
Capri at Sunny Hills		16,983		11,648		4,504	185,333		578		156		422
Brentwood Apartments		13,558		9,457		3,951	90,591		593		175		418
Hidden Valley (Parker Ranch)		45,093		33,493		6,089	62,647		1,350		382		968
Highridge Apartments		20,608		18,582		6,036	315,061		1,293		405		888
Montejo Apartments		9,113		5,877		1,596	38,038		443		127		316
Treehouse Apartments		12,103		7,913		3,299	75,700		613		166		447
Valley Park Apartments		16,294		10,024		1,461	60,892		699		162		537
Villa Angelina Apartments		21,196		13,555		2,886	59,839		974		217		757
		209,437		140,550		38,709	1,184,630		8,507		2,496		6,011
Other Co-investments (2):
Derian Office Building		16,747		-		-	n/a		483		123		360
(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) During the first quarter of 2007, The Company acquired the minority interest in the Bluffs property for $5 million, and sold the City Heights property for $120 million to a third-party. Essex received 20% of the net sales price plus unpaid fees recorded for FFO of $10.1 milllion.

  See Company's 10-Q for additional disclosures

S-12

E S S E X   P R O P E R T Y   T R U S T,   I N C.
Income From Discontinued Operations and Selected Financial Data - March 31, 2007
(Dollars in thousands)
Income from Discontinued Operations
For the quarter ended March 31, 2007, the Company sold the City Heights property which was consolidated in accordance with FIN 46R, and condominium units at Peregrine Point. For the quarter ended March 31, 2006, the Company sold the Vista Capri East and the Casa Tierra apartment communities, and the Diamond Valley Recreational RV park.
			Three Months Ended
			March 31,
			2007		2006
	Rental revenues	$	1,355	$	3,029
	Interest and other income		290		-
	Revenues		1,645		3,029
	Property operating expenses		(535)		(1,199)
	Interest expense		(416)		(579)
	Depreciation and amortization		(41)		(771)
	Minority interests		(57)		(91)
	Expenses		(1,049)		(2,640)
	Gain on sale (1)		613		3,062
	Gain on sale - City Heights		78,306		-
	Equity income co-investments		-		119
	Subordination fees		10,290		-
	Minority interests - OP units		(2,138)		(286)
	Minority interests - City Heights		(64,624)		-
	Net gain on sale of real estate		22,447		2,895
	Income from discontinued operations	$	23,043	$	3,284
	Common Stock Equivalents
			Q1 2007		Actual
			Weighted Avg.		As of 3/31/07
	Common Shares		23,432,419		23,471,399
	Stock Options		256,345		256,345
	Exchangeable Bonds		526,220		441,455
	Weighted Avg. Shares Diluted - EPS		24,214,984		24,169,199
	Vested Series Z Incentive Units		212,886		213,205
	Operating Limited Partnership Units		2,307,247		2,277,592
	Weighted Avg. Shares Diluted - FFO		26,735,117		26,659,996
(1) For 2007, amount includes gain on sale of Peregrine Point condominum units. The gain on sale and related minority interest for City Heights is presented separately.

  See Company's 10-Q for additional disclosures

S-13