-----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, EH9+svs5A9VqBY+qqPcVYrjR6iEJo9kBHphLFg/nImfwgKWvRVsy19YdeyKyfhQx GMFyU4MmiYPt+yf47g3MZQ== 0000920522-07-000049.txt : 20070802 0000920522-07-000049.hdr.sgml : 20070802 20070801173901 ACCESSION NUMBER: 0000920522-07-000049 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 3 CONFORMED PERIOD OF REPORT: 20070630 ITEM INFORMATION: Results of Operations and Financial Condition ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20070802 DATE AS OF CHANGE: 20070801 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: 071017225 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 body_8-k.htm FORM 8-K body_8-k.htm
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): June 30, 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 August 1, 2007 Essex Property Trust, Inc. (the “Company”) issued a press release announcing the Company’s earnings for the quarter ended June 30, 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 August 1, 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: August 1, 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 August 1, 2007
 
 
99.2
 
 
 
Supplemental Information
 
 
 

 EX-99.1 2 ex_99-1.htm EXHIBIT 99.1 ex_99-1.htm
 
 
FOR IMMEDIATE RELEASE

Nicole Culbertson
(650) 849-1649
 
Essex Announces Second Quarter 2007 Earnings Results
Recurring funds from operations increased 12.8% for the second quarter

Palo Alto, California—August 1, 2007—Essex Property Trust, Inc. (NYSE:ESS) announces its second quarter 2007 earnings results and related business activities.
 
Funds from Operations (“FFO”) for the quarter ended June 30, 2007, totaled $36.5 million, or $1.32 per diluted share.  The Company’s FFO, excluding non-recurring items, increased 12.8% per diluted share or $6.3 million for the quarter ended June 30, 2007 compared to the quarter ended June 30, 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 second quarter results for 2007 and 2006:
 
·  
In 2007, the Company recorded promote fees and net gains from condo sales in the amount of $0.5 million.
·  
In 2006, the Company recorded a gain of $8.8 million from the sale of the Vista Pointe joint venture (not included in FFO), and $8.2 million in fees and a promote distribution (included in FFO).
·  
In 2006, an impairment loss in the amount of $0.8 million (included in FFO) resulted from the write-down of a property in Houston, Texas.
 
Net income available to common stockholders for the quarter ended June 30, 2007 totaled $9.9 million, or 39 cents per diluted share, compared to net income available to common stockholders of $22.0 million, or 95 cents per diluted share, for the quarter ended June 30, 2006.
 
Commenting on Essex’s second quarter results, Keith R. Guericke, President and Chief Executive Officer stated, “During the quarter we experienced strong revenue growth compared to the second quarter last year, confirming our belief that our portfolio is well positioned within the west coast supply-constrained markets.”
 
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 three and six months ended June 30, 2007 compared to June 30, 2006:

 
Q2 2007 compared to Q2 2006
YTD 2007 compared to YTD 2006
                                            
Revenues
Expenses
NOI
Revenues
Expenses
NOI
Southern California
5.6%
2.9%
6.9%
5.8%
2.6%
7.4%
Northern California
8.8%
8.4%
9.0%
8.9%
5.2%
10.6%
Seattle Metro
11.8%
7.3%
14.4%
11.6%
5.2%
15.4%
Same-Property Average
7.3%
4.9%
8.5%
7.4%
3.8%
9.2%
The table below illustrates the sequential percentage change in Same-Property revenues, expenses, and NOI for the quarter ended June 30, 2007 versus the quarter ended March 31, 2007:

 
Q2 2007 compared to Q1 2007
 
Revenues
Expenses
NOI
Southern California
0.5%
1.7%
0.0%
Northern California
3.4%
5.1%
2.7%
Seattle Metro
3.2%
3.3%
3.2%
Same-Property Average
1.6%
2.5%
1.2%

 
Same-Property financial occupancies for the quarters ended are as follows:
 
 
6/30/07
3/31/07
6/30/06
Southern California
95.4%
95.7%
96.1%
  
Northern California
97.0%
95.4%
98.2%
  
Seattle Metro
96.6%
95.9%
97.6%
  
Same-Property Average
95.9%
95.6%
96.8%
  

 
ACQUISITIONS/DISPOSITIONS

During the quarter, the Company acquired five communities aggregating a total of $178 million. For the six months ended June 30, 2007, the Company has acquired seven communities totaling $222 million, surpassing its initial annual guidance by $22 million.

Cardiff by the Sea, located in Cardiff, California was acquired in April for $72 million. The 300-unit community, located approximately a half mile from the ocean in Northern San Diego County, was built in 1986.

Canyon Oaks, a 250-unit community located in San Ramon, California was acquired in May for $64.3 million. Built in 2005, the property features pool/spa, fitness center, media room, and private garages for residents. All units feature crown molding, washer/dryer, high ceilings and a large patio or balcony. The property is located in the new community of Windermere, a 2300-acre master planned community featuring new single-family homes. Conveniently situated nearby major job nodes and freeways, Canyon Oaks also provides residents access to excellent schools and a nearby shopping center opening in 2007.

Coldwater Canyon, acquired in May for $8.3 million, is a 39-unit property located in Studio City, California. The property, built in 1979, is centrally located in Los Angeles, close to major job centers and nearby Essex’s Studio Gateway development. Property amenities include a secure garage, central air conditioning, laundry facility and fireplaces for several units. Additionally, the property is one block away from Ventura Boulevard, providing residents easy access to a variety of dining and shopping options.

The Cairns is a 100-unit property located in the Lake Union area of Seattle. The property was built in 2005 and is conveniently located close to the downtown area, major freeways and offers residents views of downtown Seattle, the Space Needle and Lake Union. Essex purchased the property in June for $28.1 million. Property amenities include a 24-hour fitness center, rooftop deck with barbecues and a media/club room. All units feature washers and dryers, granite counters and several units include large walk-in closets.

On June 13, 2007, the Company entered into agreements to acquire ownership interests in two limited partnerships (one of the existing general partners is a related party) which collectively own the Thomas Jefferson Apartments.  The transaction is subject to the satisfaction of customary closing conditions and is expected to close in the third quarter of 2007.  Thomas Jefferson is a 156-unit apartment complex located in Sunnyvale, California. The property,
2
built in 1963, includes a fitness center, swimming pools, air conditioning and private patios or balconies for residents.  In June, the company acquired Magnolia Lane from a third party for $5.4 million. Magnolia Lane is a 32-unit community adjacent to the Thomas Jefferson community and subject to a ground lease that expires in 64 years.  Built in 2001, Magnolia Lane features pool/spa, fitness center and each unit is equipped with a washer and dryer.  Both properties are located nearby major freeways and provide residents access to excellent schools.

DEVELOPMENT

As of June 30, 2007, the company had 16 projects in various stages of development totaling approximately 3,115 units. The development pipeline totaled $987 million with $211 million of costs incurred to date.

During the quarter, construction commenced at Topanga Canyon, a 119-unit development owned by the Essex Apartment Value Fund II, L.P. (“Fund II”). The property, located in Chatsworth, California, is part of a larger 14-acre subdivision currently under construction for 29 luxury single-family homes. The development will have three stories of apartments situated on a podium over one level of parking. The community is gated and features common amenities including a fully appointed clubhouse, pool, spa, barbecue area and a large courtyard with a fountain. Additionally, the site is located nearby major freeways and Warner Center, a major job node. Initial occupancy is anticipated in May 2009 with estimated total project costs of $39.4 million.

The Company recently obtained entitlement approvals for the construction of City Centre, a 200-unit Mediterranean-style apartment community located in Moorpark, California. The site is situated near the Metrolink train station, providing access to the greater Los Angeles basin and downtown job centers. The property will be a gated community consisting of three-story garden-style apartment homes with a combination of covered and attached garages. Amenities include a fully appointed clubhouse facility with conference center, exercise room, tenant event center, pool, spa, and barbecue areas. The Company anticipates construction starting in September 2007 with estimated total costs of $51.8 million.

Currently in the site demolition phase is Studio Gateway, a 149-unit apartment community located in Studio City, California owned by Fund II.  Adjacent to CBS studios, the project is near Ventura Blvd., providing access to a variety of shopping, dining and entertainment. The property will consist of two four-story apartment buildings situated on a podium over two levels of parking. Initial occupancy is anticipated in March 2009 with estimated total project costs of $60.6 million.

Northwest Gateway, a 275-unit community located in downtown Los Angeles, has continued to progress on schedule for a February 2008 opening with onsite pre-leasing expected to start in December. During the quarter, the initial framing of the structure was near completion and the roof frame is currently under construction. A four and five-story structure, the property will feature a fitness center, business center, Olympic-size swimming pool, game room, and a media/theater center.

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 involve significant construction activities to the exterior of the property as well as apartment units under extensive remodeling and as a result may have less than stabilized operations. As of June 30, 2007, the Company had ownership interests in 16 redevelopment communities aggregating 4,345 apartment units with estimated total redevelopment costs of $148.3 million.
3
During the quarter, redevelopment commenced at Foothill Commons and Woodland Commons, two adjacent properties located in Bellevue, Washington. Foothill Commons, a 360-unit property built in 1967, will receive a renovated fitness center, pool courtyard, structural upgrades, siding replacement, as well as the construction of shared garaged parking. Unit interior upgrades will include the addition of a washer and dryer in each unit, new cabinetry, appliances and countertops. The renovation at Woodland Commons, a 236-unit property built in 1976, will include the addition of perimeter fencing and gate-controlled access to the property as well as architectural enhancements. Unit improvements will consist of new hardwood cabinets, electrical fixtures, new appliances, countertops and the addition of a washer and dryer. The redevelopment seeks to increase value and rejuvenate both properties to provide a competitive advantage in the market. The total budget for both redevelopment projects is $30.5 million.
 
The initial stages of a redevelopment are underway at Highridge Apartments, located in Rancho Palos Verdes, California. The $16 million redevelopment will consist of a full repositioning of the asset to include full interior renovations and the addition of a washer and dryer in each unit. Exterior enhancements will include new paint, windows, landscaping and the renovation of balconies and patios. The property will also receive a new leasing center and remodel of its existing clubhouse and fitness center. The redevelopment aims to increase value and reposition the asset to compete with newer properties in the market.
 
Also in the initial stages of redevelopment is Marina Cove, a 292-unit community located in Santa Clara, California. The property, developed in 1974, commenced renovation in June with a redevelopment budget of $9.9 million.  The renovation will include full interior upgrades including new appliances, cabinets, countertops, plumbing, electrical fixtures and the addition of a washer and dryer in each unit. Exterior improvements will consist of new paint, balcony railings, roofing and landscaping.
 
In the final stages of redevelopment is Sammamish View located in Bellevue, Washington. To date, over 90 percent of the units have been renovated to include new countertops, cabinets, light fixtures and appliances. Additionally, the construction of a new leasing center and fitness center has been completed. The Company has already achieved anticipated post-rehab rents on renovated units by increasing rents by an average of 20 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.

JOINT VENTURES

During May 2007, the Company entered into a joint venture with the land owner of Hillsdale Garden Apartments, a 697-unit community located on a 30-acre land parcel in San Mateo, California. The leasehold interest in the community was acquired by the Company in September 2006 subject to a 40-year ground lease. The Company contributed its leasehold interest and the land owner contributed its fee interest in the land to the joint venture.  The Company holds an 81.5 percent interest in the joint venture and will receive a 3 percent management fee and a 5 percent redevelopment/construction management fee from the joint venture.  As general partner with majority control, the Company will continue to consolidate this community.

LIQUIDITY AND BALANCE SHEET

During the quarter, the Company sold 1,670,500 shares of its common stock for proceeds of $213.7 million, net of underwriting fees and expenses. The Company used the net proceeds from the stock offerings to pay down outstanding borrowings under the Company’s lines of credit and to fund acquisition and development projects.

During April 2007, the Company refinanced a mortgage loan for $35.7 million secured by the Tierra Vista community 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 swap settlement reduced the effective interest rate on the new Tierra Vista mortgage loan to 5.19%.
4
For the quarter ended June 30, 2007, the Company recorded approximately $13 million in other comprehensive income related to the $450 million in outstanding forward-starting swaps.

In June 2007, the Company originated a mortgage loan secured by the Cardiff by the Sea community purchased in April 2007 in the amount of $42.2 million. The loan has a fixed interest rate of 5.71% and matures in June 2017. The Company also assumed a mortgage loan in conjunction with the acquisition of The Cairns community in the amount of $12.0 million, with a fixed interest rate of 5.5%, which matures in May 2014.

In June 2007, the Company refinanced $18.6 million of debt secured by the Highridge community with a $44.8 million fixed interest rate loan of 6.05%, which matures in June 2017.

CONFERENCE CALL WITH MANAGEMENT
 
The Company will host an earnings conference call with management on Thursday, August 2, 2007, at 11:00 a.m. PDT – 2:00 p.m. EDT, which will be broadcast live via the Internet at www.essexpropertytrust.com, and accessible via phone by dialing (866) 761-0749 and entering the passcode 50879719.
 
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 second quarter earnings link. To access the replay digitally, dial (888) 286-8010 using the passcode, 69503069. 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.
 
CORPORATE 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 apartment communities located in highly desirable, supply-constrained markets. Essex currently has ownership interests in 136 apartment communities (27,808 units), and has 1,108 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 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 REITs 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.
5
The following table sets forth the Company’s calculation of FFO for the three months ended June 30, 2007 and 2006.
 
                                                                                    
Three Months Ended June 30,
Funds from operations
2007
2006
Net income available to common stockholders
$9,877
$22,023
Adjustments:
    
Depreciation and amortization
25,166
20,675
Gains not included in FFO (1)
(461)
(8,800)
Minority interests and co-investments (2)
1,915
3,254
Funds from operations
$36,497
$37,152

(1)  
For Q2 2007, the amount includes gains from Fund I of $0.3 million and depreciation add back for Peregrine Point of $0.2 million.
(2)  
For Q2 2007, the amount includes the following adjustments: (i) minority interest related to Operating Partnership units totaling $1.3 million, and (ii) depreciation add back for co-investments not recognized for GAAP totaling $0.6 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 anticipated timing of the completion and stabilization of property developments and redevelopments, the anticipated costs of property developments and redevelopments, the Company’s projected development projects in 2007, the Company’s portfolio being well positioned, and the anticipated closing of the Thomas Jefferson apartments transaction.  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 3 ex_99-2.htm EXHIBIT 99.2 ex_99-2.htm
E S S E X  P R O P E R T Y  T R U S T,  I N C.  
                  
                           
Consolidated Operating Results
Three Months Ended
  
Six Months Ended
(Dollars in thousands, except per share amounts)
June 30,
  
June 30,
 
 
 
2007
  
2006
  
2007
  
2006
 
 
 
 
 
  
 
 
  
 
 
  
 
 
Revenues:
                      
 
Rental and other property
$
                96,707
 
$
                83,717
 
$
              188,861
  
$
              165,951
 
Management and other fees from affiliates
  
                  1,354
  
 
                     830
  
 
                  2,394
  
 
                  1,654
     
 
                98,061
  
 
                84,547
  
 
              191,255
  
 
              167,605
                           
Expenses:
                      
 
Property operating, excluding real estate taxes
  
                23,932
    
                21,246
    
                47,052
    
                42,906
 
Real estate taxes
  
                  8,143
    
                  7,161
    
                15,855
    
                14,331
 
Depreciation and amortization
  
                25,166
    
                19,907
    
                46,843
    
                39,227
 
Interest
  
                20,491
    
                18,919
    
                38,757
    
                37,330
 
Amortization of deferred financing costs
  
                     678
    
                     497
    
                  1,355
    
                  1,192
 
General and administrative
  
                  6,008
    
                  4,980
    
                12,104
    
                  9,879
 
Other expenses
 
                         -
  
 
                     800
  
 
                         -
  
 
                  1,770
     
 
                84,418
  
 
                73,510
  
 
              161,966
  
 
              146,635
Earnings from operations
  
                13,643
    
                11,037
    
                29,289
    
                20,970
             
 
    
 
      
Interest and other income
  
                  2,865
    
                     648
 
  
                  5,047
    
                  3,042
Equity income (loss) co-investments
  
                     463
    
                    (374)
 
  
                  2,445
 
  
                    (816)
Minority interests
 
                 (5,069)
  
 
                 (4,555)
  
 
               (10,376)
  
 
                 (9,365)
Income before discontinued operations and
                      
 
income tax provision
  
                11,902
    
                  6,756
    
                26,405
    
                13,831
Income tax provision
  
                         -
  
 
                    (138)
  
 
                         -
  
 
                    (175)
Income before discontinued operations
 
                11,902
  
 
                  6,618
  
 
                26,405
  
 
                13,656
             
 
            
Income and gain from discontinued operations,
                      
 
net of minority interests
 
                     285
  
 
                15,894
  
 
                23,328
  
 
                19,178
Net income
  
                12,187
    
                22,512
    
                49,733
    
                32,834
Dividends to preferred stockholders
 
                 (2,310)
  
 
                    (489)
  
 
                 (4,553)
  
 
                    (977)
Net income available to common stockholders
$
                  9,877
  
$
                22,023
  
$
                45,180
  
$
                31,857
     
 
 
  
 
 
  
 
 
  
 
 
Net income per share - basic
$
0.40
  
$
0.96
  
$
1.89
  
$
1.39
     
 
 
  
 
 
  
 
 
  
 
 
Net income per share - diluted
$
0.39
  
$
0.95
  
$
1.83
  
$
1.38
     
 
 
  
 
 
  
 
 
  
 
 
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
  
Six Months Ended
Selected Line Item Detail
June 30,
  
June 30,   
(Dollars in thousands)
2007 
    
 
 2006
  
 
 2007
  
 
 2006
                           
Rental and other property
                      
 
Rental
$
           91,304
  
$
           78,995
  
$
        178,180
  
$
        156,649
 
Other property
  
             5,403
    
             4,722
    
           10,681
    
             9,302
   
Rental and other property
$
           96,707
  
$
           83,717
  
$
        188,861
  
$
        165,951
                           
Management and other fees from affiliates
                      
 
Management
$
                 806
  
$
                816
  
$
             1,587
  
$
             1,640
 
Development and redevelopment
  
                 209
    
                   14
    
                468
    
                  14
 
Promote interest from Fund I
  
                 339
    
                      -
    
                339
    
                      -
   
Management and other fees from affiliates
$
             1,354
  
$
                830
  
$
             2,394
  
$
             1,654
                           
General and administrative
                      
 
General and administrative
$
             8,653
  
$
             7,406
  
$
           17,435
  
$
          14,438
 
Allocated to property operating expenses - administrative
  
            (1,520)
    
           (1,374)
    
           (2,914)
    
           (2,636)
 
Capitalized to real estate
  
            (1,125)
    
           (1,052)
    
           (2,417)
    
           (1,923)
   
Net general and administrative
$
             6,008
  
$
             4,980
  
$
           12,104
  
$
             9,879
                           
Interest and other income (1)
                      
 
Interest income
$
             1,028
  
$
                256
  
$
             1,886
  
$
                570
 
Lease income, net
  
             1,837
    
                392
    
             3,161
    
                785
 
Gain from sale of marketable securities
  
                      -
    
                      -
    
                      -
    
             1,687
   
Interest and other income
$
             2,865
  
$
                648
  
$
             5,047
  
$
             3,042
                           
Equity income (loss) in co-investments
                      
 
Equity (loss) income in co-investments
$
                 159
  
$
               (374)
  
$
                   94
  
$
              (816)
 
Gain on sale of co-investment activities, net
  
                 304
    
                      -
    
             2,351
    
                      -
   
Equity income (loss) in co-investments
$
                 463
  
$
               (374)
  
$
             2,445
  
$
              (816)
                           
Minority interests
                      
 
Limited partners of Essex Portfolio, L.P.
$
             1,123
  
$
                664
  
$
             2,503
  
$
             1,439
 
Perpetual preferred distributions
  
             2,559
    
             2,559
    
             5,118
    
             5,119
 
Series Z and Z-1 incentive units
  
                 198
    
                151
    
                396
    
                302
 
Third party ownership interests
  
                 146
    
                115
    
                273
    
                364
 
Down REIT limited partners' distributions
  
             1,043
    
             1,066
    
             2,086
    
             2,141
   
Minority interests
$
             5,069
  
$
             4,555
  
$
           10,376
  
$
             9,365
                           
(1) In the Q1 2007 supplement $0.9 million of lease income was misclassified as interest income.  This was corrected by reclassifying the Q1 2007 amount  to lease income, and therefore has no effect on the amounts presented for the three and six months ended June 30, 2007.
                           
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
    
   Six Months Ended 
    
(Dollars in thousands, except share and per share amounts)
     June 30,
                             
    June 30,
                             
                                                                                                                
 
2007
  
 
  2006
% Change
 
  2007
    
 
  2006
  
% Change
                                 
Funds from operations
                            
Net income available to common stockholders
$
               9,877
  
$
22,023
    
$
           45,180
  
$
31,857
    
Adjustments:
                            
 
Depreciation and amortization
  
             25,166
    
20,675
      
           46,884
    
40,766
    
 
Gains not included in FFO (1)
  
                 (461)
    
            (8,800)
      
         (14,501)
    
        (11,862)
    
 
Minority interests and co-investments (2)
  
               1,915
    
3,254
      
             4,321
    
5,306
    
   
Funds from operations
$
             36,497
  
$
37,152
    
$
           81,884
  
$
66,067
    
   
FFO per share-diluted
$
1.32
  
$
1.45
-8.5%
  
$
3.01
  
$
2.58
  
16.8%
                                 
Components of the change in FFO
                            
Non-recurring items:
                            
Fund I - promote interest          
 
                 (339)
    
                     -
      
              (339)
    
                   -
    
Income generated from TRS activities, net of taxes and expenses
  
                 (143)
    
                     -
      
              (413)
    
                   -
    
Joint venture - promote interest and fees
  
                       -
    
            (8,221)
      
         (10,068)
    
(8,221)
    
Net gain on sale of marketable securities
  
                       -
    
                     -
      
                     -
    
(717)
    
Impairment of property
  
                       -
    
                 800
      
                     -
    
800
    
   
Funds from operations excluding non-recurring items
  
             36,015
    
            29,731
      
           71,064
    
          57,929
    
   
FFO excluding non-recurring items per share-diluted
$
1.31
  
$
1.16
12.8%
  
$
2.61
  
$
2.26
  
15.6%
                                 
Changes in recurring items:
                            
Same-property NOI
$
               4,072
          
$
             8,782
          
Non-same property NOI
  
               5,250
            
             8,458
          
Management fees from joint ventures
  
                  185
            
                401
          
Interest expense and amortization of deferred financing costs
  
              (1,753)
            
           (1,590)
          
Other items, net
  
              (1,470)
            
           (2,916)
          
     
$
6,284
          
$
13,135
          
                                 
Weighted average number of shares outstanding diluted (3)
  
27,592,976
    
25,697,237
      
27,192,463
    
25,628,728
    
                                 
                                 
(1)
 For Q2 2007, the amount includes gains from Fund I of $0.3 million and depreciation add back for Peregrine Point of $0.2 million.
    
(2)
 For Q2 2007, the amount includes the following adjustments: (i) minority interest related to Operating Partnership units totaling $1.3 million, and (ii) depreciation
 add back for co-investments not recognized for GAAP totaling $0.6 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)
          
       
June 30, 2007
    
December 31, 2006
               
Real Estate:
          
 
Land and land improvements
$
                   641,951
  
$
560,880
 
Buildings and improvements
  
                2,326,267
    
2,108,307
       
                2,968,218
    
2,669,187
 
Less:  accumulated depreciation
  
                  (508,681)
    
(465,015)
       
                2,459,537
    
2,204,172
Real estate - held for sale, net
  
                             -
    
41,221
Real estate under development
  
                   161,655
    
103,487
Investments
  
                     69,851
    
60,451
       
                2,691,043
    
2,409,331
Cash and cash equivalents
  
                     23,954
    
23,610
Marketable securities
  
                      3,815
    
                               -
Other assets
  
                     61,696
    
40,036
Deferred charges, net
  
                     12,967
    
12,863
   
Total assets
$
                2,793,475
  
$
2,485,840
               
Mortgage notes payable
$
                1,202,122
  
$
1,060,704
Mortgage notes payable - held for sale
  
                             -
    
32,850
Exchangeable bonds
  
                   225,000
    
225,000
Lines of credit
  
                     37,000
    
93,000
Other liabilities
  
                     82,809
    
77,852
Deferred gain
  
                      2,193
    
2,193
   
Total liabilities
  
                1,549,124
    
1,491,599
               
Minority interests
  
                   251,965
    
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
  
                   904,876
    
686,937
 
Distributions in excess of accumulated earnings
  
                    (97,500)
    
(97,457)
 
Accumulated other comprehensive income (loss)
  
                     14,096
    
                       (2,273)
   
Total stockholders' equity
  
                   846,474
    
                    612,209
               
   
Total liabilities and stockholders' equity
$
                2,793,475
  
$
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 - June 30, 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 
69%
  
$
1,006,601
  
6.3%
    
5.4
  
 
Tax exempt variable (1) 
13%
    
195,521
  
4.9%
    
23.6
  
   
Total mortgage notes payable
82%
    
1,202,122
  
6.1%
    
8.3
  
                           
Exchangeable bonds (2) 
15%
    
225,000
  
3.6%
        
                           
Line of credit - secured (3) 
3%
    
37,000
  
5.8%
        
   
Total debt 
100%
  
$
1,464,122
  
5.8%
        
                           
                 
Weighted
        
     
Scheduled principal payments (excludes lines of credit)
  
Average
        
                 
Interest Rate
      
       
2007
  
$
14,177
  
5.8%
        
       
2008
    
112,653
  
6.8%
        
       
2009
    
24,222
  
6.9%
        
       
2010
    
155,820
  
8.1%
        
       
2011
    
154,372
  
6.4%
        
       
Thereafter
    
965,878
  
5.2%
        
       
Total
  
$
1,427,122
  
5.8%
        
                           
                           
Capitalized interest for the six months ended June 30, 2007 was approximately $2.3 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%. 
          
                           
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 - June 30, 2007
            
(Dollars and shares in thousands, except per share amounts)
            
                 
                 
                 
Total debt
  
$
1,464,122
      
                 
                 
Common stock and potentially dilutive securities
            
 
Common stock outstanding
    
25,152
      
 
Limited partnership units (1)
    
2,487
      
 
Options-treasury method
    
235
      
Total common stock and potentially dilutive securities
    
27,874
  shares
    
Common stock price per share as of June 30, 2007
  
$
116.30
      
                 
Market value of common stock and potentially dilutive securities
  
$
3,241,746
      
                 
Perpetual preferred units/stock
  
$
304,500
      
                 
Total equity capitalization
  
$
3,546,246
      
                 
Total market capitalization
  
$
5,010,368
      
                 
Ratio of debt to total market capitalization
    
29.2%
      
                 
                 
                 
(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.          & #160;  
                                                      
                                                                                               
Property Operating Results - Quarter ended June 30, 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
  
$ 
46,027
  
$
43,592
  
5.6% 
  
$
14,862
  
$
13,660
  
8.8% 
  
$
13,944
  
$
12,471
  
11.8% 
  
$
2,686
  
$
2,550
  
5.3% 
  
$
77,519
  
$
72,273
  
7.3%
 
Non-same property revenue (2)
      
7,754
    
5,275
          
8,926
    
4,396
          
1,906
    
1,150
          
602
    
623
          
19,188
    
11,444
    
   
Total Revenues
  
$ 
53,781
  
$
48,867
        
$
23,788
  
$
18,056
        
$
15,850
  
$
13,621
        
$
3,288
  
$
3,173
        
$
96,707
  
$
83,717
    
                                                                                               
Property operating expenses:
                                                                                          
 
Same-property operating expenses
  
$ 
14,490
  
$
14,078
  
2.9% 
  
$
4,709
  
$
4,346
  
8.4% 
  
$
4,872
  
$
4,542
  
7.3% 
  
$
1,225
  
$
1,156
  
6.0%
    
$
25,296
  
$
24,122
  
4.9%
 
Non-same property operating expenses (2)
  
2,345
    
1,545
          
3,558
    
1,477
          
565
    
445
          
311
    
818
          
6,779
    
4,285
    
   
Total property operating expenses
  
$ 
16,835
  
$
15,623
        
$
8,267
  
$
5,823
        
$
5,437
  
$
4,987
        
$
1,536
  
$
1,974
        
$
32,075
  
$
28,407
    
                                                                                               
Net operating income:
                                                                                          
 
Same-property net operating income
  
$ 
31,537
  
$
29,514
  
6.9% 
  
$
10,153
  
$
9,314
  
9.0% 
  
$
9,072
  
$
7,929
  
14.4% 
  
$
1,461
  
$
1,394
  
4.8%
    
$
52,223
  
$
48,151
  
8.5%
 
Non-same property operating income (2)
  
5,409
    
3,730
          
5,368
    
2,919
          
1,341
    
705
          
291
    
(195)
          
12,409
    
7,159
    
   
Total net operating income
  
$ 
36,946
  
$
33,244
        
$
15,521
  
$
12,233
        
$
10,413
  
$
8,634
        
$
1,752
  
$
1,199
        
$
64,632
  
$
55,310
    
                                                                                               
Same-property operating margin
      
69%
    
68%
          
68%
    
68%
          
65%
    
64%
          
54%
    
55%
          
67%
    
67%
    
                                                                                               
Same-property turnover percentage
      
58%
    
54%
          
48%
    
52%
          
65%
    
63%
          
56%
    
57%
          
58%
    
56%
    
                                                                                               
Same-property concessions
  
$
  
225
  
$
153
        
$
47
  
$
24
        
$
13
  
$
17
        
$
13
  
$
27
        
$
298
  
$
221
    
                                                                                               
Average same-property concessions per turn (3)
  
$
  
144
  
$
105
        
$
116
  
$
56
        
$
19
  
$
24
        
$
79
  
$
161
        
$
105
  
$
80
    
                                                                                               
Net operating income percentage of total
      
57%
    
60%
          
24%
    
22%
          
16%
    
16%
          
3%
    
2%
          
100%
    
100%
    
                                                                                               
Loss to lease (4)
  
$
  
7,146
              
$
6,454
              
$
3,016
              
$
492
              
$
17,107
          
 
Loss to lease as a percentage
                                                                                          
 
of rental income
      
3.3%
                
6.6%
                
4.9%
                
5.8%
                
4.6%
          
                                                                                               
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
      
12,725
    
12,270
          
5,805
    
4,621
          
5,005
    
4,905
          
1,177
    
1,177
          
24,712
    
22,973
    
 
Joint Venture
      
480
    
312
          
2,101
    
2,005
          
515
    
515
          
           -
    
           -
          
3,096
    
2,832
    
 
Under Development (5)
      
743
    
424
          
238
    
           -
          
127
    
127
          
           -
    
           -
          
1,108
    
551
    
   
Total apartment units at end of period
  
13,948
    
13,006
          
8,144
    
6,626
          
5,647
    
5,547
          
1,177
    
1,177
          
28,916
    
26,356
    
                                                                                               
   
Percentage of total
      
48%
    
49%
          
28%
    
25%
          
20%
    
21%
          
4%
    
5%
          
100%
    
100%
    
                                                                                               
                                                                                               
Average same-property financial occupancy
  
95.4%
    
96.1%
          
97.0%
    
98.2%
          
96.6%
    
97.6%
          
95.4%
    
96.6%
          
95.9%
    
96.8%
    
                                                                                               
(1)
 Includes four apartment communities in Portland, OR, one community in Houston, TX, and other rental properties including commercial properties.  Included in second quarter 2007
 is $0.5 million for the elimination of earthquake insurance expense paid to a wholly owned captive insurance company.
(2)
 Includes properties which subsequent to April 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 June 30, 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.          & #160;     
                                                
                                                                                             
Property Operating Results - Six months ended June 30, 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
$
91,828
  
$
86,770
  
    5.8%  
  
$
29,233
  
$
26,851 
  
8.9%
  
 
  $
27,449
  
$
24,589
  
11.6%
  
$
5,325
  
$
5,022
  
6.0%
    
$
153,835
  
$
143,232
  
7.4%
 
Non-same property revenue (2)
  
13,916
    
10,460
            
16,423
    
8,649 
          
3,445
    
2,303
        
1,242
    
1,307
          
35,026
    
22,719
    
   
Total Revenues
$
105,744
  
$
97,230
          
$
45,656
  
$
35,500 
      
 
  $
30,894
  
$
26,892
      
$
6,567
  
$
6,329
        
$
188,861
  
$
165,951
    
                                                                                             
Property operating expenses:       
                                                                          
 
Same-property operating expenses
$
28,741
  
$
28,012
  
  2.6%  
  
$
9,190
  
$
8,734 
  
5.2%
  
 
  $
9,591
  
$
9,114
  
5.2%
  
$
2,461
  
$
2,302
  
6.9%
    
$
49,983
  
$
48,162
  
3.8%
 
Non-same property operating expenses (2)
4,186
    
3,129
            
6,304
    
3,006 
          
949
    
887
        
1,485
    
2,053
          
12,924
    
9,075
    
   
Total property operating expenses
$
32,927
  
$
31,141
          
$
15,494
  
$
11,740 
      
 
  $
10,540
  
$
10,001
      
$
3,946
  
$
4,355
        
$
62,907
  
$
57,237
    
                                                                                             
Net operating income:    
                                                                                
 
Same-property net operating income
$
63,087
  
$
58,758
  
  7.4%  
  
$
20,043
  
$
18,117 
  
10.6%
  
 
  $
17,858
  
$
15,475
  
15.4%
  
$
2,864
  
$
2,720
  
5.3%
    
$
103,852
  
$
95,070
  
9.2%
 
Non-same property operating income (2)
9,730
    
7,331
            
10,119
    
5,643 
          
2,496
    
1,416
        
(243)
    
(746)
          
22,102
    
13,644
    
   
Total net operating income
$
72,817
  
$
66,089
          
$
30,162
  
$
23,760 
      
 
  $
20,354
  
$
16,891
      
$
2,621
  
$
1,974
        
$
125,954
  
$
108,714
    
                                                                                             
                                                                                             
                                                                                             
Same-property operating margin
  
69%
    
68%
            
69%
    
67% 
          
65%
    
63%
        
54%
    
54%
          
68%
    
66%
    
                                                                                             
Same-property turnover percentage
  
52%
    
51%
            
49%
    
50% 
          
58%
    
56%
        
53%
    
56%
          
53%
    
52%
    
                                                                                             
Same-property concessions
$
460
  
$
261
          
$
99
  
$
54 
      
 
  $
35
  
$
74
      
$
31
  
$
55
        
$
625
  
$
444
    
                                                                                             
Average same-property concessions per turn (3)
$
165
  
$
94
          
$
122
  
$
64 
      
 
  $
27
  
$
60
      
$
100
  
$
167
        
$
120
  
$
86
    
                                                                                             
Average same-property financial occupancy
95.6%
    
96.2%
            
96.2%
    
97.4% 
          
96.2%
    
97.1%
        
95.2%
    
96.1%
          
95.8%
    
96.6%
    
                                                                                             
                                                                         
(1)
Includes four apartment communities in Portland, OR, one community in Houston, TX, and other rental properties including commercial properties.  Included in 2007 is $0.5 million for a property legal settlement, offset by the $1.0 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.
 
See Company's 10-Q for additional disclosures
S-7.1
 
E S S E X  P R O P E R T Y  T R U S T,   I N C.     
                              
                                                                       
Same-Property Revenue by County - Quarters ended June 30, 2007, June 30, 2006 and March 31, 2007
                
(Dollars in thousands)
                                                                                                    
                                                                                                                                                                                   
                                                                   
Average Property Rental Rates
      
   Property Revenue 
        
Property Revenue 
           
June 30,
  
June 30,
        
June 30,
  
June 30,
        
March 31,
  
Sequential
   
Region
  
Units
  
2007 
  
2006 
  
% Change
  
2007 
  
2006 
  
% Change
  
2007 
  
% Change
                                                       
Southern California
                                                  
 
Ventura County
  
2,844
  
$
1,394
  
$
1,317
  
5.8%
    
$
11,977
  
$
11,424
  
4.8%
    
$
11,851
  
1.1%
 
Los Angeles County
  
2,754
    
1,672
    
1,568
  
6.6%
      
14,497
    
13,506
  
7.3%
      
14,475
  
0.2%
 
Orange County
  
2,037
    
1,513
    
1,426
  
6.1%
      
9,318
    
8,907
  
4.6%
      
9,115
  
2.2%
 
San Diego County
  
2,616
    
1,051
    
1,014
  
3.6%
      
8,307
    
7,999
  
3.9%
      
8,423
  
-1.4%
 
Santa Barbara County
  
239
    
1,702
    
1,477
  
15.2%
      
1,238
    
1,075
  
15.2%
      
1,229
  
0.7%
 
Riverside County
  
276
    
809
    
817
  
-1.0%
      
690
    
681
  
1.3%
      
708
  
-2.5%
       
10,766
    
1,396
    
1,319
  
5.8%
      
46,027
    
43,592
  
5.6%
      
45,801
  
0.5%
                                                       
Northern California
                                                  
 
San Francisco MSA
  
175
    
            1,678
    
            1,516
  
10.7%
      
876
    
806
  
8.7%
      
858
  
2.1%
 
Santa Clara County
  
1,870
    
            1,506
    
            1,344
  
12.1%
      
8,584
    
7,736
  
11.0%
      
8,401
  
2.2%
 
Alameda County
  
200
    
            1,225
    
            1,107
  
10.7%
      
740
    
699
  
5.9%
      
734
  
0.8%
 
Contra Costa County
  
1,070
    
            1,445
    
            1,360
  
6.3%
      
4,662
    
4,419
  
5.5%
      
4,378
  
6.5%
       
3,315
    
            1,479
    
            1,344
  
10.0%
      
14,862
    
13,660
  
8.8%
      
14,371
  
3.4%
                                                       
Seattle Metro
  
4,452
    
              994
    
               881
  
12.8%
      
13,944
    
12,471
  
11.8%
      
13,505
  
3.2%
                                                       
Other real estate assets
  
1,177
    
              742
    
               690
  
7.5%
      
2,686
    
2,550
  
5.3%
      
2,639
  
1.8%
                                                       
                                                       
Total Same-Property revenue
19,710
  
$
1,280
  
$
1,187
  
7.9%
    
$
77,519
  
$
72,273
  
7.3%
    
$
76,316
  
1.6%
                                                       
 
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.
                              
                                             
Same-Property Revenue by County - Six months ended June 30, 2007 and 2006
                      
(Dollars in thousands)
                                        
                                                                                 
           
Average Property Rental Rates
      
Property Revenue
        
   
Region
  
Units
  
   YTD 2007 
  
   YTD 2006 
  
% Change
  
YTD 2007 
  
YTD 2006 
  
% Change
                                             
Southern California
                                        
 
Ventura County
  
2,844
  
$
1,386
  
$
1,308
  
6.0%
    
$
23,828
  
$
22,726
  
4.8%
  
 
Los Angeles County
  
2,754
    
1,665
    
1,556
  
7.0%
      
28,972
    
27,014
  
7.2%
  
 
Orange County
  
2,037
    
1,504
    
1,412
  
6.5%
      
18,433
    
17,616
  
4.6%
  
 
San Diego County
  
2,616
    
1,049
    
1,008
  
4.1%
      
16,730
    
15,961
  
4.8%
  
 
Santa Barbara County
  
239
    
1,686
    
1,441
  
17.0%
      
2,467
    
2,088
  
18.2%
  
 
Riverside County
  
276
    
812
    
809
  
0.4%
      
1,398
    
1,365
  
2.4%
  
       
10,766
    
1,390
    
1,309
  
6.2%
      
91,828
    
86,770
  
5.8%
  
                                             
Northern California
                                        
 
San Francisco MSA
  
175
    
            1,657
    
            1,500
  
10.5%
      
1,734
    
1,598
  
8.5%
  
 
Santa Clara County
  
1,870
    
            1,492
    
            1,330
  
12.2%
      
16,985
    
15,176
  
11.9%
  
 
Alameda County
  
200
    
            1,213
    
            1,099
  
10.4%
      
1,474
    
1,372
  
7.4%
  
 
Contra Costa County
  
1,070
    
            1,436
    
            1,348
  
6.5%
      
9,040
    
8,705
  
3.8%
  
       
3,315
    
            1,466
    
            1,331
  
10.1%
      
29,233
    
26,851
  
8.9%
  
                                             
Seattle Metro
  
4,452
    
              981
    
               868
  
13.0%
      
27,449
    
24,589
  
11.6%
  
                                             
Other real estate assets
  
1,177
    
              736
    
               683
  
7.8%
      
5,325
    
5,022
  
6.0%
  
                                             
                                             
Total Same-Property revenue
  
19,710
  
$
1,271
  
$
1,175
  
8.2%
    
$
153,835
  
$
143,232
  
7.4%
  
                                             
 
See Company's 10-Q for additional disclosures
S-8.1
 
E S S E X  P R O P E R T Y  T R U S T,   I N C.
            
                                         
Development Pipeline - June 30, 2007
                        
(Dollars in millions)
                            
                                         
                                         
                                                                     
 
Estimated Units
 
Total Incurred to Date
Estimated Remaining
Costs
 
Estimated Total Cost
 
Construction Start
 
Construction Complete
 
Initial 
Occupancy   
 
Stabilized Operations
                                            
Development Projects
                                  
 
Project Name
  
Location
                                  
                                         
 
Northwest Gateway
Los Angeles, CA
    
 275
  
$                   40.1
  
 $             31.0
  
 $            71.1
  
Jan-06
  
Apr-08
  
Feb-08
  
Oct-08
 
100 Grand
  
Oakland, CA
    
            238
  
               20.9
  
                75.3
  
                96.2
  
Dec-06
  
Dec-08
  
Dec-08
  
May-09
 
City Centre
  
Moorpark, CA
    
            200
  
                 6.8
  
                45.0
  
                51.8
  
Sep-07
  
Oct-09
  
Aug-09
  
Apr-10
                      Consolidated - Development Projects  
            713
  
                67.8
  
              151.3
  
              219.1
                
                                         
Development Projects - Fund II
                                  
 
Project Name
  
Location
                                  
 
Lake Union
  
Seattle, WA
    
            127
  
                15.7
  
                19.7
  
                35.4
  
Aug-06
  
Apr-08
  
Mar-08
  
Jul-08
 
Studio Gateway
  
Studio City, CA
    
            149
  
                23.6
  
                37.0
  
                60.6
  
Jun-07
  
Jun-09
  
Mar-09
  
Aug-09
 
Topanga Canyon
  
Chatsworth, CA
    
            119
  
                10.3
  
                29.1
  
                39.4
  
Jun-07
  
May-09
  
May-09
  
Sep-09
                                 Fund II - Development Projects  
            395
  
                49.6
  
                85.8
  
              135.4
                
                                     Total - Development Projects  
         1,108
  
              117.4
  
              237.1
  
              354.5
                
                                         
Predevelopment Projects
                                  
                                             
 
Project Name
  
Location
                                  
 
4th and University (1)
Berkeley, CA
    
              -
  
                   -
  
                   -
  
                   -
  
Nov-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  
         1,936
  
                86.9
  
              518.2
  
              605.1
                
                                         
Other Projects (TRS)
                                      
                                         
 
Project Name
  
Location
                                  
 
Peregrine Pointe (4)
Issaquah, WA
    
                2
  
                   -
  
                   -
  
                   -
  
                   -
  
                  -
  
                   -
  
                    -
 
Archer
  
San Jose, CA
    
              45
  
                   -
  
                   -
  
                   -
  
Nov-07
  
Mar-09
  
Mar-09
  
Jun-09
 
View Pointe
  
Newcastle, WA
    
              24
  
                   -
  
                   -
  
                   -
  
Sep-07
  
Nov-08
  
Nov-08
  
Mar-09
           
              71
  
                 7.0
  
                20.4
  
                27.4
                
                                         
                                         
                    Grand Total - Development Pipeline  
         3,115
  
 $                 211.3
  
 $                775.7
  
 $                987.0
                
                                         
(1)
Properties in contract to be purchased by the Company with non-refundable deposits or option 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 64 of 66 units have been sold as of June 30, 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 - June 30, 2007      
                          
(Dollars in thousands)    
                              
                                         
                                                                                                                                
         
Total
  
Estimated
  
Estimated
              
Q2 2007
  
Units completed
  
         
Incurred
  
Remaining
  
Total
  
Redevelopment
NOI
  
NOI
  
Rehab
  
and available
  
 
Region/Project Name
  
Units
  
To Date
  
Cost
  
Cost
  
Start Date
  
Q2 2007
  
Q2 2006
  
Vacancy Loss
  
for rent
  
                                         
 
Approved - Redevelopment Projects
                                      
 
Woodland/Foothill Commons, Bellevue, WA (1)
  
            596
  
 $             362
  
 $         30,139
  
 $           30,501
  
Apr-06
                  
 
Marina Cove, Santa Clara, CA
  
            292
  
                    70
  
               9,788
  
                9,858
  
Jun-07
                  
     
            888
  
                 432
  
            39,927
  
              40,359
                      
 
Active - Redevelopment Projects
                                      
 
Southern California
                                      
 
Mira Monte, Mira Mesa, CA  (2)
  
            355
  
              5,680
  
                  350
  
                6,030
  
Sep-04
  
 $            945
  
 $          822
  
 $                         7
  
                            329
  
 
Avondale at Warner Center, Woodland Hills, CA
  
            446
  
             10,198
  
               2,272
  
               12,470
  
Oct-04
  
              1,372
  
             1,140
  
                          40
  
                             174
  
 
Pathways, Long Beach, CA
  
            296
  
              2,500
  
                8,221
  
                10,721
  
Jun-06
  
                889
  
              872
  
                          90
  
                              27
  
 
Highridge, Rancho Palos Verdes, CA
  
            255
  
                  138
  
             15,925
  
               16,063
  
Jan-07
  
                923
  
              896
  
                             6
  
                                  1
  
     
          1,352
  
             18,516
  
            26,768
  
              45,284
      
              4,129
  
           3,730
  
                         143
  
                             531
  
 
Northern California
                                      
 
The Montclaire - Phase I - III, Sunnyvale, CA
  
            390
  
               3,801
  
              11,305
  
                15,106
  
Aug-06
  
                995
  
              994
  
                          85
  
                              92
  
 
Boulevard (Treetops), Fremont, CA
  
             172
  
              2,570
  
                5,710
  
                8,280
  
Sep-06
  
                 419
  
              367
  
                              -
  
                                 5
  
 
Bridgeport (Summerhill Commons), Newark, CA
  
             184
  
              3,376
  
                 1,210
  
                4,586
  
Oct-06
  
                 501
  
               417
  
                              -
  
                                  -
  
 
Wimbledon Woods, Hayward, CA
  
            560
  
              4,060
  
               5,290
  
                9,350
  
Oct-06
  
               1,251
  
              1,141
  
                              -
  
                                 3
  
     
          1,306
  
            13,807
  
             23,515
  
              37,322
      
              3,166
  
           2,919
  
                          85
  
                             100
  
 
Seattle Metro
                                      
 
Palisades - Phase I and II, Bellevue, WA (2)
  
             192
  
              6,090
  
                   861
  
                 6,951
  
Sep-04
  
                455
  
              259
  
                              -
  
                             192
  
 
Sammamish View, Bellevue, WA
  
             153
  
              3,536
  
                  282
  
                 3,818
  
Dec-05
  
                330
  
              289
  
                          79
  
                             139
  
 
Bridle Trails, Kirkland, WA (3)
  
             108
  
              4,427
  
                  650
  
                5,077
  
May-05
  
                268
  
               157
  
                              -
  
                             108
  
     
            453
  
            14,053
  
                1,793
  
               15,846
      
              1,053
  
              705
  
                          79
  
                            439
  
                                         
 
Total Active - Redevelopment Projects
  
            3,111
  
           46,376
  
            52,076
  
              98,452
      
             8,348
  
           7,354
  
                        307
  
                         1,070
  
                                         
 
Consolidated - Redevelopment Projects
  
         3,999
  
           46,808
  
            92,003
  
              138,811
      
             8,348
  
           7,354
  
                        307
  
                         1,070
  
                                         
 
Redevelopment Projects - Fund II
                                      
 
Regency Tower - Phase I - II, Oakland, CA
  
             178
  
              2,324
  
                2,152
  
                4,476
  
Nov-05
  
                350
  
              253
  
                           17
  
                               91
  
 
The Renaissance, Los Angeles, CA (4)
  
             168
  
               1,869
  
                 3,131
  
                5,000
  
Oct-06
  
                475
  
                    -
  
                          86
  
                              54
  
 
Fund II - Redevelopment Projects
  
            346
  
               4,193
  
               5,283
  
                9,476
      
                825
  
              253
  
                         103
  
                             145
  
                                         
 
Grand Total - Redevelopment Pipeline
  
         4,345
  
 $         51,001
  
 $        97,286
  
 $        148,287
      
 $          9,173
  
 $       7,607
  
 $                     410
  
                          1,215
  
                                         
(1)
 The community was originally approved as a redevelopment project during 2006 and then the scope of the project was increased and approved in Q2 2007.  Operations were not destabilized as
 of Q2 2007, and therefore the community is classified in Same-Property operations.
(2)
 This community was restabilized at the end of the first quarter of 2007, and will be included in Same-Property operations starting the second quarter of 2008.    
  
(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 Q2 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
   
For the six
Investments - June 30, 2007
  
Essex
  
Total Fund
      
Debt   
  
months ended
months ended
(Dollars in thousands)
  
Book
  
Original
            
Interest
Maturity
  
6/30/2007
  
6/30/2007
        Value         Cost    Units  
 Amount
  
Type
Rate
Date
  
NOI
  
NOI
                                                                                                                    
Joint Ventures
                                
                                     
 
  Essex Apartment Value Fund II, L.P. (Fund II)
                                
   
Alderwood Park, Newark, CA
          
       96
  
        7,112
  
Fixed
5.56%
Jun-2015
        
   
Carlmont Woods, Belmont, CA
          
     195
  
      13,021
  
Fixed
4.89%
Dec-2013
        
   
Davey Glen, Belmont, CA
          
       69
  
        6,654
  
Fixed
6.13%
Aug-2016
        
   
Echo Ridge, Snoqualmie, WA
          
     120
  
      13,356
  
Fixed
5.01%
Sep-2014
        
   
Enclave, San Jose, CA
          
     637
  
      21,279
  
Fixed
7.26%
Jan-2018
        
   
Enclave, San Jose, CA
          
 -
  
      60,000
  
Variable
4.69%
Dec-2029
        
   
Harbor Cove, Foster City, CA
          
     400
  
      35,111
  
Fixed
4.89%
Dec-2013
        
   
Morning Run, Monroe, WA
          
     222
  
      13,806
  
Fixed
5.10%
Oct-2014
        
   
Parcwood, Corona, CA
          
     312
  
      25,564
  
Fixed
4.89%
Dec-2013
        
   
Regency Tower, Oakland, CA
          
     178
  
      11,138
  
Fixed
5.16%
Mar-2014
        
   
Renaissance, Los Angeles, CA
          
     168
  
      23,341
  
Fixed
6.51%
May-2011
        
   
Tower @ 801, Seattle, WA
          
     173
  
      19,464
  
Fixed
4.91%
Aug-2014
        
   
    Total - Operating Communities
          
  2,570
  
    249,846
          
              6,121
  
               12,208
                                   
                        
 
Fund II - Development Pipeline (1)
                                
   
Lake Union, Seattle, WA
          
     127
  
        8,834
  
Variable
LIBOR+1.50%
Jan-2010
        
   
Studio Gateway, Studio City, CA
          
     149
  
        8,359
  
Variable
LIBOR+1.50%
Apr-2010
        
   
Topanga Canyon, Chatsworth, CA
          
     119
  
           146
  
Variable
LIBOR+1.50%
Jun-2010
        
   
    Total - Development Communities
          
     395
  
      17,339
                
                                     
   
Line of credit
              
                -
  
Variable
 LIBOR+0.875%
Jun-2007
        
   
    Total - Fund II
  
      58,578
  
       489,257
  
  2,965
  
    267,185
                
                                     
   
Capitalized costs
  
           720
                            
       
      59,298
                            
 
  Waterstone at Fremont (formerly
                                
   
known as Mountain Vista) (2)
  
        1,182
                            
                                     
 
  Other (3)
  
        9,371
                            
                                     
     
$
      69,851
                            
                                     
 
(1)
 See S-9 for more detail about the Fund II Development Pipeline.    
                  
 
(2)
 Company recorded $0.2 milion in preferred interest payments in Q2 2007, 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 $8.9 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 - June 30, 2007
                          
(Dollars in thousands)
                            
                               
                               
The Company enters into co-investment transactions with third party developers, owners and investors of apartment communities.  In accordance with GAAP, 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 June 30, 2007
  
        June 30, 2007    
   
Investment in
  
Related
  
Minority
    
Down-REIT
      
Operating
    
   
Real Estate
  
Debt
  
Interest
    
Units (1)
  
Revenue
  
Expenses
  
NOI
                               
Down-REITs:
                            
     Anchor Village
 $        11,162
  
 $        10,750
  
 $          2,544
    
         117,154
  
 $             736
  
 $             297
  
 $             439
     Barkley Apartments
             9,406
  
             4,935
  
             2,369
    
           80,302
  
                 614
  
                 227
  
                 387
     Brookside Oaks
           33,851
  
           14,238
  
             3,974
    
           99,073
  
                 673
  
                 208
  
                 465
     Capri at Sunny Hills
           16,865
  
           11,599
  
             4,504
    
         185,334
  
                 614
  
                 152
  
                 462
     Brentwood Apartments
           13,452
  
             9,417
  
             3,951
    
           90,591
  
                 611
  
                 162
  
                 449
     Hidden Valley (Parker Ranch)
           44,793
  
           33,396
  
             6,089
    
           62,647
  
             1,352
  
                 383
  
                 969
     Highridge Apartments
           20,481
  
           44,807
  
             6,036
    
         315,061
  
             1,320
  
                 397
  
                 923
     Montejo Apartments
             9,097
  
             5,856
  
             1,596
    
           38,038
  
                 467
  
                 124
  
                 343
     Treehouse Apartments
           12,010
  
             7,885
  
             3,299
    
           75,700
  
                 614
  
                 163
  
                 451
     Valley Park Apartments
           16,228
  
             9,988
  
             1,461
    
           60,892
  
                 698
  
                 164
  
                 534
     Villa Angelina Apartments
           21,021
  
           13,506
  
             2,886
    
           59,839
  
                 990
  
                 240
  
                 750
                               
   
         208,366
  
         166,377
  
           38,709
    
     1,184,631
  
             8,689
  
             2,517
  
             6,172
                               
Other Co-investments:
                            
     Derian Office Building (2)
           16,515
  
                      -
  
                      -
    
n/a
  
                 460
  
                 121
  
                 339
     Hillsdale Garden Apartments (3)
         116,568
  
                      -
  
           22,216
    
n/a
  
             2,781
  
             1,410
  
             1,371
     Mirabella (4)
           27,155
  
                      -
  
                      -
    
n/a
  
             1,265
  
                 303
  
                 962
                               
(1)
 Represents the number of Down-REIT units that are currently outstanding.  Generally, Down-REIT units can be redeemed at the holder's election for cash
 equal to the current price of Essex's common stock.
(2)
 Essex has mortgage loans to the owners of this property with an aggregate principal balance in excess of the book value of the property as of June 30, 2007.
(3)
 During the second quarter of 2007, the Company entered into a joint venture partnership with a third-party, and the Company contributed the improvements
 to the property for a 81.5% interest and the joint venture partner contributed the title to the land for an 18.5% interest in the partnership.
(4)
 The Company has an agreement to distribute to the general contractor of Mirabella, 20% of the property’s cash flow after the Company receives a 9%
 preferred return on its investment from operating cash flow and a 12% preferred return on its investment from capital transactions cash flow.  To date no 
 distribution has been made to the general contractor under this agreement.  
 
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 - June 30, 2007
          
(Dollars in thousands)
                                  
                                       
                                       
Income from Discontinued Operations
                            
                                       
For the three and six months ended June 30, 2007, the Company sold condominium units at Peregrine Point, and during the three months ended March 31, 2007, the Company sold the City Heights property which was consolidated in accordance with FIN 46R.  For the three months ended June 30, 2006, the Company recorded a gain, a promote interest and subordination fees from the sale of the Vista Pointe joint venture property, and for the three months ended March 31, 2006 the Company sold the Vista Capri East, Casa Tierra apartment communities, and the Diamond Valley Recreational RV park.
                                       
               
Three Months Ended
    
Six Months Ended
    
               
  June 30,   
    
  June 30,   
    
               
   2007
    
2006
  
 $
 2007
  
 $
2006
    
   
Rental revenues
        
 $
                       -
  
 $
               2,939
    
             1,355
    
             5,968
    
   
Interest and other income
    
                       -
    
                       6
    
                 290
    
                     6
    
   
     Revenues
          
                       -
    
               2,945
    
             1,645
    
             5,974
    
                                       
   
Property operating expenses
    
                       -
    
             (1,083)
    
               (535)
    
            (2,282)
    
   
Interest expense
          
                       -
    
                 (579)
    
               (416)
    
            (1,158)
    
   
Depreciation and amortization
    
                       -
    
                 (768)
    
                 (41)
    
            (1,539)
    
   
Minority interests
          
                       -
    
                 (222)
    
                 (57)
    
               (313)
    
   
     Expenses
          
                       -
    
             (2,652)
    
            (1,049)
    
            (5,292)
    
                                       
   
Gain on sale (1)
          
                 303
    
               8,800
    
                 916
    
           11,862
    
   
Gain on sale - City Heights
    
                       -
    
                        -
    
           78,306
    
                      -
    
   
Equity income co-investments
    
                       -
    
                  119
    
                      -
    
                 238
    
   
Promote interest and subordination fees
                       -
    
               8,221
    
           10,290
    
             8,221
    
   
Minority interests - OP units
    
                  (18)
    
             (1,539)
    
            (2,156)
    
            (1,825)
    
   
Minority interests - City Heights
    
                       -
    
                        -
    
         (64,624)
    
                      -
    
   
      Net gain on sale of real estate
    
                 285
    
             15,601
    
           22,732
    
           18,496
    
                         
 $
  
 $
    
   
Income from discontinued operations
 $
                 285
  
 $
             15,894
    
           23,328
    
           19,178
    
                                       
Common Stock Equivalents                            
                                       
               
Q2 2007
    
Actual
    
YTD 2007
          
               
Weighted Avg.
  
As of 6/30/07
    
Weighted Avg.
        
   
Common Shares
          
    24,493,816
    
     25,152,364
    
   23,966,049
          
   
Stock Options
          
         235,013
    
          235,013
    
         269,168
          
   
Exchangeable Bonds
          
         375,192
    
          244,524
    
         452,788
          
   
     Weighted Avg. Shares Diluted - EPS
    
    25,104,021
    
     25,631,901
    
   24,688,005
          
   
Vested Series Z Incentive Units
    
         213,205
    
          213,205
    
         213,046
          
   
Operating Limited Partnership Units
    
      2,275,750
    
       2,273,992
    
     2,291,412
          
   
     Weighted Avg. Shares Diluted - FFO
    
    27,592,976
    
     28,119,098
    
   27,192,463
          
                                       
(1) For 2007, amount includes gain on sale of Peregrine Point condominum units. The gain on sale and related minority interest recorded in Q1 2007 for City Heights is presented separately.
 
See Company's 10-Q for additional disclosures
S-13
 

















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