Maryland (Essex Property Trust, Inc.) California (Essex Portfolio, L.P.) | 77-0369576 (Essex Property Trust, Inc.) 77-0369575 (Essex Portfolio, L.P.) | |
(State or Other Jurisdiction of Incorporation or Organization) | (I.R.S. Employer Identification Number) |
Essex Property Trust, Inc. Yes x No o | Essex Portfolio, L.P. Yes x No o |
Essex Property Trust, Inc. Yes x No o | Essex Portfolio, L.P. Yes x No o |
Large accelerated filer x | Accelerated filer o | Non-accelerated filer o (Do not check if a smaller reporting company) | Smaller reporting company o |
Large accelerated filer o | Accelerated filer o | Non-accelerated filer x (Do not check if a smaller reporting company) | Smaller reporting company o |
(Do not check if a smaller reporting company) |
Essex Property Trust, Inc. Yes o No x | Essex Portfolio, L.P. Yes o No x |
• | enhances investors' understanding of the Company and the Operating Partnership by enabling investors to view the business as a whole in the same manner as management views and operates the business; |
• | eliminates duplicative disclosure and provides a more streamlined and readable presentation since a substantial portion of the disclosure applies to both the Company and the Operating Partnership; and |
• | creates time and cost efficiencies through the preparation of one combined report instead of two separate reports. |
PART I. FINANCIAL INFORMATION | Page No. | |
Item 1. | Condensed Consolidated Financial Statements of Essex Property Trust, Inc. (Unaudited) | |
Condensed Consolidated Financial Statements of Essex Portfolio L.P. (Unaudited) | ||
Item 2. | ||
Item 3. | ||
Item 4. | ||
PART II. OTHER INFORMATION | ||
Item 1. | ||
Item 1A. | ||
Item 2. | ||
Item 5. | ||
Item 6. | ||
ASSETS | March 31, 2016 | December 31, 2015 | |||||
Real estate: | |||||||
Rental properties: | |||||||
Land and land improvements | $ | 2,573,923 | $ | 2,522,842 | |||
Buildings and improvements | 10,052,754 | 9,808,627 | |||||
12,626,677 | 12,331,469 | ||||||
Less accumulated depreciation | (2,051,802 | ) | (1,949,892 | ) | |||
10,574,875 | 10,381,577 | ||||||
Real estate under development | 145,711 | 242,326 | |||||
Co-investments | 1,069,684 | 1,036,047 | |||||
Real estate held for sale, net | — | 26,879 | |||||
11,790,270 | 11,686,829 | ||||||
Cash and cash equivalents-unrestricted | 48,164 | 29,683 | |||||
Cash and cash equivalents-restricted | 32,319 | 93,372 | |||||
Marketable securities | 138,597 | 137,485 | |||||
Notes and other receivables | 18,198 | 19,285 | |||||
Prepaid expenses and other assets | 39,936 | 38,437 | |||||
Total assets | $ | 12,067,484 | $ | 12,005,091 | |||
LIABILITIES AND EQUITY | |||||||
Unsecured debt, net | $ | 2,936,463 | $ | 3,088,680 | |||
Mortgage notes payable, net | 2,252,057 | 2,215,077 | |||||
Lines of credit, net | 164,282 | 11,707 | |||||
Accounts payable and accrued liabilities | 170,444 | 131,415 | |||||
Construction payable | 36,822 | 40,953 | |||||
Dividends payable | 111,409 | 100,266 | |||||
Other liabilities | 34,814 | 34,518 | |||||
Cumulative redeemable 7.125% Series H preferred stock at liquidation value | 73,750 | — | |||||
Total liabilities | 5,780,041 | 5,622,616 | |||||
Commitments and contingencies | |||||||
Redeemable noncontrolling interest | 46,203 | 45,452 | |||||
Equity: | |||||||
Common stock; $0.0001 par value, 656,020,000 shares authorized; 65,426,726 and 65,379,359 shares issued and outstanding, respectively | 6 | 6 | |||||
Cumulative redeemable 7.125% Series H preferred stock at liquidation value | — | 73,750 | |||||
Additional paid-in capital | 7,010,181 | 7,003,317 | |||||
Distributions in excess of accumulated earnings | (824,046 | ) | (797,329 | ) | |||
Accumulated other comprehensive loss, net | (44,149 | ) | (42,011 | ) | |||
Total stockholders' equity | 6,141,992 | 6,237,733 | |||||
Noncontrolling interest | 99,248 | 99,290 | |||||
Total equity | 6,241,240 | 6,337,023 | |||||
Total liabilities and equity | $ | 12,067,484 | $ | 12,005,091 |
Three Months Ended March 31, | |||||||
2016 | 2015 | ||||||
Revenues: | |||||||
Rental and other property | $ | 312,178 | $ | 280,229 | |||
Management and other fees from affiliates | 2,024 | 2,644 | |||||
314,202 | 282,873 | ||||||
Expenses: | |||||||
Property operating, excluding real estate taxes | 60,071 | 55,618 | |||||
Real estate taxes | 34,419 | 31,553 | |||||
Depreciation and amortization | 109,707 | 106,907 | |||||
General and administrative | 9,182 | 10,545 | |||||
Merger and integration expenses | — | 2,388 | |||||
Acquisition and investment related costs | 828 | 547 | |||||
214,207 | 207,558 | ||||||
Earnings from operations | 99,995 | 75,315 | |||||
Interest expense | (52,466 | ) | (47,546 | ) | |||
Total return swap income | 3,123 | — | |||||
Interest and other income | 5,208 | 4,199 | |||||
Equity income in co-investments | 15,068 | 4,311 | |||||
Gain on sale of real estate and land | 20,258 | 7,112 | |||||
Deferred tax expense on gain on sale of real estate and land | (4,279 | ) | — | ||||
Gain on remeasurement of co-investment | — | 21,362 | |||||
Net income | 86,907 | 64,753 | |||||
Net income attributable to noncontrolling interest | (5,071 | ) | (4,076 | ) | |||
Net income attributable to controlling interest | 81,836 | 60,677 | |||||
Dividends to preferred stockholders | (1,314 | ) | (1,314 | ) | |||
Excess of redemption value of preferred stock over the carrying value | (2,541 | ) | — | ||||
Net income available to common stockholders | $ | 77,981 | $ | 59,363 | |||
Comprehensive income | $ | 84,696 | $ | 65,352 | |||
Comprehensive income attributable to noncontrolling interest | (4,998 | ) | (4,091 | ) | |||
Comprehensive income attributable to controlling interest | $ | 79,698 | $ | 61,261 | |||
Per share data: | |||||||
Basic: | |||||||
Net income available to common stockholders | $ | 1.19 | $ | 0.92 | |||
Weighted average number of shares outstanding during the period | 65,405,654 | 64,185,455 | |||||
Diluted: | |||||||
Net income available to common stockholders | $ | 1.19 | $ | 0.92 | |||
Weighted average number of shares outstanding during the period | 65,557,639 | 64,394,680 | |||||
Dividend per common share | $ | 1.60 | $ | 1.44 |
Series H Preferred stock | Common stock | Additional paid-in capital | Distributions in excess of accumulated earnings | Accumulated other comprehensive loss, net | Noncontrolling Interest | ||||||||||||||||||||||||||||
Shares | Amount | Shares | Amount | Total | |||||||||||||||||||||||||||||
Balances at December 31, 2015 | 2,950 | $ | 73,750 | 65,379 | $ | 6 | $ | 7,003,317 | $ | (797,329 | ) | $ | (42,011 | ) | $ | 99,290 | $ | 6,337,023 | |||||||||||||||
Net income | — | — | — | — | — | 81,836 | — | 5,071 | 86,907 | ||||||||||||||||||||||||
Change in fair value of derivatives and amortization of swap settlements | — | — | — | — | — | — | (2,445 | ) | (83 | ) | (2,528 | ) | |||||||||||||||||||||
Change in fair value of marketable securities | — | — | — | — | — | — | 307 | 10 | 317 | ||||||||||||||||||||||||
Issuance of common stock under: | |||||||||||||||||||||||||||||||||
Stock option and restricted stock plans, net | — | — | 41 | — | 5,232 | — | — | — | 5,232 | ||||||||||||||||||||||||
Sale of common stock, net | — | — | — | — | (134 | ) | — | — | — | (134 | ) | ||||||||||||||||||||||
Equity based compensation costs | — | — | — | — | 895 | — | — | 595 | 1,490 | ||||||||||||||||||||||||
Reclassification of Series H preferred stock | (2,950 | ) | (73,750 | ) | — | — | 2,541 | (2,541 | ) | — | — | (73,750 | ) | ||||||||||||||||||||
Changes in the redemption value of redeemable noncontrolling interest | — | — | — | — | (841 | ) | — | — | 90 | (751 | ) | ||||||||||||||||||||||
Distributions to noncontrolling interest | — | — | — | — | — | — | — | (5,465 | ) | (5,465 | ) | ||||||||||||||||||||||
Redemptions of noncontrolling interest | — | — | 7 | — | (829 | ) | — | — | (260 | ) | (1,089 | ) | |||||||||||||||||||||
Common and preferred stock dividends | — | — | — | — | — | (106,012 | ) | — | — | (106,012 | ) | ||||||||||||||||||||||
Balances at March 31, 2016 | — | $ | — | 65,427 | $ | 6 | $ | 7,010,181 | $ | (824,046 | ) | $ | (44,149 | ) | $ | 99,248 | $ | 6,241,240 |
Three Months Ended March 31, | |||||||
2016 | 2015 | ||||||
Cash flows from operating activities: | |||||||
Net income | $ | 86,907 | $ | 64,753 | |||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||
Depreciation and amortization | 109,707 | 106,907 | |||||
Amortization of discount on marketable securities and other investments | (3,756 | ) | (2,856 | ) | |||
Amortization of (premium) discount and debt financing costs, net | (3,795 | ) | (6,530 | ) | |||
Gain on sale of marketable securities | (740 | ) | — | ||||
Company's share of gain on the sales of co-investments | (7,435 | ) | — | ||||
Income from early redemption of preferred equity investments | — | (469 | ) | ||||
Earnings from co-investments | (7,633 | ) | (3,842 | ) | |||
Operating distributions from co-investments | 9,753 | 6,055 | |||||
Gain on the sale of real estate and land | (20,258 | ) | (7,112 | ) | |||
Equity-based compensation | 1,490 | 1,370 | |||||
Gain on remeasurement of co-investments | — | (21,362 | ) | ||||
Changes in operating assets and liabilities: | |||||||
Prepaid expenses, receivables and other assets | 846 | 3,548 | |||||
Accounts payable and accrued liabilities | 35,200 | 21,741 | |||||
Other liabilities | 324 | 346 | |||||
Net cash provided by operating activities | 200,610 | 162,549 | |||||
Cash flows from investing activities: | |||||||
Additions to real estate: | |||||||
Acquisitions of real estate and acquisition related capital expenditures | (110,309 | ) | (199,190 | ) | |||
Redevelopment | (24,151 | ) | (19,140 | ) | |||
Development acquisitions of and additions to real estate under development | (22,656 | ) | (90,925 | ) | |||
Capital expenditures on rental properties | (5,688 | ) | (16,196 | ) | |||
Acquisition of membership interest in co-investments | — | (41,513 | ) | ||||
Proceeds from insurance for property losses | 435 | 4,589 | |||||
Proceeds from dispositions of real estate | 48,008 | 74,485 | |||||
Contributions to co-investments | (50,591 | ) | (48,650 | ) | |||
Changes in restricted cash and refundable deposits | 59,346 | 45,145 | |||||
Purchases of marketable securities | (1,344 | ) | (7,250 | ) | |||
Sales and maturities of marketable securities | 5,045 | 717 | |||||
Non-operating distributions from co-investments | 21,146 | 11,072 | |||||
Net cash used in investing activities | (80,759 | ) | (286,856 | ) | |||
Cash flows from financing activities: | |||||||
Borrowings under debt agreements | 305,895 | 756,562 | |||||
Repayment of debt | (309,903 | ) | (536,830 | ) | |||
Additions to deferred charges | (1,037 | ) | (4,456 | ) | |||
Net proceeds from issuance of common stock | (134 | ) | 174,592 | ||||
Net proceeds from stock options exercised | 5,232 | 15,613 | |||||
Distributions to noncontrolling interest | (4,858 | ) | (3,574 | ) | |||
Redemption of noncontrolling interest | (1,089 | ) | (2,154 | ) | |||
Common and preferred stock dividends paid | (95,476 | ) | (83,663 | ) | |||
Net cash (used in) provided by financing activities | (101,370 | ) | 316,090 | ||||
Cash acquired in consolidation of co-investment | — | 1,807 | |||||
Net increase in cash and cash equivalents | 18,481 | 193,590 | |||||
Cash and cash equivalents at beginning of period | 29,683 | 25,610 |
Three Months Ended March 31, | |||||||
2016 | 2015 | ||||||
Cash and cash equivalents at end of period | $ | 48,164 | $ | 219,200 | |||
Supplemental disclosure of cash flow information: | |||||||
Cash paid for interest, net of $3.1 million and $4.3 million capitalized in 2016 and 2015, respectively | $ | 48,109 | $ | 50,343 | |||
Supplemental disclosure of noncash investing and financing activities: | |||||||
Transfers between real estate under development to rental properties, net | $ | 107,643 | $ | 162,345 | |||
Transfer from real estate under development to co-investments | $ | 2,338 | $ | 1,562 | |||
Reclassifications to redeemable noncontrolling interest from additional paid in capital and noncontrolling interest | $ | 751 | $ | 1,660 | |||
Debt assumed in connection with acquisition | $ | 48,832 | $ | 114,435 |
March 31, 2016 | December 31, 2015 | ||||||
ASSETS | |||||||
Real estate: | |||||||
Rental properties: | |||||||
Land and land improvements | $ | 2,573,923 | $ | 2,522,842 | |||
Buildings and improvements | 10,052,754 | 9,808,627 | |||||
12,626,677 | 12,331,469 | ||||||
Less accumulated depreciation | (2,051,802 | ) | (1,949,892 | ) | |||
10,574,875 | 10,381,577 | ||||||
Real estate under development | 145,711 | 242,326 | |||||
Co-investments | 1,069,684 | 1,036,047 | |||||
Real estate held for sale, net | — | 26,879 | |||||
11,790,270 | 11,686,829 | ||||||
Cash and cash equivalents-unrestricted | 48,164 | 29,683 | |||||
Cash and cash equivalents-restricted | 32,319 | 93,372 | |||||
Marketable securities | 138,597 | 137,485 | |||||
Notes and other receivables | 18,198 | 19,285 | |||||
Prepaid expenses and other assets | 39,936 | 38,437 | |||||
Total assets | $ | 12,067,484 | $ | 12,005,091 | |||
LIABILITIES AND CAPITAL | |||||||
Unsecured debt, net | $ | 2,936,463 | $ | 3,088,680 | |||
Mortgage notes payable, net | 2,252,057 | 2,215,077 | |||||
Lines of credit, net | 164,282 | 11,707 | |||||
Accounts payable and accrued liabilities | 170,444 | 131,415 | |||||
Construction payable | 36,822 | 40,953 | |||||
Distributions payable | 111,409 | 100,266 | |||||
Other liabilities | 34,814 | 34,518 | |||||
Cumulative redeemable 7.125% Series H preferred units at liquidation value | 73,750 | — | |||||
Total liabilities | 5,780,041 | 5,622,616 | |||||
Commitments and contingencies | |||||||
Redeemable noncontrolling interest | 46,203 | 45,452 | |||||
Capital: | |||||||
General Partner: | |||||||
Common equity (65,426,726 and 65,379,359 units issued and outstanding, respectively) | 6,186,141 | 6,208,535 | |||||
Cumulative redeemable 7.125% Series H preferred stock (liquidation value of 73,750) | — | 71,209 | |||||
6,186,141 | 6,279,744 | ||||||
Limited Partners: | |||||||
Common equity (2,224,968 and 2,214,545 units issued and outstanding, respectively) | 46,889 | 47,235 | |||||
Accumulated other comprehensive loss | (41,809 | ) | (39,598 | ) | |||
Total partners' capital | 6,191,221 | 6,287,381 | |||||
Noncontrolling interest | 50,019 | 49,642 | |||||
Total capital | 6,241,240 | 6,337,023 | |||||
Total liabilities and capital | $ | 12,067,484 | $ | 12,005,091 |
Three Months Ended March 31, | |||||||
2016 | 2015 | ||||||
Revenues: | |||||||
Rental and other property | $ | 312,178 | $ | 280,229 | |||
Management and other fees from affiliates | 2,024 | 2,644 | |||||
314,202 | 282,873 | ||||||
Expenses: | |||||||
Property operating, excluding real estate taxes | 60,071 | 55,618 | |||||
Real estate taxes | 34,419 | 31,553 | |||||
Depreciation and amortization | 109,707 | 106,907 | |||||
General and administrative | 9,182 | 10,545 | |||||
Merger and integration expenses | — | 2,388 | |||||
Acquisition and investment related costs | 828 | 547 | |||||
214,207 | 207,558 | ||||||
Earnings from operations | 99,995 | 75,315 | |||||
Interest expense | (52,466 | ) | (47,546 | ) | |||
Total return swap income | 3,123 | — | |||||
Interest and other income | 5,208 | 4,199 | |||||
Equity income in co-investments | 15,068 | 4,311 | |||||
Gain on sale of real estate and land | 20,258 | 7,112 | |||||
Deferred tax expense on gain on sale of real estate and land | (4,279 | ) | — | ||||
Gain on remeasurement of co-investment | — | 21,362 | |||||
Net income | 86,907 | 64,753 | |||||
Net income attributable to noncontrolling interest | (2,287 | ) | (2,013 | ) | |||
Net income attributable to controlling interest | 84,620 | 62,740 | |||||
Preferred interest distributions | (1,314 | ) | (1,314 | ) | |||
Excess of redemption value of preferred units over the carrying value | (2,541 | ) | — | ||||
Net income available to common unitholders | $ | 80,765 | $ | 61,426 | |||
Comprehensive income | $ | 84,696 | $ | 65,352 | |||
Comprehensive income attributable to noncontrolling interest | (2,287 | ) | (2,013 | ) | |||
Comprehensive income attributable to controlling interest | $ | 82,409 | $ | 63,339 | |||
Per unit data: | |||||||
Basic: | |||||||
Net income available to common unitholders | $ | 1.19 | $ | 0.93 | |||
Weighted average number of common units outstanding during the period | 67,633,519 | 66,369,769 | |||||
Diluted: | |||||||
Net income available to common unitholders | $ | 1.19 | $ | 0.92 | |||
Weighted average number of common units outstanding during the period | 67,785,504 | 66,578,994 | |||||
Distribution per common unit | $ | 1.60 | $ | 1.44 |
General Partner | Limited Partners | Accumulated other comprehensive loss | |||||||||||||||||||||||||||
Common Equity | Common Equity | Noncontrolling Interest | |||||||||||||||||||||||||||
Units | Amount | Units | Amount | Total | |||||||||||||||||||||||||
Balances at December 31, 2015 | 65,379 | $ | 6,208,535 | $ | 71,209 | 2,215 | $ | 47,235 | $ | (39,598 | ) | $ | 49,642 | $ | 6,337,023 | ||||||||||||||
Net income | — | 77,981 | 3,855 | — | 2,784 | — | 2,287 | 86,907 | |||||||||||||||||||||
Change in fair value of derivatives and amortization of swap settlements | — | — | — | — | — | (2,528 | ) | — | (2,528 | ) | |||||||||||||||||||
Change in fair value of marketable securities | — | — | — | — | — | 317 | — | 317 | |||||||||||||||||||||
Issuance of common units under: | |||||||||||||||||||||||||||||
General partner's stock based compensation, net | 41 | 5,232 | — | — | — | — | — | 5,232 | |||||||||||||||||||||
Sale of common stock by general partner, net | — | (134 | ) | — | — | — | — | — | (134 | ) | |||||||||||||||||||
Equity based compensation costs | — | 895 | — | 18 | 595 | — | — | 1,490 | |||||||||||||||||||||
Reclassification of Series H preferred units | — | — | (73,750 | ) | — | — | — | — | (73,750 | ) | |||||||||||||||||||
Changes in redemption value of redeemable noncontrolling interest | — | (841 | ) | — | — | — | — | 90 | (751 | ) | |||||||||||||||||||
Distributions to noncontrolling interest | — | — | — | — | — | — | (1,818 | ) | (1,818 | ) | |||||||||||||||||||
Redemptions | 7 | (829 | ) | — | (8 | ) | (78 | ) | — | (182 | ) | (1,089 | ) | ||||||||||||||||
Distributions declared | — | (104,698 | ) | (1,314 | ) | — | (3,647 | ) | — | — | (109,659 | ) | |||||||||||||||||
Balances at March 31, 2016 | 65,427 | $ | 6,186,141 | $ | — | 2,225 | $ | 46,889 | $ | (41,809 | ) | $ | 50,019 | $ | 6,241,240 |
Three Months Ended March 31, | |||||||
2016 | 2015 | ||||||
Cash flows from operating activities: | |||||||
Net income | $ | 86,907 | $ | 64,753 | |||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||
Depreciation and amortization | 109,707 | 106,907 | |||||
Amortization of discount on marketable securities and other investments | (3,756 | ) | (2,856 | ) | |||
Amortization of (premium) discount and debt financing costs, net | (3,795 | ) | (6,530 | ) | |||
Gain on sale of marketable securities | (740 | ) | — | ||||
Company's share of gain on the sales of co-investments | (7,435 | ) | — | ||||
Income from early redemption of preferred equity investments | — | (469 | ) | ||||
Earnings from co-investments | (7,633 | ) | (3,842 | ) | |||
Operating distributions from co-investments | 9,753 | 6,055 | |||||
Gain on the sales of real estate and land | (20,258 | ) | (7,112 | ) | |||
Equity-based compensation | 1,490 | 1,370 | |||||
Gain on remeasurement of co-investments | — | (21,362 | ) | ||||
Changes in operating assets and liabilities: | |||||||
Prepaid expense, receivables and other assets | 846 | 3,548 | |||||
Accounts payable and accrued liabilities | 35,200 | 21,741 | |||||
Other liabilities | 324 | 346 | |||||
Net cash provided by operating activities | 200,610 | 162,549 | |||||
Cash flows from investing activities: | |||||||
Additions to real estate: | |||||||
Acquisitions of real estate and acquisition related capital expenditures | (110,309 | ) | (199,190 | ) | |||
Redevelopment | (24,151 | ) | (19,140 | ) | |||
Development acquisitions of and additions to real estate under development | (22,656 | ) | (90,925 | ) | |||
Capital expenditures on rental properties | (5,688 | ) | (16,196 | ) | |||
Acquisition of membership interest in co-investments | — | (41,513 | ) | ||||
Proceeds from insurance for property losses | 435 | 4,589 | |||||
Proceeds from dispositions of real estate | 48,008 | 74,485 | |||||
Contributions to co-investments | (50,591 | ) | (48,650 | ) | |||
Changes in restricted cash and refundable deposits | 59,346 | 45,145 | |||||
Purchases of marketable securities | (1,344 | ) | (7,250 | ) | |||
Sales and maturities of marketable securities | 5,045 | 717 | |||||
Non-operating distributions from co-investments | 21,146 | 11,072 | |||||
Net cash used in investing activities | (80,759 | ) | (286,856 | ) | |||
Cash flows from financing activities: | |||||||
Borrowings under debt agreements | 305,895 | 756,562 | |||||
Repayment of debt | (309,903 | ) | (536,830 | ) | |||
Additions to deferred charges | (1,037 | ) | (4,456 | ) | |||
Net proceeds from issuance of common units | (134 | ) | 174,592 | ||||
Net proceeds from stock options exercised | 5,232 | 15,613 | |||||
Distributions to noncontrolling interest | (1,528 | ) | (221 | ) | |||
Redemption of noncontrolling interest | (1,089 | ) | (2,154 | ) | |||
Common and preferred units and preferred interest distributions paid | (98,806 | ) | (87,016 | ) | |||
Net cash (used in) provided by financing activities | (101,370 | ) | 316,090 | ||||
Cash acquired in consolidation of co-investment | — | 1,807 | |||||
Net increase in cash and cash equivalents | 18,481 | 193,590 | |||||
Cash and cash equivalents at beginning of period | 29,683 | 25,610 |
Three Months Ended March 31, | |||||||
2016 | 2015 | ||||||
Cash and cash equivalents at end of period | $ | 48,164 | $ | 219,200 | |||
Supplemental disclosure of cash flow information: | |||||||
Cash paid for interest, net of $3.1 million and $4.3 million capitalized in 2016 and 2015, respectively | $ | 48,109 | $ | 50,343 | |||
Supplemental disclosure of noncash investing and financing activities: | |||||||
Transfers between real estate under development to rental properties, net | $ | 107,643 | $ | 162,345 | |||
Transfer from real estate under development to co-investments | $ | 2,338 | $ | 1,562 | |||
Reclassifications to redeemable noncontrolling interest from general partner capital and noncontrolling interest | $ | 751 | $ | 1,660 | |||
Debt assumed in connection with acquisition | $ | 48,832 | $ | 114,435 |
March 31, 2016 | |||||||||||
Amortized Cost | Gross Unrealized Gain | Carrying Value | |||||||||
Available for sale: | |||||||||||
Investment-grade unsecured bonds | $ | 9,603 | $ | 154 | $ | 9,757 | |||||
Investment funds - U.S. treasuries | 5,019 | 2 | 5,021 | ||||||||
Common stock and stock funds | 32,576 | 7,311 | 39,887 | ||||||||
Held to maturity: | |||||||||||
Mortgage backed securities | 83,932 | — | 83,932 | ||||||||
Total - Marketable securities | $ | 131,130 | $ | 7,467 | $ | 138,597 | |||||
December 31, 2015 | |||||||||||
Amortized Cost | Gross Unrealized Gain (Loss) | Carrying Value | |||||||||
Available for sale: | |||||||||||
Investment-grade unsecured bonds | $ | 11,618 | $ | 68 | $ | 11,686 | |||||
Investment funds - U.S. treasuries | 3,675 | (9 | ) | 3,666 | |||||||
Common stock and stock funds | 34,655 | 7,091 | 41,746 | ||||||||
Held to maturity: | |||||||||||
Mortgage backed securities | 80,387 | — | 80,387 | ||||||||
Total - Marketable securities | $ | 130,335 | $ | 7,150 | $ | 137,485 |
Change in fair value and amortization of swap settlements | Unrealized gains on available for sale securities | Total | |||||||||
Balance at December 31, 2015 | $ | (48,366 | ) | $ | 6,355 | $ | (42,011 | ) | |||
Other comprehensive income (loss) before reclassification | (4,444 | ) | 307 | (4,137 | ) | ||||||
Amounts reclassified from accumulated other comprehensive loss | 1,999 | — | 1,999 | ||||||||
Other comprehensive loss | (2,445 | ) | 307 | (2,138 | ) | ||||||
Balance at March 31, 2016 | $ | (50,811 | ) | $ | 6,662 | $ | (44,149 | ) |
Change in fair value and amortization of swap settlements | Unrealized gains on available for sale securities | Total | |||||||||
Balance at December 31, 2015 | $ | (46,087 | ) | $ | 6,489 | $ | (39,598 | ) | |||
Other comprehensive income (loss) before reclassification | (4,595 | ) | 317 | (4,278 | ) | ||||||
Amounts reclassified from accumulated other comprehensive loss | 2,067 | — | 2,067 | ||||||||
Other comprehensive loss | (2,528 | ) | 317 | (2,211 | ) | ||||||
Balance at March 31, 2016 | $ | (48,615 | ) | $ | 6,806 | $ | (41,809 | ) |
Ownership Percentage | March 31, 2016 | December 31, 2015 | ||||||||
Membership interest/Partnership interest in: | ||||||||||
CPPIB | 55 | % | $ | 380,399 | $ | 376,862 | ||||
Wesco I, III and IV | 50 | % | 216,485 | 218,902 | ||||||
BEXAEW | 50 | % | 74,069 | 88,850 | ||||||
Palm Valley | 50 | % | 68,340 | 68,525 | ||||||
Other | 50%-55% | 32,000 | 32,927 | |||||||
Total operating co-investments | 771,293 | 786,066 | ||||||||
Total development co-investments | 50%-55% | 158,408 | 143,669 | |||||||
Total preferred interest co-investments (includes related party investments of $35.9 million and $35.8 million as of March 31, 2016 and December 31, 2015, respectively) | 139,983 | 106,312 | ||||||||
Total co-investments | $ | 1,069,684 | $ | 1,036,047 |
March 31, 2016 | December 31, 2015 | ||||||
Combined balance sheets: (1) | |||||||
Rental properties and real estate under development | $ | 3,323,201 | $ | 3,360,360 | |||
Other assets | 111,040 | 96,785 | |||||
Total assets | $ | 3,434,241 | $ | 3,457,145 | |||
Debt | $ | 1,475,295 | $ | 1,499,601 | |||
Other liabilities | 97,765 | 92,241 | |||||
Equity (1) | 1,861,181 | 1,865,303 | |||||
Total liabilities and equity | $ | 3,434,241 | $ | 3,457,145 | |||
Company's share of equity | $ | 1,069,684 | $ | 1,036,047 |
Three Months Ended March 31, | |||||||
2016 | 2015 | ||||||
Combined statements of income: (1) | |||||||
Property revenues | $ | 75,130 | $ | 63,498 | |||
Property operating expenses | (25,821 | ) | (22,954 | ) | |||
Net operating income | 49,309 | 40,544 | |||||
Gain on sale of real estate | 17,495 | 14 | |||||
Interest expense | (13,140 | ) | (11,316 | ) | |||
General and administrative | (1,240 | ) | (1,606 | ) | |||
Depreciation and amortization | (28,716 | ) | (25,381 | ) | |||
Net income | $ | 23,708 | $ | 2,255 | |||
Company's share of net income (2) | $ | 15,068 | $ | 4,311 |
March 31, 2016 | December 31, 2015 | ||||||
Notes receivable, secured, bearing interest at 6.0%, due December 2016 | $ | 3,219 | $ | 3,219 | |||
Notes and other receivables from affiliates (1) | 3,522 | 3,092 | |||||
Other receivables | 11,457 | 12,974 | |||||
$ | 18,198 | $ | 19,285 |
March 31, 2016 | December 31, 2015 | Weighted Average Maturity In Years | |||||||
Unsecured bonds private placement - fixed rate | $ | 314,003 | $ | 463,891 | 4.4 | ||||
Term loan - variable rate | 224,551 | 224,467 | 0.7 | ||||||
Bonds public offering - fixed rate | 2,397,909 | 2,400,322 | 6.5 | ||||||
Unsecured debt, net (1) | 2,936,463 | 3,088,680 | |||||||
Lines of credit, net (2) | 164,282 | 11,707 | |||||||
Mortgage notes payable, net (3) | 2,252,057 | 2,215,077 | 5.6 | ||||||
Total debt, net | $ | 5,352,802 | $ | 5,315,464 | |||||
Weighted average interest rate on fixed rate unsecured and unsecured private placement bonds | 3.6 | % | 3.6 | % | |||||
Weighted average interest rate on variable rate term loan | 2.4 | % | 2.4 | % | |||||
Weighted average interest rate on lines of credit | 1.8 | % | 1.9 | % | |||||
Weighted average interest rate on mortgage notes payable | 4.4 | % | 4.4 | % |
Remaining in 2016 | $ | 222,803 | |
2017 | 564,851 | ||
2018 | 321,328 | ||
2019 | 661,954 | ||
2020 | 693,868 | ||
Thereafter | 2,670,852 | ||
$ | 5,135,656 |
Three Months Ended March 31, | |||||||
2016 | 2015 | ||||||
Revenues: | |||||||
Southern California | $ | 141,492 | $ | 123,455 | |||
Northern California | 112,733 | 102,427 | |||||
Seattle Metro | 52,074 | 48,654 | |||||
Other real estate assets | 5,879 | 5,693 | |||||
Total property revenues | $ | 312,178 | $ | 280,229 | |||
Net operating income: | |||||||
Southern California | $ | 96,453 | $ | 83,088 | |||
Northern California | 80,711 | 72,516 | |||||
Seattle Metro | 35,689 | 33,129 | |||||
Other real estate assets | 4,835 | 4,325 | |||||
Total net operating income | 217,688 | 193,058 | |||||
Depreciation and amortization | (109,707 | ) | (106,907 | ) | |||
Interest expense | (52,466 | ) | (47,546 | ) | |||
Total return swap income | 3,123 | — | |||||
Management and other fees from affiliates | 2,024 | 2,644 | |||||
General and administrative | (9,182 | ) | (10,545 | ) | |||
Merger and integration expenses | — | (2,388 | ) | ||||
Acquisition and investment related costs | (828 | ) | (547 | ) | |||
Interest and other income | 5,208 | 4,199 | |||||
Gain on sale of real estate and land | 20,258 | 7,112 | |||||
Deferred tax expense on gain on sale of real estate and land | (4,279 | ) | — | ||||
Equity income in co-investments | 15,068 | 4,311 | |||||
Gain on remeasurement of co-investment | — | 21,362 | |||||
Net income | $ | 86,907 | $ | 64,753 |
March 31, 2016 | December 31, 2015 | ||||||
Assets: | |||||||
Southern California | $ | 4,875,525 | $ | 4,912,264 | |||
Northern California | 3,892,121 | 3,749,072 | |||||
Seattle Metro | 1,698,550 | 1,613,175 | |||||
Other real estate assets | 108,679 | 107,066 | |||||
Net reportable operating segment - real estate assets | 10,574,875 | 10,381,577 | |||||
Real estate under development | 145,711 | 242,326 | |||||
Co-investments | 1,069,684 | 1,036,047 | |||||
Real estate held for sale, net | — | 26,879 | |||||
Cash and cash equivalents, including restricted cash | 80,483 | 123,055 | |||||
Marketable securities | 138,597 | 137,485 | |||||
Notes and other receivables | 18,198 | 19,285 | |||||
Other non-segment assets | 39,936 | 38,437 | |||||
Total assets | $ | 12,067,484 | $ | 12,005,091 |
Three Months Ended March 31, 2016 | Three Months Ended March 31, 2015 | ||||||||||||||||||||
Income | Weighted- average Common Shares | Per Common Share Amount | Income | Weighted- average Common Shares | Per Common Share Amount | ||||||||||||||||
Basic: | |||||||||||||||||||||
Net income available to common stockholders | $ | 77,981 | 65,405,654 | $ | 1.19 | $ | 59,363 | 64,185,455 | $ | 0.92 | |||||||||||
Effect of Dilutive Securities | — | 151,985 | — | 209,225 | |||||||||||||||||
Diluted: | |||||||||||||||||||||
Net income available to common stockholders | $ | 77,981 | 65,557,639 | $ | 1.19 | $ | 59,363 | 64,394,680 | $ | 0.92 |
Three Months Ended March 31, 2016 | Three Months Ended March 31, 2015 | ||||||||||||||||||||
Income | Weighted- average Common Units | Per Common Unit Amount | Income | Weighted- average Common Units | Per Common Unit Amount | ||||||||||||||||
Basic: | |||||||||||||||||||||
Net income available to common unitholders | $ | 80,765 | 67,633,519 | $ | 1.19 | $ | 61,426 | 66,369,769 | $ | 0.93 | |||||||||||
Effect of Dilutive Securities | — | 151,985 | — | 209,225 | |||||||||||||||||
Diluted: | |||||||||||||||||||||
Net income available to common unitholders | $ | 80,765 | 67,785,504 | $ | 1.19 | $ | 61,426 | 66,578,994 | $ | 0.92 |
As of March 31, 2016 | As of March 31, 2015 | ||||||||||
Apartment Homes | % | Apartment Homes | % | ||||||||
Southern California | 23,949 | 49 | % | 22,829 | 48 | % | |||||
Northern California | 14,865 | 30 | % | 14,789 | 31 | % | |||||
Seattle Metro | 10,239 | 21 | % | 10,216 | 21 | % | |||||
Total | 49,053 | 100 | % | 47,834 | 100 | % |
Three Months Ended March 31, | |||||
2016 | 2015 | ||||
Southern California | 96.0 | % | 96.0 | % | |
Northern California | 96.1 | % | 96.2 | % | |
Seattle Metro | 95.8 | % | 96.2 | % |
Number of | Three Months Ended March 31, | Dollar | Percentage | |||||||||||||||
Property Revenues ($ in thousands) | Properties | 2016 | 2015 | Change | Change | |||||||||||||
Quarterly Same-Property: | ||||||||||||||||||
Southern California | 92 | $ | 127,101 | $ | 119,823 | $ | 7,278 | 6.1 | % | |||||||||
Northern California | 54 | 100,571 | 92,219 | 8,352 | 9.1 | |||||||||||||
Seattle Metro | 50 | 52,073 | 48,655 | 3,418 | 7.0 | |||||||||||||
Total Quarterly Same-Property revenues | 196 | 279,745 | 260,697 | 19,048 | 7.3 | |||||||||||||
Quarterly Non-Same Property Revenues | 32,433 | 19,532 | 12,901 | 66.1 | ||||||||||||||
Total property revenues | $ | 312,178 | $ | 280,229 | $ | 31,949 | 11.4 | % |
(a) | historical cost accounting for real estate assets in accordance with GAAP assumes, through depreciation charges, that the value of real estate assets diminishes predictably over time. NAREIT stated in its White Paper on Funds from Operations “since real estate asset values have historically risen or fallen with market conditions, many industry investors have considered presentations of operating results for real estate companies that use historical cost accounting to be insufficient by themselves.” Consequently, NAREIT’s definition of FFO reflects the fact that real estate, as an asset class, generally appreciates over time and depreciation charges required by GAAP do not reflect the underlying economic realities. |
(b) | REITs were created as a legal form of organization in order to encourage public ownership of real estate as an asset class through investment in firms that were in the business of long-term ownership and management of real estate. The exclusion, in NAREIT’s definition of FFO, of gains and losses (including impairment charges on depreciable real estate) from the sales of previously depreciated operating real estate assets allows investors and analysts to readily identify the operating results of the long-term assets that form the core of a REIT’s activity and assists in comparing those operating results between periods. |
Three Months Ended March 31, | |||||||
2016 | 2015 | ||||||
Net income available to common stockholders | $ | 77,981 | $ | 59,363 | |||
Adjustments: | |||||||
Depreciation and amortization | 109,707 | 106,907 | |||||
Gains not included in Funds from Operations attributable to common stockholders and unitholders | (27,693 | ) | (28,474 | ) | |||
Deferred tax expense on sale of real estate and land - taxable REIT subsidiary activity | 4,279 | — | |||||
Depreciation add back from unconsolidated co-investments | 12,023 | 11,917 | |||||
Noncontrolling interest related to Operating Partnership units | 2,784 | 2,063 | |||||
Depreciation attributable to third party ownership and other | 6 | (249 | ) | ||||
Funds from Operations attributable to common stockholders and unitholders | $ | 179,087 | $ | 151,527 | |||
Funds from Operations attributable to common stockholders and unitholders per share - diluted | $ | 2.64 | $ | 2.27 | |||
Non-core items: | |||||||
Merger and integration expenses | — | 2,388 | |||||
Acquisition and investment related costs | 828 | 547 | |||||
Gain on sale of marketable securities | (740 | ) | — | ||||
Income from early redemption of preferred equity investments | — | (469 | ) | ||||
Excess of redemption value of preferred stock over carrying value | 2,541 | ||||||
Other non-core adjustments | — | (1,375 | ) | ||||
Core Funds from Operations attributable to common stockholders and unitholders | $ | 181,716 | $ | 152,618 | |||
Core Funds from Operations attributable to common stockholders and unitholders per share-diluted | $ | 2.68 | $ | 2.29 | |||
Weighted average number shares outstanding diluted (1) | 67,866,703 | 66,641,225 |
(1) | Assumes conversion of all outstanding operating partnership interests in the Operating Partnership and excludes 740,146 DownREIT units for which the Operating Partnership has the ability and intention to redeem the DownREIT limited partnership units for cash and does not consider them to be common stock equivalents. |
Three Months Ended March 31, | |||||||
2016 | 2015 | ||||||
Earnings from operations | $ | 99,995 | $ | 75,315 | |||
Adjustments: | |||||||
Depreciation and amortization | 109,707 | 106,907 | |||||
Management and other fees from affiliates | (2,024 | ) | (2,644 | ) | |||
General and administrative | 9,182 | 10,545 | |||||
Merger and integration expenses | — | 2,388 | |||||
Acquisition and investment related costs | 828 | 547 | |||||
NOI | 217,688 | 193,058 | |||||
Less: Non-same property NOI | (22,199 | ) | (13,349 | ) | |||
Same-property NOI | $ | 195,489 | $ | 179,709 |
Carrying and | Estimated Carrying Value | ||||||||||||||||
Notional | Maturity | Estimated | 50 | -50 | |||||||||||||
(in thousands) | Amount | Date Range | Fair Value | Basis Points | Basis Points | ||||||||||||
Cash flow hedges: | |||||||||||||||||
Interest rate swaps | $ | 225,000 | 2016-2017 | $ | (996 | ) | $ | (306 | ) | $ | (1,674 | ) | |||||
Interest rate caps | 20,674 | 2018-2019 | — | 5 | — | ||||||||||||
Total cash flow hedges | $ | 245,674 | 2016-2019 | $ | (996 | ) | $ | (301 | ) | $ | (1,674 | ) |
For the Years Ended | 2016 | 2017 | 2018 | 2019 | 2020 | Thereafter | Total | Fair value | ||||||||||||||||||
(in thousands, except for interest rates) | ||||||||||||||||||||||||||
Fixed rate debt | $ | 22,765 | 539,356 | 320,786 | 651,362 | 693,221 | 2,391,457 | $ | 4,618,947 | $ | 4,817,212 | |||||||||||||||
Average interest rate | 4.6 | % | 3.3 | % | 5.5 | % | 4.3 | % | 5.0 | % | 3.8 | % | 4.1 | % | ||||||||||||
Variable rate debt | $ | 200,038 | (1) | 25,495 | (1) | 3,928 | 175,592 | 647 | 279,395 | (2) (3) | $ | 685,095 | $ | 680,211 | ||||||||||||
Average interest rate | 2.3 | % | 2.3 | % | 1.7 | % | 1.8 | % | 1.0 | % | 0.9 | % | 1.6 | % |
(1) | $225.0 million is subject to interest rate swap agreements. |
(2) | $20.7 million is subject to interest rate caps. |
(3) | $257.3 million is subject to total return swaps. |
A. Exhibits | |
10.1 | Form of Equity Distribution Agreement between Essex Property Trust, Inc. and various entities, dated March 8, 2016, attached as Exhibit 10.1 to the Company's Current Report of From 8-K, filed on March 9, 2016, and incorporated herein by reference. |
12.1 | Ratio of Earnings to Fixed Charges. |
31.1 | Certification of Michael J. Schall, Chief Executive Officer, pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. |
31.2 | Certification of Angela L. Kleiman, Chief Financial Officer, pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. |
31.3 | Certification of Michael J. Schall, Principal Executive Officer of General Partner, pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. |
31.4 | Certification of Angela L. Kleiman, Principal Financial Officer of General Partner, pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. |
32.1 | Certification of Michael J. Schall, Chief Executive Officer, pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. |
32.2 | Certification of Angela L. Kleiman, Chief Financial Officer, pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. |
32.3 | Certification of Michael J. Schall, Principal Executive Officer of General Partner, pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. |
32.4 | Certification of Angela L. Kleiman, Principal Financial Officer of General Partner, pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. |
ESSEX PROPERTY TRUST, INC. | |
(Registrant) | |
Date: May 3, 2016 | |
By: /S/ ANGELA L. KLEIMAN | |
Angela L. Kleiman | |
Executive Vice President and Chief Financial Officer (Authorized Officer, Principal Financial Officer) |
Date: May 3, 2016 | |
By: /S/ JOHN FARIAS | |
John Farias | |
Group Vice President and Chief Accounting Officer |
ESSEX PORTFOLIO, L.P. By Essex Property Trust, Inc., its general partner | |
(Registrant) | |
Date: May 3, 2016 | |
By: /S/ ANGELA L. KLEIMAN | |
Angela L. Kleiman | |
Executive Vice President and Chief Financial Officer (Authorized Officer, Principal Financial Officer) |
ESSEX PORTFOLIO, L.P. By Essex Property Trust, Inc., its general partner | |
(Registrant) | |
Date: May 3, 2016 | |
By: /S/ JOHN FARIAS | |
John Farias | |
Group Vice President and Chief Accounting Officer |
Three Months ended March 31, | Years ended December 31, | |||||||||||||||||||
2016 | 2015 | 2014 | 2013 | 2012 | ||||||||||||||||
Earnings before fixed charges: | ||||||||||||||||||||
Income before discontinued operations | $ | 86,907 | $ | 248,239 | $ | 134,438 | $ | 140,882 | $ | 127,653 | ||||||||||
Interest expense | 52,466 | 204,827 | 164,551 | 116,524 | 111,888 | |||||||||||||||
Interest portion of rental expense | 241 | 559 | 267 | 136 | 130 | |||||||||||||||
Total earnings before fixed charges | $ | 139,614 | $ | 453,625 | $ | 299,256 | $ | 257,542 | $ | 239,671 | ||||||||||
Fixed charges: | ||||||||||||||||||||
Interest expense | $ | 52,466 | $ | 204,827 | $ | 164,551 | $ | 116,524 | $ | 111,888 | ||||||||||
Capitalized interest | 3,055 | 15,571 | 22,510 | 16,486 | 10,346 | |||||||||||||||
Interest portion of rental expense | 241 | 559 | 267 | 136 | 130 | |||||||||||||||
Total fixed charges | $ | 55,762 | $ | 220,957 | $ | 187,328 | $ | 133,146 | $ | 122,364 | ||||||||||
Preferred stock dividends | 1,314 | 5,255 | 5,291 | 5,472 | 5,472 | |||||||||||||||
Total fixed charges and preferred | ||||||||||||||||||||
stock dividends and preferred unit distributions | $ | 57,076 | $ | 226,212 | $ | 192,619 | $ | 138,618 | $ | 127,836 | ||||||||||
Ratio of earnings to fixed charges | ||||||||||||||||||||
(excluding preferred stock dividends | ||||||||||||||||||||
and preferred unit distributions) | 2.50 | X | 2.05 | X | 1.60 | X | 1.93 | X | 1.96 | X | ||||||||||
Ratio of earnings to combined fixed | ||||||||||||||||||||
charges and preferred stock dividends | ||||||||||||||||||||
and preferred unit distributions | 2.45 | X | 2.01 | X | 1.55 | X | 1.86 | X | 1.87 | X |
Three Months ended March 31, | Years ended December 31, | |||||||||||||||||||
2016 | 2015 | 2014 | 2013 | 2012 | ||||||||||||||||
Earnings before fixed charges: | ||||||||||||||||||||
Income before discontinued operations | $ | 86,907 | $ | 248,239 | $ | 134,438 | $ | 140,882 | $ | 127,653 | ||||||||||
Interest expense | 52,466 | 204,827 | 164,551 | 116,524 | 111,888 | |||||||||||||||
Interest portion of rental expense | 241 | 559 | 267 | 136 | 130 | |||||||||||||||
Total earnings before fixed charges | $ | 139,614 | $ | 453,625 | $ | 299,256 | $ | 257,542 | $ | 239,671 | ||||||||||
Fixed charges: | ||||||||||||||||||||
Interest expense | $ | 52,466 | $ | 204,827 | $ | 164,551 | $ | 116,524 | $ | 111,888 | ||||||||||
Capitalized interest | 3,055 | 15,571 | 22,510 | 16,486 | 10,346 | |||||||||||||||
Interest portion of rental expense | 241 | 559 | 267 | 136 | 130 | |||||||||||||||
Total fixed charges | $ | 55,762 | $ | 220,957 | $ | 187,328 | $ | 133,146 | $ | 122,364 | ||||||||||
Preferred interest distributions | 1,314 | 5,255 | 5,291 | 5,472 | 5,472 | |||||||||||||||
Total fixed charges and preferred | ||||||||||||||||||||
interest and preferred unit distributions | $ | 57,076 | $ | 226,212 | $ | 192,619 | $ | 138,618 | $ | 127,836 | ||||||||||
Ratio of earnings to fixed charges | ||||||||||||||||||||
(excluding preferred interest | ||||||||||||||||||||
and preferred unit distributions) | 2.50 | X | 2.05 | X | 1.60 | X | 1.93 | X | 1.96 | X | ||||||||||
Ratio of earnings to combined fixed | ||||||||||||||||||||
charges and preferred interest and | ||||||||||||||||||||
preferred unit distributions | 2.45 | X | 2.01 | X | 1.55 | X | 1.86 | X | 1.87 | X |
1. | I have reviewed this quarterly report on Form 10-Q of Essex Property Trust, Inc.; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
a) | Designed such disclosure controls and procedures, or caused such disclosure control and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
b) | Designed such internal control over financial reporting, or caused such internal controls over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
c) | Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
d) | Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and |
5. | The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions): |
a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and |
b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting. |
/s/ Michael J. Schall | |
Michael J. Schall Chief Executive Officer and President Essex Property Trust, Inc. |
1. | I have reviewed this quarterly report on Form 10-Q of Essex Property Trust, Inc.; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
a) | Designed such disclosure controls and procedures, or caused such disclosure control and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
b) | Designed such internal control over financial reporting, or caused such internal controls over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
c) | Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
d) | Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and |
5. | The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions): |
a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and |
b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting. |
/s/ Angela L. Kleiman | |
Angela L. Kleiman Executive Vice President and Chief Financial Officer Essex Property Trust, Inc. |
1. | I have reviewed this quarterly report on Form 10-Q of Essex Portfolio, L.P.; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
a) | Designed such disclosure controls and procedures, or caused such disclosure control and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
b) | Designed such internal control over financial reporting, or caused such internal controls over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
c) | Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
d) | Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and |
5. | The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions): |
a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and |
b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting. |
/s/ Michael J. Schall | |
Michael J. Schall Chief Executive Officer and President Essex Property Trust, Inc., general partner of Essex Portfolio, L.P. |
1. | I have reviewed this quarterly report on Form 10-Q of Essex Portfolio, L.P.; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
a) | Designed such disclosure controls and procedures, or caused such disclosure control and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
b) | Designed such internal control over financial reporting, or caused such internal controls over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
c) | Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
d) | Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and |
5. | The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions): |
a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and |
b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting. |
/s/ Angela L. Kleiman | |
Angela L. Kleiman Executive Vice President and Chief Financial Officer Essex Property Trust, Inc., general partner of Essex Portfolio, L.P. |
Date: May 3, 2016 | /s/ Michael J. Schall | |
Michael J. Schall | ||
Chief Executive Officer and President | ||
Essex Property Trust, Inc. |
Date: May 3, 2016 | /s/ Angela L. Kleiman | |
Angela L. Kleiman | ||
Executive Vice President and Chief Financial Officer | ||
Essex Property Trust, Inc. |
Date: May 3, 2016 | /s/ Michael J. Schall | |
Michael J. Schall | ||
Chief Executive Officer and President | ||
Essex Property Trust, Inc., general partner of | ||
Essex Portfolio, L.P. |
Date: May 3, 2016 | /s/ Angela L. Kleiman | |
Angela L. Kleiman | ||
Executive Vice President and Chief Financial Officer | ||
Essex Property Trust, Inc., general partner of | ||
Essex Portfolio, L.P. |
Document and Entity Information - shares |
3 Months Ended | |
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Mar. 31, 2016 |
Apr. 28, 2016 |
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Entity Information [Line Items] | ||
Entity Registrant Name | ESSEX PROPERTY TRUST INC | |
Entity Central Index Key | 0000920522 | |
Current Fiscal Year End Date | --12-31 | |
Entity Current Reporting Status | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 65,430,092 | |
Document Fiscal Year Focus | 2016 | |
Document Fiscal Period Focus | Q1 | |
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Mar. 31, 2016 | |
Essex Portfolio, L.P. [Member] | ||
Entity Information [Line Items] | ||
Entity Registrant Name | ESSEX PORTFOLIO LP | |
Current Fiscal Year End Date | --12-31 | |
Entity Current Reporting Status | Yes | |
Entity Filer Category | Non-accelerated Filer |
Organization and Basis of Presentation |
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Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Organization and Basis of Presentation | Organization and Basis of Presentation The accompanying unaudited condensed consolidated financial statements present the accounts of Essex Property Trust, Inc. (“Essex” or the “Company”), which include the accounts of the Company and Essex Portfolio, L.P. and subsidiaries (the “Operating Partnership,” which holds the operating assets of the Company), prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) for interim financial information and in accordance with the instructions to Form 10-Q. In the opinion of management, all adjustments necessary for a fair presentation of the financial position, results of operations, and cash flows for the periods presented have been included and are normal and recurring in nature. These unaudited condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements included in the Company's annual report on Form 10-K for the year ended December 31, 2015. All significant intercompany accounts and transactions have been eliminated in the unaudited condensed consolidated financial statements. Certain reclassifications have been made to conform to the current year’s presentation. The unaudited condensed consolidated financial statements for the three months ended March 31, 2016 and 2015 include the accounts of the Company and the Operating Partnership. Essex is the sole general partner in the Operating Partnership, with a 96.7% general partnership interest as of March 31, 2016. Total Operating Partnership limited partnership units outstanding were 2,224,968 and 2,214,545 as of March 31, 2016 and December 31, 2015, respectively, and the redemption value of the units, based on the closing price of the Company’s common stock totaled $520.3 million and $530.2 million, as of March 31, 2016 and December 31, 2015, respectively. As of March 31, 2016, the Company owned or had ownership interests in 244 stabilized apartment communities, aggregating 59,441 apartment homes, excluding the Company’s ownership in preferred interest co-investments, (collectively, the “Communities”, and individually, a “Community”), two commercial buildings and seven active developments (collectively, the “Portfolio”). The Communities are located in Southern California (primarily Los Angeles, Orange, San Diego, and Ventura counties), Northern California (the San Francisco Bay Area) and the Seattle metropolitan areas. New Accounting Pronouncements In January 2016, the Financial Accounting Standards Board ("FASB") issued ASU No. 2016-01 "Recognition and Measurement of Financial Assets and Financial Liabilities", which requires changes to the classification and measurement of investments in certain equity securities and to the presentation of certain fair value changes for financial liabilities measured at fair value. The new standard will be effective for the Company beginning on January 1, 2018 and early adoption is permitted. The Company is currently evaluating the impact of this amendment on its consolidated results of operations and financial position. In February 2016, the FASB issued ASU No. 2016-02 "Leases", which requires an entity that is a lessee to recognize the assets and liabilities arising from leases on the balance sheet. The guidance also requires disclosure regarding the amount, timing, and uncertainty of cash flows arising from leases. The new standard will be effective for the Company beginning on January 1, 2019 and early adoption is permitted, including adoption in an interim period. The new standard must be applied using a modified retrospective approach. The Company is currently evaluating the impact of this amendment on its consolidated results of operations and financial position. Marketable Securities The Company reports its available for sale securities at fair value, based on quoted market prices (Level 1 for the common stock and investment funds and Level 2 for the unsecured bonds, as defined by the FASB standard for fair value measurements), and any unrealized gain or loss is recorded as other comprehensive income (loss). Realized gains and losses, interest income, and amortization of purchase discounts are included in interest and other income on the condensed consolidated statements of income and comprehensive income. As of March 31, 2016 and December 31, 2015, marketable securities consisted primarily of investment-grade unsecured bonds, common stock, investments in mortgage backed securities, investment funds that invest in U.S. treasury or agency securities. As of March 31, 2016 and December 31, 2015, the Company classified its investments in mortgage backed securities, which mature through November 2019 and September 2020, as held to maturity, and accordingly, these securities are stated at their amortized cost. As of March 31, 2016 and December 31, 2015, marketable securities consist of the following ($ in thousands):
The Company uses the specific identification method to determine the cost basis of a security sold and to reclassify amounts from accumulated other comprehensive income for securities sold. For the three months ended March 31, 2016 and 2015, the proceeds from sales of available for sale securities totaled $5.0 million and $0.7 million, respectively, which resulted in $0.7 million realized gains and no realized gains or losses, respectively. Variable Interest Entities In February 2015, the FASB issued ASU No. 2015-02 "Consolidation: Amendments to the Consolidation Analysis," which provides new consolidation guidance and makes changes to both the variable interest model and the voting model. Among other changes, the new standard specifically eliminates the presumption in the current voting model that a general partner controls a limited partnership or similar entity unless that presumption can be overcome. The Company adopted ASU No. 2015-02 on January 1, 2016. Based on the Company’s evaluation of the new standard, it determined that no change was required to its accounting for variable interest entities (“VIEs”). However, under the guidance of ASU No. 2015-02, 9 previously consolidated co-investments now meet the definition of a VIE and requires additional disclosure about these VIEs which the Company continues to consolidate as they were determined to be the primary beneficiary. The Company continues to be the primary beneficiary and consolidates the Operating Partnership and 19 DownREIT limited partnerships (comprising eleven communities). Commencing on January 1, 2016, 9 other consolidated co-investments were determined to be VIEs and the Company continued to consolidate as they were determined to be the primary beneficiary. The consolidated total assets and liabilities related to the 9 consolidated co-investments and 19 DownREIT limited partnerships, net of intercompany eliminations, were approximately $904.4 million and $231.4 million, respectively, as of March 31, 2016 and $893.1 million and $231.8 million, respectively, as of December 31, 2015. Noncontrolling interests in these entities was $55.0 million and $54.6 million as of March 31, 2016 and December 31, 2015, respectively. The Company's financial risk in each VIE is limited to its equity investment in the VIE. As of March 31, 2016 and December 31, 2015, the Company did not have any other VIEs of which it was deemed to be the primary beneficiary and did not have any VIEs of which it was not deemed to be the primary beneficiary. Equity-based Compensation The cost of share and unit based compensation awards is measured at the grant date based on the estimated fair value of the awards. The estimated fair value of stock options and restricted stock granted by the Company are being amortized over the vesting period. The estimated grant date fair values of the long term incentive plan units (discussed in Note 13, “Equity Based Compensation Plans,” in the Company’s Form 10-K for the year ended December 31, 2015) are being amortized over the expected service periods. Fair Value of Financial Instruments Management believes that the carrying amounts of the outstanding balances under its lines of credit, and notes and other receivables approximate fair value as of March 31, 2016 and December 31, 2015, because interest rates, yields, and other terms for these instruments are consistent with yields and other terms currently available for similar instruments. Management has estimated that the fair value of the Company’s $4.6 billion of fixed rate debt, including unsecured debt, at March 31, 2016 is approximately $4.8 billion and the Company’s variable rate debt at March 31, 2016 approximates its fair value based on the terms of existing mortgage notes payable, unsecured debt, and variable rate demand notes compared to those available in the marketplace. Management believes that the carrying amounts of cash and cash equivalents, restricted cash, accounts payable and accrued liabilities, construction payables, other liabilities, and dividends payable approximate fair value as of March 31, 2016 due to the short-term maturity of these instruments. Marketable securities, except mortgage backed securities that are held to maturity, and derivatives are carried at fair value as of March 31, 2016. At March 31, 2016, the Company’s investments in mortgage backed securities had a carrying value of $83.9 million and the Company estimated the fair value to be approximately $113.3 million. At December 31, 2015, the Company’s investments in mortgage backed securities had a carrying value of $80.4 million and the Company estimated the fair value to be approximately $110.2 million. The Company determines the fair value of the mortgage backed securities based on unobservable inputs (level 3 of the fair value hierarchy) considering the assumptions that market participants would make in valuing these securities. Assumptions such as estimated default rates and discount rates are used to determine expected discounted cash flows to estimate the fair value. Capitalization of Costs The Company’s capitalized internal costs related to development and redevelopment projects were comprised primarily of employee compensation and totaled $3.2 million and $2.0 million during the three months ended March 31, 2016 and 2015, respectively. The Company capitalizes leasing commissions associated with the lease-up of development communities and amortizes the costs over the life of the leases. The amounts capitalized for leasing commissions are immaterial for all periods presented. Co-investments The Company owns investments in joint ventures (“co-investments”) in which it has significant influence, but its ownership interest does not meet the criteria for consolidation in accordance with U.S. GAAP. Therefore, the Company accounts for co-investments using the equity method of accounting. The equity method employs the accrual basis for recognizing the investor’s share of investee income or losses. In addition, distributions received from the investee are treated as a reduction in the investment account, not as income. The significant accounting policies of the Company’s co-investment entities are consistent with those of the Company in all material respects. Upon the acquisition of a controlling interest of a co-investment, the co-investment entity is consolidated and a gain or loss is recognized upon the remeasurement of co-investments in the condensed consolidated statement of income equal to the amount by which the fair value of the co-investment interest the Company previously owned exceeds its carrying value. A majority of the co-investments, excluding the preferred equity investments, compensate the Company for its asset management services and some of these investments may provide promote income if certain financial return benchmarks are achieved. Asset management fees are recognized when earned, and promote fees are recognized when the earnings events have occurred and the amount is determinable and collectible. Any promote fees are reflected in equity income from co-investments. Changes in Accumulated Other Comprehensive Loss, Net by Component Essex Property Trust, Inc. (in thousands)
Changes in Accumulated Other Comprehensive Loss, by Component Essex Portfolio, L.P. (in thousands):
Amounts reclassified from accumulated other comprehensive loss in connection with derivatives are recorded in interest expense on the condensed consolidated statement of income and comprehensive income. Realized gains and losses on available for sale securities are included in interest and other income on the condensed consolidated statement of income and comprehensive income. Accounting Estimates The preparation of condensed consolidated financial statements, in accordance with GAAP, requires the Company to make estimates and judgments that affect the reported amounts of assets, liabilities, revenues and expenses, and related disclosures of contingent assets and liabilities. On an on-going basis, the Company evaluates its estimates, including those related to acquiring, developing, and assessing the carrying values of its real estate portfolio, its investments in and advances to joint ventures and affiliates, its notes receivables, and its qualification as a Real Estate Investment Trust (“REIT”). The Company bases its estimates on historical experience, current market conditions, and on various other assumptions that are believed to be reasonable under the circumstances. Actual results may vary from those estimates and those estimates could be different under different assumptions or conditions. |
Significant Transactions During the First Quarter of 2016 and Subsequent Events |
3 Months Ended |
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Business Combinations [Abstract] | |
Significant Transactions During the First Quarter of 2016 and Subsequent Events | Significant Transactions During the First Quarter of 2016 and Subsequent Events Significant Transactions Acquisitions In January 2016, the Company acquired Mio, a 103 unit apartment community, located in San Jose, CA for $51.3 million. In March 2016, the Company acquired Form 15, a 242 apartment unit community, located in San Diego, CA for $97.4 million. In connection with this acquisition, the Company assumed $44.8 million in mortgage loans. Both properties were acquired via like kind exchange with disposition proceeds. The $148.7 million aggregate purchase price for the acquisitions listed above were included on the Company's consolidated balance sheet as follows: $35.6 million was included in land and land improvements, $112.2 million was included in buildings and improvements, and $0.9 million was recorded as acquired in-place lease value and was included in prepaid expenses and other assets in the Company's consolidated balance sheets. Dispositions In January 2016, the Company sold its former headquarters office building, located in Palo Alto, CA for $18.0 million, resulting in a gain of $9.6 million. In January 2016, a Company co-investment, BEXAEW, LLC sold The Heights, a 332 unit apartment community, located in Chino Hills, CA for $93.8 million, which resulted in a gain of $7.4 million for the Company, recorded in the statement of income as equity income in co-investments. BEXAEW, LLC used $50.3 million of proceeds to repay the loan on the property. The Company has a 50% ownership interest in the BEXAEW, LLC joint venture. In February 2016, the Company sold Harvest Park, a 104 unit apartment community, located in Santa Rosa, CA, which was owned by the Company's wholly owned taxable REIT subsidiary, for $30.5 million, resulting in a gain of $6.4 million, net of $4.3 million deferred tax on gain on sale of real estate. Preferred Equity Investments In March 2016, the Company made a commitment to fund a $47.1 million preferred equity investment in a limited liability company that owns 201 Lexington, a development located in Glendale, CA. As of March 31, 2016, $31.8 million of this commitment had been funded. This investment earns a 12.0% preferred return and is scheduled to mature in March 2020. Private Placement Bond Redemption In January 2016, the Company paid off $150.0 million in private placement unsecured bonds that had an interest rate of 4.36% and a stated maturity date of March 2016. This represented the total outstanding balance of these unsecured bonds. Subsequent Events In April 2016, the Company issued $450 million of 3.375% senior unsecured notes that mature in April 2026. The interest is paid semi-annually in arrears on April 15 and October 15 of each year, commencing on October 15, 2016 until the maturity date of April 15, 2026. The Company used the net proceeds of this offering to repay indebtedness under its unsecured lines of credit and for other general corporate and working capital purposes. In April 2016, the Company redeemed all of the issued and outstanding 2,950,000 shares of the Company's 7.125% Series H Cumulative Redeemable Preferred Stock for $25.00 per share. Since the notice of redemption was given in March 2016, the preferred stock was presented at redemption value as a liability as of March 31, 2016, and the excess of redemption value over carrying value was recorded as a charge to net income attributable to common stockholders for the quarter ended March 31, 2016. In April 2016, a Company co-investment, BEXAEW, LLC, sold Canyon Creek, a 200 apartment home community, located in Northridge, CA for $53.5 million. BEXAEW, LLC used $26.3 million of proceeds to repay the loan on the property. The Company has a 50% ownership interest in the BEXAEW, LLC joint venture. |
Co-investments |
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Investments in and Advance to Affiliates, Subsidiaries, Associates, and Joint Ventures [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Co-investments | Co-investments The Company has joint ventures and preferred equity investments in co-investments which are accounted for under the equity method. The co-investments own, operate, and develop apartment communities. The carrying values of the Company's co-investments as of March 31, 2016 and December 31, 2015 are as follows (in thousands):
The combined summarized financial information of co-investments is as follows (in thousands).
(1) Includes preferred equity investments held by the Company. (2) Includes the Company's share of equity income from co-investments and preferred equity investments, gain on sales of co-investments, co-investment promote income and income from early redemption of preferred equity investments. Includes related party income of $0.8 million and $0.9 million for the three months ended March 31, 2016 and 2015, respectively. |
Notes and Other Receivables |
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Mar. 31, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Receivables [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Notes and Other Receivables | Notes and Other Receivables Notes receivable, secured by real estate, and other receivables consist of the following as of March 31, 2016 and December 31, 2015 (in thousands):
(1) The Company had $3.5 million and $3.1 million of short-term loans outstanding and due from various joint ventures as of March 31, 2016 and December 31, 2015, respectively. See Note 5, Related Party Transactions, for additional details. |
Related Party Transactions |
3 Months Ended |
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Mar. 31, 2016 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Related Party Transactions The Company charges certain fees to its co-investments for asset management, property management, development, and redevelopment services. These fees from affiliates totaled $3.3 million and $5.7 million during the three months ended March 31, 2016 and 2015, respectively. All of these fees are net of intercompany amounts eliminated by the Company. The Company netted development and redevelopment fees of $1.3 million and $3.1 million against general and administrative expenses for the three months ended March 31, 2016 and 2015, respectively. The Company’s Chairman and founder, Mr. George Marcus, is the Chairman of the Marcus & Millichap Company (“MMC”), which is a parent company of a diversified group of real estate service, investment, and development firms. Mr. Marcus is also the Co-Chairman of Marcus & Millichap, Inc. (“MMI”), and Mr. Marcus owns a controlling interest in MMI, a national brokerage firm listed on the NYSE. In March 2015, a multifamily property, located in Anaheim, CA that was owned by an entity affiliated with MMC, in which the Company held a $13.7 million preferred equity investment, was sold. That investment of $13.7 million plus an additional $1.3 million in cash was invested as outlined in the next two paragraphs. Prior to the property sale, the $13.7 million preferred equity investment earned a 9.0% preferred return and was scheduled to mature in September 2020. In June 2015, the Company made a $10.0 million preferred equity investment in an entity affiliated with MMC that owns Greentree Apartments, a 220 apartment community located in San Jose, CA. This investment will earn a 9.5% preferred return and is scheduled to mature in June 2022. In June 2015, the Company made a $5.0 million preferred equity investment in an entity affiliated with MMC that owns Sterling Cove Apartments, a 218 apartment community located in Concord, CA. This investment will earn a 9.5% preferred return and is scheduled to mature in June 2022. In August 2015, the Company made a $5.0 million preferred equity investment in an entity affiliated with MMC that owns Alta Vista Apartments, a 92 apartment community located in Los Angeles, CA. This investment will earn a 9.5% preferred return and is scheduled to mature in August 2022. In January 2013, the Company invested $8.6 million as a preferred equity interest investment in an entity affiliated with MMC that owns an apartment development in Redwood City, CA. In March 2015, the Company's preferred interest investment was prepaid and the Company recognized a gain of $0.5 million as a result of the prepayment. As described in Note 4, the Company has provided short-term bridge loans to affiliates. As of March 31, 2016 and December 31, 2015, $3.5 million and $3.1 million, respectively, of short-term loans remained outstanding due from joint venture affiliates and is classified within notes and other receivables in the accompanying condensed consolidated balance sheets. |
Debt |
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Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt | Debt The Company does not have indebtedness as debt is incurred by the Operating Partnership. The Company guarantees the Operating Partnership’s unsecured debt including the revolving credit facilities for the full term of such debt. Debt consists of the following ($ in thousands):
(1) Includes unamortized premium and discounts of $11.3 million and $14.3 million and reduced by unamortized debt issuance costs of $14.8 million and $15.6 million, as of March 31, 2016 and December 31, 2015, respectively. (2) Lines of credit, net, includes unamortized debt issuance costs of $4.1 million and $3.3 million as of March 31, 2016 and December 31, 2015. (3) Includes unamortized premium of $64.5 million and $64.8 million and reduced by unamortized debt issuance costs of $8.1 million and $8.0 million, as of March 31, 2016 and December 31, 2015, respectively. The aggregate scheduled principal payments of the Company’s outstanding debt as of March 31, 2016 are as follows (excluding lines of credit) (in thousands):
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Segment Information |
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Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Information | Segment Information The Company's segment disclosures present the measure used by the chief operating decision makers for purposes of assessing each segment's performance. Essex's chief operating decision makers are comprised of several members of its executive management team who use NOI to assess the performance of the business for the Company's reportable operating segments. NOI represents total property revenue less direct property operating expenses. The executive management team evaluates the Company's operating performance geographically. The Company defines its reportable operating segments as the three geographical regions in which its communities are located: Southern California, Northern California, and Seattle Metro. Excluded from segment revenues and net operating income are management and other fees from affiliates and interest and other income. Non-segment revenues and net operating income included in the following schedule also consist of revenue generated from commercial properties. Other non-segment assets include real estate under development, co-investments, cash and cash equivalents, marketable securities, notes and other receivables, prepaid expenses, and other assets. The revenues and net operating income for each of the reportable operating segments are summarized as follows for the three months ended March 31, 2016 and 2015 (in thousands):
Total assets for each of the reportable operating segments are summarized as follows as of March 31, 2016 and December 31, 2015 (in thousands):
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Net Income Per Common Share and Net Income Per Common Unit |
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Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net Income Per Common Share and Net Income Per Common Unit | Net Income Per Common Share and Net Income Per Common Unit (Amounts in thousands, except share and unit data) Essex Property Trust, Inc.
Weighted average convertible limited partnership units of 2,227,865 and 2,184,314, which include vested Series Z Incentive Units, Series Z-1 Incentive Units, 2014 Long-Term Incentive Plan Units, and 2015 Long-Term Incentive Plan Units, for the three months ended March 31, 2016 and 2015, respectively, were not included in the determination of diluted EPS because they were anti-dilutive. The related income allocated to these convertible limited partnership units, which includes vested Series Z-1 units, aggregated $2.8 million and $2.1 million for the three months ended March 31, 2016 and 2015, respectively. Additionally, excludes 958,972 DownREIT units as they are anti-dilutive. Stock options of 77,200 and zero for the three months ended March 31, 2016 and 2015, respectively, were excluded from the calculation of diluted earnings per share because the assumed proceeds per share of these options plus the average unearned compensation were greater than the average market price of the common stock for the years ended and, therefore, were anti-dilutive. Essex Portfolio, L.P.
Stock options of 77,200 and zero for the three months ended March 31, 2016 and 2015, respectively, were excluded from the calculation of diluted earnings per share because the assumed proceeds per share of these options plus the average unearned compensation were greater than the average market price of the common stock for the years ended and, therefore, were anti-dilutive. Additionally, excludes 958,972 DownREIT units as they are anti-dilutive. |
Derivative Instruments and Hedging Activities |
3 Months Ended |
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Mar. 31, 2016 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Instruments and Hedging Activities | Derivative Instruments and Hedging Activities As of March 31, 2016, the Company has entered into interest rate swap contracts with an aggregate notional amount of $225 million that effectively fixed the interest rate on the $225 million unsecured term loan at 2.4%. These derivatives qualify for hedge accounting. As of March 31, 2016, the Company has interest rate caps, which are not accounted for as hedges, totaling a notional amount of $20.7 million that effectively limit the Company’s exposure to interest rate risk by providing a ceiling on the underlying variable interest rate for $20.7 million of the Company’s tax exempt variable rate debt. As of both March 31, 2016 and December 31, 2015, the aggregate carrying value of the interest rate swap contracts was a liability of $1.0 million, and is included in other liabilities on the condensed consolidated balance sheets. The aggregate carrying value of the interest rate cap was zero on the condensed consolidated balance sheets as of March 31, 2016 and December 31, 2015. Hedge ineffectiveness related to cash flow hedges, which is included in interest expense on the condensed consolidated income statements, net was not significant for the three months ended March 31, 2016 and 2015, respectively. Additionally, the Company has entered into total return swaps that effectively convert $257.3 million of mortgage notes payable to a floating interest rate based on SIFMA plus a spread. The total return swaps provide fair market value protection on the mortgage notes payable to our counterparties during the initial period of the total return swap until the Company's option to call the mortgage notes at par can be exercised. The Company can currently call the total return swaps with $114.4 million of the outstanding debt at par, while the call option on the total return swaps relating to $142.9 million of outstanding debt can be exercised starting on January 1, 2017. These derivatives do not qualify for hedge accounting and had a carrying and fair value of $13 thousand and $4 thousand at March 31, 2016 and December 31, 2015, respectively. These total return swaps are scheduled to mature between September 2021 and November 2022. Realized gains of $3.1 million and zero are reported in the condensed consolidated income statements as total return swap income for the three months ended March 31, 2016 and 2015, respectively. |
Commitments and Contingencies |
3 Months Ended |
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Mar. 31, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies To the extent that an environmental matter arises or is identified in the future that has other than a remote risk of having a material impact on the condensed consolidated financial statements, the Company will disclose the estimated range of possible outcomes associated with it, and, if an outcome is probable, accrue an appropriate liability for that matter. The Company will consider whether any such matter results in an impairment of value on the affected property and, if so, impairment will be recognized. The Company is subject to various lawsuits in the normal course of its business operations. We believe that, with respect to such matters we are currently a party to, the ultimate disposition of any such matter will not result in a material adverse effect on the Company's financial condition, results of operations, or cash flows. |
Organization and Basis of Presentation (Policies) |
3 Months Ended |
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Mar. 31, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
New Accounting Pronouncements | In January 2016, the Financial Accounting Standards Board ("FASB") issued ASU No. 2016-01 "Recognition and Measurement of Financial Assets and Financial Liabilities", which requires changes to the classification and measurement of investments in certain equity securities and to the presentation of certain fair value changes for financial liabilities measured at fair value. The new standard will be effective for the Company beginning on January 1, 2018 and early adoption is permitted. The Company is currently evaluating the impact of this amendment on its consolidated results of operations and financial position. In February 2016, the FASB issued ASU No. 2016-02 "Leases", which requires an entity that is a lessee to recognize the assets and liabilities arising from leases on the balance sheet. The guidance also requires disclosure regarding the amount, timing, and uncertainty of cash flows arising from leases. The new standard will be effective for the Company beginning on January 1, 2019 and early adoption is permitted, including adoption in an interim period. The new standard must be applied using a modified retrospective approach. The Company is currently evaluating the impact of this amendment on its consolidated results of operations and financial position. In February 2015, the FASB issued ASU No. 2015-02 "Consolidation: Amendments to the Consolidation Analysis," which provides new consolidation guidance and makes changes to both the variable interest model and the voting model. Among other changes, the new standard specifically eliminates the presumption in the current voting model that a general partner controls a limited partnership or similar entity unless that presumption can be overcome. The Company adopted ASU No. 2015-02 on January 1, 2016. Based on the Company’s evaluation of the new standard, it determined that no change was required to its accounting for variable interest entities (“VIEs”). However, under the guidance of ASU No. 2015-02, 9 previously consolidated co-investments now meet the definition of a VIE and requires additional disclosure about these VIEs which the Company continues to consolidate as they were determined to be the primary beneficiary. |
Marketable Securities | The Company reports its available for sale securities at fair value, based on quoted market prices (Level 1 for the common stock and investment funds and Level 2 for the unsecured bonds, as defined by the FASB standard for fair value measurements), and any unrealized gain or loss is recorded as other comprehensive income (loss). Realized gains and losses, interest income, and amortization of purchase discounts are included in interest and other income on the condensed consolidated statements of income and comprehensive income. |
Variable Interest Entities | The Company continues to be the primary beneficiary and consolidates the Operating Partnership and 19 DownREIT limited partnerships (comprising eleven communities). Commencing on January 1, 2016, 9 other consolidated co-investments were determined to be VIEs and the Company continued to consolidate as they were determined to be the primary beneficiary. The consolidated total assets and liabilities related to the 9 consolidated co-investments and 19 DownREIT limited partnerships, net of intercompany eliminations, were approximately $904.4 million and $231.4 million, respectively, as of March 31, 2016 and $893.1 million and $231.8 million, respectively, as of December 31, 2015. Noncontrolling interests in these entities was $55.0 million and $54.6 million as of March 31, 2016 and December 31, 2015, respectively. The Company's financial risk in each VIE is limited to its equity investment in the VIE. As of March 31, 2016 and December 31, 2015, the Company did not have any other VIEs of which it was deemed to be the primary beneficiary and did not have any VIEs of which it was not deemed to be the primary beneficiary. |
Equity Based Compensation | The cost of share and unit based compensation awards is measured at the grant date based on the estimated fair value of the awards. The estimated fair value of stock options and restricted stock granted by the Company are being amortized over the vesting period. The estimated grant date fair values of the long term incentive plan units (discussed in Note 13, “Equity Based Compensation Plans,” in the Company’s Form 10-K for the year ended December 31, 2015) are being amortized over the expected service periods. |
Fair Value of Financial Instruments | Management believes that the carrying amounts of the outstanding balances under its lines of credit, and notes and other receivables approximate fair value as of March 31, 2016 and December 31, 2015, because interest rates, yields, and other terms for these instruments are consistent with yields and other terms currently available for similar instruments. Management has estimated that the fair value of the Company’s $4.6 billion of fixed rate debt, including unsecured debt, at March 31, 2016 is approximately $4.8 billion and the Company’s variable rate debt at March 31, 2016 approximates its fair value based on the terms of existing mortgage notes payable, unsecured debt, and variable rate demand notes compared to those available in the marketplace. Management believes that the carrying amounts of cash and cash equivalents, restricted cash, accounts payable and accrued liabilities, construction payables, other liabilities, and dividends payable approximate fair value as of March 31, 2016 due to the short-term maturity of these instruments. Marketable securities, except mortgage backed securities that are held to maturity, and derivatives are carried at fair value as of March 31, 2016. At March 31, 2016, the Company’s investments in mortgage backed securities had a carrying value of $83.9 million and the Company estimated the fair value to be approximately $113.3 million. At December 31, 2015, the Company’s investments in mortgage backed securities had a carrying value of $80.4 million and the Company estimated the fair value to be approximately $110.2 million. The Company determines the fair value of the mortgage backed securities based on unobservable inputs (level 3 of the fair value hierarchy) considering the assumptions that market participants would make in valuing these securities. Assumptions such as estimated default rates and discount rates are used to determine expected discounted cash flows to estimate the fair value. |
Capitalization of Costs | The Company’s capitalized internal costs related to development and redevelopment projects were comprised primarily of employee compensation and totaled $3.2 million and $2.0 million during the three months ended March 31, 2016 and 2015, respectively. The Company capitalizes leasing commissions associated with the lease-up of development communities and amortizes the costs over the life of the leases. The amounts capitalized for leasing commissions are immaterial for all periods presented. |
Co-investments | The Company owns investments in joint ventures (“co-investments”) in which it has significant influence, but its ownership interest does not meet the criteria for consolidation in accordance with U.S. GAAP. Therefore, the Company accounts for co-investments using the equity method of accounting. The equity method employs the accrual basis for recognizing the investor’s share of investee income or losses. In addition, distributions received from the investee are treated as a reduction in the investment account, not as income. The significant accounting policies of the Company’s co-investment entities are consistent with those of the Company in all material respects. Upon the acquisition of a controlling interest of a co-investment, the co-investment entity is consolidated and a gain or loss is recognized upon the remeasurement of co-investments in the condensed consolidated statement of income equal to the amount by which the fair value of the co-investment interest the Company previously owned exceeds its carrying value. A majority of the co-investments, excluding the preferred equity investments, compensate the Company for its asset management services and some of these investments may provide promote income if certain financial return benchmarks are achieved. Asset management fees are recognized when earned, and promote fees are recognized when the earnings events have occurred and the amount is determinable and collectible. Any promote fees are reflected in equity income from co-investments. |
Changes in Accumulated Other Comprehensive Loss | Amounts reclassified from accumulated other comprehensive loss in connection with derivatives are recorded in interest expense on the condensed consolidated statement of income and comprehensive income. Realized gains and losses on available for sale securities are included in interest and other income on the condensed consolidated statement of income and comprehensive income. |
Accounting Estimates | The preparation of condensed consolidated financial statements, in accordance with GAAP, requires the Company to make estimates and judgments that affect the reported amounts of assets, liabilities, revenues and expenses, and related disclosures of contingent assets and liabilities. On an on-going basis, the Company evaluates its estimates, including those related to acquiring, developing, and assessing the carrying values of its real estate portfolio, its investments in and advances to joint ventures and affiliates, its notes receivables, and its qualification as a Real Estate Investment Trust (“REIT”). The Company bases its estimates on historical experience, current market conditions, and on various other assumptions that are believed to be reasonable under the circumstances. Actual results may vary from those estimates and those estimates could be different under different assumptions or conditions. |
Organization and Basis of Presentation (Tables) |
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Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Components of marketable securities | As of March 31, 2016 and December 31, 2015, marketable securities consist of the following ($ in thousands):
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Changes in accumulated other comprehensive income (loss) | Essex Property Trust, Inc. (in thousands)
Changes in Accumulated Other Comprehensive Loss, by Component Essex Portfolio, L.P. (in thousands):
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Co-investments (Tables) |
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Mar. 31, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Investments in and Advance to Affiliates, Subsidiaries, Associates, and Joint Ventures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of co-investments | The carrying values of the Company's co-investments as of March 31, 2016 and December 31, 2015 are as follows (in thousands):
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Summarized financial information for co-investments accounted for under the equity method | The combined summarized financial information of co-investments is as follows (in thousands).
(1) Includes preferred equity investments held by the Company. (2) Includes the Company's share of equity income from co-investments and preferred equity investments, gain on sales of co-investments, co-investment promote income and income from early redemption of preferred equity investments. Includes related party income of $0.8 million and $0.9 million for the three months ended March 31, 2016 and 2015, respectively. |
Notes and Other Receivables (Tables) |
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Mar. 31, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Receivables [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Notes and other receivables | Notes receivable, secured by real estate, and other receivables consist of the following as of March 31, 2016 and December 31, 2015 (in thousands):
(1) The Company had $3.5 million and $3.1 million of short-term loans outstanding and due from various joint ventures as of March 31, 2016 and December 31, 2015, respectively. See Note 5, Related Party Transactions, for additional details. |
Debt (Tables) |
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Mar. 31, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of debt and lines of credit | Debt consists of the following ($ in thousands):
(1) Includes unamortized premium and discounts of $11.3 million and $14.3 million and reduced by unamortized debt issuance costs of $14.8 million and $15.6 million, as of March 31, 2016 and December 31, 2015, respectively. (2) Lines of credit, net, includes unamortized debt issuance costs of $4.1 million and $3.3 million as of March 31, 2016 and December 31, 2015. (3) Includes unamortized premium of $64.5 million and $64.8 million and reduced by unamortized debt issuance costs of $8.1 million and $8.0 million, as of March 31, 2016 and December 31, 2015, respectively. |
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Summary of aggregate scheduled principal payments | The aggregate scheduled principal payments of the Company’s outstanding debt as of March 31, 2016 are as follows (excluding lines of credit) (in thousands):
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Segment Information (Tables) |
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Mar. 31, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Reconciliation of revenues and operating profit (loss) from segments to consolidated | The revenues and net operating income for each of the reportable operating segments are summarized as follows for the three months ended March 31, 2016 and 2015 (in thousands):
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Reconciliation of assets from segment to consolidated | Total assets for each of the reportable operating segments are summarized as follows as of March 31, 2016 and December 31, 2015 (in thousands):
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Net Income Per Common Share and Net Income Per Common Unit (Tables) |
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Mar. 31, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net Income Per Share and Net Income Per Unit [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of net income per common share | Essex Property Trust, Inc.
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Essex Portfolio, L.P. [Member] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net Income Per Share and Net Income Per Unit [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of net income per common share | Essex Portfolio, L.P.
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Notes and Other Receivables (Details) - USD ($) $ in Thousands |
3 Months Ended | |
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Mar. 31, 2016 |
Dec. 31, 2015 |
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Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Notes receivable | $ 18,198 | $ 19,285 |
Bridge loan | 3,500 | 3,100 |
Notes Receivable [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Notes receivable | 3,522 | 3,092 |
Other Receivables [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Notes receivable | 11,457 | 12,974 |
Secured Due December 2016 [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Notes receivable | $ 3,219 | $ 3,219 |
Stated interest rate (in hundredths) | 6.00% |
Debt - Future Principal Payments (Details) $ in Thousands |
Mar. 31, 2016
USD ($)
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Debt Disclosure [Abstract] | |
Remaining in 2016 | $ 222,803 |
2017 | 564,851 |
2018 | 321,328 |
2019 | 661,954 |
2020 | 693,868 |
Thereafter | 2,670,852 |
Long-term debt | $ 5,135,656 |
Debt - Narrative (Details) - USD ($) $ in Millions |
Mar. 31, 2016 |
Dec. 31, 2015 |
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Unsecured Debt [Member] | ||
Debt Instrument [Line Items] | ||
Unamortized premium | $ 11.3 | $ 14.3 |
Unamortized debt issuance expense | 14.8 | 15.6 |
Unsecured Line of Credit [Member] | ||
Debt Instrument [Line Items] | ||
Unamortized debt issuance expense | 4.1 | 3.3 |
Mortgage Notes [Member] | ||
Debt Instrument [Line Items] | ||
Unamortized premium | 64.5 | 64.8 |
Unamortized debt issuance expense | $ 8.1 | $ 8.0 |
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