EX-99.2 3 exh99-2.htm EXHIBIT 99.2 Unassociated Document
E S S E X P R O P E R T Y T R U S T, I N C.
                     
                           
Consolidated Operating Results
Three Months Ended
  
Twelve Months Ended
(Dollars in thousands, except per share amounts)
December 31,
  
December 31,
 
 
 
2004
  
 
2003 (1)
  
2004
  
 
2003 (1)
 
 
 
 
 
  
 
 
  
 
 
  
 
 
Revenues:
                      
 
Rental
$
71,918
  
$
62,235
  
$
273,878
  
$
243,412
 
Other property
 
2,494
  
 
2,096
  
 
9,605
  
 
8,164
   
Total property revenues
 
74,412
  
 
64,331
  
 
283,483
  
 
251,576
                           
Expenses:
                      
 
Property operating
  
25,773
    
21,493
    
96,856
    
81,781
 
Depreciation and amortization
  
18,376
    
16,415
    
72,616
    
57,190
 
Interest
  
17,238
    
13,340
    
63,023
    
52,410
 
Amortization of deferred financing costs
 
408
  
 
235
  
 
1,587
  
 
1,197
 
General and administrative
 
4,148
  
 
2,675
  
 
18,341
  
 
9,637
   
Total expenses
 
65,943
  
 
54,158
  
 
252,423
  
 
202,215
                           
Gain on sale of real estate
  
-
   
-
   
7,909
    
-
Interest and other income
  
2,109
    
1,969
    
8,027
    
6,715
Equity income in co-investments
  
28,567
    
752
    
59,522
    
3,296
Minority interests
 
(6,908)
  
 
(6,404)
  
 
(27,542)
  
 
(25,845)
Income from continuing operations
  
32,237
    
6,490
    
78,976
    
33,527
                           
Income (loss) from discontinued operations, net of minority interests
 
276
 
 
426
 
 
717
 
 
1,563
Net income
  
32,513
   
6,916
   
79,693
   
35,090
                           
Write off of Series C preferred unit offering costs
  
-
   
(625)
    
-
   
(625)
Amortization of discount on Series F preferred stock
  
-
   
(336)
    
-
   
(336)
Dividends to preferred stockholders - Series F
 
(488)
  
 
(195)
  
 
(1,952)
  
 
(195)
Net income available to common stockholders
$
32,025
  
$
5,760
  
$
77,741
  
$
33,934
     
 
 
  
 
 
  
 
 
  
 
 
Net income per share - basic
$
1.39
  
$
0.25
  
$
3.39
  
$
1.58
     
 
 
  
 
 
  
 
 
  
 
 
Net income per share - diluted
$
1.38
  
$
0.25
  
$
3.36
  
$
1.57
 
 
 
  
 
 
  
 
 
  
 
 
     
 
 
  
 
 
  
 
 
  
 
 
 
(1)
The results for the three and twelve months ended December 31, 2003 have been restated to reflect the retroactive adoption of
FIN 46 Revised and SFAS 123. Certain prior period balances have been reclassified to conform to the current year presentation.
  


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

 
  S-1  
 


E S S E X P R O P E R T Y T R U S T, I N C.
                     
                           
Consolidated Operating Results
Three Months Ended
  
Twelve Months Ended
Selected Line Item Detail
December 31,
  
December 31,
(Dollars in thousands)
 
2004
 
 
2003
  
2004
 
 
2003
 
 
 
 
 
  
 
 
  
 
 
  
 
 
Property operating expenses
                      
 
Maintenance and repairs
$
5,639
  
$
4,918
  
$
21,057
  
$
18,623
 
Real estate taxes
  
6,840
    
5,117
    
24,920
    
19,490
 
Utilities
  
3,289
    
3,483
    
12,992
    
12,664
 
Administrative
 
7,666
    
5,853
  
 
28,934
    
22,912
 
Advertising
  
919
    
1,093
    
4,169
    
4,174
 
Insurance
 
1,420
  
 
1,029
  
 
4,784
  
 
3,918
   
Property operating expenses
$
25,773
  
$
21,493
  
$
96,856
  
$
81,781
                           
General and administrative
                      
 
Total general and administrative
$
5,243
 
$
3,879
  
$
19,480
  
$
14,130
 
Incentive compensation attributable to Fund I sale
  

 -

    
-
   
4,000
    
-
 
Employee-related litigation costs
  
500
   
-
   
500
    
-
 
Allocated to property operating expenses - administrative
  
(1,189)
    
(994)
    
(4,508)
    
(3,833)
 
Capitalized and incremental to real estate under development
 
(406)
  
 
(210)
  
 
(1,131)
  
 
(660)
   
Net general and administrative
$
4,148
  
$
2,675
  
$
18,341
  
$
9,637
           
 
    
 
 
  
 
  
Interest and other
                      
 
Interest income
$
357
  
$
137
  
$
951
  
$
564
 
Lease income
  
416
    
197
    
1,665
    
-
 
Fee income
  
1,031
    
1,323
    
4,854
    
5,366
 
Miscellaneous - non-recurring
 
305
    
312
    
557
    
785
   
Interest and other
$
2,109
  
$
1,969
  
$
8,027
  
$
6,715
                           
Equity income in co-investments
                      
 
Equity income (loss) in co-investments
$
(68)
  
$
752
  
$
2,493
  
$
3,296
 
Gain on sale of co-investment activities, net
  
25,173
    
-
   
39,242
    
-
 
Promote distribution from Fund I - non-recurring
  
3,797
    
-
   
18,292
    
-
 
Early extinguishment of debt - non-recurring
  
(335)
    
-
   
(505)
    
-
   
Equity income in co-investments
$
28,567
  
$
752
  
$
59,522
  
$
3,296
                           
Minority interests
                      
 
Limited partners of Essex Portfolio, L.P.
$
3,300
  
$
568
  
$
8,011
  
$
3,541
 
Perpetual preferred distributions
  
2,559
    
4,257
    
14,174
    
17,997
 
Series Z and Z-1 incentive units
  
75
    
43
    
281
    
174
 
Third party ownership interests
 
(90)
    
290
  
 
(944)
    
(440)
 
Down REIT limited partners' distributions
 
1,064
    
1,246
  
 
4,445
    
4,573
 
Write off of Series E preferred unit offering costs
  
-
   
-
   
1,575
    
-
   
Minority interests
$
6,908
  
$
6,404
  
$
27,542
  
$
25,845
                           

 

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

 
  S-2  
 


E S S E X P R O P E R T Y T R U S T, I N C.
                     
                           
Consolidated Funds From Operations
Three Months Ended
  
Twelve Months Ended
(Dollars in thousands, except share and per share amounts)
December 31,
  
December 31,
 
 
 
 
2004
 
 
2003 (1)
  
 
2004
 
 
2003 (1)
 
 
 
 
 
  
 
 
  
 
 
  
 
 
Funds from operations
                      
                           
Net income
$
32,513
  
$
6,916
  
$
79,693
  
$
35,090
Adjustments:
                      
 
Depreciation and amortization
  
18,376
    
16,415
    
72,616
    
57,190
 
Depr. and amort. - unconsolidated co-investments
  
685
    
705
    
2,501
    
2,469
 
Gain on sale of real estate
  
-
   
-
   
(7,909)
    
-
 
Gain on sale of co-investment activities, net
  
(25,173)
    
-
   
(39,242)
    
-
 
Minority interests
  
3,404
   
657
   
8,365
   
3,880
 
Depreciation - discontinued operations
  
63
   
72
   
308
   
397
 
Write off of Series C preferred unit offering costs
  
-
   
(625)
    
-
   
(625)
 
Amortization of discount on Series F preferred stock
  
-
   
(336)
    
-
   
(336)
 
Dividends to preferred stockholders - Series F
 
(488)
  
 
(195)
  
 
(1,952)
  
 
(195)
   
Funds from operations
$
29,380
  
$
23,609
  
$
114,380
  
$
97,870
                           
Components of the change in FFO
                      
Same property NOI
$
579
       
$
690
     
DESIGNTIMESP=20140>
Non-same property NOI
  
5,222
         
16,142
     
Other - corporate and unconsolidated co-investments
 
(1,035)
        
 
36
     
Promote distribution from Fund I - non-recurring
  
3,797
         
18,292
     
Interest expense and amortization of deferred financing costs
  
(4,071)
          
(11,003)
      
General and administrative
  
(1,473)
          
(8,704)
      
Minority interests
  
2,260
         
2,880
     
Income from discontinued operations
  
(167)
          
(938)
      
Depreciation - discontinued operations
  
(9)
          
(89)
      
Write off of Series C preferred unit offering costs
  
625
         
625
     
Amortization of discount on Series F preferred stock
  
336
         
336
     
Dividends to preferred stockholders - Series F
 
(293)
        
 
(1,757)
      
   
Changes in Funds from operations
$
5,771
        
$
16,510
      
                           
Funds from operations per share - diluted
$
1.14
  
$
0.94
  
$
4.49
  
$
4.09
                           
   
Percentage increase
 
21.3%
        
 
9.8%
      
                           
                           
Weighted average number of shares outstanding diluted (2)
 
25,665,019
  
 
25,211,207
  
 
25,490,265
  
 
23,947,931

(1)
  
DESIGNTIMESP=9043>The results for the three and twelve months ended December 31, 2003 have been restated to reflect the retroactive adoption of FIN 46 Revised and SFAS 123.
(2)
  
Assumes conversion of the weighted average operating partnership interests in the Operating Partnership into shares of the Company's common stock.

 

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

 
  S-3  
 

E S S E X P R O P E R T Y T R U S T, I N C.
         
               
Consolidated Balance Sheet
          
(Dollars in thousands)
          
 
 
 
 
December 31, 2004
 
 
December 31, 2003 (1)
               
Real Estate:
          
 
Land and land improvements
$
536,600
  
$
469,347
 
Buildings and improvements
 
1,834,594
  
 
1,514,775
     
 
2,371,194
  
 
1,984,122
 
Less: accumulated depreciation
 
(335,242)
  
 
(265,763)
     
 
2,035,952
  
 
1,718,359
 
Real estate investment held for sale, net of accumulated depreciation of
          
   
$496 as of December 31, 2004
  
14,445
    
-
 
Investments
  
49,712
    
79,567
 
Real estate under development
 
38,320
  
 
55,183
     
 
2,138,429
  
 
1,853,109
Cash and cash equivalents
 
31,899
  
 
25,943
Other assets
  
36,151
    
29,185
Deferred charges, net
 
10,738
  
 
8,574
   
Total assets
$
2,217,217
  
$
1,916,811
               
Mortgage notes payable
$
1,067,449
  
$
891,798
Lines of credit
  
249,535
    
93,100
Other liabilities
  
63,826
    
57,371
Deferred gain
  
5,000
    
-
Total liabilities
 
1,385,810
  
 
1,042,269
               
Minority interests
  
240,130
    
293,143
Common distributions declared
          
               
Stockholders' Equity:
          
 
Common stock
  
2
    
2
 
Series F cumulative redeemable preferred stock, liquidation value
  
25,000
    
25,000
 
Additional paid-in-capital
  
646,744
    
642,643
 
Distributions in excess of accumulated earnings
 
(80,469)
  
 
(86,246)
   
Total liabilities and stockholders' equity
$
2,217,217
  
$
1,916,811
               

(1)
The December 31, 2003 consolidated balance sheet has been restated for the retroactive adoption of the
   
 
provisions of FIN 46 Revised and SFAS 123.
 
 
See Company's 10-K and 10-Q for additional disclosures
 
  S-4  
 

E S S E X P R O P E R T Y T R U S T, I N C.
               
                       
Debt Summary - December 31, 2004
                  
(Dollars in thousands)
                  
 
 
 
 
 
 
 
 
 
 
 
 
                       
       
Percentage of
       
Weighted
 
Weighted
       
Total
    
Balance
 
Average
  
Average Maturity
       
Debt
    
Outstanding
  
Interest Rate (1)
  
In Years
Mortgage notes payable
                  
 
Fixed rate - secured
  
67%
  
$
878,617
  
6.7%
  
5.8
 
Tax exempt variable (2)
  
14%
    
188,832
  
2.7%
  
25.0
   
Total mortgage notes payable
  
81%
  
 
1,067,449
  
5.9%
  
9.1
           
 
 
        
Line of credit - secured (3)
  
7%
    
93,735
  
1.7%
    
Line of credit - unsecured (4)
  
12%
    
155,800
  
2.4%
    
       
19%
  
 
249,535
  
2.1%
    
   
Total debt
  
100%
  
$
1,316,984
  
5.2%
    
           
 
          
   
                        Scheduled principal payments (excludes lines of credit)
          
                       
       
2005
  
$
18,721
        
       
2006
    
24,683
        
       
2007
    
124,846
        
       
2008
    
154,452
        
       
2009
    
46,209
        
       
Thereafter
  
 
698,538
        
       
Total
  
$
1,067,449
        
           
 
          
                       
Capitalized interest for the quarter ended December 31, 2004 was $73.
                

(1)
Weighted average interest rate for variable rate debt are approximate current values.
              
(2)
Subject to interest rate protection agreements.
                
(3)
Secured line of credit commitment is $100 million and matures in January 2009.
              
 
This line is secured by five of Essex's multifamily communities. The underlying interest rate is currently the Freddie Mac Reference Rate plus .55% to .60%.
(4)
Unsecured line of credit commitment is $185 million and matures in May 2007.
             
 
The underlying interest rate on this line is based on a tiered rate structure tied to the Company's corporate ratings and is currently at LIBOR plus 1.00%.
                     
 

 
See Company's 10-K and 10-Q for additional disclosures
 
  S-5  
 


E S S E X P R O P E R T Y T R U S T, I N C.
       
         
Capitalization - December 31, 2004
        
(Dollars and shares in thousands, except per share amounts)
        
         
         
         
Total debt
  
$
1,316,984
  
         
         
Common stock and potentially dilutive securities
        
     Common stock outstanding    
23,034
  
     Limited partnership units (1)    
2,477
  
     Options-treasury method  
 
154
  
Total common stock and potentially dilutive securities
  
 
25,665
  shares
         
Common stock price per share as of December 31, 2004
  
$
83.800
  
         
Market value of common stock and potentially dilutive securities
$
2,150,727
  
         
Perpetual preferred units/stock
  
$
155,000
  7.865% weighted average pay rate
         
Total equity capitalization
  
$
2,305,727
  
         
Total market capitalization
  
$
3,622,711
  
         
Ratio of debt to total market capitalization
  
 
36.4%
  
 
(1)
Assumes conversion of all outstanding operating partnership interests in the Operating Partnership into shares of the Company's common stock.
 
 
See Company's 10-K and 10-Q for additional disclosures
 
  S-6  
 


E S S E X P R O P E R T Y T R U S T, I N C.
                                                               
                                                                                   
Property Operating Results - Quarter ended December 31, 2004 and 2003
                                                
(Dollars in thousands)
                                                                              
     
Southern California
  
Northern California
  
Pacific Northwest
  
Other real estate assets(1)
  
Total
 
 
 
2004
  
2003
  
% Change
  
2004
  
2003
  
% Change
  
2004
  
2003
  
% Change
  
2004
  
2003
  
% Change
    
2004
  
2003
  
% Change
                                                                     
 
            
Revenues:
                                                                              
 
Same property revenues
$
22,798
  
$
22,144
  
3.0%
  
$
12,389
  
$
12,677
  
-2.3%
  
$
9,863
  
$
9,743
  
1.2%
  
$
-
 
$
-
 
n/a
  
$
45,050
  
$
44,564
  
1.1%
 
Non same property revenues(2)
 
21,060
  
 
12,799
      
 
3,483
  
 
3,156
      
 
3,404
  
 
2,180
      
 
1,415
  
 
1,632
      
 
29,362
  
 
19,767
    
   
Total Revenues
$
43,858
  
$
34,943
      
$
15,872
  
$
15,833
      
$
13,267
  
$
11,923
      
$
1,415
  
$
1,632
      
$
74,412
  
$
64,331
    
                                                                                   
Property operating expenses:
                                                                              
 
Same property operating expenses
$
6,704
  
$
6,959
  
-3.7%
  
$
4,289
  
$
4,246
  
1.0%
  
$
3,704
  
$
3,585
  
3.3%
  
$
-
 
$
-
 
n/a
  
$
14,697
  
$
14,790
  
-0.6%
 
Non same property operating expenses(2)
 
7,334
  
 
3,757
      
 
1,414
  
 
1,236
      
 
1,479
  
 
731
      
 
849
  
 
979
      
 
11,076
  
 
6,703
    
   
Total property operating expenses
$
14,038
  
$
10,716
      
$
5,703
  
$
5,482
      
$
5,183
  
$
4,316
      
$
849
  
$
979
      
$
25,773
  
$
21,493
    
Common distributions declared
                                                                              
                                                                                   
Net operating income:
                                                                              
 
Same property net operating income
$
16,094
  
$
15,185
  
6.0%
  
$
8,100
  
$
8,431
  
-3.9%
  
$
6,159
  
$
6,158
  
0.0%
  
$
-
 
$
-
 
n/a
  
$
30,353
  
$
29,774
  
1.9%
 
Non same property operating income(2)
 
13,726
  
 
9,042
      
 
2,069
  
 
1,920
      
 
1,925
  
 
1,449
      
 
566
  
 
653
      
 
18,286
  
 
13,064
    
   
Total net operating income
$
29,820
  
$
24,227
      
$
10,169
  
$
10,351
      
$
8,084
  
$
7,607
      
$
566
  
$
653
      
$
48,639
  
$
42,838
    
                     
 
 
  
 
 
      
 
 
  
 
 
      
 
 
  
 
 
                    
Same property operating margin
 
71%
  
 
69%
      
 
65%
  
 
67%
      
 
62%
  
 
63%
      
n/a
  
n/a
      
 
67%
  
 
67%
    
                     
 
 
  
 
 
      
 
 
  
 
 
      
 
 
  
 
 
                    
Same property turnover percentage
 
50%
  
 
51%
      
 
48%
  
 
46%
      
 
45%
  
 
47%
      
n/a
  
n/a
      
 
48%
  
 
49%
    
                     
 
 
  
 
 
      
 
 
  
 
 
      
 
 
  
 
 
                    
Same property concessions
$
109
  
$
120
      
$
169
  
$
347
      
$
103
  
$
315
      
$
-
 
$
-
     
$
381
  
$
782
    
                     
 
 
  
 
 
      
 
 
  
 
 
      
 
 
  
 
 
                    
Average same property concessions per turn
$
133
  
$
143
      
$
376
  
$
808
      
$
218
  
$
638
      
$
-
 
$
-
     
$
219
  
$
445
    
 
(In dollars)
                
 
 
  
 
 
      
 
 
  
 
 
      
 
 
  
 
 
                    
Net operating income percentage of total
 
61%
  
 
56%
      
 
21%
  
 
24%
      
 
17%
  
 
18%
      
 
1%
  
 
2%
      
 
100%
  
 
100%
    
                     
 
 
  
 
 
      
 
 
  
 
 
      
 
 
  
 
 
                    
Loss to lease(3)
$
6,916
            
$
214
            
$
419
            
$
n/a
            
$
7,549
          
 
Loss to lease as a percentage
                
 
 
            
 
 
            
 
 
                          
 
of rental income
 
4.1%
            
 
0.3%
            
 
0.8%
            
 
n/a
            
 
2.5%
          
                     
 
 
            
 
 
            
 
 
                          
Reconciliation of apartment units at end of period
                                                                          
                                                                                   
 
Same property consolidated apartment units
 
6,538
  
 
6,538
      
 
3,737
  
 
3,737
      
 
4,210
  
 
4,210
      
 
-
 
 
-
     
 
14,485
  
 
14,485
    
                     
 
 
  
 
 
      
 
 
  
 
 
      
 
 
  
 
 
                    
 
Consolidated Apartment Units
  
12,166
    
9,666
        
4,689
    
4,489
        
5,651
    
5,145
        
578
    
578
        
23,084
    
19,878
    
 
Joint Venture
  
1,313
    
5,277
        
595
    
116
        
-
   
741
        
-
   
-
       
1,908
    
6,134
    
 
Under Development
 
407
  
 
686
      
 
370
  
 
370
      
 
-
 
 
-
     
 
-
 
 
-
     
 
777
  
 
1,056
    
   
Total apartment units at end of period
 
13,886
  
 
15,629
      
 
5,654
  
 
4,975
      
 
5,651
  
 
5,886
      
 
578
  
 
578
      
 
25,769
  
 
27,068
    
                     
 
 
  
 
 
      
 
 
  
 
 
      
 
 
  
 
 
                    
   
Percentage of total
 
54%
  
 
58%
      
 
22%
  
 
18%
      
 
22%
  
 
22%
      
 
2%
  
 
2%
      
 
100%
  
 
100%
    
                     
 
 
  
 
 
      
 
 
  
 
 
      
 
 
  
 
 
                    
Average same property financial occupancy
 
96.5%
  
 
97.0%
      
 
95.2%
  
 
96.4%
      
 
95.4%
  
 
95.9%
      
n/a
  
n/a
      
 
95.9%
  
 
96.6%
    

(1)
  
Includes apartment communities located in other geographic areas, other rental properties and commercial properties.
                                                
(2)
  
Includes properties which subsequent to September 30, 2003 were consolidated pursuant to FIN46(R), or either acquired or in a stage of development or redevelopment without stabilized operations.
    
(3)
  
Loss to lease represents the annualized difference between market rents (without considering the impact of rental concessions) and contractual rents. These numbers include the Company's pro-rata interest in unconsolidated properties.
 
 
See Company's 10-K and 10-Q for additional disclosures
 
  S-7  
 


E S S E X P R O P E R T Y T R U S T, I N C.
                           
                                   
Same Property Revenue by County - Quarters ended December 31, 2004, December 31, 2003 and September 30, 2004
              
(Dollars in thousands)
                              
                                   
           
December 31,
  
December 31,
      
September 30,
    
 
 
 
  
Units
  
2004
  
2003
  
% Change
  
2004
  
% Change
 
 
 
  
 
  
 
 
  
 
 
  
 
  
 
 
  
 
Southern California
                              
 
Ventura County
  
1,229
  
$
4,241
  
$
4,291
  
-1.2%
  
$
4,217
  
0.6%
 
Los Angeles County
  
1,825
    
7,405
    
7,032
  
5.3%
    
7,373
  
0.4%
 
Orange County
  
932
    
4,087
    
3,924
  
4.2%
    
4,082
  
0.1%
 
San Diego County
  
2,552
  
 
7,065
  
 
6,897
  
2.4%
  
 
6,964
  
1.5%
   
Total Southern California
  
6,538
  
$
22,798
  
$
22,144
  
3.0%
  
$
22,636
  
0.7%
       
 
  
 
 
  
 
 
      
 
 
    
Northern California
                              
 
San Francisco County
  
99
  
$
349
  
$
332
  
5.1%
  
$
342
  
2.0%
 
Santa Clara County
  
1,696
    
5,836
    
6,009
  
-2.9%
    
5,921
  
-1.4%
 
Alameda County
  
1,116
    
3,261
    
3,384
  
-3.6%
    
3,405
  
-4.2%
 
Contra Costa County
  
826
  
 
2,943
  
 
2,952
  
-0.3%
  
 
3,035
  
-3.0%
   
Total Northern California
  
3,737
  
$
12,389
  
$
12,677
  
-2.3%
  
$
12,703
  
-2.5%
       
 
  
 
 
  
 
 
      
 
 
    
Pacific Northwest
                              
 
Seattle
  
3,335
  
$
8,028
  
$
8,035
  
-0.1%
  
$
8,132
  
-1.3%
 
Portland
  
875
  
 
1,835
  
 
1,708
  
7.4%
  
 
1,828
  
0.4%
   
Total Pacific Northwest
  
4,210
  
$
9,863
  
$
9,743
  
1.2%
  
$
9,960
  
-1.0%
       
 
  
 
 
  
 
 
      
 
 
    
Total same property revenues
  
14,485
  
$
45,050
  
$
44,564
  
1.1%
  
$
45,299
  
-0.5%
 
 
 
See Company's 10-K and 10-Q for additional disclosures
 
  S-8  
 

E S S E X P R O P E R T Y T R U S T, I N C.
                                   
                                             
Development Communities - December 31, 2004
                                    
(Dollars in millions)
                                        
                                             
                     
Total
    
Estimated
                
               
Estimated
    
Incurred
    
Remaining
 
Initial
 
Stabilized
  
%
  
%
Project Name
  
Location
  
Units
  
Cost
  
 
to Date
 
Cost
  
Occupancy
  
Operations
  
Leased
  
Occupied
 
 
 
      
 
  
 
  
 
 
  
 
 
  
 
  
 
  
 
  
 
Development Communities
 
                                      
 
 
 
                                        
Direct Development - Consolidated
                                       
                                             
 
The San Marcos Phase II
  
Richmond, CA
  
120
  
23.9
    
21.9
    
2.0
  
Sep-04
  
Jan-05
  
31%
  
22%
                                             
 
Northwest Gateway(1)
  
Los Angeles, CA
  
275
  
62.6
    
13.3
    
49.3
  
Jul-07
  
Jan-08
  
n/a
  
n/a
                                             
 
Pre-development costs
          
3.1
    
3.1
    
-
 
-
 
-
 
n/a
  
n/a
           
 
  
 
  
 
 
  
 
 
                
   
Subtotal - direct development
      
395
  
89.6
  
 
38.3
  
 
51.3
                
                                             
Joint Venture Transactions - Unconsolidated(2)
                                        
                                             
 
River Terrace
  
Santa Clara, CA
  
250
  
57.9
    
54.3
    
3.6
  
Sep-04
  
Jun-05
  
68%
  
55%
                                             
 
Kelvin Avenue
  
Irvine, CA
  
132
  
6.2
    
6.2
    
-
 
-
 
-
 
n/a
  
n/a
           
 
  
 
  
 
 
  
 
 
                
   
Total - development
      
777
  
153.7
  
$
98.8
  
$
54.9
                
                                             
 
 
 
                                        
Stabilized Communities - Fourth Quarter 2004
 
                                      
 
 
 
                                        
 
Hidden Valley-Parker Ranch(3)
  
Simi Valley, CA
  
324
  
48.3
  
$
48.0
  
$
0.3
  
Dec-03
  
Dec-04
  
95%
  
91%

(1)
The Company will receive 75% of the cash flow up to a 22.67% priority return, and 50% of cash flow thereafter.
                                      
(2)
The Company has a 21.4% interest in development projects owned by Fund I.
                                  
(3)
The Company has a 75% interest in this development project.
             
 

 
See Company's 10-K and 10-Q for additional disclosures
 
  S-9  
 

E S S E X P R O P E R T Y T R U S T, I N C.
                         
                             
Redevelopment Communities - December 31, 2004
                          
(Dollars in thousands)
                          
                             
               
Total
  
Estimated
    
         
Estimated
  
Incurred
  
Remaining
  
Redevelopment
Project Name
  
Units
  
Cost
  
to date
  
Cost
  
Start
 
 
  
 
  
 
 
  
 
 
  
 
 
  
 
Hillcrest Park - Phase II
  
608
  
$
3,626
  
$
2,891
  
$
735
  
Apr-03
                             
Kings Road
  
196
    
6,044
    
2,174
    
3,870
  
Jan-04
                             
Coronado at Newport - South (1)
  
715
    
13,257
    
4,378
    
8,879
  
Jan-04
                             
Mira Woods
  
355
    
4,870
    
75
    
4,795
  
Sep-04
                             
Palisades
  
192
    
1,637
    
264
    
1,373
  
Sep-04
                             
Avondale
  
446
    
5,524
    
285
    
5,239
  
Oct-04
     
 
  
 
 
  
 
 
  
 
 
    
                             
Total
    
2,512
  
$
34,958
  
$
10,067
  
$
24,891
    
                             
                             
                             
Re-stabilized Communities - Fourth Quarter 2004
                          
                             
None
                          

 
Restabilized operations is defined as the month that the property reaches at least 95% occupancy after completion of the redevelopment project.
 
A component of these redevelopments are upgrades to unit interiors. These will be completed in the normal course of unit turnover.
    
                             
(1)
The Company has an approximate 49.9% direct ownership interest in this asset. The Fund has an approximate 49.9% direct ownership interest
 
in this asset, of which the Company owns 21.4%. This asset is part of the announced UDR transaction anticipated to be sold in 2005.
    
 
 

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


E S S E X P R O P E R T Y T R U S T, I N C.
                                     
                                           
Investments - December 31, 2004
            
Debt
             
Essex
(Dollars in thousands)
  
Book
  
Estimated
  
 
 
Interest
Maturity
  
Value of
  
Company
  
Equity
 
 
 
 
Value
  
Value(1)
  
Amount
Type
Rate
Date
  
Equity
  
Ownership
  
Value(2)
 
 
 
 
 
  
 
 
  
 
 
 
 
  
 
 
  
 
 
  
 
 
Joint Ventures
                                      
 
Essex Apartment Value Fund, L.P. (Fund I)
                                      
   
Coronado at Newport - South, Newport Beach, CA - 49.9% (3)
          
-
                       
   
Kelvin Avenue, Irvine, CA (development)
            
-
                       
   
Rivermark, Santa Clara, CA (development)
            
26,578
Var.
LIBOR+ 2%
Jan-07
                  
     
$
14,140
  
$
84,394
  
26,578
        
$
57,816
    
21.4%
  
$
12,373
                                           
 
Essex Apartment Value Fund II, L.P. (Fund II)
                                      
   
Harbor Cove, Foster City, CA
            
36,473
Fixed
4.89%
Dec-13
                  
   
Carlmont Woods, Belmont, CA
            
13,526
Fixed
4.89%
Dec-13
                  
   
Parcwood, Corona, CA
            
26,556
Fixed
4.89%
Dec-13
                  
       
17,242
    
130,000
  
76,555
          
53,445
    
28.2%
    
15,071
                                           
 
Lend Lease
                                     
   
Coronado at Newport - South, Newport Beach, CA
           
48,697
Fixed
5.30%
Dec-12
                  
       
11,524
    
95,404
  
48,697
          
46,707
    
49.9%
    
23,307
                 
 
                        
Other
   
6,806
                                
6,806
                                           
     
 
 
                              
 
 
     
$
49,712
                              
$
57,557

(1)
Estimated value for properties in contract to sell are based on the anticipated sales price less the anticipated cost of sales.
                      
(2)
Although the Company generally intends to hold these properties for use, the Company equity value assumes liquidation at December 31, 2004.
                  
(3)
The Fund accounts for its investment in this property under the equity method of accounting.
                              
 
 
 
See Company's 10-K and 10-Q for additional disclosures
 
  S-11  
 

 
 
ESSEX PROPERTY TRUST, INC.
  
   REAL ESTATE INFORMATION  
 
31-Dec-04 
  
                   
           
Square
Year
Year
  
 
Property Name
Address
City
State
Units
Footage
Acquired
Built
  
                   
 
MULTIFAMILY COMMUNITIES
  
                   
 
SAN FRANCISCO BAY AREA
              
 
Santa Clara County
                
1
Pointe at Cupertino, The (Westwood)
19920 Olivewood Street
Cupertino
CA
116
135,200
1998
1963
  
1
Carlyle, The
2909 Nieman Boulevard
San Jose
CA
132
129,200
2000
2000
  
1
Esplanade
350 East Taylor St.
San Jose
CA
278
279,000
2004
2002
  
1
Waterford, The
1700 N. First Street
San Jose
CA
238
219,600
2000
2000
  
1
Le Parc (Plumtree)
440 N. Winchester Avenue
Santa Clara
CA
140
113,200
1994
1975
  
1
Marina Cove
3480 Granada Avenue
Santa Clara
CA
292
250,200
1994
1974
  
 
River Terrace
N.E. corner Montague/Agnew
Santa Clara
CA
250
223,800
 
 
  
1
Bristol Commons
732 E. Evelyn Avenue
Sunnyvale
CA
188
142,600
1995
1989
  
1
Brookside Oaks
1651 Belleville Way
Sunnyvale
CA
170
119,900
2000
1973
  
1
Oak Pointe
450 N. Mathilda Avenue
Sunnyvale
CA
390
294,100
1988
1973
  
1
Summerhill Park
972 Corte Madera Avenue
Sunnyvale
CA
100
78,500
1988
1988
  
1
Windsor Ridge
825 E. Evelyn Avenue
Sunnyvale
CA
216
161,800
1989
1989
  
       
9%
2,260
1,923,300
      
 
Alameda County
                
1
Stevenson Place (The Apple)
4141 Stevenson Blvd.
Fremont
CA
200
146,200
1983
1971
  
1
Treetops
40001 Fremont Blvd.
Fremont
CA
172
131,200
1996
1978
  
1
Wimbeldon Woods
25200 Carlos Bee Blvd.
Hayward
CA
560
462,400
1998
1975
  
1
Summerhill Commons
36826 Cherry Street
Newark
CA
184
139,000
1987
1987
  
       
4%
1,116
878,800
      
 
Contra Costa County
                
1
San Marcos (Vista del Mar)
Hilltop Drive at Richmond Pkwy
Richmond
CA
312
292,700
2003
2003
  
 
San Marcos (Vista del Mar) - Phase II
Hilltop Drive at Richmond Pkwy
Richmond
CA
120
114,900
 
 
  
1
Bel Air (The Shores)
2000 Shoreline Drive
San Ramon
CA
462
391,000
1995
1988
114 units 2000
1
Eastridge Apartments
235 East Ridge Drive
San Ramon
CA
188
174,100
1996
1988
  
1
Foothill Gardens
1110 Harness Drive
San Ramon
CA
132
155,100
1997
1985
  
1
Twin Creeks
2711-2731 Morgan Drive
San Ramon
CA
44
51,700
1997
1985
  
       
5%
1,138
1,064,600
      
 
San Mateo County
                
1
Carlmont Woods
2515 Carlmont Drive
Belmont
CA
195
107,200
2004
1971
  
1
Harbor Cove
900 E. Hillsdale Blvd.
Foster City
CA
400
306,600
2004
1971
  
       
2%
595
413,800
      
                   
 
San Francisco and Marin County
                
1
Mt. Sutro Terrace Apartments
480 Warren Drive
San Francisco
CA
99
64,000
1999
1973
  
1
Vista Belvedere
15 Red Hill Circle
Tiburon
CA
76
78,300
2004
1963
  
       
1%
175
142,300
      
                   
24
Total San Francisco Bay Area
    
21%
5,284
4,422,800
     
                   
 
SOUTHERN CALIFORNIA
              
 
Los Angeles County
                
1
Hampton Court (Columbus)
1136 N. Columbus Avenue
Glendale
CA
83
71,500
1999
1974
  
1
Hampton Place (Loraine)
245 W. Loraine Street
Glendale
CA
132
141,500
1999
1970
  
1
Marbrisa
1809 Termino Ave.
Long Beach
CA
202
122,800
2002
1987
  
1
Pathways
5945 E. Pacific Coast Hwy.
Long Beach
CA
296
197,700
1991
1975
  
1
Bunker Hill
222 and 234 S. Figueroa St.
Los Angeles
CA
456
346,600
1998
1968
  
1
City Heights
209 S. Westmoreland
Los Angeles
CA
687
424,100
2000
1968
  
1
Cochran Apartments
612 South Cochran
Los Angeles
CA
58
51,400
1998
1989
  
1
Kings Road
733 North Kings Road
Los Angeles
CA
196
132,100
1997
1979
  
 
Northwest Gateway
1302 West 2nd St.
Los Angeles
CA
275
225,000
 
 
  
1
Park Place
400 S. Detroit Street
Los Angeles
CA
60
48,000
1997
1988
  
1
Windsor Court
401 S. Detroit Street
Los Angeles
CA
58
46,600
1997
1988
  
1
Marina City Club
4333 Admiralty Way
Marina Del Rey
CA
101
127,200
2004
1971
  
1
Mirabella (Marina View)
13701 Marina Point Drive
Marina Del Rey
CA
188
176,800
2000
2000
  
1
Hillcrest Park (Mirabella)
1800 West Hillcrest Drive
Newbury Park
CA
608
521,900
1998
1973
  
1
Monterra del Mar (Windsor Terrace)
280 E. Del Mar Boulevard
Pasadena
CA
123
74,400
1997
1972
  
1
Monterra del Rey (Glenbrook)
350 Madison
Pasadena
CA
84
73,100
1999
1972
  
1
Monterra del Sol (Euclid)
280 South Euclid
Pasadena
CA
85
69,200
1999
1972
  
1
Fountain Park
13141 Fountain Park Drive
Playa Vista
CA
705
608,900
2004
2002
  
1
Highridge
28125 Peacock Ridge Drive
Rancho Palos Verde
CA
255
290,200
1997
1972
  
1
Walnut Heights
20700 San Jose Hills Road
Walnut
CA
163
146,700
2003
1964
  
1
Avondale at Warner Center
22222 Victory Blvd.
Woodland Hills
CA
446
331,000
1999
1970
  
       
20%
4,986
4,001,700
      
 
Ventura County
                
1
Camarillo Oaks
921 Paseo Camarillo
Camarillo
CA
564
459,000
1996
1985
  
1
Mountain View
649 E. Las Posas Road
Camarillo
CA
106
83,900
2004
1980
  
1
Mariner's Place
711 South B Street
Oxnard
CA
105
77,200
2000
1987
  
1
Tierra Vista
Rice and Gonzales
Oxnard
CA
404
387,100
2001
2001
  
1
Monterey Villas (Village Apartments)
1040 Kelp Lane
Oxnard
CA
122
122,100
1997
1974
  
1
Meadowood
1733 Cochran Street
Simi Valley
CA
320
264,500
1996
1986
  
1
Hidden Valley (Parker Ranch)
5065 Hidden Park Court
Simi Valley
CA
324
310,900
2004
2004
  
1
Lofts at Pinehurst,The (Villa Scandia)
1021 Scandia Avenue
Ventura
CA
118
71,100
1997
1971
  
1
Pinehurst
3980 Telegraph Road
Ventura
CA
28
21,200
2004
1973
  
1
Woodside Village
675 Providence Ave.
Ventura
CA
145
136,500
2004
1987
  
       
9%
2,236
1,933,500
      
 

 
  S-12  
 

 
 
Orange County
                  
1
Barkley Apartments
2400 E. Lincoln Ave.
Anahiem
CA
161
139,800
  
2000
1984
  
1
Vista Pointe
175-225 S. Rio Vista
Anahiem
CA
286
242,400
  
1985
1968
  
1
Valley Park Apartments
17300 Euclid Ave.
Fountain Valley
CA
160
169,700
  
2001
1969
  
1
Capri at Sunny Hills
2341 Daphne Place
Fullerton
CA
100
128,100
  
2001
1961
  
1
Wilshire Promenade
141 West Wilshire Avenue
Fullerton
CA
149
128,000
(1)
1997
1992
  
1
Montejo Apartments
12911 Dale St.
Garden Grove
CA
124
103,200
  
2001
1974
  
1
Huntington Breakers
21270 Beach Boulevard
Huntington Beach
CA
342
241,700
  
1997
1984
  
 
Irvine development
2552 Kelvin Ave.
Irvine
CA
132
122,400
 
 
 
  
1
Hillsborough Park
1501 South Beach Boulevard
La Habra
CA
235
215,500
  
1999
1999
  
1
Trabuco Villas
25362 Mosswood Way
Lake Forest
CA
132
131,000
  
1997
1985
  
1
Coronado At Newport-South
1700 16th Street
Newport Beach
CA
715
498,700
  
1999
1969
  
1
Fairways Apartments
2 Pine Valley Lane
Newport Beach
CA
74
107,100
  
1999
1972
  
1
Villa Angelina
201 E. Chapman Ave.
Placentia
CA
256
217,600
  
2001
1970
  
1
Hearthstone Apartments
2301 E. Santa Clara Ave.
Santa Ana
CA
140
154,800
  
2001
1970
  
1
Treehouse Apartments
2601 N. Grand Ave.
Santa Ana
CA
164
135,700
  
2001
1970
  
       
12%
3,038
2,613,300
        
 
San Diego County
                  
1
Alpine Country
2660 Alpine Blvd.
Alpine
CA
108
81,900
  
2002
1986
  
1
Alpine Village
2055 Arnold Way
Alpine
CA
306
254,400
  
2002
1971
  
1
Bonita Cedars
5155 Cedarwood Rd.
Bonita
CA
120
120,800
  
2002
1983
  
1
Cambridge
660 F. St.
Chula Vista
CA
40
22,100
  
2002
1965
  
1
Woodlawn Colonial
245-255 Woodlawn Ave.
Chula Vista
CA
159
104,500
  
2002
1974
  
1
Mesa Village
5265 Clairemont Mesa Blvd.
Clairemont
CA
133
43,600
  
2002
1963
  
1
Casa Tierra
355 Orlando St.
El Cajon
CA
40
28,700
  
2002
1972
  
1
Coral Gardens
425 East Bradley
El Cajon
CA
200
182,000
  
2002
1976
  
1
Tierra del Sol/Norte
989 Peach Ave.
El Cajon
CA
156
117,000
  
2002
1969
  
1
Grand Regacy
2050 E. Grand Ave.
Escondido
CA
60
42,400
  
2002
1967
  
1
Mira Woods Villa
10360 Maya Linda Rd.
Mira Mesa
CA
355
262,600
  
2002
1982
  
1
Country Villas
283 Douglas Drive
Oceanside
CA
180
179,700
  
2002
1976
  
1
Bluffs II, The
6466 Friars Road
San Diego
CA
224
126,700
  
1997
1974
  
1
Emerald Palms
2271 Palm Ave.
San Diego
CA
152
133,000
  
2002
1986
  
1
Summit Park
8563 Lake Murray Blvd.
San Diego
CA
300
229,400
  
2002
1972
  
1
Vista Capri - East
4666 63rd St.
San Diego
CA
26
16,800
  
2002
1967
  
1
Vista Capri - North
3277 Berger Ave.
San Diego
CA
106
51,800
  
2002
1975
  
1
Carlton Heights
9705 Carlton Hills Blvd.
Santee
CA
70
48,400
  
2002
1979
  
1
Shadow Point
9830 Dale Ave.
Spring Valley
CA
172
131,200
  
2002
1983
  
       
12%
2,907
2,177,000
        
 
Riverside County
                  
1
Parcwood
1700 Via Pacifica
Corona
CA
312
270,000
  
2004
1989
  
1
Devonshire Apartments
2770 West Devonshire Ave.
Hemet
CA
276
207,200
  
2002
1988
  
       
2%
588
477,200
        
                     
65
Total Southern California
    
55%
13,755
11,202,700
        
                     
 
SEATTLE METROPOLITAN AREA
                
1
Emerald Ridge
3010 118th Avenue SE
Bellevue
WA
180
144,000
  
1994
1987
  
1
Foothill Commons
13800 NE 9th Place
Bellevue
WA
360
288,300
  
1990
1978
  
1
Palisades, The
13808 NE 12th
Bellevue
WA
192
159,700
  
1990
1977
  
1
Sammamish View
16160 SE Eastgate Way
Bellevue
WA
153
133,500
  
1994
1986
  
1
Woodland Commons
13700 NE 10th Place
Bellevue
WA
236
172,300
  
1990
1978
  
1
Canyon Pointe
1630 228th St. SE
Bothell
WA
250
210,400
  
2003
1990
  
1
Inglenook Court
14220 Juanita Drive, NE
Bothell
WA
224
183,600
  
1994
1985
  
1
Salmon Run at Perry Creek
2109 228th Street SE
Bothell
WA
132
117,100
  
2000
2000
  
1
Stonehedge Village
14690 143rd Blvd., NE
Bothell
WA
196
214,800
  
1997
1986
  
1
Park Hill at Issaquah
22516 SE 56th Street
Issaquah
WA
245
277,700
  
1999
1999
  
1
Peregrine Point
21209 SE 42nd Street
Issaquah
WA
67
85,900
  
2003
2003
  
1
Wandering Creek
12910 SE 240th
Kent
WA
156
124,300
  
1995
1986
  
1
Bridle Trails
6600 130th Avenue, NE
Kirkland
WA
92
73,400
  
1997
1986
  
1
Evergreen Heights
12233 NE 131st Way
Kirkland
WA
200
188,300
  
1997
1990
  
1
Laurels at Mill Creek
1110 164th Street SE
Mill Creek
WA
164
134,300
  
1996
1981
  
1
Anchor Village
9507 49th Avenue West
Mukilteo
WA
301
245,900
  
1997
1981
  
1
Castle Creek
7000 132nd Place, SE
Newcastle
WA
216
191,900
  
1998
1998
  
1
Brighton Ridge
2307 NE 4th Street
Renton
WA
264
201,300
  
1996
1986
  
1
Fairwood Pond
14700 SE Petrovitsky Rd.
Renton
WA
194
189,200
  
2004
1997
  
1
Forest View
650 Duvall Ave. NE
Renton
WA
192
182,500
  
2003
1998
  
1
Fountain Court
2400 4th Street
Seattle
WA
320
207,000
  
2000
2000
  
1
Linden Square
13530 Linden Avenue North
Seattle
WA
183
142,200
  
2000
1994
  
1
Maple Leaf
7415 5th Avenue, NE
Seattle
WA
48
35,500
  
1997
1986
  
1
Spring Lake
12528 35th Avenue, NE
Seattle
WA
69
42,300
  
1997
1986
  
1
Wharfside Pointe
3811 14th Avenue West
Seattle
WA
142
119,200
(2)
1994
1990
  
25
Total Seattle Metropolitan Area
    
19%
4,776
4,064,600
        
                     
 
PORTLAND METROPOLITAN AREA
                
1
Jackson School Village
300 NE Autumn Rose Way
Hillsboro
OR
200
196,800
  
1996
1996
  
1
Landmark Apartments
3120 NW John Olsen Ave.
Hillsboro
OR
285
282,900
  
1996
1990
  
1
Meadows @ Cascade Park
314 SE 19th Street
Vancouver
WA
198
199,300
  
1997
1989
  
1
Village @ Cascade Park
501 SE 123rd Avenue
Vancouver
WA
192
178,100
  
1997
1989
  
4
Total Portland Metropolitan Area
    
4%
875
857,100
        
                     
 
OTHER AREAS
                
1
St. Cloud Apartments
6525 Hilcroft
Houston
TX
302
306,800
  
2002
1968
  
1
      
1%
302
306,800
        
               
 
  
 
119
Multifamily Properties
    
24,992
20,854,000
  
1999
1982
  
 
4
Multifamily Properties Under Construction
 
777
686,100
        
                     
 
Avg. square footage
834
                
 
Avg. units per property
210
                
 
Avg. age of property
22
                
                     
 
(1) Also has 11,836 square feet of commercial/retail space.
                
 
(2) Also has 9,512 square feet of commercial space.
                
                     
 
OTHER REAL ESTATE ASSETS
                
 
Manufactured Housing Communities
                  
 
Green Valley
2130 Sunset Dr.
Vista
CA
157
pads
  
2002
1973
  
 
Riviera
2038 Palm St.
Las Vegas
NV
450
pads
  
2002
1969
  
 
Recreational Vehicle Parks
                  
 
Circle RV
1835 E. Main St.
El Cajon
CA
179
spaces
  
2002
1977
  
 
Vacationer
1581 E. Main St.
El Cajon
CA
159
spaces
  
2002
1973
  
 
Diamond Valley
344 N. State St.
Hemet
CA
224
spaces
  
2002
1974
  
 
Riviera RV
2200 Palm St.
Las Vegas
NV
136
spaces
  
2002
1969
  
 
Office Buildings
                  
 
Essex Corporate Headquarter Bldg.
925 E. Meadow Dr.
Palo Alto
CA
  
17,400
  
1997
1988
  
 
Valley Financial Office Building
2399 Camino Del Rio South
San Diego
CA
  
5,200
  
2002
1978
  
 
Moore Street Office Building
3205 Moore St.
San Diego
CA
  
2,000
  
2002
1957
  
 
Essex Southern Cal. Office Building
22110-22120 Clarendon St.
Woodland Hills
CA
  
38,940
  
2001
1982
  
 

 
  S-13  
 


Essex Markets Forecast 2005: Supply, Jobs and Apartment Market Conditions
                         
   
Residential Supply*
  
Job Forecast**
  
Forecast Market Conditions***
Market
  
New MF Supply
% of Total Stock
  
New SF Supply
% of Total Stock
  
Est.New Jobs Dec-Dec
% Growth
  
Estimated Y-o-Y Rent Growth
Estimated Year End Vacancy
   
 
      
 
  
 
 
  
 
 
Seattle
  
1,600
0.4%
  
9,600
1.5%
  
27,000
2.0%
  
2.5% to 3.5%
94.75%
Portland
  
2,600
1.1%
  
10,000
1.8%
  
19,000
2.0%
  
Flat
93.75%
   
 
      
 
  
 
 
  
 
 
San Francisco
  
1,800
0.5%
  
1,100
0.3%
  
14,500
1.5%
  
3.0% to 4.0%
95.00%
Oakland
  
2,100
0.8%
  
6,500
1.0%
  
18,500
1.8%
  
2.0% to 3.0%
95.00%
San Jose
  
1,200
0.6%
  
2,200
0.6%
  
10,000
1.2%
  
2.5% to 3.5%
95.00%
   
 
      
 
  
 
 
  
 
 
Ventura
  
500
1.0%
  
2,500
1.3%
  
5,000
1.7%
  
2.0%
95.00%
Los Angeles
  
9,000
0.6%
  
8,500
0.5%
  
50,000
1.2%
  
3.0% to 4.0%
96.00%
Orange
  
3,000
0.8%
  
6,000
1.0%
  
32,000
2.3%
  
3.5% to 4.5%
96.00%
San Diego
  
4,300
1.1%
  
9,300
1.4%
  
35,000
2.8%
  
2.5% to 3.5%
95.5%
So. Cal.
 
16,800
0.8%
 
26,300
0.8%
 
122,000
1.7%
 
2.75% to 3.75%
95.75%
                         
All data is an Essex Forecast
                    
                         
* New Residential Supply: represents Essex's internal estimate of actual deliveries during the year, which are
    
related to but can differ from the 12 Month trailing Permit Levels reported on Appendix A.
       
                         
** Job Forecast/Performance refers to the difference between Total Non-Farm Industry Employment (not
     
Seasonally Adjusted) projected through December 2005 over the comparable actual figures for December 2004. The first
   
column represents the current Essex forecast of the increase in Total Non-Farm Industry Employment. The second column
 
represents these forecasted new jobs as a percent of the December 2004 base.
       
                         
***The Forecast Market Conditions represents Essex's estimates of the Change in Rents/Vacancy Rates at the
    
end of 2005. The Estimated Year-over-Year Rent Growth represents the forecast change in Effective Market Rents for
   
December 2005 vs.December 2004 (where Market refers to the entire MSA apartment market, NOT the Essex portfolio).
 
The estimated Year End Vacancy represents Essex's forecast of Market Vacancy Rates for December 2005.
      

 
  S-14  
 


 
New Residential Supply: Permits as % of Current Stock
12 Month Permit Period: Trailing 12 Months December 2004
                         
 
Single Family Data
  
Multi-Family Data
  
All Residential Data
Market
Median SF Price (2004**)
2003 SF Affordability*
SF Stock 2000
SF Permits Last 12 Months
% of Stock
  
MF Stock 2000
MF Permits Last 12 months
% of Stock
  
Total Residential Permits Last 12 Months
% of Stock
Nassau-Suffolk
$414,800
88%
740,000
3,628
0.5%
  
240,000
668
0.3%
  
4,296
0.4%
New York PMSA
$390,400
57%
760,000
2,459
0.3%
  
2,920,000
15,377
0.5%
  
17,836
0.5%
Boston
$398,900
72%
1,530,000
7,994
0.5%
  
670,800
5,410
0.8%
  
13,404
0.6%
Baltimore
$250,500
109%
797,000
7,446
0.9%
  
268,000
2,672
1.0%
  
10,118
1.0%
Philadelphia
$198,100
138%
1,532,000
15,364
1.0%
  
515,100
5,143
1.0%
  
20,507
1.0%
Chicago
$270,400
100%
1,700,000
35,904
2.1%
  
1,404,900
8,758
0.6%
  
44,662
1.4%
Wash. D.C. PMSA
$362,400
85%
1,299,000
26,894
2.1%
  
644,300
9,785
1.5%
  
36,679
1.9%
Denver
$241,800
109%
582,000
16,380
2.8%
  
274,900
4,199
1.5%
  
20,579
2.4%
Minneapolis
$219,800
129%
818,000
20,091
2.5%
  
351,800
6,284
1.8%
  
26,375
2.3%
Dallas-Ft. Worth
$137,000
179%
1,381,000
44,707
3.2%
  
650,000
7,686
1.2%
  
52,393
2.6%
Miami/Ft. Lauderdale
$292,000
73%
717,000
24,494
3.4%
  
876,000
20,011
2.3%
  
44,505
2.8%
Houston
$137,500
171%
1,027,000
42,471
4.1%
  
547,700
10,427
1.9%
  
52,898
3.4%
Austin
$158,700
157%
326,000
13,800
4.2%
  
169,900
3,098
1.8%
  
16,898
3.4%
Atlanta
$159,700
171%
1,122,000
57,727
5.1%
  
467,800
16,179
3.5%
  
73,906
4.6%
Phoenix
$172,700
136%
970,000
56,896
5.9%
  
360,500
5,831
1.6%
  
62,727
4.7%
Orlando
$180,500
121%
482,000
27,485
5.7%
  
201,500
6,210
3.1%
  
33,695
4.9%
Las Vegas
$283,200
78%
440,000
31,741
7.2%
  
215,700
2,969
1.4%
  
34,710
5.3%
Totals
$253,831
118%
16,223,000
435,481
2.7%
  
10,778,900
130,707
1.2%
  
566,188
2.1%
                         
Seattle
$303,900
93%
656,000
11,795
1.8%
  
354,487
5,141
1.5%
  
16,936
1.7%
Portland
$215,100
112%
561,000
11,300
2.0%
  
225,335
3,979
1.8%
  
15,279
1.9%
                         
San Francisco
$633,300
53%
368,000
1,330
0.4%
  
344,000
2,831
0.8%
  
4,161
0.6%
Oakland
$454,000
79%
625,000
6,795
1.1%
  
270,000
3,958
1.5%
  
10,753
1.2%
San Jose
$524,000
63%
388,000
2,786
0.7%
  
192,000
2,497
1.3%
  
5,283
0.9%
                         
Los Angeles
$399,000
80%
1,877,000
11,933
0.6%
  
1,392,963
14,182
1.0%
  
26,115
0.8%
Ventura
$480,000
54%
199,000
1,742
0.9%
  
53,295
898
1.7%
  
2,640
1.0%
Orange
$536,000
62%
628,000
4,914
0.8%
  
340,800
3,695
1.1%
  
8,609
0.9%
San Diego
$578,300
49%
664,000
9,008
1.4%
  
375,664
5,335
1.4%
  
14,343
1.4%
                         
PNW
$262,966
102%
1,217,000
23,095
1.9%
  
579,822
9,120
1.6%
  
32,215
1.8%
                         
No Cal
$521,446
68%
1,381,000
10,911
0.8%
  
806,000
9,286
1.2%
  
20,197
0.9%
                         
So Cal
$464,680
69%
3,368,000
27,597
0.8%
  
2,162,722
24,110
1.1%
  
51,707
0.9%
                         
ESSEX
$436,672
75%
5,966,000
61,603
1.0%
 
3,548,543
42,516
1.2%
 
104,119
1.1%
Permits: Single Family equals 1 Unit, Multi-Family equals 5 or More Units
                
Sources: SF Prices - National Association of Realtors,Rosen Consulting Group : Permits, Total Residential Stock - U.S. Census, Axiometrics 
      
Median Home Prices - National Association of Realtors; DataQuick, Mortgage Rates - Freddie Mac, Median Household Incomes - US Census; BEA; Essex  
  
Single Family - Multi-Family Breakdown of Total Resdiences, Rosen Consulting Group, US Census, EASI, Essex
          
*Single Family Affordability - Equals the ratio of the actual Median Household Income to the Income required to purchase the Median Priced Home.  
  
The required Income is defined such that the Mortgage Payment is 35% of said Income, assuming a 10% Down Payment and a 30-year fixed mortgage rate (5.75%).
  
Median Household Income is estimated from US Census 2000 data and Income Growth from BEA and Popultation Growth from the US Census. 
      
**2004 Median Home Prices - Estimated from 3rd Quarter 2004 data
                  
 
 

 
  S-15