8-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, DC 20549

FORM 8-K

Current Report Pursuant to Section 13 or 15 (d) of the Securities Exchange Act of 1934

Date of Report (Date of Earliest Event Reported): February 8, 2006

ESSEX PROPERTY TRUST, INC.

(Exact Name of Registrant as Specified in its Charter)

001-13106

(Commission File Number)

Maryland	77-0369576
(State or Other Jurisdiction of Incorporation)	(I.R.S. Employer Identification No.)

925 East Meadow Drive, Palo Alto, California 94303

(Address of Principal Executive Offices) (Zip Code)

(650) 494-3700

(Registrant’s Telephone Number, Including Area Code)

Not Applicable

(Former Name or Former Address, if Changed Since Last Report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

o Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

o Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

o Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d2(b))

o Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)

Item 2.02. Results of Operations and Financial Condition

On February 8, 2006 Essex Property Trust, Inc. (the “Company”) issued a press release announcing the Company’s earnings for the quarter ended December 31, 2005. A copy of the press release is attached hereto as Exhibit 99.1 and incorporated by reference herein in its entirety.

The information in this report (including Exhibits 99.1 and 99.2) is being furnished pursuant to Item 2.02 and shall not be deemed to be "filed" for purposes of Section 18 of the Securities Exchange Act of 1934 (the "Exchange Act") or otherwise subject to the liabilities of that section, nor shall it be deemed to be incorporated by reference in any filing under the Securities Act of 1933 or the Exchange Act.

Item 9.01. Financial Statements and Exhibits.

(a) - (b) Not applicable.

(c) Exhibits.

The exhibits listed below are being furnished with this Form 8-K.

99.1	Press Release issued by Essex Property Trust, Inc. dated February 8, 2006
99.2	Supplemental Information

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

Date: February 8, 2006
	Essex Property Trust, Inc.
	By: /s/ Michael T. Dance
		Michael T. Dance
		Executive Vice President & Chief Financial Officer (Authorized Officer, Principal Financial Officer)

EXHIBIT INDEX

Exhibit
Number	Description
99.1	Press Release issued by Essex Property Trust, Inc. dated February 8, 2006
99.2	Supplemental Information

EX-99.1

FOR IMMEDIATE RELEASE

Mary C. Jensen

Director of Investor Relations

(650) 849-1656

Essex Announces 2005 Fourth Quarter and Annual Earnings Results

Net Operating Income Increases 6.5 Percent For The Fourth Quarter

Palo Alto, California—February 8, 2006—Essex Property Trust, Inc. (NYSE:ESS), announces its fourth quarter and annual operating results for the three and twelve months ended December 31, 2005.

Net income available to common stockholders for the three months ended December 31, 2005, totaled $4.7 million, or $0.20 per diluted share compared to $32.0 million, or $1.38 per diluted share for the three months ended December 31, 2004. For the twelve months ended December 31, 2005, net income available to common stockholders totaled $77.8 million, or $3.32 per diluted share, compared to $77.7 million, or $3.36 per diluted share for the twelve months ended December 31, 2004.

Funds From Operations (FFO) for the three months ended December 31, 2005, totaled $25.1 million, or $0.98 per diluted share compared to $29.4 million, or $1.14 per diluted share for the three months ended December 31, 2004. For the twelve months ended December 31, 2005, FFO totaled $115.1 million, or $4.48 per diluted share, compared to $114.4 million, or $4.49 per diluted share for the twelve months ended December 31, 2004.

"We are pleased to report another quarter of strong operating results," said Keith Guericke, President and Chief Executive Officer. "Our markets continue to benefit from improved economic conditions, as well as the inherent benefits of our supply-constrained markets. Mr. Guericke continued, “Each of our markets produced over 5% revenue growth and same-property NOI growth for the Company’s portfolio increased 6.5% for the quarter - we anticipate that rental demand will continue to improve in 2006, leading to above-average growth.”

FFO is a supplemental financial measurement defined by the National Association of Real Estate Investment Trusts (NAREIT) to measure and compare operating performance of equity REITs. A reconciliation of FFO to net income (the most directly comparable measure in accordance with U.S. generally accepted accounting principles) as well as a more comprehensive definition of FFO, and explanation as to why Essex believes this is a useful measure of the Company’s operating performance, is located in this press release.

The Company’s fourth quarter results include the following items:

§   A promote distribution in the amount of $1.0 million, resulting from the incentive distribution provisions of the Fund I agreement (included in FFO).

§   An impairment loss in the amount of $1.3 million resulting from the write-down of a property in Houston, Texas (included in FFO), which was acquired in the merger with John M. Sachs, Inc.

§   Pre-payment penalties and write-off of deferred charges in the amount of $1.6 million related to early termination of various mortgage notes payable (included in FFO).

FFO per diluted share for the quarter ended December 31, 2005 compared to the quarter ended December 31, 2004 was positively impacted by an increase in operating income of $0.22 per share. However, the results were offset by decreases of $0.11 in promote income, a $0.12 per share increase in other expenses (noted above), and $0.12 per share change in G&A expense and interest costs. Components of the change in FFO can be found on S-3 of the Company’s Supplemental Reporting Package.

Quarterly Results Summary

	Three Months Ended			Twelve Months Ended
	December 31,			December 31,
	2005	2004	Percent	2005	2004	Percent
			Change			Change
Property Revenues	$81,489	$73,728	10.5%	$316,340	$280,719	12.7%
Funds From Operations (FFO)	$25,052	$29,381	-14.7%	$115,090	$114,380	0.6%
Per Diluted Share:
Net Income Per Share	$0.20	$1.38	-85.5%	$3.32	$3.36	-1.2%
FFO Per Share	$0.98	$1.14	-14.0%	$4.48	$4.49	-0.2%

Portfolio Composition

The following table compares Essex’s regional concentrations for its multifamily portfolio as of December 31, 2005 and 2004, which includes all properties that are partially or wholly owned by the Company.

	As of December 31, 2005		As of December 31, 2004
	Number of Apartment Homes	%	Number of Apartment Homes	%
Southern California	13,382	50	13,479	54
San Francisco Bay Area	6,557	25	5,284	21
Seattle Metro. Area	5,471	21	4,776	19
Portland Metro. Area	875	3	875	4
Other	302	1	578	2
Total	26,587	100%	24,992	100%

Property Operations

The following operating results relate to the Company’s same-property portfolio, which excludes properties that do not have comparable results for the three months and twelve months ended December 31, 2005 and 2004. Comparable results may not be available for properties that have been recently developed or redeveloped and properties that have not been owned for the periods presented.

The table below illustrates the percentage change in same-property revenue, operating expenses, and net operating income for the three and twelve months ended December 31, 2005, compared to the three and twelve months ended December 31, 2004, for the Company’s multifamily properties:

	Quarter ended 12/31/05			Year Ended 12/31/05			2005 Original Guidance
	Rev.	Ops. Exp.	NOI	Rev.	Ops. Exp.	NOI	Rev.	Ops. Exp.	NOI
Southern California	5.9%	7.3%	5.2%	5.3%	4.4%	5.7%	3.3%	2.4%	3.8%
Northern California	5.9%	2.3%	7.8%	1.9%	1.8%	1.9%	1.0%	3.9%	-0.3%
Pacific Northwest	5.3%	-1.2%	9.2%	3.3%	1.1%	4.6%	1.8%	3.6%	0.9%
Same Prop. Avg.	5.8%	4.3%	6.5%	4.1%	3.0%	4.6%	2.5%	3.0%	2.3%

2

A breakdown of the same-property financial occupancies for Essex’s multifamily properties is as follows:

	For the Quarter Ended
	12/31/2005	9/30/2005	12/31/2004
Southern California	97.1%	97.2%	96.5%
San Francisco Bay Area	96.9%	97.3%	95.2%
Pacific Northwest	96.5%	97.3%	95.4%
Same-Property Average	96.9%	97.3%	95.9%

A breakdown of same-property concessions for Essex’s multifamily properties is as follows:

	For the Quarter Ended (in thousands)
	12/31/05	09/30/05	12/31/04
Southern California	$68.5	$121.2	$108.8
San Francisco Bay Area	26.5	76.5	168.6
Pacific Northwest	63.6	97.1	103.1
Same-Property Total	$158.6	$294.8	$380.5

Concessions for the Company’s consolidated portfolio were $324.6 for the quarter ended December 31, 2005, compared to $422.6 for the quarter ended September 30, 2005, and $735.9 for the quarter ended December 31, 2004. Average same-property concessions totaled $70 per turn for the quarter ended December 31, 2005, compared to $102 per turn for the quarter ended September 30, 2005, and $254 per turn for the quarter ended December 31, 2004.

The following is the sequential percentage change in same-property revenues and expenses for the three months ended December 31, 2005 versus the three months ended September 30, 2005:

	Q4 vs. Q3 2005
	Revenues	Expenses
Southern California	1.4%	3.0%
San Francisco Bay Area	1.3%	5.7%
Pacific Northwest	0.6%	-3.2%
Same-Property Average	1.2%	2.2%

Acquisitions

No acquisitions were made during the quarter. (Fund II activities can be seen in a separate section below.)

Subsequent to December 31, 2005, the Company acquired CBC and Chimney Sweep Apartments, aggregating 239 units, located in Isla Vista, California, which is adjacent to Santa Barbara, California for approximately $57.1 million.

Dispositions

No dispositions occurred during the quarter. However, the Company continues to evaluate the sale of select apartment communities to condominium conversion buyers.

Subsequent to December 31, 2005, the Company sold Casa Tiera and Vista Capri-East for $7.0 million.

3

Development

During the fourth quarter, the Company had three development projects in various stages of construction with combined estimated costs of $133.7 million.

·   Northwest Gatewayis a proposed 5-story apartment building aggregating 275 apartment homes, which is located in downtown Los Angeles. Upon completion, the luxury apartment community will offer 220 market-rate units and 55 affordable-rate units. The project is a joint venture between Essex and Meta Housing Corporation, which has obtained $47.0 million of tax-exempt bond financing, and will be drawn to fund future construction costs. Subsequent to December 31, 2005, the Company has renegotiated its joint venture agreement with Meta Housing Corp., and Essex now owns a 100% interest in the project.

·   Moorpark is a proposed 200-unit, Mediterranean-style apartment building, located in Moorpark, California.  The site is adjacent to City Hall and is approximately a three-minute walk to the town center area and the Metrolink train station, which provides direct access to the greater Los Angeles basin and downtown employment areas. Upon completion, this apartment community will offer a combination of three story garden-style apartment homes with attached garages as well as three-story podium buildings with covered garage parking. Construction is anticipated to begin in the second quarter of 2006.

·   Tuscana is a 30-unit, townhouse-style community, located in Tracy, California, which is owned by a taxable REIT subsidiary (TRS). Upon completion, this community will offer a combination of two and three story townhouses. Construction commenced during the first quarter of 2006.

The Company’s development pipeline and stabilization assumptions can be found in the Company’s current Supplemental Financial Reporting Package, on the “Development Communities” page, which is available at www.essexpropertytrust.com.

Redevelopment

The Company defines redevelopment communities as existing properties owned or recently acquired, which have been targeted for additional investment by the Company with the expectation of increased financial returns through property improvement. Redevelopment communities typically have apartment units that are not available for rent and, as a result, may have less than stabilized operations. As of December 31, 2005, the Company had ownership interests in six redevelopment communities aggregating 1,450 apartment units with estimated redevelopment costs of $36.8 million, of which approximately $23.5 million remains to be expended. These amounts exclude redevelopment projects owned by the Essex Apartment Value Fund II, L.P.

§   Kings Road -- a 196-unit apartment community located in Los Angeles, California, built in 1971 and purchased by Essex in 1997. The property's leasing office, clubroom and a new fitness center are complete. Interior renovations of apartment units include new cabinetry, flooring, appliances and fixtures. Most of the interiors have been renovated - the remaining units will be upgraded as they become vacant in the normal course of turnover. Subject to expected turnover, the project will be completed during the fourth quarter of 2006.

§   Mira Woods -- a 355-unit apartment community located in Mira Mesa, California (San Diego County), built in 1982, and acquired by Essex in 2002. Exterior enhancements to the building's façade and common hallways are complete. The existing leasing office and fitness center are anticipated to be remodeled, and carports are being built where open parking currently exists. Common area renovations are expected to be finished in early 2006. Unit interior renovations include upgraded appliances, fixtures, flooring, kitchen cabinets, and resurfaced countertops.

§   Palisades -- a 192-unit apartment community located in Bellevue, Washington, built in 1977, and acquired by Essex in 1990. As part of phase I, renovations to the property’s exteriors, roof and outside amenities are complete. The Company has begun phase II of the unit interiors, which will include upgraded countertops, flooring, kitchen cabinets, upgraded appliances, fixtures. Subject to turnover rates, are estimated to be completed in the fourth quarter of 2006.

4

Redevelopment Cont’d

§   Avondale at Warner Center -- a 446-unit apartment community located in Woodland Hills, California, built in 1970, and acquired by Essex in 1999. Upgrades to the current leasing office are complete. Common area hallway improvements are currently in progress and include new entry doors, carpeting, lighting, as well as elevator upgrades. The second part of this project includes interior renovations, which include cabinet re-facing, countertop replacements, upgraded kitchen appliances, flooring, electrical fixtures and new plumbing. Walk-in closets will be upgraded with mirrored doors and built-in closet organizers. Unit interiors will be upgraded as they become vacant in the normal course of turnover. Subject to expected turnover, the project will be completed during the fourth quarter of 2007.

§   Bridle Trails -- a 108-unit apartment community located in Kirkland, Washington, built in 1986, and acquired by Essex in 1997. During the quarter, common area upgrades commenced, and include the renovation of the existing leasing office and addition of a new fitness center. The exterior upgrades are estimated to be completed during first half of 2006. Interior renovations will include cabinet re-facing, countertop replacements, upgraded kitchen appliances, flooring, electrical fixtures and new plumbing. Framing and roofs have been completed on two of the buildings where the Company is adding 16 additional units. These units will be comprised of four, 1-bedroom, 1-bath units, totaling approximately 750 square feet each, and twelve, 2-bedroom, 2-bath units totaling approximately 1,000 square feet each. The anticipated delivery date of the new units is scheduled for the first half of 2006.

§   Sammamish View -- a 153-unit apartment community located in Bellevue, Washington. It was constructed in 1986 and acquired by Essex it in 1994. Renovation initiatives commenced during the quarter to upgrade the leasing office/clubhouse and unit interiors. Apartment interior upgrades will include cabinet re-facing, countertop replacements, upgraded kitchen appliances, flooring and electrical fixtures. Leasing office/clubhouse renovations will include a new state-of-the-art fitness center and media room. This project is scheduled to be complete in early 2007.

Financing Activities

During October and November 2005, the Company’s operating partnership, Essex Portfolio, L.P., raised $225 million from the sale of exchangeable senior notes (the “Notes”) with a coupon of 3.625% due 2025.

On or after November 1, 2020, the notes will be exchangeable at the option of the holder into cash and, in certain circumstances at Essex’s option, shares of Company’s common stock at an initial exchange price of $103.25 per share subject to certain adjustments. The notes will also be exchangeable prior to November 1, 2020, but only upon the occurrence of certain specified events. On or after November 4, 2010, the operating partnership may redeem all or a portion of the notes at a redemption price equal to the principal amount plus accrued and unpaid interest. Upon redemption, if the Company’s common stock price exceeds the exchange price, it will issue shares of common stock as additional interest. Note holders may require the operating partnership to repurchase all or a portion of the notes at a purchase price equal to the principal amount plus accrued and unpaid interest (including additional interest, if any), on the notes on November 1, 2010, November 1, 2015 and November 1, 2020.

With the proceeds from the sale of the exchangeable senior notes, the Company repurchased $25 million in common stock and paid down $135 million on the outstanding lines of credit. During the quarter, the Company paid-off ten mortgage notes payable totaling $89 million with fixed rates ranging from 6.5% to 7.9%.

The Company originated two new mortgage notes payable totaling $35 million with fixed rates of 5.5% and 5.6%.

5

Essex Apartment Value Fund II, L.P.

Essex and several institutional partners formed the Essex Apartment Value Fund II, L.P. (“Fund II”) to broaden the Company’s capital alternatives. The Company’s co-investment activities enhance its financial flexibility by providing an alternative source of capital to fund new acquisition and development transactions. Listed below are the Fund II activities that occurred during the quarter.

On December 23, 2005, Fund II acquired The Enclave Apartments, a 637-unit apartment community located in San Jose, California for $127.0 million. Approximately $83.2 million in debt was assumed by Fund II in connection with the transaction.

Other Company Information

Essex's total market capitalization as of December 31, 2005 was approximately $3.9 billion. A detailed calculation of such market capitalization is included in the Company’s supplemental financial information, which can be obtained from the Company’s web site. The Company’s mortgage notes payable had an average maturity of 8.7 years and an average interest rate of 5.9 percent. As of December 31, 2005, the Company’s debt-to-total-market-capitalization ratio was 35.1 percent.

On December 8, 2005, the Company’s Board of Directors declared a regular quarterly cash dividend of $.81 per common share, payable January 13, 2006, to shareholders of record as of December 31, 2005. On an annualized basis, the dividend represents a distribution of $3.24 per common share.

In addition, the Board of Directors declared a quarterly distribution of $0.48828 per share, which represents an annual distribution of $1.9531 per share, on its 7.8125% Series F Cumulative Redeemable Preferred Shares. Distributions are payable on March 1, 2006 to shareholders of record as of February 14, 2006. Shares of the Series F Preferred Stock can be traded Over The Counter (OTC) under ticker symbol ESS-FP.

Guidance

On December 23, 2005, the Company released its FFO guidance for 2006, and based on the assumptions disclosed in that press release, the Company's estimated range of EPS and FFO per diluted share is as follows:

	Earnings Per Diluted Share ($)	FFO Per Diluted Share ($)
1Q-06	0.27 - 0.31	1.06 - 1.10
2Q-06	0.32 - 0.36	1.12 - 1.16
3Q-06	0.52 - 0.58	1.18 - 1.24
4Q-06	0.52 - 0.58	1.29 - 1.35
FY-06	1.63 - 1.83	4.65 - 4.85

Conference Call with Management

The Company will host an earnings conference call with management on Wednesday, February 9, 2006, at 10:00 a.m. PST - 1:00 p.m. EST, which will be broadcast live via the Internet at www.essexpropertytrust.com, and accessible via phone by dialing (800) 811-0667 - a pass code is not required.

A rebroadcast of the live call will be available online for 90 days and digitally for 7 days. To access the replay online, go to www.essexpropertytrust.com and select the third quarter earnings link. To access the replay digitally, dial (888) 203-1112 using the passcode, 322246. If you are unable to access the information via the Company’s Web site, please contact the Investor Relations department at investors@essexpropertytrust.com or by calling (650) 494-3700.

6

Company Profile

Essex Property Trust, Inc., located in Palo Alto, California and traded on the New York Stock Exchange (ESS), is a fully integrated real estate investment trust (REIT) that acquires, develops, redevelops, and manages multifamily residential properties in selected West Coast communities. Essex currently has ownership interests in 126 multifamily properties (26,760 units), and has 505 units in various stages of development.

This press release and accompanying supplemental financial information will be filed electronically on Form

8-K with the Securities and Exchange Commission and can be accessed from the Company’s Web site at www.essexpropertytrust.com. If you are unable to obtain the information via the Web, please contact the Investor Relations Department at (650) 494-3700.

Funds from Operations

Funds from Operations, as defined by the National Association of Real Estate Investment Trusts (“NAREIT”) is generally considered by industry analysts as an appropriate measure of performance of an equity REIT. Generally, FFO adjusts the net income of equity REITS for non-cash charges such as depreciation and amortization of rental properties, gains/ losses on sales of real estate and extraordinary items. Management considers FFO to be a useful financial performance measurement of an equity REIT because, together with net income and cash flows, FFO provides investors with an additional basis to evaluate the performance and ability of a REIT to incur and service debt and to fund acquisitions and other capital expenditures. FFO does not represent net income or cash flows from operations as defined by generally accepted accounting principles (GAAP) and is not intended to indicate whether cash flows will be sufficient to fund cash needs. It should not be considered as an alternative to net income as an indicator of the REIT's operating performance or to cash flows as a measure of liquidity. FFO does not measure whether cash flow is sufficient to fund all cash needs including principal amortization, capital improvements and distributions to shareholders. FFO also does not represent cash flows generated from operating, investing or financing activities as defined under GAAP. Management has consistently applied the NAREIT definition of Funds from Operations to all periods presented, however, Funds from Operations as disclosed by other REITs may not be comparable to the Company's calculation of FFO.

	Three Months Ended		Twelve Months Ended
	December 31,		December 31,
	2005	2004	2005	2004
Funds from operations
Net income (1)	$5,213	$32,513	$79,716	$79,693
Adjustments:
Depreciation and amortization	20,033	18,228	79,978	71,656
Co-investments (2)	685	685	1,188	2,501
Gain on sale of real estate	-	-	-5,000	-7,909
Gain on sale of real estate – discontinued operations	-	-	-29,219	-
Gain on sale of co-investment activities, net	-1,032	-25,173	-18,116	-39,242
Minority interests	641	3,404	8,348	8,365
Depreciation – discontinued operations	-	212	148	1,268
Dividends to preferred stockholders – Series F	-488	-488	-1,953	-1,952
Funds from operations	$25,052	$29,381	$115,090	$114,380

(1)   Net income does not include the possible impact, if any, of the Company’s adoption of FIN 47 “Accounting for Conditional Asset Retirement Obligations” for the quarter ended December 31, 2005.  The effect of adoption, which would be presented as a cumulative effect of change in accounting principle, may reduce net income and earnings per share; however it has no impact on FFO.

(2)   Amount includes the following: (i) depreciation addback for Fund II assets and minority interests, (ii) joint venture NOI, and (iii) City Heights land lease income not recognized for GAAP.

7

Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995:

This press release includes “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Such forward-looking statements include statements regarding 2006 earnings per share and 2006 FFO per share estimates, trends in apartment fundamentals, future improvements in our operating results and our same store results, anticipated timing and costs of the completion and stabilization of property developments and redevelopments, the Company’s projected development projects in 2006, potential sales of our properties to condominium conversion buyers, and future construction costs. The Company's actual results may differ materially from those projected in such forward-looking statements. Factors that might cause such a difference include, but are not limited to, changes in market demand for rental units and the impact of competition and competitive pricing, changes in economic conditions, unexpected delays in the development and stabilization of development and redevelopment projects, unexpected difficulties in leasing of development and redevelopment projects, total costs of renovation and development investments exceeding our projections and other risks detailed in the Company's filings with the Securities and Exchange Commission (SEC). All forward-looking statements are made as of today, and the Company assumes no obligation to update this information. For more details relating to risk and uncertainties that could cause actual results to differ materially from those anticipated in our forward-looking statements, and risks to our business in general, please refer to our SEC filings, including our most recent Report on Form 10-K for the year ended December 31, 2005.

8

EX-99.2

E S S E X  P R O P E R T Y  T R U S T, I N C.
Consolidated Operating Results	Three Months Ended							Twelve Months Ended
(Dollars in thousands, except per share amounts)	December 31,							December 31,
	2005				2004			2005			2004
Revenues:
Rental and other property		$	81,489		$	73,728		$	316,340		$	280,719
Management and other fees from affiliates			1,843			4,828			10,951			23,146
			83,332			78,556			327,291			303,865
Expenses:
Property operating, excluding real estate taxes			20,769			18,744			77,967			71,237
Real estate taxes			6,867			6,742			27,384			24,563
Depreciation and amortization			20,033			18,228			79,978			71,656
Interest			18,748			17,238			73,614			63,023
Amortization of deferred financing costs			480			408			1,970			1,587
General and administrative			5,574			4,099			19,148			18,084
Other expenses			2,927			-			5,827			-
			75,398			65,459			285,888			250,150
Gain on sale of real estate			-			-			6,391			7,909
Interest and other income, net			689			1,078			8,621			3,173
Equity income in co-investments			1,455			24,770			19,030			41,230
Minority interests			(4,713	)		(6,885	)		(21,465	)		(27,473	)
Income from continuing operations before income
tax provision			5,365			32,060			53,980			78,554
Income tax provision			(152	)		(49	)		(2,538	)		(257	)
Income from continuing operations			5,213			32,011			51,442			78,297
Income and gain from discontinued operations,
net of minority interests			-			502			28,274			1,396
Net income			5,213			32,513			79,716			79,693
Dividends to preferred stockholders - Series F			(488	)		(488	)		(1,953	)		(1,952	)
Net income available to common stockholders		$	4,725		$	32,025		$	77,763		$	77,741
Net income per share - basic		$	0.21		$	1.39		$	3.38		$	3.39
Net income per share - diluted		$	0.20		$	1.38		$	3.32		$	3.36

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)		2005			2004			2005			2004
Rental and other property
Rental		$	78,705		$	71,246		$	305,144		$	271,153
Other property			2,784			2,482			11,196			9,566
Rental and other property		$	81,489		$	73,728		$	316,340		$	280,719
Management and other fees from affiliates
Management		$	782		$	769		$	3,696		$	3,552
Development and redevelopment			16			262			204			1,277
Promote distribution from Fund I - non-recurring			1,045			3,797			7,051			18,292
Miscellaneous - non-recurring			-			-			-			25
Management and other fees from affiliates		$	1,843		$	4,828		$	10,951		$	23,146
General and administrative
Total general and administrative		$	7,650		$	5,694		$	26,354		$	23,723
Allocated to property operating expenses - administrative			(1,330	)		(1,189	)		(5,150	)		(4,507	)
Capitalized and incremental to real estate under development			(746	)		(406	)		(2,056	)		(1,132	)
Net general and administrative		$	5,574		$	4,099		$	19,148		$	18,084
Interest and other income, net
Interest income		$	225		$	356		$	678		$	951
Lease income			418			416			1,667			1,665
Participating loan (condo conversion)			-			-			6,121			-
Miscellaneous - non-recurring			46			306			155			557
Interest and other income		$	689		$	1,078		$	8,621		$	3,173
Equity income in co-investments
Equity income in co-investments		$	423		$	(403	)	$	1,035		$	2,158
Gain on sale of co-investment activities, net			1,032			25,173			18,116			39,242
Early extinguishment of debt - non-recurring			-			-			(121	)		(170	)
Equity income in co-investments		$	1,455		$	24,770		$	19,030		$	41,230
Minority interests
Limited partners of Essex Portfolio, L.P.		$	518		$	3,277		$	5,119		$	7,941
Perpetual preferred distributions			2,559			2,559			10,238			14,175
Series Z and Z-1 incentive units			123			75			424			281
Third party ownership interests			456			(88	)		1,426			(942	)
Down REIT limited partners' distributions			1,057			1,062			4,258			4,443
Write off of Series E preferred unit offering costs			-			-			-			1,575
Minority interests		$	4,713		$	6,885		$	21,465		$	27,473

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,
		2005			2004			2005			2004
Funds from operations
Net income (1)		$	5,213		$	32,513		$	79,716		$	79,693
Adjustments:
Depreciation and amortization			20,033			18,228			79,978			71,656
Co-investments (2)			685			685			1,188			2,501
Gain on sale of real estate			-			-			(5,000	)		(7,909	)
Gain on sale of real estate - discontinued operations			-			-			(29,219	)		-
Gain on sale of co-investment activities, net			(1,032	)		(25,173	)		(18,116	)		(39,242	)
Minority interests			641			3,404			8,348			8,365
Depreciation - discontinued operations			-			212			148			1,268
Dividends to preferred stockholders - Series F			(488	)		(488	)		(1,953	)		(1,952	)
Funds from operations		$	25,052		$	29,381		$	115,090		$	114,380
Components of the change in FFO
Same property NOI		$	2,724					$	10,886
Non-same property NOI			2,887						15,186
Other - corporate and unconsolidated co-investments			204						(4,014	)
Promote distribution from Fund I - non-recurring			(2,752	)					(11,241	)
Interest expense and amortization of deferred financing costs			(1,582	)					(10,974	)
General and administrative			(1,475	)					(1,064	)
Other expenses			(2,927	)					(5,827	)
TRS activities			(103	)					5,231
Minority interests			(591	)					3,187
Income from discontinued operations			(502	)					459
Depreciation - discontinued operations			(212	)					(1,119	)
Changes in Funds from operations		$	(4,329	)				$	710
Funds from operations per share - diluted		$	0.98		$	1.14		$	4.48		$	4.49
Percentage increase			-14.0	%					-0.2	%
Weighted average number of shares outstanding diluted (3)			25,538,884			25,665,019			25,693,637			25,490,265

(1)	Net income does not include the possible impact, if any, of the company's adoption of FIN 47 "Accounting for Conditional Asset Retirement Obligations" for the quarter ended December 31, 2005. The effect of adoption, which would be presented as a cumulative effect of change in accounting principle, mayreduce net income and earnings per share; however it has no impact on FFO.
(2)	Amount includes the following: (i) depreciation addback for Fund II assets and minority interests, (ii) joint venture NOI, and (iii) City Heights land lease income not recognized for GAAP.
(3)	Assumes conversion of the weighted average operating partnership interests in the Operating Partnership into shares of the Company's common stock.

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

S-3

E S S E X  P R O P E R T Y  T R U S T, I N C.
Consolidated Balance Sheets
(Dollars in thousands)
	December 31, 2005			December 31, 2004
Real Estate:
Land and land improvements	$	554,449		$	536,600
Buildings and improvements		1,946,780			1,834,594
		2,501,229			2,371,194
Less: accumulated depreciation		(401,154	)		(329,652	)
		2,100,075			2,041,542
Real estate investment held for sale, net of accumulated depreciation of
$496 as of December 31, 2004		-			14,445
Investments		27,228			49,712
Real estate under development		37,143			38,320
		2,164,446			2,144,019
Cash and cash equivalents		28,274			31,899
Other assets		31,455			30,561
Deferred charges, net		15,115			10,738
Total assets	$	2,239,290		$	2,217,217
Mortgage notes payable	$	1,104,918		$	1,067,449
Exchangeable bonds		225,000			-
Lines of credit		25,000			249,535
Other liabilities		67,998			63,826
Deferred gain		2,193			5,000
Total liabilities		1,425,109			1,385,810
Minority interests		233,214			240,130
Stockholders' Equity:
Common stock		2			2
Series F cumulative redeemable preferred stock, liquidation value		25,000			25,000
Additional paid-in-capital		632,646			646,744
Distributions in excess of accumulated earnings		(77,341	)		(80,469	)
Accumulated other comprehensive income		660			-
Total liabilities and stockholders' equity	$	2,239,290		$	2,217,217

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, 2005
(Dollars in thousands)
	Percentage of					Weighted			Weighted
	Total			Balance		Average			Average Maturity
	Debt			Outstanding		Interest Rate			In Years
Mortgage notes payable
Fixed rate - secured		67	%	$	918,193		6.3	%		5.3
Tax exempt variable (1)		14	%		186,725		4.2	%		25.4
Total mortgage notes payable		81	%		1,104,918		5.9	%		8.7
Exchangeable bonds (2)		17	%		225,000		3.6	%
Line of credit - secured (3)		2	%		25,000		3.6	%
Line of credit - unsecured (4)		-			-		-
		2	%		25,000		3.6	%
Total debt		100	%	$	1,354,918		5.6	%
Scheduled principal payments (excludes lines of credit)
		2006		$	26,192
		2007			81,964
		2008			155,732
		2009			34,438
		2010			159,344
Thereafter					872,248
Total				$	1,329,918

Capitalized interest for the quarter ended December 31, 2005 was approximately $453.
(1)	Subject to interest rate protection agreements.
(2)	Exchangeable bonds total $225 million and mature in November 2025. This is an unsecured obligation of the operating partnership, and is fully and unconditionally guaranteed by Essex Property Trust, Inc.
(3)	Secured line of credit commitment is $100 million and matures in January 2009.
	This line is secured by six of Essex's multifamily communities. The underlying interest rate is currently the Freddie Mac Reference Rate plus .55% to .59%.
(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, 2005
(Dollars and shares in thousands, except per share amounts)
Total debt	$	1,354,918
Common stock and potentially dilutive securities
Common stock outstanding		22,859
Limited partnership units (1)		2,438
Options-treasury method		227
Total common stock and potentially dilutive securities		25,524		shares
Common stock price per share as of December 31, 2005	$	92.20
Market value of common stock and potentially dilutive securities	$	2,353,313
Perpetual preferred units/stock	$	155,000		7.865% weighted average pay rate
Total equity capitalization	$	2,508,313
Total market capitalization	$	3,863,231
Ratio of debt to total market capitalization		35.1	%
(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, 2005 and 2004
(Dollars in thousands)
			Southern California					Northern California					Pacific Northwest					Other real estate assets (1)					Total
			2005		2004		% Change	2005		2004		% Change	2005		2004		% Change	2005		2004		% Change		2005	2004		% Change
Revenues:
	Same property revenue		$	39,845	$	37,639	5.9%	$	13,936	$	13,155	5.9%	$	12,950	$	12,303	5.3%	$	-	$	-	n/a	$	66,731	$	63,097	5.8%
	Non same property revenue (2)			9,189		6,869			2,784		2,065			1,670		964			1,115		733			14,758		10,631
		Total Revenues	$	49,034	$	44,508		$	16,720	$	15,220		$	14,620	$	13,267		$	1,115	$	733		$	81,489	$	73,728
Property operating expenses:
	Same property operating expenses		$	12,759	$	11,894	7.3%	$	4,599	$	4,497	2.3%	$	4,614	$	4,671	-1.2%	$	-	$	-	n/a	$	21,972	$	21,062	4.3%
	Non same property operating expenses (2)			2,619		2,026			1,172		809			669		402			1,204		1,187			5,664		4,424
		Total property operating expenses	$	15,378	$	13,920		$	5,771	$	5,306		$	5,283	$	5,073		$	1,204	$	1,187		$	27,636	$	25,486
Common distributions declared
Net operating income:
	Same property net operating income		$	27,086	$	25,745	5.2%	$	9,337	$	8,658	7.8%	$	8,336	$	7,632	9.2%	$	-	$	-	n/a	$	44,759	$	42,035	6.5%
	Non same property operating income (2)			6,570		4,843			1,612		1,256			1,001		562			(89)		(454)			9,094		6,207
		Total net operating income	$	33,656	$	30,588		$	10,949	$	9,914		$	9,337	$	8,194		$	(89)	$	(454)		$	53,853	$	48,242
Same property operating margin				68%		68%			67%		66%			64%		62%		n/a		n/a				67%		67%
Same property turnover percentage				47%		47%			50%		47%			53%		45%		n/a		n/a				49%		47%
Same property concessions			$	69	$	109		$	27	$	169		$	64	$	103		$	-	$	-		$	160	$	381
Average same property concessions per turn (3)			$	60	$	183		$	55	$	453		$	98	$	239		$	-	$	-		$	70	$	254
Net operating income percentage of total				63%		62%			20%		21%			17%		17%			0%		0%			100%		100%
Loss to lease (4)			$	8,849				$	2,886				$	2,758				$	n/a				$	14,493
	Loss to lease as a percentage
	of rental income			4.7%					4.7%					4.5%					n/a					4.6%
Reconciliation of apartment units at end of period
	Same property apartment units			10,340					3,911					5,173					-					19,424
	Consolidated Apartment Units			12,784		12,166			4,621		4,689			5,831		5,651			302		578			23,538		23,084
	Joint Venture			598		1,313			1,936		595			515		-			-		-			3,049		1,908
	Under Development			505		407			-		370			-		-			-		-			505		777
	Total apartment units at end of period			13,887		13,886			6,557		5,654			6,346		5,651			302		578			27,092		25,769
		Percentage of total		51%		54%			24%		22%			24%		22%			1%		2%			100%		100%
Average same property financial occupancy				97.1%		96.5%			96.9%		95.2%			96.5%		95.4%		n/a		n/a				96.9%		95.9%
(1)		Includes apartment communities located in other geographic areas, other rental properties and commercial properties.
(2)		Includes properties which subsequent to September 30, 2004 were either acquired or in a stage of development or redevelopment without stabilized operations.
(3)		Average same property concessions per turn is the dollar amount per unit resulting from the same property concessions divided by the product of the same property turnover percentage times the same property apartment units.
(4)		Loss to lease represents the annualized difference between market rents (without considering the impact of rental concessions) and contractual rents. These numbers include the Company's pro-rata interest in unconsolidated properties.

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, 2005, December 31, 2004 and September 30, 2005
(Dollars in thousands)
			December 31,		December 31,					September 30,		Sequential
	Units		2005		2004		% Change			2005		% Change
Southern California
Ventura County		1,739	$	6,510	$	6,265		3.9	%	$	6,500		0.2	%
Los Angeles County		3,736		16,794		15,691		7.0	%		16,475		1.9	%
Orange County		2,037		8,492		7,987		6.3	%		8,332		1.9	%
San Diego County		2,552		7,376		7,066		4.4	%		7,298		1.1	%
Riverside County		276		673		630		6.8	%		674		0.0	%
Total Southern California		10,340	$	39,845	$	37,639		5.9	%	$	39,279		1.4	%
Northern California
San Francisco MSA		175	$	781	$	709		10.2	%	$	770		1.4	%
Santa Clara County		1,982		7,253		6,895		5.2	%		7,124		1.8	%
Alameda County		1,116		3,450		3,261		5.8	%		3,450		0.0	%
Contra Costa County		638		2,452		2,290		7.1	%		2,411		1.7	%
Total Northern California		3,911	$	13,936	$	13,155		5.9	%	$	13,755		1.3	%
Pacific Northwest
Seattle		4,298	$	11,045	$	10,468		5.5	%	$	10,998		0.4	%
Portland		875		1,905		1,835		3.8	%		1,882		1.2	%
Total Pacific Northwest		5,173	$	12,950	$	12,303		5.3	%	$	12,880		0.6	%
Total same property revenue		19,424	$	66,731	$	63,097		5.8	%	$	65,914		1.2	%

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, 2005

(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 and Joint Venture Transactions- Consolidated

Northwest Gateway (1)

Los Angeles, CA

275

$

71.1

$

16.9

$

54.2

Dec-07

Sep-08

n/a

n/a

Moorpark

Moorpark, CA

200

43.2

5.0

38.2

Dec-07

Aug-08

n/a

n/a

Tuscana

Tracy, CA

30

8.5

4.3

4.2

Jul-06

Jan-07

n/a

n/a

Pre-development

-

10.9

10.9

-

n/a

n/a

Subtotal - direct development

505

133.7

37.1

96.6

Stabilized Communities - Fourth Quarter 2005

None

(1) The Company will receive 75% of cash flow up to a 22.67% priority return, and 50% of cash flow thereafter.

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, 2005
(Dollars in thousands)
			Estimated		Incurred		Remaining		Redevelopment
Project Name	Units		Cost		To Date		Cost		Start Date
Kings Road, Los Angeles, CA		196		6,116		3,805		2,311		Jan-04
Mira Woods, Mira Mesa, CA		355		5,724		2,784		2,940		Sep-04
Palisades - Phase I and II, Bellevue, WA		192		5,866		2,035		3,831		Sep-04
Avondale at Warner Center, Woodland Hills, CA		446		11,422		3,148		8,274		Oct-04
Bridle Trails, Kirkland, WA		108		4,547		1,497		3,050		May-05
Sammamish View, Bellevue, WA		153		3,150		21		3,129		Dec-05
Total		1,450	$	36,825	$	13,290	$	23,535

Re-stabilized Communities - Fourth Quarter 2005

No properties were re-stablized in the fourth quarter of 2005. Hillcrest Park - Phase II, Newbury Park, CA redevelopment was completed in the fourth quarter of 2005, and will be included in same property operations during the first quarter of 2006.

Restabilized operations is defined as the month that the property reaches at least 95% occupancy after completion of the redevelopment projects. A component of these redevelopments are upgrades to unit interiors, which are completed in the normal course of unit turnover.

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, 2005							Debt								Essex
(In thousands)				Book		Estimated				Interest	Maturity	Value of	Company		Equity
				Value		Value		Amount	Type	Rate	Date	Equity	Ownership		Value
Joint Ventures
	Essex Apartment Value Fund, L.P. (Fund I)
		Net assets (1)	$	582	$	2,947						2,947	21.4%	$	631
	Essex Apartment Value Fund II, L.P. (Fund II)
		Carlmont Woods, Belmont, CA						13,332	Fixed	4.89%	Dec-2013
		Echo Ridge, Snoqualmie, WA						13,652	Fixed	5.01%	Sep-2014
		Enclave, San Jose, CA						23,160	Fixed	7.26%	Jan-2018
		Enclave, San Jose, CA (2)						60,000	Variable	3.55%	Dec-2029
		Harbor Cove, Foster City, CA						35,949	Fixed	4.89%	Dec-2013
		Morning Run, Monroe, WA						14,106	Fixed	5.10%	Oct-2014
		Parcwood, Corona, CA						26,175	Fixed	4.89%	Dec-2013
		Regency Towers, Oakland, CA						11,386	Fixed	5.16%	Mar-2015
		Tower @ 801, Seattle, WA						19,907	Fixed	4.91%	Aug-2014
		Line of credit						67,650	Var.	LIBOR+0.875%	Jun-2007
				18,854		352,924		285,317				67,607	28.2%		19,065
		Capitalized costs		486											486
				19,340											19,551
Other				7,306											7,306
			$	27,228										$	27,488
	(1)	Net assets primarily consist of cash proceeds less estimated liabilities from the sale of River Terrace and Kelvin properties.

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

S-11

E S S E X  PR O P E R T Y  T R U S T, I N C.
Consolidated Co-Investments - December 31, 2005
(Dollars in thousands)
The Company enters into co-investment transactions with third party developers, owners and investors of apartment properties. In accordance with FIN 46R, the Company consolidates certain of these co-investment transactions, resulting in minority interests corresponding to the ownership interest of the third-party developer, owner or investor.
The following table summarizes the consolidated co-investment transactions:
										Operations for the year ended
	Balance as of December 31, 2005									December 31, 2005
	Investment in		Related		Minority			Down-REIT				Operating
	Real Estate		Debt		Interest			Units (1)		Revenue		Expenses		NOI
Down-REITs:
Anchor Village		11,132		10,750		2,718			121,188		2,282		968		1,314
Barkley Apartments		9,805		5,081		2,392			80,987		2,184		708		1,477
Brookside Oaks		21,321		14,539		9,363			230,938		2,178		624		1,553
Capri at Sunny Hills		16,692		11,896		4,867			196,828		2,138		504		1,634
Hearthstone Apartments		13,789		9,652		3,951			90,591		2,175		560		1,615
Hidden Valley (Parker Ranch)		46,583		33,977		6,089			62,647		5,022		1,054		3,968
Highridge Apartments		21,333		19,043		6,701			321,249		4,964		1,552		3,412
Montejo Apartments		9,150		5,981		1,644			39,118		1,625		426		1,199
Treehouse Apartments		12,487		8,053		3,331			76,366		2,116		630		1,486
Valley Park Apartments		16,000		10,202		2,913			71,236		2,557		564		1,993
Villa Angelina Apartments		21,130		13,796		2,611			71,678		3,365		806		2,559
		199,422		142,970		46,580			1,362,826		30,606		8,396		22,210
Other Co-investments transactions:
Derian Office Building		17,760		-		-			n/a (note 2)		1,715		448		1,267
City Heights		32,335		32,850		-			n/a (note 3)		8,485		3,055		5,430
The Bluffs		9,127		12,569		(226	)		n/a		2,711		822		1,888
Northwest Gateway (Development)		16,865		-		1,000			n/a (note 4)		-		-		-
(1) Represents the number of Down-REIT units that are currently outstanding. Generally, Down-REIT units can be redeemed at the holder's election for cash equal to the current price of Essex's common stock.
(2) Essex has mortgage loans to the owners of this property with an aggregate principal balance outstanding of $23.8 million as of December 31, 2005. This building was 100% leased and occupied as of December 31, 2005.
(3) The Company owns the land and has leased the improvements to an unrelated third-party investor. The leashold interest entitles the Company to receive a monthly payment during the 34 year term of the lease. The Company may be required to sell its interest in the property anytime after 2009, in which case, the Company is entitled to receive 20% of the net sales price (without considering related debt), plus an incentive payment equal to $1.47 million per year since the formation of the venture in 2002.
(4) The project is a joint venture between Essex and Meta Housing Corporation, which has obtained $47.0 million of tax-exempt bond financing, which will be drawn to fund future construction costs. Subsequent to December 31, 2005, the Company has renegotiated its joint venture agreement with Meta Housing Corp., and Essex now owns a 100% interest in the project.

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

S-12

	ESSEX PROPERTY TRUST, INC.
	REAL ESTATE INFORMATION
	31-Dec-05
						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	Enclave, The	4355 Renaissance Drive	San Jose	CA	637	525,463		2005	1998
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
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
				11%	2,897	2,448,763
	Alameda County
1	Stevenson Place (The Apple)	4141 Stevenson Blvd.	Fremont	CA	200	146,200		1983	1971
1	Waterstone at Fremont (Mountain Vista )	39600 Fremont Blvd	Fremont	CA	526	433,100		2000	1975
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	Regency Towers	1130 Third Ave.	Oakland	CA	178	140,900		2005	1975
1	Summerhill Commons	36826 Cherry Street	Newark	CA	184	139,000		1987	1987
				7%	1,820	1,452,800
	Contra Costa County
1	San Marcos (Vista del Mar)	Hilltop Drive at Richmond Pkwy	Richmond	CA	432	407,600		2003	2003
1	Bel Air (The Shores)	2000 Shoreline Drive	San Ramon	CA	462	391,000		1995	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
				4%	1,070	1,005,400
	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	CA	99	64,000		1999	1973
1	Vista Belvedere	15 Red Hill Circle	Tiburon	CA	76	78,300		2004	1963
				1%	175	142,300
26	Total San Francisco Bay Area			25%	6,557	5,463,063
	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
1	Marbella	600 South Detroit Street	Los Angeles	CA	60	50,108		2005	1991
	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
				19%	5,046	4,051,808
	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
	Moorpark development		Moorpark	CA	200	172,230
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
	Orange County			8%	2,236	1,933,500
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
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	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
				9%	2,323	2,114,600
	SOUTHERN CALIFORNIA (cont'd)
	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	Mission Hills	218 Rancho Del Oro	Oceanside	CA	282	244,000		2005	1984
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%	3,189	2,421,000
	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
66	Total Southern California			50%	13,382	10,998,108
	SEATTLE METROPOLITAN AREA
1	Cedar Terrace	3205 115th Ave. NE	Bellevue	WA	180	174,200		2005	1984
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	Morning Run	18463 Blueberry Lane	Monroe	WA	222	221,786		2005	1991
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
1	Tower @ 801	801 Pine Street	Seattle	WA	173	118,500		2005	1970
1	Echo Ridge	34907 SE Kinsey Street	Snoqualmie	WA	120	124,359		2005	2000
29	Total Seattle Metropolitan Area			21%	5,471	4,703,445
	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			3%	875	857,100
	OTHER AREAS
1	St. Cloud Apartments	6525 Hilcroft	Houston	TX	302	306,800		2002	1968
1				1%	302	306,800
	126	Multifamily Properties			26,587	22,328,516		1999	1983
	3	Multifamily Properties Under Construction			505	376,488
	Avg. square footage	840
	Avg. units per property	211
	Avg. age of property	21
	(1) Also has 11,836 square feet of commercial/retail space.
	(2) Also has 9,512 square feet of commercial space.
	OTHER REAL ESTATE ASSETS
	Manufactured Housing Communities
	Green Valley	2130 Sunset Dr.	Vista	CA	157	pads		2002	1973
	Recreational Vehicle Parks
	Circle RV	1835 E. Main St.	El Cajon	CA	179	spaces		2002	1977
	Vacationer	1581 E. Main St.	El Cajon	CA	159	spaces		2002	1973
	Diamond Valley	344 N. State St.	Hemet	CA	224	spaces		2002	1974
	Office Buildings
	Essex Corporate Headquarter Bldg.	925 E. Meadow Dr.	Palo Alto	CA		17,400		1997	1988
	Derian Office Building	17461 Derian Av.	Irvine	CA		110,000		2000	1983
	Essex Southern Cal. Office Building	22110-22120 Clarendon St.	Woodland Hills	CA		38,940		2001	1982
						166,340

New Residential Supply: Permits as % of Current Stock
12 Month Permit Period: Trailing 12 Months December 2005
	Single Family Data					Multi-Family Data			All Residential Data
Market	Median SF Price (2005**)	2005 SF Affordability*	SF Stock 2000	SF Permits Last 12 Months	% of Stock	MF Stock 2000	MF Permits Last 12 months	% of Stock	Total Residential Permits Last 12 Months	% of Stock
Nassau-Suffolk	$471,000	78%	740,000	4,368	0.6%	240,000	483	0.2%	4,851	0.5%
New York PMSA	$461,000	50%	760,000	2,525	0.3%	2,920,000	21,475	0.7%	24,000	0.7%
Boston	$431,000	72%	1,530,000	7,974	0.5%	670,800	7,704	1.1%	15,678	0.7%
Philadelphia	$231,000	108%	1,532,000	15,090	1.0%	515,100	4,595	0.9%	19,685	1.0%
Baltimore	$282,000	100%	797,000	8,448	1.1%	268,000	2,761	1.0%	11,209	1.1%
Chicago	$275,000	96%	1,700,000	36,278	2.1%	1,404,900	12,569	0.9%	48,847	1.6%
Wash. D.C. PMSA	$441,000	80%	1,299,000	25,315	1.9%	644,300	10,160	1.6%	35,475	1.8%
Minneapolis	$233,000	121%	818,000	17,181	2.1%	351,800	4,448	1.3%	21,629	1.8%
Denver	$254,000	108%	582,000	17,586	3.0%	274,900	2,747	1.0%	20,333	2.4%
Miami/Ft. Lauderdale	$386,000	53%	717,000	23,076	3.2%	876,000	21,385	2.4%	44,461	2.8%
Dallas-Ft. Worth	$147,000	166%	1,381,000	49,322	3.6%	650,000	9,840	1.5%	59,162	2.9%
Houston	$145,000	163%	1,027,000	51,134	5.0%	547,700	10,630	1.9%	61,764	3.9%
Austin	$167,000	155%	326,000	17,076	5.2%	169,900	5,266	3.1%	22,342	4.5%
Atlanta	$171,000	158%	1,122,000	60,952	5.4%	467,800	10,965	2.3%	71,917	4.5%
Phoenix	$268,000	83%	970,000	53,964	5.6%	360,500	7,531	2.1%	61,495	4.6%
Orlando	$261,000	85%	482,000	26,520	5.5%	201,500	8,961	4.4%	35,481	5.2%
Las Vegas	$313,000	68%	440,000	30,358	6.9%	215,700	6,979	3.2%	37,337	5.7%
Totals	$290,589	104%	16,223,000	447,167	2.8%	10,778,900	148,499	1.4%	595,666	2.2%
Seattle	$342,000	81%	656,000	12,082	1.8%	354,487	5,464	1.5%	17,546	1.7%
Portland	$253,000	99%	561,000	12,728	2.3%	225,335	3,745	1.7%	16,473	2.1%
San Francisco	$755,000	44%	368,000	1,025	0.3%	344,000	3,241	0.9%	4,266	0.6%
Oakland	$655,000	50%	625,000	7,066	1.1%	270,000	3,599	1.3%	10,665	1.2%
San Jose	$711,000	52%	388,000	2,503	0.6%	192,000	2,980	1.6%	5,483	0.9%
Los Angeles	$505,000	45%	1,877,000	12,235	0.7%	1,392,963	11,323	0.8%	23,558	0.7%
Ventura	$564,000	58%	199,000	2,625	1.3%	53,295	898	1.7%	3,523	1.4%
Orange	$696,000	46%	628,000	4,164	0.7%	340,800	2,712	0.8%	6,876	0.7%
San Diego	$615,000	40%	664,000	7,485	1.1%	375,664	5,652	1.5%	13,137	1.3%
PNW	$300,974	89%	1,217,000	24,810	2.0%	579,822	9,209	1.6%	34,019	1.9%
No Cal	$697,381	49%	1,381,000	10,594	0.8%	806,000	9,820	1.2%	20,414	0.9%
So Cal	$565,787	45%	3,368,000	26,509	0.8%	2,162,722	20,585	1.0%	47,094	0.9%
ESSEX	$542,229	55%	5,966,000	61,913	1.0%	3,548,543	39,614	1.1%	101,527	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 (6.0%).
Median Household Income is estimated from US Census 2004 data and Income Growth from BEA and Population Growth from the US Census.
**2005 Median Home Prices - 3rd Quarter Estimates: National Realtors Association

Essex Markets Forecast 2006: Supply, Jobs and Apartment Market Conditions
	Residential Supply*				Job Forecast**		Forecast Market Conditions***
Market	New MF Supply	% of Total Stock	New SF Supply	% of Total Stock	Est.New Jobs Dec-Dec	% Growth	Estimated Y-o-Y Rent Growth	Estimated Year End Occupancy
Seattle	2,300	0.6%	11,000	1.6%	36,000	2.6%	4.0%	95.25%
Portland	3,250	1.4%	11,000	2.0%	27,000	2.8%	2.5%	95.00%
San Francisco	2,300	0.6%	1,000	0.3%	14,000	1.5%	4.5%	96.00%
Oakland	2,300	0.8%	6,700	1.1%	20,000	1.9%	3.5%	95.50%
San Jose	2,400	1.2%	2,300	0.6%	12,000	1.4%	4.0%	96.00%
No. Cal.	7,000	0.9%	10,000	0.7%	46,000	1.6%	4.5%	96.00%
Ventura	700	1.3%	2,500	1.2%	7,000	2.5%	3.0%	95.00%
Los Angeles	9,200	0.6%	10,000	0.5%	60,000	1.5%	4.25%	96.00%
Orange	4,000	0.8%	4,500	0.7%	27,000	1.8%	4.5%	96.00%
San Diego	4,800	1.2%	9,000	1.3%	24,000	1.9%	3.0%	95.0%
So. Cal.	18,700	0.8%	26,000	0.8%	118,000	1.6%	4.0%	95.75%
All data is an Essex Forecast
U.S. Economic Assumptions: G.D.P. - 3.75% Growth, Jobs - 1.7% Growth
* New Residential Supply: represents Essex's internal estimate of actual deliveries during the year, which are
related to but can differ from the 12 Month trailing Permit Levels reported on New Residential Supply schedule.
** Job Forecast/Performance refers to the difference between Total Non-Farm Industry Employment (not
Seasonally Adjusted) projected through December 2006 over the comparable actual figures for December 2005. The first
column represents the current Essexforecast of the increase in Total Non-Farm Industry Employment. The second column
represents these forecasted new jobs as a percent of the December 2005 base.
***The Forecast Market Conditions represents Essex's estimates of the Change in Rents/Occupnacy Rates at the
end of 2006. The Estimated Year-over-Year Rent Growth represents the forecast change in Effective Market Rents for
December 2006 vs.December 2005 (where Market refers to the entire MSA apartment market, NOT the Essex portfolio).
The estimated Year End Occupancy represents Essex's forecast of Market Occupancy Rates for December 2006.