8-K

UNITED STATES 

SECURITIES AND EXCHANGE COMMISSION 

Washington, DC 20549 

FORM 8-K 

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

Date of Report (Date of Earliest Event Reported): March 31, 2008

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 240.14d-2(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 April 8, 2008 Essex Property Trust, Inc. (the “Company”) issued a press release announcing the Company’s earnings for the quarter ended March 31, 2008. 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 April 30, 2008

99.2 Supplemental Information

SIGNATURES

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.

Essex Property Trust

/s/ Michael T. Dance

Name: Michael T. Dance

Title: Executive Vice President & Chief Financial Officer

Date: April 30, 2008

EXHIBIT INDEX 

Exhibit Number	Description
99.1	Press Release issued by Essex Property Trust, Inc. dated April 30, 2008
99.2	Supplemental Information

EX-99.1

Exhibit 99.1

FOR IMMEDIATE RELEASE

Nicole christian

(650) 849-1649

Essex Announces First Quarter 2008 Earnings Results

Recurring funds from operations increased 10.1% for the first quarter

Palo Alto, California—April 30, 2008—Essex Property Trust, Inc. (NYSE:ESS) announces its first quarter 2008 earnings results and related business activities.

Funds from Operations (“FFO”) for the quarter ended March 31, 2008, totaled $45.9 million, or $1.67 per diluted share, compared to $45.4 million, or $1.70 per diluted share for the quarter ended March 31, 2007.

The Company’s FFO, excluding non-recurring items, increased 10.1% per diluted share or $4.5 million for the quarter ended March 31, 2008 compared to the quarter ended March 31, 2007. A reconciliation of FFO for non-recurring items can be found on page S-3 in the Company’s Financial Supplemental Information package. The following non-recurring items impacted the Company’s first quarter results for 2008 and 2007:

·  In 2008, the Company received $7.5 million and recognized $6.3 million of preferred income from the  repayment of its preferred interest in the Waterstone at Fremont Apartments.

·  In 2007, the Company received approximately $33.9 million for its share of proceeds from the sale of City Heights Apartments, resulting in a gain on sale of $13.7 million (not included in FFO), and $10.3 million in fee income (resulting in $10.1 million of FFO).

·  In 2007, gains related to the sale of 13 condominium units at Peregrine Point generated FFO of $0.3 million.

Net income available to common stockholders for the quarter ended March 31, 2008 totaled $15.7 million, or $0.63 per diluted share, compared to net income available to common stockholders of $35.3 million, or $1.46 per diluted share, for the quarter ended March 31, 2007.

SAME-PROPERTY OPERATIONS

Same-property operating results exclude properties that do not have comparable results.  The table below illustrates the percentage change in same-property revenues, operating expenses, and net operating income (“NOI”) for the quarter ended March 31, 2008, compared to the quarter ended March 31, 2007:

	Q1 2008 compared to Q1 2007
	Revenues			Expenses			NOI
Southern California		2.3	%		3.6	%		1.8	%
Northern California		11.8	%		5.8	%		14.8	%
Seattle Metro		9.7	%		5.6	%		11.8	%
Same-property average		5.7	%		4.4	%		6.4	%

925 East Meadow Drive Palo Alto California 94313 telephone 650 494 3700 facsimile 650 494 8743

www.essexpropertytrust.com

The table below illustrates the sequential percentage change in same-property revenues, expenses, and NOI for the quarter ended March 31, 2008 versus the quarter ended December 31, 2007:

	Q1 2008 compared to Q4 2007
	Revenues			Expenses			NOI
Southern California		0.2	%		-0.3	%		0.4	%
Northern California		1.5	%		-5.3	%		5.0	%
Seattle Metro		1.1	%		2.0	%		0.7	%
Same-property average		0.6	%		-3.1	%		2.5	%

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

	3/31/08			12/31/07			3/31/07
Southern California		95.1	%		95.5	%		95.5	%
Northern California		97.1	%		97.3	%		95.3	%
Seattle Metro		97.0	%		96.5	%		95.7	%
Same-property average		95.9	%		96.1	%		95.5	%

ACQUISITIONS/DISPOSITIONS

During January 2008, the Company received $7.5 million from a related party and recognized preferred income of $6.3 million from the repayment of its preferred interest in Waterstone at Fremont, a 526-unit community located in Fremont, California.

DEVELOPMENT

In the first quarter, the Company had 16 projects in various stages of development totaling approximately 3,110 units. The development pipeline totaled approximately $958 million with $338 million spent as of March 31, 2008.

Construction is near completion at Eastlake 2851 in Seattle, Washington, a community owned by the Essex Apartment Value Fund II, L.P. (“Fund II”).  During the first quarter pre-leasing activities commenced and initial occupancy began in April 2008.  Currently, the community has leased or pre-leased approximately 62 of the 127 units.

At The Grand, a 238-unit community located in the Lake Merritt area of Oakland, California, the 22-story high rise has been topped out, and a third of the exterior skin and windows are in place with interior improvements currently underway. The Grand is scheduled to open in January of 2009 and pre-leasing will commence in the fourth quarter of 2008.

In April 2008, the Company purchased approximately 7.1 acres of land in Sunnyvale, California for the Tasman Place project.  Tasman Place will consist of approximately 284 residential units and 48,300 square feet of retail space spread out over 3 five-story buildings. The contemporary Spanish-Mediterranean style property will have a mix of one-bedroom and two-bedroom units with an average of 934 square feet. Amenities will include a fitness center, business center, recreation room and a pool and spa. The total estimated cost of the development is $139 million with construction commencing in February 2009.

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

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REDEVELOPMENT ACTIVITIES

The Company defines redevelopment communities as existing properties owned or recently acquired, which have been targeted for additional investment by the Company with the expectation of increased financial returns through property improvement.  Redevelopment communities typically have apartment units that are not available for rent and, as a result, may have less than stabilized operations.  As of March 31, 2008, the Company had ownership interests in 15 redevelopment communities aggregating 4,237 apartment units with estimated redevelopment costs of $146 million.

Planning, approval and other predevelopment activities continued at Foothill Commons, Woodland Commons, and Marina Cove.  At Marina Cove, roofing has been replaced and dryer additions are being installed as the Company awaits city approvals for enhancements to the leasing office and amenities.

Unit turns continued upon move out of the resident at The Montclaire, and consisted of standard and deluxe scopes.  In addition, the Company has expanded the exterior renovation scope to include re-siding certain buildings, new balcony railings, and window replacements for units adjacent to city streets.

Renovation of the leasing center and restoration of the entrance is substantially completed at The Renaissance Apartments, a 168-unit community owned by Fund II.  Interior of the units has been renovated with new appliances, granite countertops and cabinets, and updates to hallways and corridors throughout the community. The total project cost is $5.3 million with $4.0 million expended at the end of the quarter.

A summary of the major redevelopment projects can be found on page S-10 in the Company’s Supplemental Financial Information Package.

LIQUIDITY AND BALANCE SHEET

During the first quarter, the Company under its stock repurchase program repurchased and retired 143,400 shares of its common stock for approximately $13.7 million, at an average stock price of $95.64 per share.

In January 2008, the Company obtained a mortgage loan in the amount of $49.9 million secured by Mirabella, a community located in Marina Del Rey, California.  The loan has a fixed interest rate of 5.21%, which matures in January 2018.

In January 2008, the Company paid-off two mortgage loans aggregating $12.1 million secured by The Bluffs II, a community located in San Diego, California.  The loans for $7.3 million and $4.8 million had fixed interest rates of 7.49% and 6.89%, respectively.

In March 2008, the Company refinanced two mortgage loans aggregating $9.3 million with a combined weighted average interest rate of 7.0% secured by Brentwood, a community located in Santa Ana, California, into a $20.6 million loan with a fixed interest rate of 5.47%, which matures in March 2018.

During April 2008, the Company obtained a mortgage loan secured by Park Hill at Issaquah, a community located in Issaquah, Washington, in the amount of $31.5 million, with a fixed interest rate of 5.55%, which matures in April 2018.  In conjunction with this transaction, the Company settled a $30 million forward-starting swap for a $1.7 million payment to the counterparty.  The amortization of the settlement of the swap increases the effective interest rate on the mortgage loan to 6.1%.

GUIDANCE

The Company tightens its previous full year 2008 FFO Guidance to a range of $5.90 to $6.15 per diluted share, and its full year 2008 Earnings per Share (“EPS”) guidance of $1.85 to $2.10 per diluted share.

CONFERENCE CALL WITH MANAGEMENT

The Company will host an earnings conference call with management to discuss its quarterly results on Thursday, May 1, 2008, at 9:00 a.m. PDT – 12:00 p.m. EDT, which will be broadcast live via the Internet at www.essexpropertytrust.com, and accessible via phone by dialing (888) 679-8037 and entering the passcode #41894200.

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A rebroadcast of the live call will be available online for 90 days and digitally for 7 days. To access the replay online, go to www.essexpropertytrust.com and select the first quarter earnings link. To access the replay digitally, dial (888) 286-8010 using the passcode, 38539231. If you are unable to access the information via the Company’s Web site, please contact the Investor Relations department at investors@essexpropertytrust.com or by calling (650) 494-3700.

CORPORATE PROFILE

Essex Property Trust, Inc., located in Palo Alto, California and traded on the New York Stock Exchange (NYSE:ESS), is a fully integrated real estate investment trust (REIT) that acquires, develops, redevelops, and manages apartment communities located in highly desirable, supply-constrained markets. Essex currently has ownership interests in 133 apartment communities (26,963 units), and has 1,658 units in active development.

This press release and accompanying supplemental financial information will be filed electronically on Form 8-K with the Securities and Exchange Commission and can be accessed from the Company’s Web site at www.essexpropertytrust.com. If you are unable to obtain the information via the Web, please contact the Investor Relations Department at (650) 494-3700.

FUNDS FROM OPERATIONS RECONCILIATION

Funds from Operations, as defined by the National Association of Real Estate Investment Trusts (“NAREIT”) is generally considered by industry analysts as an appropriate measure of performance of an equity REIT. Generally, FFO adjusts the net income of equity REITS for non-cash charges such as depreciation and amortization of rental properties, gains/losses on sales of real estate and extraordinary items. Management considers FFO to be a useful financial performance measurement of an equity REIT because, together with net income and cash flows, FFO provides investors with an additional basis to evaluate the performance and ability of a REIT to incur and service debt and to fund acquisitions and other capital expenditures and ability to pad dividends.

FFO does not represent net income or cash flows from operations as defined by generally accepted accounting principles (“GAAP”) and is not intended to indicate whether cash flows will be sufficient to fund cash needs. It should not be considered as an alternative to net income as an indicator of the REIT's operating performance or to cash flows as a measure of liquidity. FFO does not measure whether cash flow is sufficient to fund all cash needs including principal amortization, capital improvements and distributions to shareholders. FFO also does not represent cash flows generated from operating, investing or financing activities as defined under GAAP. Management has consistently applied the NAREIT definition of FFO to all periods presented. However, there is judgment involved and other REITs’ calculation of FFO may vary from the NAREIT definition for this measure, and thus their disclosures of FFO may not be comparable to Essex’s calculation.

The following table sets forth the Company’s calculation of FFO for the three months ended March 31, 2008 and 2007.

	Three Months Ended March 31,
Funds from operations	2008		2007
Net income available to common stockholders	$	15,704	$	35,303
Adjustments:
Depreciation and amortization		27,734		21,718
Gains not included in FFO		-		(14,040	)
Minority interests and co-investments		2,427		2,406
Funds from operations	$	45,865	$	45,387

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SAFE HARBOR STATEMENT UNDER THE PRIVATE LITIGATION REFORM ACT OF 1995:

This press release includes “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended.  Such forward-looking statements include statements under the caption “Guidance” with respect to, 2008 FFO per share and 2008 earnings per share, and statements and estimates set forth on pages S-9 and S-10 of the Company’s Financial Supplemental Information Package regarding anticipated timing of the construction start, construction completion, initial occupancy, and stabilization of property developments and redevelopments and the anticipated costs of property developments and redevelopments, and statements regarding the projects and anticipated costs of the Company’s development pipeline.  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, 2007.

###

 5

EX-99.2

Exhibit 99.2

E S S E X  P R O P E R T Y  T R U S T, I N C.

Consolidated Operating Results	Three Months Ended
(Dollars in thousands, except per share amounts)	March 31,
	2008			2007
Revenues:
Rental and other property	$	101,477		$	89,666
Management and other fees from affiliates		1,227			1,040
		102,704			90,706
Expenses:
Property operating, excluding real estate taxes		24,564			22,068
Real estate taxes		8,417			7,526
Depreciation and amortization		27,734			21,156
Interest		20,183			18,266
Amortization of deferred financing costs		722			677
General and administrative		6,625			6,096
		88,245			75,789
Earnings from operations		14,459			14,917
Interest and other income		2,768			2,182
Equity income co-investments		6,630			1,982
Minority interests		(5,843	)		(5,307	)
Income before discontinued operations		18,014			13,774
Income and gain from discontinued operations, net of minority interests		-			23,772
Net income		18,014			37,546
Dividends to preferred stockholders		(2,310	)		(2,243	)
Net income available to common stockholders	$	15,704		$	35,303
Net income per share - basic	$	0.63		$	1.51
Net income per share - diluted	$	0.63		$	1.46

See Company’s 10-Q for additional disclosures

S-1

E S S E X  P R O P E R T Y  T R U S T, I N C.

Consolidated Operating Results	Three Months Ended
Selected Line Item Detail	March 31,
(Dollars in thousands)	2008			2007
Rental and other property
Rental	$	95,802		$	84,482
Other property		5,675			5,184
Rental and other property	$	101,477		$	89,666
Management and other fees from affiliates
Management	$	780		$	781
Development and redevelopment		447			259
Management and other fees from affiliates	$	1,227		$	1,040
General and administrative
General and administrative	$	10,325		$	8,782
Allocated to property operating expenses - administrative		(2,229	)		(1,394	)
Capitalized to real estate		(1,471	)		(1,292	)
Net general and administrative	$	6,625		$	6,096
Interest and other income
Interest income	$	1,174		$	858
Lease income, net		1,594			1,324
Interest and other income	$	2,768		$	2,182
Minority interests
Limited partners of Essex Portfolio, L.P.	$	1,893		$	1,578
Perpetual preferred distributions		2,559			2,559
Third party ownership interests		259			127
DownREIT limited partners' distributions		1,132			1,043
Minority interests	$	5,843		$	5,307

See Company’s 10-Q for additional disclosures

S-2

E S S E X  P R O P E R T Y  T R U S T, I N C.

Consolidated Funds From Operations	Three Months Ended
(Dollars in thousands, except share and per share amounts)	March 31,
	2008			2007			% Change
Funds from operations
Net income available to common stockholders	$	15,704		$	35,303
Adjustments:
Depreciation and amortization		27,734			21,718
Gains not included in FFO		-			(14,040	)
Minority interests and co-investments (1)		2,427			2,406
Funds from operations	$	45,865		$	45,387
FFO per share-diluted	$	1.67		$	1.70			-1.4 %
Components of the change in FFO
Non-recurring items:
Preferred and promote interests		(6,318	)		(10,068	)
Income generated from TRS activities, net of taxes and expenses		-			(270	)
Funds from operations excluding non-recurring items		39,547			35,049
FFO excluding non-recurring items per share-diluted	$	1.44		$	1.31			10.1 %
Changes in recurring items:
Same-property NOI	$	3,344
Non-same property NOI		5,080
Management and other fees from affiliates		187
Interest expense and amortization of deferred financing costs		(1,962	)
Other items, net		(2,151	)
	$	4,498
Weighted average number of shares outstanding diluted (2)		27,398,605			26,735,117

(1) Amount includes the following 2008 adjustments: (i) minority interest related to Operating Partnership units totaling $1.9 million, (ii) depreciation add back and preferred interest for co-investments not recognized for GAAP totaling $0.5 million.

(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-Q for additional disclosures

S-3

E S S E X  P R O P E R T Y  T R U S T, I N C.

Consolidated Balance Sheets
(Dollars in thousands)
	March 31, 2008			December 31, 2007
Real Estate:
Land and land improvements	$	670,494		$	670,494
Buildings and improvements		2,468,318			2,447,265
		3,138,812			3,117,759
Less:  accumulated depreciation		(567,820	)		(541,987	)
		2,570,992			2,575,772
Real estate under development		258,651			233,445
Co-investments		63,700			64,191
		2,893,343			2,873,408
Cash and cash equivalents		22,571			22,483
Marketable securities		4,045			2,017
Notes and other receivables		47,350			49,632
Other assets		22,642			21,190
Deferred charges		11,325			11,593
Total assets	$	3,001,276		$	2,980,323
Mortgage notes payable	$	1,312,300		$	1,262,873
Exchangeable bonds		225,000			225,000
Lines of credit		148,183			169,818
Other liabilities		133,541			104,442
Total liabilities		1,819,024			1,762,133
Minority interests		278,365			281,960
Series G cumulative convertible preferred stock, liquidation value		145,912			145,912
Stockholders' Equity:
Common stock		2			2
Series F cumulative redeemable preferred stock, liquidation value		25,000			25,000
Additional paid-in-capital		844,250			857,109
Distributions in excess of accumulated earnings		(92,345	)		(82,805	)
Accumulated other comprehensive income (loss)		(18,932	)		(8,988	)
Total stockholders' equity		757,975			790,318
Total liabilities and stockholders' equity	$	3,001,276		$	2,980,323

See Company’s 10-Q for additional disclosures

S-4

E S S E X  P R O P E R T Y  T R U S T, I N C.

Debt Summary - March 31, 2008
(Dollars in thousands)
	Percentage of					Weighted			Weighted
	Total			Balance		Average			Average Maturity
	Debt			Outstanding		Interest Rate			In Years
Mortgage notes payable
Fixed rate - secured		64	%	$	1,074,976		6.3	%		5.0
Tax exempt variable (1)		14	%		237,324		3.8	%		22.2
Total mortgage notes payable		78	%		1,312,300		5.9	%		8.1
Exchangeable bonds (2)		13	%		225,000		3.6	%
Line of credit - secured (3)		6	%		100,000		4.5	%
Line of credit - unsecured (4)		3	%		47,000		5.4	%
Line of credit - unsecured (5)		0	%		1,183		5.2	%
Total lines of credit		9	%		148,183		4.8	%
Total debt		100	%	$	1,685,483		5.6	%
						Weighted
Scheduled principal payments (excludes lines of credit)						Average
						Interest Rate
	2008			$	89,502		6.7	%
	2009				36,476		6.4	%
	2010				154,163		8.1	%
	2011				152,597		6.4	%
	2012				32,077		5.2	%
	Thereafter				1,072,485		5.1	%
	Total			$	1,537,300		5.7	%
Capitalized interest for the quarter was approximately $2.0 million.

(1) Substantially all tax exempt variable debt is subject to interest rate protection agreements.

(2) Exchangeable bonds total $225 million and mature in November 2025. This is an unsecured obligation of the operating partnership, and is fully and unconditionally guaranteed by Essex Property Trust, Inc.

(3) Secured line of credit commitment is $100 million and matures in January 2009.  This line is secured by eight of Essex's apartment communities.

The underlying interest rate is currently the Freddie Mac Reference Rate plus .55% to .59%.

(4) Unsecured line of credit commitment is $200 million and matures in March 2009.

The underlying interest rate on this line is based on a tiered rate structure tied to the Company's corporate ratings and is currently at LIBOR plus 0.80%.

(5) Unsecured revolving line of credit commitment is $10 million and matures in March 2009.

The underlying interest rate on this line is based on the bank's Prime Rate less 2.0%.

See Company’s 10-Q for additional disclosures

S-5

E S S E X  P R O P E R T Y  T R U S T, I N C.

Capitalization - March 31, 2008
(Dollars and shares in thousands, except per share amounts)
Total debt	$	1,685,483
Common stock and potentially dilutive securities
Common stock outstanding		24,746
Limited partnership units (1)		2,519
Options-treasury method		130
Total common stock and potentially dilutive securities		27,395	shares
Common stock price per share as of March 31, 2008	$	113.98
Market value of common stock and potentially dilutive securities	$	3,122,482
Preferred units/stock	$	304,500
Total equity capitalization	$	3,426,982
Total market capitalization	$	5,112,465
Ratio of debt to total market capitalization		33.0%

(1) Assumes conversion of all outstanding operating partnership interests in the Operating Partnership into shares of the Company's common stock.

See Company’s 10-Q for additional disclosures

S-6

E S S E X  P R O P E R T Y  T R U S T, I N C.

Property Operating Results - Quarter ended March 31, 2008 and 2007
(Dollars in thousands)
	Southern California									Northern California									Seattle Metro									Other real estate assets (1)									Total
	2008			2007			% Change			2008			2007			% Change			2008			2007			% Change			2008			2007			% Change			2008			2007			% Change
Revenues:
Same-property revenue	$	47,272		$	46,193			2.3	%	$	19,245		$	17,221			11.8	%	$	15,185		$	13,848			9.7	%	$	494		$	492			0.4	%	$	82,196		$	77,754			5.7	%
Non-same property revenue (2)		7,474			5,554						9,384			4,569						1,744			1,141						679			648						19,281			11,912
Total Revenues	$	54,746		$	51,747					$	28,629		$	21,790					$	16,929		$	14,989					$	1,173		$	1,140					$	101,477		$	89,666
Property operating expenses:
Same-property operating expenses	$	14,762		$	14,252			3.6	%	$	6,118		$	5,785			5.8	%	$	5,042		$	4,776			5.6	%	$	343		$	354			-3.1	%	$	26,265		$	25,167			4.4	%
Non-same property operating expenses (2)		2,486			1,606						3,413			1,365						475			273						342			1,183						6,716			4,427
Total property operating expenses	$	17,248		$	15,858					$	9,531		$	7,150					$	5,517		$	5,049					$	685		$	1,537					$	32,981		$	29,594
Net operating income:
Same-property net operating income	$	32,510		$	31,941			1.8	%	$	13,127		$	11,436			14.8	%	$	10,143		$	9,072			11.8	%	$	151		$	138			9.4	%	$	55,931		$	52,587			6.4	%
Non-same property operating income (2)		4,988			3,948						5,971			3,204						1,269			868						337			(535	)					12,565			7,485
Total net operating income	$	37,498		$	35,889					$	19,098		$	14,640					$	11,412		$	9,940					$	488		$	(397	)				$	68,496		$	60,072
Same-property operating margin		69	%		69	%					68	%		66	%					67	%		66	%					31	%		28	%					68	%		68	%
Same-property turnover percentage		43	%		46	%					47	%		41	%					38	%		52	%					26	%		28	%					42	%		46	%
Same-property concessions	$	449		$	386					$	119		$	100					$	55		$	49					$	6		$	14					$	629		$	549
Average same-property concessions per turn (3)	$	336		$	303					$	243		$	239					$	129		$	83					$	295		$	681					$	277		$	239
Net operating income percentage of total		55	%		60	%					28	%		24	%					17	%		17	%					1	%		-1	%					100	%		100	%
Loss to lease (4)	$	(3,521	)							$	5,081								$	1,501								$	-								$	3,061
Loss to lease as a percentage of rental income		(1.6	%)								4.1	%								2.3	%								-									0.9	%
Reconciliation of apartment units at end of period
Same-property apartment units		10,926									4,083									4,560									302									19,871
Consolidated Apartment Units		12,725			12,386						6,361			5,523						5,005			4,905						302			302						24,393			23,116
Joint Venture		480			480						1,575			2,101						515			515						-			-						2,570			3,096
Under Development (5)		543			543						693			238						422			127						-			-						1,658			908
Total apartment units at end of period		13,748			13,409						8,629			7,862						5,942			5,547						302			302						28,621			27,120
Percentage of total		48	%		49	%					30	%		29	%					21	%		20	%					1	%		1	%					100	%		100	%
Average same-property financial occupancy		95.1	%		95.5	%					97.1	%		95.3	%					97.0	%		95.7	%					91.3	%		90.3	%					95.9	%		95.5	%

(1) Other real estate assets consists of one community in Houston, TX, that is classified in same-property results and several other properties including consolidated commercial assets that are classified in non-same property results.

(2) Includes properties which subsequent to January 1, 2007 were either acquired or in a stage of development or redevelopment without stabilized operations.

(3) Average same-property concessions per turn is the dollar amount per unit resulting from the same-property concessions divided by the product of the same property turnover percentage times the same-property apartment units.

(4) Loss to lease represents the annualized difference between market rents (without considering the impact of rental concessions) and contractual rents. These numbers include the Company's pro-rata interest in unconsolidated properties.

(5) Fund II owns 395 of the units under development as of March 31, 2008.

See Company’s 10-Q for additional disclosures

S-7

E S S E X  P R O P E R T Y  T R U S T, I N C.

Same-Property Revenue by County - Quarters ended March 31, 2008, March 31, 2007 and December 31, 2007
(Dollars in thousands)
			Average Property Rental Rates							Property Revenue							Property Revenue
			March 31,		March 31,					March 31,		March 31,					December 31,		Sequential
Region	Units		2008		2007		% Change			2008		2007		% Change			2007		% Change
Southern California
Ventura County		3,004	$	1,383	$	1,370		0.9	%	$	12,354	$	12,395		-0.3	%	$	12,474		-1.0	%
Los Angeles County		2,754		1,737		1,658		4.8	%		15,068		14,416		4.5	%		14,823		1.7	%
Orange County		2,037		1,542		1,495		3.1	%		9,416		9,077		3.7	%		9,359		0.6	%
San Diego County		2,616		1,072		1,046		2.5	%		8,492		8,382		1.3	%		8,515		-0.3	%
Santa Barbara County		239		1,789		1,670		7.1	%		1,310		1,219		7.5	%		1,315		-0.4	%
Riverside County		276		831		816		1.8	%		632		704		-10.2	%		685		-7.7	%
		10,926		1,423		1,381		3.0	%		47,272		46,193		2.3	%		47,171		0.2	%
Northern California
San Francisco MSA		175		1,766		1,635		8.0	%		926		851		8.8	%		921		0.5	%
Santa Clara County		1,870		1,600		1,478		8.3	%		9,128		8,351		9.3	%		8,968		1.8	%
Alameda County		200		1,301		1,200		8.4	%		797		732		8.9	%		797		0.0	%
San Mateo County		768		1,577		1,295		21.8	%		3,662		2,908		25.9	%		3,529		3.8	%
Contra Costa County		1,070		1,483		1,428		3.9	%		4,732		4,379		8.1	%		4,741		-0.2	%
		4,083		1,557		1,423		9.4	%		19,245		17,221		11.8	%		18,956		1.5	%
Seattle Metro		4,560		1,060		970		9.3	%		15,185		13,848		9.7	%		15,019		1.1	%
Other real estate assets		302		591		577		2.4	%		494		492		0.4	%		521		-5.2	%
Total Same-Property revenue		19,871	$	1,354	$	1,283		5.6	%	$	82,196	$	77,754		5.7	%	$	81,667		0.6	%

See Company’s 10-Q for additional disclosures

S-8

E S S E X  P R O P E R T Y  T R U S T, I N C.

(Dollars in millions)
		Estimated Units		Estimated retail sq. feet (1)		Total Costs Incurred to Date		Estimated Remaining Costs		Estimated Total Cost		Construction Start	Construction Complete	Initial Occupancy	Stabilized Operations
Development Projects
Project Name	Location
Belmont Station	Los Angeles, CA		275		-	$	62.1	$	9.0	$	71.1	Jan-06	Aug-08	Jul-08	Mar-09
The Grand	Oakland, CA		238		7,800		57.0		39.2		96.2	Dec-06	Dec-08	Jan-09	Jun-09
Fourth Street	Berkeley, CA		171		15,500		14.7		54.7		69.4	Apr-08	Feb-10	Feb-10	Aug-10
Broadway Heights (2)	Seattle, WA		295		29,100		3.7		100.6		104.3	Aug-08	Sep-10	Jul-10	May-11
Tasman Place	Sunnyvale, CA		284		48,300		2.8		136.1		138.9	Feb-09	Mar-11	Apr-11	Nov-11
Consolidated - Development Projects			1,263		100,700		140.3		339.6		479.9
Development Projects - Fund II
Project Name	Location
Eastlake 2851	Seattle, WA		127		9,300		30.3		5.1		35.4	Aug-06	Jun-08	Apr-08	Jul-08
Studio 40-41	Studio City, CA		149		-		34.5		26.1		60.6	Jun-07	Jun-09	Mar-09	Aug-09
Cielo	Chatsworth, CA		119		-		14.1		25.3		39.4	Jun-07	May-09	May-09	Sep-09
Fund II - Development Projects			395		9,300		78.9		56.5		135.4
Total - Development Projects			1,658		110,000		219.2		396.1		615.3
Predevelopment Projects
Project Name	Location
Essex-Hollywood	Hollywood, CA		-		-		-		-		-	Sep-09	Sep-11	Sep-11	Mar-12
Cadence Campus	San Jose, CA		-		-		-		-		-	Jan-10	Sep-13	Jan-12	Jul-14
Main Street (2)	Walnut Creek, CA		-		-		-		-		-	Jan-10	Jan-12	Jan-12	Jul-12
Total - Predevelopment Projects			1,018		-		92.4		224.5		316.9
Land Held for Future Development (3)
Project Name	Location
City Centre	Moorpark, CA		200		-		-		-		-
Citiplace	San Diego, CA		141		-		-		-		-
Park Boulevard (4)	Palo Alto, CA		27		-		-		-		-
90 Archer	San Jose, CA		42		-		-		-		-
View Pointe	Newcastle, WA		24		-		-		-		-
Total - Other Projects			434		-		26.0		-		26.0
Grand Total - Development Pipeline			3,110		110,000	$	337.6	$	620.6	$	958.2

(1) Certain apartment community developments include retail space, and the Company has included the total estimated retail square footage for each development project.

(2) The Company has entered into a joint venture development project with a third-party to develop this property.  Essex has a 50% interest in the project.

(3) The Company owns land in various stages of entitlement that is being held for future development.

(4) The Company has entered into an option agreement to sell a land parcel to a third-party.  During the option period the Company will continue to complete the entitlement process.

See Company’s 10-Q for additional disclosures

S-9

E S S E X  P R O P E R T Y  T R U S T, I N C.

Redevelopment Pipeline - March 31, 2008
(Dollars in thousands)
																Units
														Q1 2008		completed
			Total		Estimated		Estimated			NOI				Rehab		and
			Incurred		Remaining		Total		Redevelopment	For the quarter ended				Vacancy		available
Region/Project Name	Units		To Date		Cost		Cost		Start Date		Q1 2008		Q1 2007	Loss		for rent
Approved - Redevelopment Projects (1)
Marina Cove, Santa Clara, CA		292	$	1,887	$	7,971	$	9,858	Jun-07
Foothill Commons, Bellevue, WA		360		1,522		17,282		18,804	Jun-07
Woodland Commons, Bellevue, WA		236		1,567		10,212		11,779	Jun-07
		888		4,976		35,465		40,441
Active - Redevelopment Projects
Southern California
Mira Monte, Mira Mesa, CA  (3)		355		5,934		126		6,060	Sep-04	$	911	$	859	$	3		352
Avondale at Warner Center, Woodland Hills, CA		446		11,267		2,803		14,070	Oct-04		1,298		1,252		-		198
Pathways, Long Beach, CA		296		7,061		3,699		10,760	Jun-06		819		942		41		192
Highridge, Rancho Palos Verdes, CA		255		3,245		12,818		16,063	Jan-07		924		888		-		9
		1352		27,507		19,446		46,953			3,952		3,941		44		751
Northern California
The Montclaire - Phase I - III, Sunnyvale, CA		390		8,699		6,433		15,132	Aug-06		1,123		963		100		212
Boulevard, Fremont, CA		172		7,438		1,174		8,612	Sep-06		271		394		84		84
Bridgeport, Newark, CA		184		4,103		483		4,586	Oct-06		507		471		2		3
City View (Wimbledon Woods), Hayward, CA (4)		560		7,202		2,148		9,350	Oct-06		1,271		1,378		-		3
		1,306		27,442		10,238		37,680			3,172		3,206		186		299
Seattle Metro
Palisades - Phase I and II, Bellevue, WA (3)		192		6,472		479		6,951	Sep-04		503		386		-		192
Sammamish View, Bellevue, WA (4)		153		3,887		-		3,887	Dec-05		443		378		-		153
		345		10,359		479		10,838			946		764		-		345
Total Active - Redevelopment Projects		3,003		65,308		30,163		95,471			8,070		7,911		230		1,395
Consolidated - Redevelopment Projects		3,891		70,284		65,628		135,912			8,070		7,911		230		1,395
Redevelopment Projects - Fund II
Regency Tower - Phase I - II, Oakland, CA		178		3,787		689		4,476	Nov-05		357		312		4		97
The Renaissance, Los Angeles, CA		168		4,006		1,334		5,340	Oct-06		630		511		32		157
Fund II - Redevelopment Projects		346		7,793		2,023		9,816			987		823		36		254
Grand Total - Redevelopment Pipeline		4,237	$	78,077	$	67,651	$	145,728		$	9,057	$	8,734	$	266		1,649

(1) These communities have stabilized operations as of Q1 2008, and therefore the communities are classified in same-property operations.

(2) This community was restabilized during the end of first quarter of 2007, and will be included in same-property operations starting the second quarter of 2008.

(3) These communities was restabilized during the end of third quarter of 2007, and will be included in same-property operations starting the fourth quarter of 2008.

See Company’s 10-Q for additional disclosures

S-10

E S S E X  P R O P E R T Y  T R U S T, I N C. 

Investments- March 31, 2008 (Dollars in thousands)	Essex Book		Total Fund Original				Debt		Property Revenue for the three months ended							NOI for the three months ended
	Value		Cost		Units		Amount		2008		2007		% Change			2008		2007		% Change
Joint Ventures
Essex Apartment Value Fund II, L.P. (Fund II) (1)
Southern California
Parcwood, Corona, CA						312	$	25,244
Renaissance, Los Angeles, CA						168		23,180
Total Southern California						480		48,424	$	1,993	$	1,879		6.1	%	$	1,173	$	1,161		1.1	%
Northern California
Alderwood Park, Newark, CA						96		7,036
Carlmont Woods, Belmont, CA						195		12,858
Davey Glen, Belmont, CA						69		6,654
Enclave, San Jose, CA						637		80,260
Harbor Cove, Foster City, CA						400		34,670
Regency Tower, Oakland, CA						178		11,007
Total Northern California						1,575		152,485		6,988		6,344		10.2	%		4,413		3,777		16.8	%
Seattle Metro
Echo Ridge, Snoqualmie, WA						120		13,200
Morning Run, Monroe, WA						222		13,649
Tower @ 801, Seattle, WA						173		19,231
Total Seattle Metro						515		46,080		2,017		1,890		6.7	%		1,202		1,146		4.9	%
Total - Operating Communities						2,570		246,989	$	10,998	$	10,113		8.8	%	$	6,788		6,084		11.6	%
Fund II - Development Pipeline (2)
Eastlake 2851 on Lake Union, Seattle, WA						127		20,762
Studio 40-41, Studio City, CA						149		10,010
Cielo, Chatsworth, CA						119		2,262
Total - Development Communities						395		33,034
Line of credit								7,800
Total - Fund II	$	58,012	$	526,602		2,965	$	287,823
Capitalized costs		720
		58,732
Other (3)		4,968
	$	63,700

(1) The Company has a 28.2% interest as a general partner and limited partner in Fund II, and may earn promote income if Fund II exceds cetain financial return benchmarks.

(2) See S-9 for more detail about the Fund II Development Pipeline.

(3) Other investments include one development joint venture in preliminary stages located in Southern California totaling $4.5 million and a real estate technology investment.

See Company’s 10-Q for additional disclosures

S-11

E S S E X  P R O P E R T Y  T R U S T, I N C.

Consolidated Co-Investments – March 31, 2008
(Dollars in thousands)
The Company enters into co-investment transactions with third party developers, owners and investors of apartment communities. In accordance with GAAP, the Company consolidates certain of these co-investment transactions, resulting in minority interests corresponding to the ownership interest of the third-party developer, owner or investor.
The following table summarizes the consolidated co-investment transactions for operating properties:
									Operations for the quarter ended
	Balance as of March 31, 2008								March 31, 2008
	Investment in		Related		Minority		Down REIT				Operating
	Real Estate		Debt		Interest		Units (1)		Revenue		Expenses		NOI
DownREITs:
Anchor Village	$	11,901	$	10,750	$	1,939		111,154	$	763	$	298	$	466
Barkley Apartments		9,127		4,856		2,359		80,302		648		236		413
Brookside Oaks		34,620		14,074		3,974		99,073		722		212		510
Capri at Sunny Hills		17,046		19,092		3,137		168,365		625		156		469
Brentwood (Hearthstone)		15,385		20,643		2,568		58,884		631		159		472
Hidden Valley (Parker Ranch)		43,852		33,206		6,089		62,647		1,342		385		956
Highridge Apartments		23,504		44,807		5,180		300,438		1,325		401		924
Montejo Apartments		8,775		5,789		1,596		38,038		484		144		340
Thomas Jefferson		32,702		19,797		7,067		67,873		872		285		588
Treehouse Apartments		11,696		7,794		3,299		75,700		590		152		439
Valley Park Apartments		16,013		9,874		1,275		56,633		714		164		550
Villa Angelina Apartments		20,638		13,351		3,003		57,709		972		240		732
		245,259		204,033		41,486		1,176,816		9,688		2,832		6,859
Other Co-investments:
Derian Office Building (2)		15,895		-		-		n/a		509		107		403
Hillsdale Garden Apartments (3)		116,006		-		-		n/a		3,311		1,428		1,883

(1) Represents the number of DownREIT units that are currently outstanding.  Generally, DownREIT units can be redeemed at the holder's election for cash equal to the current price of Essex's common stock.

(2) Essex has mortgage loans to the owners of this property with an aggregate principal balance in excess of the book value of the property as of March 31, 2008.

(3) During the second quarter of 2007, the Company entered into a joint venture partnership with a third-party, and the Company contributed the improvements to the property for a 81.5% interest and the joint venture partner contributed the title to the land for an 18.5% interest in the partnership.

See Company’s 10-Q for additional disclosures

S-12

E S S E X  P R O P E R T Y  T R U S T, I N C.

Income From Discontinued Operations and Selected Financial Data - March 31, 2008 

(Dollars in thousands)

Income from Discontinued Operations

For the quarter ended March 31, 2007, the Company sold the City Heights property which was consolidated in accordance with FIN 46R, and condominium units at Peregrine Point.  For the quarter ended March 31, 2008, no properties were sold and none were classified as held for sale.

	Three Months Ended
	March 31,
	2008		2007
Rental revenues	$	-	$	3,497
Interest and other income		-		290
Revenues		-		3,787
Property operating expenses		-		(1,416	)
Interest expense		-		(417	)
Depreciation and amortization		-		(571	)
Minority interests		-		(58	)
Expenses		-		(2,462	)
Gain on sale		-		78,919
Subordination fees		-		10,290
Minority interests		-		(66,762	)
Net gain on sale of real estate		-		22,447
Income from discontinued operations	$	-	$	23,772
Common Stock Equivalents
		Q1 2008	Actual
	Weighted Avg.		As of 3/31/08
Common Shares		24,747,925		24,746,541
Stock Options		129,701		129,701
Exchangeable Bonds		-		205,146
Weighted Avg. Shares Diluted - EPS		24,877,626		25,081,388
Operating Limited Partnership Units		2,520,979		2,518,649
Weighted Avg. Shares Diluted - FFO		27,398,605		27,600,037

See Company’s 10-Q for additional disclosures

 S-13