EX-99.2 3 ex99_2.htm EXHIBIT 99.2 ex99_2.htm
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