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,
  
   
2009
    
2008
  
             
Revenues:
            
Rental and other property
   $ 104,682     $ 98,730  
Management and other fees from affiliates
     1,197       1,227  
      105,879       99,957  
                 
Expenses:
                
Property operating, excluding real estate taxes
     24,265       23,654  
Real estate taxes
     9,113       8,096  
Depreciation and amortization
     29,175       26,766  
Interest
     20,203       21,139  
General and administrative
     6,233       6,625  
Write-off of investment in development joint venture
     5,752       -  
      94,741       86,280  
Earnings from operations
     11,138       13,677  
                 
Gain on early retirement of debt
     6,124       -  
Interest and other income
     3,287       2,768  
Equity income from co-investments
     539       6,630  
Income before discontinued operations
     21,088       23,075  
Income (loss) from discontinued operations
     2,250       (226 )
Net income
     23,338       22,849  
Net income attributable to noncontrolling interest
     (4,942 )     (5,759 )
Net income attributable to controlling interest
     18,396       17,090  
Dividends to preferred stockholders
     (1,826 )     (2,310 )
Excess of the carrying amount of preferred stock redeemed over the cash paid to redeem preferred stock
     25,695       -  
Net income available to common stockholders
   $ 42,265     $ 14,780  
                 
Net income per share - basic
   $ 1.61     $ 0.60  
                 
Net income per share - diluted
   $ 1.53     $ 0.59  
 
 
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)
  
2009
    
2008
  
             
Rental and other property
            
Rental
   $ 98,104     $ 93,165  
Other property
     6,578       5,565  
Rental and other property
   $ 104,682     $ 98,730  
                 
Management and other fees from affiliates
                
Management
   $ 871     $ 780  
Development and redevelopment
     326       447  
Management and other fees from affiliates
   $ 1,197     $ 1,227  
                 
General and administrative
                
General and administrative
   $ 9,788     $ 10,325  
Allocated to property operating expenses - administrative
     (2,418 )     (2,229 )
Capitalized to real estate
     (1,137 )     (1,471 )
Net general and administrative
   $ 6,233     $ 6,625  
                 
Interest and other income
                
Interest income
   $ 1,500     $ 1,174  
Lease income, net
     185       1,594  
Gain on sale of marketable securities
     1,014       -  
Income generated from TRS activities
     588       -  
Interest and other income
   $ 3,287     $ 2,768  
                 
Noncontrolling interest
                
Limited partners of Essex Portfolio, L.P.
   $ 1,799     $ 1,809  
DownREIT limited partners' distributions
     1,118       1,132  
Perpetual preferred distributions
     1,575       2,559  
Third party ownership interests
     450       259  
Noncontrolling interest
   $ 4,942     $ 5,759  
 
 
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,
        
   
2009
    
2008
    
% Change
  
                   
Funds from operations
                  
Net income available to common stockholders
   $ 42,265     $ 14,780        
Adjustments:
                      
Depreciation and amortization
     29,204       27,734        
Gains not included in FFO, net of disposition costs (1)
     (2,225 )     -        
Noncontrolling interest and co-investments (2)
     2,563       2,312        
Funds from operations
   $ 71,807     $ 44,826        
FFO per share-diluted
   $ 2.50     $ 1.64       53.0 %
                         
Components of the change in FFO
                        
Non-recurring items:
                        
Redemption of Series G preferred stock at a discount
     (25,695 )     -          
Gain on early retirement of bonds
     (6,124 )     -          
Write-off of investment in development joint venture
     5,752       -          
Gain on sales of marketable securities
     (1,014 )     -          
Income generated from TRS activities
     (588 )     -          
Joint venture - preferred interest and fees
     -       (6,318 )        
Funds from operations excluding non-recurring items
     44,138       38,508          
FFO excluding non-recurring items per share-diluted
   $ 1.54     $ 1.41       9.4 %
                         
Changes in recurring items:
                        
Same-property NOI
   $ 1,646                  
Non-same property NOI
     2,678                  
Management and other fees from affiliates
     (30 )                
Interest expense
     936                  
Other items, net
     400                  
    $ 5,630                  
Weighted average number of shares outstanding diluted (3)
     28,692,959       27,398,605          

(1)
Internal disposition costs relate to a disposition incentive program established to pay incremental bonuses for the sale of certain of the Company's communities that are part of the program.
(2)
Amount includes the following 2009 adjustments: (i) noncontrolling interest related to Operating Partnership units totaling $1.8 million, (ii) add back depreciation from unconsolidated co-investments and less depreciation attributable to third-party ownership of consolidated co-investments totaling $0.8 million.
(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-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.

Condensed Consolidated Balance Sheets
            
(Dollars in thousands)
            
   
March 31, 2009
    
December 31, 2008
  
             
Real Estate:
            
Land and land improvements
   $ 681,947     $ 683,876  
Buildings and improvements
     2,594,339       2,595,912  
      3,276,286       3,279,788  
Less:  accumulated depreciation
     (666,552 )     (640,026 )
      2,609,734       2,639,762  
Real estate under development
     292,607       272,273  
Co-investments
     70,603       76,346  
      2,972,944       2,988,381  
Cash and cash equivalents
     78,820       54,719  
Marketable securities
     30,143       23,886  
Funds held by 1031 exchange faciliator
     -       21,424  
Notes and other receivables
     46,141       47,637  
Other assets
     33,867       28,776  
Total assets
   $ 3,161,915     $ 3,164,823  
                 
Mortgage notes payable
   $ 1,529,571     $ 1,468,931  
Exchangeable bonds
     97,245       165,457  
Lines of credit
     185,000       120,000  
Cash flow hedge liabilities
     54,825       73,129  
Other liabilities
     111,943       105,396  
Total liabilities
     1,978,584       1,932,913  
                 
Redeemable operating partnership units
     143,221       186,514  
Redeemable DownREIT units
     69,318       90,389  
Series G cumulative convertible preferred stock
     87,735       145,912  
                 
Stockholders' equity and noncontrolling interest:
                
Common stock
     2       2  
Series F cumulative redeemable preferred stock, liquidation value
     25,000       25,000  
Additional paid-in-capital
     946,660       880,773  
Distributions in excess of accumulated earnings
     (152,382 )     (142,103 )
Accumulated other comprehensive (loss) income
     (57,391 )     (75,424 )
Total stockholders' equity
     761,889       688,248  
Noncontrolling interest
     121,168       120,847  
Total stockholders' equity and noncontrolling interest
     883,057       809,095  
Total liabilities and equity
   $ 3,161,915     $ 3,164,823  
 
 
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, 2009
                        
(Dollars in thousands)
                        
                         
   
Percentage of Total Debt
    
Balance Outstanding
    
Weighted Average Interest Rate
    
Weighted Average Maturity In Years
  
Mortgage notes payable
                        
Fixed rate - secured
     71 %   $ 1,281,391       6.1 %     6.0  
Variable rate debt (1)
     14 %     248,180       2.5 %     21.4  
Total mortgage notes payable
     85 %     1,529,571       5.5 %     8.5  
                                 
Exchangeable bonds (2)
     5 %     97,245       5.8 %        
                                 
Line of credit - secured (3)
     8 %     140,000       2.0 %        
Line of credit - unsecured (4)
     2 %     45,000       2.7 %        
Total lines of credit
     10 %     185,000       2.0 %        
                                 
Total debt
     100 %   $ 1,811,816       5.3 %        
                                 
                   
Weighted
          
Scheduled principal payments (excludes lines of credit)
    
Average
          
                   
Interest Rate
          
   
2009
     $ 14,548       2.2 %        
   
2010
       249,049       7.3 %        
   
2011
       150,608       6.4 %        
   
2012
       31,642       5.4 %        
   
2013
       191,817       5.8 %        
   
Thereafter
       989,152       5.0 %        
   
Total
     $ 1,626,816       5.6 %        

Capitalized interest for the three months ended March 31, 2009 was approximately $3.2 million.

(1)
$233.1 million of the variable rate debt is tax exempt, and $183.4 million of the tax exempt debt is subject to interest rate protection agreements.
(2)
Exchangeable bonds mature in November 2025, but the bonds are subject to a repurchase for cash at the option of the holder on November 1, 2010. The pay rate on the bonds is 3.625%, and effective January 2009 in accordance with the accounting pronouncement FSP No. APB 14-1, the weighted average interest rate is 5.75%.  This is an unsecured obligation of the operating partnership, and is fully and unconditionally guaranteed by the Company.
(3)
Secured line of credit commitment is $150 million and is expandable to $250 million at any time during the first two years.  This line is secured by ten of the Company's apartment communities and matures in December 2013.  The underlying interest rate is currently the Freddie Mac Reference Rate plus .99% to 1.50%.
(4)
Unsecured line of credit commitment is $200 million and matures in March 2010.  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%.
 
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, 2009
(Dollars and shares in thousands, except per share amounts)
 
 
Total debt
   $ 1,811,816    
           
           
Common stock and potentially dilutive securities
          
Common stock outstanding
     26,060    
Limited partnership units (1)
     2,450    
Options-treasury method
     13    
Total common stock and potentially dilutive securities
     28,523  
  shares
           
Common stock price per share as of March 31, 2009
   $ 57.34    
           
Market value of common stock and potentially dilutive securities
   $ 1,635,509    
           
Preferred units/stock
   $ 194,900    
           
Total equity capitalization
   $ 1,830,409    
           
Total market capitalization
   $ 3,642,225    
           
Ratio of debt to total market capitalization
     49.7 %  

(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, 2009 and 2008
  
(Dollars in thousands)
  
   
Southern California
    
Northern California
    
Seattle Metro
    
Other real estate assets (1)
    
Total
  
   
2009
    
2008
    
% Change
    
2009
    
2008
    
% Change
    
2009
    
2008
    
% Change
    
2009
    
2008
    
2009
    
2008
    
% Change
  
                                                                                     
Revenues:
                                                                                    
Same-property revenue
   $ 47,945     $ 48,053       -0.2 %   $ 27,010     $ 25,726       5.0 %   $ 15,654     $ 15,053       4.0 %   $ -     $ -     $ 90,609     $ 88,832       2.0 %
Non-same property revenue (2)
     5,586       4,440               3,851       2,903               3,464       1,876               1,172       679       14,073       9,898          
Total Revenues
   $ 53,531     $ 52,493             $ 30,861     $ 28,629             $ 19,118     $ 16,929             $ 1,172     $ 679     $ 104,682     $ 98,730          
                                                                                                                 
Property operating expenses:
                                                                                                                
Same-property operating expenses
   $ 15,079     $ 15,069       0.1 %   $ 8,429     $ 8,578       -1.7 %   $ 5,220     $ 4,950       5.5 %   $ -     $ -     $ 28,728     $ 28,597       0.5 %
Non-same property operating expenses (2)
     1,925       1,391               1,035       1,004               1,212       605               478       153       4,650       3,153          
Total property operating expenses
   $ 17,004     $ 16,460             $ 9,464     $ 9,582             $ 6,432     $ 5,555             $ 478     $ 153     $ 33,378     $ 31,750          
                                                                                                                 
Net operating income (NOI):
                                                                                                                
Same-property NOI
   $ 32,866     $ 32,984       -0.4 %   $ 18,581     $ 17,148       8.4 %   $ 10,434     $ 10,103       3.3 %   $ -     $ -     $ 61,881     $ 60,235       2.7 %
Non-same property NOI (2)
                                                                                                                
Redevelopment communities
     3,231       3,042               2,493       1,899               1,251       1,271               -       -       6,975       6,212          
Acquired communities
     81       7               348       -               1,001       -               -       -       1,430       7          
Development communities
     349       -               (25 )     -               -       -               -       -       324       -          
Other real estate assets (1)
     -       -               -       -               -       -               694       526       694       526          
Total non-same property NOI
     3,661       3,049               2,816       1,899               2,252       1,271               694       526       9,423       6,745          
Total NOI
   $ 36,527     $ 36,033             $ 21,397     $ 19,047             $ 12,686     $ 11,374             $ 694     $ 526     $ 71,304     $ 66,980          
                                                                                                                 
Same-property operating margin
     69 %     69 %             69 %     67 %             67 %     67 %                             68 %     68 %        
                                                                                                                 
Same-property turnover percentage
     51 %     43 %             53 %     50 %             51 %     37 %                             52 %     44 %        
                                                                                                                 
Same-property concessions
   $ 301     $ 458             $ 119     $ 202             $ 68     $ 60                             $ 488     $ 721          
                                                                                                                 
Average same-property concessions per turn (3)
   $ 203     $ 335             $ 150     $ 285             $ 112     $ 149                             $ 169     $ 290          
                                                                                                                 
Net operating income percentage of total
     51 %     54 %             30 %     28 %             18 %     17 %             1 %     1 %     100 %     100 %        
                                                                                                                 
                                                                                                                 
Reconciliation of apartment units at end of period
                                                                                                                
                                                                                                                 
Same-property apartment units
     11,059                       5,615                       4,409                                       21,083                  
                                                                                                                 
Consolidated Apartment Units
     12,370       12,725               6,457       6,361               5,338       5,005                               24,165       24,091          
Joint Venture
     480       480               1,575       1,575               642       515                               2,697       2,570          
Under Development (4)
     268       543               409       693               295       422                               972       1,658          
Total apartment units at end of period
     13,118       13,748               8,441       8,629               6,275       5,942                               27,834       28,319          
                                                                                                                 
Percentage of total
     47 %     49 %             30 %     30 %             23 %     21 %                             100 %     100 %        
                                                                                                                 
Average same-property financial occupancy
     96.5 %     95.1 %             97.6 %     96.7 %             97.3 %     96.8 %                             97.0 %     95.9 %        

(1)
Other real estate assets consists mainly of retail space and commercial properties and their operating results are classified in non-same property results.  The Hollywood commercial property's operations are classified in other real assets for 2009 due to the extension of a three year lease with the tenant, operations for 2008 are classified in interest and other income.
(2)
Includes properties which subsequent to January 1, 2008 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)
Fund II owns 268 of the units under development as of March 31, 2009.
 
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.

Revenue by County - Quarters ended March 31, 2009, March 31, 2008 and December 31, 2008
  
(Dollars in thousands, except average property rental rates)
  
                                                       
         
Average Property Rental Rates
          
Property Revenue
          
Property Revenue
        
         
March 31,
    
March 31,
          
March 31,
    
March 31,
          
December 31,
    
Sequential
  
Region
  
Units
    
2009
    
2008
    
% Change
    
2009
    
2008
    
% Change
    
2008
    
% Change
  
                                                       
Southern California
                                                      
Ventura County
     3,004     $ 1,348     $ 1,393       -3.2 %   $ 12,506     $ 12,354       1.2 %   $ 12,542       -0.3 %
Los Angeles County
     2,754       1,790       1,838       -2.6 %     14,629       15,068       -2.9 %     14,717       -0.6 %
Orange County
     2,037       1,513       1,548       -2.3 %     9,406       9,416       -0.1 %     9,528       -1.3 %
San Diego County
     2,641       1,131       1,124       0.6 %     9,128       8,854       3.1 %     9,255       -1.4 %
Santa Barbara County
     347       1,628       1,641       -0.8 %     1,638       1,729       -5.3 %     1,569       4.4 %
Riverside County
     276       764       839       -8.9 %     638       632       0.9 %     654       -2.4 %
Total same-property
     11,059       1,431       1,462       -2.1 %     47,945       48,053       -0.2 %     48,265       -0.7 %
Los Angeles County
     1,311       1,598                       5,586       4,440                          
Non-same property
     1,311       1,598                       5,586       4,440                          
                                                                         
Northern California
                                                                        
San Francisco MSA
     175       1,841       1,766       4.2 %     968       926       4.5 %     959       0.9 %
Santa Clara County
     2,058       1,671       1,595       4.8 %     10,571       10,000       5.7 %     10,640       -0.6 %
Alameda County
     760       1,297       1,240       4.6 %     3,105       2,898       7.1 %     3,104       0.0 %
San Mateo County
     768       1,675       1,577       6.2 %     3,944       3,662       7.7 %     3,968       -0.6 %
Contra Costa County
     1,720       1,503       1,529       -1.7 %     7,860       7,714       1.9 %     8,036       -2.2 %
Other
     134       1,358       1,361       -0.2 %     562       526       6.8 %     556       1.1 %
Total same-property
     5,615       1,567       1,524       2.8 %     27,010       25,726       5.0 %     27,263       -0.9 %
Santa Clara County
     390       1,514                       1,835       1,661                          
Alameda County
     356       1,363                       1,528       1,242                          
Other
     96       1,709                       488       -                          
Non-same property
     842       1,448                       3,851       2,903                          
                                                                         
Seattle Metro
                                                                        
Total same-property
     4,409       1,118       1,093       2.3 %     15,654       15,053       4.0 %     15,827       -1.1 %
Non-same property
     929       1,192                       3,464       1,876                          
Other Real Estate Assets
                                     1,172       679                          
                                                                         
Total same-property revenue
     21,083     $ 1,402     $ 1,402       0.0 %   $ 90,609     $ 88,832       2.0 %   $ 91,355       -0.8 %
Total non-same property revenue
     3,082     $ 1,436                     $ 14,073     $ 9,898                          
 
 
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.

Development Pipeline - March 31, 2009
(Dollars in millions)
   
       
Estimated Units
    
Estimated retail sq. feet (1)
    
Incurred to Date
    
Estimated Remaining Costs
    
Estimated Total Cost
  
Construction Start
  
Construction Complete
  
Initial Occupancy
    
Stabilized Operations
  
                                                     
Development Projects
                                                
Project Name
  
Location
                                                
                                                     
The Grand
  
Oakland, CA
     238       7,800     $ 93.1     $ 3.1     $ 96.2  
Dec-06
  
Jan-09
  
Feb-09
    
Sep-09
  
Fourth Street
  
Berkeley, CA
     171       15,500       31.5       39.1       70.6  
Apr-08
  
Feb-10
  
Feb-10
    
Aug-10
  
Joule Broadway (2) (3)
  
Seattle, WA
     295       29,100       40.7       63.6       104.3  
May-08
  
Sep-10
  
Jul-10
    
May-11
  
Tasman Retail Pad
  
Sunnyvale, CA
     -       14,100       1.5       7.0       8.5  
Jun-09
  
Jun-10
    
-
      
-
  
Consolidated - Development Projects
     704       66,500       166.8       112.8       279.6                        
Development Projects - Fund II (3)
                                                              
Project Name
  
Location
                                                              
Studio 40-41
  
Studio City, CA
     149       -       54.4       6.2       60.6  
Jun-07
  
Jun-09
 
Apr-09
    
Aug-09
  
Cielo
  
Chatsworth, CA
     119       -       29.2       10.3       39.5  
Jun-07
  
Jul-09
  
Jul-09
    
Oct-09
  
Fund II - Development Projects
     268       -       83.6       16.5       100.1                        
Total - Development Projects
     972       66,500       250.4       129.3       379.7                        
Predevelopment Projects
                                                              
Project Name
  
Location
                                                              
Main Street (2)
  
Walnut Creek, CA
     -       -       -       -       -                        
Cadence Campus
  
San Jose, CA
     -       -       -       -       -                        
Tasman Apts/Retail
  
Sunnyvale, CA
     -       -       -       -       -                        
Total - Predevelopment Projects
     1,104       34,200       101.7       271.1       372.8                        
Land Held for Future Development (4)
                                                              
Project Name
  
Location
                                                              
City Centre
  
Moorpark, CA
     200       -       -       -       -                        
Citiplace
  
San Diego, CA
     141       -       -       -       -                        
Park Boulevard (5)
  
Palo Alto, CA
     27       -       -       -       -                        
View Pointe
  
Newcastle, WA
     24       -       -       -       -                        
                                                                   
Total - Land Held for Future Development
     392       -       24.1       -       24.1                        
Grand Total - Development Pipeline
     2,468       100,700     $ 376.2     $ 400.4     $ 776.6                        

(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 two joint venture development projects with third-parties to develop these properties.  Essex has a 50% interest in the two projects.
(3)
There are construction loans in place for these development projects that provide financing for the majority of the estimated remaining costs to be incurred.
(4)
The Company owns land in various stages of entitlement that is being held for future development.
(5)
The Company has entered into an option agreement to sell this 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, 2009
(Dollars in thousands)
   
         
Total
    
Estimated
    
Estimated
      
NOI
        
         
Incurred
    
Remaining
    
Total
  
Redevelopment
  
For the quarter ended
    
Units
  
Region/Project Name
  
Units
    
To Date
    
Cost
    
Cost
  
Start Date
     Q1 2009       Q1 2008    
completed
  
                                                 
Approved - Redevelopment Projects (1)
                                                
Marina Cove, Santa Clara, CA
     292     $ 3,550     $ 6,308     $ 9,858  
Jun-07
                      
      292       3,550       6,308       9,858                          
                                                         
Active - Redevelopment Projects
                                                        
Southern California
                                                        
Avondale at Warner Center, Woodland Hills, CA
     446       11,548       2,522       14,070  
Oct-04
   $ 1,220     $ 1,298       198  
Pathways, Long Beach, CA
     296       8,331       2,429       10,760  
Jun-06
     973       819       247  
Highridge, Rancho Palos Verdes, CA
     255       4,387       12,176       16,563  
Jan-07
     1,038       924       9  
      997       24,266       17,127       41,393         3,231       3,041       454  
Northern California
                                                          
The Montclaire - Phase I - III, Sunnyvale, CA
     390       14,139       993       15,132  
Aug-06
     1,423       1,123       390  
Boulevard, Fremont, CA
     172       8,887       -       8,887  
Sep-06
     500       271       137  
Bridgeport, Newark, CA
     184       4,373       213       4,586  
Oct-06
     572       507       12  
      746       27,399       1,206       28,605         2,495       1,901       539  
Seattle Metro
                                                          
Foothill Commons, Bellevue, WA (2)
     360       15,812       20,526       36,338  
Jun-07
     771       777       -  
Woodland Commons, Bellevue, WA (2)
     236       4,008       7,771       11,779  
Jun-07
     478       493       -  
      596       19,820       28,297       48,117         1,249       1,270          
                                                           
Total Active - Redevelopment Projects
     2,339       71,485       46,630       118,115         6,975       6,212       993  
                                                           
Consolidated - Redevelopment Projects
     2,631     $ 75,035     $ 52,938     $ 127,973       $ 6,975     $ 6,212       993  

(1)
This project is approved and redevelopment activity has commenced but as of Q1 2009 the community has stabilized operations, and therefore is classified in same-property operations.
(2)
The Company is currently building a new leasing office and 34 additional apartment homes at the adjacent Foothill and Woodland Commons communities.
 
 
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.

Co-investments - March 31, 2009
  
Essex
    
Total Fund
                  
Property Revenue for
          
NOI for the three
        
(Dollars in thousands)
  
Book
    
Original
          
Debt
  
Maturity
  
the three months ended
    
%
    
months ended
    
%
  
   
Value
    
Cost
    
Units
    
Amount
  
Date
  
2009
    
2008
    
Change
    
2009
    
2008
    
Change
  
                                                               
Joint Ventures
                                                              
Essex Apartment Value Fund II, L.P. (Fund II) (1)
                                                              
Southern California
                                                              
Parcwood, Corona, CA
                     312     $ 24,796  
Dec-2013
                                    
Renaissance, Los Angeles, CA
                     168       22,898  
May-2011
                                    
Total Southern California
                     480       47,694       $ 2,059     $ 1,993       3.3 %   $ 1,271     $ 1,173       8.4 %
Northern California
                                                                                  
Alderwood Park, Newark, CA
                     96       6,929  
Jun-2015
                                                
Carlmont Woods, Belmont, CA
                     195       12,630  
Dec-2013
                                                
Davey Glen, Belmont, CA
                     69       6,654  
Aug-2016
                                                
Enclave, San Jose, CA
                     637       18,811  
Jan-2018
                                                
Enclave, San Jose, CA
                             60,000  
Dec-2029
                                                
Harbor Cove, Foster City, CA
                     400       34,056  
Dec-2013
                                                
Regency Tower, Oakland, CA
                     178       10,824  
Mar-2014
                                                
Total Northern California
                     1,575       149,904         7,207       6,988       3.1 %     4,635       4,413       5.0 %
Seattle Metro
                                                                                  
Echo Ridge, Snoqualmie, WA
                     120       12,982  
Sep-2014
                                                
Morning Run, Monroe, WA
                     222       13,428  
Oct-2014
                                                
Tower @ 801, Seattle, WA
                     173       18,905  
Aug-2014
                                                
Total Seattle Metro
                     515       45,315         2,062       2,017       2.2 %     1,285       1,202       6.9 %
                                                                                   
Total - Operating Communities
                     2,570       242,913       $ 11,328     $ 10,998       3.0 %   $ 7,191     $ 6,788       5.9 %
                                                                                   
Fund II - Development Completed (initial occupancy May 2008)
                                                                                  
Eastlake 2851, Seattle, WA
                     127       27,177  
Jan-2010
   $ 566                     $ 388                  
                                                                                   
Fund II - Development Pipeline (2)
                                                                                  
Studio 40-41, Studio City, CA
                     149       29,751  
Apr-2010
                                                
Cielo, Chatsworth, CA
                     119       15,689  
Jun-2010
                                                
Total - Development Communities
                     268       45,440                                                    
                                                                                   
Total - Fund II
   $ 69,383     $ 569,209       2,965     $ 315,530                                                    
                                                                                   
Capitalized costs
     720                                                                            
      70,103                                                                            
Other (3)
     500                                                                            
    $ 70,603                                                                            

(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)
During Q1 2009, the Company wrote-off its investment in a development joint venture in Southern California totaling $5.8 million, the remaining balance relates to 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 and Noncontrolling Interest - March 31, 2009
(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 noncontrolling interests corresponding to the ownership interest of the third-party developer, owner or investor.

The following table summarizes the consolidated co-investments and noncontrolling interest:

                           
Operations for the quarter ended
  
   
Balance as of March 31, 2009
    
March 31, 2009
  
   
Investment in
    
Related
    
Noncontrolling
    
Down-REIT
    
Operating
  
   
Real Estate
    
Debt
    
Interest
    
Units (1)
    
Revenue
    
Expenses
    
NOI
  
                                           
Redeemable DownREIT Units:
                                          
Anchor Village
   $ 14,231     $ 10,750     $ 6,315       110,133     $ 804     $ 323     $ 481  
Barkley Apartments
     9,038       17,586       4,542       79,205       654       199       455  
Brentwood
     14,933       20,400       3,376       58,884       608       173       435  
Brookside Oaks
     33,930       13,840       5,601       97,673       787       186       601  
Capri at Sunny Hills
     17,463       18,856       9,597       167,365       615       144       471  
Hidden Valley (2)
     39,764       32,627       3,592       62,647       1,321       367       954  
Highridge Apartments
     24,444       44,807       17,107       298,341       1,395       357       1,038  
Montejo Apartments
     9,000       5,693       1,681       29,319       475       115       360  
Thomas Jefferson
     26,765       19,545       7,067       62,873       895       260       635  
Treehouse Apartments
     12,130       7,665       3,884       67,728       618       179       439  
Valley Park Apartments
     15,463       9,710       3,247       56,633       731       154       577  
Villa Angelina Apartments
     19,997       13,131       3,309       57,709       978       224       754  
    $ 237,158     $ 214,610     $ 69,318       1,148,510     $ 9,881     $ 2,681     $ 7,200  
Redeemable UpREIT and
                                                        
Operating Partnership Units
                   $ 143,221       2,450,002                          
                                                         
Noncontrolling Interest:
                                                        
Hillsdale Garden Apartments (3)
   $ 114,141       -       22,733             $ 3,560     $ 1,401     $ 2,159  
Joint Ventures - Development (4)
   $ 64,300     $ 15,072       14,500                                  
Perpetual Preferred Units (5)
                     80,000                                  
Hidden Valley (2)
                     3,935                                  
                    $ 121,168                                  
 
(1)
Represents the number of DownREIT units that are currently outstanding.  Generally, DownREIT units are redeemed for cash equal to the current price of Essex's common stock.
(2)
The DownREIT has a 75% interest in this community and a joint venture partner has a 25% interest.
(3)
The Company has an 81.5% interest in this community and the joint venture partner has an 18.5% interest.
(4)
The Company consolidates two joint venture developments that the Company has 50% interest, in accordance with GAAP.
(5)
Includes Series B Cumulative Redeemable Preferred Units with an existing distribution rate of 7.875% and can be redeemed at the Company's option on December 31, 2009.
 
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.
 
Discontinued Operations and Selected Financial Data - March 31, 2009
(Dollars in thousands)
 

Income (Loss) from Discontinued Operations

For the quarter ended March 31, 2009, the Company sold the Carlton Heights and Grand Regency apartment communities.  Income from discontinued operations for the quarter ended March 31, 2008 also includes operating results for Coral Gardens, Cardiff by the Sea, and St. Cloud apartment communites sold in 2008.   No properties were sold in the quarter ended March 31, 2008.

   
Three Months Ended
  
   
March 31,
  
   
2009
    
2008
  
Rental revenues
   $ 157     $ 2,746  
                 
Property operating expenses
     (103 )     (1,229 )
Interest expense
     -       (775 )
Depreciation and amortization
     (29 )     (968 )
Income from real estate sold
     25       (226 )
Gain on sale
     2,472       -  
Internal disposition costs
     (247 )     -  
Income (loss) from discontinued operations
   $ 2,250     $ (226 )

Common Stock Equivalents
            
   
Q1 2009
    
Actual
  
   
Weighted Avg.
    
As of 3/31/09
  
Common Shares
     26,224,946       26,059,739  
Stock Options
     23,266       13,624  
Exchangeable Bonds
     -       -  
Weighted Avg. Shares Diluted - EPS
     26,248,212       26,073,363  
Operating Limited Partnership Units
     2,444,747       2,450,002  
Weighted Avg. Shares Diluted - FFO
     28,692,959       28,523,365  
 
 
See Company’s 10-Q for additional disclosures
 
S-13
 
   
ESSEX PROPERTY TRUST, INC.
  
   
Real Estate Information as of March 31, 2009
  
                           
Square
  
Year
Year
Property
  
Age of
  
   
Property Name
  
Address
  
City
  
State
    
Units
    
Footage
  
Acquired
Built
Ownership
  
Property
  
                                           
   
APARTMENT COMMUNITIES
      
                                           
   
NORTHERN CALIFOFNIRA
                                  
   
Santa Clara County
                                      
  1  
Pointe at Cupertino
  
19920 Olivewood Street
  
Cupertino
  
CA
       116       135,200  
1998
1963
EPLP
     46  
  1  
Carlyle, The
  
2909 Nieman Boulevard
  
San Jose
  
CA
       132       129,200  
2000
2000
EPLP
     9  
  1  
Enclave, The
  
4355 Renaissance Drive
  
San Jose
  
CA
       637       525,463  
2005
1998
Fund II
     11  
  1  
Esplanade
  
350 East Taylor St.
  
San Jose
  
CA
       278       279,000  
2004
2002
EPLP
     7  
  1  
Waterford, The
  
1700 N. First Street
  
San Jose
  
CA
       238       219,600  
2000
2000
EPLP
     9  
  1  
Le Parc
  
440 N. Winchester Avenue
  
Santa Clara
  
CA
       140       113,200  
1994
1975
EPLP
     34  
  1  
Marina Cove
  
3480 Granada Avenue
  
Santa Clara
  
CA
       292       250,200  
1994
1974
EPLP
     35  
  1  
Bristol Commons
  
732 E. Evelyn Avenue
  
Sunnyvale
  
CA
       188       142,600  
1995
1989
EPLP
     20  
  1  
Brookside Oaks
  
1651 Belleville Way
  
Sunnyvale
  
CA
       170       119,900  
2000
1973
DownREIT
     36  
  1  
Magnolia Lane
  
113 South Mary Avenue
  
Sunnyvale
  
CA
       32       31,541  
2007
2001
EPLP
     8  
  1  
Montclaire
  
450 N. Mathilda Avenue
  
Sunnyvale
  
CA
       390       294,100  
1988
1973
EPLP
     36  
  1  
Summerhill Park
  
972 Corte Madera Avenue
  
Sunnyvale
  
CA
       100       78,500  
1988
1988
EPLP
     21  
     
Tasman Place
  
315 Tasman Drive
  
Sunnyvale
  
CA
       -       14,100      
EPLP
        
  1  
Thomas Jefferson
  
107 South Mary Avenue
  
Sunnyvale
  
CA
       156       110,824  
2007
1969
DownREIT
     40  
  1  
Windsor Ridge
  
825 E. Evelyn Avenue
  
Sunnyvale
  
CA
       216       161,800  
1989
1989
EPLP
     20  
                    11 %     3,085       2,591,128                
     
Alameda County
                                              
     
Fourth Street
  
700 University Avenue
  
Berkeley
  
CA
       171       146,255      
EPLP
        
  1  
Stevenson Place
  
4141 Stevenson Blvd.
  
Fremont
  
CA
       200       146,200  
2000
1975
EPLP
     34  
  1  
Boulevard
  
40001 Fremont Blvd.
  
Fremont
  
CA
       172       131,200  
1996
1978
EPLP
     31  
  1  
City View
  
25200 Carlos Bee Blvd.
  
Hayward
  
CA
       560       462,400  
1998
1975
EPLP
     34  
  1  
Regency Tower
  
1130 Third Ave.
  
Oakland
  
CA
       178       140,900  
2005
1975
Fund II
     34  
     
The Grand
  
100 Grand Avenue
  
Oakland
  
CA
       238       205,026      
EPLP
        
  1  
Bridgeport
  
36826 Cherry Street
  
Newark
  
CA
       184       139,000  
1987
1987
EPLP
     22  
  1  
Alderwood Park Apartments
  
37057 Magnolia Street
  
Newark
  
CA
       96       74,624  
2006
1987
Fund II
     22  
                    5 %     1,390       1,094,324                
     
Contra Costa County
                                              
  1  
San Marcos
  
Hilltop Drive at Richmond Pkwy
  
Richmond
  
CA
       432       407,600  
2003
2003
EPLP
     6  
  1  
Bel Air
  
2000 Shoreline Drive
  
San Ramon
  
CA
       462       391,000  
1995
1988
EPLP
     21  
  1  
Foothill Gardens
  
1110 Harness Drive
  
San Ramon
  
CA
       132       155,100  
1997
1985
EPLP
     24  
  1  
Twin Creeks
  
2711-2731 Morgan Drive
  
San Ramon
  
CA
       44       51,700  
1997
1985
EPLP
     24  
  1  
Canyon Oaks
  
1 Amberstone Lane
  
San Ramon
  
CA
       250       237,894  
2007
2005
EPLP
     4  
  1  
Mill Creek at Windermere
  
2100 Waterstone Place
  
San Ramon
  
CA
       400       381,060  
2007
2005
EPLP
     4  
                    6 %     1,720       1,624,354                
     
San Mateo County
                                              
  1  
Carlmont Woods
  
2515 Carlmont Drive
  
Belmont
  
CA
       195       107,200  
2004
1971
Fund II
     38  
  1  
Harbor Cove
  
900 E. Hillsdale Blvd.
  
Foster City
  
CA
       400       306,600  
2004
1971
Fund II
     38  
  1  
Davey Glen
  
200 Davey Glen Road
  
Belmont
  
CA
       69       65,974  
2006
1962
Fund II
     47  
  1  
Hillsdale Garden
  
3421 Edison Avenue
  
San Mateo
  
CA
       697       611,505  
2006
1948
JV - 81.5%
     61  
  1  
Belmont Terrace
  
1606 Continetals Way
  
Belmont
  
CA
       71       72,951  
2006
1974
EPLP
     35  
                    6 %     1,432       1,164,230                
                                                     
     
San Francisco and Marin Counties
                                              
  1  
Mt. Sutro Terrace Apartments
  
480 Warren Drive
  
San Francisco
  
CA
       99       64,000  
1999
1973
EPLP
     36  
  1  
Vista Belvedere
  
15 Red Hill Circle
  
Tiburon
  
CA
       76       78,300  
2004
1963
EPLP
     46  
                    1 %     175       142,300                
                                                     
     
Other
                                              
  1  
Tuscana
  
315 Mt. Oso
  
Tracy
  
CA
       30       29,088  
2007
2007
EPLP
     2  
  1  
Harvest Park
  
2327 Summercreek Drive
  
Santa Rosa
  
CA
       104       116,628  
2007
2004
EPLP
     5  
  1  
Chestnut Street Apartments
  
143 Chestnut Avenue
  
Santa Cruz
  
CA
       96       87,640  
2008
2002
EPLP
     7  
                    1 %     230       233,356                
                                                     
  36  
Total Northern California
             30 %     8,032       6,849,692             25  
                                                     
     
SOUTHERN CALIFORNIA
                                          
     
Los Angeles County
                                              
  1  
Hampton Court
  
1136 N. Columbus Avenue
  
Glendale
  
CA
       83       71,500  
1999
1974
EPLP
     35  
  1  
Hampton Place
  
245 W. Loraine Street
  
Glendale
  
CA
       132       141,500  
1999
1970
EPLP
     39  
  1  
Marbrisa
  
1809 Termino Ave.
  
Long Beach
  
CA
       202       122,800  
2002
1987
EPLP
     22  
  1  
Pathways
  
5945 E. Pacific Coast Hwy.
  
Long Beach
  
CA
       296       197,700  
1991
1975
EPLP
     34  
  1  
Bunker Hill
  
222 and 234 S. Figueroa St.
  
Los Angeles
  
CA
       456       346,600  
1998
1968
EPLP
     41  
  1  
Cochran Apartments
  
612 South Cochran
  
Los Angeles
  
CA
       58       51,400  
1998
1989
EPLP
     20  
  1  
Kings Road
  
733 North Kings Road
  
Los Angeles
  
CA
       196       132,100  
1997
1979
EPLP
     30  
  1  
Marbella
  
600 South Detroit Street
  
Los Angeles
  
CA
       60       50,108  
2005
1991
EPLP
     18  
  1  
Belmont Station
  
1302 West 2nd St.
  
Los Angeles
  
CA
       275       225,000  
2009
2009
EPLP
     0  
  1  
Park Place
  
400 S. Detroit Street
  
Los Angeles
  
CA
       60       48,000  
1997
1988
EPLP
     21  
  1  
Windsor Court
  
401 S. Detroit Street
  
Los Angeles
  
CA
       58       46,600  
1997
1988
EPLP
     21  
  1  
Renaissance
  
630 South Masselin Avenue
  
Los Angeles
  
CA
       168       154,268  
2006
1990
Fund II
     19  
  1  
Marina City Club
  
4333 Admiralty Way
  
Marina Del Rey
  
CA
       101       127,200  
2004
1971
EPLP
     38  
  1  
Mirabella
  
13701 Marina Point Drive
  
Marina Del Rey
  
CA
       188       176,800  
2000
2000
EPLP
     9  
  1  
Monterra del Mar
  
280 E. Del Mar Boulevard
  
Pasadena
  
CA
       123       74,400  
1997
1972
EPLP
     37  
  1  
Monterra del Rey
  
350 Madison
  
Pasadena
  
CA
       84       73,100  
1999
1972
EPLP
     37  
  1  
Monterra del Sol
  
280 South Euclid
  
Pasadena
  
CA
       85       69,200  
1999
1972
EPLP
     37  
  1  
Fountain Park
  
13141 Fountain Park Drive
  
Playa Vista
  
CA
       705       608,900  
2004
2002
EPLP
     7  
  1  
Highridge
  
28125 Peacock Ridge Drive
  
Rancho Palos Verde
  
CA
       255       290,200  
1997
1972
DownREIT
     37  
     
Studio 40-41
  
4043 Radford Avenue
  
Studio City
  
CA
       149       127,238      
Fund II
        
  1  
Coldwater Canyon
  
4250 Codlwater Canyon
  
Studio City
  
CA
       39       34,125  
2007
1979
EPLP
     30  
  1  
Walnut Heights
  
20700 San Jose Hills Road
  
Walnut
  
CA
       163       146,700  
2003
1964
EPLP
     45  
  1  
Avondale at Warner Center
  
22222 Victory Blvd.
  
Woodland Hills
  
CA
       446       331,000  
1999
1970
EPLP
     39  
                    16 %     4,233       3,519,201                
     
Ventura County
                                              
  1  
Camarillo Oaks
  
921 Paseo Camarillo
  
Camarillo
  
CA
       564       459,000  
1996
1985
EPLP
     24  
  1  
Camino Ruiz Square
  
105 Camino Ruiz
  
Camarillo
  
CA
       160       105,448  
2006
1990
EPLP
     19  
  1  
Mountain View
  
649 E. Las Posas Road
  
Camarillo
  
CA
       106       83,900  
2004
1980
EPLP
     29  
     
Cielo
  
Topanga Blvd
  
Chatsworth
  
CA
       119       125,400      
Fund II
        
  1  
Mariner's Place
  
711 South B Street
  
Oxnard
  
CA
       105       77,200  
2000
1987
EPLP
     22  
  1  
Tierra Vista
  
Rice and Gonzales
  
Oxnard
  
CA
       404       387,100  
2001
2001
EPLP
     8  
  1  
Monterey Villas
  
1040 Kelp Lane
  
Oxnard
  
CA
       122       122,100  
1997
1974
EPLP
     35  
  1  
Meadowood
  
1733 Cochran Street
  
Simi Valley
  
CA
       320       264,500  
1996
1986
EPLP
     23  
  1  
Hidden Valley
  
5065 Hidden Park Court
  
Simi Valley
  
CA
       324       310,900  
2004
2004
DownREIT
     5  
  1  
Lofts at Pinehurst,The
  
1021 Scandia Avenue
  
Ventura
  
CA
       118       71,100  
1997
1971
EPLP
     38  
  1  
Hillcrest Park
  
1800 West Hillcrest Drive
  
Newbury Park
  
CA
       608       521,900  
1998
1973
EPLP
     36  
  1  
Pinehurst
  
3980 Telegraph Road
  
Ventura
  
CA
       28       21,200  
2004
1973
EPLP
     36  
  1  
Woodside Village
  
675 Providence Ave.
  
Ventura
  
CA
       145       136,500  
2004
1987
EPLP
     22  
                    11 %     3,004       2,560,848                


 
 
 
 
   
SOUTHERN CALIFORNIA (cont'd)
                              
                                           
   
Santa Barbara County
                                      
  1  
Chimney Sweep
  
775 Camino Del Sur Drive
  
Goleta
  
CA
       91        
2006
1967
EPLP
     42  
  1  
CBC
  
6721 El Colegio Drive
  
Goleta
  
CA
       148        
2006
1962
EPLP
     47  
  1  
Hope Ranch (Continental Apartments)
  
3968-3974 & 3999 Via Lucero
  
Santa Barbara
  
CA
       108        
2007
1965
EPLP
     44  
     
Hope Ranch (Lucero Village)
  
3968-3974 & 3999 Via Lucero
  
Santa Barbara
  
CA
                
2007
1973
EPLP
     36  
                    1 %     347       306,608                
     
Orange County
                                              
  1  
Barkley Apartments
  
2400 E. Lincoln Ave.
  
Anahiem
  
CA
       161       139,800  
2000
1984
DownREIT
     25  
  1  
Valley Park Apartments
  
17300 Euclid Ave.
  
Fountain Valley
  
CA
       160       169,700  
2001
1969
DownREIT
     40  
  1  
Capri at Sunny Hills
  
2341 Daphne Place
  
Fullerton
  
CA
       100       128,100  
2001
1961
DownREIT
     48  
  1  
Wilshire Promenade
  
141 West Wilshire Avenue
  
Fullerton
  
CA
       149       128,000  
1997
1992
EPLP
     17  
  1  
Montejo Apartments
  
12911 Dale St.
  
Garden Grove
  
CA
       124       103,200  
2001
1974
DownREIT
     35  
  1  
Huntington Breakers
  
21270 Beach Boulevard
  
Huntington Beach
  
CA
       342       241,700  
1997
1984
EPLP
     25  
  1  
Hillsborough Park
  
1501 South Beach Boulevard
  
La Habra
  
CA
       235       215,500  
1999
1999
EPLP
     10  
  1  
Trabuco Villas
  
25362 Mosswood Way
  
Lake Forest
  
CA
       132       131,000  
1997
1985
EPLP
     24  
  1  
Fairways Apartments
  
2 Pine Valley Lane
  
Newport Beach
  
CA
       74       107,100  
1999
1972
EPLP
     37  
  1  
Villa Angelina
  
201 E. Chapman Ave.
  
Placentia
  
CA
       256       217,600  
2001
1970
DownREIT
     39  
  1  
Brentwood Apartment Homes
  
2301 E. Santa Clara Ave.
  
Santa Ana
  
CA
       140       154,800  
2001
1970
DownREIT
     39  
  1  
Treehouse Apartments
  
2601 N. Grand Ave.
  
Santa Ana
  
CA
       164       135,700  
2001
1970
DownREIT
     39  
                    8 %     2,037       1,872,200                
     
San Diego County
                                              
  1  
Alpine Country
  
2660 Alpine Blvd.
  
Alpine
  
CA
       108       81,900  
2002
1986
EPLP
     23  
  1  
Alpine Village
  
2055 Arnold Way
  
Alpine
  
CA
       306       254,400  
2002
1971
EPLP
     38  
  1  
Bonita Cedars
  
5155 Cedarwood Rd.
  
Bonita
  
CA
       120       120,800  
2002
1983
EPLP
     26  
  1  
Cambridge
  
660 F. St.
  
Chula Vista
  
CA
       40       22,100  
2002
1965
EPLP
     44  
  1  
Woodlawn Colonial
  
245-255 Woodlawn Ave.
  
Chula Vista
  
CA
       159       104,500  
2002
1974
EPLP
     35  
  1  
Mesa Village
  
5265 Clairemont Mesa Blvd.
  
Clairemont
  
CA
       133       43,600  
2002
1963
EPLP
     46  
  1  
Tierra del Sol/Norte
  
989 Peach Ave.
  
El Cajon
  
CA
       156       117,000  
2002
1969
EPLP
     40  
  1  
Mira Monte
  
10360 Maya Linda Rd.
  
Mira Mesa
  
CA
       355       262,600  
2002
1982
EPLP
     27  
  1  
Country Villas
  
283 Douglas Drive
  
Oceanside
  
CA
       180       179,700  
2002
1976
EPLP
     33  
  1  
Mission Hills
  
218 Rancho Del Oro
  
Oceanside
  
CA
       282       244,000  
2005
1984
EPLP
     25  
  1  
Bluffs II, The
  
6466 Friars Road
  
San Diego
  
CA
       224       126,700  
1997
1974
EPLP
     35  
  1  
Summit Park
  
8563 Lake Murray Blvd.
  
San Diego
  
CA
       300       229,400  
2002
1972
EPLP
     37  
  1  
Vista Capri - North
  
3277 Berger Ave.
  
San Diego
  
CA
       106       51,800  
2002
1975
EPLP
     34  
  1  
Shadow Point
  
9830 Dale Ave.
  
Spring Valley
  
CA
       172       131,200  
2002
1983
EPLP
     26  
                    10 %     2,641       1,969,700                
     
Riverside County
                                              
  1  
Parcwood
  
1700 Via Pacifica
  
Corona
  
CA
       312       270,000  
2004
1989
Fund II
     20  
  1  
Devonshire Apartments
  
2770 West Devonshire Ave.
  
Hemet
  
CA
       276       207,200  
2002
1988
EPLP
     21  
                    2 %     588       477,200                
                                                     
  65  
Total Southern California
             48 %     12,850       10,705,757             30  
                                                     
     
SEATTLE METROPOLITAN AREA
                                          
  1  
Cedar Terrace
  
3205 115th Ave. NE
  
Bellevue
  
WA
       180       174,200  
2005
1984
EPLP
     25  
  1  
Emerald Ridge
  
3010 118th Avenue SE
  
Bellevue
  
WA
       180       144,000  
1994
1987
EPLP
     22  
  1  
Foothill Commons
  
13800 NE 9th Place
  
Bellevue
  
WA
       360       288,300  
1990
1978
EPLP
     31  
  1  
Palisades, The
  
13808 NE 12th
  
Bellevue
  
WA
       192       159,700  
1990
1977
EPLP
     32  
  1  
Sammamish View
  
16160 SE Eastgate Way
  
Bellevue
  
WA
       153       133,500  
1994
1986
EPLP
     23  
  1  
Woodland Commons
  
13700 NE 10th Place
  
Bellevue
  
WA
       236       172,300  
1990
1978
EPLP
     31  
  1  
Canyon Pointe
  
1630 228th St. SE
  
Bothell
  
WA
       250       210,400  
2003
1990
EPLP
     19  
  1  
Inglenook Court
  
14220 Juanita Drive, NE
  
Bothell
  
WA
       224       183,600  
1994
1985
EPLP
     24  
  1  
Salmon Run at Perry Creek
  
2109 228th Street SE
  
Bothell
  
WA
       132       117,100  
2000
2000
EPLP
     9  
  1  
Stonehedge Village
  
14690 143rd Blvd., NE
  
Bothell
  
WA
       196       214,800  
1997
1986
EPLP
     23  
  1  
Park Hill at Issaquah
  
22516 SE 56th Street
  
Issaquah
  
WA
       245       277,700  
1999
1999
EPLP
     10  
  1  
Highlands at Wynhaven
  
1460 NE Hawthorne Street
  
Issaquah
  
WA
       333       424,674  
2008
2000
EPLP
     9  
  1  
Wandering Creek
  
12910 SE 240th
  
Kent
  
WA
       156       124,300  
1995
1986
EPLP
     23  
  1  
Bridle Trails
  
6600 130th Avenue, NE
  
Kirkland
  
WA
       108       99,700  
1997
1986
EPLP
     23  
  1  
Evergreen Heights
  
12233 NE 131st Way
  
Kirkland
  
WA
       200       188,300  
1997
1990
EPLP
     19  
  1  
Morning Run
  
18463 Blueberry Lane
  
Monroe
  
WA
       222       221,786  
2005
1991
Fund II
     18  
  1  
Laurels at Mill Creek
  
1110 164th Street SE
  
Mill Creek
  
WA
       164       134,300  
1996
1981
EPLP
     28  
  1  
Anchor Village
  
9507 49th Avenue West
  
Mukilteo
  
WA
       301       245,900  
1997
1981
DownREIT
     28  
  1  
Castle Creek
  
7000 132nd Place, SE
  
Newcastle
  
WA
       216       191,900  
1998
1998
EPLP
     11  
  1  
Brighton Ridge
  
2307 NE 4th Street
  
Renton
  
WA
       264       201,300  
1996
1986
EPLP
     23  
  1  
Fairwood Pond
  
14700 SE Petrovitsky Rd.
  
Renton
  
WA
       194       189,200  
2004
1997
EPLP
     12  
  1  
Forest View
  
650 Duvall Ave. NE
  
Renton
  
WA
       192       182,500  
2003
1998
EPLP
     11  
     
Joule Broadway
  
523 Broadway Avenue, East
  
Seattle
  
WA
       295       191,109      
JV - 50%
        
  1  
The Cairns
  
420 Yale Avenue
  
Seattle
  
WA
       100       70,806  
2007
2006
EPLP
     3  
  1  
Fountain Court
  
2400 4th Street
  
Seattle
  
WA
       320       207,000  
2000
2000
EPLP
     9  
  1  
Linden Square
  
13530 Linden Avenue North
  
Seattle
  
WA
       183       142,200  
2000
1994
EPLP
     15  
  1  
Eastlake 2851
  
2833 - 2851 Eastlake Avenue
  
Seattle
  
WA
       127       234,086  
2008
2008
Fund II
     1  
  1  
Maple Leaf
  
7415 5th Avenue, NE
  
Seattle
  
WA
       48       35,500  
1997
1986
EPLP
     23  
  1  
Spring Lake
  
12528 35th Avenue, NE
  
Seattle
  
WA
       69       42,300  
1997
1986
EPLP
     23  
  1  
Wharfside Pointe
  
3811 14th Avenue West
  
Seattle
  
WA
       142       119,200  
1994
1990
EPLP
     19  
  1  
Tower @ 801
  
801 Pine Street
  
Seattle
  
WA
       173       118,500  
2005
1970
Fund II
     39  
  1  
Echo Ridge
  
34907 SE Kinsey Street
  
Snoqualmie
  
WA
       120       124,359  
2005
2000
Fund II
     9  
  31  
Total Seattle Metropolitan Area
             22 %     5,980       5,373,411             19  
                                                     
                                                     
     
132
  
Apartment Communities
     100 %     26,862       22,928,860 (1)              
     
6
  
Apartment Communities Under Construction
             972       809,128 (2)              

     
Avg. square footage
   854       Definitions for Property Ownership  
     
Avg. units per property
   204        
EPLP
    
The Company has a 100% ownership in the community.
     
Avg. age of property
   26        
Fund II
    
The community is owned by Fund II. The Company has a 28.2% interest in Fund II which is accounted for using the equity method of accounting.
     
(1) Includes 44,318 square feet of retail or commercial space
(2) Includes 100,700 square feet of estimated retail or commercial space
        
DownREIT
    
The Company holds a 1% special limited partner interest in the partnerships which owns the community. In accordance with GAAP, the Company consolidates this community.
                   
JV - 81.5%
    
The Company has a 81.5% ownership in this community and is consolidated.
     
OTHER REAL ESTATE ASSETS
        
JV - 50%
    
The Company has a 50% ownership in this development and is consolidated.
     
Office Buildings
                                    
     
Essex Corporate Headquarter Bldg.
  
925 / 935 E. Meadow Dr.
  
Palo Alto
    
CA
             31,900  
1997 / 2007
1988 / 1962
EPLP
  
     
Derian Office Building
  
17461 Derian Av.
  
Irvine
    
CA
             110,000  
2000
1983
EPLP
  
     
Essex Southern Cal. Office Building
  
22110-22120 Clarendon St.
  
Woodland Hills
    
CA
             38,940  
2001
1982
EPLP
  
     
Hollywood
  
6230 Sunset Blvd.
  
Los Angeles
    
CA
             35,000  
2006
1938
EPLP
  
                                  215,840          

 
 
 
 
New Residential Supply: Permits as % of Current Stock
12 Month Permit Period:  Trailing 12 Months March  2009
                       
   
Single Family Data
      
Multi-Family Data
      
All Residential Data
Market
  
Median SF Price (2008est**)
    
2008 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
   $ 381,300       102 %     740,000       1,685       0.2 %       240,000       832       0.3 %       2,517       0.3 %
Boston
   $ 335,700       97 %     1,530,000       3,094       0.2 %       670,800       3,831       0.6 %       6,925       0.3 %
Miami/Ft. Lauderdale
   $ 234,200       92 %     717,000       2,571       0.4 %       876,000       3,158       0.4 %       5,729       0.4 %
Chicago
   $ 217,800       128 %     1,700,000       6,616       0.4 %       1,404,900       5,345       0.4 %       11,961       0.4 %
Philadelphia
   $ 212,500       124 %     1,532,000       6,009       0.4 %       515,100       2,174       0.4 %       8,183       0.4 %
Minneapolis
   $ 188,600       158 %     818,000       3,869       0.5 %       351,800       1,317       0.4 %       5,186       0.4 %
Baltimore
   $ 260,100       114 %     797,000       2,879       0.4 %       268,000       1,916       0.7 %       4,795       0.5 %
Wash. D.C. PMSA
   $ 295,100       127 %     1,299,000       8,591       0.7 %       644,300       3,885       0.6 %       12,476       0.6 %
Portland
   $ 264,500       101 %     561,000       3,534       0.6 %       225,335       2,608       1.2 %       6,142       0.8 %
Denver
   $ 200,800       144 %     582,000       3,380       0.6 %       274,900       3,340       1.2 %       6,720       0.8 %
New York PMSA
   $ 458,600       53 %     760,000       1,007       0.1 %       2,920,000       29,101       1.0 %       30,108       0.8 %
Atlanta
   $ 129,200       222 %     1,122,000       8,859       0.8 %       467,800       5,067       1.1 %       13,926       0.9 %
Phoenix
   $ 155,900       151 %     970,000       9,394       1.0 %       360,500       4,735       1.3 %       14,129       1.1 %
Orlando
   $ 175,200       133 %     482,000       4,177       0.9 %       201,500       3,947       2.0 %       8,124       1.2 %
Dallas-Ft. Worth
   $ 138,000       187 %     1,381,000       15,805       1.1 %       650,000       14,891       2.3 %       30,696       1.5 %
Las Vegas
   $ 181,700       124 %     440,000       5,206       1.2 %       215,700       5,636       2.6 %       10,842       1.7 %
Austin
   $ 184,800       148 %     326,000       7,042       2.2 %       169,900       4,653       2.7 %       11,695       2.4 %
Houston
   $ 142,100       176 %     1,027,000       24,525       2.4 %       547,700       12,978       2.4 %       37,503       2.4 %
Totals
   $ 230,907       135 %     16,784,000       118,243       0.7 %       11,004,235       109,414       1.0 %       227,657       0.8 %
                                                                                     
Seattle
   $ 325,000       90 %     656,000       3,953       0.6 %       354,487       5,819       1.6 %       9,772       1.0 %
                                                                                     
San Francisco
   $ 638,000       55 %     368,000       531       0.1 %       344,000       2,119       0.6 %       2,650       0.4 %
Oakland
   $ 406,000       86 %     625,000       1,607       0.3 %       270,000       1,564       0.6 %       3,171       0.4 %
San Jose
   $ 525,000       74 %     388,000       839       0.2 %       192,000       1,707       0.9 %       2,546       0.4 %
                                                                                     
Los Angeles
   $ 313,000       76 %     1,877,000       2,725       0.1 %       1,392,963       6,653       0.5 %       9,378       0.3 %
Ventura
   $ 354,000       97 %     199,000       260       0.1 %       53,295       258       0.5 %       518       0.2 %
Orange
   $ 406,000       83 %     628,000       1,254       0.2 %       340,800       1,151       0.3 %       2,405       0.2 %
San Diego
   $ 332,800       79 %     664,000       1,983       0.3 %       375,664       2,393       0.6 %       4,376       0.4 %
                                                                                     
                                                                                     
No Cal
   $ 501,256       74 %     1,381,000       2,977       0.2 %       806,000       5,390       0.7 %       8,367       0.4 %
                                                                                     
So Cal
   $ 336,667       79 %     3,368,000       6,222       0.2 %       2,162,722       10,455       0.5 %       16,677       0.3 %
                                                                                     
ESSEX
   $ 377,304       79 %     5,405,000       13,152       0.2 %       3,323,208       21,664       0.7 %       34,816       0.4 %

 
Permits:  Single Family equals 1 Unit, Multi-Family equals 5 or More Units
Sources:  SF Prices - Economy.com:  Permits, Total Residential Stock - U.S. Census, Axiometrics
**Median Home Prices - Average of Q4 2008 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 (6.03%).
Median Household Income is estimated from US Census 2004 data and Income Growth from BEA and Population Growth from the US Census.

 
 
 
 
Essex Markets Forecast 2009: 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
     5,100       1.3 %     3,400       0.5 %       -40,000       -2.7 %       -12.50 %     93.50 %
                                                                     
San Francisco
     2,600       0.7 %     500       0.1 %       -22,000       -2.2 %       -6.00 %     94.50 %
Oakland
     2,300       0.8 %     1,600       0.3 %       -18,000       -1.8 %       -10.00 %     93.50 %
San Jose
     1,800       0.9 %     700       0.2 %       -26,000       -2.9 %       -8.00 %     94.00 %
No. Cal.
     6,700       0.8 %     2,800       0.2 %       -66,000       -2.2 %       -7.8 %     94.0 %
                                                                     
Ventura
     400       0.8 %     200       0.1 %       -5,600       -2.0 %       -10.00 %     94.00 %
Los Angeles
     7,600       0.5 %     2,300       0.1 %       -70,000       -1.7 %       -10.00 %     94.00 %
Orange
     2,800       0.8 %     1,100       0.2 %       -38,000       -2.6 %       -10.00 %     93.00 %
San Diego
     2,600       0.9 %     1,700       0.2 %       -26,000       -2.1 %       -7.50 %     94.25 %
So. Cal.
     13,400       0.6 %     5,300       0.2 %       -139,600       -2.0 %       -9.5 %     94.00 %

 
All data is an Essex Forecast

U.S. Economic Assumptions:  G.D.P.:  -3.0% Growth, Jobs: - 2.6% 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 2009 over the comparable actual figures for December 2008.  The first  column represents the current Essex forecast of the increase in Total Non-Farm Industry Employment. The second column represents these forecasted new jobs as a percent of the December 2008 base.

***The Forecast Market Conditions represents Essex's estimates of the Change in Rents/Occupancy Rates at the end of 2009.  The Estimated Year-over-Year Rent Growth represents the forecast change in Effective Market Rents for  December 2009 vs.December 2008 (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 2009.