EX-99.1 2 ex99_1.htm EXHIBIT 99.1 ex99_1.htm
Essex Property Trust, Inc.
NAREIT Institutional Investor Forum
 
June 3-5, 2009
 
 
 
 
Job Growth
New construction
Income Growth
Population Growth
Household Growth
Estimate Future
Supply & Demand
Ranking of 27
Submarkets to
Determine
Allocation of
Capital
 
Project Future
 
 
Rents & Occupancy
 
Factor in Current Market
Dynamics
Proprietary Research Model
Ticker
ESS: NYSE
Founded
1971
Initial Public Offering
1994 ($19.50 per share)
Properties
132
Market Capitalization
$3.6 billion
Current Dividend Yield
6.6%
10-Year Total Return
212.9%
Debt/ Total Market Cap
49.7%
Why Essex….
• Highest total return in the sector over a 10-year period
• Strong balance sheet
• Reputable & experienced management team
• 15 consecutive years of dividend growth
• Research driven strategy
Essex Property Trust, Inc.
 
 
 
 
Seattle Metro Area
 
 
Units: 5,980
 
 
Portfolio Percentage: 22%
 
 
Occupancy: 97.3%*
 
 
NOI % of Total: 18%
 
 
Average Same-Store Rent: $1,118*
 
 
Northern California
 
 
Units: 8,032
 
 
Portfolio Percentage: 30%
 
 
Occupancy: 97.6%*
 
 
NOI % of Total: 30%
 
 
Average Same-Store Rent: $1,567*
 
 
Southern California
 
 
Units: 12,850
 
 
Portfolio Percentage: 48%
 
 
Occupancy: 96.5%*
 
 
NOI % of Total: 52%
 
 
Average Same-Store Rent: $1,431*
 
* As of March 31, 2009
West Coast Focus
 
 
 
Average Rent as a % of Median Household Income
(in 000’s)
Avg. Value 1990 - 2008
 
3 Bedroom Rent vs.
 
 
Median Monthly Home Payment
 
Growth: Jobs vs. Total Residential Supply
Seattle
 
 
 
Growth: Jobs vs. Total Residential Supply
 
3 Bedroom Rent vs.
 
 
Median Monthly Home Payment
 
Avg. Value 1990 - 2008
Average Rent as a % of Median Household Income
(in 000’s)
Northern California
 
 
 
Growth: Jobs vs. Total Residential Supply
 
3 Bedroom Rent vs.
 
 
Median Monthly Home Payment
 
Avg. Value 1990 - 2008
Average Rent as a % of Median Household Income
(in 000’s)
Southern California
 
 
 
Ø Limited total residential supply during ALL periods, not just recessions
Ø High Ownership costs vs. renting
Ø Limited exposure to high apartment vacancy during periods of job losses
Ø Ability for Apartment markets to recover relatively quickly, due to lower starting vacancy at the
point of recovery
Ø Ability to sustain rent growth over longer periods due to limited supply response with longer lag
times to job growth.
Ø Construction, both residential and non-residential (i.e. infrastructure to support new residential,
other commercial ) is not a market driver. Jobs and Gross Metro Product (and thus income) not reliant
on single family construction.
Source: Vacancy - Annual Average, Realfacts (buildings completed before 2007); Job Growth: BLS, Annual Average growth.
Stable Occupancy
 
 
 
Low Supply in Essex Markets
(Supply as a % of total housing stock)*
 
Essex Markets
Major U.S. Metros
AFFORDABILITY: Equals the ratio of the Median Household Income to the Income Required to purchase the
Median Priced Home. A value of 100% implies the Median Household Income just qualifies to purchase the
Median Priced Home. Values less (more) than 100% indicate that the Median Household Income is less (more)
than required to purchase the Median priced Home.
The Affordability number is based on a 30-year Mortgage with a 10% Down Payment at an interest rate of 5.07%
     
* Supply represents all housing units to include multifamily and single family
Essex Market Dynamics
 
 
 
 
 
 
Essex Markets
Lower Homeowner Default Rates in
Essex Markets
 
 
 
 
 
 
 
 
 
 
 
 
 
Same-Store NOI Growth
Same-Store Revenue Growth
Same-Property Financial Occupancy
*Data from SNL Financial & Keybanc Report - The Leaderboard: 5/22/2009
10-Year Total Return
 
 
 
• Self-Funded through 10-year secured financings
• Bank facility only debt with financial covenants
• Match funding strategy for external growth
Sources & Uses of Capital ($ in millions)
 
Fixed-Rate (Secured)
 
$1,281
71%
2%
14%
8%
5%
 
Line of Credit (Unsecured)
 
$45
 
Line of Credit (Secured)
 
$140
 
Exchangeable Bonds
 
$97
 
Variable Rate
 
 
$248
 
Strong Balance Sheet
 
 
 
Dividends Per Share
FFO Per Share*
* Does not include the adoption of APB 14-1 in 2008 which would retroactively alter 2007 FFO by $0.15 per share,
2008 FFO by $0.10 per share and 2009 forecasted FFO midpoint by $0.11 per share
Proven Results