EX-99.2 3 ex99_2.htm EXHIBIT 99.2
Exhibit 99.2
 
 
Q1 2014 Supplemental
Table of Contents

 
Page
 
Consolidated Operating Results
S-1 – S-2
 
Consolidated Funds From Operations
S-3
 
Consolidated Balance Sheets
S-4
 
Debt Summary – March 31, 2014
S-5
 
Capitalization Data, Public Bond Covenants, Credit Ratings, and Selected Credit Ratios – March 31, 2014
S-6
 
Property Operating Results – Quarters ended March 31, 2014 and 2013
S-7
 
Revenue by County – Quarters ended March 31, 2014, March 31, 2013, and December 31, 2013
S-8
 
Development Pipeline – March 31, 2014
S-9
 
Redevelopment Pipeline and Capital Expenditures – March 31, 2014
S-10
 
Co-Investments – March 31, 2014
S-11
 
Summary of Consolidated Co-Investments and Noncontrolling Interest – March 31, 2014
S-12
 
Assumptions for 2014 FFO Guidance Range
S-13
 
Summary of Apartment Community Acquisitions and Dispositions Activity
S-14
 
2014 MSA Level Forecasts: Supply, Jobs and Apartment Market Conditions
S-15

 
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 share and per share amounts)
  
March 31,
  
 
  
2014
    
2013
  
 
  
   
 
Revenues:
  
   
 
Rental and other property
  
$
159,017
    
$
145,057
  
Management and other fees
    
2,628
      
2,948
  
 
    
161,645
      
148,005
  
 
                
Expenses:
                
Property operating
    
51,973
      
46,326
  
Depreciation
    
50,312
      
46,787
  
General and administrative
    
7,075
      
6,239
  
Merger expenses
    
16,059
      
-
  
Cost of management and other fees
    
1,477
      
1,701
  
Acquisition and disposition costs
    
975
      
387
  
 
    
127,871
      
101,440
  
Earnings from operations
    
33,774
      
46,565
  
 
                
Interest expense before amortization
    
(26,055
)
    
(25,211
)
Amortization expense
    
(2,986
)
    
(2,930
)
Interest and other income
    
2,879
      
5,023
  
Equity income from co-investments
    
10,526
      
4,211
  
Gain on sale of real estate and land
    
8,268
      
1,503
  
Income before discontinued operations
    
26,406
      
29,161
  
Income from discontinued operations
    
-
      
542
  
Net income
    
26,406
      
29,703
  
Net income attributable to noncontrolling interest
    
(3,126
)
    
(3,132
)
Net income attributable to controlling interest
    
23,280
      
26,571
  
Dividends to preferred stockholders
    
(1,368
)
    
(1,368
)
Net income available to common stockholders
  
$
21,912
    
$
25,203
  
 
                
Net income per share - basic
  
$
0.58
    
$
0.68
  
 
                
Shares used in income per share - basic
    
37,685,073
      
37,003,925
  
 
                
Net income per share - diluted
  
$
0.58
    
$
0.68
  
 
                
Shares used in income per share - diluted
    
37,931,454
      
37,092,062
  

See Company's 10-K for additional disclosures
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)
  
2014
    
2013
  
 
  
   
 
Rental and other property
  
   
 
Rental
  
$
147,994
    
$
135,512
  
Other property
    
11,023
      
9,545
  
Rental and other property
  
$
159,017
    
$
145,057
  
 
                
Management and other fees
                
Management
  
$
1,656
    
$
2,007
  
Development and redevelopment
    
972
      
941
  
Management and other fees
  
$
2,628
    
$
2,948
  
 
                
Property operating expenses
                
Real estate taxes
  
$
15,339
    
$
14,073
  
Administrative and insurance
    
13,056
      
10,484
  
Maintenance and repairs
    
10,221
      
9,350
  
Utilities
    
9,469
      
8,942
  
Property management
    
3,888
      
3,477
  
Property operating expenses
  
$
51,973
    
$
46,326
  
 
                
Interest and other income
                
Marketable securities and other interest income
  
$
2,411
    
$
1,625
  
Notes receivable
    
41
      
787
  
Gain from sale of marketable securities and note prepayment
    
427
      
2,611
  
Interest and other income
  
$
2,879
    
$
5,023
  
 
                
Equity income from co-investments
                
Equity loss from co-investments
  
$
(18
)
  
$
(41
)
Income from preferred equity investments
    
3,485
      
3,829
  
Gain on sale of co-investment
    
3,211
      
-
  
Co-investment promote income
    
3,848
      
-
  
Income from early redemption of preferred equity investments
    
-
      
423
  
Equity income from co-investments
  
$
10,526
    
$
4,211
  
 
                
Noncontrolling interest
                
Limited partners of Essex Portfolio, L.P.
  
$
1,417
    
$
1,501
  
DownREIT limited partners' distributions
    
1,144
      
1,175
  
Third-party ownership interest
    
565
      
456
  
Noncontrolling interest
  
$
3,126
    
$
3,132
  

See Company's 10-K for additional disclosures

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,
    
 
 
  
2014
    
2013
    
% Change
  
 
  
   
   
 
Funds from operations
  
   
   
 
Net income available to common stockholders
  
$
21,912
    
$
25,203
    
 
Adjustments:
                  
 
Depreciation
    
50,312
      
47,144
    
 
Gains not included in FFO, net of internal disposition costs
    
(10,292
)
    
-
    
 
Depreciation add back from unconsolidated co-investments, and add back convertible preferred dividend - Series G
    
4,760
      
3,842
    
 
Noncontrolling interest related to Operating Partnership units
    
1,417
      
1,501
    
 
Depreciation attributable to noncontrolling interest
    
(329
)
    
(327
)
  
 
Funds from operations
  
$
67,780
    
$
77,363
    
 
FFO per share-diluted
  
$
1.68
    
$
1.97
      
-14.6
%
 
                        
Components of the change in FFO
                        
Non-core items:
                        
Acquisition costs
    
188
      
387
          
Gain on sale of marketable securities and note prepayment
    
(427
)
    
(2,611
)
        
Gain on sale of land
    
(400
)
    
(1,503
)
        
Earthquake related and other
    
1,571
      
-
          
Loss on early retirement of debt add back from unconsolidated co-investments
    
197
      
-
          
Merger expenses
    
16,059
      
-
          
Co-investment promote income
    
(3,848
)
    
-
          
Income from early redemption of preferred equity investments
    
-
      
(423
)
        
Core funds from operations
    
81,120
      
73,213
          
Core FFO per share-diluted
  
$
2.02
    
$
1.87
      
8.0
%
 
                        
Changes in core items:
                        
Same-property NOI
  
$
7,770
                  
Non-same property NOI
    
2,114
                  
Management and other fees, net
    
(96
)
                
Equity income from co-investments
    
794
                  
Interest and other income
    
40
                  
Interest and amortization expense
    
(900
)
                
General and administrative
    
(836
)
                
Discontinued operations
    
(899
)
                
Other items, net
    
(80
)
                
 
  
$
7,907
                  
 
                        
Weighted average number of shares outstanding diluted (1)
    
40,238,064
      
39,205,611
          

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

See Company's 10-K for additional disclosures

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, 2014
  
 
  
December 31, 2013
  
 
  
 
 
  
 
Real Estate:
  
 
 
  
 
Land and land improvements
  
$
1,354,748
  
 
  
$
1,083,552
  
Buildings and improvements
    
5,286,033
  
 
    
4,360,205
  
 
    
6,640,781
  
 
    
5,443,757
  
Less:  accumulated depreciation
    
(1,300,793
)
 
    
(1,254,886
)
 
    
5,339,988
  
 
    
4,188,871
  
Real estate under development
    
308,266
  
 
    
50,430
  
Co-investments
    
716,443
  
 
    
677,133
  
 
    
6,364,697
  
 
    
4,916,434
  
Cash and cash equivalents
    
48,671
  
 
    
53,766
  
Marketable securities
    
100,348
  
 
    
90,084
  
Notes and other receivables
    
36,105
  
 
    
68,255
  
Other assets
    
83,221
  
 
    
58,300
  
Total assets
  
$
6,633,042
  
 
  
$
5,186,839
  
 
        
 
        
Mortgage notes payable
  
$
1,408,232
  
 
  
$
1,404,080
  
Unsecured debt
    
1,410,162
  
 
    
1,410,023
  
Lines of credit
    
135,903
  
 
    
219,421
  
Other liabilities
    
114,883
  
 
    
148,046
  
Derivative liabilities
    
2,109
  
 
    
2,682
  
Total liabilities
    
3,071,289
  
 
    
3,184,252
  
 
        
 
        
Cumulative convertible preferred stock, carrying value
    
4,349
  
 
    
4,349
  
 
        
 
        
Equity:
        
 
        
Common stock
    
4
  
 
    
4
  
Cumulative redeemable preferred stock, liquidation value
    
73,750
  
 
    
73,750
  
Additional paid-in-capital
    
2,505,003
  
 
    
2,345,763
  
Distributions in excess of accumulated earnings
    
(498,368
)
 
    
(474,426
)
Accumulated other comprehensive loss
    
(56,395
)
 
    
(60,472
)
Total stockholders' equity
    
2,023,994
  
 
    
1,884,619
  
Noncontrolling interest
    
1,533,410
  
(1)
    
113,619
  
Total equity
    
3,557,404
  
 
    
1,998,238
  
Total liabilities and equity
  
$
6,633,042
  
 
  
$
5,186,839
  

(1) Includes $1.4 billion related to the issuance of Operating Partnership Units issued to BRE Properties on March 31, 2014 for the contribution of 14 properties to the Operating Partnership. On April 1, 2014, the units were retired in the merger with BRE.
 
See Company's 10-K for additional disclosures
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, 2014
(Dollars in thousands)

 
  
 
    
 
    
 
    
 
    
Scheduled principal payments (excludes lines of credit)
  
 
  
   
   
   
   
   
   
   
   
   
 
 
  
Percentage
    
   
Weighted Average
    
   
   
   
   
Weighted
    
Percentage
  
 
  
of Total
    
Balance
    
Interest
    
Maturity
    
   
Balance Outstanding
    
Average Interest
    
of Total
  
 
  
Debt
    
Outstanding
    
Rate
    
In Years
    
   
Secured
    
Unsecured
    
Total
    
Rate
    
Debt
  
Mortgage Notes Payable
  
   
   
   
   
   
   
   
   
   
 
Fixed rate - secured
    
42
%
  
$
1,230,625
      
6.0
%
    
4.9
      
2014
    
$
-
    
$
-
    
$
-
      
-
      
-
  
Variable rate - secured (1)
    
6
%
    
177,607
      
1.5
%
    
18.8
      
2015
      
67,070
      
-
      
67,070
      
5.2
%
    
2.4
%
Total mortgage notes payable
    
48
%
    
1,408,232
      
5.4
%
    
6.7
      
2016
      
12,319
      
350,000
      
362,319
      
3.3
%
    
12.9
%
 
                                    
2017
      
182,049
      
190,000
      
372,049
      
4.3
%
    
13.2
%
Unsecured Debt
                                    
2018
      
269,939
      
-
      
269,939
      
5.8
%
    
9.6
%
Bonds private - fixed rate
    
16
%
    
465,000
      
4.5
%
    
5.0
      
2019
      
264,984
      
75,000
      
339,984
      
5.4
%
    
12.0
%
Bonds public - fixed rate
    
20
%
    
595,162
      
3.5
%
    
8.7
      
2020
      
396,721
      
-
      
396,721
      
6.4
%
    
14.1
%
Term loan (2)
    
12
%
    
350,000
      
2.4
%
    
2.9
      
2021
      
47,543
      
200,000
      
247,543
      
5.0
%
    
8.8
%
 
    
48
%
    
1,410,162
      
3.6
%
    
6.1
      
2022
      
-
      
297,387
      
297,387
      
3.7
%
    
10.5
%
Unsecured Lines of Credit
                                    
2023
      
-
      
297,775
      
297,775
      
3.4
%
    
10.6
%
Line of credit (3)
    
4
%
    
124,000
      
1.6
%
            
2024
      
-
      
-
      
-
      
-
      
-
  
Line of credit (4)
    
-
      
11,903
      
1.6
%
          
Thereafter
      
167,607
      
-
      
167,607
      
1.5
%
    
5.9
%
Total lines of credit
    
4
%
    
135,903
      
1.6
%
                                                        
 
                                  
Total
    
$
1,408,232
    
$
1,410,162
    
$
2,818,394
      
4.5
%
    
100.0
%
Total debt
    
100
%
  
$
2,954,297
      
4.4
%
                                                        
                                                                                   

Capitalized interest for the three months ended March 31, 2014 was approximately $3.4 million.

 
(1)
Variable rate debt of $167.6 million is tax exempt to the note holders and $156.9 million is subject to interest rate protection agreements.
 
(2)
The unsecured term loan has a variable interest rate of LIBOR plus 1.05%.  The Company has entered into interest rate swap contracts with a notional amount totaling $300 million, which effectively converts the interest rate on $300 million of the term loan to a fixed rate of 2.4%.
 
(3)
The unsecured line of credit facility is $1 billion and the line matures in December 2017 with one 18-month extension, exercisable at the Company's option.  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 0.95%.
 
(4)
The unsecured line of credit facility is $25 million and matures in January 2016.  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 0.95%.
 
See Company's 10-K for additional disclosures

E S S E X  P R O P E R T Y  T R U S T, I N C.               
             
Capitalization Data, Public Bond Covenants, Credit Ratings and Selected Credit Ratios - March 31, 2014
(Dollars and shares in thousands, except per share amounts)
                                                              
Capitalization Data
  
 
  
Public Bond Covenants (1)
  
Actual
     
Requirement
Total debt
  
$
2,954,297
  
 
  
 
   
 
        
Debt to Total Assets:
    
46
%
< 65%
Common stock and potentially dilutive securities
        
 
        
     
Common stock outstanding
    
38,392
  
 
        
   
Limited partnership units (1)(2)
    
2,176
  
 
        
   
Options-treasury method
    
348
  
Secured Debt to Total Assets:
    
22
%
< 40%
Total shares of common stock and potentially dilutive securities
    
40,916
  
 
        
   
 
        
 
        
      
Common stock price per share as of March 31, 2014
  
$
170.05
  
 
        
   
 
        
Interest Coverage:
    
347
%
> 150%
Market value of common stock and potentially dilutive securities
  
$
6,957,766
  
 
        
   
 
        
 
        
      
Preferred stock
  
$
73,079
  
Unsecured Debt Ratio (2) :
    
243
%
> 150%
 
        
 
        
      
Total equity capitalization
  
$
7,030,845
  
 
        
   
 
        
Selected Credit Ratios (1)
  
Actual
  
 
Total market capitalization
  
$
9,985,142
  
 
        
   
Ratio of debt to total market capitalization
    
29.6
%
Indebtedness Divided by Adjusted EBITDA (3):
    
6.8
x
 
 
        
 
        
      
 
        
Unencumbered NOI to Total NOI:
    
60
%
 
   
(1)   Assumes conversion of all outstanding operating partnership interests in the Operating Partnership into shares of the Company's common stock.
 
(2)   Excludes 8.6 million of Operating Partnership Units issued to BRE Properties on March 31, 2014 for the contribution of 14 properties to the Operating Partnership. On April 1, 2014, the units were retired as part of the merger with BRE.
(1) Excludes 14 properties, or approximately $1.4 billion, contributed to the Operating Partnership at March 31, 2014 by BRE in exchange for OP units.  On April 1, 2014, the units were retired by Essex.
 
(2) Unsecured Debt Ratio is unsecured assets (excluding investments in co-investments) divided by unsecured indebtedness.
 
(3) Adjusted EBITDA is annualized current quarter NOI adjusted for non-recurring items and proforma NOI for current quarter acquisitions.
 
Credit Ratings 
  
Rating Agency
Rating 
Outlook
  
Fitch 
  BBB+
Stable
  
Moody's
 Baa2
Stable
  
Standard & Poors 
BBB
Stable
  
 
 
 
 
See Company's 10-K for additional disclosures
E S S E X  P R O P E R T Y  T R U S T, I N C.

Property Operating Results - Quarters ended March 31, 2014 and 2013
(Dollars in thousands, except per unit amounts)

 
  
Southern California
    
Northern California
    
Seattle Metro
    
Other real estate assets (1)
    
Total
  
 
  
2014
    
2013
    
% Change
    
2014
    
2013
    
% Change
    
2014
    
2013
    
% Change
    
2014
    
2013
    
2014
    
2013
    
% Change
  
 
  
   
   
   
   
   
   
   
   
   
   
   
   
   
 
Revenues:
  
   
   
   
   
   
   
   
   
   
   
   
   
   
 
Same-property revenue
  
$
65,475
    
$
62,431
      
4.9
%
  
$
53,054
    
$
48,461
      
9.5
%
  
$
27,896
    
$
25,751
      
8.3
%
  
$
-
    
$
-
    
$
146,425
    
$
136,643
      
7.2
%
Non-same property revenue (2)
    
4,212
      
2,309
              
3,890
      
2,309
              
745
      
-
              
3,745
      
3,796
      
12,592
      
8,414
          
Total Revenues
  
$
69,687
    
$
64,740
            
$
56,944
    
$
50,770
            
$
28,641
    
$
25,751
            
$
3,745
    
$
3,796
    
$
159,017
    
$
145,057
          
 
                                                                                                                
Property operating expenses:
                                                                                                                
Same-property operating expenses
                                                                                                                
Real estate taxes
  
$
5,721
    
$
5,511
            
$
4,989
    
$
4,818
            
$
2,909
    
$
2,598
            
$
-
    
$
-
    
$
13,619
    
$
12,927
      
5.4
%
Administrative and insurance
    
5,756
      
5,596
              
2,984
      
2,958
              
1,871
      
1,834
              
-
      
-
      
10,611
      
10,388
      
2.1
%
Maintenance and repairs
    
4,326
      
4,111
              
3,139
      
2,995
              
1,803
      
1,638
              
-
      
-
      
9,268
      
8,744
      
6.0
%
Utilities
    
3,630
      
3,351
              
2,978
      
2,851
              
2,019
      
1,980
              
-
      
-
      
8,627
      
8,182
      
5.4
%
Management fees
    
1,421
      
1,394
              
1,024
      
967
              
750
      
706
              
-
      
-
      
3,195
      
3,067
      
4.2
%
Total same-property operating expenses
    
20,854
      
19,963
      
4.5
%
    
15,114
      
14,589
      
3.6
%
    
9,352
      
8,756
      
6.8
%
    
-
      
-
      
45,320
      
43,308
      
4.6
%
Non-same property operating expenses (2)(7)
    
1,767
      
1,069
              
1,477
      
898
              
244
      
-
              
3,165
      
1,051
      
6,653
      
3,018
          
Total property operating expenses
  
$
22,621
    
$
21,032
            
$
16,591
    
$
15,487
            
$
9,596
    
$
8,756
            
$
3,165
    
$
1,051
    
$
51,973
    
$
46,326
          
 
                                                                                                                
Net operating income (NOI):
                                                                                                                
Same-property NOI
  
$
44,621
    
$
42,468
      
5.1
%
  
$
37,940
    
$
33,872
      
12.0
%
  
$
18,544
    
$
16,995
      
9.1
%
  
$
-
    
$
-
    
$
101,105
    
$
93,335
      
8.3
%
Non-same property NOI (2)
                                                                                                                
Redevelopment communities
    
1,454
      
1,240
              
-
      
-
              
-
      
-
              
-
      
-
      
1,454
      
1,240
          
Development communities - 2014 (3)
    
(13
)
    
-
              
-
      
-
              
-
      
-
              
-
      
-
      
(13
)
    
-
          
Acquired communities - 2013 (4)
    
1,004
      
-
              
2,413
      
1,411
              
501
      
-
              
-
      
-
      
3,918
      
1,411
          
Other real estate assets (1)
    
-
      
-
              
-
      
-
              
-
      
-
              
580
      
2,745
      
580
      
2,745
          
Total non-same property NOI (6)
    
2,445
      
1,240
              
2,413
      
1,411
              
501
      
-
              
580
      
2,745
      
5,939
      
5,396
          
Total NOI
  
$
47,066
    
$
43,708
            
$
40,353
    
$
35,283
            
$
19,045
    
$
16,995
            
$
580
    
$
2,745
    
$
107,044
    
$
98,731
          
 
                                                                                                                
Same-property operating margin
    
68
%
    
68
%
            
72
%
    
70
%
            
66
%
    
66
%
                            
69
%
    
68
%
        
 
                                                                                                                
Annualized same-property turnover percentage
    
45
%
    
45
%
            
45
%
    
46
%
            
39
%
    
37
%
                            
44
%
    
43
%
        
 
                                                                                                                
Average same-property concessions per turn (5)
  
$
117
    
$
148
            
$
173
    
$
178
            
$
126
    
$
133
                            
$
137
    
$
155
          
 
                                                                                                                
Reconciliation of apartment units at end of period
                                                                                                                
 
                                                                                                                
Same-property apartment units
    
12,914
                      
8,840
                      
6,537
                                      
28,291
                  
 
                                                                                                                
Consolidated apartment units
    
13,870
      
13,656
              
9,430
      
9,431
              
6,703
      
6,720
                              
30,003
      
29,807
          
Joint venture
    
1,870
      
1,788
              
1,592
      
1,236
              
1,157
      
1,512
                              
4,619
      
4,536
          
Under development
    
571
      
492
              
1,780
      
1,728
              
-
      
-
                              
2,351
      
2,220
          
Total apartment units at end of period
    
16,311
      
15,936
              
12,802
      
12,395
              
7,860
      
8,232
                              
36,973
      
36,563
          
 
                                                                                                                
Percentage of total
    
44
%
    
44
%
            
35
%
    
34
%
            
21
%
    
22
%
                            
100
%
    
100
%
        
 
                                                                                                                
Average same-property financial occupancy
    
96.4
%
    
96.5
%
            
96.5
%
    
96.5
%
            
96.5
%
    
96.6
%
                            
96.5
%
    
96.5
%
        
                    
(1)
Other real estate assets consists mainly of retail space, commercial properties, boat slips, and properties sold during 2014. Their operating results are classified in non-same property results.
(2)
Includes properties which subsequent to January 1, 2013 were either acquired or in a stage of development or redevelopment without stabilized operations.
(3)
In March 2014, the Company purchased The Avery, a development community that is in lease up.
(4)
Acquired communities during 2013 includes Annaliese, Fox Plaza, Slater 116, Vox, and Domain.
(5)
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 for the quarter times the same-property apartment units.
(6)
Non-same property NOI excludes operating results related to 14 BRE properties contributed to the Operating Partnership on March 31, 2014.
(7)
Other real estate asset expenses for the quarter ended March 31, 2014, includes $1.6 million related to earthquake and flood damage at two communities.
 
 
See Company's 10-K for additional disclosures
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, 2014, March 31, 2013 and December 31, 2013                        
(Dollars in thousands, except average property rental rates)      
    
 
  
   
   
   
   
Three months ended
    
Three months ended
    
   
   
 
 
  
   
Average Property Rental Rates
    
March 31, 2014
    
March 31, 2013
    
   
   
 
 
 
Region
  
Units
    
QTD
 2014
    
QTD
 2013
    
% Change
    
Property
Revenue
    
Financial
Occupancy
    
Property
Revenue
    
Financial
Occupancy
    
Property
Revenue
 %
Change
    
Property
Revenue
 December 31,
2013
    
Sequential
 % Change
  
 
  
   
   
   
   
   
   
   
   
   
   
 
Southern California
  
   
   
   
   
   
   
   
   
   
   
 
Los Angeles County
    
4,439
    
$
1,865
    
$
1,783
      
4.6
%
  
$
25,237
      
96.5
%
  
$
24,106
      
96.7
%
    
4.7
%
  
$
25,019
      
0.9
%
Ventura County
    
2,898
      
1,442
      
1,384
      
4.2
%
    
13,016
      
96.9
%
    
12,446
      
96.9
%
    
4.6
%
    
12,815
      
1.6
%
Orange County
    
2,887
      
1,889
      
1,795
      
5.2
%
    
16,467
      
95.8
%
    
15,644
      
96.4
%
    
5.3
%
    
16,290
      
1.1
%
San Diego County
    
2,067
      
1,273
      
1,222
      
4.2
%
    
8,186
      
96.2
%
    
7,828
      
96.2
%
    
4.6
%
    
8,092
      
1.2
%
Santa Barbara County
    
347
      
1,750
      
1,670
      
4.8
%
    
1,892
      
99.6
%
    
1,779
      
97.6
%
    
6.4
%
    
1,892
      
0.0
%
Riverside County
    
276
      
791
      
798
      
-0.9
%
    
677
      
95.7
%
    
628
      
89.5
%
    
7.8
%
    
668
      
1.3
%
Total same-property
    
12,914
      
1,655
      
1,582
      
4.6
%
    
65,475
      
96.4
%
    
62,431
      
96.5
%
    
4.9
%
    
64,776
      
1.1
%
Los Angeles County
    
577
      
1,727
                      
2,385
              
2,309
                                  
San Diego County
    
379
      
1,895
                      
1,827
              
-
                                  
Non-same property
    
956
      
1,794
                      
4,212
              
2,309
                                  
 
Northern California
                                                                                        
Santa Clara County
    
4,279
      
2,075
      
1,907
      
8.8
%
    
26,992
      
96.6
%
    
24,710
      
96.6
%
    
9.2
%
    
26,479
      
1.9
%
Contra Costa County
    
1,720
      
1,772
      
1,647
      
7.6
%
    
9,305
      
96.3
%
    
8,619
      
96.4
%
    
8.0
%
    
9,094
      
2.3
%
Alameda County
    
1,542
      
1,757
      
1,582
      
11.1
%
    
8,504
      
97.3
%
    
7,644
      
97.1
%
    
11.3
%
    
8,278
      
2.7
%
San Mateo County
    
768
      
2,146
      
1,960
      
9.5
%
    
5,106
      
96.7
%
    
4,655
      
97.2
%
    
9.7
%
    
5,004
      
2.0
%
San Francisco MSA
    
301
      
2,235
      
1,995
      
12.0
%
    
1,968
      
93.4
%
    
1,741
      
92.1
%
    
13.0
%
    
1,996
      
-1.4
%
Other
    
230
      
1,683
      
1,572
      
7.1
%
    
1,179
      
96.3
%
    
1,092
      
95.8
%
    
8.0
%
    
1,163
      
1.4
%
Total same-property
    
8,840
      
1,962
      
1,799
      
9.1
%
    
53,054
      
96.5
%
    
48,461
      
96.5
%
    
9.5
%
    
52,014
      
2.0
%
San Francisco MSA
    
590
      
2,271
                      
3,890
              
2,309
                                  
Non-same property
    
590
      
2,271
                      
3,890
              
2,309
                                  
 
                                                                                        
Seattle Metro
                                                                                        
King County
    
6,072
      
1,369
      
1,273
      
7.5
%
    
26,409
      
96.5
%
    
24,402
      
96.6
%
    
8.2
%
    
26,115
      
1.1
%
Snohomish County
    
465
      
990
      
919
      
7.7
%
    
1,487
      
97.6
%
    
1,349
      
96.8
%
    
10.2
%
    
1,435
      
3.6
%
Total same-property
    
6,537
      
1,342
      
1,247
      
7.7
%
    
27,896
      
96.5
%
    
25,751
      
96.6
%
    
8.3
%
    
27,550
      
1.3
%
King County
    
166
      
1,622
                      
745
              
-
                                  
Non-same property
    
166
      
1,622
                      
745
              
-
                                  
 
                                                                                        
Other real estate assets
                                    
3,745
              
3,796
                                  
 
                                                                                        
Total same-property revenue
    
28,291
    
$
1,678
    
$
1,572
      
6.8
%
  
$
146,425
      
96.5
%
  
$
136,643
      
96.5
%
    
7.2
%
  
$
144,340
      
1.4
%
 
                                                                                        
Total non-same property revenue
    
1,712
    
$
1,941
                    
$
12,592
            
$
8,414
                                  
 
See Company's 10-K for additional disclosures

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, 2014
(Dollars in millions, except per unit amounts in thousands)
                                                                                                                                                    
 
  
  
  
Ownership
%
    
Estimated Units
    
Estimated Retail sq. feet
    
Incurred to Date
    
Remaining Costs
    
Estimated Total Cost
    
Essex Share of Estimated Total Cost
  
 
  
Apartment Cost per Unit
    
Construction Start
    
Initial Occupancy
    
Stabilized Operations
  
Development Projects - Consolidated
  
   
   
   
   
   
   
 
 
   
   
   
 
Project Name
Location
  
   
   
   
   
   
   
 
 
   
   
   
 
Emme
Emeryville, CA
    
100
%
    
190
      
-
    
$
40
    
$
22
    
$
62
    
$
62
  
 
$
326
      
Q3 2012
      
Q3 2014
      
Q1 2015
  
Avery (1)
Valley Village, CA
    
100
%
    
121
      
-
      
37
      
1
      
38
      
38
  
   
314
      
Q3 2012
      
Q1 2014
      
Q2 2014
  
Total Development Projects - Consolidated
            
311
      
-
      
77
      
23
      
100
      
100
  
   
322
                          
 
 
                                                        
                               
Other Development Projects - Consolidated
                                                        
                               
Project Name
Location
                                                        
                               
City Centre
Moorpark, CA
    
100
%
    
200
      
-
      
12
      
-
      
12
      
12
  
                               
Other Projects
various
    
100
%
    
-
      
-
      
3
      
-
      
3
      
3
  
                               
Real Estate under Development transferred from BRE on 3/31/14 (2)
    
100
%
    
-
      
-
      
252
      
253
      
505
      
505
  
                               
Total Other Development Projects - Consolidated
            
200
      
-
      
267
      
253
      
520
      
520
  
                               
Total Development Pipeline - Consolidated
            
511
      
-
      
344
      
276
      
620
      
620
  
                               
 
 
                                                        
                               
Development Projects - Joint Venture
                                                        
                               
Project Name
Location
                                                        
                               
Epic - Phase II
San Jose, CA
    
55
%
    
289
      
-
      
88
      
9
      
97
      
54
  
   
336
      
Q1 2012
      
Q4 2013
      
Q2 2014
  
Epic - Phase III
San Jose, CA
    
55
%
    
200
      
-
      
36
      
60
      
96
      
53
  
   
480
      
Q3 2013
      
Q3 2015
      
Q1 2016
  
The Huxley
West Hollywood, CA
    
50
%
    
187
      
18,200
      
75
      
-
      
75
      
38
  
(3)
    
339
      
Q4 2011
      
Q1 2014
      
Q3 2014
  
The Dylan
West Hollywood, CA
    
50
%
    
184
      
12,750
      
70
      
5
      
75
      
38
  
(3)
    
363
      
Q4 2011
      
Q2 2014
      
Q4 2014
  
Mosso I
San Francisco, CA
    
55
%
    
181
      
5,030
      
78
      
22
      
100
      
55
  
(3)
    
538
      
Q2 2012
      
Q2 2014
      
Q1 2015
  
Mosso II
San Francisco, CA
    
55
%
    
282
      
4,270
      
128
      
22
      
150
      
82
  
(3)
    
525
      
Q2 2012
      
Q3 2014
      
Q2 2015
  
Park 20
San Mateo, CA
    
55
%
    
197
      
-
      
53
      
23
      
76
      
42
        
386
      
Q3 2012
      
Q3 2014
      
Q1 2015
  
One South Market
San Jose, CA
    
55
%
    
312
      
6,000
      
41
      
104
      
145
      
80
  
(3)
    
458
      
Q2 2013
      
Q3 2015
      
Q2 2016
  
The Village
Walnut Creek, CA
    
50
%
    
49
      
35,000
      
40
      
41
      
81
      
41
  
(3)
    
769
      
Q3 2013
      
Q3 2015
      
Q1 2016
  
Total Development Projects - Joint Venture
            
1,881
      
81,250
      
609
      
286
      
895
      
483
      
$
439
                          
 
 
                                                                                          
Grand Total - Development Pipeline
            
2,392
      
81,250
    
$
953
    
$
562
    
$
1,515
      
1,103
                                    
Essex Cost Incurred to Date
                                                    
(670
)
                                  
Essex Remaining Commitment
                                                  
$
433
                                    
 
(1)
The Company purchased this property in March 2014 after it obtained a certificate of occupancy.
(2)
The real estate under development was transferred on March 31, 2014 as part of the Operating Partnership unit trade that occurred one day prior to the close of the merger with BRE.
(3)
Excludes the estimated allocation to retail square feet.
See Company's 10-K for additional disclosures

E S S E X  P R O P E R T Y  T R U S T, I N C.                                                                                                                                                                                                     
                                                                                         
Redevelopment Pipeline and Capital Expenditures - March 31, 2014                                                                                                                                                                                                                       
(Dollars in thousands, except per unit amounts)                                                                                                                                                                                                         
                                                                                             
 
  
  
   
Total
    
Estimated
    
Estimated
    
 
    
NOI
  
 
  
   
Incurred
    
Remaining
    
Total
    
Project
    
For the three months ended
  
Region/Project Name
  
Units
    
To Date
    
Cost
    
Cost
    
Start
    
2014
    
2013
  
 
  
   
   
   
   
   
   
 
Same-property - Redevelopment Projects (1) (2)
  
   
   
   
   
   
   
 
Southern California
  
   
   
   
   
   
   
 
The Hamptons, Glendale, CA
    
215
    
$
73
    
$
19,408
    
$
19,481
      
Q1 2014
    
   
 
The Monterras, Pasadena, CA
    
292
      
691
      
25,692
      
26,383
      
Q1 2014
    
 
    
 
  
Total Same-Property - Redevelopment Projects
    
507
    
$
764
    
$
45,100
    
$
45,864
            
$
1,792
    
$
1,794
  
 
                                                        
 
                                                        
Same-Property Redevelopment Vacancy Loss
                                          
$
441
    
$
431
  
 
                                                        
Non-same property - Redevelopment Projects
                                                        
Southern California
                                                        
Bunker Hill Towers, Los Angeles
    
456
      
4,189
      
71,955
      
76,144
      
Q3 2013
                  
Total Non-Same Property - Redevelopment Projects
    
456
    
$
4,189
    
$
71,955
    
$
76,144
            
$
1,454
    
$
1,240
  

(1)
Redevelopment activities are ongoing at these communities, but the communities have stabilized operations, therefore results are classified in same-property operations.
(2)
The Company incurred $0.4 million of vacancy loss for the same-property portfolio, and $0.6 million  of vacancy loss for the total portfolio during the three months ended March 31, 2014. The Company completed the redevelopment of interiors totaling 240 units for the same-property portfolio and 285 units for the total portfolio, during the three months ended March 31, 2014.

Non-revenue Generating Capital Expenditures
    
Q1 2014
      
Q4 2013
      
Q3 2013
      
Q2 2013
      
Q1 2013
      
Q4 2012
      
Q3 2012
  
 
                                                        
Non-revenue generating capital expenditures
  
$
4,416
    
$
5,153
    
$
9,536
    
$
8,330
    
$
4,019
    
$
14,715
    
$
8,736
  
Average apartment units in quarter
    
29,886
      
29,833
      
29,646
      
29,338
      
28,900
      
28,269
      
27,815
  
Capital expenditures per apartment unit in the quarter
  
$
148
    
$
173
    
$
322
    
$
284
    
$
139
    
$
521
    
$
314
  
Capital expenditures per apartment unit-trailing four quarters
  
$
918
    
$
906
    
$
1,235
    
$
1,220
    
$
1,153
    
$
1,079
    
$
1,004
  
 
See Company's 10-K for additional disclosures
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, 2014
  
Essex
    
   
Total
    
   
Essex
    
Weighted
    
Remaining
    
For the Quarter
  
(Dollars in thousands)
  
Ownership
    
   
Undepreciated
    
Debt
    
Book
    
Average
    
Term of
    
Ended March 31,
  
 
  
Percentage
    
Units
    
Book Value
    
Amount
    
Value
    
Borrowing Rate
    
Debt/(in Years)
    
2014
    
2013
  
 
  
   
   
   
   
   
   
   
   
 
Operating Non-consolidated Joint Ventures
    
   
   
   
   
   
   
Net Operating Income
  
 
  
   
   
   
   
   
   
   
   
 
Essex Apartment Value Fund II, L.P. (Fund II) (1)
    
28.2
%
    
96
    
$
14,421
    
$
6,297
    
$
7,235
      
5.6
%
    
0.4
    
$
305
    
$
4,416
  
Wesco I, LLC (2)
    
50.0
%
    
2,713
      
672,617
      
368,832
      
136,495
      
4.0
%
    
9.2
      
8,939
      
8,229
  
Wesco III, LLC (2)
    
50.0
%
    
657
      
165,008
      
87,712
      
38,928
      
2.7
%
    
6.0
      
1,956
      
629
  
Expo
    
50.0
%
    
275
      
64,690
      
45,000
      
11,877
      
3.6
%
    
6.4
      
1,157
      
385
  
   Total Operating Non-consolidated Joint Ventures
      
3,741
    
$
916,736
    
$
507,841
      
194,535
      
3.8
%
    
8.3
    
$
12,357
    
$
13,659
  
 
                                                                        
 
                                                          
Essex Portion of NOI
and Expenses
  
Essex portion of NOI
                                                          
$
6,112
    
$
5,867
  
Essex portion of depreciation
                                                            
(4,706
)
    
(3,788
)
Essex portion of interest expense and other
                                                            
(2,443
)
    
(2,120
)
Essex portion of gain and promote income (Fund II)
                                                            
7,059
      
-
  
Essex portion of net income (loss) from operating co-investments
                                                    
$
6,022
    
$
(41
)
 
                                                                        
Development Joint Ventures (3) (4)
    
50/55
%
    
2,470
    
$
784,989
    
$
109,100
      
378,200
      
1.5
%
    
32.7
    
$
1,019
    
$
-
  
 
                                                                        
 
                                          
Weighted
Average
Preferred
Return
    
Weighted
Average
Expected
Term
    
Income from
Preferred
Equity Investments
  
 
                                                          
Equity Investments
  
Preferred Equity Investments
                                    
143,708
      
10.0
%
    
3.8
    
$
3,485
    
$
4,252
  
 
                                                                        
Total Co-investments
                                  
$
716,443
                    
$
10,526
    
$
4,211
  
 
 
(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 exceeds certain financial return benchmarks.  As of Q1 2014, 13 of the 14 properties in Fund II were sold.  The remaining property is expected to be sold in 2014.
 
(2)
The Company has a 50% interest in Wesco I and III and the Company may earn promote income if the co-investment exceeds certain financial benchmarks.
 
(3)
The Company has interests in nine development co-investments, which are detailed on S-9.  NOI generated from the lease-up of Epic Phase 1 and 2 and Connolly Station are included in Development Joint Ventures.
 
(4)
The Huxley and The Dylan have a combined $109.1 million of long-term tax-exempt bond debt that are subject to total return swaps that mature in 2016.

See Company's 10-K for additional disclosures
E S S E X  P R O P E R T Y  T R U S T, I N C.

Summary of Consolidated Co-Investments and Noncontrolling Interest - March 31, 2014
(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 year ended
  
 
  
Balance as of March 31, 2014
    
March 31, 2014
  
 
  
Investment in
    
Related
    
Noncontrolling
    
DownREIT
    
   
Operating
    
 
 
  
Real Estate
    
Debt
    
Interest
    
Units Outstanding (1)
    
Revenue
    
Expenses
    
NOI
  
 
  
   
   
   
   
   
   
 
Noncontrolling Interest - DownREIT:
  
   
   
   
   
   
   
 
Barkley Apartments
  
$
8,225
    
$
16,466
    
$
1,696
      
74,248
    
$
683
    
$
233
    
$
450
  
Avery (2)
    
36,509
      
10,000
      
2,568
      
58,884
      
-
      
-
      
-
  
Brookside Oaks
    
31,478
      
19,565
      
2,239
      
80,903
      
1,037
      
195
      
842
  
Capri at Sunny Hills
    
15,594
      
-
      
2,945
      
158,665
      
654
      
177
      
477
  
Hidden Valley (3)
    
36,635
      
30,033
      
6,089
      
62,647
      
1,428
      
433
      
995
  
Highridge Apartments
    
29,835
      
44,807
      
2,826
      
270,158
      
1,739
      
397
      
1,342
  
Montejo Apartments
    
7,774
      
13,000
      
1,216
      
29,319
      
488
      
125
      
363
  
The Elliot at Mukilteo
    
15,396
      
10,750
      
1,212
      
100,713
      
932
      
327
      
605
  
Magnolia Square
    
30,697
      
18,044
      
6,356
      
57,231
      
1,016
      
258
      
758
  
Fairhaven Apartments
    
12,475
      
16,871
      
2,951
      
67,728
      
686
      
183
      
503
  
Valley Park Apartments
    
13,142
      
22,071
      
53
      
3,831
      
780
      
295
      
485
  
Villa Angelina Apartments
    
19,111
      
26,907
      
1,593
      
43,552
      
1,070
      
272
      
798
  
 
                                                        
 
  
$
256,871
    
$
228,514
      
31,744
      
1,007,879
    
$
10,513
    
$
2,895
    
$
7,618
  
 
                                                        
Other Components of Noncontrolling Interest:
                                                        
Hillsdale Garden Apartments (4)
  
$
107,180
              
21,269
            
$
4,599
    
$
1,447
    
$
3,152
  
Operating Partnership Units and Other
                    
60,581
                                  
Units from BRE Asset Contribution (5)
                    
1,419,816
                                  
Total Noncontrolling Interest
                  
$
1,533,410
                                  

(1)
Generally, DownREIT units are redeemed for cash at a value equal to Essex's common stock.
(2)
Avery was acquired on March 28, 2014 as the replacement property for Brentwood which completed a 1031 exchange transaction. Attributable to the 1031 exchange, the partnership underlying the noncontrolling interest remains in place. The Avery is in lease-up and therefore had no NOI during the period.
(3)
The DownREIT has a 75% interest in this community and a joint venture partner has a 25% interest.
(4)
The Company has an 81.5% interest in this community and the joint venture partner has an 18.5% interest.
(5)
Includes 8.6 million of Operating Partnership Units issued to BRE Properties on March 31, 2014 for the contribution of 14 properties to the Operating Partnership. On April 1, 2014, the units were retired as part of the merger with BRE.
See Company's 10-K for additional disclosures
 
E S S E X  P R O P E R T Y  T R U S T, I N C.
Assumptions for 2014 FFO Guidance Range
Q1 2014 Earnings Results Supplement
Includes the Impact from BRE Properties as of April 1, 2014
($'s in thousands, except share and per share data)
   
Changes to Guidance
Including BRE Merger
    
2014 Revised Guidance
 Range for ESS
  
 
 
  
ESS
    
 
    
   
   
 
      
 
  
Standalone
    
Low
    
High
    
Low
    
High
  
 
 
  
2014 Midpoint
    
End
    
End
    
End
    
End
  
Changes from Original 2014 Guidance
Net Operating Income ("NOI")
  
   
 
    
   
   
 
        
Total NOI from consolidated communities
  
$
442,000
      
187,700
      
191,700
      
626,700
      
636,700
  
Includes NOI from the BRE properties, including the negative impact from Ave 64 redevelopment, the acquisition of Piedmont in May 2014, and Q1 '14 operating results for ESS
 
                                        
                
Accretion from external growth, net of dispositions
    
500
      
-
      
-
      
500
      
500
  
 
 
                                        
                
Management Fees
    
10,650
      
2,000
      
2,200
      
12,100
      
13,400
  
Reflects mgmt. fees from the three co-investments formed in the BRE merger
 
                                        
                
Interest Expense
                                        
              
Interest and amortization expense, before capitalized interest
    
(132,800
)
    
(53,700
)
    
(52,300
)
    
(189,200
)
    
(186,600
)
Updated for assumed debt from BRE at the effective interest rate on April 1 and $400M unsecured note offering in April
Projected interest capitalized
    
12,700
      
9,300
      
10,300
      
19,900
      
22,100
  
Reflects capitalized interest on developments acquired from BRE, including the impact from MB360
Net interest expense
    
(120,100
)
    
(44,400
)
    
(42,000
)
    
(169,300
)
    
(164,500
)
 
 
                                        
                
Recurring Income and Expenses
                                        
              
Interest and other income
    
9,800
      
-
      
-
      
9,400
      
10,200
  
 
FFO from co-investments
    
36,700
      
13,400
      
14,800
      
49,600
      
52,000
  
Reflects the three co-investments formed as part of the BRE merger
General and administrative expense
    
(25,500
)
    
(7,400
)
    
(8,400
)
    
(32,400
)
    
(34,400
)
Includes incremental G&A related to the merger
Cost of management and other fees
    
(6,800
)
    
(700
)
    
(700
)
    
(7,500
)
    
(7,500
)
 
Preferred dividends and non-controlling interest
    
(14,000
)
    
-
      
-
      
(14,000
)
    
(14,000
)
 
 
    
200
      
5,300
      
5,700
      
5,100
      
6,300
  
 
 
                                        
                
Non-Core Income and Expenses
                                        
              
Promote income from co-investment
    
4,000
      
-
      
-
      
4,000
      
7,000
  
 
Gains on sales of marketable securities, land, note prepayment
    
-
      
-
      
-
      
827
      
827
  
 
Earthquake related and other
    
-
      
-
      
-
      
(1,571
)
    
(1,571
)
 
Loss on early retirement of debt
    
-
      
-
      
-
      
(197
)
    
(197
)
 
Merger expenses
    
-
      
(72,000
)
    
(68,000
)
    
(73,000
)
    
(67,000
)
Excludes BRE merger cost of $35 million
Acquisition costs
    
(1,300
)
    
-
      
-
      
(1,100
)
    
(1,600
)
 
 
    
2,700
      
(72,000
)
    
(68,000
)
    
(71,041
)
    
(62,541
)
 
 
                                        
                
Funds from Operations
  
$
335,950
      
78,600
      
89,600
      
404,059
      
429,859
  
 
 
                                        
                
Funds from Operations per diluted Share
  
$
8.32
                      
6.93
      
7.37
  
 
 
                                        
                
% Change - Funds from Operations
    
9.6
%
                    
-8.7
%
    
-2.9
%
 
 
                                        
                
Funds from Operations excluding non-core items
  
$
333,250
                      
475,100
      
492,400
  
 
 
                                        
                
Core Funds from Operations per diluted Share
  
$
8.25
                      
8.15
      
8.45
  
 
 
                                        
                
% Change - Core Funds from Operations
    
8.5
%
                    
7.2
%
    
11.1
%
 
 
                                        
                
Weighted average shares outstanding
    
40,400
      
23,100
      
23,100
      
58,300
      
58,300
  
Includes the 23.1M shares issued in the BRE merger and equity issued through April 2014
See Company's 10-K for additional disclosures
E S S E X  P R O P E R T Y  T R U S T, I N C.
 
Summary of Apartment Community Acquisitions and Dispositions Activity
Quarter ended March 31, 2014 and Q2 2014 to date
(Dollars in thousands)
 
Acquisitions
 
  
   
Essex
    
 
 
  
   
   
 
 
 
  
   
Ownership
    
 
  
  
Purchase
    
Price per
    
Average
  
Property Name
Location
  
Units
    
Percentage
    
Ownership
  
Date
  
Price
    
Unit
    
Rent
  
 
 
  
   
   
 
 
  
   
   
 
 
 
  
   
   
 
 
  
   
   
 
The Avery
Los Angeles, CA
    
121
      
100
%
  
EPLP
  
Mar-14
    
35,000
      
289
      
2,386
  
 
Q1 2014 Total
    
121
            
 
   
  
$
35,000
    
$
289
          
 
 
                  
 
 
                        
Piedmont
Bellevue, WA
    
396
      
100
%
  
EPLP
  
May-14
    
76,750
      
194
      
1,386
  
 
Q2 2014 to date
    
396
            
 
   
  
$
76,750
    
$
194
          
 
 
                   
 
  
 
                        
Dispositions
 
          
Essex
    
 
 
                        
 
 
          
Ownership
    
 
  
  
Sales
    
Price per
          
 
  
  
Units
    
Percentage
    
Ownership
  
Date
  
Price
    
Unit
          
 
 
                  
 
 
                        
Vista Capri
 
    
106
      
100.0
%
  
EPLP
  
Jan-14
    
14,350
      
135
          
Davey Glen
 
    
69
      
28.2
%
  
Fund II
  
Mar-14
    
23,750
      
344
          
 
Q1 2014 Total
    
175
            
 
   
  
$
38,100
    
$
218
          
 
 
                   
 
  
 
                         
BRE Properties Contributed to Joint Ventures as of April 1, 2014
  
Essex
  
 
                        
 
Location
          
Units
    
Ownership
Percentage
  
Ownership
  
MSA
    
Purchase Price
          
 
 
                  
 
 
                        
Regency at Palm Court
Los Angeles, CA
            
116
      
50.0
%
Wesco III
  
Los Angeles
                  
The Summit
Chino Hills, CA
            
125
      
50.0
%
Wesco III
  
Los Angeles
                  
Windsor Court
Los Angeles, CA
            
95
      
50.0
%
Wesco III
  
Los Angeles
                  
 
  
  
Wesco III Total
      
336
          
 
                        
Bridgeport Coast
Santa Clarita, CA
            
188
      
50.0
%
Wesco IV
  
Los Angeles
                  
City Centre
Hayward, CA
            
192
      
50.0
%
Wesco IV
  
San Francisco
                  
Fairways at Westridge
Valencia, CA
            
234
      
50.0
%
Wesco IV
  
Los Angeles
                  
Verandas
Union City, CA
            
282
      
50.0
%
Wesco IV
  
San Francisco
                  
Vistas of West Hills
Valencia, CA
            
220
      
50.0
%
Wesco IV
  
Los Angeles
                  
 
  
  
Wesco IV Total
      
1,116
          
 
                        
Ballinger Commons
Seattle, WA
            
485
      
50.0
%
AEW
  
Seattle
                  
Bothell Ridge
Bothell, WA
            
214
      
50.0
%
AEW
  
Seattle
                  
Canyon Creek
Northridge, CA
            
200
      
50.0
%
AEW
  
Los Angeles
                  
City Walk
Seattle, WA
            
102
      
50.0
%
AEW
  
Seattle
                  
Enclave at Town Square
Chino Hills, CA
            
124
      
50.0
%
AEW
  
Los Angeles
                  
Esplanade
San Diego, CA
            
616
      
50.0
%
AEW
  
San Diego
                  
Parkside Court
Santa Ana, CA
            
210
      
50.0
%
AEW
  
Orange County
                  
The Havens
Fountain Valley, CA
            
440
      
50.0
%
AEW
  
Orange County
                  
The Heights
Chino Hills, CA
            
332
      
50.0
%
AEW
  
Los Angeles
                  
 
  
  
AEW Total
      
2,723
          
 
                        
 
  
  
Total Joint Ventures
      
4,175
          
 
          
$
888,000
          

See Company's 10-K for additional disclosures
E S S E X  P R O P E R T Y  T R U S T, I N C.

2014 MSA Level Forecasts: Supply, Jobs and Apartment Market Conditions                                                                                                                                                                                                

 
  
Residential Supply (1)
    
Job Forecast (2)
    
Market Forecast (3)
  
Market
  
New MF
Supply
    
New SF
Supply
    
Total Supply
    
% of MF
Supply to
MF Stock
    
% of Total
 Supply to
 Total Stock
    
Est. New
 Jobs Dec-
Dec
    
% Growth
    
Estimated Rent
Growth
  
 
  
   
   
   
   
   
   
   
 
Los Angeles
    
9,000
      
3,300
      
12,300
      
0.6
%
    
0.4
%
    
75,500
      
1.9
%
    
5.3
%
Ventura
    
650
      
1,200
      
1,850
      
1.0
%
    
0.7
%
    
4,800
      
1.7
%
    
4.3
%
Orange
    
3,250
      
3,500
      
6,750
      
0.8
%
    
0.6
%
    
28,700
      
2.0
%
    
4.6
%
San Diego
    
2,500
      
2,500
      
5,000
      
0.6
%
    
0.4
%
    
23,400
      
1.8
%
    
3.7
%
So. Cal.
    
15,400
      
10,500
      
25,900
      
0.7
%
    
0.5
%
    
132,400
      
1.9
%
    
4.7
%
 
                                                                
San Jose
    
4,300
      
1,800
      
6,100
      
1.7
%
    
0.9
%
    
26,500
      
2.8
%
    
7.9
%
San Francisco
    
4,500
      
525
      
5,025
      
1.2
%
    
0.7
%
    
26,200
      
2.5
%
    
6.4
%
Oakland
    
2,000
      
2,900
      
4,900
      
0.6
%
    
0.5
%
    
20,300
      
2.0
%
    
5.4
%
No. Cal.
    
10,800
      
5,225
      
16,025
      
1.3
%
    
0.7
%
    
73,000
      
2.5
%
    
6.8
%
 
                                                                
Seattle
    
8,500
      
6,500
      
15,000
      
1.9
%
    
1.3
%
    
39,000
      
2.6
%
    
5.4
%
 
                                                                
Weighted Average (4)
    
34,700
      
22,225
      
56,925
      
1.1
%
    
0.7
%
    
244,400
      
2.2
%
    
5.6
%

All data are based on Essex Property Trust, Inc. forecasts.

U.S. Economic Assumptions: 2014 G.D.P. Growth:  2.8% , 2014 Job Growth: 1.8%

(1) New Residential Supply:  MF (multifamily) reflects the Company's internal estimate of actual multifamily deliveries; SF (single family) is based on 12 month single family trailing permits reported by the US Census Bureau.

(2) Job Forecast: refers to the difference between total non-farm industry employment (not seasonally adjusted) projected through Dec 2014 over estimated Dec 2013, expressed as total new jobs and growth rates.

(3) Market Forecast: the estimated rent growth represents the forecasted change in effective market rents for Q4 2014 vs Q4 2013 (excludes submarkets not targeted by Essex).

(4) Weighted Average: markets weighted by economic rent in the Company's portfolio.               
See Company's 10-K for additional disclosures
 
 
S-15