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Organization and Basis of Presentation (Tables)
 6 Months Ended
Jun. 30, 2014
Organization and Basis of Presentation [Abstract]  
Components of Marketable Securities
As of June 30, 2014 and December 31, 2013 marketable securities consist of the following ($ in thousands):

 
 
June 30, 2014
 
 
 
Cost/
Amortized
Cost
  
Gross
Unrealized
Gain
  
Carrying Value
 
Available for sale:
 
  
  
 
Investment-grade unsecured bonds
 
$
11,627
  
$
217
  
$
11,844
 
Investment funds - US treasuries
  
3,842
   
6
   
3,848
 
Common stock
  
25,492
   
2,467
   
27,959
 
Held to maturity:
            
Mortgage backed securities
  
62,707
   
-
   
62,707
 
Total
 
$
103,668
  
$
2,690
  
$
106,358
 
 
 
 
December 31, 2013
 
 
 
Cost/
Amortized
Cost
  
Gross
Unrealized
Gain (Loss)
  
Carrying Value
 
Available for sale:
            
Investment-grade unsecured bonds
 
$
15,446
  
$
509
  
$
15,955
 
Investment funds - US treasuries
  
3,675
   
3
   
3,678
 
Common stock
  
13,104
   
(1,304
)
  
11,800
 
Held to maturity:
            
Mortgage backed securities
  
58,651
   
-
   
58,651
 
Total
 
$
90,876
  
$
(792
)
 
$
90,084
 
Changes in Accumulated Other Comprehensive Loss, Net by Component
Changes in Accumulated Other Comprehensive Loss, Net by Component

Essex Property Trust, Inc.

($ in thousands):

 
 
Change in fair
value and amortization
of derivatives
  
Unrealized
gains/(losses) on
available for sale
securities
  
Total
 
Balance at December 31, 2013
 
$
(59,724
)
 
$
(748
)
 
$
(60,472
)
Other comprehensive income (loss) before reclassification
  
123
   
3,414
   
3,537
 
Amounts reclassified from accumulated other comprehensive loss
  
3,982
   
(841
)
  
3,141
 
Net other comprehensive income (loss)
  
4,105
   
2,573
   
6,678
 
Balance at June 30, 2014
 
$
(55,619
)
 
$
1,825
  
$
(53,794
)

 
Essex Portfolio, L.P.

($ in thousands):

 
 
Change in fair
value and amortization
of derivatives
  
Unrealized
gains/(losses) on
available for sale
securities
  
Total
 
Balance at December 31, 2013
 
$
(58,148
)
 
$
(792
)
 
$
(58,940
)
Other comprehensive income (loss) before reclassification
  
130
   
3,576
   
3,706
 
Amounts reclassified from accumulated other comprehensive loss
  
4,163
   
(886
)
  
3,277
 
Net other comprehensive income (loss)
  
4,293
   
2,690
   
6,983
 
Balance at June 30, 2014
 
$
(53,855
)
 
$
1,898
  
$
(51,957
)
Preliminary Fair Values of Assets and Liabilities Acquired
The preliminary fair value of the assets acquired on March 31, 2014 in exchange for $1.4 billion of OP units was substantially all attributable to rental properties which included land, buildings and improvements, and real estate under development and approximately $19 million attributable to acquired in-place lease value.  With regards to the BRE merger that closed on April 1, 2014, a summary of the preliminary fair value of the assets and liabilities acquired on April 1, 2014 in exchange for the total consideration of approximately $4.3 billion were as follows (includes the 14 properties acquired on March 31, 2014 as the OP units issued were retired on April 1, 2014) (in millions):

Cash assumed
 
$
140
 
Rental properties and real estate under development
  
5,613
 
Real estate held for sale, net
  
108
 
Co-investments
  
223
 
Acquired in-place lease value
  
80
 
Other assets
  
16
 
Mortgage notes payable and unsecured debt
  
(1,747
)
Other liabilities
  
(94
)
Redeemable noncontrolling interest
  
(5
)
 
 
$
4,334
 
 
    
Cash consideration for BRE merger
 
$
556
 
Equity consideration for BRE merger
  
3,778
 
Total consideration for BRE merger
 
$
4,334
 
Pro Forma Information
The pro forma adjustments primarily relate to merger expenses, depreciation expense on acquired buildings and improvements, amortization of acquired intangibles, and estimated interest expense related to assumed debt.

Essex Property Trust, Inc.

 
 
Pro forma (unaudited)
three months ended June 30
 
 
 
(in thousands, except per share data)
 
 
 
2014
  
2013
 
Total revenue
 
$
259,450
  
$
233,252
 
Net income available to common shareholders (1) (2)
 
$
30,705
  
$
35,789
 
Earnings per share, diluted (1)
 
$
0.49
  
$
0.59
 
 
 
 
Pro forma (unaudited)
six months ended June 30
 
 
 
(in thousands, except per share data)
 
 
  
2014
   
2013
 
Total revenue
 
$
506,282
  
$
461,033
 
Net income available to common shareholders (1) (2)
 
$
158,676
  
$
19,017
 
Earnings per share, diluted (1)
 
$
2.56
  
$
0.31
 

 
Essex Portfolio, L.P.
 
 
 
Pro forma (unaudited)
three months ended June 30
 
 
 
(in thousands, except per unit data)
 
 
 
2014
  
2013
 
Total revenue
 
$
259,450
  
$
233,252
 
Net income available to common unitholders (1) (2)
 
$
31,695
  
$
36,891
 
Earnings per unit, diluted (1)
 
$
0.49
  
$
0.59
 
 
 
 
Pro forma (unaudited)
six months ended June 30
 
 
 
(in thousands, except per unit data)
 
 
  
2014
   
2013
 
Total revenue
 
$
506,282
  
$
461,033
 
Net income available to common unitholders (1) (2)
 
$
163,618
  
$
19,596
 
Earnings per unit, diluted (1)
 
$
2.56
  
$
0.31
 
 
 
(1)
2014 supplemental pro forma net income available to common stockholders were adjusted to exclude $26.5 million and $42.6 million of merger related costs incurred by Essex during the three and six months ended June 30, 2014. 2013 supplemental pro forma net income available to common stockholders were adjusted to include these charges plus $4.3 million of merger related costs incurred by Essex during the three months ended December 31, 2013.  2014 and 2013 supplemental proforma earnings per share, diluted, were adjusted by approximately 23.1 million shares due to the common stock issued in connection with the merger.

 
(2)
2014 supplemental pro forma net income available to common stockholders includes approximately $105 million from discontinued operations related to the sale of three BRE properties during the quarter ended March 31, 2014 that are non-recurring transactions.