8-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, DC 20549

FORM 8-K

Current Report Pursuant to Section 13 or 15 (d) of the Securities Exchange Act of 1934

Date of Report (Date of Earliest Event Reported): September 30, 2014

ESSEX PROPERTY TRUST, INC.

ESSEX PORTFOLIO, L.P.

(Exact Name of Registrant as Specified in its Charter)

001-13106 (Essex Property Trust, Inc.)

333-44467-01 (Essex Portfolio, L.P.)

 (Commission File Number)

Maryland (Essex Property Trust, Inc.) California (Essex Portfolio, L.P.)	77-0369576 (Essex Property Trust, Inc.) 77-0369575 (Essex Portfolio, L.P.)
(State or Other Jurisdiction of Incorporation)	(I.R.S. Employer Identification No.)

925 East Meadow Drive, Palo Alto, California 94303

 (Address of principal executive offices) (Zip Code)

(650) 494-3700

(Registrant’s telephone number, including area code)

Not Applicable

(Former name or former address, if changed since last report.)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

o Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

o Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

o Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

o Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Item 2.02. Results of Operations and Financial Condition

On October 30, 2014, Essex Property Trust, Inc. (the “Company”) issued a press release announcing the Company’s earnings for the quarter ended September 30, 2014. A copy of the press release is attached hereto as Exhibit 99.1 and incorporated by reference herein in its entirety.

The information in this report (including Exhibits 99.1 and 99.2) is being furnished pursuant to Item 2.02 and shall not be deemed to be "filed" for purposes of Section 18 of the Securities Exchange Act of 1934 (the "Exchange Act") or otherwise subject to the liabilities of that section, nor shall it be deemed to be incorporated by reference in any filing under the Securities Act of 1933 or the Exchange Act.

Item 9.01. Financial Statements and Exhibits.

(a) - (b) Not applicable.

(c) Exhibits.

The exhibits listed below are being furnished with this Form 8-K.

99.1 Press Release issued by Essex Property Trust, Inc. dated October 30, 2014

99.2 Supplemental Information

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

Date: October 30, 2014

ESSEX PROPERTY TRUST, INC.

/s/ Michael T. Dance

Name: Michael T. Dance

Title: Executive Vice President &

Chief Financial Officer

ESSEX PORTFOLIO, L.P.

By: Essex Property Trust, Inc.,

its General Partner

/s/ Michael T. Dance

Name: Michael T. Dance

Title: Executive Vice President &

Chief Financial Officer

EXHIBIT INDEX

Exhibit

Number Description

99.1 Press Release issued by Essex Property Trust, Inc. dated October 30, 2014

99.2 Supplemental Information

EX-99.1

Exhibit 99.1

Essex Announces Third Quarter 2014 Results

Core FFO Guidance Increases as Same-Property NOI Grows 9.4% in the Third Quarter

Palo Alto, California—October 30, 2014—Essex Property Trust, Inc. (NYSE:ESS) announced today its third quarter 2014 earnings results and related business activities.

Funds from Operations (“FFO”) and Net Income per diluted share for the quarter and nine months ended September 30, 2014 are detailed below. FFO and Net Income for the quarter and nine months ended September 30, 2014 includes $3.9 million and $46.4 million in merger related expenses, respectively. Core FFO excludes merger expenses, acquisition costs and non-routine items such as cyber-intrusion expenses.

	Three Months Ended							Nine Months Ended
	September 30,				%			September 30,				%
	2014		2013		Change			2014		2013		Change
Per Diluted Share
Total FFO	$	2.08	$	1.91		9.1	%	$	5.55	$	5.79		-4.2	%
Core FFO	$	2.16	$	1.91		13.2	%	$	6.28	$	5.65		11.1	%
Earnings per Share	$	0.85	$	1.84		-53.8	%	$	1.40	$	3.19		-56.1	%

Third Quarter Highlights:

· Grew Core FFO per diluted share by 13.2% compared to Q3 2013, which exceeded the high end of the Company’s guidance.

· Increased same-property gross revenues and net operating income (“NOI”) by 7.4% and 9.4%, respectively, compared to Q3 2013.

· Realized a sequential increase in same-property revenue growth of 2.6%.

· Achieved pro forma same-property revenue growth of 7.1% in the legacy BRE portfolio, narrowing the revenue growth differential to the Essex portfolio from 1.6% in the first quarter 2014 to 0.3% in the third quarter 2014.

· Increased financial occupancy in the legacy BRE same-property portfolio to 95.9% in Q3 ’14, consistent with the financial occupancy in the ESS same-property portfolio for the quarter. Since the merger closed, the financial occupancy in the legacy BRE portfolio has increased approximately 140 basis points.

· Acquired three communities for a total investment of $319.8 million.

· Increased the Essex portfolio full year same-property revenue growth guidance range to 6.7% to 7.1%, raising the midpoint by 30 basis points and increasing the same-property NOI growth range to 8.3% to 8.7%.

· Raised the full year Core FFO per diluted share guidance range to $8.43 to $8.52, raising the midpoint by $0.09 per share.

925 East Meadow Drive Palo Alto California 94303 telephone 650 494 3700 facsimile 650 494 8743

www.essexpropertytrust.com

“We are thrilled with the financial results for the third quarter, in which same-property revenue and net operating income exceeded our high expectations. Our reported 7.4% same-property revenue growth was the best quarterly result in the last seven years. As a result of continued robust fundamentals in our Coastal California and Washington markets, we have increased the midpoint of our 2014 same-property revenue growth expectations by 30 basis points to 6.9%,” commented Michael Schall, President and Chief Executive Officer of the Company. Mr. Schall continued, “We are also pleased to report substantial progress in integrating the BRE portfolio and improving its financial contribution. During the third quarter, we narrowed the revenue growth differential between the ESS and legacy BRE portfolios to only 30 basis points, significantly contributing to the quarterly results.”

Same-Property Operations

Essex same-property operating results exclude properties that are not comparable for the periods presented, including all properties acquired in the merger with BRE. The table below illustrates the percentage change in same-property gross revenues for the quarter ended September 30, 2014 compared to the quarter ended September 30, 2013, and the sequential percentage change for the quarter ended September 30, 2014 versus the quarter ended June 30, 2014 by submarket for the Company:

	Q3 2014 vs. Q3 2013			Q3 2014 vs. Q2 2014			% of Total
	Gross Revenues			Gross Revenues			Q3 2014 Revenues
Southern California
Los Angeles County		5.2	%		1.9	%		17.0	%
Ventura County		5.8	%		1.2	%		8.8	%
Orange County		5.8	%		2.9	%		11.2	%
San Diego County		7.1	%		2.1	%		5.6	%
Other Southern California		6.9	%		-1.3	%		1.7	%
Total Southern California		5.8	%		1.9	%		44.3	%
Northern California
Santa Clara County		9.4	%		3.3	%		18.8	%
Contra Costa County		8.4	%		4.3	%		6.5	%
Alameda County		10.7	%		2.5	%		5.9	%
Other Northern California		11.0	%		3.7	%		5.3	%
Total Northern California		9.7	%		3.4	%		36.5	%
Seattle Metro		7.0	%		2.4	%		19.2	%
Same-Property Portfolio		7.4	%		2.6	%		100.0	%

	Year Over Year Growth
	Q3 2014 compared to Q3 2013
	Gross Revenues			Operating Expenses			NOI
Southern California		5.8	%		3.5	%		7.0	%
Northern California		9.7	%		2.3	%		12.9	%
Seattle Metro		7.0	%		4.4	%		8.3	%
Same-Property Portfolio		7.4	%		3.2	%		9.4	%

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	Sequential Growth
	Q3 2014 compared to Q2 2014
	Gross Revenues			Operating Expenses			NOI
Southern California		1.9	%		6.1	%		-0.1	%
Northern California		3.4	%		2.2	%		3.9	%
Seattle Metro		2.4	%		1.1	%		3.1	%
Same-Property Portfolio		2.6	%		3.7	%		2.0	%

	Financial Occupancies
	Quarter Ended
	9/30/2014			6/30/2014			9/30/2013
Southern California		95.9	%		96.3	%		95.7	%
Northern California		96.3	%		96.0	%		95.6	%
Seattle Metro		95.5	%		96.0	%		95.7	%
Same-Property Portfolio		95.9	%		96.1	%		95.7	%

Legacy BRE Same-Property Revenue

The table below represents the third quarter 2014 results for the legacy BRE portfolio acquired in the merger with BRE, excluding the 17 properties contributed to joint ventures, compared on a pro forma same-property basis to the results for the third quarter 2013 while owned by BRE. Certain re-classifications were made to make the results comparable. These properties will be eligible for inclusion in the Essex same-property portfolio beginning in April 2015.

	Q3 2014 vs. Q3 2013			Q3 2014 vs. Q2 2014			% of Total
	Gross Revenues			Gross Revenues			Q3 2014 Revenues
Southern California
Los Angeles County		4.8	%		1.6	%		15.7	%
Orange County		3.9	%		1.5	%		18.6	%
San Diego County		7.2	%		2.0	%		17.1	%
Other Southern California		4.6	%		3.1	%		1.0	%
Total Southern California		5.2	%		1.7	%		52.4	%
Northern California
Santa Clara County		10.1	%		2.6	%		5.5	%
Contra Costa County		5.4	%		3.8	%		4.3	%
Alameda County		11.6	%		3.4	%		8.7	%
Other Northern California		9.9	%		3.6	%		12.6	%
Total Northern California		9.8	%		3.4	%		31.1	%
Seattle Metro		7.9	%		3.0	%		16.5	%
Same-Property Portfolio		7.1	%		2.5	%		100.0	%

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Investment Activity

During the third quarter, the Company acquired three communities with an aggregate 887 multifamily units for a total investment value of $319.8 million. Please see the second quarter press release dated August 6, 2014 and the press release on August 15, 2014 for additional details about the acquisitions.

Dispositions

In September, the Company sold two communities for total proceeds of $49.0 million. Total gain on the sale was $31.4 million. The gain has been excluded from the calculation of FFO.

Development Activity

During the quarter, the Company began leasing and pre-leasing activities at five communities. The table below represents the percentage of units leased for each community in lease-up as of October 28, 2014.

Project Name	Location	Total Units		ESS Ownership			% Leased as of 10/28/14
Wilshire La Brea	Los Angeles, CA		478		100	%		94	%
Mosso I	San Francisco, CA		181		55	%		92	%
Radius	Redwood City, CA		264		100	%		70	%
The Dylan	West Hollywood, CA		184		50	%		59	%
Mosso II	San Francisco, CA		282		55	%		24	%
MB 360 Phase I	San Francisco, CA		181		100	%		12	%
Total/Average % Leased			1,570					64	%

In August, the Company contributed the land located in Pleasanton, CA, that was acquired in the merger with BRE, to a joint venture with the Canada Pension Plan Investment Board. The Company has a 55% ownership interest in the joint venture. The Company began construction on the project which will contain 506 apartment homes in two Phases. The project is expected to cost approximately $175 million and open in the summer of 2016.

During the quarter, the Company entered into a joint venture to develop Century Towers, a multifamily community containing 376 apartment homes located in San Jose, CA. Essex has a 50% ownership interest in the development which has a projected total cost of $172 million. The joint venture has obtained a $90 million construction loan that floats at LIBOR plus 175 basis points for a three year term with two one year extension options. Construction began in the third quarter of 2014 and the property is expected to open in the first quarter of 2017. The Company has committed to make a $27 million preferred equity investment in the project, which accrues an annualized preferred return of 8.1%.

Other Investments

In August, the Company made a $12.6 million preferred equity investment in a multifamily development project located in San Jose, CA. The investment has a preferred return of 12% for a three year term.

Cyber-Incident Update

On September 29, 2014 the Company disclosed that certain of its computer network systems containing personal and employee data were compromised by a cyber-intrusion. The Company has confirmed that evidence exists of exfiltration of data on Company systems. The precise nature of the data has not yet been identified and the Company does not presently have any evidence that data belonging to the Company has been misused. The investigation is ongoing. Please see the press release dated September 29, 2014 for additional details. Mr. Schall commented, “We have completed a substantial part of our investigation into the cyber-attack announced in late September and have implemented very meaningful changes to systems and processes to improve network security consistent with the on-going integration of the Essex and legacy BRE platforms.”

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Liquidity and Balance Sheet

Common Stock

During the third quarter, the Company issued 801,909 shares of common stock at an average price of $190.06 for net proceeds of $151.4 million. Year to date, the Company has issued 2,555,264 shares of common stock at an average price of $177.83 for net proceeds of $450.8 million.

Guidance

The Company is increasing its full-year 2014 Core FFO guidance to $8.43 to $8.52, raising the midpoint by $0.09 to $8.48 per diluted share. The reason for the increase primarily relates to revised same-property NOI growth. See page S-13 of the Supplemental Financial Information, which accompanies this press release, for the assumptions used to calculate the low and high end of the 2014 Core FFO guidance range. The following table provides a reconciliation of the midpoint of Q3 Core FFO guidance compared to the second quarter 2014 earnings release distributed in August 2014.

	Per Share
Projected Midpoint Core FFO per share for Q3 2014	$	2.08
NOI from ESS consolidated communities		0.04
NOI from legacy BRE consolidated communities		0.02
Interest income and other		0.02
Core FFO per share Q3 2014, reported	$	2.16

Conference Call with Management

The Company will host an earnings conference call with management to discuss its quarterly results on Friday October 31, 2014 at 11 a.m. PT (2 p.m. ET), which will be broadcast live via the Internet at www.essex.com, and accessible via phone by dialing (877) 407-0784, no passcode is necessary.

A rebroadcast of the live call will be available online for 90 days and digitally for 7 days. To access the replay online, go to www.essex.com and select the third quarter earnings link. To access the replay digitally, dial (877) 870-5176 using the replay pin number 13591155. If you are unable to access the information via the Company’s website, please contact the Investor Relations Department at investors@essex.com or by calling (650) 494-3700.

Corporate Profile

Essex Property Trust, Inc., an S&P 500 company, is a fully integrated real estate investment trust (REIT) that acquires, develops, redevelops, and manages multifamily residential properties in selected West Coast markets. Essex currently has ownership interests in 239 apartment communities with an additional 14 properties in various stages of active development. Additional information about Essex can be found on the Company’s web site at www.essex.com.

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This press release and accompanying supplemental financial information will be filed electronically on Form 8-K with the Securities and Exchange Commission and can be accessed from the Company’s Web site at www.essex.com. If you are unable to obtain the information via the Web, please contact the Investor Relations Department at (650) 494-3700.

Funds from Operations (“FFO”) Reconciliation

FFO, as defined by the National Association of Real Estate Investment Trusts (“NAREIT”), is generally considered by industry analysts as an appropriate measure of performance of an equity REIT. Generally, FFO adjusts the net income of equity REITs for non-cash charges such as depreciation and amortization of rental properties, impairment charges, gains/losses on sales of real estate and extraordinary items. Management considers FFO and FFO which excludes merger and acquisition costs and items that are not routine or not related to the Company’s core business activities, which is referred to as (“Core FFO”), to be useful financial performance measurements of an equity REIT because, together with net income and cash flows, FFO and Core FFO provide investors with an additional basis to evaluate the operating performance and ability of a REIT to incur and service debt and to fund acquisitions and other capital expenditures and the ability to pay dividends.

FFO does not represent net income or cash flows from operations as defined by U.S. generally accepted accounting principles (“GAAP”) and is not intended to indicate whether cash flows will be sufficient to fund cash needs. It should not be considered as an alternative to net income as an indicator of the REIT's operating performance or to cash flows as a measure of liquidity. FFO does not measure whether cash flow is sufficient to fund all cash needs including principal amortization, capital improvements and distributions to shareholders. FFO also does not represent cash flows generated from operating, investing or financing activities as defined under GAAP. Management has consistently applied the NAREIT definition of FFO to all periods presented. However, there is judgment involved and other REITs’ calculation of FFO may vary from the NAREIT definition for this measure, and thus their disclosures of FFO may not be comparable to the Company’s calculation.

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The following table sets forth the Company’s calculation of diluted FFO and Core FFO for the quarters ended September 30, 2014 and 2013:

	Three Month Ended September 30,						Nine Months Ended September 30,
Funds from Operations (In thousands)	2014			2013			2014			2013
Net income available to common stockholders	$	53,668		$	68,788		$	76,364		$	118,937
Adjustments:
Depreciation		102,184			48,487			254,211			143,662
Gains not included in FFO, net of internal disposition costs		(31,372	)		(49,044	)		(41,664	)		(51,410	)
Depreciation add back from unconsolidated co-investments		9,986			3,723			23,060			11,342
Noncontrolling interest related to Operating Partnership units		1,816			3,989			3,442			7,037
Depreciation attributable to third party ownership		(335	)		(327	)		(996	)		(981	)
Funds from Operations	$	135,947		$	75,616		$	314,417		$	228,587
Merger and integration expenses		3,857			--			46,413			--
Cyber-intrusion expenses		1,249			--			1,249			--
Acquisition and disposition costs		51			237			768			792
Gain on sales of marketable securities and note prepayment		--			--			(886	)		(2,611	)
Co-investment promote income		--			--			(4,904	)		--
Utility reimbursement income accrual		--			--			(1,807	)		--
Acquisition fee income		--			--			(500	)		--
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			--
Loss (gain) on early retirement of debt		--			178			--			(846	)
Income from early redemption of preferred equity investments		--			(412	)		--			(1,358	)
Core Funds from Operations	$	141,104		$	75,619		$	356,118		$	223,061

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SAFE HARBOR STATEMENT UNDER THE PRIVATE LITIGATION REFORM ACT OF 1995:

This press release includes “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Such forward-looking statements include statements and estimates on page 1 and under the caption “Guidance” on page 5 with respect to Core FFO and same-property revenue and NOI growth for the full year 2014, statements about expected promote income, statements about the integration with BRE, estimates about 2014 same-property revenue growth and regarding costs and leasing dates of development properties, and statements and estimates set forth under the captions “Development Pipeline—September 30, 2014” and “Redevelopment Pipeline and Capital Expenditures—September 30, 2014” on pages S-9 and S-10 of the Company’s Supplemental Financial Information Package, which accompanies this press release, regarding estimated costs of property development and redevelopment and regarding the anticipated timing of redevelopments and of the construction start, initial occupancy and stabilization of property development and the various financial projections and assumptions set forth in the columns “2014 Revised Guidance Range” on page S-13 of the Company’s Supplemental Financial Information Package and the forecasts, set forth on page S-15 of the Company’s Supplemental Financial Information Package, of residential supply, jobs, and rent growth in various areas. The Company's actual results may differ materially from those projected in such forward-looking statements. Factors that might cause such a difference include, but are not limited to, changes in market demand for rental units and the impact of competition and competitive pricing, unforeseen consequences from cyber-intrusion, unanticipated difficulties in integrating the businesses of Essex and BRE and realizing anticipated synergies, changes in economic conditions, unexpected delays in the development and stabilization of development projects, unexpected difficulties in leasing of development projects, total costs of development investments exceeding the Company’s projections and other risks detailed in the Company's filings with the Securities and Exchange Commission (SEC). All forward-looking statements are made as of today, and the Company assumes no obligation to update this information. For more details relating to risk and uncertainties that could cause actual results to differ materially from those anticipated in our forward-looking statements, and risks to our business in general, please refer to our SEC filings, including the Company’s Report on Form 10-K for the year ended December 31, 2013.

Contact Information

Barb Pak

Director of Investor Relations

(650) 494-3700

bpak@essex.com

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EX-99.2

Exhibit 99.2

Q3 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 – September 30, 2014	S-5
Capitalization Data, Public Bond Covenants, Credit Ratings, and Selected Credit Ratios – September 30, 2014	S-6
Property Operating Results – Quarters ended September 30, 2014 and 2013	S-7
Property Operating Results – Nine Months ended September 30, 2014 and 2013	S-7.1
Revenue by County – Quarters endedSeptember 30, 2014, September 30, 2013, and June 30, 2014	S-8
Revenue by County – Nine Months endedSeptember 30, 2014 and 2013	S-8.1
Development Pipeline – September 30, 2014	S-9
Redevelopment Pipeline and Capital Expenditures – September 30, 2014	S-10
Co-Investments – September 30, 2014	S-11
Summary of Consolidated Co-Investments and Noncontrolling Interest – September 30, 2014	S-12
Assumptions for 2014 FFO Guidance Range	S-13
Summary of Apartment Community Acquisitions and Dispositions Activity	S-14
Preliminary 2015 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						Nine Months Ended
(Dollars in thousands, except share and per share amounts)	September 30,						September 30,
	2014			2013			2014			2013
Revenues:
Rental and other property	$	268,118		$	152,177		$	683,749		$	446,017
Management and other fees		2,361			1,771			6,856			5,812
		270,479			153,948			690,605			451,829
Expenses:
Property operating		87,668			50,322			222,862			144,943
Depreciation		102,184			48,227			254,211			142,687
General and administrative		11,479			6,263			28,621			19,852
Merger and integration expenses		3,857			-			46,413			-
Acquisition and disposition costs		51			237			1,555			792
		205,239			105,049			553,662			308,274
Earnings from operations		65,240			48,899			136,943			143,555
Interest expense		(45,830	)		(29,192	)		(117,021	)		(86,661	)
Interest and other income		2,992			2,387			8,685			9,326
Equity income from co-investments		4,910			40,802			21,065			52,295
(Loss) gain on early retirement of debt		-			(178	)		-			846
Gain on sale of real estate and land		31,372			-			39,640			1,503
Income before discontinued operations		58,684			62,718			89,312			120,864
Income from discontinued operations		-			13,157			-			14,289
Net income		58,684			75,875			89,312			135,153
Net income attributable to noncontrolling interest		(3,720	)		(5,719	)		(8,971	)		(12,112	)
Net income attributable to controlling interest		54,964			70,156			80,341			123,041
Dividends to preferred stockholders		(1,296	)		(1,368	)		(3,977	)		(4,104	)
Net income available to common stockholders	$	53,668		$	68,788		$	76,364		$	118,937
Net income per share - basic	$	0.85		$	1.84		$	1.41		$	3.20
Shares used in income per share - basic		62,892,601			37,320,562			54,250,104			37,206,895
Net income per share - diluted	$	0.85		$	1.84		$	1.40		$	3.19
Shares used in income per share - diluted		63,069,772			37,436,983			54,443,227			37,295,691

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				Nine Months Ended
Selected Line Item Detail	September 30,				September 30,
(Dollars in thousands)	2014		2013		2014		2013
Rental and other property
Rental	$	250,303	$	141,620	$	636,218	$	415,878
Other property		17,815		10,557		47,531		30,139
Rental and other property	$	268,118	$	152,177	$	683,749	$	446,017
Property operating expenses
Real estate taxes	$	31,768	$	14,535	$	77,452	$	42,773
Administrative and insurance		18,920		12,327		49,985		34,353
Maintenance and repairs		15,812		10,438		41,774		30,186
Utilities		16,052		9,710		40,059		27,775
Property management		5,116		3,312		13,592		9,856
Property operating expenses	$	87,668	$	50,322	$	222,862	$	144,943
Interest and other income
Marketable securities and other interest income	$	2,951	$	2,346	$	7,676	$	5,833
Notes receivable		41		41		123		882
Gain from sale of marketable securities and note prepayment		-		-		886		2,611
Interest and other income	$	2,992	$	2,387	$	8,685	$	9,326
Equity income from co-investments
Equity income from co-investments	$	535	$	277	$	1,578	$	822
Income from preferred equity investments		4,375		3,727		11,372		11,363
Gain on sale of co-investment		-		36,386		3,211		38,752
Co-investment promote income		-		-		4,904		-
Income from early redemption of preferred equity investments		-		412		-		1,358
Equity income from co-investments	$	4,910	$	40,802	$	21,065	$	52,295
Noncontrolling interest
Limited partners of Essex Portfolio, L.P.	$	1,816	$	3,989	$	3,442	$	7,037
DownREIT limited partners' distributions		1,208		1,148		3,563		3,492
Third-party ownership interest		696		582		1,966		1,583
Noncontrolling interest	$	3,720	$	5,719	$	8,971	$	12,112

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
(Dollars in thousands, except share and per share amounts)	Three Months Ended September 30,									Nine Months Ended September 30,
	2014			2013			% Change			2014			2013			% Change
Funds from operations
Net income available to common stockholders	$	53,668		$	68,788					$	76,364		$	118,937
Adjustments:
Depreciation		102,184			48,487						254,211			143,662
Gains not included in FFO, net of internal disposition costs		(31,372	)		(49,044	)					(41,664	)		(51,410	)
Depreciation add back from unconsolidated co-investments		9,986			3,723						23,060			11,342
Noncontrolling interest related to Operating Partnership units		1,816			3,989						3,442			7,037
Depreciation attributable to third party ownership		(335	)		(327	)					(996	)		(981	)
Funds from operations	$	135,947		$	75,616					$	314,417		$	228,587
FFO per share-diluted	$	2.08		$	1.91			9.1	%	$	5.55		$	5.79			-4.2	%
Components of the change in FFO
Non-core items:
Merger and integration expenses	$	3,857			-					$	46,413			-
Cyber intrusion expenses		1,249			-						1,249			-
Acquisition and disposition costs		51			237						768			792
Gain on sale of marketable securities and note prepayment		-			-						(886	)		(2,611	)
Gain on sale of land		-			-						(400	)		(1,503	)
Utility reimbursement income accrual		-			-						(1,807	)		-
Earthquake related and other		-			-						1,571			-
Loss on early retirement of debt add back from unconsolidated co-investments		-			-						197			-
Loss (gain) on early retirement of debt		-			178						-			(846	)
Acquisition fee income		-			-						(500	)		-
Co-investment promote income		-			-						(4,904	)		-
Income from early redemption of preferred equity investments		-			(412	)					-			(1,358	)
Core funds from operations		141,104			75,619						356,118			223,061
Core FFO per share-diluted	$	2.16		$	1.91			13.2	%	$	6.28		$	5.65			11.1	%
Changes in core items:
Same-property NOI	$	8,963								$	25,137
Non-same property NOI		69,632									134,440
Management and other fees, net		590									544
Equity income from co-investments		7,169									12,680
Interest and other income		605									1,084
Interest expense		(16,638	)								(30,360	)
General and administrative		(3,967	)								(7,520	)
Discontinued operations		(758	)								(2,606	)
Other items, net		(111	)								(342	)
	$	65,485								$	133,057
Weighted average number of shares outstanding diluted (1)		65,234,328			39,583,912						56,677,712			39,456,163

(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-Q for additional disclosures

S-3

E S S E X  P R O P E R T Y  T R U S T,  I N C.

Consolidated Balance Sheets

(Dollars in thousands)

	September 30, 2014			December 31, 2013
Real Estate:
Land and land improvements	$	2,453,093		$	1,083,552
Buildings and improvements		8,820,657			4,360,205
		11,273,750			5,443,757
Less: accumulated depreciation		(1,469,991	)		(1,254,886	)
		9,803,759			4,188,871
Real estate under development		363,193			50,430
Co-investments		1,043,277			677,133
Real estate held for sale, net		107,772			-
		11,318,001			4,916,434
Cash and cash equivalents		88,000			53,766
Marketable securities		108,147			90,084
Notes and other receivables		22,973			68,255
Acquired in place lease value and other assets (1)		129,441			58,300
Total assets	$	11,666,562		$	5,186,839
Mortgage notes payable	$	2,258,010		$	1,404,080
Unsecured debt		2,745,487			1,410,023
Lines of credit		222,628			219,421
Other liabilities		325,552			150,728
Total liabilities		5,551,677			3,184,252
Redeemable noncontrolling interest		21,442			-
Cumulative convertible preferred stock, carrying value		-			4,349
Equity:
Common stock		6			4
Cumulative redeemable preferred stock, liquidation value		73,750			73,750
Additional paid-in-capital		6,569,442			2,345,763
Distributions in excess of accumulated earnings		(608,498	)		(474,426	)
Accumulated other comprehensive loss		(51,408	)		(60,472	)
Total stockholders' equity		5,983,292			1,884,619
Noncontrolling interest		110,151			113,619
Total equity		6,093,443			1,998,238
Total liabilities and equity	$	11,666,562		$	5,186,839

(1) Includes $63.4 million of acquired in place leases, net at September 30, 2014.

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 - September 30, 2014

(Dollars in thousands)

								Scheduled principal payments and unamortized premiums (excludes lines of credit) are as follows:
			Weighted Average																Weighted			Percentage
	Balance		Interest			Maturity								Unamortized					Average Interest			of Total
	Outstanding		Rate			In Years				Secured		Unsecured		premiums			Total		Rate			Debt
Mortgage Notes Payable
Fixed rate - secured	$	1,980,338		4.9	%		4.7		2014	$	7,388	$	-	$	7,670		$	15,058		3.8	%		0.3	%
Variable rate - secured (1)		189,219		1.9	%		18.4		2015		94,580		-		30,466			125,046		4.6	%		2.5	%
Unamortized premiums		88,453		-			-		2016		41,481		350,000		30,172			421,653		3.4	%		8.4	%
Total mortgage notes payable		2,258,010		4.6	%		5.8		2017		198,683		490,000		20,464			709,147		3.1	%		14.2	%
									2018		320,080		-		16,804			336,884		5.4	%		6.7	%
Unsecured Debt									2019		565,801		75,000		11,729			652,530		4.2	%		13.0	%
Bonds private - fixed rate		465,000		4.5	%		4.5		2020		692,800		-		5,854			698,654		5.0	%		14.0	%
Bonds public - fixed rate		1,900,000		3.4	%		7.3		2021		50,444		500,000		(1,523	)		548,921		4.3	%		11.0	%
Term loan (2)		350,000		2.4	%		2.4		2022		412		300,000		(2,167	)		298,245		3.7	%		6.0	%
Unamortized premiums		30,487		-			-		2023		435		600,000		(440	)		599,995		3.6	%		12.0	%
		2,745,487		3.5	%		6.2		2024		18,234		400,000		(89	)		418,145		4.0	%		8.3	%
Unsecured Lines of Credit								Thereafter			179,219		-		-			179,219		1.9	%		3.6	%
Line of credit (3)		205,000		1.7	%
Line of credit (4)		17,628		1.7	%			Total		$	2,169,557	$	2,715,000	$	118,940		$	5,003,497		4.0	%		100.0	%
Total lines of credit		222,628		1.7	%
Total debt	$	5,226,125		3.9	%

Capitalized interest for the three and nine months ended September 30 2014 was approximately $6.1 million and $17.8 million, respectively.

(1) Variable rate debt of $179.2 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-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 Data, Public Bond Covenants, Credit Ratings and Selected Credit Ratios - September 30, 2014

(Dollars and shares in thousands, except per share amounts)

Capitalization Data						Public Bond Covenants	Actual			Requirement
Total debt			$	5,226,125
						Debt to Total Assets:		40	%		< 65	%
Common stock and potentially dilutive securities
Common stock outstanding				63,230
Limited partnership units (1)				2,156
Options-treasury method				180		Secured Debt to Total Assets:		17	%		< 40	%
Total shares of common stock and potentially dilutive securities				65,566
Common stock price per share as of September 30, 2014			$	178.75
						Interest Coverage:		331	%		> 150	%
Market value of common stock and potentially dilutive securities			$	11,719,923
Preferred stock			$	73,750		Unsecured Debt Ratio (1) :		278	%		> 150	%
Total equity capitalization			$	11,793,673
						Selected Credit Ratios	Actual
Total market capitalization			$	17,019,798
Ratio of debt to total market capitalization				30.7	%	Indebtedness Divided by Adjusted EBITDA (2) (3):		7.0
						Unencumbered NOI to Total NOI:		64	%
(1) Assumes conversion of all outstanding operating partnership interests in the Operating Partnership into shares of the Company's common stock.						(1) Unsecured Debt Ratio is unsecured assets (excluding investments in co-investments) divided by unsecured indebtedness.
						(2) Indebtedness is total debt less unamortized premiums.
						(3) Adjusted EBITDA annualizes the proforma NOI for current quarter acquisitions and excludes non-routine items in earnings.
Credit Ratings
Rating Agency	Rating	Outlook
Fitch	BBB+	Stable
Moody's	Baa2	Stable
Standard & Poors	BBB	Stable

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 - Quarters ended September 30, 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	$	67,230		$	63,560			5.8	%	$	55,377		$	50,498			9.7	%	$	29,106		$	27,200			7.0	%	$	-		$	-	$	151,713		$	141,258			7.4	%
Non-same property revenue (2)		5,018			2,245						7,051			3,691						3,611			12						5,493			4,971		21,173			10,919
Legacy BRE portfolio property revenue (3)		45,994			-						32,215			-						14,349			-						2,674			-		95,232			-
Total Revenues	$	118,242		$	65,805					$	94,643		$	54,189					$	47,066		$	27,212					$	8,167		$	4,971	$	268,118		$	152,177
Property operating expenses:
Same-property operating expenses
Real estate taxes	$	5,891		$	5,707					$	5,201		$	4,952					$	2,768		$	2,461					$	-		$	-	$	13,860		$	13,120			5.6	%
Administrative and insurance		6,059			6,225						3,124			3,178						2,020			2,022						-			-		11,203			11,425			-1.9	%
Maintenance and repairs		4,912			4,654						3,076			3,105						1,768			1,803						-			-		9,756			9,562			2.0	%
Utilities		4,030			3,582						3,197			3,071						2,228			2,142						-			-		9,455			8,795			7.5	%
Management fees		1,407			1,384						1,014			960						750			707						-			-		3,171			3,051			3.9	%
Total same-property operating expenses		22,299			21,552			3.5	%		15,612			15,266			2.3	%		9,534			9,135			4.4	%		-			-		47,445			45,953			3.2	%
Non-same property operating expenses (2)		2,076			1,016						2,344			1,457						1,201			30						1,374			1,866		6,995			4,369
Legacy BRE portfolio property operating expenses (3)		17,142			-						10,400			-						4,616			-						1,070			-		33,228			-
Total property operating expenses	$	41,517		$	22,568					$	28,356		$	16,723					$	15,351		$	9,165					$	2,444		$	1,866	$	87,668		$	50,322
Net operating income (NOI):
Same-property NOI	$	44,931		$	42,008			7.0	%	$	39,765		$	35,232			12.9	%	$	19,572		$	18,065			8.3	%	$	-		$	-	$	104,268		$	95,305			9.4	%
Non-same property NOI (2)
Legacy BRE portfolio (3)		28,852			-						21,815			-						9,733			-						1,604			-		62,004			-
Redevelopment communities		1,353			1,229						-			-						-			-						-			-		1,353			1,229
Development communities - 2014		372			-						-			-						-			-						-			-		372			-
Acquired communities - 2013 (4)		1,217			-						2,708			2,234						573			(18	)					-			-		4,498			2,216
Acquired communities - 2014 (5)		-			-						1,999			-						1,837			-											3,836			-
Other real estate assets (1)		-			-						-			-						-			-						4,119			3,105		4,119			3,105
Total non-same property NOI		31,794			1,229						26,522			2,234						12,143			(18	)					5,723			3,105		76,182			6,550
Total NOI	$	76,725		$	43,237					$	66,287		$	37,466					$	31,715		$	18,047					$	5,723		$	3,105	$	180,450		$	101,855
Same-property operating margin		67	%		66	%					72	%		70	%					67	%		66	%										69	%		67	%
Annualized same-property turnover percentage		68	%		65	%					57	%		61	%					59	%		60	%										63	%		62	%
Average same-property concessions per turn (6)	$	79		$	104					$	150		$	114					$	77		$	71										$	98		$	100
Reconciliation of apartment units at end of period
Same-property apartment units		12,875									8,741									6,537									-					28,153
Consolidated apartment units		13,831			13,656						9,998			9,427						7,395			6,645											31,224			29,728
Legacy BRE portfolio (3)		8,337			-						4,603			-						2,821			-						902			-		16,663			-
Joint venture (7)		4,957			1,870						2,066			1,661						1,958			1,157						-			-		8,981			4,688
Under development		184			492						2,917			2,009						-			-						-			-		3,101			2,501
Total apartment units at end of period		27,309			16,018						19,584			13,097						12,174			7,802						902			-		59,969			36,917
Percentage of total		46	%		44	%					33	%		35	%					20	%		21	%					1	%		-		100	%		100	%
Average same-property financial occupancy		95.9	%		95.7	%					96.3	%		95.6	%					95.5	%		95.7	%										95.9	%		95.7	%

(1) Other real estate assets consists mainly of retail space, commercial properties, boat slips, two Phoenix properties acquired as part of the merger with BRE and properties sold during 2014.

(2) Includes properties which subsequent to January 1, 2013 were either acquired or in a stage of development or redevelopment without stabilized operations.

(3) Properties acquired as part of the BRE Properties merger on April 1, 2014, excluding 17 properties contributed to joint ventures.

(4) Acquired communities during 2013 includes Fox Plaza, Bennett Lofts, Slater 116, Vox, and Domain.

(5) Acquired communities during 2014 includes Apex, Collins on Pine, Ellington at Bellevue, Paragon, and Piedmont.

(6) 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.

(7) Includes BRE properties contributed to joint ventures.

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.

Property Operating Results - Nine months ended September 30, 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	$	198,488			188,423			5.3	%	$	161,368			147,422			9.5	%	$	85,419			79,431			7.5	%	$	-		-	$	445,275		$	415,276			7.2	%
Non-same property revenue (2)(7)		13,802			6,849						14,965			9,561						6,482			12						17,356		14,319		52,605			30,741
Legacy BRE portfolio property revenue (3)		90,090			-						62,231			-						28,188			-						5,360		-		185,869			-
Total Revenues	$	302,380		$	195,272					$	238,564		$	156,983					$	120,089		$	79,443					$	22,716	$	14,319	$	683,749		$	446,017
Property operating expenses:
Same-property operating expenses
Real estate taxes	$	17,255			16,667					$	15,044			14,479					$	8,568			7,598					$	-		-	$	40,867		$	38,744			5.5	%
Administrative and insurance		17,578			17,474						9,166			9,235						5,841			5,837						-		-		32,585			32,546			0.1	%
Maintenance and repairs		13,722			13,145						9,469			9,219						5,417			5,332						-		-		28,608			27,696			3.3	%
Utilities		11,329			10,377						9,130			8,822						6,239			6,074						-		-		26,698			25,273			5.6	%
Management fees		4,220			4,150						3,030			2,868						2,250			2,119						-		-		9,500			9,137			4.0	%
Total same-property operating expenses		64,104			61,813			3.7	%		45,839			44,623			2.7	%		28,315			26,960			5.0	%		-		-		138,258			133,396			3.6	%
Non-same property operating expenses (2)(8)		5,984			3,061						5,303			3,879						2,102			30						5,721		4,577		19,110			11,547
Legacy BRE portfolio property operating expenses (3)		33,419			-						20,439			-						9,547			-						2,089		-		65,494			-
Total property operating expenses	$	103,507		$	64,874					$	71,581		$	48,502					$	39,964		$	26,990					$	7,810	$	4,577	$	222,862		$	144,943
Net operating income (NOI):
Same-property NOI	$	134,384		$	126,610			6.1	%	$	115,529		$	102,799			12.4	%	$	57,104		$	52,471			8.8	%	$	-	$	-	$	307,017		$	281,880			8.9	%
Non-same property NOI (2)
Legacy BRE portfolio (3)		56,671			-						41,792			-						18,641			-						3,271		-		120,375			-
Redevelopment communities		4,264			3,788						-			-						-			-						-		-		4,264			3,788
Development communities - 2014		454			-						-			-						-			-						-		-		454			-
Acquired communities - 2013 (4)		3,100			-						7,663			5,682						1,673			(18	)					-		-		12,436			5,664
Acquired communities - 2014 (5)		-			-						1,999			-						2,707			-										4,706			-
Other real estate assets (1)		-			-						-			-						-			-						11,635		9,742		11,635			9,742
Total non-same property NOI		64,489			3,788						51,454			5,682						23,021			(18	)					14,906		9,742		153,870			19,194
Total NOI	$	198,873		$	130,398					$	166,983		$	108,481					$	80,125		$	52,453					$	14,906	$	9,742	$	460,887		$	301,074
Same-property operating margin		68	%		67	%					72	%		70	%					67	%		66	%									69	%		68	%
Annualized same-property turnover percentage		56	%		55	%					52	%		54	%					49	%		51	%									53	%		54	%
Average same-property concessions per turn (6)	$	109			112					$	150			133					$	97			87									$	119			113
Average same-property financial occupancy		96.2	%		96.0	%					96.3	%		96.1	%					96.0	%		96.1	%									96.2	%		96.1	%

(1) Other real estate assets consists mainly of retail space, commercial properties, boat slips, two Phoenix properties acquired as part of the merger with BRE and properties sold during 2014.

(2) Includes properties which subsequent to January 1, 2013 were either acquired or in a stage of development or redevelopment without stabilized operations.

(3) Properties acquired as part of the BRE Properties merger on April 1, 2014, excluding 17 properties contributed to joint ventures.

(4) Acquired communities during 2013 includes Fox Plaza, Slater 116, Vox, and Domain.

(5) Acquired communities during 2014 includes Apex, Collins on Pine, Ellington at Bellevue, Paragon, and Piedmont.

(6) 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.

(7) Other real estate asset revenues for the nine months ended September 30, 2014, includes $1.8 million related to a change in accounting policy related to accrual of utility reimbursement revenue. Other real estate asset expenses for the nine months ended September 30, 2014, includes $1.6 million related to earthquake and flood damage at two communities.

See Company's 10-Q for additional disclosures

S-7.1

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 September 30, 2014, September 30, 2013 and June 30, 2014

(Dollars in thousands, except average property rental rates)

										Three months ended					Three months ended								Three months ended
			Average Property Rental Rates							September 30, 2014					September 30 2013								June 30, 2014
Region	Units		QTD 2014		QTD 2013		% Change			Property Revenue		Financial Occupancy			Property Revenue		Financial Occupancy			Property Revenue % Change			Property Revenue		Sequential % Change
Southern California
Los Angeles County		4,400	$	$1,938	$	1,843		5.2	%	$	25,794		95.6	%	$	24,521		96.1	%		5.2	%	$	25,323		1.9	%
Ventura County		2,898		1,494		1,409		6.0	%		13,346		96.3	%		12,616		96.2	%		5.8	%		13,185		1.2	%
Orange County		2,887		1,955		1,851		5.6	%		17,055		96.1	%		16,115		95.8	%		5.8	%		16,582		2.9	%
San Diego County		2,067		1,318		1,251		5.4	%		8,509		96.5	%		7,944		95.2	%		7.1	%		8,334		2.1	%
Santa Barbara County		347		1,827		1,716		6.5	%		1,834		91.4	%		1,748		88.8	%		4.9	%		1,880		-2.4	%
Riverside County		276		809		798		1.4	%		692		94.9	%		616		88.8	%		12.3	%		678		2.1	%
Total same-property		12,875		1,715		1,626		5.5	%		67,230		95.9	%		63,560		95.7	%		5.8	%		65,982		1.9	%
Los Angeles County		3,499		2,056							20,538					2,245
Orange County		2,899		1,700							14,839					-
San Diego County		2,895		1,809							15,635					-
Non-same property		9,293		1,868							51,012					2,245
Northern California
Santa Clara County		4,279		2,209		2,024		9.1	%		28,460		96.0	%		26,015		95.4	%		9.4	%		27,539		3.3	%
Contra Costa County		1,720		1,868		1,728		8.1	%		9,851		96.7	%		9,089		96.7	%		8.4	%		9,446		4.3	%
Alameda County		1,542		1,876		1,679		11.7	%		8,940		96.5	%		8,075		96.1	%		10.7	%		8,719		2.5	%
San Mateo County		768		2,272		2,070		9.8	%		5,386		96.7	%		4,908		96.7	%		9.7	%		5,189		3.8	%
San Francisco MSA		202		2,484		2,264		9.7	%		1,497		95.4	%		1,306		91.2	%		14.6	%		1,443		3.7	%
Other		230		1,761		1,646		7.0	%		1,243		97.1	%		1,105		91.7	%		12.5	%		1,202		3.4	%
Total same-property		8,741		2,084		1,905		9.4	%		55,377		96.3	%		50,498		95.6	%		9.7	%		53,538		3.4	%
Santa Clara County		1,595		2,539							10,783					-
Contra Costa County		550		2,202							3,484					-
Alameda County		1,596		2,277							10,143					-
San Mateo County		1,358		2,851							9,356					-
San Francisco MSA		590		2,759							4,221					3,691
Other		171		2,388							1,279					-
Non-same property		5,860		2,526							39,266					3,691
Seattle Metro
King County		6,072		1,443		1,344		7.4	%		27,554		95.5	%		25,802		95.8	%		6.8	%		26,903		2.4	%
Snohomish County		465		1,051		968		8.6	%		1,552		95.9	%		1,398		94.4	%		11.0	%		1,515		2.4	%
Total same-property		6,537		1,415		1,317		7.5	%		29,106		95.5	%		27,200		95.7	%		7.0	%		28,418		2.4	%
King County		3,171		1,608							15,428					12
Snohomish County		508		1,591							2,532					-
Non-same property		3,679		1,606							17,960					12
Other real estate assets (1)		902									8,167					4,971
Total same-property revenue		28,153	$	$1,760	$	1,641		7.3	%	$	151,713		95.9	%	$	141,258		95.7	%		7.4	%	$	147,938		2.6	%
Total non-same property revenue		19,734	$	$1,929						$	116,405				$	10,919

(1) Other real estate assets consists mainly of retail space, commercial properties, boat slips, and two Phoenix properties acquired as part of the merger with BRE and properties sold in 2014.

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.

Revenue by County - Nine months ended September 30, 2014 and 2013

(Dollars in thousands, except average property rental rates)

										Nine months ended					Nine months ended
			Average Property Rental Rates							September 30, 2014					September 30, 2013
Region	Units		YTD 2014		YTD 2013		% Change			Property Revenue		Financial Occupancy			Property Revenue		Financial Occupancy			Property Revenue % Change
Southern California
Los Angeles County		4,400	$	1,896	$	1,811		4.7	%	$	76,157		96.2	%	$	72,440		96.1	%		5.1	%
Ventura County		2,898		1,468		1,396		5.2	%		39,546		96.6	%		37,557		96.5	%		5.3	%
Orange County		2,887		1,920		1,822		5.4	%		50,104		95.9	%		47,599		95.9	%		5.3	%
San Diego County		2,067		1,295		1,236		4.8	%		25,028		96.3	%		23,640		95.6	%		5.9	%
Santa Barbara County		347		1,779		1,688		5.4	%		5,606		96.4	%		5,301		94.5	%		5.8	%
Riverside County		276		800		799		0.1	%		2,047		95.6	%		1,886		89.8	%		8.5	%
Total same-property		12,875		1,682		1,603		4.9	%		198,488		96.2	%		188,423		96.0	%		5.3	%
Los Angeles County		3,499		2,002							41,768					6,849
Orange County		2,899		1,690							29,468					-
San Diego County		2,895		1,799							32,656					-
Non-same property		9,293		1,841							103,892					6,849
Northern California
Santa Clara County		4,279		2,140		1,964		9.0	%		82,992		96.1	%		75,955		95.9	%		9.3	%
Contra Costa County		1,720		1,815		1,684		7.8	%		28,601		96.3	%		26,483		96.5	%		8.0	%
Alameda County		1,542		1,813		1,627		11.4	%		26,163		97.0	%		23,545		96.7	%		11.1	%
San Mateo County		768		2,205		2,011		9.6	%		15,681		96.6	%		14,362		97.1	%		9.2	%
San Francisco MSA		202		2,252		2,069		8.8	%		4,307		94.4	%		3,757		91.5	%		14.6	%
Other		230		1,719		1,605		7.1	%		3,624		96.9	%		3,320		94.8	%		9.2	%
Total same-property		8,741		2,018		1,849		9.1	%		161,368		96.3	%		147,422		96.1	%		9.5	%
Santa Clara County		1,595		2,524							19,241					-
Contra Costa County		550		2,164							6,839					-
Alameda County		1,596		2,262							18,560					-
San Mateo County		1,358		2,829							17,889					-
San Francisco MSA		590		2,670							12,136					9,561
Other		171		2,366							2,531					-
Non-same property		5,860		2,500							77,196					9,561
Seattle Metro
King County		6,072		1,405		1,307		7.5	%		80,865		96.0	%		75,352		96.2	%		7.3	%
Snohomish County		465		1,018		945		7.7	%		4,554		96.8	%		4,079		94.7	%		11.6	%
Total same-property		6,537		1,377		1,282		7.4	%		85,419		96.0	%		79,431		96.1	%		7.5	%
King County		3,171		1,648							29,680					12
Snohomish County		508		1,570							4,990					-
Non-same property		3,679		1,637							34,670					12
Other real estate assets (1) (2)		902									22,716					14,319
Total same-property revenue		28,153	$	1,717	$	1,606		6.9	%	$	445,275		96.2	%	$	415,276		96.1	%		7.2	%
Total non-same property revenue		19,734	$	1,537						$	238,474				$	30,741

(1) Other real estate assets consists mainly of retail space, commercial properties, boat slips, and two Phoenix properties acquired as part of the merger with BRE and properties sold in 2014.

(2) Other real estate asset revenues for the nine months ended September 30, 2014, includes $1.8 million related to a change in accounting policy related to accrual of utility reimbursement revenue.

See Company's 10-Q for additional disclosures

S-8.1

E S S E X  P R O P E R T Y  T R U S T,  I N C.

Development Pipeline - September 30, 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 (1)		Construction Start		Initial Occupancy		Stabilized Operations
Development Projects - Consolidated (2)
Project Name		Location
	MB 360 (3) (4)	San Francisco, CA		100	%		360		11,500	$	216	$	59	$	275	$	275		$	744
	Radius	Redwood City, CA		100	%		264		-		160		12		172		172			652		Q2 2012		Q3 2014		Q1 2015
	Total Development Projects - Consolidated						624		11,500		376		71		447		447			716
Land Held for Future Development - Consolidated
Project Name		Location
	Other Projects	various		100	%		-		-		49		-		49		49
	Total Development Pipeline - Consolidated						624		11,500		425		71		496		496
Development Projects/Land Held for Future Development - Joint Venture (2)
Project Name		Location
	Epic - Phase III	San Jose, CA		55	%		200		-		55		42		97		53			483		Q3 2013		Q3 2015		Q1 2016
	The Dylan	West Hollywood, CA		50	%		184		12,750		77		-		77		39			363		Q4 2011		Q3 2014		Q4 2014
	Mosso I	San Francisco, CA		55	%		181		5,030		88		12		100		55			538		Q2 2012		Q2 2014		Q4 2014
	Mosso II	San Francisco, CA		55	%		282		4,270		141		9		150		83			525		Q2 2012		Q3 2014		Q2 2015
	Park 20	San Mateo, CA		55	%		197		-		66		11		77		42			391		Q3 2012		Q4 2014		Q1 2015
	One South Market	San Jose, CA		55	%		312		6,000		96		49		145		80			458		Q2 2013		Q2 2015		Q2 2016
	The Village	Walnut Creek, CA		50	%		49		35,000		56		26		82		41			769		Q3 2013		Q3 2015		Q4 2015
	Emme	Emeryville, CA		55	%		190		-		56		6		62		34			328		Q3 2012		Q4 2014		Q1 2015
	Owens	Pleasanton, CA		55	%		255		5,729		17		72		89		49			341		Q3 2014		Q2 2016		Q2 2017
	Hacienda	Pleasanton, CA		55	%		251		-		15		71		86		47			343		Q1 2015		Q3 2016		Q3 2017
	Century Towers	San Jose, CA		50	%		376		2,006		31		141		172		86			455		Q3 2014		Q1 2017		Q1 2018
	Total Development Projects - Joint Venture						2,477		70,785		698		439		1,137		609		$	437
	Grand Total - Development Pipeline						3,101		82,285	$	1,123	$	510	$	1,633		1,105
	Essex Cost Incurred to Date																(801	)
	Essex Remaining Commitment															$	304

(1) Excludes the estimated allocation to retail square feet.

(2) The company share of cost included $5.9 million of capitalized interest, $1.4M of capitalized overhead and $1.5M of co-investment development fees related to development in Q3 2014.

(3) To date the Company has received $35 million of the $45 million of expected insurance proceeds related to the fire.

(4)	Construction Start	Initial Occupancy	Stabilized Operations
MB Phase I	Q2 2012	Q4 2014	Q2 2015
MB Phase II	Q3 2014	Q4 2015	Q2 2016

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 and Capital Expenditures - September 30, 2014

(Dollars in thousands, except per unit amounts)

			Total		Estimated		Estimated				NOI
			Incurred		Remaining		Total		Project		For the nine months ended
Region/Project Name	Units		To Date		Cost		Cost		Start Date			Q3 2014		Q3 2013
Same-property - Redevelopment Projects (1) (2)
Southern California
Hamptons		215		1,470		18,011		19,481		Q1 2014
Monterras		292		3,259		23,124		26,383		Q1 2014
Total Same-property - Redevelopment Projects		507	$	4,729	$	41,135	$	45,864			$	5,500	$	5,399
Same-Property Redevelopment Vacancy Loss											$	1,995	$	2,079
Non-same property - Redevelopment Projects
Southern California
Bunker Hill Towers, Los Angeles		456		9,754		66,390		76,144		Q3 2013
Total Non-same property - Redevelopment Projects		456	$	9,754	$	66,390	$	76,144			$	4,264	$	3,788

(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 $0.7 million of vacancy loss for the same-property portfolio, and $0.9 million of vacancy loss for the total portfolio during the three months ended

September 30, 2014. The Company completed the redevelopment of interiors totaling 522 units for the same-property portfolio and 699 units for the total portfolio, during the

three months ended September 30, 2014

(3) The company incurred $0.2 million of capitalized interest, $1.7M of capitalized overhead and $0.1M of co-investment redevelopment fees related to redevelopment in Q3 2014.

Non-revenue Generating Capital Expenditures		Q3 2014		Q2 2014		Q1 2014		Q4 2013		Q3 2013
Non-revenue generating capital expenditures	$	14,022	$	10,623	$	4,416	$	5,153	$	9,536
Average apartment units in quarter		38,702		34,158		29,886		29,833		29,646
Capital expenditures per apartment unit in the quarter	$	362	$	311	$	148	$	173	$	322
Capital expenditures per apartment unit-trailing four quarters	$	884	$	870	$	918	$	906	$	1,235

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 - September 30, 2014	Essex					Total				Essex		Weighted			Remaining		For the Quarter						For the Nine Months Ended
(Dollars in thousands)	Ownership					Undepreciated		Debt		Book		Average			Term of		Ended September 30,						Ended September 30,
	Percentage			Units		Book Value		Amount		Value		Borrowing Rate			Debt/(in Years)		2014			2013			2014			2013
Operating Non-Consolidated Joint Ventures																	Net Operating Income
Essex Apartment Value Fund II, L.P. (Fund II) (1)		28.2	%		96	$	14,449	$	6,224	$	2,578		5.6	%		0.4	$	349		$	595		$	966		$	1,764
Wesco I, LLC		50.0	%		2,713		680,218		365,621		135,875		4.0	%		8.8		8,911			8,369			27,175			24,824
Wesco III, LLC		50.0	%		993		229,525		119,830		53,411		3.4	%		6.2		2,926			1,869			7,665			3,299
Wesco IV, LLC		50.0	%		1,116		297,828		148,000		95,338		3.8	%		6.4		3,851			-			7,663			-
BEXAEW, LLC		50.0	%		2,723		516,748		295,000		89,504		3.1	%		6.4		7,472			-			14,502			-
CPPIB		55.0	%		878		254,352		-		172,189		-			-		3,965			-			8,992			-
Other		50.0	%		462		136,583		105,535		20,089		2.1	%		5.9		1,912			1,190			4,314			2,495
Total Operating Non-Consolidated Joint Ventures					8,981	$	2,129,703	$	1,040,210		568,984		3.5	%		7.1	$	29,386		$	12,023		$	71,277		$	32,382
																	Essex Portion of NOI and Expenses
NOI																	$	14,815		$	5,882		$	35,878		$	15,806
Depreciation																		(9,986	)		(3,723	)		(23,060	)		(11,342	)
Interest expense and other																		(4,557	)		(1,584	)		(11,500	)		(3,316	)
Gain and promote income																		-			36,386			8,115			38,752
Net income from operating co-investments																	$	272		$	36,961		$	9,433		$	39,900
Development Joint Ventures (2) (3)		50/55	%		2,477	$	698,000	$	59,900		292,636		1.5	%		2.1	$	263		$	(298	)	$	260		$	(326	)
												Weighted			Weighted
												Average			Average
												Preferred			Expected
												Return			Term
																	Income from Prederred Equity Investments
Preferred Equity Investments											181,657		10.3	%		3.4	$	4,375		$	4,139		$	11,372		$	12,721
Total Co-investments										$	1,043,277						$	4,910		$	40,802		$	21,065		$	52,295

(1) The Company has a 28.2% interest as a general partner and limited partner in Fund II. As of September 30, 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 interests in eleven development co-investments, which are detailed on S-9.

(3) The Dylan has a $59.9 million long-term tax-exempt bond debt that is subject to a total return swap that will mature in 2016.

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.

Summary of Consolidated Co-Investments and Noncontrolling Interest - September 30, 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 nine months ended
	Balance as of September 30, 2014								September 30, 2014
	Investment in		Related		Noncontrolling		DownREIT				Operating
	Real Estate		Debt		Interest		Units Outstanding (1)		Revenue		Expenses		NOI
Noncontrolling Interest - DownREIT:
Barkley Apartments	$	8,177	$	16,338	$	1,696		74,248	$	2,064	$	716	$	1,348
Avery (2)		36,327		10,000		2,568		58,884		1,058		604		454
Brookside Oaks		31,539		19,399		2,183		78,903		3,176		614		2,562
Capri at Sunny Hills		15,937		-		2,927		157,665		1,960		562		1,398
Hidden Valley (3)		36,266		30,046		6,089		62,647		4,319		1,329		2,990
Highridge Apartments		29,229		44,807		2,746		262,505		5,384		1,153		4,231
Montejo Apartments		7,615		12,876		1,216		29,319		1,485		403		1,082
The Elliot at Mukilteo		14,876		10,750		1,197		99,438		2,865		997		1,868
Magnolia Square		36,694		12,872		6,101		54,938		3,089		778		2,312
Fairhaven Apartments		12,108		16,709		2,951		67,728		2,108		581		1,527
Valley Park Apartments		12,905		21,860		30		2,156		2,381		858		1,523
Villa Angelina Apartments		18,739		26,650		1,593		43,552		3,223		826		2,397
	$	260,412	$	222,307		31,297		991,983	$	33,112	$	9,421	$	23,692
Other Components of Noncontrolling Interest:
Hillsdale Garden Apartments (4)	$	103,861				22,044			$	14,142	$	4,256	$	9,886
Operating Partnership Units and Other						56,810
Total Noncontrolling Interest					$	110,151

(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.

(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.

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.

Assumptions for 2014 FFO Guidance Range

Q3 2014 Earnings Results Supplement

($'s in thousands, except share and per share data)	YTD			2014 Revised Guidance Range
	Actuals			Low End			High End			Changes from Q2 '14 Guidance
Net Operating Income ("NOI")
Total NOI from consolidated communities	$	460,651		$	642,700			645,600		Increased same-property revenue growth to a range of 6.7% to 7.1% and NOI range to 8.3% to 8.7%. Reflects acquisitions through Oct.
Management Fees		6,356			8,400			8,800
Interest Expense
Interest expense, before capitalized interest		(134,804	)		(187,300	)		(186,500	)	Interest expense dependent on timing of capital markets activities.
Projected interest capitalized		17,783			21,900			22,600		Capitalized interest dependent on development starts.
Net interest expense		(117,021	)		(165,400	)		(163,900	)
Recurring Income and Expenses
Interest and other income		7,799			10,600			11,000
FFO from co-investments		36,207			52,100			53,000
General and administrative expense		(27,372	)		(37,300	)		(38,000	)	Increased incentive compensation at higher performance.
Preferred dividends and non-controlling interest		(10,502	)		(14,000	)		(14,000	)
		6,132			11,400			12,000
Non-Core Income and Expenses
Promote income from co-investment		4,904			9,400			10,400
Gains on sales of marketable securities, land, prepayment penalties		1,286			1,286			1,286
Earthquake related and other		(1,571	)		(1,571	)		(1,571	)
Loss on early retirement of debt		(197	)		(197	)		(197	)
Merger and integration expenses		(46,413	)		(52,500	)		(49,500	)
Cyber-intrusion expenses		(1,249	)		(2,749	)		(2,749	)
Utility reimbursement income accrual and acquisition fee		2,307			2,307			2,307
Acquisition costs		(768	)		(900	)		(1,400	)
		(41,701	)		(44,924	)		(41,424	)
Funds from Operations	$	314,417			452,177			461,077
Funds from Operations per diluted Share	$	5.55			7.67			7.82
% Change - Funds from Operations		-4.2	%		1.1	%		3.0	%
Funds from Operations excluding non-core items	$	356,118			497,101			502,501
Core Funds from Operations per diluted Share	$	6.28			8.43			8.52
% Change - Core Funds from Operations		11.1	%		11.0	%		12.2	%
Weighted average shares outstanding		56,677			58,950			58,950

See Company's 10-Q for additional disclosures

S-13

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

Nine months ended September 30, 2014

(Dollars in thousands)

Acquisitions (1)				Essex
				Ownership					Purchase		Price per		Average
Property Name	Location	Units		Percentage			Entity	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
Collins on Pine	Seattle, WA		76		100	%	EPLP	May-14		29,200		384		1,884
	Q2 2014 Total		472						$	105,950	$	224
Paragon	Fremont, CA		301		100	%	EPLP	Jul-14		111,000		369		2,090
Apex	Milpitas, CA		366		100	%	EPLP	Aug-14		150,000		410		2,183
Ellington at Bellevue	Bellevue, WA		220		100	%	EPLP	Aug-14		58,750		267		1,540
	Q3 2014 Total		887						$	319,750	$	360
Dispositions				Essex
				Ownership					Sales		Price per
		Units		Percentage			Entity	Date	Price		Unit
Vista Capri			106		100	%	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
Pinnacle at Queen's Creek			252		35.0	%	EPLP	Jun-14		33,300		132
	Q2 2014 Total		252						$	33,300	$	132
Coldwater Canyon			39		100	%	EPLP	Sep-14	$	9,525		244
Mt. Sutro			99		100	%	EPLP	Sep-14		39,500		399
	Q3 2014 Total		138						$	49,025	$	355

(1) Excludes properties acquired in the BRE merger on April 1, 2014.

See Company's 10-Q for additional disclosures

S-14

E S S E X  P R O P E R T Y  T R U S T,  I N C.

Preliminary 2015 MSA Level Forecast: 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			Economic Rent Growth
Los Angeles		10,000		6,000		16,000		0.6	%		0.5	%		84,000		2.0	%		5.4	%
Ventura		550		700		1,250		0.8	%		0.4	%		5,500		1.9	%		4.4	%
Orange		3,500		3,900		7,400		0.9	%		0.7	%		29,700		2.0	%		4.6	%
San Diego		3,900		3,700		7,600		0.9	%		0.6	%		30,800		2.3	%		4.5	%
So. Cal.		17,950		14,300		32,250		0.8	%		0.6	%		150,000		2.1	%		4.8	%
San Francisco		5,000		900		5,900		1.3	%		0.8	%		33,100		3.0	%		6.9	%
Oakland		2,000		3,900		5,900		0.6	%		0.6	%		25,300		2.4	%		7.2	%
San Jose		4,400		2,200		6,600		1.8	%		1.0	%		31,800		3.2	%		7.5	%
No. Cal.		11,400		7,000		18,400		1.3	%		0.8	%		90,200		2.9	%		7.3	%
Seattle		9,000		7,500		16,500		1.9	%		1.4	%		43,300		2.8	%		4.5	%
Weighted Average (4)		38,350		28,800		67,150		1.2	%		0.8	%		283,500		2.5	%		5.6	%

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

U.S. Economic Assumptions: 2015 G.D.P. Growth: 2.8% , 2015 Job Growth: 2.0%

(1) New Residential Supply: MF reflects Company's internal estimate of actual multifamily deliveries; SF 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 2015 over estimated Dec 2014, 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 2015 vs Q4 2014 (excludes submarkets not targeted by Essex).

(4) Weighted Average: markets weighted by scheduled rent in the Company's Portfolio

See Company's 10-Q for additional disclosures

S-15