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): December 31, 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.)	77-0369576 (Essex Property Trust, Inc.)
California (Essex Portfolio, L.P.)	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:

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

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

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

☐ 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 February 4, 2015, Essex Property Trust, Inc. (the “Company”) issued a press release announcing the Company’s earnings for the quarter ended December 31, 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 February 4, 2015

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:  February 5, 2015
	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 February 4, 2015
99.2	Supplemental Information

EX-99.1

Exhibit 99.1

Essex Announces Fourth Quarter 2014 Results and 2015 Guidance

Same-Property NOI Grows 10% in the Fourth Quarter

Palo Alto, California—February 4, 2015—Essex Property Trust, Inc. (NYSE:ESS) announced today its fourth quarter 2014 earnings results and related business activities.

Funds from Operations (“FFO”) and Net Income per diluted share for the quarter and year ended December 31, 2014 are detailed below.  FFO and Net Income for the quarter and year ended December 31, 2014 include $7.1 million and $53.5 million in merger and integration related expenses, respectively. Core FFO excludes merger and integration expenses, acquisition costs and non-routine items such as cyber-intrusion expenses.

	Three Months Ended December 31,				%			Year Ended December 31,				%
	2014		2013		Change			2014		2013		Change
Per Diluted Share
Total FFO	$	2.29	$	1.80		27.6	%	$	7.89	$	7.59		4.0	%
Core FFO	$	2.24	$	1.94		15.1	%	$	8.54	$	7.60		12.4	%
Earnings per Share	$	0.63	$	0.85		-25.9	%	$	2.06	$	4.04		-49.0	%

Fourth Quarter Highlights:

· Grew Core FFO per diluted share by 15.1% compared to Q4 2013 and 12.4% for the full year, which exceeded the high end of the Company’s initial guidance range.

· Increased same-property gross revenues and net operating income (“NOI”) by 7.7% and 10.0%, respectively, compared to Q4 2013.

· Realized a sequential increase in same-property revenue growth of 1.9%.

· Acquired a 50% interest in one community in the fourth quarter for a contract price of $180 million.  For the full year, the Company acquired seven communities for a total contract price of $641 million.

· Liquidated Essex Apartment Value Fund II and recognized promote income of $5.7 million in Q4 2014 and $9.5 million for the full year which has been excluded from Core FFO.

“The fourth quarter culminated a year of exceptional accomplishment at Essex.  We achieved the highest level of same-property revenue growth in fourteen years, leading to 12.4% Core FFO per diluted share growth, supplemented by accretive investments and substantial progress integrating BRE into the Essex platform. In 2015, we expect to benefit from the momentum of robust fundamentals in our coastal California and Washington markets, while realizing synergies from the first phase of the BRE integration and the continued delivery of our development pipeline, leading to another year of strong performance,” commented Michael Schall, President and Chief Executive Officer of the Company.

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

www.essexpropertytrust.com

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 December 31, 2014 compared to the quarter ended December 31, 2013, and the sequential percentage change for the quarter ended December 31, 2014 versus the quarter ended September 30, 2014 by submarket for the Company:

	Q4 2014 vs. Q4 2013			Q4 2014 vs. Q3 2014			% of Total
	Gross Revenues			Gross Revenues			Q4 2014 Revenues
Southern California
Los Angeles County		5.6	%		1.6	%		16.9	%
Ventura County		5.2	%		1.0	%		8.7	%
Orange County		6.5	%		1.7	%		11.2	%
San Diego County		6.6	%		1.4	%		5.6	%
Other Southern California		8.0	%		9.5	%		1.8	%
Total Southern California		6.0	%		1.8	%		44.2	%
Northern California
Santa Clara County		10.0	%		2.3	%		18.8	%
Contra Costa County		9.9	%		1.5	%		6.5	%
Alameda County		11.6	%		3.3	%		6.0	%
Other Northern California		9.7	%		2.1	%		5.4	%
Total Northern California		10.2	%		2.3	%		36.7	%
Seattle Metro		7.2	%		1.5	%		19.1	%
Same-Property Portfolio		7.7	%		1.9	%		100.0	%

	Year Over Year Growth
	Q4 2014 compared to Q4 2013
	Gross Revenues			Operating Expenses			NOI
Southern California		6.0	%		1.5	%		8.1	%
Northern California		10.2	%		-1.2	%		15.1	%
Seattle Metro		7.2	%		12.3	%		4.8	%
Same-Property Portfolio		7.7	%		2.7	%		10.0	%

	Sequential Growth
	Q4 2014 compared to Q3 2014
	Gross Revenues			Operating Expenses			NOI
Southern California		1.8	%		-3.7	%		4.5	%
Northern California		2.3	%		-2.2	%		4.1	%
Seattle Metro		1.5	%		4.8	%		-0.1	%
Same-Property Portfolio		1.9	%		-1.5	%		3.5	%

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	Financial Occupancies
	Quarter Ended
	12/31/2014			9/30/2014			12/31/2013
Southern California		96.4	%		95.9	%		96.3	%
Northern California		96.3	%		96.3	%		96.1	%
Seattle Metro		95.8	%		95.5	%		95.9	%
Same-Property Portfolio		96.3	%		95.9	%		96.2	%

Legacy BRE Same-Property Revenue

The table below represents the fourth 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 fourth 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.

	Q4 2014 vs. Q4 2013			Q4 2014 vs. Q3 2014			% of Total
	Gross Revenues			Gross Revenues			Q4 2014 Revenues
Southern California
Los Angeles County		3.0	%		0.0	%		15.5	%
Orange County		5.0	%		1.9	%		18.8	%
San Diego County		5.8	%		0.7	%		17.0	%
Other Southern California		2.1	%		1.2	%		1.0	%
Total Southern California		4.6	%		0.9	%		52.3	%
Northern California
Santa Clara County		7.8	%		0.9	%		5.5	%
Contra Costa County		7.8	%		1.7	%		4.4	%
Alameda County		12.2	%		3.0	%		8.9	%
Other Northern California		7.4	%		0.4	%		12.5	%
Total Northern California		8.8	%		1.4	%		31.3	%
Seattle Metro		6.8	%		-0.2	%		16.4	%
Same-Property Portfolio		6.3	%		0.9	%		100.0	%

The revenue growth differential between the BRE and ESS same property pool widened to 140 basis points in the fourth quarter primarily due to submarket weightings between the two portfolios and the Company’s strategic decision to temporarily suspend the BRE renovation program for evaluation.

Investment Activity

During the fourth quarter, the Company acquired a 50% interest in Palm Valley Apartments located in San Jose, CA for a $180 million contract price.  Please see the press release dated November 3, 2014 for additional details about the transaction.

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Dispositions

During the quarter, Essex Apartment Value Fund II, L.P. ("Fund II") sold its remaining community for $23.5 million.  The total gain on the sale was $11.9 million.  The Company had a 28.2% ownership interest in Fund II and received promote income in the fourth quarter of $5.7 million which has been excluded from Core FFO.

In December, the Company sold Pinnacle Town Center located in Phoenix, AZ for total proceeds of $57.0 million. Total gain on the sale was $5.1 million, which has been excluded from the calculation of FFO.

In December, the Company sold a land parcel located adjacent to its Park Viridian property in Anaheim, CA for total proceeds of $23.8 million.  Total gain on the sale was $2.1 million, which has been excluded from the calculation of Core FFO.

Subsequent to the quarter end, the Company sold Pinnacle South Mountain located in Phoenix, AZ for total proceeds of $63.8 million.  With the sale of Pinnacle South Mountain, the Company has exited the Phoenix, AZ apartment market.

Development Activity

The table below represents the percentage of units leased for each community in lease-up as of February 3, 2015.

Project Name	Location	Total Units		ESS Ownership		% Leased as of 2/3/15
Wilshire La Brea	Los Angeles, CA		478		100%		97%
The Dylan	West Hollywood, CA		184		50%		95%
Radius	Redwood City, CA		264		100%		90%
Mosso (Phase I and II)	San Francisco, CA		463		55%		70%
MB 360 Phase I	San Francisco, CA		188		100%		47%
Park 20	San Mateo, CA		197		55%		32%
Emme	Emeryville, CA		190		55%		13%
Total/Average % Leased			1,964				70%

Other Investments

In October, the Company received cash of $101 million for its share of the redemption of the Wesco II preferred equity investment located in San Francisco, CA.  During the quarter, the Company received $5.3 million of income related to early redemption fees.  The redemption fees have been excluded from Core FFO.

In November, the Company originated a $19 million redeemable preferred equity investment in a multifamily development project located in San Jose, CA. The investment has a preferred return of 9%.

Liquidity and Balance Sheet

Common Stock

During the fourth quarter, the Company issued 409,051 shares of common stock at an average price of $204.83 for net proceeds of $83.2 million.  For 2014, the Company issued 2,964,315 shares of common stock at an average price of $181.56 for net proceeds of $534 million.  Subsequent to quarter end, the Company has issued 459,518 shares of common stock at an average price of $224.72 for net proceeds of $102.6 million.

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Balance Sheet

In December, the Company repaid $125 million outstanding on its $350 million term loan.  Due to the early termination of this loan, the Company recorded a loss of $0.3 million of deferred amortization charges during the fourth quarter.

The Company extended its $1.0 billion line of credit for an additional year, maturing in December 2018. There was no change in the underlying interest rate which is LIBOR plus 95 basis points.

2015 Guidance Assumptions

Per Diluted Share	Range
Total FFO	$9.11 - $9.44
Core FFO	$9.25 - $9.55
U.S. Economic Assumptions
GDP Growth	2.8%
Job Growth	2.0%
Essex Markets Economic Assumptions
Job Growth	2.5%
Market Rent Growth	5.6%

Estimated Same-Property Portfolio Growth

	Full Year	Q4 ’15
	ESS	BRE	Combined (ESS and BRE)
Southern California	4.50% to 5.50%	4.50% to 5.50%	4.50% to 5.50%
Northern California	8.25% to 9.25%	7.50% to 8.50%	8.00% to 9.00%
Seattle Metro	5.75% to 6.75%	5.00% to 6.00%	5.70% to 6.70%
Gross Revenue Growth	6.25% to 7.25%	5.50% to 6.50%	6.00% to 7.00%
Operating Expense Growth	2.50% to 3.50%		2.50% to 3.50%
Net Operating Income (NOI) Growth	7.50% to 9.50%		7.00% to 9.00%

Investment Activity Assumptions

· Acquisitions of $400-$600 million to be financed with proceeds from dispositions, joint venture capital, as well as match funding with a combination of debt and equity capital.  Net acquisitions are expected to generate net accretion of $0.5 million over the cost of capital.

· The Company expects to start three new developments in 2015.  Total development spend of approximately $400 million and the Company’s pro rata share of the development spend is expected to be $285 million.

· Redevelopment spending of $150 million which includes restarting the redevelopment program at several BRE properties.

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For additional details regarding our 2015 assumptions, please see page S-13 of the Supplemental Financial Information.  For the first quarter of 2015, the Company has established a range for Core FFO per diluted share of $2.17 to $2.27.

Conference Call with Management

The Company will host an earnings conference call with management to discuss its quarterly results on Thursday, February 5, 2015 at 10 a.m. PT (1 p.m. ET), which will be broadcast live via the Internet at www.essex.com, and accessible via phone by dialing toll-free, (877) 407-0784, or toll/international, (201) 689-8560, 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 fourth quarter earnings link.  To access the replay digitally, dial (877) 870-5176 using the replay pin number 13598664. 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 238 apartment communities with an additional 12 properties in various stages of active development. Additional information about Essex can be found on the Company’s web site at www.essex.com.

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, integration 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 are 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 quarter and years ended December 31, 2014 and 2013:

	Three Month Ended December 31,						Year Ended December 31,
Funds from Operations (In thousands)	2014			2013			2014			2013
Net income available to common stockholders	$	40,175		$	31,874		$	116,859		$	150,811
Adjustments:
Depreciation and amortization		106,703			49,857			360,592			193,518
Gains not included in FFO, net of internal disposition costs		(8,399	)		(16,564	)		(50,064	)		(67,975	)
Depreciation add back from unconsolidated co-investments		10,915			4,405			33,975			15,748
Noncontrolling interest related to Operating Partnership units		1,469			1,901			4,911			8,938
Depreciation attributable to third party ownership		(335	)		(328	)		(1,331	)		(1,309	)
Funds from Operations	$	150,528		$	71,145		$	464,942		$	299,731
Merger and integration expenses		7,116			4,284			53,530			4,284
Cyber intrusion expenses		1,600			—			2,849			—
Acquisition and disposition costs		1,109			369			1,878			1,161
Gain on sale of marketable securities and note prepayment		—			92			(886	)		(2,519	)
Co-investment promote income		(5,736	)		—			(10,640	)		—
Gain on sale of land		(2,133	)		—			(2,533	)		(1,503	)
Loss on early retirement of debt		268			1,146			268			300
Income from early redemption of preferred equity investments		(5,250	)		—			(5,250	)		(1,358	)
Other non-core adjustments		(458	)		—			(997	)		—
Core Funds from Operations	$	147,044		$	77,036		$	503,161		$	300,096

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 on page 1 regarding 2015 being a year of strong performance; statements and estimates under the caption “2015 Guidance Assumptions” on pages 5 regarding (a) Total FFO and Core FFO in 2015 and the economic and market assumptions underlying such amounts, (b)  same-property revenue growth, gross income growth, operating expense growth, and NOI growth in 2015, (c) investment activity assumptions, including the projected amounts in 2015 of acquisitions, developments and redevelopments, and the net accretion generated by acquisitions and (d) Core FFO per diluted share in the first quarter of 2015;  and statements and estimates set forth under the captions “Development Pipeline—December 31, 2014” and “Redevelopment Pipeline and Capital Expenditures—December 31, 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, including those regarding 2015 NOI, FFO and Core FFO, set forth in the columns “2015 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-Q for the quarter ended September 30, 2014.

Contact Information

Barb Pak

Director of Investor Relations

(650) 494-3700

bpak@essex.com

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EX-99.2

Exhibit 99.2

Q4 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 – December 31, 2014	S-5
Capitalization Data, Public Bond Covenants, Credit Ratings, and Selected Credit Ratios – December 31, 2014	S-6
Property Operating Results – Quarters ended December 31, 2014 and 2013	S-7
Property Operating Results – Years ended December 31, 2014 and 2013	S-7.1
Revenue by County – Quarters ended December 31, 2014, December 31, 2013, and September 30, 2014	S-8
Revenue by County – Years ended December 31, 2014 and 2013	S-8.1
Development Pipeline – December 31, 2014	S-9
Redevelopment Pipeline and Capital Expenditures – December 31, 2014	S-10
Co-Investments – December 31, 2014	S-11
Summary of Consolidated Co-Investments and Noncontrolling Interest – December 31, 2014	S-12
Assumptions for 2015 FFO Guidance Range	S-13
Summary of Apartment Community Acquisitions and Dispositions Activity	S-14
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						Years Ended
(Dollars in thousands, except share and per share amounts)	December 31,						December 31,
	2014			2013			2014			2013
Revenues:
Rental and other property	$	276,209		$	155,986		$	959,958		$	602,003
Management and other fees		2,490			1,451			9,347			7,263
		278,699			157,437			969,305			609,266
Expenses:
Property operating		88,052			51,070			310,913			196,012
Depreciation and amortization		106,703			49,733			360,592			192,420
General and administrative		12,256			6,831			40,878			26,684
Merger and integration expenses		7,116			4,284			53,530			4,284
Acquisition and disposition costs		1,109			369			1,878			1,161
		215,236			112,287			767,791			420,561
Earnings from operations		63,463			45,150			201,514			188,705
Interest expense		(47,529	)		(29,861	)		(164,551	)		(116,524	)
Interest and other income		3,126			2,307			11,811			11,633
Equity income from co-investments		18,828			3,570			39,893			55,865
Loss on early retirement of debt		(268	)		(1,146	)		(268	)		(300	)
Gain on sale of real estate and land		7,185			-			46,039			1,503
Income before discontinued operations		44,805			20,020			134,438			140,882
Income from discontinued operations		-			16,883			-			31,173
Net income		44,805			36,903			134,438			172,055
Net income attributable to noncontrolling interest		(3,316	)		(3,661	)		(12,288	)		(15,772	)
Net income attributable to controlling interest		41,489			33,242			122,150			156,283
Dividends to preferred stockholders		(1,314	)		(1,368	)		(5,291	)		(5,472	)
Net income available to common stockholders	$	40,175		$	31,874		$	116,859		$	150,811
Net income per share - basic	$	0.63		$	0.85		$	2.07		$	4.05
Shares used in income per share - basic		63,362,624			37,373,783			56,546,959			37,248,960
Net income per share - diluted	$	0.63		$	0.85		$	2.06		$	4.04
Shares used in income per share - diluted		63,544,534			37,452,803			56,696,525			37,335,295

See Company's 10-K and 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					Years Ended
Selected Line Item Detail	December 31,					December 31,
(Dollars in thousands)	2014		2013			2014		2013
Rental and other property
Rental	$	258,425	$	145,231		$	894,643	$	561,109
Other property		17,784		10,755			65,315		40,894
Rental and other property	$	276,209	$	155,986		$	959,958	$	602,003
Property operating expenses
Real estate taxes	$	30,421	$	14,504		$	107,873	$	57,276
Administrative and insurance		19,271		12,542			69,255		46,896
Maintenance and repairs		17,503		10,645			59,277		40,831
Utilities		15,659		10,016			55,718		37,791
Property management		5,198		3,363			18,790		13,218
Property operating expenses	$	88,052	$	51,070		$	310,913	$	196,012
Interest and other income
Marketable securities and other interest income	$	3,085	$	2,358		$	10,761	$	8,191
Notes receivable		41		41			164		923
(Loss) gain from sale of marketable securities and note prepayment		-		(92	)		886		2,519
Interest and other income	$	3,126	$	2,307		$	11,811	$	11,633
Equity income from co-investments
Equity income from co-investments	$	778	$	14		$	2,356	$	836
Income from preferred equity investments		3,717		3,556			15,089		14,919
Gain on sale of co-investments		3,347		-			6,558		38,752
Co-investment promote income		5,736		-			10,640		-
Income from early redemption of preferred equity investments		5,250		-			5,250		1,358
Equity income from co-investments	$	18,828	$	3,570		$	39,893	$	55,865
Noncontrolling interest
Limited partners of Essex Portfolio, L.P.	$	1,469	$	1,901		$	4,911	$	8,938
DownREIT limited partners' distributions		1,142		1,144			4,705		4,635
Third-party ownership interest		705		616			2,672		2,199
Noncontrolling interest	$	3,316	$	3,661		$	12,288	$	15,772

See Company's 10-K and 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

Consolidated Funds From Operations	Three Months Ended								Years Ended
(Dollars in thousands, except share and per share amounts)	December 31,								December 31,
	2014			2013			% Change		2014			2013			% Change
Funds from operations
Net income available to common stockholders	$	40,175		$	31,874				$	116,859		$	150,811
Adjustments:
Depreciation and amortization		106,703			49,857					360,592			193,518
Gains not included in FFO, net of internal disposition costs		(8,399	)		(16,564	)				(50,064	)		(67,975	)
Depreciation add back from unconsolidated co-investments		10,915			4,405					33,975			15,748
Noncontrolling interest related to Operating Partnership units		1,469			1,901					4,911			8,938
Depreciation attributable to third party ownership		(335	)		(328	)				(1,331	)		(1,309	)
Funds from operations	$	150,528		$	71,145				$	464,942		$	299,731
FFO per share-diluted	$	2.29		$	1.80			27.6%	$	7.89		$	7.59			4.0%
Components of the change in FFO
Non-core items:
Merger and integration expenses	$	7,116			4,284				$	53,530			4,284
Cyber intrusion expenses		1,600			-					2,849			-
Acquisition and disposition costs		1,109			369					1,878			1,161
Loss (gain) on sale of marketable securities and note prepayment		-			92					(886	)		(2,519	)
Gain on sale of land		(2,133	)		-					(2,533	)		(1,503	)
Loss on early retirement of debt		268			1,146					268			300
Co-investment promote income		(5,736	)		-					(10,640	)		-
Income from early redemption of preferred equity investments		(5,250	)		-					(5,250	)		(1,358	)
Other non-core adjustments		(458	)		-					(997	)		-
Core funds from operations		147,044			77,036					503,161			300,096
Core FFO per share-diluted	$	2.24		$	1.94			15.1%	$	8.54		$	7.60			12.4%
Changes in core items:
Same-property NOI	$	9,844							$	34,980
Non-same property NOI		73,727								208,168
Management and other fees, net		1,039								1,584
Equity income from co-investments		7,487								20,166
Interest and other income		727								1,811
Interest expense		(17,668	)							(48,027	)
General and administrative		(3,825	)							(11,345	)
Discontinued operations		(443	)							(3,048	)
Other items, net		(880	)							(1,224	)
	$	70,008							$	203,065
Weighted average number of shares outstanding diluted (1)		65,740,227			39,634,078					58,921,232			39,501,076

(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 and 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)
	December 31, 2014			December 31, 2013
Real Estate:
Land and land improvements	$	2,426,496		$	1,083,552
Buildings and improvements		8,826,015			4,360,205
		11,252,511			5,443,757
Less:  accumulated depreciation		(1,564,806	)		(1,254,886	)
		9,687,705			4,188,871
Real estate under development		434,371			50,430
Co-investments		1,036,411			677,133
Real estate held for sale, net		56,300			-
		11,214,787			4,916,434
Cash and cash equivalents		95,420			53,766
Marketable securities		117,240			90,084
Notes and other receivables		24,923			68,255
Acquired in place lease value and other assets		110,504			58,300
Total assets	$	11,562,874		$	5,186,839
Mortgage notes payable	$	2,245,944		$	1,404,080
Unsecured debt		2,617,482			1,410,023
Lines of credit		246,391			219,421
Other liabilities		293,733			150,728
Total liabilities		5,403,550			3,184,252
Redeemable noncontrolling interest		23,256			-
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		6,651,165			2,345,763
Distributions in excess of accumulated earnings		(650,797	)		(474,426	)
Accumulated other comprehensive loss		(51,452	)		(60,472	)
Total stockholders' equity		6,022,672			1,884,619
Noncontrolling interest		113,396			113,619
Total equity		6,136,068			1,998,238
Total liabilities and equity	$	11,562,874		$	5,186,839

See Company's 10-K and 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 - December 31, 2014

(Dollars in thousands)

			Weighted Average
	Balance Outstanding		Interest Rate			Maturity In Years
Mortgage Notes Payable
Fixed rate - secured	$	1,972,949		4.9	%		4.5
Variable rate - secured (1)		189,202		1.8	%		18.2
Unamortized premiums		83,793		-			-
Total mortgage notes payable		2,245,944		4.6	%		5.6
Unsecured Debt
Bonds private - fixed rate		465,000		4.5	%		4.2
Bonds public - fixed rate		1,900,000		3.4	%		7.1
Term loan (2)		225,000		2.4	%		1.9
Unamortized premiums		27,482		-			-
		2,617,482		3.5	%		6.1
Unsecured Lines of Credit
Line of credit (3)		229,814		1.8	%
Line of credit (4)		16,577		1.8	%
Total lines of credit		246,391		1.8	%
Total debt	$	5,109,817		3.9	%

Scheduled principal payments and unamortized premiums (excludes lines of credit) are as follows:

										Weighted			Percentage
	Secured		Unsecured		Unamortized premiums			Total		Average Interest Rate			of Total Debt
2015	$	94,580	$	-		30,466		$	125,046		4.6	%		2.6	%
2016		41,481		350,000		30,172			421,653		3.3	%		8.7	%
2017		198,683		365,000		20,464			584,147		3.2	%		12.0	%
2018		320,080		-		16,804			336,884		5.4	%		6.9	%
2019		565,801		75,000		11,729			652,530		4.2	%		13.4	%
2020		692,800		-		5,857			698,657		5.0	%		14.4	%
2021		50,444		500,000		(1,523	)		548,921		4.3	%		11.3	%
2022		412		300,000		(2,167	)		298,245		3.7	%		6.1	%
2023		435		600,000		(440	)		599,995		3.6	%		12.3	%
2024		18,234		400,000		(87	)		418,147		4.0	%		8.6	%
2025		13,600		-		-			13,600		1.7	%		0.3	%
Thereafter		165,601		-		-			165,601		1.9	%		3.4	%
Total	$	2,162,151	$	2,590,000	$	111,275		$	4,863,426		4.0	%		100.0	%

Capitalized interest for the three and twelve months ended December 31, 2014 was approximately $4.7 million and $22.5 million, respectively.

(1) Variable rate debt of $179.2 million is tax exempt to the note holders, of which $153.2 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 $225 million, which effectively converts the interest rate on $225 million of the term loan to a fixed rate of 2.4%.

(3) The unsecured line of credit facility aggregates to $1 billion and the line matures in December 2018 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 and 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 - December 31, 2014

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

Capitalization Data
Total debt	$	5,109,817
Common stock and potentially dilutive securities
Common stock outstanding		63,683
Limited partnership units (1)		2,202
Options-treasury method		216
Total shares of common stock and potentially dilutive securities		66,101
Common stock price per share as of December 31, 2014	$	206.60
Market value of common stock and potentially dilutive securities	$	13,656,467
Preferred stock	$	73,750
Total equity capitalization	$	13,730,217
Total market capitalization	$	18,840,034
Ratio of debt to total market capitalization		27.1	%

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

Credit Ratings
Rating Agency	Rating	Outlook
Fitch	BBB+	Stable
Moody's	Baa2	Stable
Standard & Poors	BBB	Stable

Public Bond Covenants	Actual		Requirement
Debt to Total Assets:		39%	< 65%
Secured Debt to Total Assets:		17%	< 40%
Interest Coverage:		329%	> 150%
Unsecured Debt Ratio (1) :		288%	> 150%
Selected Credit Ratios	Actual
Net Indebtedness Divided by Adjusted EBITDA (2) (3):		6.5
Unencumbered NOI to Total NOI:		64%

(1) Unsecured Debt Ratio is unsecured assets (excluding investments in co-investments) divided by unsecured indebtedness.

(2) Net Indebtedness is total debt less unamortized premiums, unrestricted cash and cash equivalents, and marketable securities.

(3) Adjusted EBITDA annualizes the proforma NOI for current quarter acquisitions and excludes non-routine items in earnings.

See Company's 10-K and 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 December 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	$	68,430		$	64,584			6.0	%	$	56,646		$	51,409			10.2	%	$	29,542		$	27,550			7.2	%	$	-		$	-	$	154,618		$	143,543			7.7	%
Non-same property revenue (2)		5,169			3,208						8,981			3,774						4,170			559						6,748			4,902		25,068			12,443
Legacy BRE portfolio property revenue (3)		46,921			-						33,814			-						14,252			-						1,536			-		96,523			-
Total Revenues	$	120,520		$	67,792					$	99,441		$	55,183					$	47,964		$	28,109					$	8,284		$	4,902	$	276,209		$	155,986
Property operating expenses:
Same-property operating expenses
Real estate taxes	$	5,351		$	5,579					$	4,805			4,971					$	2,950			2,366					$	-		$	-	$	13,106		$	12,916			1.5	%
Administrative and insurance		6,084			5,887						3,179			3,096						2,005			1,941						-			-		11,268			10,924			3.1	%
Maintenance and repairs		5,002			4,626						3,163			3,175						2,126			1,826						-			-		10,291			9,627			6.9	%
Utilities		3,641			3,689						3,100			3,238						2,156			2,055						-			-		8,897			8,982			-0.9	%
Management fees		1,408			1,385						1,018			965						750			708						-			-		3,176			3,058			3.9	%
Total same-property operating expenses		21,486			21,166			1.5	%		15,265			15,445			-1.2	%		9,987			8,896			12.3	%		-			-		46,738			45,507			2.7	%
Non-same property operating expenses (2)		2,020			1,467						3,122			1,521						1,266			260						2,048			2,315		8,456			5,563
Legacy BRE portfolio property operating expenses (3)		16,709			-						11,106			-						4,452			-						591			-		32,858			-
Total property operating expenses	$	40,215		$	22,633					$	29,493		$	16,966					$	15,705		$	9,156					$	2,639		$	2,315	$	88,052		$	51,070
Net operating income (NOI):
Same-property NOI	$	46,944		$	43,418			8.1	%	$	41,381		$	35,964			15.1	%	$	19,555		$	18,654			4.8	%	$	-		$	-	$	107,880		$	98,036			10.0	%
Non-same property NOI (2)
Legacy BRE portfolio (3)		30,212			-						22,708			-						9,800			-						945			-		63,665			-
Redevelopment communities		1,392			1,270						-			-						-			-						-			-		1,392			1,270
Acquired communities - 2013 (4)		1,198			471						2,692			2,253						654			299						-			-		4,544			3,023
Acquired communities - 2014 (5)		559			-						3,167			-						2,250			-						-			-		5,976			-
Other real estate assets (1)		-			-						-			-						-			-						4,700			2,587		4,700			2,587
Total non-same property NOI		33,361			1,741						28,567			2,253						12,704			299						5,645			2,587		80,277			6,880
Total NOI	$	80,305		$	45,159					$	69,948		$	38,217					$	32,259		$	18,953					$	5,645		$	2,587	$	188,157		$	104,916
Annualized same-property turnover percentage		46	%		47	%					43	%		46	%					41	%		41	%										44	%		45	%
Average same-property concessions per turn (6)	$	149		$	106					$	195		$	205					$	148		$	149										$	163		$	145
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			13,855						9,998			9,431						7,395			6,703											31,224			29,989
Legacy BRE portfolio (3)		8,337			-						4,791			-						2,821			-						552			-		16,501			-
Joint venture (7)		4,957			1,870						3,249			783						1,958			1,157						-			-		10,164			3,810
Under development		184			492						2,284			2,289						-			-						-			-		2,468			2,781
Total apartment units at end of period		27,309			16,217						20,322			12,503						12,174			7,860						552			-		60,357			36,580
Percentage of total		45	%		45	%					34	%		34	%					20	%		21	%					1	%		-		100	%		100	%
Average same-property financial occupancy		96.4	%		96.3	%					96.3	%		96.1	%					95.8	%		95.9	%										96.3	%		96.2	%

(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, The Avery, 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-K and 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 - Years ended December 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	$	266,917			253,007			5.5	%	$	218,014			198,832			9.6	%	$	114,962			106,982			7.5	%	$	-		-	$	599,893		$	558,821			7.3	%
Non-same property revenue (2)(7)		18,970			10,057						23,947			13,335						10,652			571						26,409		19,219		79,978			43,182
Legacy BRE portfolio property revenue (3)		137,012			-						96,045			-						42,439			-						4,591		-		280,087			-
Total Revenues	$	422,899		$	263,064					$	338,006		$	212,167					$	168,053		$	107,553					$	31,000	$	19,219	$	959,958		$	602,003
Property operating expenses:
Same-property operating expenses
Real estate taxes	$	22,606			22,247					$	19,849			19,450					$	11,518			9,964					$	-		-	$	53,973		$	51,661			4.5	%
Administrative and insurance		23,661			23,362						12,346			12,331						7,845			7,778						-		-		43,852			43,471			0.9	%
Maintenance and repairs		18,725			17,771						12,631			12,394						7,543			7,159						-		-		38,899			37,324			4.2	%
Utilities		14,970			14,065						12,230			12,060						8,395			8,128						-		-		35,595			34,253			3.9	%
Management fees		5,628			5,534						4,047			3,833						3,001			2,827						-		-		12,676			12,194			4.0	%
Total same-property operating expenses		85,590			82,979			3.1	%		61,103			60,068			1.7	%		38,302			35,856			6.8	%		-		-		184,995			178,903			3.4	%
Non-same property operating expenses (2)(7)		8,003			4,528						8,426			5,400						3,368			290						8,572		6,891		28,369			17,109
Legacy BRE portfolio property operating expenses (3)		50,128			-						31,550			-						13,999			-						1,872		-		97,549			-
Total property operating expenses	$	143,721		$	87,507					$	101,079		$	65,468					$	55,669		$	36,146					$	10,444	$	6,891	$	310,913		$	196,012
Net operating income (NOI):
Same-property NOI	$	181,327		$	170,028			6.6	%	$	156,911		$	138,764			13.1	%	$	76,660		$	71,126			7.8	%	$	-	$	-	$	414,898		$	379,918			9.2	%
Non-same property NOI (2)
Legacy BRE portfolio (3)		86,884			-						64,495			-						28,440			-						2,719		-		182,538			-
Redevelopment communities		5,655			5,058						-			-						-			-						-		-		5,655			5,058
Acquired communities - 2013 (4)		4,299			471						10,356			7,935						2,327			281						-		-		16,982			8,687
Acquired communities - 2014 (5)		1,013			-						5,165			-						4,957			-										11,135			-
Other real estate assets (1)		-			-						-			-						-			-						17,837		12,328		17,837			12,328
Total non-same property NOI		97,851			5,529						80,016			7,935						35,724			281						20,556		12,328		234,147			26,073
Total NOI	$	279,178		$	175,557					$	236,927		$	146,699					$	112,384		$	71,407					$	20,556	$	12,328	$	649,045		$	405,991
Annual same-property turnover percentage		54	%		53	%					50	%		52	%					47	%		49	%									51	%		52	%
Average same-property concessions per turn (6)	$	118			110					$	160			149					$	108			100									$	128			120
Average same-property financial occupancy		96.3	%		96.1	%					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, The Avery, 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 year ended December 31, 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 year ended December 31, 2014, includes $1.9 million related to earthquake and flood damage at three communities.

See Company's 10-K and 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 December 31, 2014, December 31, 2013 and September 30, 2014

(Dollars in thousands, except average property rental rates)

			Average Property Rental Rates							Three months ended December 31, 2014					Three months ended December 31, 2013								Three months ended September 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	$	1,962	$	1,856		5.7	%	$	26,205		96.1	%	$	24,826		96.4	%		5.6	%	$	25,794		1.6	%
Ventura County		2,898		1,511		1,426		6.0	%		13,484		96.4	%		12,816		96.7	%		5.2	%		13,346		1.0	%
Orange County		2,887		1,983		1,871		6.0	%		17,346		96.5	%		16,289		95.8	%		6.5	%		17,055		1.7	%
San Diego County		2,067		1,340		1,261		6.3	%		8,630		96.6	%		8,093		95.9	%		6.6	%		8,509		1.4	%
Santa Barbara County		347		1,866		1,748		6.8	%		2,052		99.5	%		1,892		99.3	%		8.5	%		1,834		11.9	%
Riverside County		276		817		789		3.5	%		713		96.6	%		668		94.6	%		6.7	%		692		3.0	%
Total same-property		12,875		1,738		1,641		5.9	%		68,430		96.4	%		64,584		96.3	%		6.0	%		67,230		1.8	%
Los Angeles County		3,499		2,130							21,242					2,320
Orange County		2,899		1,710							15,125					-
San Diego County		2,895		1,809							15,723					888
Non-same property		9,293		1,899							52,090					3,208
Northern California
Santa Clara County		4,279		2,253		2,045		10.2	%		29,117		96.1	%		26,478		96.1	%		10.0	%		28,460		2.3	%
Contra Costa County		1,720		1,904		1,753		8.6	%		9,997		96.2	%		9,094		95.5	%		9.9	%		9,851		1.5	%
Alameda County		1,542		1,936		1,723		12.4	%		9,239		96.7	%		8,278		96.6	%		11.6	%		8,940		3.3	%
San Mateo County		768		2,324		2,112		10.0	%		5,508		96.7	%		5,004		96.5	%		10.1	%		5,386		2.3	%
San Francisco MSA		202		2,504		2,309		8.4	%		1,520		95.2	%		1,392		95.7	%		9.2	%		1,497		1.5	%
Other		230		1,784		1,670		6.8	%		1,265		98.2	%		1,163		96.5	%		8.8	%		1,243		1.8	%
Total same-property		8,741		2,128		1,933		10.1	%		56,646		96.3	%		51,409		96.1	%		10.2	%		55,377		2.3	%
Santa Clara County		1,595		2,580							12,151					-
Contra Costa County		550		2,096							3,543					-
Alameda County		1,596		2,270							10,969					-
San Mateo County		1,358		2,786							10,474					-
San Francisco MSA		778		2,795							4,380					3,774
Other		171		2,387							1,278					-
Non-same property		6,048		2,523							42,795					3,774
Seattle Metro
King County		6,072		1,457		1,359		7.2	%		27,949		95.8	%		26,115		95.9	%		7.0	%		27,554		1.4	%
Snohomish County		465		1,077		981		9.8	%		1,593		96.2	%		1,435		96.1	%		11.0	%		1,552		2.6	%
Total same-property		6,537		1,430		1,332		7.4	%		29,542		95.8	%		27,550		95.9	%		7.2	%		29,106		1.5	%
King County		3,171		1,599							15,894					559
Snohomish County		508		1,603							2,528					-
Non-same property		3,679		1,600							18,422					559
Other real estate assets (1)		552									8,284					4,902
Total same-property revenue		28,153	$	1,787	$	1,660		7.7	%	$	154,618		96.3	%	$	143,543		96.2	%		7.7	%	$	151,713		1.9	%
Total non-same property revenue		19,572	$	1,982						$	121,591				$	12,443

(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-K and 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 - Years ended December 31, 2014 and 2013

(Dollars in thousands, except average property rental rates)

										Year ended					Year ended
			Average Property Rental Rates							December 31, 2014					December 31, 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	$	1,915	$	1,824		5.0	%	$	102,361		96.2	%	$	97,266		96.2	%		5.2	%
Ventura County		2,898		1,478		1,403		5.3	%		53,030		96.5	%		50,373		96.6	%		5.3	%
Orange County		2,887		1,936		1,834		5.6	%		67,450		96.0	%		63,888		95.9	%		5.6	%
San Diego County		2,067		1,306		1,242		5.2	%		33,658		96.4	%		31,733		95.7	%		6.1	%
Santa Barbara County		347		1,801		1,703		5.8	%		7,658		97.2	%		7,193		95.7	%		6.5	%
Riverside County		276		804		797		0.9	%		2,760		95.9	%		2,554		91.0	%		8.1	%
Total same-property		12,875		1,697		1,613		5.2	%		266,917		96.3	%		253,007		96.1	%		5.5	%
Los Angeles County		3,499		2,096							63,009					9,169
Orange County		2,899		1,692							44,594					-
San Diego County		2,895		1,799							48,379					888
Non-same property		9,293		1,877							155,982					10,057
Northern California
Santa Clara County		4,279		2,168		1,984		9.3	%		112,109		96.1	%		102,434		96.0	%		9.4	%
Contra Costa County		1,720		1,837		1,701		8.0	%		38,598		96.3	%		35,578		96.2	%		8.5	%
Alameda County		1,542		1,844		1,651		11.7	%		35,402		96.9	%		31,823		96.7	%		11.2	%
San Mateo County		768		2,235		2,036		9.8	%		21,189		96.6	%		19,366		96.9	%		9.4	%
San Francisco MSA		202		2,439		2,209		10.4	%		5,827		94.7	%		5,148		92.6	%		13.2	%
Other		230		1,735		1,621		7.0	%		4,889		97.2	%		4,483		95.3	%		9.1	%
Total same-property		8,741		2,047		1,870		9.5	%		218,014		96.3	%		198,832		96.1	%		9.6	%
Santa Clara County		1,595		2,634							31,393					-
Contra Costa County		550		2,062							10,382					-
Alameda County		1,596		2,243							29,529					-
San Mateo County		1,358		2,755							28,363					-
San Francisco MSA		778		2,744							16,517					13,335
Other		171		2,373							3,808					-
Non-same property		6,048		2,513							119,992					13,335
Seattle Metro
King County		6,072		1,418		1,320		7.4	%		108,815		95.9	%		101,467		96.1	%		7.2	%
Snohomish County		465		1,033		954		8.3	%		6,147		96.6	%		5,515		95.1	%		11.5	%
Total same-property		6,537		1,390		1,294		7.4	%		114,962		96.0	%		106,982		96.1	%		7.5	%
King County		3,171		1,603							45,574					571
Snohomish County		508		1,587							7,517					-
Non-same property		3,679		1,601							53,091					571
Other real estate assets (1) (2)		552									31,000					19,219
Total same-property revenue		28,153	$	1,734	$	1,619		7.1	%	$	599,893		96.2	%	$	558,821		96.1	%		7.3	%
Total non-same property revenue		19,572	$	1,595						$	360,065				$	43,182

(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 year ended December 31, 2014, includes $1.8 million related to a change in accounting policy related to accrual of utility reimbursement revenue.

See Company's 10-K and 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 - December 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 (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	$	226	$	49	$	275	$	275		$	744
Radius	Redwood City, CA		100	%		264		-		163		9		172		172			652		Q2 2012		Q3 2014		Q1 2015
Total Development Projects - Consolidated						624		11,500		389		58		447		447			716
Land Held for Future Development - Consolidated
Project Name	Location
Other Projects	various		100	%		-		-		45		-		45		45
Total Development Pipeline - Consolidated						624		11,500		434		58		492		492
Development Projects/Land Held for Future Development - Joint Venture (2)
Project Name	Location
Epic - Phase III	San Jose, CA		55	%		200		-		64		33		97		53			483		Q3 2013		Q3 2015		Q1 2016
The Dylan	West Hollywood, CA		50	%		184		12,750		78		-		78		39			363		Q4 2011		Q3 2014		Q1 2015
Mosso II	San Francisco, CA		55	%		282		4,270		143		7		150		83			525		Q2 2012		Q3 2014		Q2 2015
Park 20	San Mateo, CA		55	%		197		-		74		3		77		42			391		Q3 2012		Q1 2015		Q3 2015
One South Market	San Jose, CA		55	%		312		6,000		120		25		145		80			458		Q2 2013		Q2 2015		Q2 2016
The Village	Walnut Creek, CA		50	%		49		35,000		60		29		89		45			834		Q3 2013		Q3 2015		Q4 2015
Emme	Emeryville, CA		55	%		190		-		62		-		62		34			328		Q3 2012		Q4 2014		Q2 2015
Owens	Pleasanton, CA		55	%		255		5,729		26		63		89		49			341		Q3 2014		Q2 2016		Q2 2017
Hacienda	Pleasanton, CA		55	%		251		-		16		70		86		47			343		Q1 2015		Q3 2016		Q3 2017
Century Towers	San Jose, CA		50	%		376		2,006		40		132		172		86			455		Q3 2014		Q1 2017		Q1 2018
Total Development Projects - Joint Venture						2,296		65,755		683		362		1,045		558		$	430
Grand Total - Development Pipeline						2,920		77,255	$	1,117	$	420	$	1,537		1,050
Essex Cost Incurred to Date																(800	)
Essex Remaining Commitment															$	250

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

(2) The Company share of cost included $4.6 million of capitalized interest, $1.3 million of capitalized overhead and $1.9 million of co-investment development fees related to development in Q4 2014.

(3) To date the Company has received $37 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-K and 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 - December 31, 2014

(Dollars in thousands, except per unit amounts)

			Total Incurred		Estimated Remaining		Estimated Total		Project		NOI For the year ended
Region/Project Name (1)	Units		To Date		Cost		Cost		Start Date		2014		2013
Same-property - Redevelopment Projects (2) (3)
Southern California
Hamptons		215	$	2,617	$	16,864	$	19,481		Q1 2014
Monterras		292		9,070		17,313		26,383		Q1 2014
Total Same-property - Redevelopment Projects		507	$	11,687	$	34,177	$	45,864			$	7,416	$	7,194
Same-Property Redevelopment Vacancy Loss											$	2,337	$	2,534
Non-same property - Redevelopment Projects
Southern California
Bunker Hill Towers, Los Angeles		456	$	13,942	$	62,202	$	76,144		Q3 2013
Total Non-same property - Redevelopment Projects		456	$	13,942	$	62,202	$	76,144			$	5,659	$	5,058

(1) The Company incurred $0.1 million of capitalized interest, $2 million of capitalized overhead and $0.1 million of co-investment redevelopment fees related to redevelopment in Q4 2014.

(2) Redevelopment activities are ongoing at these communities, but the communities have stabilized operations, therefore results are classified in same-property operations.

(3) The Company incurred $0.3 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 December 31, 2014.  The Company completed the redevelopment of interiors totaling 254 units for the redevelopment-related same-property portfolio and 353 units for the total portfolio, during the three months ended December 31, 2014.

Non-revenue Generating Capital Expenditures		Q4 2014		Q3 2014		Q2 2014		Q1 2014		Q4 2013		Q3 2013
Non-revenue generating capital expenditures	$	14,632	$	14,022	$	10,623	$	4,416	$	5,153	$	9,536
Average apartment units in quarter		43,122		38,702		34,158		29,886		29,833		29,646
Capital expenditures per apartment unit in the quarter	$	339	$	362	$	311	$	148	$	173	$	322
Capital expenditures per apartment unit-trailing four quarters	$	1,013	$	884	$	870	$	918	$	906	$	1,235

See Company's 10-K and 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 - December 31, 2014

(Dollars in thousands)	Essex Ownership					Total Undepreciated		Debt		Essex Book		Weighted Average Borrowing			Remaining Term of Debt/		For the Quarter Ended December 31,						For the Year Ended December 31,
	Percentage			Units		Book Value		Amount		Value		Rate			(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	%		-	$	-	$	-	$	696		0.0	%		-	$	26		$	611		$	1,563		$	2,375
Wesco I, LLC		50.0	%		2,713		682,414		364,000		136,170		4.0	%		8.6		9,756			8,412			36,930			33,236
Wesco III, LLC		50.0	%		993		230,726		120,079		52,234		3.6	%		5.9		3,240			1,895			11,093			5,776
Wesco IV, LLC		50.0	%		1,116		297,892		155,000		86,289		3.8	%		6.2		4,014			-			11,677			-
BEXAEW, LLC		50.0	%		2,723		519,156		321,894		73,771		3.0	%		6.2		7,489			-			21,991			-
CPPIB		55.0	%		878		254,567		-		169,621		-			-		3,811			-			12,803			-
Palm Valley (2)		50.0	%		1,098		370,832		235,111		70,186		2.3	%		2.1		3,306			-			3,306			-
Other (3)		50.0	%		462		137,558		105,535		18,823		3.0	%		5.7		1,955			1,197			6,449			3,724
Total Operating Non-Consolidated Joint Ventures					9,983	$	2,493,145	$	1,301,619	$	607,790		3.3	%		5.7	$	33,597		$	12,115		$	105,812		$	45,111
Development Non-Consolidated Joint Ventures (3) (4)		50/55	%		2,296		683,000		110,710		319,930		1.7	%		18.2		1,034			373			1,769			47
					12,279	$	3,176,145	$	1,412,329	$	927,720						$	34,631		$	12,488		$	107,581		$	45,158
																	Essex Portion of NOI and Expenses
NOI																	$	17,541		$	6,130		$	54,172		$	22,064
Depreciation																		(10,915	)		(4,351	)		(33,975	)		(15,748	)
Interest expense and other																		(5,848	)		(1,765	)		(17,841	)		(5,480	)
Gain on sale of co-investments																		3,347			-			6,558			38,752
Promote income																		5,736			-			10,640			-
Net income from operating co-investments																	$	9,861		$	14		$	19,554		$	39,588

			Weighted Average Preferred Return			Weighted Average Expected Term
								Income from Preferred Equity Investments
Income from preferred equity investments									3,717		3,556		15,089		14,919
Income from early redemption of preferred equity investments									5,250		-		5,250		1,358
Preferred Equity Investments (5)		108,691		10.2	%		3.1	$	8,967	$	3,556	$	20,339	$	16,277
Total Co-investments	$	1,036,411						$	18,828	$	3,570	$	39,893	$	55,865

(1) The Company has a 28.2% interest as a general partner and limited partner in Fund II.  There are no properties remaining in the Fund at year end.

(2) The Company acquired its interest in Palm Valley effective October 31, 2014. The undepreciated book value represents the full valuation of the property at the time of acquisition.

(3) The Huxley and Dylan have $110.7 million long-term tax-exempt bond debt that is subject to a total return swap that will mature in 2016.

(4) The Company has interests in ten development co-investments, which are detailed on S-9.

(5) As of December 31, 2014 the Company has invested in eight preferred equity investments.

See Company's 10-K and 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 - December 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:

	Balance as of December 31, 2014								Operations for the year ended December 31, 2014
	Investment in Real Estate		Related Debt		Noncontrolling Interest		DownREIT Units Outstanding (1)		Revenue		Operating Expenses		NOI
Noncontrolling Interest - DownREIT:
Barkley Apartments	$	8,179	$	16,269	$	1,696		74,248	$	2,772	$	959	$	1,813
Avery (2)		36,099		10,000		2,568		58,884		1,870		857		1,013
Brookside Oaks		31,303		19,312		2,183		78,903		4,306		824		3,482
Capri at Sunny Hills		15,279		-		2,927		157,665		2,609		785		1,824
Hidden Valley (3)		35,981		30,053		6,089		62,647		5,794		1,799		3,995
Highridge Apartments		29,232		44,807		2,692		257,368		7,256		1,548		5,708
Montejo Apartments		7,553		12,811		1,216		29,319		1,993		537		1,456
The Elliot at Mukilteo		14,536		-		1,197		99,438		3,879		1,346		2,533
Magnolia Square		36,351		17,781		6,101		54,938		4,192		1,028		3,164
Fairhaven Apartments		12,024		16,625		2,951		67,728		2,827		772		2,055
	$	226,537	$	167,658		29,620		941,138	$	37,498	$	10,455	$	27,043
Other Components of Noncontrolling Interest:
Hillsdale Garden Apartments (4)	$	102,691				22,470			$	19,119	$	5,630	$	13,489
Operating Partnership Units and Other						61,306
Total Noncontrolling Interest					$	113,396

(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-K and 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 2015 FFO Guidance Range

($'s in thousands, except share and per share data)	YTD			2015 Guidance Range
	Actuals			Low End			High End
Net Operating Income ("NOI")
Total NOI from consolidated communities	$	649,139		$	782,800		$	793,700
Accretion from external growth, net of dispositions		-			-			1,000
Management Fees		8,847			8,400			9,400
Interest Expense
Interest expense, before capitalized interest		(187,065	)		(212,600	)		(209,600	)
Projected interest capitalized		22,514			14,200			16,200
Net interest expense		(164,551	)		(198,400	)		(193,400	)
Recurring Income and Expenses
Interest and other income		10,925			13,100			14,100
FFO from co-investments		51,613			68,600			71,500
General and administrative expense		(38,868	)		(43,000	)		(45,000	)
Preferred dividends and non-controlling interest		(13,944	)		(14,500	)		(14,300	)
Total recurring income and expenses		9,726			24,200			26,300
Non-Core Income and Expenses
Promote income from co-investment		10,640			-			-
Gains on sales of marketable securities and land		3,419			-			-
Income from early redemption of preferred equity investment		5,250			-			-
Loss on early retirement of debt		(268	)		-			-
Merger and integration expenses		(53,530	)		(7,500	)		(5,500	)
Cyber-intrusion expenses		(2,849	)		(1,000	)		(500	)
Acquisition costs		(1,878	)		(1,000	)		(1,500	)
Other non-core adjustments		997			-			-
Total non-core income and expenses		(38,219	)		(9,500	)		(7,500	)
Funds from Operations	$	464,942		$	607,500		$	629,500
Funds from Operations per diluted Share	$	7.89		$	9.11		$	9.44
% Change - Funds from Operations		4.0	%		15.4	%		19.6	%
Funds from Operations excluding non-core items	$	503,161		$	617,000		$	637,000
Core Funds from Operations per diluted Share	$	8.54		$	9.25		$	9.55
% Change - Core Funds from Operations		12.4	%		8.3	%		11.8	%
Weighted average shares outstanding		58,921			66,700			66,700

See Company's 10-K and 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

Year ended December 31, 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		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		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		887							319,750		360
Palm Valley (2)	San Jose, CA		1,098		50	%	JV	Oct-14		180,000		328		2,179
	Q4 2014		1,098							180,000		328
	2014 Total		2,578						$	640,700	$	318

Dispositions				Essex
				Ownership					Sales		Price per
Property Name	Location	Units		Percentage			Entity	Date	Price		Unit
Vista Capri	San Diego, CA		106		100	%	EPLP	Jan-14	$	14,350	$	135
Davey Glen	Belmont, CA		69		28.2	%	Fund II	Mar-14		23,750		344
	Q1 2014		175							38,100		218
Pinnacle at Queen's Creek	Chandler, AZ		252		35.0	%	JV	Jun-14		33,300		132
	Q2 2014		252							33,300		132
Coldwater Canyon	Studio City, CA		39		100	%	EPLP	Sep-14		9,525		244
Mt. Sutro	San Francisco, CA		99		100	%	EPLP	Sep-14		39,500		399
	Q3 2014		138							49,025		355
Alderwood Park	Newark, CA		96		28.2	%	Fund II	Oct-14		23,500		245
Pinnacle Town Center	Phoenix, AZ		350		100	%	EPLP	Dec-14		57,000		163
	Q4 2014		446							80,500		180
	2014 Total		1,011						$	200,925	$	199

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

(2) Palm Valley purchase price represents ESS Share.

See Company's 10-K and 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.

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-K and 10-Q for additional disclosures

 Fourth Quarter 2014Earnings Release & Supplemental Financial Information   Investor Relations Contact:Barb PakDirector of Investor Relations (650) 494-3700  Essex Property Trust, Inc.925 East Meadow Drive Palo Alto, CA 94303(650) 494-3700  MossoSan Francisco, CA463 UnitsIn Lease-Up 

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