ESSEX PROPERTY TRUST, INC. - FORM 8-K - EX-99.2 - EXHIBIT 99.2 - August 1, 2013

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8-K - ESSEX PROPERTY TRUST INC 8-K 6-30-2013 - ESSEX PROPERTY TRUST, INC.form8k.htm
EX-99.1 - EXHIBIT 99.1 - ESSEX PROPERTY TRUST, INC.ex99_1.htm
Exhibit 99.2
 
Q2 2013 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 – June 30, 2013
S-5
Capitalization Data, Public Bond Covenants, Credit Ratings, and Selected Debt Ratios – June 30, 2013
S-6
Property Operating Results – Quarters ended June 30, 2013 and 2012
S-7
Property Operating Results – Six months ended June 30, 2013 and 2012
S-7.1
Revenue by County – Quarters ended June 30, 2013, June 30, 2012 and March 31, 2013
S-8
Revenue by County – Six months ended June 30, 2013 and June 30, 2012
S-8.1
Development Pipeline – June 30, 2013
S-9
Redevelopment Pipeline and Capital Expenditures – June 30, 2013
S-10
Co-Investments – June 30, 2013
S-11
Summary of Consolidated Co-Investments and Noncontrolling Interest – June 30, 2013
S-12
Income From Discontinued Operations and Selected Financial Data – June 30, 2013
S-13
Assumptions for 2013 FFO Guidance Range
S-14
Summary of Apartment Community Acquisitions and Dispositions Activity
S-15
2013 MSA Level Forecasts: Supply, Jobs and Apartment Market Conditions
S-16
Exhibit A - Property List by Region
1 - 3

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
    
Six Months Ended
  
(Dollars in thousands, except per share amounts)
  
June 30,
    
June 30,
  
 
  
2013
    
2012
    
2013
    
2012
  
 
  
   
   
   
 
Revenues:
  
   
   
   
 
Rental and other property
  
$
150,170
    
$
129,765
    
$
296,565
    
$
255,238
  
Management and other fees
    
3,234
      
2,796
      
6,182
      
5,240
  
 
    
153,404
      
132,561
      
302,747
      
260,478
  
 
                                
Expenses:
                                
Property operating
    
48,737
      
42,417
      
95,501
      
82,582
  
Depreciation
    
48,031
      
41,801
      
95,175
      
82,535
  
General and administrative
    
6,224
      
5,764
      
12,850
      
11,164
  
Cost of management and other fees
    
1,733
      
1,611
      
3,434
      
3,251
  
 
    
104,725
      
91,593
      
206,960
      
179,532
  
Earnings from operations
    
48,679
      
40,968
      
95,787
      
80,946
  
 
                                
Interest expense before amortization
    
(26,325
)
    
(24,659
)
    
(51,536
)
    
(49,316
)
Amortization expense
    
(3,002
)
    
(2,882
)
    
(5,932
)
    
(5,754
)
Interest and other income
    
1,917
      
5,455
      
6,939
      
7,868
  
Equity income from co-investments
    
7,282
      
3,111
      
11,493
      
5,451
  
Gain (loss) on early retirement of debt
    
1,024
      
(1,450
)
    
1,024
      
(1,450
)
Gain on sale of land
    
-
      
-
      
1,503
      
-
  
Gain on remeasurement of co-investment
    
-
      
21,947
      
-
      
21,947
  
Income before discontinued operations
    
29,575
      
42,490
      
59,278
      
59,692
  
Income from discontinued operations
    
-
      
-
      
-
      
10,037
  
Net income
    
29,575
      
42,490
      
59,278
      
69,729
  
Net income attributable to noncontrolling interest
    
(3,261
)
    
(4,044
)
    
(6,393
)
    
(7,193
)
Net income attributable to controlling interest
    
26,314
      
38,446
      
52,885
      
62,536
  
Dividends to preferred stockholders
    
(1,368
)
    
(1,368
)
    
(2,736
)
    
(2,736
)
Net income available to common stockholders
  
$
24,946
    
$
37,078
    
$
50,149
    
$
59,800
  
 
                                
Net income per share - basic
  
$
0.67
    
$
1.07
    
$
1.35
    
$
1.74
  
 
                                
Net income per share - diluted
  
$
0.67
    
$
1.07
    
$
1.35
    
$
1.74
  


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
    
Six Months Ended
  
Selected Line Item Detail
  
June 30,
    
June 30,
  
(Dollars in thousands)
  
2013
    
2012
    
2013
    
2012
  
 
  
   
   
   
 
Rental and other property
  
   
   
   
 
Rental
  
$
139,996
    
$
120,861
    
$
276,730
    
$
237,655
  
Other property
    
10,174
      
8,904
      
19,835
      
17,583
  
Rental and other property
  
$
150,170
    
$
129,765
    
$
296,565
    
$
255,238
  
 
                                
Management and other fees
                                
Management
  
$
2,034
    
$
2,048
    
$
4,041
    
$
4,039
  
Development and redevelopment
    
1,200
      
748
      
2,141
      
1,201
  
Management and other fees
  
$
3,234
    
$
2,796
    
$
6,182
    
$
5,240
  
 
                                
Property operating expenses
                                
Real estate taxes
  
$
14,248
    
$
11,699
    
$
28,404
    
$
23,112
  
Administrative and insurance
    
11,239
      
10,489
      
21,893
      
20,039
  
Maintenance and repairs
    
10,490
      
8,958
      
19,938
      
16,923
  
Utilities
    
9,224
      
8,141
      
18,253
      
16,218
  
Property management
    
3,536
      
3,130
      
7,013
      
6,290
  
Property operating expenses
  
$
48,737
    
$
42,417
    
$
95,501
    
$
82,582
  
 
                                
General and administrative
                                
General and administrative
  
$
13,205
    
$
12,053
    
$
26,587
    
$
23,648
  
Allocated to cost of management and other fees
    
(1,733
)
    
(1,611
)
    
(3,434
)
    
(3,251
)
Allocated to property operating expenses - administrative
    
(3,536
)
    
(3,130
)
    
(7,013
)
    
(6,290
)
Capitalized to real estate
    
(1,712
)
    
(1,548
)
    
(3,290
)
    
(2,943
)
Net general and administrative
  
$
6,224
    
$
5,764
    
$
12,850
    
$
11,164
  
 
                                
Interest and other income
                                
Marketable securities and other interest income
  
$
1,863
    
$
1,652
    
$
3,487
    
$
3,152
  
Notes receivable
    
54
      
983
      
841
      
1,896
  
Gain from sale of marketable securities and note prepayment
    
-
      
521
      
2,611
      
521
  
Co-investment promote fee
    
-
      
2,299
      
-
      
2,299
  
Interest and other income
  
$
1,917
    
$
5,455
    
$
6,939
    
$
7,868
  
 
                                
Equity income from co-investments
                                
Equity income (loss) from co-investments
  
$
586
    
$
(113
)
  
$
545
    
$
(1,029
)
Income from preferred equity investments
    
3,807
      
3,224
      
7,636
      
6,480
  
Gain on sale of co-investment
    
2,366
      
-
      
2,366
      
-
  
Income from early redemption of preferred equity investments
    
523
      
-
      
946
      
-
  
Equity income from co-investments
  
$
7,282
    
$
3,111
    
$
11,493
    
$
5,451
  
 
                                
Noncontrolling interest
                                
Limited partners of Essex Portfolio, L.P.
  
$
1,547
    
$
2,502
    
$
3,048
    
$
4,092
  
DownREIT limited partners' distributions
    
1,169
      
1,099
      
2,344
      
2,198
  
Third-party ownership interest
    
545
      
443
      
1,001
      
903
  
Noncontrolling interest
  
$
3,261
    
$
4,044
    
$
6,393
    
$
7,193
  
 

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
  
Three Months Ended
    
   
Six Months Ended
    
 
(Dollars in thousands, except share and per share amounts)
  
June 30,
    
   
June 30,
    
 
 
  
2013
    
2012
    
% Change
    
2013
    
2012
    
% Change
  
 
  
   
   
   
   
   
 
Funds from operations
  
   
   
   
   
   
 
Net income available to common stockholders
  
$
24,946
    
$
37,078
    
   
$
50,149
    
$
59,800
    
 
Adjustments:
                  
                   
 
Depreciation
    
48,031
      
41,801
    
     
95,175
      
82,628
    
 
Gains not included in FFO, net of internal disposition costs
    
(2,366
)
    
(21,947
)
  
     
(2,366
)
    
(31,730
)
  
 
Depreciation add back from unconsolidated co-investments, and add back convertible preferred dividend - Series G
    
3,777
      
3,366
    
     
7,619
      
7,750
    
 
Noncontrolling interest related to Operating Partnership units
    
1,547
      
2,502
    
     
3,048
      
4,092
    
 
Depreciation attributable to noncontrolling interest
    
(327
)
    
(303
)
  
     
(654
)
    
(592
)
  
 
Funds from operations
  
$
75,608
    
$
62,497
    
   
$
152,971
    
$
121,948
    
 
FFO per share-diluted
  
$
1.91
    
$
1.69
      
12.9
%
  
$
3.88
    
$
3.33
      
16.8
%
 
                                                
Components of the change in FFO
                                                
Non-core items:
                                                
(Gain) Loss on early retirement of debt
    
(1,024
)
    
1,450
              
(1,024
)
    
1,450
          
Income from early redemption of preferred equity investments
    
(523
)
    
-
              
(946
)
    
-
          
Acquisition costs
    
168
      
312
              
555
      
498
          
Gain on sales of marketable securities and note prepayment
    
-
      
(521
)
            
(2,611
)
    
(521
)
        
Gain on sale of land
    
-
      
-
              
(1,503
)
    
-
          
Co-investment promote income
    
-
      
(2,299
)
            
-
      
(2,299
)
        
Core funds from operations
    
74,229
      
61,439
              
147,442
      
121,076
          
Core FFO per share-diluted
  
$
1.88
    
$
1.66
      
12.8
%
  
$
3.74
    
$
3.30
      
13.4
%
 
                                                
Changes in core items:
                                                
Same-property NOI
  
$
5,822
                    
$
10,880
                  
Non-same property NOI
    
8,263
                      
17,528
                  
Management and other fees, net
    
316
                      
759
                  
Equity income from co-investments
    
1,693
                      
2,599
                  
Interest and other income
    
(718
)
                    
(720
)
                
Interest and amortization expense
    
(1,786
)
                    
(2,398
)
                
General and administrative
    
(604
)
                    
(1,629
)
                
Discontinued operations
    
-
                      
(348
)
                
Other items, net
    
(196
)
                    
(305
)
                
 
  
$
12,790
                    
$
26,366
                  
 
                                                
Weighted average number of shares outstanding diluted (1)
    
39,576,663
      
36,947,477
              
39,391,820
      
36,672,683
          
 
(1)
Assumes conversion of the weighted average Operating Partnership interests in the Operating Partnership into shares of the Companys' 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)
  
   
 
 
  
June 30, 2013
    
December 31, 2012
  
 
  
   
 
Real Estate:
  
   
 
Land and land improvements
  
$
1,054,178
    
$
1,003,171
  
Buildings and improvements
    
4,194,092
      
4,030,501
  
 
    
5,248,270
      
5,033,672
  
Less:  accumulated depreciation
    
(1,173,333
)
    
(1,081,517
)
 
    
4,074,937
      
3,952,155
  
Real estate under development
    
70,242
      
66,851
  
Co-investments
    
618,259
      
571,345
  
 
    
4,763,438
      
4,590,351
  
Cash and cash equivalents
    
45,384
      
42,126
  
Marketable securities
    
88,734
      
92,713
  
Notes and other receivables
    
110,544
      
66,163
  
Other assets
    
50,898
      
55,870
  
Total assets
  
$
5,058,998
    
$
4,847,223
  
 
                
Mortgage notes payable
  
$
1,511,502
    
$
1,565,599
  
Unsecured debt
    
1,409,744
      
1,112,084
  
Lines of credit
    
4,370
      
141,000
  
Other liabilities
    
157,061
      
137,469
  
Derivative liabilities
    
1,928
      
6,606
  
Total liabilities
    
3,084,605
      
2,962,758
  
 
                
Cumulative convertible preferred stock, carrying value
    
4,349
      
4,349
  
 
                
Equity:
                
Common stock
    
3
      
3
  
Cumulative redeemable preferred stock, liquidation value
    
73,750
      
73,750
  
Additional paid-in-capital
    
2,331,830
      
2,204,778
  
Distributions in excess of accumulated earnings
    
(484,615
)
    
(444,466
)
Accumulated other comprehensive loss
    
(62,813
)
    
(69,261
)
Total stockholders' equity
    
1,858,155
      
1,764,804
  
Noncontrolling interest
    
111,889
      
115,312
  
Total equity
    
1,970,044
      
1,880,116
  
 
                
Total liabilities and equity
  
$
5,058,998
    
$
4,847,223
  
 

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 - June 30, 2013
(Dollars in thousands)

                             
 
  
   
   
   
   
Scheduled principal payments (excludes lines of credit)
  
 
  
   
   
   
   
   
   
   
   
   
 
 
  
Percentage
    
   
Weighted Average
    
   
   
   
   
Weighted
    
Percentage
  
 
  
of Total
    
Balance
    
Interest
    
Maturity
    
   
Balance Outstanding
    
Average Interest
    
of Total
  
 
  
Debt
    
Outstanding
    
Rate
    
In Years
    
   
Secured
    
Unsecured
    
Total
    
Rate
    
Debt
  
Mortgage Notes Payable
  
   
   
   
   
   
   
   
   
   
 
Fixed rate - secured
    
45
%
  
$
1,324,194
      
6.0
%
    
5.4
      
2013
    
$
29,572
    
$
-
    
$
29,572
      
4.0
%
    
1.0
%
Variable rate - secured (1)
    
6
%
    
187,308
      
1.6
%
    
18.3
      
2014
      
47,450
      
-
      
47,450
      
5.2
%
    
1.6
%
Total mortgage notes payable
    
51
%
    
1,511,502
      
5.5
%
    
7.0
      
2015
      
68,198
      
-
      
68,198
      
5.2
%
    
2.3
%
 
                                    
2016
      
12,524
      
350,000
      
362,524
      
3.5
%
    
12.4
%
Unsecured Debt
                                    
2017
      
184,021
      
190,000
      
374,021
      
4.4
%
    
12.8
%
Bonds private - fixed rate
    
16
%
    
465,000
      
4.5
%
    
5.7
      
2018
      
292,522
      
-
      
292,522
      
5.8
%
    
10.0
%
Bonds public - fixed rate
    
20
%
    
594,744
      
3.6
%
    
9.5
      
2019
      
258,603
      
75,000
      
333,603
      
5.6
%
    
11.4
%
Term loan (2)
    
12
%
    
350,000
      
2.6
%
    
3.7
      
2020
      
402,676
      
-
      
402,676
      
6.5
%
    
13.8
%
 
    
48
%
    
1,409,744
      
3.6
%
    
6.8
      
2021
      
48,047
      
200,000
      
248,047
      
5.0
%
    
8.5
%
Unsecured Lines of Credit
                                    
2022
      
-
      
297,159
      
297,159
      
3.8
%
    
10.2
%
Line of credit (3)
    
-
      
-
      
-
              
2023
      
-
      
297,585
      
297,585
      
3.4
%
    
10.2
%
Line of credit (4)
    
1
%
    
4,370
      
2.3
%
          
Thereafter
      
167,889
      
-
      
167,889
      
1.7
%
    
5.8
%
Total lines of credit
    
1
%
    
4,370
      
2.3
%
                                                        
 
                                  
Total
    
$
1,511,502
    
$
1,409,744
    
$
2,921,246
      
4.6
%
    
100.0
%
Total debt
    
100
%
  
$
2,925,616
      
4.6
%
                                                        
                                                                               

Capitalized interest for the three months and six months ended June 30, 2013 was approximately $4.4 million and $8.1 million, respectively.

(1) This variable rate debt is tax exempt to the note holders and is subject to interest rate protection agreements.
(2) The unsecured term loan has a variable interest rate of LIBOR plus 1.20%.  The Company has entered into interest rate swap contracts for a term of five years 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 2.29%.
(3) The unsecured line of credit facility is $600 million and the line matures in December 2015 with two one-year extensions, 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 1.075%.
(4) The unsecured line of credit facility is $25 million and matures in January 2014 with a one-year 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 1.075%.
 

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 - June 30, 2013
(Dollars and shares in thousands, except per share amounts)

                 
Capitalization Data
 
 
 
Public Bond Covenants
 
Actual
 
Requirement
 
Total debt
$
2,925,616
 
 
 
 
 
 
 
 
 
 
 
Debt to Total Assets:
 
47%
 
< 65%
 
Common stock and potentially dilutive securities
 
 
 
 
 
 
 
 
 
Common stock outstanding
 
37,318
 
 
 
 
 
 
 
Limited partnership units (1)
 
2,148
 
 
 
 
 
 
 
Options-treasury method
 
163
 
Secured Debt to Total Assets:
 
24%
 
< 40%
 
Total share of common stock and potentially dilutive securities
 
39,629
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Common stock price per share as of June 28, 2013
$
158.92
 
 
 
 
 
 
 
 
 
 
 
Interest Coverage:
 
338%
 
> 150%
 
Market value of common stock and potentially dilutive securities
$
6,297,841
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Preferred stock
$
73,079
 
Unsecured Debt Ratio (1) :
 
246%
 
> 150%
 
 
 
 
 
 
 
 
 
 
 
Total equity capitalization
$
6,370,920
 
 
 
 
 
 
 
 
 
 
 
Selected Credit Ratios
 
Actual
 
 
 
Total market capitalization
$
9,296,536
 
 
 
 
 
 
 
Ratio of debt to total market capitalization
 
31.5%
 
Indebtedness Divided by Adjusted EBITDA (2):
 
7.0x
 
 
 
 
 
 
 
 
 
 
 
 
 
(1)   Assumes conversion of all outstanding operating partnership interests in the Operating Partnership into shares of the Company's common stock.
  
Unencumbered NOI to Total NOI:
 
58%
 
 
 
   
Credit Ratings
 
 
 
 
(1)   Unsecured Debt Ratio is unsecured assets (excluding investments in co-investments) divided by unsecured indebtedness.
Rating Agency
 
Rating
Outlook
 
(2)   Adjusted EBITDA is annualized current quarter NOI adjusted for non-recurring items and proforma NOI for current quarter acquisitions.
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 June 30, 2013 and 2012
(Dollars in thousands, except per unit amounts)

 
  
Southern California
    
Northern California
    
Seattle Metro
    
Other real estate assets (1)
    
Total
  
 
  
2013
    
2012
    
% Change
    
2013
    
2012
    
% Change
    
2013
    
2012
    
% Change
    
2013
    
2012
    
2013
    
2012
    
% Change
  
 
  
   
   
   
   
   
   
   
   
   
   
   
   
   
 
Revenues:
  
   
   
   
   
   
   
   
   
   
   
   
   
   
 
Same-property revenue
  
$
61,299
    
$
58,805
      
4.2
%
  
$
45,460
    
$
42,128
      
7.9
%
  
$
23,615
    
$
21,903
      
7.8
%
  
$
-
    
$
-
    
$
130,374
    
$
122,836
      
6.1
%
Non-same property revenue (2)
    
4,933
      
2,551
              
7,629
      
442
              
3,466
      
765
              
3,768
      
3,171
      
19,796
      
6,929
          
Total Revenues
  
$
66,232
    
$
61,356
            
$
53,089
    
$
42,570
            
$
27,081
    
$
22,668
            
$
3,768
    
$
3,171
    
$
150,170
    
$
129,765
          
 
                                                                                                                
Property operating expenses:
                                                                                                                
Same-property operating expenses
                                                                                                                
Real estate taxes
  
$
5,147
    
$
5,049
            
$
4,207
    
$
4,010
            
$
2,255
    
$
1,860
            
$
-
    
$
-
    
$
11,609
    
$
10,919
      
6.3
%
Administrative and insurance
    
5,387
      
5,305
              
2,884
      
2,879
              
1,776
      
1,798
              
-
      
-
      
10,047
      
9,982
      
0.7
%
Maintenance and repairs
    
4,319
      
4,096
              
2,906
      
2,738
              
1,704
      
1,556
              
-
      
-
      
8,929
      
8,390
      
6.4
%
Utilities
    
3,617
      
3,421
              
2,804
      
2,658
              
1,752
      
1,685
              
-
      
-
      
8,173
      
7,764
      
5.3
%
Management fees
    
1,405
      
1,410
              
899
      
881
              
634
      
634
              
-
      
-
      
2,938
      
2,925
      
0.4
%
Total same-property operating expenses
    
19,875
      
19,281
      
3.1
%
    
13,700
      
13,166
      
4.1
%
    
8,121
      
7,533
      
7.8
%
    
-
      
-
    
$
41,696
    
$
39,980
      
4.3
%
Non-same property operating expenses (2)
    
1,893
      
969
              
2,927
      
178
              
1,168
      
294
              
1,053
      
996
      
7,041
      
2,437
          
Total property operating expenses
  
$
21,768
    
$
20,250
            
$
16,627
    
$
13,344
            
$
9,289
    
$
7,827
            
$
1,053
    
$
996
    
$
48,737
    
$
42,417
          
 
                                                                                                                
Net operating income (NOI):
                                                                                                                
Same-property NOI
  
$
41,424
    
$
39,524
      
4.8
%
  
$
31,760
    
$
28,962
      
9.7
%
  
$
15,494
    
$
14,370
      
7.8
%
  
$
-
    
$
-
    
$
88,678
    
$
82,856
      
7.0
%
Non-same property NOI (2)
                                                                                                                
Redevelopment communities
    
-
      
-
              
-
      
-
              
754
      
471
              
-
      
-
      
754
      
471
          
Acquired communities - 2013 (3)
    
-
      
-
              
1,221
      
-
              
183
      
-
              
-
      
-
      
1,404
      
-
          
Acquired communities - 2012 (4)
    
3,040
      
1,582
              
3,481
      
264
              
1,361
      
-
                              
7,882
      
1,846
          
Other real estate assets (1)
    
-
      
-
              
-
      
-
              
-
      
-
              
2,715
      
2,175
      
2,715
      
2,175
          
Total non-same property NOI
    
3,040
      
1,582
              
4,702
      
264
              
2,298
      
471
              
2,715
      
2,175
      
12,755
      
4,492
          
Total NOI
  
$
44,464
    
$
41,106
            
$
36,462
    
$
29,226
            
$
17,792
    
$
14,841
            
$
2,715
    
$
2,175
    
$
101,433
    
$
87,348
          
 
                                                                                                                
Same-property operating margin
    
68
%
    
67
%
            
70
%
    
69
%
            
66
%
    
66
%
                            
68
%
    
67
%
        
Annualized same-property turnover percentage
    
55
%
    
57
%
            
55
%
    
55
%
            
57
%
    
50
%
                            
56
%
    
54
%
        
Average same-property concessions per turn (5)
  
$
90
    
$
125
            
$
117
    
$
120
            
$
72
    
$
106
                            
$
94
    
$
119
          
 
                                                                                                                
Reconciliation of apartment units at end of period
                                                                                                                
Same-property apartment units
    
12,941
                      
8,106
                      
5,932
                                      
26,979
                  
Consolidated apartment units
    
13,656
      
13,656
              
9,431
      
8,206
              
6,720
      
6,168
                              
29,807
      
28,030
          
Joint venture
    
2,039
      
1,560
              
1,378
      
1,895
              
1,290
      
1,530
                              
4,707
      
4,985
          
Under development
    
492
      
492
              
1,728
      
1,728
              
-
      
275
                              
2,220
      
2,495
          
Total apartment units at end of period
    
16,187
      
15,708
              
12,537
      
11,829
              
8,010
      
7,973
                              
36,734
      
35,510
          
Percentage of total
    
44
%
    
45
%
            
34
%
    
33
%
            
22
%
    
22
%
                            
100
%
    
100
%
        
 
                                                                                                                
Average same-property financial occupancy
    
95.8
%
    
96.0
%
            
96.4
%
    
96.8
%
            
96.0
%
    
96.2
%
                            
96.0
%
    
96.3
%
        

(1) Other real estate assets consists mainly of retail space, commercial properties, and boat slips and their operating results are classified in non-same property results.
(2) Includes properties which subsequent to January 1, 2012 were either acquired or in a stage of development or redevelopment without stabilized operations.
(3) Acquired communities during 2013 includes Annaliese and Fox Plaza.
(4) Acquired communities during 2012 includes Reed Square, Essex Skyline at MacArthur Place, Park Catalina, The Huntington, Montebello, Park West, Domaine, Ascent, Willow Lake, and Bennett Lofts.
(5) Average same-property concessions per turn is the dollar amount per unit resulting from the same-property concessions divided by the product of the same property turnover percentage for the quarter times the same-property apartment units.
 

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 - Six Months ended June 30, 2013 and 2012
(Dollars in thousands, except per unit amounts)

 
  
Southern California
    
Northern California
    
Seattle Metro
    
Other real estate assets (1)
    
Total
  
 
  
2013
    
2012
    
% Change
    
2013
    
2012
    
% Change
    
2013
    
2012
    
% Change
    
2013
    
2012
    
2013
    
2012
    
% Change
  
 
  
   
   
   
   
   
   
   
   
   
   
   
   
   
 
Revenues:
  
   
   
   
   
   
   
   
   
   
   
   
   
   
 
Same-property revenue
  
$
122,288
    
$
117,365
      
4.2
%
  
$
89,996
    
$
83,464
      
7.8
%
  
$
46,660
    
$
43,469
      
7.3
%
  
$
-
    
$
-
    
$
258,944
    
$
244,298
      
6.0
%
Non-same property revenue (2)
    
9,773
      
2,551
              
13,863
      
728
              
6,748
      
1,508
              
7,237
      
6,153
      
37,621
      
10,940
          
Total Revenues
  
$
132,061
    
$
119,916
            
$
103,859
    
$
84,192
            
$
53,408
    
$
44,977
            
$
7,237
    
$
6,153
    
$
296,565
    
$
255,238
          
 
                                                                                                                
Property operating expenses:
                                                                                                                
Same-property operating expenses
                                                                                                                
Real estate taxes
  
$
10,306
    
$
10,097
            
$
8,408
    
$
8,021
            
$
4,580
    
$
3,720
            
$
-
    
$
-
    
$
23,294
    
$
21,838
      
6.7
%
Administrative and insurance
    
10,718
      
10,410
              
5,590
      
5,427
              
3,411
      
3,307
              
-
      
-
      
19,719
      
19,144
      
3.0
%
Maintenance and repairs
    
8,358
      
7,704
              
5,694
      
5,265
              
3,140
      
3,072
              
-
      
-
      
17,192
      
16,041
      
7.2
%
Utilities
    
7,227
      
6,978
              
5,483
      
5,256
              
3,474
      
3,386
              
-
      
-
      
16,184
      
15,620
      
3.6
%
Management fees
    
2,809
      
2,823
              
1,794
      
1,759
              
1,267
      
1,268
              
-
      
-
      
5,870
      
5,850
      
0.3
%
Total same-property operating expenses
    
39,418
      
38,012
      
3.7
%
    
26,969
      
25,728
      
4.8
%
    
15,872
      
14,753
      
7.6
%
    
-
      
-
      
82,259
      
78,493
      
4.8
%
Non-same property operating expenses (2)
    
3,746
      
967
              
5,144
      
296
              
2,372
      
551
              
1,980
      
2,275
      
13,242
      
4,089
          
Total property operating expenses
  
$
43,164
    
$
38,979
            
$
32,113
    
$
26,024
            
$
18,244
    
$
15,304
            
$
1,980
    
$
2,275
    
$
95,501
    
$
82,582
          
 
                                                                                                                
Net operating income (NOI):
                                                                                                                
Same-property NOI
  
$
82,870
    
$
79,353
      
4.4
%
  
$
63,027
    
$
57,736
      
9.2
%
  
$
30,788
    
$
28,716
      
7.2
%
  
$
-
    
$
-
    
$
176,685
    
$
165,805
      
6.6
%
Non-same property NOI (2)
                                                                                                                
Redevelopment communities
    
-
      
-
              
-
      
-
              
1,469
      
957
              
-
      
-
      
1,469
      
957
          
Acquired communities - 2013 (3)
    
-
      
-
              
1,824
      
-
              
330
      
-
              
-
      
-
      
2,154
      
-
          
Acquired communities - 2012 (4)
    
6,027
      
1,584
              
6,895
      
432
              
2,577
      
-
              
-
      
-
      
15,499
      
2,016
          
Other real estate assets (1)
    
-
      
-
              
-
      
-
              
-
      
-
              
5,257
      
3,878
      
5,257
      
3,878
          
Total non-same property NOI
    
6,027
      
1,584
              
8,719
      
432
              
4,376
      
957
              
5,257
      
3,878
      
24,379
      
6,851
          
Total NOI
  
$
88,897
    
$
80,937
            
$
71,746
    
$
58,168
            
$
35,164
    
$
29,673
            
$
5,257
    
$
3,878
    
$
201,064
    
$
172,656
          
 
                                                                                                                
Same-property operating margin
    
68
%
    
68
%
            
70
%
    
69
%
            
66
%
    
66
%
                            
68
%
    
68
%
        
Annualized same-property turnover percentage
    
50
%
    
52
%
            
50
%
    
49
%
            
47
%
    
45
%
                            
49
%
    
50
%
        
Average same-property concessions per turn (5)
  
$
116
    
$
148
            
$
145
    
$
119
            
$
95
    
$
123
                            
$
121
    
$
134
          
Average same-property financial occupancy
    
96.2
%
    
96.3
%
            
96.6
%
    
97.0
%
            
96.3
%
    
96.5
%
                            
96.3
%
    
96.6
%
        

(1) Other real estate assets consists mainly of retail space, commercial properties, and boat slips and their operating results are classified in non-same property results.
(2) Includes properties which subsequent to January 1, 2012 were either acquired or in a stage of development or redevelopment without stabilized operations.
(3) Acquired communities during 2013 includes Annaliese and Fox Plaza.
(4) Acquired communities during 2012 includes Reed Square, Essex Skyline at MacArthur Place, Park Catalina, The Huntington, Montebello, Park West, Domaine, Ascent, Willow Lake, and Bennett Lofts.
(5) Average same-property concessions per turn is the dollar amount per unit resulting from the same-property concessions divided by the product of the same property turnover percentage for the quarter times the same-property apartment units.
 

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 June 30, 2013, June 30, 2012 and March 31, 2013
(Dollars in thousands, except average property rental rates)

 
  
   
   
   
   
Three months ended
    
Three months ended
    
   
   
 
 
  
   
Average Property Rental Rates
    
June 30, 2013
    
June 30, 2012
    
   
   
 
Region
  
Units
    
QTD
2013
    
QTD
2012
    
% Change
    
Property
Revenue
    
Financial
Occupancy
    
Property
Revenue
    
Financial
Occupancy
    
Property
Revenue
%
Change
    
Property
Revenue
March 31, 2013
    
Sequential
% Change
  
 
  
   
   
   
   
   
   
   
   
   
   
 
Southern California
  
   
   
   
   
   
   
   
   
   
   
 
Los Angeles County
    
4,805
    
$
1,784
    
$
1,696
      
5.2
%
  
$
25,991
      
95.5
%
  
$
24,811
      
96.2
%
    
4.8
%
  
$
25,928
      
0.2
%
Ventura County
    
2,898
      
1,394
      
1,352
      
3.1
%
    
12,496
      
96.5
%
    
12,040
      
96.0
%
    
3.8
%
    
12,446
      
0.4
%
Orange County
    
2,402
      
1,661
      
1,592
      
4.3
%
    
12,054
      
95.8
%
    
11,536
      
95.9
%
    
4.5
%
    
11,922
      
1.1
%
San Diego County
    
2,213
      
1,222
      
1,188
      
2.9
%
    
8,343
      
95.6
%
    
8,108
      
96.3
%
    
2.9
%
    
8,285
      
0.7
%
Santa Barbara County
    
347
      
1,679
      
1,674
      
0.3
%
    
1,775
      
97.3
%
    
1,678
      
92.8
%
    
5.8
%
    
1,779
      
-0.2
%
Riverside County
    
276
      
801
      
785
      
2.0
%
    
640
      
91.3
%
    
632
      
91.6
%
    
1.3
%
    
629
      
1.7
%
Total same-property
    
12,941
      
1,554
      
1,493
      
4.1
%
    
61,299
      
95.8
%
    
58,805
      
96.0
%
    
4.2
%
    
60,989
      
0.5
%
Los Angeles County
    
90
      
1,822
                      
491
              
59
                                  
Orange County
    
625
      
2,255
                      
4,442
              
2,492
                                  
Non-same property
    
715
      
2,111
                      
4,933
              
2,551
                                  
                                                                                         
Northern California
                                                                                        
Santa Clara County
    
3,671
      
1,967
      
1,804
      
9.0
%
    
21,821
      
96.2
%
    
20,206
      
97.2
%
    
8.0
%
    
21,393
      
2.0
%
Contra Costa County
    
1,720
      
1,677
      
1,592
      
5.3
%
    
8,776
      
96.4
%
    
8,304
      
95.9
%
    
5.7
%
    
8,619
      
1.8
%
Alameda County
    
1,542
      
1,619
      
1,498
      
8.1
%
    
7,826
      
97.1
%
    
7,209
      
96.6
%
    
8.6
%
    
7,644
      
2.4
%
San Mateo County
    
768
      
2,003
      
1,800
      
11.3
%
    
4,799
      
97.4
%
    
4,290
      
97.4
%
    
11.9
%
    
4,655
      
3.1
%
San Francisco MSA
    
175
      
2,248
      
2,013
      
11.7
%
    
1,116
      
90.2
%
    
1,042
      
94.4
%
    
7.1
%
    
1,133
      
-1.5
%
Other
    
230
      
1,596
      
1,535
      
4.0
%
    
1,122
      
97.1
%
    
1,077
      
96.6
%
    
4.2
%
    
1,093
      
2.7
%
Total same-property
    
8,106
      
1,838
      
1,697
      
8.3
%
    
45,460
      
96.4
%
    
42,128
      
96.8
%
    
7.9
%
    
44,537
      
2.1
%
San Francisco MSA
    
717
      
2,182
                      
4,219
              
-
                                  
Santa Clara County
    
608
      
1,919
                      
3,410
              
442
                                  
Non-same property
    
1,325
      
2,009
                      
7,629
              
442
                                  
 
                                                                                        
Seattle Metro
                                                                                        
King County
    
5,467
      
1,283
      
1,193
      
7.5
%
    
22,281
      
96.4
%
    
20,664
      
96.5
%
    
7.8
%
    
21,697
      
2.7
%
Snohomish County
    
465
      
949
      
868
      
9.3
%
    
1,334
      
94.0
%
    
1,239
      
93.2
%
    
7.7
%
    
1,348
      
-1.0
%
Total same-property
    
5,932
      
1,256
      
1,167
      
7.7
%
    
23,615
      
96.0
%
    
21,903
      
96.2
%
    
7.8
%
    
23,045
      
2.5
%
King County
    
788
      
1,521
                      
3,466
              
765
                                  
Non-same property
    
788
      
1,521
                      
3,466
              
765
                                  
 
                                                                                        
Other real estate assets
                                    
3,768
              
3,171
                                  
 
                                                                                        
Total same-property revenue
    
26,979
    
$
1,574
    
$
1,483
      
6.2
%
  
$
130,374
      
96.0
%
  
$
122,836
      
96.3
%
    
6.1
%
  
$
128,571
      
1.4
%
 
                                                                                        
Total non-same property revenue
    
2,828
    
$
1,880
                    
$
19,796
            
$
6,929
                                  
 

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 - Six Months ended June 30, 2013 and 2012
(Dollars in thousands, except average property rental rates)

 
  
   
   
   
   
Six months ended
    
Six months ended
    
 
 
  
   
Average Property Rental Rates
    
June 30, 2013
    
June 30, 2012
    
 
Region
  
Units
    
YTD 2013
    
YTD 2012
    
% Change
    
Property
Revenue
    
Financial
Occupancy
    
Property
Revenue
    
Financial
Occupancy
    
Property
Revenue
% Change
  
 
  
   
   
   
   
   
   
   
   
 
Southern California
  
   
   
   
   
   
   
   
   
 
Los Angeles County
    
4,805
    
$
1,771
    
$
1,685
      
5.1
%
  
$
51,919
      
96.1
%
  
$
49,510
      
96.7
%
    
4.9
%
Ventura County
    
2,898
      
1,389
      
1,345
      
3.3
%
    
24,941
      
96.7
%
    
24,058
      
96.4
%
    
3.7
%
San Diego County
    
2,213
      
1,216
      
1,186
      
2.5
%
    
16,628
      
95.8
%
    
16,198
      
96.2
%
    
2.7
%
Orange County
    
2,402
      
1,650
      
1,583
      
4.2
%
    
23,975
      
96.1
%
    
23,002
      
96.1
%
    
4.2
%
Santa Barbara County
    
347
      
1,674
      
1,668
      
0.4
%
    
3,554
      
97.4
%
    
3,350
      
94.0
%
    
6.1
%
Riverside County
    
276
      
800
      
781
      
2.4
%
    
1,271
      
90.4
%
    
1,247
      
91.1
%
    
1.9
%
Total same-property
    
12,941
      
1,545
      
1,485
      
4.0
%
    
122,288
      
96.2
%
    
117,365
      
96.3
%
    
4.2
%
Los Angeles County
    
90
      
1,807
                      
979
              
59
                  
Orange County
    
625
      
2,235
                      
8,794
              
2,492
                  
Non-same property
    
715
      
2,021
                      
9,773
              
2,551
                  
 
                                                                        
Northern California
                                                                        
Santa Clara County
    
3,671
      
1,943
      
1,780
      
9.2
%
    
43,214
      
96.6
%
    
39,843
      
97.4
%
    
8.5
%
Contra Costa County
    
1,720
      
1,662
      
1,579
      
5.3
%
    
17,395
      
96.4
%
    
16,553
      
96.3
%
    
5.1
%
Alameda County
    
1,542
      
1,600
      
1,487
      
7.6
%
    
15,470
      
97.1
%
    
14,365
      
96.6
%
    
7.7
%
San Mateo County
    
768
      
1,982
      
1,774
      
11.7
%
    
9,454
      
97.3
%
    
8,455
      
97.5
%
    
11.8
%
San Francisco MSA
    
175
      
2,212
      
1,981
      
11.7
%
    
2,249
      
92.3
%
    
2,087
      
96.2
%
    
7.8
%
Other
    
230
      
1,584
      
1,530
      
3.5
%
    
2,214
      
96.5
%
    
2,161
      
97.3
%
    
2.5
%
Total same-property
    
8,106
      
1,817
      
1,678
      
8.3
%
    
89,996
      
96.6
%
    
83,464
      
97.0
%
    
7.8
%
San Francisco MSA
    
717
      
2,182
                      
7,136
              
-
                  
Santa Clara County
    
608
      
1,856
                      
6,727
              
728
                  
Non-same property
    
1,325
      
2,019
                      
13,863
              
728
                  
 
                                                                        
Seattle Metro
                                                                        
King County
    
5,467
      
1,268
      
1,178
      
7.6
%
    
43,979
      
96.5
%
    
40,988
      
96.7
%
    
7.3
%
Snohomish County
    
465
      
934
      
855
      
9.2
%
    
2,681
      
95.4
%
    
2,481
      
94.0
%
    
8.1
%
Total same-property
    
5,932
      
1,241
      
1,153
      
7.6
%
    
46,660
      
96.3
%
    
43,469
      
96.5
%
    
7.3
%
King County
    
788
      
1,492
                      
6,748
              
1,508
                  
Non-same property
    
788
      
1,492
                      
6,748
              
1,508
                  
 
                                                                        
Other real estate assets
                                    
7,237
              
6,153
                  
 
                                                                        
Total same-property revenue
    
26,979
    
$
1,560
    
$
1,469
      
6.2
%
  
$
258,944
      
96.3
%
  
$
244,298
      
96.6
%
    
6.0
%
 
                                                                        
Total non-same property revenue
    
2,828
    
$
1,844
                    
$
37,621
            
$
10,940
                  
 

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 - June 30, 2013
(Dollars in millions, except per unit amounts in thousands)

 
  
  
  
Ownership
%
    
Estimated
Units
    
Estimated retail
sq. feet
    
Incurred to
Date
    
Remaining
Costs
    
Estimated
Total Cost
    
Cost Per
Unit
    
Construction
Start
    
Initial
Occupancy
    
Stabilized
Operations
  
Development Projects - Consolidated
  
   
   
   
   
   
   
   
   
   
 
Project Name
Location
  
   
   
   
   
   
   
   
   
   
 
64th & Christie
Emeryville, CA
    
100
%
    
190
      
-
    
$
26.5
    
$
35.1
    
$
61.6
    
$
324.2
    
Q3 2012
    
Q3 2014
    
Q1 2015
  
The Avery
Valley Village, CA
    
(1
)
    
121
      
-
      
1.9
      
35.7
      
37.6
      
310.7
    
Q3 2012
    
Q1 2014
    
Q2 2014
  
Total Development Projects - Consolidated
            
311
      
-
      
28.4
      
70.8
      
99.2
      
319.0
                    
 
 
                                                                          
Predevelopment Projects - Consolidated
                                                                          
Project Name
Location
                                                                          
City Centre
Moorpark, CA
    
100
%
    
200
      
-
      
11.0
      
-
      
11.0
                            
The Village
Walnut Creek, CA
    
50
%
    
49
      
35,000
      
30.1
      
-
      
30.1
                            
Other Projects
various
            
-
      
-
      
0.7
      
-
      
0.7
                            
Total Predevelopment Projects - Consolidated
            
249
      
35,000
      
41.8
      
-
      
41.8
                            
Total Development Pipeline - Consolidated
            
560
      
35,000
      
70.2
      
70.8
      
141.0
                            
 
 
                                                                          
Development Projects - Joint Venture
                                                                          
Project Name
Location
                                                                          
Epic - Phase I and II
San Jose, CA
    
55
%
    
569
      
-
      
159.6
      
32.0
      
191.6
      
336.8
    
Q3 2011
    
Q2 2013
    
Q4 2014
  
Connolly Station
Dublin, CA
    
55
%
    
309
      
-
      
72.0
      
22.5
      
94.5
      
305.8
    
Q3 2011
    
Q3 2013
    
Q2 2014
  
The Huxley
West Hollywood, CA
    
50
%
    
187
      
18,200
      
56.7
      
18.3
      
75.0
      
401.1
    
Q4 2011
    
Q1 2014
    
Q3 2014
  
The Dylan
West Hollywood, CA
    
50
%
    
184
      
12,750
      
50.1
      
25.3
      
75.4
      
409.8
    
Q4 2011
    
Q2 2014
    
Q4 2014
  
Mosso I and Mosso II
San Francisco, CA
    
55
%
    
463
      
9,300
      
139.1
      
110.9
      
250.0
      
540.0
    
Q2 2012
    
Q2 2014
    
Q1 2015
  
Elkhorn
San Mateo, CA
    
55
%
    
197
      
-
      
37.2
      
38.9
      
76.1
      
386.3
    
Q3 2012
    
Q2 2014
    
Q4 2014
  
One South Market
San Jose, CA
    
55
%
    
312
      
6,000
      
17.1
      
128.0
      
145.1
      
465.1
    
Q3 2013
    
Q3 2015
    
Q2 2016
  
Total Development Projects - Joint Venture
            
2,221
      
46,250
      
531.8
      
375.9
      
907.7
      
408.7
                    
 
 
                                                                          
Predevelopment Projects - Joint Venture
                                                                          
Project Name
Location
                                                                          
Epic - Phase III
San Jose, CA
    
55
%
    
200
      
-
      
23.7
      
-
      
23.7
                            
Total Development Pipeline - Joint Venture
            
2,421
      
46,250
      
555.5
      
375.9
      
931.4
                            
 
 
                                                                          
Grand Total - Development Pipeline
            
2,981
      
81,250
    
$
625.7
    
$
446.7
    
$
1,072.4
                            

(1) The Company invested $1.0 million and has incurred $0.9 million of additional internal costs as part of an agreement to purchase the property upon receipt of temporary certificate of occupancy for total estimated cost of $37.6 million, which is expected in the first quarter of 2014.
 

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 - June 30, 2013
(Dollars in thousands, except per unit amounts)

 
  
 
    
Total
    
Estimated
    
Estimated
  
 
  
NOI
  
 
  
   
Incurred
    
Remaining
    
Total
  
Project
  
For the six months ended
  
Region/Project Name
  
Units
    
To Date
    
Cost
    
Cost
  
Start Date
  
2013
    
2012
  
 
  
   
   
   
 
 
  
   
 
Same-property - Redevelopment Projects (1) (2)
  
   
   
   
 
 
  
   
 
Northern California
  
   
   
   
 
 
  
   
 
Marina Cove, Santa Clara, CA
    
292
    
$
6,916
    
$
7,138
    
$
14,054
  
Jun-07
  
   
 
Pointe at Cupertino, Cupertino, CA
    
116
      
7,851
      
2,105
      
9,956
  
Jan-10
  
   
 
Magnolia Square, Sunnyvale, CA
    
188
      
9,023
      
4,270
      
13,293
  
Sep-10
  
   
 
Southern California
                                
 
  
   
 
CentrePointe , San Diego, CA
    
224
      
10,253
      
2,704
      
12,957
  
Oct-11
  
   
 
Fairway @ Big Canyon
    
74
      
2,304
      
3,512
      
5,816
  
Nov-12
  
 
    
 
  
Total Same-property - Redevelopment Projects
    
894
    
$
36,347
    
$
19,729
    
$
56,076
  
 
  
$
6,991
    
$
6,365
  
 
                                
 
                
Same-Property Redevelopment Vacancy Loss
                                
     
  
$
1,190
    
$
592
  
 
                                
 
                
Non-same property - Redevelopment Projects
                                
 
                
Seattle Metro
                                
 
                
Woodland Commons, Bellevue, WA
    
302
      
14,561
      
842
      
15,403
  
Jun-07
                
Total Non-same property - Redevelopment Projects
    
302
    
$
14,561
    
$
842
    
$
15,403
  
 
  
$
1,469
    
$
957
  

(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 $0.8 million and $1.2 million of vacancy loss for the same-property portfolio, and $1.2 million and $1.7 million of vacancy loss for the total portfolio, during the three and six months ended June 30, 2013, respectively.  The Company completed the redevelopment of interiors totaling 482 and 705 units for the same-property portfolio and 507 and 730 units for the total portfolio, during the three and six months ended June 30, 2013, respectively.  The Company's co-investments incurred $0.1 million of vacancy loss during the six months ended June 30, 2013 related to the redevelopment of 41 unit interiors.

Non-revenue Generating Capital Expenditures
    
Q2 2013
      
Q1 2013
      
Q4 2012
      
Q3 2012
      
Q2 2012
      
Q1 2012
      
Q4 2011
  
 
                                                        
Non-revenue generating capital expenditures
  
$
8,330
    
$
4,019
    
$
14,715
    
$
8,736
    
$
5,840
    
$
1,200
    
$
12,144
  
Average apartment units in quarter
    
29,338
      
28,900
      
28,269
      
27,815
      
27,457
      
27,221
      
27,241
  
Capital expenditures per apartment unit in the quarter
  
$
284
    
$
139
    
$
521
    
$
314
    
$
213
    
$
44
    
$
446
  
Capital expenditures per apartment unit-trailing four quarters
  
$
1,220
    
$
1,153
    
$
1,079
    
$
1,004
    
$
926
    
$
895
    
$
958
  
 

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 - June 30, 2013
  
Essex
    
   
Total
    
   
Essex
    
Weighted
    
Remaining
    
For the Quarter
    
For the Six Months
  
(Dollars in thousands)
  
Ownership
    
   
Undepreciated
    
Debt
    
Book
    
Average
    
Term of
    
Ended June 30,
    
Ended June 30, 2012
  
 
  
Percentage
    
Units
    
Book Value
    
Amount
    
Value
    
Borrowing Rate
    
Debt/(in Years)
    
2013
    
2012
    
2013
    
2012
  
 
  
   
   
   
   
   
   
   
   
   
   
 
Operating Non-consolidated Joint Ventures
  
   
   
   
   
   
   
   
Net Operating Income
  
 
  
   
   
   
   
   
   
   
   
   
   
 
Essex Apartment Value Fund II, L.P. (Fund II) (1)
    
28.2
%
    
1,062
    
$
224,574
    
$
55,447
    
$
23,945
      
5.1
%
    
0.9
    
$
4,042
    
$
3,657
    
$
8,067
    
$
7,301
  
Wesco I, LLC (2)
    
50.0
%
    
2,713
      
663,835
      
358,610
      
142,704
      
4.0
%
    
9.7
      
8,363
      
5,398
      
16,455
      
10,701
  
Wesco III, LLC (2) (3)
    
50.0
%
    
657
      
159,995
      
84,080
      
37,917
      
2.8
%
    
6.9
      
801
      
-
      
1,430
      
-
  
Expo (4)
    
50.0
%
    
275
      
63,255
      
29,453
      
18,989
      
2.0
%
    
1.0
      
920
      
-
      
1,305
      
-
  
Total Operating Non-consolidated Joint Ventures
      
4,707
    
$
1,111,659
    
$
527,590
    
$
223,555
      
3.8
%
    
7.8
    
$
14,126
    
$
9,055
    
$
27,257
    
$
18,002
  
 
                                                                                        
 
                                                          
Essex Portion of NOI and Expenses
  
Essex portion of NOI
                                                          
$
6,182
    
$
3,730
    
$
11,870
    
$
7,409
  
Essex portion of depreciation
                                                            
(3,777
)
    
(3,366
)
    
(7,619
)
    
(7,750
)
Essex portion of interest expense and other
                                                            
(1,804
)
    
(477
)
    
(3,691
)
    
(688
)
Essex portion of gain
                                                            
2,366
      
-
      
2,366
      
-
  
Essex portion of net income (loss) from operating co-investments
                                                    
$
2,967
    
$
(113
)
  
$
2,926
    
$
(1,029
)
 
                                                                                        
Development Joint Ventures (5) (6)
    
50/55
%
    
2,421
    
$
555,464
    
$
79,100
      
263,384
      
1.6
%
    
33.4
    
$
(15
)
  
$
-
    
$
(15
)
  
$
-
  

 
  
   
Weighted
Average
Preferred
Return
    
Weighted
Average
Expected
Term
    
Income from Preferred Equity Investments
Equity Investments
  
 
  
 
    
 
    
 
    
  
 
Preferred Equity Investments (7)
    
131,320
      
10.3
%
    
4.6
    
$
4,330
    
$
3,224
    
$
8,582
    
$
6,480
  
 
                                                        
Total Co-investments
  
$
618,259
                    
$
7,282
    
$
3,111
    
$
11,493
    
$
5,451
  
 
(1) The Company has a 28.2% interest as a general partner and limited partner in Fund II, and may earn promote income if Fund II exceeds certain financial return benchmarks.  During Q4 2012, 7 of the 14 properties in Fund II were sold.  During Q2 2013, one additional property was sold, and two additional properties were sold in July 2013.
(2) The Company has a 50% interest in Wesco I and III and the Company may earn promote income if the co-investment exceeds certain financial benchmarks.
(3) The Company has provided two bridge loans totaling $56.8 million to Wesco III at a rate of LIBOR + 250, permanent financing is expected to be placed on the Gas Company Lofts and Regency at Mt. View by the end of Q3 2013.
(4) NOI generated from the lease-up of Expo was included in Development Joint Ventures in the prior year; operations from Expo were reclassified to Operating Joint Ventures in Q1 2013.
(5) The Company has interests in seven development co-investments, which are detailed on S-9.  NOI generated from the lease-up of Epic is included in Development Joint Ventures.
(6) The Huxley and The Dylan have a combined $79.1 million of long-term tax-exempt bond debt that are subject to total return swaps that mature in 2016.
(7) Included in preferred equity income are early redemption fees earned totaling $0.5 million and $0.9 million for the three and six months ended June 30, 2013.
 

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 - June 30, 2013
(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 six months ended
  
 
  
Balance as of June 30, 2013
    
June 30, 2013
  
 
  
Investment in
    
Related
    
Noncontrolling
    
DownREIT
    
   
Operating
    
 
 
  
Real Estate
    
Debt
    
Interest
    
Units Outstanding (1)
    
Revenue
    
Expenses
    
NOI
  
 
  
   
   
   
   
   
   
 
Noncontrolling Interest - DownREIT:
  
   
   
   
   
   
   
 
Barkley Apartments
  
$
8,413
    
$
16,659
    
$
1,696
      
74,248
    
$
1,304
    
$
462
    
$
842
  
Brentwood
    
13,526
      
19,114
      
2,568
      
58,884
      
1,286
      
353
      
933
  
Brookside Oaks
    
31,751
      
19,813
      
2,327
      
84,095
      
1,920
      
397
      
1,523
  
Capri at Sunny Hills
    
15,879
      
-
      
2,949
      
158,890
      
1,245
      
362
      
883
  
Hidden Valley (2)
    
37,515
      
30,315
      
6,089
      
62,647
      
2,786
      
858
      
1,928
  
Highridge Apartments
    
30,365
      
44,807
      
2,826
      
270,158
      
3,272
      
703
      
2,569
  
Montejo Apartments
    
8,019
      
13,186
      
1,216
      
29,319
      
955
      
242
      
713
  
The Elliot at Mukilteo
    
15,685
      
10,750
      
1,212
      
100,713
      
1,663
      
701
      
962
  
Magnolia Square
    
31,542
      
18,300
      
6,356
      
57,231
      
1,743
      
488
      
1,255
  
Fairhaven Apartments
    
12,796
      
17,112
      
2,951
      
67,728
      
1,318
      
355
      
963
  
Valley Park Apartments
    
13,574
      
22,387
      
296
      
21,630
      
1,484
      
377
      
1,107
  
Villa Angelina Apartments
    
19,357
      
27,292
      
1,593
      
43,552
      
2,000
      
490
      
1,510
  
 
                                                        
 
  
$
238,422
    
$
239,735
      
32,079
      
1,029,095
    
$
20,976
    
$
5,788
    
$
15,188
  
 
                                                        
Other Components of Noncontrolling Interest:
                                                        
Hillsdale Garden Apartments (3)
  
$
109,480
              
20,239
            
$
8,543
    
$
2,778
    
$
5,765
  
Joint Venture - Development (4)
  
$
30,100
              
4,000
                                  
Operating Limited Partnership Units and Other
                    
55,571
                                  
Total Noncontrolling Interest
                  
$
111,889
                                  

(1)
Generally, DownREIT units are redeemed for cash at a value equal to Essex's common stock price.
(2)
The DownREIT has a 75% interest in this community and a joint venture partner has a 25% interest.
(3)
The Company has an 81.5% interest in this community and the joint venture partner has an 18.5% interest.
(4)
The Company consolidates one joint venture development located in Walnut Creek, California, in which the Company has a 50% 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.

Income From Discontinued Operations and Selected Financial Data - June 30, 2013
(Dollars in thousands)


Income from Discontinued Operations

No communities were sold or held for sale for the six months ended June 30, 2013. During the six months ended June 30, 2012, the Company sold properties located in San Diego, California including Tierra del Sol/Norte, 156 units, and Alpine Country, 108 units, for gross proceeds of $28.3 million resulting in a  net gain of $9.8 million.

 
  
Three Months Ended
    
Six Months Ended
  
 
  
June 30,
    
June 30,
  
 
  
2013
    
2012
    
2013
    
2012
  
Rental revenues
  
$
-
    
$
-
    
$
-
    
$
608
  
Property operating expenses
    
-
      
-
      
-
      
(260
)
Depreciation and amortization
    
-
      
-
      
-
      
(94
)
Income from real estate sold
    
-
      
-
      
-
      
254
  
Gain on sale, net of internal disposition costs and taxes
    
-
      
-
      
-
      
9,783
  
Income from discontinued operations
  
$
-
    
$
-
    
$
-
    
$
10,037
  
 
Shares Outstanding and Potentially Dilutive Securities

 
  
Q2 2013
    
Actual
    
YTD 2013
  
 
  
Weighted Avg.
    
As of 6/30/13
    
Weighted Avg.
  
Common Shares
    
37,292,720
      
37,317,662
      
37,149,120
  
Stock Options and Series G Preferred Stock
    
132,449
      
163,509
      
127,030
  
Weighted Avg. Shares Diluted - EPS
    
37,425,169
      
37,481,171
      
37,276,150
  
Operating Limited Partnership Units
    
2,151,494
      
2,147,970
      
2,115,670
  
Weighted Avg. Shares Diluted - FFO
    
39,576,663
      
39,629,141
      
39,391,820
  
 

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.
Assumptions for 2013 FFO Guidance Range
Q2 2013 Earnings Results Supplement
($'s in thousands, except share and per share data)

 
  
   
Low - end of
    
High - end of
  
 
 
  
Actual
    
Guidance range
    
Guidance range
  
 
 
  
YTD 2013
    
2013
    
2013
  
Changes from Original 2013 Guiance
Net Operating Income ("NOI")
  
   
   
 
       
Total NOI from consolidated communities
  
$
201,064
    
$
407,900
    
$
409,200
  
Tightened same-property revenue guidance to a range of 5.8% to 6.2% and NOI guidance to a range of 7.0% to 7.4%.
 
                        
        
Management Fees
    
6,182
      
11,600
      
12,100
  
 
 
                        
        
Interest Expense
                        
       
Interest and amortization expense, before capitalized interest
    
(65,547
)
    
(134,000
)
    
(132,000
)
 
Projected interest capitalized
    
8,079
      
16,400
      
17,400
  
Capitalized interest updated for timing of development spend, and higher borrowing cost.
Net interest expense
    
(57,468
)
    
(117,600
)
    
(114,600
)
 
 
                        
        
Recurring Income and Expenses
                        
       
Interest and other income
    
4,328
      
8,100
      
8,500
  
 
FFO from co-investments
    
15,692
      
29,400
      
31,000
  
Equity income updated for Wesco III acquisitions and repayment of preferred equity investment.
General and administrative expense
    
(12,295
)
    
(23,317
)
    
(24,317
)
 
Cost of management and other fees
    
(3,434
)
    
(6,800
)
    
(6,800
)
 
Preferred dividends and non-controlling interest
    
(6,627
)
    
(13,000
)
    
(13,000
)
 
 
    
(2,336
)
    
(5,617
)
    
(4,617
)
 
 
                        
        
Non-Core Income and Expenses
                        
       
Promote income from co-investment
    
-
      
-
      
4,000
  
 
Gains on sales of marketable securities, land, note prepayment
    
4,114
      
4,114
      
4,114
  
 
Gains from early redemption of preferred equity investments
    
946
      
946
      
946
  
 
Gain (Loss) on early retirement of debt
    
1,024
      
400
      
600
  
 
Acquisition costs
    
(555
)
    
(1,500
)
    
(1,750
)
 
 
    
5,529
      
3,960
      
7,910
  
 
                        
        
Funds from Operations
  
$
152,971
    
$
300,243
    
$
309,993
  
 
 
                        
        
Funds from Operations per diluted Share
  
$
3.88
    
$
7.60
    
$
7.85
  
 
 
                        
        
% Change - Funds from Operations
    
16.8
%
    
13.3
%
    
16.9
%
 
 
                        
        
Funds from Operations excluding non-core items
  
$
147,442
    
$
296,283
    
$
302,083
  
 
 
                        
        
Core Funds from Operations per diluted Share
  
$
3.74
    
$
7.50
    
$
7.65
  
 
 
                        
        
% Change - Core Funds from Operations
    
13.4
%
    
10.0
%
    
12.1
%
 
 
                        
        
Weighted average shares outstanding
    
39,391,820
      
39,510,000
      
39,510,000
  
 
 

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.

Summary of Apartment Community Acquisitions and Dispositions Activity
Twelve month rolling activity ending June 30, 2013
(Dollars in thousands)
 
Acquisitions
  
 
    
Essex
  
 
 
  
 
    
 
    
 
    
 
    
 
    
 
  
 
 
  
   
Ownership
  
 
  
  
Purchase
    
Assumed Debt
    
Assumed Debt
    
Assumed Debt
    
Price per
    
Average
  
Property Name
Location
  
Units
    
Percentage
  
Ownership
Date
  
Price
    
Principal
    
Stated Rate
    
Effective Rate
    
Unit
    
Rent (1)
  
 
 
  
   
 
 
 
  
   
   
   
   
   
 
Montebello
Kirkland, WA
    
248
      
100
%
EPLP
Jul-12
  
$
52,000
    
$
26,515
      
5.6
%
    
3.1
%
  
$
210
    
$
1,341
  
Riley Square
Santa Clara, CA
    
156
      
50
%
Wesco I, LLC
Aug-12
    
38,250
      
17,500
      
5.2
%
    
3.1
%
    
245
      
1,644
  
Park West
San Francisco, CA
    
126
      
100
%
EPLP
Sep-12
    
31,600
      
-
                      
251
      
1,561
  
Domaine
Seattle, WA
    
92
      
100
%
EPLP
Sep-12
    
34,000
      
14,600
      
5.7
%
    
3.0
%
    
370
      
1,910
  
Q3 2012 Total
    
622
          
 
 
    
155,850
      
58,615
                      
251
          
 
 
                
 
 
                                                
Ascent
Kirkland, WA
    
90
      
100
%
EPLP
Oct-12
    
15,850
      
-
                      
176
      
1,155
  
Willow Lake
San Jose, CA
    
508
      
100
%
EPLP
Oct-12
    
148,000
      
-
                      
291
      
1,758
  
Madrid (2)
Mission Viejo, CA
    
230
      
50
%
Wesco I, LLC
Nov-12
    
(2
)
    
33,266
      
5.3
%
    
2.6
%
    
-
      
1,616
  
Haver Hill
Fullerton, CA
    
264
      
50
%
Wesco III, LLC
Nov-12
    
45,600
      
-
                      
173
      
1,283
  
Bennett Lofts (3)
San Francisco, CA
    
113
      
100
%
EPLP
Dec-12
    
73,730
      
-
                      
652
      
3,028
  
Pacific Electric Lofts (2)   
Los Angeles, CA
    
314
      
50
%
Wesco I, LLC
Dec-12
    
(2
)
    
46,939
      
4.0
%
    
2.5
%
    
-
      
1,722
  
Q4 2012 Total
    
1,519
          
 
 
    
450,180
      
80,205
                      
296
          
 
 
                
 
 
                                                
Annaliese
Seattle, WA
    
56
      
100
%
EPLP
Jan-13
    
19,000
      
-
                      
339
      
1,734
  
Bennett Lofts (3)
San Francisco, CA
    
34
      
100
%
EPLP
Jan-13
    
22,220
      
-
                      
654
      
3,028
  
Fox Plaza (4)
San Francisco, CA
    
444
      
100
%
EPLP
Feb-13
    
135,000
      
-
                      
257
      
1,878
  
Q1 2013 Total
    
534
          
 
 
    
176,220
      
-
                      
291
          
 
 
                
 
 
                                                
Regency at Mountain View   
Mountain View, CA   
   
142
      
50
%
Wesco III, LLC
May-13
    
42,500
      
-
                      
299
      
2,012
  
Gas Company Lofts
Los Angeles, CA
    
251
      
50
%
Wesco III, LLC
Jun-13
    
71,000
      
-
                      
283
      
2,017
  
Q2 2013 Total
    
393
          
 
   
  
$
113,500
    
$
-
                    
$
289
          

Dispositions
  
   
Essex
  
 
  
   
 
 
  
   
Ownership
  
 
  
Sales
    
Price per
  
Regency at Mountain View   
 
  
Units
    
Percentage
  
Ownership
  
Price
    
Unit
  
 
2012 Total              
   
1,688
      
28.2
%
Fund II
  
$
412,950
    
$
245
  
 
                
 
                
2013 Total
    
924
      
28.2
%
Fund II
  
$
270,400
    
$
293
  

(1) Average rent represents the average in-place scheduled rent at the community at the time of initial acquisition.
(2) In accordance with terms of the related purchase and sale  agreements, purchase and sale price of the properties are not being disclosed by the Company.
(3) The 147 unit apartment community was acquired in two phases for $96.0 million.  Approximately 75% was acquired in December 2012 with the  remainder acquired on January 8, 2013.
(4)
The price per unit excludes $21.0 million attributed to the allocation of cost of the retail and parking garage at the community.
 

See Company's 10-Q for additional disclosures
S-15

E S S E X  P R O P E R T Y  T R U S T, I N C
2013 MSA Level Forecasts: Supply, Jobs and Apartment Market Conditions
 

 
  
Residential Supply (1)
    
Job Forecast (2)
    
Market Forecast (3)
  
Market
  
New MF
Supply
    
New SF
Supply
    
Total
Supply
    
% of MF
Supply to
MF Stock
    
% of Total
Supply to
Total Stock
    
Est.New Jobs
Dec-Dec
    
% Growth
    
Estimated Rent
Growth
    
Estimated Year
End Occupancy
  
 
  
   
   
   
   
   
   
   
   
 
Seattle
    
6,900
      
5,888
      
12,788
      
1.7
%
    
1.1
%
    
41,000
      
2.8
%
    
6.5
%
    
96.0
%
 
                                                                        
San Francisco
    
4,000
      
441
      
4,441
      
1.1
%
    
0.6
%
    
25,500
      
2.5
%
    
7.0
%
    
96.7
%
Oakland
    
1,800
      
2,563
      
4,363
      
0.6
%
    
0.4
%
    
18,000
      
1.8
%
    
6.5
%
    
96.5
%
San Jose
    
4,100
      
1,475
      
5,575
      
1.9
%
    
0.9
%
    
25,000
      
2.7
%
    
7.5
%
    
96.7
%
No. Cal.
    
9,900
      
4,479
      
14,379
      
1.1
%
    
0.6
%
    
68,500
      
2.3
%
    
7.1
%
    
96.6
%
 
                                                                        
Ventura
    
500
      
224
      
724
      
0.8
%
    
0.3
%
    
3,500
      
1.2
%
    
4.0
%
    
95.5
%
Los Angeles
    
5,000
      
2,667
      
7,667
      
0.3
%
    
0.2
%
    
45,000
      
1.1
%
    
6.0
%
    
95.5
%
Orange
    
2,800
      
2,111
      
4,911
      
0.8
%
    
0.5
%
    
25,000
      
1.8
%
    
5.3
%
    
96.0
%
San Diego
    
3,200
      
2,133
      
5,333
      
0.8
%
    
0.5
%
    
19,000
      
1.5
%
    
4.0
%
    
95.5
%
So. Cal.
    
11,500
      
7,135
      
18,635
      
0.5
%
    
0.3
%
    
92,500
      
1.3
%
    
5.2
%
    
95.6
%
 
                                                                        
Weighted Average (4)
    
28,300
      
17,502
      
45,802
      
0.8
%
    
0.5
%
    
202,000
      
1.8
%
    
6.0
%
    
96.0
%

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

U.S. Economic Assumptions: 2013 G.D.P. Growth:  2.3% , 2013 Job Growth: 1.6%

(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 2013 over estimated Dec 2012, 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 2013 vs Q4 2012 (excludes submarkets not targeted by Essex).  The estimated year end occupancy represents the Company's forecast of physical market occupancy rates at Q4 2013.

(4) Weighted Average: markets weighted by economic rent in the Company's portfolio.
 

See Company's 10-Q for additional disclosures
S-16
ESSEX PROPERTY TRUST, INC. APARTMENT COMMUNITIES
Real Estate Information as of July 31, 2013
 
 
 
 
 
 
Square
 
Year
Year
Property
Age of
Property Name
Address
City
State
Units
Footage
 
Acquired
Built
Ownership
Property
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
NORTHERN CALIFORNIA
Santa Clara County
 
 
 
 
 
 
 
 
 
 
The Commons
275 Union Avenue
Campbell
CA
264
153,168
 
2010
1973
EPLP
40
Pointe at Cupertino
19920 Olivewood Street
Cupertino
CA
116
135,200
 
1998
1963
EPLP
50
Regency at Mountain View
333 Escuela Avenue
Mountain View
CA
142
127,600
 
2013
1970
Wesco III
43
Bella Villagio
383 Vista Roma Way
San Jose
CA
231
227,511
 
2010
2004
EPLP
9
Epic - Phases I & II
545 River Oaks Parkway
San Jose
CA
569
472,236
 
 
 
JV-55%
 
Carlyle, The
2909 Nieman Boulevard
San Jose
CA
132
129,200
 
2000
2000
EPLP
13
Esplanade
350 East Taylor St.
San Jose
CA
278
279,000
 
2004
2002
EPLP
11
One South Market
1 S. Market Street
San Jose
CA
312
283,268
 
 
 
JV-55%
 
Waterford, The
1700 N. First Street
San Jose
CA
238
219,600
 
2000
2000
EPLP
13
101 San Fernando
99 S. Fourth Street
San Jose
CA
323
296,078
 
2010
2001
EPLP
12
Willow Lake
1331 Lakeshore Circle
San Jose
CA
508
471,744
 
2012
1989
EPLP
24
1000 Kiely
1000 Kiely Blvd.
Santa Clara
CA
121
128,486
 
2011
1971
EPLP
42
Le Parc
440 N. Winchester Avenue
Santa Clara
CA
140
113,200
 
1994
1975
EPLP
38
Marina Cove
3480 Granada Avenue
Santa Clara
CA
292
250,200
 
1994
1974
EPLP
39
Riley Square
3707 Poinciana Drive
Santa Clara
CA
156
126,900
 
2012
1972
Wesco I
41
Bristol Commons
732 E. Evelyn Avenue
Sunnyvale
CA
188
142,600
 
1995
1989
EPLP
24
Brookside Oaks
1651 Belleville Way
Sunnyvale
CA
170
119,900
 
2000
1973
DownREIT
40
Magnolia Lane
113 South Mary Avenue
Sunnyvale
CA
32
31,541
 
2007
2001
EPLP
12
Montclaire
450 N. Mathilda Avenue
Sunnyvale
CA
390
294,100
 
1988
1973
EPLP
40
Reed Square
1070 Reed Avenue
Sunnyvale
CA
100
95,440
 
2011
1970
EPLP
43
Summerhill Park
972 Corte Madera Avenue
Sunnyvale
CA
100
78,500
 
1988
1988
EPLP
25
Magnolia Square
107 South Mary Avenue
Sunnyvale
CA
156
110,824
 
2007
1969
DownREIT
44
Via
315 Tasman Drive
Sunnyvale
CA
284
309,421
 
2011
2011
EPLP
2
Windsor Ridge
825 E. Evelyn Avenue
Sunnyvale
CA
216
161,800
 
1989
1989
EPLP
24
 
 
 
14%
4,577
4,002,013
 
 
 
 
 
Alameda County
 
 
 
 
 
 
 
 
 
 
Fourth & U
700 University Avenue
Berkeley
CA
171
146,255
 
2010
2010
EPLP
3
Briarwood
4200 Bay Street
Fremont
CA
160
111,160
 
2011
1978
Wesco I
35
Stevenson Place
4141 Stevenson Blvd.
Fremont
CA
200
146,200
 
2000
1975
EPLP
38
The Woods
40640 High Street
Fremont
CA
160
105,280
 
2011
1978
Wesco I
35
Boulevard
40001 Fremont Blvd.
Fremont
CA
172
131,200
 
1996
1978
EPLP
35
City View
25200 Carlos Bee Blvd.
Hayward
CA
572
462,400
 
1998
1975
EPLP
38
The Grand
100 Grand Avenue
Oakland
CA
243
205,026
 
2009
2009
EPLP
4
Bridgeport
36826 Cherry Street
Newark
CA
184
139,000
 
1987
1987
EPLP
26
Alderwood Park Apartments
37057 Magnolia Street
Newark
CA
96
74,624
 
2006
1987
Fund II
26
 
 
 
6%
1,958
1,521,145
 
 
 
 
 
Contra Costa County
 
 
 
 
 
 
 
 
 
 
Connolly Station
7550 St. Patrick Way
Dublin
CA
309
286,348
 
 
 
JV-55%
 
64th & Christie
64th and Christie Avenue
Emeryville
CA
190
148,935
 
 
 
EPLP
 
San Marcos
2601 Hilltop Drive
Richmond
CA
432
407,600
 
2003
2003
EPLP
10
Bel Air
2000 Shoreline Drive
San Ramon
CA
462
391,000
 
1995
1988
EPLP
25
Foothill Gardens
1110 Harness Drive
San Ramon
CA
132
155,100
 
1997
1985
EPLP
28
Twin Creeks
2711-2731 Morgan Drive
San Ramon
CA
44
51,700
 
1997
1985
EPLP
28
Canyon Oaks
1 Amberstone Lane
San Ramon
CA
250
237,894
 
2007
2005
EPLP
8
Mill Creek at Windermere
2100 Waterstone Place
San Ramon
CA
400
381,060
 
2007
2005
EPLP
8
 
 
 
5%
1,720
1,624,354
 
 
 
 
 
San Mateo County
 
 
 
 
 
 
 
 
 
 
Carlmont Woods
2515 Carlmont Drive
Belmont
CA
195
107,200
 
2004
1971
Fund II
42
Belmont Terrace
1606 Continetals Way
Belmont
CA
71
72,951
 
2006
1974
EPLP
39
Davey Glen
200 Davey Glen Road
Belmont
CA
69
65,974
 
2006
1962
Fund II
51
Hillsdale Garden
3421 Edison Avenue
San Mateo
CA
697
611,505
 
2006
1948
JV - 81.5%
65
Elkhorn
1950 Elkhorn Court
San Mateo
CA
197
140,547
 
 
 
JV - 55%
 
 
 
 
3%
1,032
857,630
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
San Francisco and Marin Counties
 
 
 
 
 
 
 
 
 
 
Mt. Sutro Terrace Apartments
480 Warren Drive
San Francisco
CA
99
64,000
 
1999
1973
EPLP
40
Park West
121 Funston
San Francisco
CA
126
90,060
 
2012
1958
EPLP
55
Bennett Lofts
530, 542, 548 Brannan
San Francisco
CA
147
184,713
 
2012
2004
EPLP
9
 
208 Pennsylvania and 1001 Mariposa
 
 
 
 
 
 
 
 
 
Mosso I. and Mosso II.
900 Folsom Street and 250 Fifth Street
San Francisco
CA
463
371,072
 
 
 
JV-55%
 
Vista Belvedere
15 Red Hill Circle
Tiburon
CA
76
78,300
 
2004
1963
EPLP
50
Fox Plaza
1390 Market Street
San Francisco
CA
444
230,017
 
2013
1968
EPLP
45
 
 
 
3%
892
647,090
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Other
 
 
 
 
 
 
 
 
 
 
Tuscana
315 Mt. Oso
Tracy
CA
30
29,088
 
2007
2007
EPLP
6
Harvest Park
2327 Summercreek Drive
Santa Rosa
CA
104
116,628
 
2007
2004
EPLP
9
Chestnut Street Apartments
143 Chestnut Avenue
Santa Cruz
CA
96
87,640
 
2008
2002
EPLP
11
 
 
 
1%
230
233,356
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total Northern California
 
 
31%
            10,409
         8,885,588
 
 
 
 
29

1
ESSEX PROPERTY TRUST, INC. APARTMENT COMMUNITIES
Real Estate Information as of July 31, 2013

 
 
 
 
 
Square
 
Year
Year
Property
Age of
Property Name
Address
City
State
Units
Footage
 
Acquired
Built
Ownership
Property
 
 
 
 
 
 
 
 
 
 
 
SOUTHERN CALIFORNIA
Los Angeles County
 
 
 
 
 
 
 
 
 
 
Regency at Encino
15506 Moorpark Street
Encino
CA
75
78,487
 
2009
1989
EPLP
24
416 on Broadway
412 East Broadway
Glendale
CA
115
126,782
 
2010
2009
EPLP
4
Hampton Court
1136 N. Columbus Avenue
Glendale
CA
83
71,500
 
1999
1974
EPLP
39
Hampton Place
245 W. Loraine Street
Glendale
CA
132
141,500
 
1999
1970
EPLP
43
Marbrisa
1809 Termino Ave.
Long Beach
CA
202
122,800
 
2002
1987
EPLP
26
Pathways at Bixby Village
5945 E. Pacific Coast Hwy.
Long Beach
CA
296
197,700
 
1991
1975
EPLP
38
Bellerive
1921 Beloit Avenue
Los Angeles
CA
63
79,296
 
2011
2011
EPLP
2
Bunker Hill
222 and 234 S. Figueroa St.
Los Angeles
CA
456
346,600
 
1998
1968
EPLP
45
Cochran Apartments
612 South Cochran
Los Angeles
CA
58
51,400
 
1998
1989
EPLP
24
Gas Company Lofts
810 S. Flower Street
Los Angeles
CA
251
226,666
 
2013
2004
Wesco III
9
Kings Road
733 North Kings Road
Los Angeles
CA
196
132,100
 
1997
1979
EPLP
34
Marbella
600 South Detroit Street
Los Angeles
CA
60
50,108
 
2005
1991
EPLP
22
Belmont Station
1302 West 2nd St.
Los Angeles
CA
275
225,000
 
2009
2009
EPLP
4
Pacific Electric Lofts
610 South Main Street
Los Angeles
CA
314
277,980
 
2012
2006
Wesco I
7
Park Catalina
690 South Catalina Street
Los Angeles
CA
90
72,864
 
2012
2002
EPLP
11
Park Place
400 S. Detroit Street
Los Angeles
CA
60
48,000
 
1997
1988
EPLP
25
Windsor Court
401 S. Detroit Street
Los Angeles
CA
58
46,600
 
1997
1988
EPLP
25
Santee Court
716 S. Los Angeles Street
Los Angeles
CA
165
132,040
 
2010
2004
EPLP
9
Santee Village
743 South Santee Street
Los Angeles
CA
73
69,817
 
2011
2011
EPLP
2
Marina City Club
4333 Admiralty Way
Marina Del Rey
CA
101
127,200
 
2004
1971
EPLP
42
Mirabella
13701 Marina Point Drive
Marina Del Rey
CA
188
176,800
 
2000
2000
EPLP
13
Muse
5451 Vineland Avenue
North Hollywood
CA
152
135,292
 
2011
2011
EPLP
2
Monterra del Mar
280 E. Del Mar Boulevard
Pasadena
CA
123
74,400
 
1997
1972
EPLP
41
Monterra del Rey
350 Madison
Pasadena
CA
84
73,100
 
1999
1972
EPLP
41
Monterra del Sol
280 South Euclid
Pasadena
CA
85
69,200
 
1999
1972
EPLP
41
Fountain Park
13141 Fountain Park Drive
Playa Vista
CA
705
608,900
 
2004
2002
EPLP
11
Highridge
28125 Peacock Ridge Drive
Rancho Palos Verde
CA
255
290,200
 
1997
1972
DownREIT
41
Coldwater Canyon
4250 Codlwater Canyon
Studio City
CA
39
34,125
 
2007
1979
EPLP
34
Allegro
11945 Magnolia Blvd.
Valley Village
CA
97
127,812
 
2010
2010
EPLP
3
The Avery
12005 Albers Street
Valley Village
CA
121
129,393
 
 
 
EPLP
 
Walnut Heights
20700 San Jose Hills Road
Walnut
CA
163
146,700
 
2003
1964
EPLP
49
The Huxley
1216-1234 North La Brea Avenue
West Hollywood
CA
187
154,776
 
 
 
JV - 50%
 
The Dylan
1111 North La Brea Avenue
West Hollywood
CA
184
150,678
 
 
 
JV - 50%
 
Avondale at Warner Center
22222 Victory Blvd.
Woodland Hills
CA
446
331,000
 
1999
1970
EPLP
43
Reveal
21201 Kittridge Street
Woodland Hills
CA
438
414,892
 
2011
2010
Wesco I
3
 
 
 
17%
5,898
5,106,861
 
 
 
 
 
Ventura County
 
 
 
 
 
 
 
 
 
 
Camarillo Oaks
921 Paseo Camarillo
Camarillo
CA
564
459,000
 
1996
1985
EPLP
28
Camino Ruiz Square
105 Camino Ruiz
Camarillo
CA
160
105,448
 
2006
1990
EPLP
23
Arbors at Parc Rose
1500 Tulipan Circle
Oxnard
CA
373
503,196
 
2011
2001
Wesco I
12
Mariner's Place
711 South B Street
Oxnard
CA
105
77,200
 
2000
1987
EPLP
26
Tierra Vista
1750 Montevina Circle
Oxnard
CA
404
387,100
 
2001
2001
EPLP
12
Monterey Villas
1040 Kelp Lane
Oxnard
CA
122
122,100
 
1997
1974
EPLP
39
Meadowood
1733 Cochran Street
Simi Valley
CA
320
264,500
 
1996
1986
EPLP
27
Hidden Valley
5065 Hidden Park Court
Simi Valley
CA
324
310,900
 
2004
2004
DownREIT
9
Lofts at Pinehurst,The
1021 Scandia Avenue
Ventura
CA
118
71,100
 
1997
1971
EPLP
42
Hillcrest Park
1800 West Hillcrest Drive
Newbury Park
CA
608
521,900
 
1998
1973
EPLP
40
Pinehurst
3980 Telegraph Road
Ventura
CA
28
21,200
 
2004
1973
EPLP
40
Woodside Village
675 Providence Ave.
Ventura
CA
145
136,500
 
2004
1987
EPLP
26
 
 
 
10%
3,271
2,980,144
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Santa Barbara County
 
 
 
 
 
 
 
 
 
 
The Sweeps
775 Camino Del Sur Drive
Goleta
CA
91
 
 
2006
1967
EPLP
46
CBC
6721 El Colegio Drive
Goleta
CA
148
 
 
2006
1962
EPLP
51
Hope Ranch
3968-3974 & 3999 Via Lucero
Santa Barbara
CA
108
 
 
2007
1965/73
EPLP
48/40
 
 
 
1%
347
306,608
 
 
 
 
 
Orange County
 
 
 
 
 
 
 
 
 
 
Anavia
2045 South State College Blvd.
Anaheim
CA
250
312,343
 
2010
2009
EPLP
4
Barkley Apartments
2400 E. Lincoln Ave.
Anahiem
CA
161
139,800
 
2000
1984
DownREIT
29
Valley Park Apartments
17300 Euclid Ave.
Fountain Valley
CA
160
169,700
 
2001
1969
DownREIT
44
Capri at Sunny Hills
2341 Daphne Place
Fullerton
CA
100
128,100
 
2001
1961
DownREIT
52
Haver Hill
3100 East Yorba Linda Boulevard
Fullerton
CA
264
224,130
 
2012
1973
Wesco III
40
Wilshire Promenade
141 West Wilshire Avenue
Fullerton
CA
149
128,000
 
1997
1992
EPLP
21
Montejo Apartments
12911 Dale St.
Garden Grove
CA
124
103,200
 
2001
1974
DownREIT
39
Huntington Breakers
21270 Beach Boulevard
Huntington Beach
CA
342
241,700
 
1997
1984
EPLP
29
The Huntington
8400 Edinger Avenue
Huntington Beach
CA
276
202,256
 
2012
1975
EPLP
38
Axis 2300
2300 DuPont Drive
Irvine
CA
115
170,714
 
2010
2010
EPLP
3
Hillsborough Park
1501 South Beach Boulevard
La Habra
CA
235
215,500
 
1999
1999
EPLP
14
Trabuco Villas
25362 Mosswood Way
Lake Forest
CA
132
131,000
 
1997
1985
EPLP
28
Madrid Apartments
28401 Los Alisos Boulevard
Mission Viejo
CA
230
228,099
 
2012
2000
Wesco I
13
Fairway Apartments at Big Canyon
2 Pine Valley Lane
Newport Beach
CA
74
107,100
 
1999
1972
EPLP
41
Villa Angelina
201 E. Chapman Ave.
Placentia
CA
256
217,600
 
2001
1970
DownREIT
43
Brentwood Apartment Homes
2301 E. Santa Clara Ave.
Santa Ana
CA
140
154,800
 
2001
1970
DownREIT
43
Fairhaven Apartments
1300 E. Fairhaven
Santa Ana
CA
164
135,700
 
2001
1970
DownREIT
43
Essex Skyline at MacArthur Place
9 & 15 MacArthur Place
Santa Ana
CA
349
512,791
 
2010
2008
EPLP
5
 
 
 
10%
3,521
3,522,533
 
 
 
 
 
San Diego County
 
 
 
 
 
 
 
 
 
 
Alpine Village
2055 Arnold Way
Alpine
CA
301
254,400
 
2002
1971
EPLP
42
Bonita Cedars
5155 Cedarwood Rd.
Bonita
CA
120
120,800
 
2002
1983
EPLP
30
Cambridge
660 F. St.
Chula Vista
CA
40
22,100
 
2002
1965
EPLP
48
Mesa Village
5265 Clairemont Mesa Blvd.
Clairemont
CA
133
43,600
 
2002
1963
EPLP
50
Mira Monte
10360 Maya Linda Rd.
Mira Mesa
CA
355
262,600
 
2002
1982
EPLP
31
Country Villas
283 Douglas Drive
Oceanside
CA
180
179,700
 
2002
1976
EPLP
37
Mission Hills
218 Rancho Del Oro
Oceanside
CA
282
244,000
 
2005
1984
EPLP
29
CentrePointe
6466 Friars Road
San Diego
CA
224
126,700
 
1997
1974
EPLP
39
Summit Park
8563 Lake Murray Blvd.
San Diego
CA
300
229,400
 
2002
1972
EPLP
41
Vista Capri - North
3277 Berger Ave.
San Diego
CA
106
51,800
 
2002
1975
EPLP
38
Shadow Point
9830 Dale Ave.
Spring Valley
CA
172
131,200
 
2002
1983
EPLP
30
 
 
 
7%
2,213
1,666,300
 
 
 
 
 
Riverside County
 
 
 
 
 
 
 
 
 
 
Devonshire Apartments
2770 West Devonshire Ave.
Hemet
CA
276
207,200
 
2002
1988
EPLP
25
 
 
 
1%
276
207,200
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total Southern California
 
 
46%
15,526
13,789,646
 
 
 
 
28

2
ESSEX PROPERTY TRUST, INC. APARTMENT COMMUNITIES
Real Estate Information as of July 31, 2013

 
 
 
 
 
Square
 
Year
Year
Property
Age of
Property Name
Address
City
State
Units
Footage
 
Acquired
Built
Ownership
Property
 
 
 
 
 
 
 
 
 
 
 
SEATTLE METRO AREA
Cedar Terrace
3205 115th Ave. NE
Bellevue
WA
180
174,200
 
2005
1984
EPLP
29
Courtyard Off Main
136 102nd Avenue SE
Bellevue
WA
109
108,388
 
2010
2000
EPLP
13
Emerald Ridge
3010 118th Avenue SE
Bellevue
WA
180
144,000
 
1994
1987
EPLP
26
Foothill Commons
13800 NE 9th Place
Bellevue
WA
388
288,300
 
1990
1978
EPLP
35
Palisades, The
13808 NE 12th
Bellevue
WA
192
159,700
 
1990
1977
EPLP
36
Sammamish View
16160 SE Eastgate Way
Bellevue
WA
153
133,500
 
1994
1986
EPLP
27
Woodland Commons
13700 NE 10th Place
Bellevue
WA
302
217,878
 
1990
1978
EPLP
35
Canyon Pointe
1630 228th St. SE
Bothell
WA
250
210,400
 
2003
1990
EPLP
23
Inglenook Court
14220 Juanita Drive, NE
Bothell
WA
224
183,600
 
1994
1985
EPLP
28
Salmon Run at Perry Creek
2109 228th Street SE
Bothell
WA
132
117,100
 
2000
2000
EPLP
13
Stonehedge Village
14690 143rd Blvd., NE
Bothell
WA
196
214,800
 
1997
1986
EPLP
27
Highlands at Wynhaven
1460 NE Hawthorne Street
Issaquah
WA
333
424,674
 
2008
2000
EPLP
13
Park Hill at Issaquah
22516 SE 56th Street
Issaquah
WA
245
277,700
 
1999
1999
EPLP
14
Wandering Creek
12910 SE 240th
Kent
WA
156
124,300
 
1995
1986
EPLP
27
Ascent
12062 Slater Avenue NE
Kirkland
WA
90
75,840
 
2012
1988
EPLP
25
Bridle Trails
6600 130th Avenue, NE
Kirkland
WA
108
99,700
 
1997
1986
EPLP
27
Evergreen Heights
12233 NE 131st Way
Kirkland
WA
200
188,300
 
1997
1990
EPLP
23
Corbella at Juanita Bay
9520 NE 120th Street
Kirkland
WA
169
103,339
 
2010
1978
EPLP
35
Montebello
12000 131st Lane NE
Kirkland
WA
248
272,734
 
2012
1996
EPLP
17
Laurels at Mill Creek
1110 164th Street SE
Mill Creek
WA
164
134,300
 
1996
1981
EPLP
32
The Elliot at Mukilteo (fka Anchor Village)
9507 49th Avenue West
Mukilteo
WA
301
245,900
 
1997
1981
DownREIT
32
Castle Creek
7000 132nd Place, SE
Newcastle
WA
216
191,900
 
1998
1998
EPLP
15
Delano
7805, 7903 and 7935 170th Place NE
Redmond
WA
126
116,340
 
2011
2011/2005
EPLP
2/8
Elevation
17202-17325 NE 85th Place
Redmond
WA
157
138,916
 
2010
1986
EPLP
27
Vesta
18666 Redmond Way
Redmond
WA
440
381,675
 
2011
1998
Wesco I
15
Redmond Hill
6110 186th Place NE
Redmond
WA
442
350,275
 
2011
1985
Wesco I
28
Brighton Ridge
2307 NE 4th Street
Renton
WA
264
201,300
 
1996
1986
EPLP
27
Fairwood Pond
14700 SE Petrovitsky Rd.
Renton
WA
194
189,200
 
2004
1997
EPLP
16
Forest View
650 Duvall Ave. NE
Renton
WA
192
182,500
 
2003
1998
EPLP
15
Annaliese
118 6th Ave. N
Seattle
WA
56
48,216
 
2013
2009
EPLP
4
Fountain Court
2400 4th Street
Seattle
WA
320
207,000
 
2000
2000
EPLP
13
Joule
523 Broadway Avenue, East
Seattle
WA
295
191,109
 
2010
2010
JV - 99%
3
Linden Square
13530 Linden Avenue North
Seattle
WA
183
142,200
 
2000
1994
EPLP
19
Domaine
2483 Birch Avenue N
Seattle
WA
92
79,421
 
2012
2009
EPLP
4
Expo
100 Republican
Seattle
WA
275
190,176
 
2012
2012
JV - 50%
1
The Bernard
115 Warren Avenue North
Seattle
WA
63
43,151
 
2011
2008
EPLP
5
The Cairns
420 Yale Avenue
Seattle
WA
100
70,806
 
2007
2006
EPLP
7
Wharfside Pointe
3811 14th Avenue West
Seattle
WA
142
119,200
 
1994
1990
EPLP
23
Total Seattle Metro Area
 
 
23%
7,877
6,742,038
 
 
 
 
20
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
164
Apartment Communities
 
100%
33,812
29,417,272
(1)
 
 
 
 
9
Apartment Communities Under Construction
 
2,532
2,137,253
(2)
 
 
 
 
 
 
Definitions for Property Ownership
Avg. square footage
870
EPLP
The Company has a 100% ownership in the community.
Avg. units per property
206
Fund II
The community is owned by Fund II.  The Company has a 28.2% interest in Fund II which is accounted for using the equity method of accounting.
Avg. age of property
26
Wesco I
The community is owned by Wesco I, LLC.  The Company has a 50% interest in Wesco I, LLC, which is accounted for using the equity method of accounting.
(1) Includes 336,865 square feet of retail or commercial space
Wesco III
The community is owned by Wesco III, LLC.  The Company has a 50% interest in Wesco III, LLC, which is accounted for using the equity method of accounting.
(2) Includes 36,225 square feet of estimated retail or commercial space
DownREIT
The Company holds a 1% special limited partner interest in the partnerships which owns the community.  In accordance with GAAP, the Company consolidates this community.
 
JV - 99%
The Company has a 99% ownership in this development and is consolidated.
 
JV - 81.5%
The Company has a 81.5% ownership in this community and is consolidated.
 
JV-55%
The Company has a 55.0% ownership in this community and is not consolidated.
 
JV - 50%
The Company has a 50% ownership in this community and is not consolidated.
 
OTHER REAL ESTATE ASSETS
Office/Retail Buildings
 
 
 
 
 
 
 
 
 
 
Essex Corporate Headquarter Bldg.
925 / 935 E. Meadow Dr.
Palo Alto
CA
 
31,900
 
1997 / 2007
1988 / 1962
EPLP
 
Derian Office Building
17461 Derian Av.
Irvine
CA
 
110,000
 
2000
1983
EPLP
 
Hollywood
6230 Sunset Blvd.
Los Angeles
CA
 
35,000
 
2006
1938
EPLP
 
Santa Clara Retail
3700 El Camino Real
Santa Clara
CA
 
139,000
 
2011
1970
EPLP
 
 
 
 
 
 
315,900
 
 
 
 
 
 
 
3

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