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

Attached files

file	filename
EX-99.1 - EXHIBIT 99.1 - ESSEX PROPERTY TRUST, INC.	ex99_1.htm
8-K - ESSEX PROPERTY TRUST, INC. 8-K 12-31-2014 - ESSEX PROPERTY TRUST, INC.	form8k.htm

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 IndebtednessDivided 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

S-15

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