Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2015 | Aug. 03, 2015 | |
Entity Information [Line Items] | ||
Entity Registrant Name | ESSEX PROPERTY TRUST INC | |
Entity Central Index Key | 920,522 | |
Current Fiscal Year End Date | --12-31 | |
Entity Current Reporting Status | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 65,744,325 | |
Document Fiscal Year Focus | 2,015 | |
Document Fiscal Period Focus | Q2 | |
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Jun. 30, 2015 | |
ESSEX PORTFOLIO LP [Member] | ||
Entity Information [Line Items] | ||
Entity Registrant Name | ESSEX PORTFOLIO LP | |
Current Fiscal Year End Date | --12-31 | |
Entity Current Reporting Status | Yes | |
Entity Filer Category | Non-accelerated Filer |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 |
Rental properties: | ||
Land and land improvements | $ 2,569,733 | $ 2,424,930 |
Buildings and improvements | 9,700,056 | 8,819,751 |
Total rental properties | 12,269,789 | 11,244,681 |
Less accumulated depreciation | (1,758,887) | (1,564,806) |
Net real estate | 10,510,902 | 9,679,875 |
Real estate under development | 220,911 | 429,096 |
Co-investments | 1,044,208 | 1,042,423 |
Real estate held for sale, net | 0 | 56,300 |
Total real estate | 11,776,021 | 11,207,694 |
Cash and cash equivalents-unrestricted | 30,242 | 25,610 |
Cash and cash equivalents-restricted | 34,910 | 70,139 |
Marketable securities and other investments | 121,244 | 117,240 |
Notes and other receivables | 25,676 | 24,923 |
Acquired in place lease value | 25,907 | 47,748 |
Prepaid expenses and other assets | 31,004 | 33,378 |
Total assets | 12,045,004 | 11,526,732 |
Liabilities [Abstract] | ||
Mortgage notes payable, net | 2,247,463 | 2,234,317 |
Unsecured debt, net | 3,093,106 | 2,603,548 |
Lines of credit, net | 28,762 | 242,824 |
Accounts payable and accrued liabilities | 146,251 | 135,162 |
Construction payable | 26,596 | 30,892 |
Dividends payable | 99,687 | 88,221 |
Other liabilities | 34,669 | 32,444 |
Total liabilities | $ 5,676,534 | $ 5,367,408 |
Commitments and contingencies | ||
Redeemable noncontrolling interest | $ 23,830 | $ 23,256 |
Equity: | ||
Common stock; $0.0001 par value, 656,020,000 shares authorized; 65,042,681 and 63,682,646 shares issued and outstanding, respectively | 6 | 6 |
Cumulative redeemable 7.125% Series H preferred stock at liquidation value | 73,750 | 73,750 |
Additional paid-in capital | 6,941,629 | 6,651,165 |
Distributions in excess of accumulated earnings | (731,181) | (650,797) |
Accumulated other comprehensive loss, net | (50,152) | (51,452) |
Total stockholders' equity | 6,234,052 | 6,022,672 |
Noncontrolling interest | 110,588 | 113,396 |
Total equity | 6,344,640 | 6,136,068 |
Total liabilities and equity | 12,045,004 | 11,526,732 |
Essex Portfolio, L.P. [Member] | ||
Rental properties: | ||
Land and land improvements | 2,569,733 | 2,424,930 |
Buildings and improvements | 9,700,056 | 8,819,751 |
Total rental properties | 12,269,789 | 11,244,681 |
Less accumulated depreciation | (1,758,887) | (1,564,806) |
Net real estate | 10,510,902 | 9,679,875 |
Real estate under development | 220,911 | 429,096 |
Co-investments | 1,044,208 | 1,042,423 |
Real estate held for sale, net | 0 | 56,300 |
Total real estate | 11,776,021 | 11,207,694 |
Cash and cash equivalents-unrestricted | 30,242 | 25,610 |
Cash and cash equivalents-restricted | 34,910 | 70,139 |
Marketable securities and other investments | 121,244 | 117,240 |
Notes and other receivables | 25,676 | 24,923 |
Acquired in place lease value | 25,907 | 47,748 |
Prepaid expenses and other assets | 31,004 | 33,378 |
Total assets | 12,045,004 | 11,526,732 |
Liabilities [Abstract] | ||
Mortgage notes payable, net | 2,247,463 | 2,234,317 |
Unsecured debt, net | 3,093,106 | 2,603,548 |
Lines of credit, net | 28,762 | 242,824 |
Accounts payable and accrued liabilities | 146,251 | 135,162 |
Construction payable | 26,596 | 30,892 |
Dividends payable | 99,687 | 88,221 |
Other liabilities | 34,669 | 32,444 |
Total liabilities | $ 5,676,534 | $ 5,367,408 |
Commitments and contingencies | ||
Redeemable noncontrolling interest | $ 23,830 | $ 23,256 |
Equity: | ||
General Partner | 6,284,204 | 6,074,124 |
Common equity (2,181,076 and 2,168,158 units issued and outstanding, respectively) | 46,963 | 48,665 |
Accumulated other comprehensive loss, net | (48,012) | (49,356) |
Total partners' capital | 6,283,155 | 6,073,433 |
Noncontrolling interest | 61,485 | 62,635 |
Total capital | 6,344,640 | 6,136,068 |
Total liabilities and equity | 12,045,004 | 11,526,732 |
Essex Portfolio, L.P. [Member] | General Partner [Member] | Common Capital [Member] | ||
Equity: | ||
General Partner | 6,212,995 | 6,002,915 |
Total capital | 6,212,995 | 6,002,915 |
Essex Portfolio, L.P. [Member] | General Partner [Member] | Preferred Capital [Member] | ||
Equity: | ||
General Partner | 71,209 | 71,209 |
Total capital | $ 71,209 | $ 71,209 |
Condensed Consolidated Balance3
Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2015 | Dec. 31, 2014 | |
Common stock, par value (in dollars per share) | $ 0.0001 | $ 0.0001 |
Common stock, shares authorized (in shares) | 656,020,000 | 656,020,000 |
Common stock, shares issued (in shares) | 65,042,681 | 63,682,646 |
Common stock, shares outstanding (in shares) | 65,042,681 | 63,682,646 |
Series H Preferred Interest [Member] | ||
Preferred stock, stated interest percentage | 7.125% | 7.125% |
Essex Portfolio, L.P. [Member] | Series H Preferred Interest [Member] | ||
Preferred interest, liquidation value | $ 73,750 | $ 73,750 |
Preferred stock, stated interest percentage | 7.125% | 7.125% |
Essex Portfolio, L.P. [Member] | General Partner [Member] | ||
Common stock, shares issued (in shares) | 65,042,681 | 63,682,646 |
Common stock, shares outstanding (in shares) | 65,042,681 | 63,682,646 |
Essex Portfolio, L.P. [Member] | Limited Partners [Member] | ||
Common stock, shares issued (in shares) | 2,181,076 | 2,168,158 |
Common stock, shares outstanding (in shares) | 2,181,076 | 2,168,158 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Income and Comprehensive Income (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Revenues: | ||||
Rental and other property | $ 294,101 | $ 256,952 | $ 574,330 | $ 416,302 |
Management and other fees from affiliates | 2,061 | 2,836 | 4,705 | 4,495 |
Total revenues | 296,162 | 259,788 | 579,035 | 420,797 |
Expenses: | ||||
Property operating, excluding real estate taxes | 57,400 | 53,213 | 113,019 | 90,180 |
Real estate taxes | 32,677 | 30,345 | 64,229 | 45,684 |
Depreciation and amortization | 113,731 | 101,292 | 220,638 | 151,604 |
General and administrative | 9,549 | 9,558 | 20,094 | 17,141 |
Merger and integration expenses | 1,410 | 26,497 | 3,798 | 42,556 |
Acquisition costs | 429 | 529 | 976 | 717 |
Total expenses | 215,196 | 221,434 | 422,754 | 347,882 |
Earnings from operations | 80,966 | 38,354 | 156,281 | 72,915 |
Interest expense | (50,802) | (42,151) | (98,348) | (71,192) |
Interest and other income | 3,254 | 2,814 | 7,453 | 5,693 |
Equity income in co-investments | 4,472 | 5,629 | 8,783 | 16,155 |
Gains on sale of real estate and land | 0 | 0 | 7,112 | 7,481 |
Gain on remeasurement of co-investment | 12,652 | 0 | 34,014 | 0 |
Net income | 50,542 | 4,646 | 115,295 | 31,052 |
Net income attributable to noncontrolling interest | (3,674) | (2,125) | (7,750) | (5,251) |
Net income attributable to controlling interest | 46,868 | 2,521 | 107,545 | 25,801 |
Dividends to preferred stockholders | (1,313) | (1,314) | (2,627) | (2,682) |
Net income available to common stockholders | 45,555 | 1,207 | 104,918 | 23,119 |
Comprehensive income | 51,287 | 7,306 | 116,639 | 38,035 |
Comprehensive income attributable to noncontrolling interest | (3,703) | (2,184) | (7,794) | (5,556) |
Comprehensive income attributable to controlling interest | $ 47,584 | $ 5,122 | $ 108,845 | $ 32,479 |
Basic: | ||||
Net income available to common stockholders (in dollars per share) | $ 0.70 | $ 0.02 | $ 1.63 | $ 0.46 |
Weighted average number of shares outstanding during the period (in shares) | 64,810,184 | 61,884,963 | 64,499,545 | 49,857,233 |
Diluted: | ||||
Net income available to common stockholders (in dollars per share) | $ 0.70 | $ 0.02 | $ 1.62 | $ 0.46 |
Weighted average number of shares outstanding during the period (in shares) | 64,972,852 | 62,059,762 | 64,677,521 | 50,087,161 |
Dividends per common share (in dollars per share) | $ 1.44 | $ 1.30 | $ 2.88 | $ 2.51 |
Essex Portfolio, L.P. [Member] | ||||
Revenues: | ||||
Rental and other property | $ 294,101 | $ 256,952 | $ 574,330 | $ 416,302 |
Management and other fees from affiliates | 2,061 | 2,836 | 4,705 | 4,495 |
Total revenues | 296,162 | 259,788 | 579,035 | 420,797 |
Expenses: | ||||
Property operating, excluding real estate taxes | 57,400 | 53,213 | 113,019 | 90,180 |
Real estate taxes | 32,677 | 30,345 | 64,229 | 45,684 |
Depreciation and amortization | 113,731 | 101,292 | 220,638 | 151,604 |
General and administrative | 9,549 | 9,558 | 20,094 | 17,141 |
Merger and integration expenses | 429 | 529 | 976 | 717 |
Acquisition costs | 1,410 | 26,497 | 3,798 | 42,556 |
Total expenses | 215,196 | 221,434 | 422,754 | 347,882 |
Earnings from operations | 80,966 | 38,354 | 156,281 | 72,915 |
Interest expense | (50,802) | (42,151) | (98,348) | (71,192) |
Interest and other income | 3,254 | 2,814 | 7,453 | 5,693 |
Equity income in co-investments | 4,472 | 5,629 | 8,783 | 16,155 |
Gains on sale of real estate and land | 0 | 0 | 7,112 | 7,481 |
Gain on remeasurement of co-investment | 12,652 | 0 | 34,014 | 0 |
Net income | 50,542 | 4,646 | 115,295 | 31,052 |
Net income attributable to noncontrolling interest | (2,141) | (1,916) | (4,106) | (3,625) |
Net income attributable to controlling interest | 48,401 | 2,730 | 111,189 | 27,427 |
Dividends to preferred stockholders | (1,313) | (1,314) | (2,627) | (2,682) |
Net income available to common stockholders | 47,088 | 1,416 | 108,562 | 24,745 |
Comprehensive income | 51,287 | 7,306 | 116,639 | 38,035 |
Comprehensive income attributable to noncontrolling interest | (2,141) | (1,916) | (4,106) | (3,625) |
Comprehensive income attributable to controlling interest | $ 49,146 | $ 5,390 | $ 112,533 | $ 34,410 |
Basic: | ||||
Net income available to common stockholders (in dollars per share) | $ 0.70 | $ 0.02 | $ 1.63 | $ 0.47 |
Weighted average number of shares outstanding during the period (in shares) | 66,992,209 | 64,058,505 | 66,682,708 | 52,127,261 |
Diluted: | ||||
Net income available to common stockholders (in dollars per share) | $ 0.70 | $ 0.02 | $ 1.62 | $ 0.47 |
Weighted average number of shares outstanding during the period (in shares) | 67,154,877 | 64,233,304 | 66,860,684 | 52,357,189 |
Dividends per common share (in dollars per share) | $ 1.44 | $ 1.30 | $ 2.88 | $ 2.51 |
Condensed Consolidated Stateme5
Condensed Consolidated Statement of Equity (Unaudited) - 6 months ended Jun. 30, 2015 - USD ($) shares in Thousands, $ in Thousands | Total | Series H Preferred Stock [Member] | Common Stock [Member] | Additional Paid-in Capital [Member] | Distributions in Excess of Accumulated Earnings [Member] | Accumulated Other Comprehensive Income (Loss) [Member] | Noncontrolling Interest [Member] |
Balances at Dec. 31, 2014 | $ 6,136,068 | $ 73,750 | $ 6 | $ 6,651,165 | $ (650,797) | $ (51,452) | $ 113,396 |
Balances (in shares) at Dec. 31, 2014 | 2,950 | 63,683 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income | 115,295 | 107,545 | 7,750 | ||||
Change in fair value of derivatives and amortization of swap settlements | 3,465 | 3,354 | 111 | ||||
Change in fair value of marketable securities | (2,121) | (2,054) | (67) | ||||
Issuance of common stock under: | |||||||
Stock option and restricted stock plans | 18,346 | 18,346 | |||||
Stock option and restricted stock plans (in shares) | 140 | ||||||
Sale of common stock | 272,664 | 272,664 | |||||
Sale of common stock (in shares) | 1,220 | ||||||
Equity based compensation costs | 3,457 | 1,921 | 1,536 | ||||
Reclassification of noncontrolling interest to redeemable noncontrolling interest | (144) | 0 | (144) | ||||
Changes in the redemption value of redeemable noncontrolling interest | (384) | (384) | 0 | ||||
Distributions to noncontrolling interest | (11,589) | 0 | (11,589) | ||||
Redemptions of noncontrolling interest | (2,488) | (2,083) | (405) | ||||
Common and preferred stock dividends | (187,929) | (187,929) | |||||
Balances at Jun. 30, 2015 | $ 6,344,640 | $ 73,750 | $ 6 | $ 6,941,629 | $ (731,181) | $ (50,152) | $ 110,588 |
Balances (in shares) at Jun. 30, 2015 | 2,950 | 65,043 |
Condensed Consolidated Stateme6
Condensed Consolidated Statement of Capital (Unaudited) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended |
Jun. 30, 2015 | Jun. 30, 2015 | |
Increase (Decrease) in Partners' Capital [Roll Forward] | ||
Net income | $ 50,542 | $ 115,295 |
Change in fair value of derivatives and amortization of swap settlements | 3,465 | |
Change in fair value of marketable securities | (2,121) | |
Issuance of common stock under: | ||
Sale of common stock by general partner | 272,664 | |
Reclassification of noncontrolling interest to redeemable noncontrolling interest | (144) | |
Distributions to noncontrolling interest | (11,589) | |
Redemptions | (2,488) | |
Essex Portfolio, L.P. [Member] | ||
Increase (Decrease) in Partners' Capital [Roll Forward] | ||
Balances | 6,136,068 | |
Net income | 50,542 | 115,295 |
Change in fair value of derivatives and amortization of swap settlements | 3,465 | |
Change in fair value of marketable securities | (2,121) | |
Issuance of common stock under: | ||
General partner's stock based compensation | 19,882 | |
Sale of common stock by general partner | 272,664 | |
Equity based compensation costs | 1,921 | |
Changes in redemption value of redeemable noncontrolling interest | (384) | |
Reclassification of noncontrolling interest to redeemable noncontrolling interest | (144) | |
Distributions to noncontrolling interest | (5,112) | |
Redemptions | (2,488) | |
Distributions declared | (194,406) | |
Balances | 6,344,640 | 6,344,640 |
Essex Portfolio, L.P. [Member] | Common Equity [Member] | General Partner [Member] | ||
Increase (Decrease) in Partners' Capital [Roll Forward] | ||
Balances | $ 6,002,915 | |
Balances (in shares) | 63,683 | |
Net income | $ 104,918 | |
Issuance of common stock under: | ||
General partner's stock based compensation | $ 18,346 | |
General partner's stock based compensation (in shares) | 140 | |
Sale of common stock by general partner | $ 272,664 | |
Sale of common stock by general partner (in shares) | 1,220 | |
Equity based compensation costs | $ 1,921 | |
Changes in redemption value of redeemable noncontrolling interest | (384) | |
Redemptions | (2,083) | |
Distributions declared | (185,302) | |
Balances | $ 6,212,995 | $ 6,212,995 |
Balances (in shares) | 65,043 | 65,043 |
Essex Portfolio, L.P. [Member] | Common Equity [Member] | Limited Partner [Member] | ||
Increase (Decrease) in Partners' Capital [Roll Forward] | ||
Balances | $ 48,665 | |
Balances (in shares) | 2,168 | |
Net income | $ 3,644 | |
Issuance of common stock under: | ||
General partner's stock based compensation | $ 1,536 | |
General partner's stock based compensation (in shares) | 17 | |
Redemptions | $ (405) | |
Redemptions (in shares) | (4) | |
Distributions declared | $ (6,477) | |
Balances | $ 46,963 | $ 46,963 |
Balances (in shares) | 2,181 | 2,181 |
Essex Portfolio, L.P. [Member] | Preferred Equity [Member] | General Partner [Member] | ||
Increase (Decrease) in Partners' Capital [Roll Forward] | ||
Balances | $ 71,209 | |
Net income | 2,627 | |
Issuance of common stock under: | ||
Distributions declared | (2,627) | |
Balances | $ 71,209 | 71,209 |
Essex Portfolio, L.P. [Member] | Accumulated Other Comprehensive (Loss) Income [Member] | ||
Increase (Decrease) in Partners' Capital [Roll Forward] | ||
Balances | (49,356) | |
Change in fair value of derivatives and amortization of swap settlements | 3,465 | |
Change in fair value of marketable securities | (2,121) | |
Issuance of common stock under: | ||
Balances | (48,012) | (48,012) |
Essex Portfolio, L.P. [Member] | Noncontrolling Interest [Member] | ||
Increase (Decrease) in Partners' Capital [Roll Forward] | ||
Balances | 62,635 | |
Net income | 4,106 | |
Issuance of common stock under: | ||
Reclassification of noncontrolling interest to redeemable noncontrolling interest | (144) | |
Distributions to noncontrolling interest | (5,112) | |
Balances | $ 61,485 | $ 61,485 |
Condensed Consolidated Stateme7
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2014 | |
Cash flows from operating activities: | ||
Net income | $ 115,295 | $ 31,052 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 220,638 | 151,604 |
Amortization of discount on marketable securities | (5,777) | (3,965) |
Amortization of (premium) discount and debt financing costs, net | (11,125) | (846) |
Gain on sale of marketable securities | 0 | (886) |
Company's share of gain on the sales of co-investment | (469) | (3,211) |
Earnings from co-investments | (8,314) | (12,944) |
Operating distributions from co-investments | 14,804 | 12,091 |
Gains on the sales of real estate and land | (7,112) | (7,481) |
Non cash merger and integration expenses | 0 | 7,562 |
Equity-based compensation | 3,457 | 3,625 |
Gain on remeasurement of co-investments | (34,014) | 0 |
Changes in operating assets and liabilities: | ||
Prepaid expense, receivables and other assets | (6,646) | 2,425 |
Accounts payable and accrued liabilities | 4,924 | 9,299 |
Other liabilities | 1,387 | 665 |
Net cash provided by operating activities | 287,048 | 188,990 |
Additions to real estate: | ||
Acquisitions of real estate and acquisition related capital expenditures | (314,890) | (108,820) |
Redevelopment | (41,796) | (31,470) |
Development acquisitions of and additions to real estate under development | (122,377) | (58,899) |
Capital expenditures on rental properties | (24,673) | (13,710) |
Acquisition of membership interest in co-investments | (115,724) | 0 |
Proceeds from insurance for property losses | 11,735 | 10,000 |
Proceeds from dispositions of real estate | 74,485 | 14,123 |
BRE merger consideration paid | 0 | (555,826) |
Proceeds from dispositions of co-investments | 11,072 | 13,900 |
Contributions to co-investments | (97,512) | (58,029) |
Changes in restricted cash and refundable deposits | 49,808 | (3,606) |
Purchases of marketable securities | (7,250) | (14,341) |
Sales and maturities of marketable securities | 1,968 | 5,192 |
Collections of notes and other receivables | 0 | 56,750 |
Non-operating distributions from co-investments | 0 | 8,599 |
Net cash used in investing activities | (575,154) | (736,137) |
Cash flows from financing activities: | ||
Borrowings under debt agreements | 923,431 | 1,321,044 |
Repayment of debt | (730,712) | (1,077,210) |
Additions to deferred charges | (4,456) | (16,401) |
Net proceeds from issuance of common stock | 272,664 | 278,334 |
Net proceeds from stock options exercises | 18,346 | 5,503 |
Distributions to noncontrolling interest | (11,033) | (7,510) |
Redemption of noncontrolling interest | (2,488) | (2,550) |
Common and preferred stock dividends paid | (177,019) | (94,961) |
Net cash provided by financing activities | 288,733 | 406,249 |
Cash acquired from the BRE merger | 0 | 140,353 |
Cash acquired in consolidation of co-investment | 4,005 | 0 |
Net increase (decrease) in cash and cash equivalents | 4,632 | (545) |
Cash and cash equivalents at beginning of period | 25,610 | 18,491 |
Cash and cash equivalents at end of period | 30,242 | 17,946 |
Supplemental disclosure of cash flow information: | ||
Cash paid for interest, net of $8.3 million and $11.7 million capitalized in 2015 and 2014, respectively | 86,347 | 44,437 |
Supplemental disclosure of noncash investing and financing activities: | ||
Issuance of Operating Partnership units for contributed properties | 0 | 1,419,816 |
Retirement of Operating Partnership units | 0 | (1,419,816) |
Transfer from real estate under development to rental properties | 300,751 | 4,580 |
Transfer from real estate under development to co-investments | 3,780 | 49,776 |
Reclassifications of and changes in redeemable noncontrolling interest from additional paid in capital and noncontrolling interest | 574 | 18,766 |
Debt assumed in connection with acquisition of co-investment | 114,435 | 0 |
Essex Portfolio, L.P. [Member] | ||
Cash flows from operating activities: | ||
Net income | 115,295 | 31,052 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 220,638 | 151,604 |
Amortization of discount on marketable securities | (5,777) | (3,965) |
Amortization of (premium) discount and debt financing costs, net | (11,125) | (846) |
Gain on sale of marketable securities | 0 | (886) |
Company's share of gain on the sales of co-investment | (469) | (3,211) |
Earnings from co-investments | (8,314) | (12,944) |
Operating distributions from co-investments | 14,804 | 12,091 |
Gains on the sales of real estate and land | (7,112) | (7,481) |
Non cash merger and integration expenses | 0 | 7,562 |
Equity-based compensation | 3,457 | 3,625 |
Gain on remeasurement of co-investments | (34,014) | 0 |
Changes in operating assets and liabilities: | ||
Prepaid expense, receivables and other assets | (6,646) | 2,425 |
Accounts payable and accrued liabilities | 4,924 | 9,299 |
Other liabilities | 1,387 | 665 |
Net cash provided by operating activities | 287,048 | 188,990 |
Additions to real estate: | ||
Acquisitions of real estate and acquisition related capital expenditures | (314,890) | (108,820) |
Redevelopment | (41,796) | (31,470) |
Development acquisitions of and additions to real estate under development | (122,377) | (58,899) |
Capital expenditures on rental properties | (24,673) | (13,710) |
Acquisition of membership interest in co-investments | (115,724) | 0 |
Proceeds from insurance for property losses | 11,735 | 10,000 |
Proceeds from dispositions of real estate | 74,485 | 14,123 |
BRE merger consideration paid | 0 | (555,826) |
Proceeds from dispositions of co-investments | 11,072 | 13,900 |
Contributions to co-investments | (97,512) | (58,029) |
Changes in restricted cash and refundable deposits | 49,808 | (3,606) |
Purchases of marketable securities | (7,250) | (14,341) |
Sales and maturities of marketable securities | 1,968 | 5,192 |
Collections of notes and other receivables | 0 | 56,750 |
Non-operating distributions from co-investments | 0 | 8,599 |
Net cash used in investing activities | (575,154) | (736,137) |
Cash flows from financing activities: | ||
Borrowings under debt agreements | 923,431 | 1,321,044 |
Repayment of debt | (730,712) | (1,077,210) |
Additions to deferred charges | (4,456) | (16,401) |
Net proceeds from issuance of common stock | 272,664 | 278,334 |
Net proceeds from stock options exercises | 18,346 | 5,503 |
Distributions to noncontrolling interest | (4,884) | (2,045) |
Redemption of noncontrolling interest | (2,488) | (414) |
Common and preferred stock dividends paid | (183,168) | (102,562) |
Net cash provided by financing activities | 288,733 | 406,249 |
Cash acquired from the BRE merger | 0 | 140,353 |
Cash acquired in consolidation of co-investment | 4,005 | 0 |
Net increase (decrease) in cash and cash equivalents | 4,632 | (545) |
Cash and cash equivalents at beginning of period | 25,610 | 18,491 |
Cash and cash equivalents at end of period | 30,242 | 17,946 |
Supplemental disclosure of cash flow information: | ||
Cash paid for interest, net of $8.3 million and $11.7 million capitalized in 2015 and 2014, respectively | 86,347 | 44,437 |
Supplemental disclosure of noncash investing and financing activities: | ||
Issuance of Operating Partnership units for contributed properties | 0 | 1,419,816 |
Retirement of Operating Partnership units | 0 | (1,419,816) |
Transfer from real estate under development to rental properties | 300,751 | 4,580 |
Transfer from real estate under development to co-investments | 3,780 | 47,776 |
Reclassifications of and changes in redeemable noncontrolling interest from additional paid in capital and noncontrolling interest | 574 | 18,766 |
Debt assumed in connection with acquisition of co-investment | $ 114,435 | $ 0 |
Condensed Consolidated Stateme8
Condensed Consolidated Statements of Cash Flows (Unaudited) (Parenthetical) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2014 | |
Supplemental disclosure of cash flow information: | ||
Cash paid for interest, capitalized | $ 8.3 | $ 11.7 |
Essex Portfolio, L.P. [Member] | ||
Supplemental disclosure of cash flow information: | ||
Cash paid for interest, capitalized | $ 8.3 | $ 11.7 |
Organization and Basis of Prese
Organization and Basis of Presentation | 6 Months Ended |
Jun. 30, 2015 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization and Basis of Presentation | Organization and Basis of Presentation The accompanying unaudited condensed consolidated financial statements present the accounts of Essex Property Trust, Inc. (“Essex” or the “Company”), which include the accounts of the Company and Essex Portfolio, L.P. and subsidiaries (the “Operating Partnership,” which holds the operating assets of the Company), prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) for interim financial information and in accordance with the instructions to Form 10-Q. In the opinion of management, all adjustments necessary for a fair presentation of the financial position, results of operations and cash flows for the periods presented have been included and are normal and recurring in nature. These unaudited condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements included in the Company's annual report on Form 10-K for the year ended December 31, 2014 . All significant intercompany balances and transactions have been eliminated in the condensed consolidated financial statements. Certain reclassifications have been made to conform to the current year’s presentation. The unaudited condensed consolidated financial statements for the three and six months ended June 30, 2015 and 2014 include the accounts of the Company and the Operating Partnership. Essex is the sole general partner in the Operating Partnership, with a 96.8% general partnership interest as of June 30, 2015 . Total Operating Partnership limited partnership units outstanding were 2,181,076 and 2,168,158 as of June 30, 2015 and December 31, 2014 , respectively, and the redemption value of the units, based on the closing price of the Company’s common stock totaled $463.5 million and $447.9 million , as of June 30, 2015 and December 31, 2014 , respectively. As of June 30, 2015 , the Company owned or had ownership interests in 245 apartment communities, aggregating 58,768 units, excluding the Company’s ownership in preferred interest co-investments, (collectively, the “Communities”, and individually, a “Community”), four commercial buildings and nine active developments (collectively, the “Portfolio”). The Communities are located in Southern California (primarily Los Angeles, Orange, San Diego, and Ventura counties), Northern California (the San Francisco Bay Area) and the Seattle metropolitan areas. New Accounting Pronouncements In February 2015, the FASB issued ASU No. 2015-02 "Consolidation (Topic 810): Amendments to the Consolidation Analysis," which provides new consolidation guidance and makes changes to both the variable interest model and the voting model. Among other changes, the new standard specifically eliminates the presumption in the current voting model that a general partner controls a limited partnership or similar entity unless that presumption can be overcome. Generally, only a single limited partner that is able to exercise substantive kick-out rights will consolidate. The new standard will be effective for the Company beginning on January 1, 2016 and early adoption is permitted, including adoption in an interim period. The new standard must be applied using a modified retrospective approach by recording a cumulative-effect adjustment to equity/capital as of the beginning of the period of adoption or retrospectively to each period presented. The Company has not yet selected a transition method and is currently evaluating the impact of adopting the new standard on its consolidated results of operations and financial position. In April 2015, the FASB issued ASU No. 2015-03 "Simplifying the Presentation of Debt Issuance Costs," which requires companies to present debt financing costs as a direct deduction from the carrying amount of the associated debt liability rather than as an asset, consistent with the presentation of debt discounts on the consolidated balance sheets. The new standard will be effective for the Company beginning on January 1, 2016 and early adoption is permitted. The new standard must be applied retrospectively to all prior periods presented in the consolidated financial statements. The Company adopted this standard during the second quarter of 2015. This adoption resulted in a reclassification of $32.1 million and $29.4 million in debt issuance costs, net of accumulated amortization from an asset to a reduction to associated debt liabilities as of June 30, 2015 and December 31, 2014, respectively. Marketable Securities The Company reports its available for sale securities at fair value, based on quoted market prices (Level 2 for the unsecured bonds and Level 1 for the common stock and investment funds, as defined by the Financial Accounting Standards Board (“FASB”) standard for fair value measurements), and any unrealized gain or loss is recorded as other comprehensive income (loss). Realized gains and losses, interest and dividend income, and amortization of purchase discounts are included in interest and other income on the condensed consolidated statements of income and comprehensive income. As of June 30, 2015 and December 31, 2014 , marketable securities consisted primarily of investment-grade unsecured bonds, common stock, investments in mortgage backed securities and investment funds that invest in US treasury or agency securities. As of June 30, 2015 and December 31, 2014 , the Company classified its investments in mortgage backed securities, which mature through November 2019 and September 2020, as held to maturity, and accordingly, these securities are stated at their amortized cost. As of June 30, 2015 and December 31, 2014 , marketable securities consist of the following ($ in thousands): June 30, 2015 Amortized Cost Gross Unrealized Gain Carrying Value Available for sale: Investment-grade unsecured bonds $ 8,746 $ 149 $ 8,895 Investment funds - US treasuries 3,769 6 3,775 Common stock and stock funds 31,755 3,076 34,831 Held to maturity: Mortgage backed securities 73,743 — 73,743 Total - Marketable securities and other investments $ 118,013 $ 3,231 $ 121,244 December 31, 2014 Amortized Cost Gross Unrealized Gain Carrying Value Available for sale: Investment-grade unsecured bonds $ 9,435 $ 145 $ 9,580 Investment funds - US treasuries 3,769 3 3,772 Common stock and stock funds 25,755 5,137 30,892 Held to maturity: Mortgage backed securities 67,996 — 67,996 Total - marketable securities $ 106,955 $ 5,285 $ 112,240 Other investments 5,000 — 5,000 Total - Marketable securities and other investments $ 111,955 $ 5,285 $ 117,240 The Company uses the specific identification method to determine the cost basis of a security sold and to reclassify amounts from accumulated other comprehensive income for securities sold. For the six months ended June 30, 2015 and 2014 , the proceeds from sales of available for sale securities totaled $2.0 million and $5.2 million , respectively, which resulted in no realized gains or losses and gains of $0.9 million , respectively. Variable Interest Entities The Company consolidates 19 DownREIT limited partnerships (comprising twelve communities) since the Company is the primary beneficiary of these variable interest entities (“VIEs”). Total DownREIT units outstanding were 963,789 and 974,790 as of June 30, 2015 and December 31, 2014 respectively, and the redemption value of the units, based on the closing price of the Company’s common stock totaled $204.8 million and $201.4 million , as of June 30, 2015 and December 31, 2014 , respectively. The consolidated total assets and liabilities related to these VIEs, net of intercompany eliminations, were approximately $236.5 million and $207.9 million , respectively, as of June 30, 2015 and $235.1 million and $209.1 million , respectively, as of December 31, 2014 . Interest holders in VIEs consolidated by the Company are allocated income equal to the cash distributions made to those interest holders. The remaining results of operations are allocated to the Company. As of June 30, 2015 and December 31, 2014 , the Company did not have any other VIEs of which it was deemed to be the primary beneficiary. Equity Based Compensation The Company accounts for equity based compensation using the fair value method of accounting. The estimated fair value of stock options granted by the Company is being amortized over the vesting period of the stock options. The estimated grant date fair values of the long term incentive plan units (discussed in Note 13, “Equity Based Compensation Plans,” in the Company’s Form 10-K for the year ended December 31, 2014 ) are being amortized over the expected service periods. Fair Value of Financial Instruments Management believes that the carrying amounts of outstanding lines of credit, and notes and other receivables approximate fair value as of June 30, 2015 and December 31, 2014 , because interest rates, yields and other terms for these instruments are consistent with yields and other terms currently available for similar instruments. Management has estimated that the fair value of the Company’s $4.8 billion of fixed rate debt, including unsecured bonds, at June 30, 2015 is approximately $4.9 billion and the Company’s variable rate debt, excluding borrowings under the lines of credit, at June 30, 2015 approximates its fair value based on the terms of existing mortgage notes payable, unsecured bonds and variable rate demand notes compared to those available in the marketplace. Management believes that the carrying amounts of cash and cash equivalents, restricted cash, accounts payable and accrued liabilities, construction payables, other liabilities and dividends payable approximate fair value as of June 30, 2015 due to the short-term maturity of these instruments. Marketable securities, except mortgage backed securities that are held to maturity, and derivatives are carried at fair value as of June 30, 2015 . At June 30, 2015 , the Company’s investments in mortgage backed securities had a carrying value of $73.7 million and the Company estimated the fair value to be approximately $101.9 million . At December 31, 2014 , the Company’s investments in mortgage backed securities had a carrying value of $68.0 million and the Company estimated the fair value to be approximately $96.0 million . The Company determines the fair value of the mortgage backed securities based on unobservable inputs (level 3 of the fair value hierarchy) considering the assumptions that market participants would make in valuing these securities. Assumptions such as estimated default rates and discount rates are used to determine expected discounted cash flows to estimate the fair value. Capitalization of Costs The Company’s capitalized internal costs related to development and redevelopment projects were comprised primarily of employee compensation and totaled $3.4 million and $3.0 million during the three months ended June 30, 2015 and 2014 , respectively, and $5.4 million and $4.7 million during the six months ended June 30, 2015 and 2014, respectively. The Company capitalizes leasing commissions associated with the lease-up of a development community and amortizes the costs over the life of the leases. The amounts capitalized for leasing commissions are immaterial for all periods presented. Co-investments The Company owns investments in joint ventures (“co-investments”) in which it has significant influence, but its ownership interest does not meet the criteria for consolidation in accordance with U.S. GAAP. Therefore, the Company accounts for co-investments using the equity method of accounting. The equity method employs the accrual basis for recognizing the investor’s share of investee income or losses. In addition, distributions received from the investee are treated as a reduction in the investment account, not as income. The significant accounting policies of the Company’s co-investment entities are consistent with those of the Company in all material respects. Upon the acquisition of a controlling interest of a co-investment, the co-investment entity is consolidated and a gain or loss is recognized upon the remeasurement of co-investments in the condensed consolidated statement of income equal to the amount by which the fair value of the co-investment interest the Company previously owned exceeds its carrying value. A majority of the co-investments, excluding the preferred equity investments, compensate the Company for its asset management services and may provide promote income if certain financial return benchmarks are achieved. Asset management fees are recognized when earned, and promote fees are recognized when the earnings events have occurred and the amount is determinable and collectible. Any promote fees are reflected in equity income in co-investments. Changes in Accumulated Other Comprehensive Loss, Net by Component Essex Property Trust, Inc. (in thousands) Change in fair value and amortization of derivatives Unrealized gains on available for sale securities Total Balance at December 31, 2014 $ (56,003 ) $ 4,551 $ (51,452 ) Other comprehensive income before reclassification (2,461 ) (2,054 ) (4,515 ) Amounts reclassified from accumulated other comprehensive loss 5,815 — 5,815 Other comprehensive income 3,354 (2,054 ) 1,300 Balance at June 30, 2015 $ (52,649 ) $ 2,497 $ (50,152 ) Changes in Accumulated Other Comprehensive Loss, by Component Essex Portfolio, L.P. (in thousands): Change in fair value and amortization of derivatives Unrealized gains on available for sale securities Total Balance at December 31, 2014 $ (53,980 ) $ 4,624 $ (49,356 ) Other comprehensive income before reclassification (2,546 ) (2,121 ) (4,667 ) Amounts reclassified from accumulated other comprehensive loss 6,011 — 6,011 Other comprehensive income 3,465 (2,121 ) 1,344 Balance at June 30, 2015 $ (50,515 ) $ 2,503 $ (48,012 ) Amounts reclassified from accumulated other comprehensive loss in connection with derivatives are recorded in interest expense on the condensed consolidated statement of income and comprehensive income. Realized gains and losses on available for sale securities are included in interest and other income on the condensed consolidated statement of income and comprehensive income. Accounting Estimates The preparation of condensed consolidated financial statements, in accordance with GAAP, requires the Company to make estimates and judgments that affect the reported amounts of assets, liabilities, revenues and expenses and related disclosures of contingent assets and liabilities. On an on-going basis, the Company evaluates its estimates, including those related to acquiring, developing and assessing the carrying values of its real estate portfolio, its investments in and advances to joint ventures and affiliates, its notes receivables and its qualification as a Real Estate Investment Trust (“REIT”). The Company bases its estimates on historical experience, current market conditions, and on various other assumptions that are believed to be reasonable under the circumstances. Actual results may vary from those estimates and those estimates could be different under different assumptions or conditions. BRE Merger The merger with BRE Properties, Inc. ("BRE") was a two step process. First, 14 of the BRE properties were acquired on March 31, 2014 in exchange for $1.4 billion of OP units. The fair value of these properties was substantially all attributable to rental properties which included land, buildings and improvements, and real estate under development and approximately $19 million was attributable to acquired in-place lease value. Second, the BRE merger was closed on April 1, 2014 in exchange for the total consideration of approximately $4.3 billion . A summary of the fair value of the assets and liabilities acquired on April 1, 2014 was as follows (includes the 14 properties acquired on March 31, 2014 as the OP units issued were retired on April 1, 2014) (in millions): Cash assumed $ 140 Rental properties and real estate under development 5,605 Real estate held for sale, net 108 Co-investments 224 Acquired in-place lease value 77 Other assets 16 Mortgage notes payable and unsecured debt (1,747 ) Other liabilities (87 ) Redeemable noncontrolling interest (5 ) $ 4,331 Cash consideration for BRE merger $ 556 Equity consideration for BRE merger 3,775 Total consideration for BRE merger $ 4,331 During the quarter ended March 31, 2015, the Company recorded adjustments to decrease the preliminary fair value of real property by $13.1 million , to increase the preliminary fair value of co-investments by $6.0 million and to decrease its preliminary estimate for liabilities assumed by $7.1 million . The changes in estimates were the result of subsequent additional information pertaining to the opening balance sheet identified by management. The Company believes that the information gathered to date provides a reasonable basis for estimating the fair values of assets acquired and liabilities assumed. |
Significant Transactions During
Significant Transactions During the Second Quarter of 2015 and Subsequent Events | 6 Months Ended |
Jun. 30, 2015 | |
Business Combinations [Abstract] | |
Significant Transactions During the Second Quarter of 2015 and Subsequent Events | Significant Transactions During the Second Quarter of 2015 and Subsequent Events Significant Transactions Acquisitions In April 2015, the Company purchased an additional 49.5% interest in Reveal, a 438 apartment community located in Woodland Hills, CA, from Wesco I, a related party in which the Company holds a 50.0% noncontrolling interest, for a contract price of $73.0 million . As a result of the acquisition, the property is now consolidated and the Company recorded a gain of $12.7 million to remeasure the portion of its investment in Wesco I related to Reveal at fair value. The gain is included in “Gain on remeasurement of co-investment” on the Company’s Condensed Consolidated Statements of Income and Comprehensive Income for the three and six months ended June 30, 2015. In June 2015, the Company purchased Avant, a 247 apartment community, located in downtown Los Angeles, California, for $99.0 million . In June 2015, the Company made a $10.0 million preferred equity investment in a related party limited liability company that owns Greentree Apartments, a 220 apartment community located in San Jose, CA. This investment will earn a 9.5% preferred return and is scheduled to mature in June 2022 . (See Note 5 - "Related Party Transactions" for further discussion.) In June 2015, the Company made a $5.0 million preferred equity investment in a related party limited liability company that owns Sterling Cove Apartments, a 218 apartment community located in Concord, CA. This investment will earn a 9.5% preferred return and is scheduled to mature in June 2022 . (See Note 5 - "Related Party Transactions" for further discussion.) Common Stock During the second quarter, the Company issued 396,840 shares of common stock, through our equity distribution program, at an average price of $223.59 for net proceeds of $88.5 million . During the third quarter through August 3, 2015, the Company did not sell any shares of common stock through its equity distribution program or through other means. Subsequent Events There were no material subsequent events. |
Co-investments
Co-investments | 6 Months Ended |
Jun. 30, 2015 | |
Investments in and Advance to Affiliates, Subsidiaries, Associates, and Joint Ventures [Abstract] | |
Co-investments | Co-investments The Company has co-investments, which are accounted for under the equity method. The co-investments own, operate and develop apartment communities. The following table details the carrying value of Company's co-investments (in thousands): June 30, 2015 December 31, 2014 Membership interest/Partnership interest in: Wesco I and III $ 156,024 $ 188,853 Fund II 228 696 Expo 6,825 7,352 The Huxley — 11,471 CPPIB 339,600 336,977 Wesco IV 65,720 67,937 BEXAEW 92,260 97,686 Palm Valley 69,494 70,186 Total operating co-investments 730,151 781,158 Total development co-investments 194,442 152,574 Total preferred interest co-investments 119,615 108,691 Total co-investments $ 1,044,208 $ 1,042,423 The combined summarized financial information of co-investments are as follows (in thousands). June 30, 2015 December 31, 2014 Combined balance sheets: (1) Rental properties and real estate under development $ 3,275,960 $ 3,426,574 Other assets 110,690 107,902 Total assets $ 3,386,650 $ 3,534,476 Debt $ 1,391,474 $ 1,568,398 Other liabilities 95,386 91,579 Equity (1) 1,899,790 1,874,499 Total liabilities and equity $ 3,386,650 $ 3,534,476 Company's share of equity $ 1,044,208 $ 1,042,423 Three Months Ended Six Months Ended 2015 2014 2015 2014 Combined statements of income: (1) Property revenues $ 62,092 $ 48,784 $ 125,589 $ 76,744 Property operating expenses (23,184 ) (18,556 ) (46,138 ) (30,116 ) Net operating income 38,908 30,228 79,451 46,628 Gain on sale of real estate — — 14 11,369 Interest expense (11,097 ) (9,422 ) (22,413 ) (15,445 ) General and administrative (1,473 ) (1,811 ) (3,079 ) (3,199 ) Equity income from co-investments (2) — 4,784 — 9,543 Depreciation and amortization (24,265 ) (17,885 ) (49,646 ) (28,578 ) Net income $ 2,073 $ 5,894 $ 4,327 $ 20,318 Company's share of net income (3) $ 4,472 $ 5,629 $ 8,783 $ 16,155 (1) Includes preferred equity investments held by the Company. (2) Represents income from Wesco II's preferred equity investment in Park Merced. (3) Includes the Company's share of equity income from co-investments and preferred equity investments, gain on sales of co-investments, co-investment promote income and income from early redemption of preferred equity investments. |
Notes and Other Receivables
Notes and Other Receivables | 6 Months Ended |
Jun. 30, 2015 | |
Receivables [Abstract] | |
Notes and Other Receivables | Notes and Other Receivables Notes receivable secured by real estate and other receivables consist of the following as of June 30, 2015 and December 31, 2014 (in thousands): June 30, 2015 December 31, 2014 Notes receivable, secured, bearing interest at 6.0%, due December 2016 $ 3,219 $ 3,212 Notes and other receivables from affiliates 4,109 8,105 Other receivables 18,348 13,606 $ 25,676 $ 24,923 |
Related Party Transactions
Related Party Transactions | 6 Months Ended |
Jun. 30, 2015 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Related Party Transactions The Company charges certain fees to its co-investments for asset management, property management, development and redevelopment services. These fees from affiliates totaled $3.6 million and $5.0 million during the three months ended June 30, 2015 and 2014 , respectively and $9.3 million and $7.6 million during the six months ended June 30, 2015 and 2014 , respectively. All of these fees are net of intercompany amounts eliminated by the Company. The Company netted development and redevelopment fees of $1.5 million and $2.2 million against general and administrative expenses for the three months ended June 30, 2015 and 2014, respectively and $4.6 million and $3.1 million for the six months ended June 30, 2015 and 2014, respectively. The Company’s Chairman and founder, Mr. George Marcus, is the Chairman of the Marcus & Millichap Company (“MMC”), which is a parent company of a diversified group of real estate service, investment, and development firms. Mr. Marcus is also the Co-Chairman of Marcus & Millichap, Inc. (“MMI”), and Mr. Marcus owns a controlling interest in MMI, a national brokerage firm listed on the NYSE. During the first quarter, a multifamily property, located in Anaheim, CA that was owned by an entity affiliated with MMC, in which the Company held a preferred equity investment, was sold. That investment of $13.7 million plus an additional $1.3 million in cash was invested as outlined in the next two paragraphs. The $13.7 million preferred equity investment earned a 9.0% preferred return and was scheduled to mature in September 2020. In June 2015, the Company made a $10.0 million preferred equity investment in an entity affiliated with MMC that owns Greentree Apartments, a 220 apartment community located in San Jose, CA. This investment will earn a 9.5% preferred return and is scheduled to mature in June 2022 . Independent members of the Company’s Board of Directors that serve on the Nominating and Corporate Governance and Audit Committees approved the investment in this entity. In June 2015, the Company made a $5.0 million preferred equity investment in a related party limited liability company that owns Sterling Cove Apartments, a 218 apartment community located in Concord, CA. This investment will earn a 9.5% preferred return and is scheduled to mature in June 2022 . Independent members of the Company’s Board of Directors that serve on the Nominating and Corporate Governance and Audit Committees approved the investment in this entity. In July 2014, the Company acquired Paragon Apartments, a 301 apartment community located in Fremont, CA for $111.0 million from an entity that was partially owned by an affiliate of MMC. Independent members of the Company’s Board of Directors that serve on the Nominating and Corporate Governance and Audit Committees approved the acquisition of Paragon Apartments. The Company has provided short-term bridge loans to affiliates. As of June 30, 2015 and December 31, 2014, $4.1 million and $8.1 million of short-term loans remained outstanding due from joint venture affiliates. |
Debt
Debt | 6 Months Ended |
Jun. 30, 2015 | |
Debt Disclosure [Abstract] | |
Debt | Debt The Company does not have indebtedness as debt is incurred by the Operating Partnership. The Company guarantees the Operating Partnership’s unsecured debt including the revolving credit facilities for the full term of such debt. Debt consists of the following (in thousands): June 30, 2015 December 31, 2014 Weighted Average Maturity In Years Bonds private placement - fixed rate $ 463,667 $ 463,443 3.7 Term loan - variable rate 224,299 224,130 1.4 Unsecured Bonds - fixed rate 2,405,140 1,915,975 7.3 Unsecured debt, net (1) 3,093,106 2,603,548 Lines of credit, net (2) 28,762 242,824 Mortgage notes payable, net (3) $ 2,247,463 $ 2,234,317 6.5 Total debt $ 5,369,331 $ 5,080,689 Weighted average interest rate on fixed rate unsecured and private placement bonds 3.6 % 3.6 % Weighted average interest rate on variable rate term loan 2.4 % 2.4 % Weighted average interest rate on lines of credit 1.9 % 1.8 % Weighted average interest rate on mortgage notes payable 4.4 % 4.6 % (1) Includes unamortized premium of $20.2 million and $27.5 million and reduced by unamortized debt issuance costs of $17.1 million and $13.9 million , as of June 30, 2015 and December 31, 2014 , respectively. (2) Reduced by unamortized debt issuance costs of $3.9 million and $3.6 million , as of June 30, 2015 and December 31, 2014 , respectively. (3) Includes unamortized premium of $73.8 million and $83.8 million and reduced by unamortized debt issuance costs of $11.1 million and $11.9 million , as of June 30, 2015 and December 31, 2014 , respectively. The aggregate scheduled principal payments of the Company’s outstanding debt as of June 30, 2015 are as follows (excluding lines of credit): Remaining in 2015 $ 14,389 2016 391,519 2017 564,178 2018 320,621 2019 641,393 Thereafter 3,342,728 $ 5,274,828 |
Segment Information
Segment Information | 6 Months Ended |
Jun. 30, 2015 | |
Segment Reporting [Abstract] | |
Segment Information | Segment Information The Company defines its reportable operating segments as the three geographical regions in which its communities are located: Southern California, Northern California and Seattle Metro. Excluded from segment revenues and net operating income are management and other fees from affiliates, and interest and other income. Non-segment revenues and net operating income included in the following schedule also consist of revenue generated from commercial properties. Other non-segment assets include real estate under development, co-investments, cash and cash equivalents, marketable securities, notes and other receivables, prepaid expenses and other assets and deferred charges. The revenues and net operating income for each of the reportable operating segments are summarized as follows for the three and six months ended June 30, 2015 and 2014 ($ in thousands): Three Months Ended Six Months Ended 2015 2014 2015 2014 Revenues: Southern California $ 131,026 $ 114,780 $ 254,481 $ 184,391 Northern California 106,923 87,722 209,350 144,210 Seattle Metro 49,826 44,444 98,480 73,149 Other real estate assets 6,326 10,006 12,019 14,552 Total property revenues $ 294,101 $ 256,952 $ 574,330 $ 416,302 Net operating income: Southern California 87,810 75,292 173,340 122,231 Northern California 76,451 60,797 148,967 100,720 Seattle Metro 33,674 29,401 66,803 48,447 Other real estate assets 6,089 7,904 7,972 9,040 Total net operating income 204,024 173,394 397,082 280,438 Management and other fees from affiliates 2,061 2,836 4,705 4,495 Depreciation and amortization (113,731 ) (101,292 ) (220,638 ) (151,604 ) General and administrative (9,549 ) (9,558 ) (20,094 ) (17,141 ) Merger and integration expenses (1,410 ) (26,497 ) (3,798 ) (42,556 ) Acquisition costs (429 ) (529 ) (976 ) (717 ) Interest expense (50,802 ) (42,151 ) (98,348 ) (71,192 ) Interest and other income 3,254 2,814 7,453 5,693 Equity income from co-investments 4,472 5,629 8,783 16,155 Gains on sale of real estate and land — — 7,112 7,481 Gain on remeasurement of co-investment 12,652 — 34,014 — Net income $ 50,542 $ 4,646 $ 115,295 $ 31,052 Total assets for each of the reportable operating segments are summarized as follows as of June 30, 2015 and December 31, 2014 ($ in thousands): June 30, 2015 December 31, 2014 Assets: Southern California $ 4,836,313 $ 4,241,277 Northern California 3,899,013 3,641,720 Seattle Metro 1,624,134 1,647,058 Other real estate assets 151,442 149,820 Net reportable operating segment - real estate assets 10,510,902 9,679,875 Real estate under development 220,911 429,096 Co-investments 1,044,208 1,042,423 Real estate held for sale, net — 56,300 Cash and cash equivalents, including restricted cash 65,152 95,749 Marketable securities and other investments 121,244 117,240 Notes and other receivables 25,676 24,923 Other non-segment assets 56,911 81,126 Total assets $ 12,045,004 $ 11,526,732 |
Net Income Per Common Share
Net Income Per Common Share | 6 Months Ended |
Jun. 30, 2015 | |
Earnings Per Share [Abstract] | |
Net Income Per Common Share | Net Income Per Common Share (Amounts in thousands, except per share and unit data) Essex Property Trust, Inc. Three Months Ended Three Months Ended Income Weighted- average Common Shares Per Common Share Amount Income Weighted- average Common Shares Per Common Share Amount Basic: Net income available to common stockholders $ 45,555 64,810,184 $ 0.70 $ 1,207 61,884,963 $ 0.02 Effect of Dilutive Securities — 162,668 — 174,799 Diluted: Net income available to common stockholders $ 45,555 64,972,852 $ 0.70 $ 1,207 62,059,762 $ 0.02 Six Months Ended Six Months Ended Income Weighted- average Common Shares Per Common Share Amount Income Weighted- average Common Shares Per Common Share Amount Basic: Net income available to common stockholders $ 104,918 64,499,545 $ 1.63 $ 23,119 49,857,233 $ 0.46 Effect of Dilutive Securities — 177,976 — 229,928 Diluted: Net income available to common stockholders $ 104,918 64,677,521 $ 1.62 $ 23,119 50,087,161 $ 0.46 Weighted average convertible limited partnership units of 2,182,025 and 2,173,542 , which include vested Series Z-1 incentive units, for the three months ended June 30, 2015 and 2014, respectively, and 2,183,163 and 2,270,029 for the six months ended June 30, 2015 , and 2014 , respectively, were not included in the determination of diluted EPS because they were anti-dilutive. The related income allocated to these convertible limited partnership units, which includes vested Series Z-1 units, aggregated $1.6 million and $0.2 million for the three months ended June 30, 2015 and 2014 , respectively, and $3.6 million and $1.6 million for the six months ended June 30, 2015 and 2014 , respectively. The Company has the ability and intention to redeem DownREIT limited partnership units for cash and does not consider them to be potentially dilutive securities. Stock options of 24,500 and 24,500 were excluded from the calculation of diluted earnings per share for the three and six months ended June 30, 2015, respectively, because the effects on earnings per share were anti-dilutive. Stock options of 36,956 and 53,244 for the three and six months ended June 30, 2014, respectively, were not included in the diluted earnings per share calculation because the effects on earnings per share were anti-dilutive. Essex Portfolio, L.P. Three Months Ended Three Months Ended Income Weighted- average Common Units Per Common Unit Amount Income Weighted- average Common Units Per Common Unit Amount Basic: Net income available to common unitholders $ 47,088 66,992,209 $ 0.70 $ 1,416 64,058,505 $ 0.02 Effect of Dilutive Securities — 162,668 — 174,799 Diluted: Net income available to common unitholders $ 47,088 67,154,877 $ 0.70 $ 1,416 64,233,304 $ 0.02 Six Months Ended Six Months Ended Income Weighted- average Common Units Per Common Unit Amount Income Weighted- average Common Units Per Common Unit Amount Basic: Net income available to common unitholders $ 108,562 66,682,708 $ 1.63 $ 24,745 52,127,261 $ 0.47 Effect of Dilutive Securities — 177,976 — 229,928 Diluted: Net income available to common unitholders $ 108,562 66,860,684 $ 1.62 $ 24,745 52,357,189 $ 0.47 Stock options of 24,500 and 24,500 were excluded from the calculation of diluted earnings per share for the three and six months ended June 30, 2015, respectively, because the effects on earnings per share were anti-dilutive. Stock options of 36,956 and 53,244 for the three and six months ended June 30, 2014, respectively, were not included in the diluted earnings per share calculation because the effects on earnings per share were anti-dilutive. Additionally, excludes 903,285 DownREIT units for which the Operating Partnership has the ability and intention to redeem the DownREIT limited partnership units for cash and does not consider them to be potentially dilutive securities. |
Derivative Instruments and Hedg
Derivative Instruments and Hedging Activities | 6 Months Ended |
Jun. 30, 2015 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Instruments and Hedging Activities | Derivative Instruments and Hedging Activities As of June 30, 2015 , the Company has entered into interest rate swap contracts with an aggregate notional amount of $225 million that effectively fixed the interest rate on the $225 million unsecured term loan at 2.4% . These derivatives qualify for hedge accounting. As of June 30, 2015 , the Company has interest rate cap contracts totaling a notional amount of $148.1 million that effectively limit the Company’s exposure to interest rate risk by providing a ceiling on the underlying variable interest rate for substantially all of the Company’s tax exempt variable rate debt. The Company has total return swaps, with a notional amount of $114.4 million and a carrying value and fair value of $19 thousand at June 30, 2015. As of June 30, 2015 and December 31, 2014 , the aggregate carrying value of the interest rate swap contracts was a liability of $1.9 million and $1.8 million , respectively, which is classified in other liabilities on the condensed consolidated balance sheets. |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies To the extent that an environmental matter arises or is identified in the future that has other than a remote risk of having a material impact on the condensed consolidated financial statements, the Company will disclose the estimated range of possible outcomes, and, if an outcome is probable, accrue an appropriate liability for remediation and other potential liability. The Company will consider whether such occurrence results in an impairment of value on the affected property and, if so, impairment will be recognized. The Company has been sued in the ordinary course of business. |
Organization and Basis of Pre19
Organization and Basis of Presentation (Policies) | 6 Months Ended |
Jun. 30, 2015 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
New Accounting Pronouncements | In February 2015, the FASB issued ASU No. 2015-02 "Consolidation (Topic 810): Amendments to the Consolidation Analysis," which provides new consolidation guidance and makes changes to both the variable interest model and the voting model. Among other changes, the new standard specifically eliminates the presumption in the current voting model that a general partner controls a limited partnership or similar entity unless that presumption can be overcome. Generally, only a single limited partner that is able to exercise substantive kick-out rights will consolidate. The new standard will be effective for the Company beginning on January 1, 2016 and early adoption is permitted, including adoption in an interim period. The new standard must be applied using a modified retrospective approach by recording a cumulative-effect adjustment to equity/capital as of the beginning of the period of adoption or retrospectively to each period presented. The Company has not yet selected a transition method and is currently evaluating the impact of adopting the new standard on its consolidated results of operations and financial position. In April 2015, the FASB issued ASU No. 2015-03 "Simplifying the Presentation of Debt Issuance Costs," which requires companies to present debt financing costs as a direct deduction from the carrying amount of the associated debt liability rather than as an asset, consistent with the presentation of debt discounts on the consolidated balance sheets. The new standard will be effective for the Company beginning on January 1, 2016 and early adoption is permitted. The new standard must be applied retrospectively to all prior periods presented in the consolidated financial statements. The Company adopted this standard during the second quarter of 2015. This adoption resulted in a reclassification of $32.1 million and $29.4 million in debt issuance costs, net of accumulated amortization from an asset to a reduction to associated debt liabilities as of June 30, 2015 and December 31, 2014, respectively. |
Marketable Securities | The Company reports its available for sale securities at fair value, based on quoted market prices (Level 2 for the unsecured bonds and Level 1 for the common stock and investment funds, as defined by the Financial Accounting Standards Board (“FASB”) standard for fair value measurements), and any unrealized gain or loss is recorded as other comprehensive income (loss). Realized gains and losses, interest and dividend income, and amortization of purchase discounts are included in interest and other income on the condensed consolidated statements of income and comprehensive income. |
Variable Interest Entities | The Company consolidates 19 DownREIT limited partnerships (comprising twelve communities) since the Company is the primary beneficiary of these variable interest entities (“VIEs”). Total DownREIT units outstanding were 963,789 and 974,790 as of June 30, 2015 and December 31, 2014 respectively, and the redemption value of the units, based on the closing price of the Company’s common stock totaled $204.8 million and $201.4 million , as of June 30, 2015 and December 31, 2014 , respectively. The consolidated total assets and liabilities related to these VIEs, net of intercompany eliminations, were approximately $236.5 million and $207.9 million , respectively, as of June 30, 2015 and $235.1 million and $209.1 million , respectively, as of December 31, 2014 . Interest holders in VIEs consolidated by the Company are allocated income equal to the cash distributions made to those interest holders. The remaining results of operations are allocated to the Company. As of June 30, 2015 and December 31, 2014 , the Company did not have any other VIEs of which it was deemed to be the primary beneficiary. |
Equity Based Compensation | The Company accounts for equity based compensation using the fair value method of accounting. The estimated fair value of stock options granted by the Company is being amortized over the vesting period of the stock options. The estimated grant date fair values of the long term incentive plan units (discussed in Note 13, “Equity Based Compensation Plans,” in the Company’s Form 10-K for the year ended December 31, 2014 ) are being amortized over the expected service periods. |
Fair Value of Financial Instruments | Management believes that the carrying amounts of outstanding lines of credit, and notes and other receivables approximate fair value as of June 30, 2015 and December 31, 2014 , because interest rates, yields and other terms for these instruments are consistent with yields and other terms currently available for similar instruments. Management has estimated that the fair value of the Company’s $4.8 billion of fixed rate debt, including unsecured bonds, at June 30, 2015 is approximately $4.9 billion and the Company’s variable rate debt, excluding borrowings under the lines of credit, at June 30, 2015 approximates its fair value based on the terms of existing mortgage notes payable, unsecured bonds and variable rate demand notes compared to those available in the marketplace. Management believes that the carrying amounts of cash and cash equivalents, restricted cash, accounts payable and accrued liabilities, construction payables, other liabilities and dividends payable approximate fair value as of June 30, 2015 due to the short-term maturity of these instruments. Marketable securities, except mortgage backed securities that are held to maturity, and derivatives are carried at fair value as of June 30, 2015 . At June 30, 2015 , the Company’s investments in mortgage backed securities had a carrying value of $73.7 million and the Company estimated the fair value to be approximately $101.9 million . At December 31, 2014 , the Company’s investments in mortgage backed securities had a carrying value of $68.0 million and the Company estimated the fair value to be approximately $96.0 million . The Company determines the fair value of the mortgage backed securities based on unobservable inputs (level 3 of the fair value hierarchy) considering the assumptions that market participants would make in valuing these securities. Assumptions such as estimated default rates and discount rates are used to determine expected discounted cash flows to estimate the fair value. |
Capitalization of Costs | The Company capitalizes leasing commissions associated with the lease-up of a development community and amortizes the costs over the life of the leases. The amounts capitalized for leasing commissions are immaterial for all periods presented. |
Co-investments | The Company owns investments in joint ventures (“co-investments”) in which it has significant influence, but its ownership interest does not meet the criteria for consolidation in accordance with U.S. GAAP. Therefore, the Company accounts for co-investments using the equity method of accounting. The equity method employs the accrual basis for recognizing the investor’s share of investee income or losses. In addition, distributions received from the investee are treated as a reduction in the investment account, not as income. The significant accounting policies of the Company’s co-investment entities are consistent with those of the Company in all material respects. Upon the acquisition of a controlling interest of a co-investment, the co-investment entity is consolidated and a gain or loss is recognized upon the remeasurement of co-investments in the condensed consolidated statement of income equal to the amount by which the fair value of the co-investment interest the Company previously owned exceeds its carrying value. A majority of the co-investments, excluding the preferred equity investments, compensate the Company for its asset management services and may provide promote income if certain financial return benchmarks are achieved. Asset management fees are recognized when earned, and promote fees are recognized when the earnings events have occurred and the amount is determinable and collectible. Any promote fees are reflected in equity income in co-investments. |
Changes in Accumulated Other Comprehensive Loss | Amounts reclassified from accumulated other comprehensive loss in connection with derivatives are recorded in interest expense on the condensed consolidated statement of income and comprehensive income. Realized gains and losses on available for sale securities are included in interest and other income on the condensed consolidated statement of income and comprehensive income. |
Accounting Estimates | The preparation of condensed consolidated financial statements, in accordance with GAAP, requires the Company to make estimates and judgments that affect the reported amounts of assets, liabilities, revenues and expenses and related disclosures of contingent assets and liabilities. On an on-going basis, the Company evaluates its estimates, including those related to acquiring, developing and assessing the carrying values of its real estate portfolio, its investments in and advances to joint ventures and affiliates, its notes receivables and its qualification as a Real Estate Investment Trust (“REIT”). The Company bases its estimates on historical experience, current market conditions, and on various other assumptions that are believed to be reasonable under the circumstances. Actual results may vary from those estimates and those estimates could be different under different assumptions or conditions. |
Organization and Basis of Pre20
Organization and Basis of Presentation (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Components of Marketable Securities | As of June 30, 2015 and December 31, 2014 , marketable securities consist of the following ($ in thousands): June 30, 2015 Amortized Cost Gross Unrealized Gain Carrying Value Available for sale: Investment-grade unsecured bonds $ 8,746 $ 149 $ 8,895 Investment funds - US treasuries 3,769 6 3,775 Common stock and stock funds 31,755 3,076 34,831 Held to maturity: Mortgage backed securities 73,743 — 73,743 Total - Marketable securities and other investments $ 118,013 $ 3,231 $ 121,244 December 31, 2014 Amortized Cost Gross Unrealized Gain Carrying Value Available for sale: Investment-grade unsecured bonds $ 9,435 $ 145 $ 9,580 Investment funds - US treasuries 3,769 3 3,772 Common stock and stock funds 25,755 5,137 30,892 Held to maturity: Mortgage backed securities 67,996 — 67,996 Total - marketable securities $ 106,955 $ 5,285 $ 112,240 Other investments 5,000 — 5,000 Total - Marketable securities and other investments $ 111,955 $ 5,285 $ 117,240 |
Changes in Accumulated Other Comprehensive Loss, Net by Component | Essex Property Trust, Inc. (in thousands) Change in fair value and amortization of derivatives Unrealized gains on available for sale securities Total Balance at December 31, 2014 $ (56,003 ) $ 4,551 $ (51,452 ) Other comprehensive income before reclassification (2,461 ) (2,054 ) (4,515 ) Amounts reclassified from accumulated other comprehensive loss 5,815 — 5,815 Other comprehensive income 3,354 (2,054 ) 1,300 Balance at June 30, 2015 $ (52,649 ) $ 2,497 $ (50,152 ) Changes in Accumulated Other Comprehensive Loss, by Component Essex Portfolio, L.P. (in thousands): Change in fair value and amortization of derivatives Unrealized gains on available for sale securities Total Balance at December 31, 2014 $ (53,980 ) $ 4,624 $ (49,356 ) Other comprehensive income before reclassification (2,546 ) (2,121 ) (4,667 ) Amounts reclassified from accumulated other comprehensive loss 6,011 — 6,011 Other comprehensive income 3,465 (2,121 ) 1,344 Balance at June 30, 2015 $ (50,515 ) $ 2,503 $ (48,012 ) |
Preliminary Fair Values of Assets and Liabilities Acquired | A summary of the fair value of the assets and liabilities acquired on April 1, 2014 was as follows (includes the 14 properties acquired on March 31, 2014 as the OP units issued were retired on April 1, 2014) (in millions): Cash assumed $ 140 Rental properties and real estate under development 5,605 Real estate held for sale, net 108 Co-investments 224 Acquired in-place lease value 77 Other assets 16 Mortgage notes payable and unsecured debt (1,747 ) Other liabilities (87 ) Redeemable noncontrolling interest (5 ) $ 4,331 Cash consideration for BRE merger $ 556 Equity consideration for BRE merger 3,775 Total consideration for BRE merger $ 4,331 |
Co-investments (Tables)
Co-investments (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Investments in and Advance to Affiliates, Subsidiaries, Associates, and Joint Ventures [Abstract] | |
Summary of Co Investment | The following table details the carrying value of Company's co-investments (in thousands): June 30, 2015 December 31, 2014 Membership interest/Partnership interest in: Wesco I and III $ 156,024 $ 188,853 Fund II 228 696 Expo 6,825 7,352 The Huxley — 11,471 CPPIB 339,600 336,977 Wesco IV 65,720 67,937 BEXAEW 92,260 97,686 Palm Valley 69,494 70,186 Total operating co-investments 730,151 781,158 Total development co-investments 194,442 152,574 Total preferred interest co-investments 119,615 108,691 Total co-investments $ 1,044,208 $ 1,042,423 |
Summarized Financial Statement for Co Investment Accounted for Under the Equity Method | The combined summarized financial information of co-investments are as follows (in thousands). June 30, 2015 December 31, 2014 Combined balance sheets: (1) Rental properties and real estate under development $ 3,275,960 $ 3,426,574 Other assets 110,690 107,902 Total assets $ 3,386,650 $ 3,534,476 Debt $ 1,391,474 $ 1,568,398 Other liabilities 95,386 91,579 Equity (1) 1,899,790 1,874,499 Total liabilities and equity $ 3,386,650 $ 3,534,476 Company's share of equity $ 1,044,208 $ 1,042,423 Three Months Ended Six Months Ended 2015 2014 2015 2014 Combined statements of income: (1) Property revenues $ 62,092 $ 48,784 $ 125,589 $ 76,744 Property operating expenses (23,184 ) (18,556 ) (46,138 ) (30,116 ) Net operating income 38,908 30,228 79,451 46,628 Gain on sale of real estate — — 14 11,369 Interest expense (11,097 ) (9,422 ) (22,413 ) (15,445 ) General and administrative (1,473 ) (1,811 ) (3,079 ) (3,199 ) Equity income from co-investments (2) — 4,784 — 9,543 Depreciation and amortization (24,265 ) (17,885 ) (49,646 ) (28,578 ) Net income $ 2,073 $ 5,894 $ 4,327 $ 20,318 Company's share of net income (3) $ 4,472 $ 5,629 $ 8,783 $ 16,155 (1) Includes preferred equity investments held by the Company. (2) Represents income from Wesco II's preferred equity investment in Park Merced. (3) Includes the Company's share of equity income from co-investments and preferred equity investments, gain on sales of co-investments, co-investment promote income and income from early redemption of preferred equity investments. |
Notes and Other Receivables (Ta
Notes and Other Receivables (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Receivables [Abstract] | |
Notes and Other Receivables | Notes receivable secured by real estate and other receivables consist of the following as of June 30, 2015 and December 31, 2014 (in thousands): June 30, 2015 December 31, 2014 Notes receivable, secured, bearing interest at 6.0%, due December 2016 $ 3,219 $ 3,212 Notes and other receivables from affiliates 4,109 8,105 Other receivables 18,348 13,606 $ 25,676 $ 24,923 |
Debt (Tables)
Debt (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Debt Disclosure [Abstract] | |
Schedule of debt and lines of credit | Debt consists of the following (in thousands): June 30, 2015 December 31, 2014 Weighted Average Maturity In Years Bonds private placement - fixed rate $ 463,667 $ 463,443 3.7 Term loan - variable rate 224,299 224,130 1.4 Unsecured Bonds - fixed rate 2,405,140 1,915,975 7.3 Unsecured debt, net (1) 3,093,106 2,603,548 Lines of credit, net (2) 28,762 242,824 Mortgage notes payable, net (3) $ 2,247,463 $ 2,234,317 6.5 Total debt $ 5,369,331 $ 5,080,689 Weighted average interest rate on fixed rate unsecured and private placement bonds 3.6 % 3.6 % Weighted average interest rate on variable rate term loan 2.4 % 2.4 % Weighted average interest rate on lines of credit 1.9 % 1.8 % Weighted average interest rate on mortgage notes payable 4.4 % 4.6 % (1) Includes unamortized premium of $20.2 million and $27.5 million and reduced by unamortized debt issuance costs of $17.1 million and $13.9 million , as of June 30, 2015 and December 31, 2014 , respectively. (2) Reduced by unamortized debt issuance costs of $3.9 million and $3.6 million , as of June 30, 2015 and December 31, 2014 , respectively. (3) Includes unamortized premium of $73.8 million and $83.8 million and reduced by unamortized debt issuance costs of $11.1 million and $11.9 million , as of June 30, 2015 and December 31, 2014 , respectively. |
Summary of aggregate scheduled principal payments | The aggregate scheduled principal payments of the Company’s outstanding debt as of June 30, 2015 are as follows (excluding lines of credit): Remaining in 2015 $ 14,389 2016 391,519 2017 564,178 2018 320,621 2019 641,393 Thereafter 3,342,728 $ 5,274,828 |
Segment Information (Tables)
Segment Information (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Segment Reporting [Abstract] | |
Reconciliation of Revenues and Operating Profit Loss from Segments to Consolidated | The revenues and net operating income for each of the reportable operating segments are summarized as follows for the three and six months ended June 30, 2015 and 2014 ($ in thousands): Three Months Ended Six Months Ended 2015 2014 2015 2014 Revenues: Southern California $ 131,026 $ 114,780 $ 254,481 $ 184,391 Northern California 106,923 87,722 209,350 144,210 Seattle Metro 49,826 44,444 98,480 73,149 Other real estate assets 6,326 10,006 12,019 14,552 Total property revenues $ 294,101 $ 256,952 $ 574,330 $ 416,302 Net operating income: Southern California 87,810 75,292 173,340 122,231 Northern California 76,451 60,797 148,967 100,720 Seattle Metro 33,674 29,401 66,803 48,447 Other real estate assets 6,089 7,904 7,972 9,040 Total net operating income 204,024 173,394 397,082 280,438 Management and other fees from affiliates 2,061 2,836 4,705 4,495 Depreciation and amortization (113,731 ) (101,292 ) (220,638 ) (151,604 ) General and administrative (9,549 ) (9,558 ) (20,094 ) (17,141 ) Merger and integration expenses (1,410 ) (26,497 ) (3,798 ) (42,556 ) Acquisition costs (429 ) (529 ) (976 ) (717 ) Interest expense (50,802 ) (42,151 ) (98,348 ) (71,192 ) Interest and other income 3,254 2,814 7,453 5,693 Equity income from co-investments 4,472 5,629 8,783 16,155 Gains on sale of real estate and land — — 7,112 7,481 Gain on remeasurement of co-investment 12,652 — 34,014 — Net income $ 50,542 $ 4,646 $ 115,295 $ 31,052 |
Reconciliation of Assets from Segment to Consolidated | Total assets for each of the reportable operating segments are summarized as follows as of June 30, 2015 and December 31, 2014 ($ in thousands): June 30, 2015 December 31, 2014 Assets: Southern California $ 4,836,313 $ 4,241,277 Northern California 3,899,013 3,641,720 Seattle Metro 1,624,134 1,647,058 Other real estate assets 151,442 149,820 Net reportable operating segment - real estate assets 10,510,902 9,679,875 Real estate under development 220,911 429,096 Co-investments 1,044,208 1,042,423 Real estate held for sale, net — 56,300 Cash and cash equivalents, including restricted cash 65,152 95,749 Marketable securities and other investments 121,244 117,240 Notes and other receivables 25,676 24,923 Other non-segment assets 56,911 81,126 Total assets $ 12,045,004 $ 11,526,732 |
Net Income Per Common Share (Ta
Net Income Per Common Share (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Net Income Per Share and Net Income Per Unit [Line Items] | |
Net Income Per Common Share | (Amounts in thousands, except per share and unit data) Essex Property Trust, Inc. Three Months Ended Three Months Ended Income Weighted- average Common Shares Per Common Share Amount Income Weighted- average Common Shares Per Common Share Amount Basic: Net income available to common stockholders $ 45,555 64,810,184 $ 0.70 $ 1,207 61,884,963 $ 0.02 Effect of Dilutive Securities — 162,668 — 174,799 Diluted: Net income available to common stockholders $ 45,555 64,972,852 $ 0.70 $ 1,207 62,059,762 $ 0.02 Six Months Ended Six Months Ended Income Weighted- average Common Shares Per Common Share Amount Income Weighted- average Common Shares Per Common Share Amount Basic: Net income available to common stockholders $ 104,918 64,499,545 $ 1.63 $ 23,119 49,857,233 $ 0.46 Effect of Dilutive Securities — 177,976 — 229,928 Diluted: Net income available to common stockholders $ 104,918 64,677,521 $ 1.62 $ 23,119 50,087,161 $ 0.46 |
Essex Portfolio, L.P. [Member] | |
Net Income Per Share and Net Income Per Unit [Line Items] | |
Net Income Per Common Share | Essex Portfolio, L.P. Three Months Ended Three Months Ended Income Weighted- average Common Units Per Common Unit Amount Income Weighted- average Common Units Per Common Unit Amount Basic: Net income available to common unitholders $ 47,088 66,992,209 $ 0.70 $ 1,416 64,058,505 $ 0.02 Effect of Dilutive Securities — 162,668 — 174,799 Diluted: Net income available to common unitholders $ 47,088 67,154,877 $ 0.70 $ 1,416 64,233,304 $ 0.02 Six Months Ended Six Months Ended Income Weighted- average Common Units Per Common Unit Amount Income Weighted- average Common Units Per Common Unit Amount Basic: Net income available to common unitholders $ 108,562 66,682,708 $ 1.63 $ 24,745 52,127,261 $ 0.47 Effect of Dilutive Securities — 177,976 — 229,928 Diluted: Net income available to common unitholders $ 108,562 66,860,684 $ 1.62 $ 24,745 52,357,189 $ 0.47 |
Organization and Basis of Pre26
Organization and Basis of Presentation - Summary of Financial Securities (Details) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2015 | Dec. 31, 2014 | |
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale Securities | $ 121,244 | $ 117,240 |
Total Amortized Cost | 106,955 | |
Total Gross Unrealized Gain Loss | 5,285 | |
Total Fair Value | 112,240 | |
Available-for-sale Securities and Held-to-maturity Securities | 118,013 | 111,955 |
Available-For-Sale Securities And Held-To-Maturity Securities, Accumulated Gross Unrealized Gain (Loss), Before Tax | 3,231 | 5,285 |
Corporate Debt Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale Securities, Amortized Cost Basis | 8,746 | 9,435 |
Available-for-sale Securities, Accumulated Gross Unrealized Gain (Loss), before Tax | 149 | 145 |
Available-for-sale Securities | 8,895 | 9,580 |
US Treasury Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale Securities, Amortized Cost Basis | 3,769 | 3,769 |
Available-for-sale Securities, Accumulated Gross Unrealized Gain (Loss), before Tax | 6 | 3 |
Available-for-sale Securities | 3,775 | 3,772 |
Common Stock [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale Securities, Amortized Cost Basis | 31,755 | 25,755 |
Available-for-sale Securities, Accumulated Gross Unrealized Gain (Loss), before Tax | 3,076 | 5,137 |
Available-for-sale Securities | 34,831 | 30,892 |
Collateralized Mortgage Backed Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Held-to-maturity Securities, Amortized Cost before Other than Temporary Impairment | 73,743 | 67,996 |
Held-to-maturity Securities, Unrecognized Holding Gain | 0 | 0 |
Held-to-maturity securities | $ 73,743 | 67,996 |
Other Investments [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Held-to-maturity Securities, Amortized Cost before Other than Temporary Impairment | 5,000 | |
Held-to-maturity Securities, Unrecognized Holding Gain | 0 | |
Held-to-maturity securities | $ 5,000 |
Organization and Basis of Pre27
Organization and Basis of Presentation - Accumulated Other Comprehensive Income Summary (Details) $ in Thousands | 6 Months Ended |
Jun. 30, 2015USD ($) | |
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | |
Balance at beginning | $ (56,003) |
Balance at the end | (52,649) |
Other Comprehensive Income (Loss), Available-for-sale Securities Change In Unrealized Gain (Loss) During Period [Roll Forward] | |
Balance at beginning | 4,551 |
Change in fair value of marketable securities | (2,121) |
Balance at the end | 2,497 |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |
Balance at beginning | (51,452) |
Other comprehensive income before reclassification | (4,515) |
Amounts reclassified from accumulated other comprehensive loss | 5,815 |
Other comprehensive income | 1,300 |
Balance at the end | (50,152) |
Essex Portfolio, L.P. [Member] | |
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | |
Balance at beginning | (53,980) |
Balance at the end | (50,515) |
Other Comprehensive Income (Loss), Available-for-sale Securities Change In Unrealized Gain (Loss) During Period [Roll Forward] | |
Balance at beginning | 4,624 |
Change in fair value of marketable securities | (2,121) |
Balance at the end | 2,503 |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |
Balance at beginning | (49,356) |
Other comprehensive income before reclassification | (4,667) |
Amounts reclassified from accumulated other comprehensive loss | 6,011 |
Other comprehensive income | 1,344 |
Balance at the end | (48,012) |
Accumulated Other Comprehensive Income (Loss) [Member] | Essex Portfolio, L.P. [Member] | |
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | |
Other comprehensive income before reclassification | (2,546) |
Amounts reclassified from accumulated other comprehensive loss | 6,011 |
Other comprehensive income | 3,465 |
Other Comprehensive Income (Loss), Available-for-sale Securities Change In Unrealized Gain (Loss) During Period [Roll Forward] | |
Change in fair value of marketable securities | (2,121) |
Amounts reclassified from accumulated other comprehensive loss | 0 |
Other comprehensive income | (2,121) |
Accumulated Other Comprehensive Income (Loss) [Member] | |
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | |
Other comprehensive income before reclassification | (2,461) |
Amounts reclassified from accumulated other comprehensive loss | 5,815 |
Other comprehensive income | 3,354 |
Other Comprehensive Income (Loss), Available-for-sale Securities Change In Unrealized Gain (Loss) During Period [Roll Forward] | |
Change in fair value of marketable securities | (2,054) |
Amounts reclassified from accumulated other comprehensive loss | 0 |
Other comprehensive income | $ (2,054) |
Organization and Basis of Pre28
Organization and Basis of Presentation - Merger Purchase Price Allocation (Details) - BRE Properties, Inc. [Member] - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2015 | Apr. 01, 2014 | |
Business Acquisition [Line Items] | ||
Cash assumed | $ 140 | |
Rental properties and real estate under development | 5,605 | |
Real estate held for sale, net | 108 | |
Co-investments | 224 | |
Acquired in-place lease value | 77 | |
Other assets | 16 | |
Mortgage notes payable and unsecured debt | (1,747) | |
Other liabilities | (87) | |
Redeemable noncontrolling interest | (5) | |
Total consideration for BRE merger | 4,331 | $ 4,300 |
Cash consideration for BRE merger | 556 | |
Equity consideration for BRE merger | $ 3,775 |
Organization and Basis of Pre29
Organization and Basis of Presentation - Narrative (Details) | 3 Months Ended | 6 Months Ended | ||||||
Jun. 30, 2015USD ($)communitybuildingpartnershipapartmentprojectshares | Mar. 31, 2015USD ($) | Jun. 30, 2014USD ($) | Mar. 31, 2014USD ($)property | Jun. 30, 2015USD ($)communitybuildingpartnershipapartmentprojectshares | Jun. 30, 2014USD ($) | Dec. 31, 2014USD ($)shares | Apr. 01, 2014USD ($) | |
Real Estate Properties [Line Items] | ||||||||
Ownership interest in partnership | 96.80% | |||||||
Apartment communities owned | community | 245 | 245 | ||||||
Apartment units owned | apartment | 58,768 | 58,768 | ||||||
Ownership interest, number of commercial buildings | building | 4 | 4 | ||||||
Ownership interest, number of active development projects | project | 9 | 9 | ||||||
Sales and maturities of marketable securities | $ 1,968,000 | $ 5,192,000 | ||||||
Available-for-sale securities, gross realized gain (loss) | $ 0 | 900,000 | ||||||
Downreit limited partnerships consolidated by company | partnership | 19 | 19 | ||||||
Communities within Downreit partnerships | community | 12 | 12 | ||||||
Units Of limited partnership interest, amount | shares | 963,789 | 963,789 | 974,790 | |||||
Redemption value of variable interest entities | $ 204,800,000 | $ 204,800,000 | $ 201,400,000 | |||||
Assets related to variable interest entities net of intercompany eliminations | 236,500,000 | 236,500,000 | 235,100,000 | |||||
Liabilities related to variable interest entities net of intercompany eliminations | 207,900,000 | 207,900,000 | 209,100,000 | |||||
Fixed rate debt carrying amount | 4,800,000,000 | 4,800,000,000 | ||||||
Fixed rate debt fair value | 4,900,000,000 | 4,900,000,000 | ||||||
Investments in mortgage back securities, fair value | 101,900,000 | 101,900,000 | $ 96,000,000 | |||||
Capitalized internal costs related to development and redevelopment projects | $ 3,400,000 | $ 3,000,000 | $ 5,400,000 | 4,700,000 | ||||
BRE Properties, Inc. [Member] | ||||||||
Real Estate Properties [Line Items] | ||||||||
Number of properties acquired | property | 14 | |||||||
Value of acquired properties | $ 1,400,000,000 | |||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Net | $ 4,331,000,000 | $ 4,300,000,000 | ||||||
Number of properties contributed | property | 14 | |||||||
Decrease in preliminary fair value of real property | 13,100,000 | |||||||
Increase in preliminary fair value of investment in joint ventures | 6,000,000 | |||||||
Decrease in preliminary estimate for liabilities assumed | $ 7,100,000 | |||||||
Essex Portfolio, L.P. [Member] | ||||||||
Real Estate Properties [Line Items] | ||||||||
Operating Partnership units outstanding | shares | 2,181,076 | 2,181,076 | 2,168,158 | |||||
Redemption value of operating partnership units outstanding | $ 463,500,000 | $ 463,500,000 | $ 447,900,000 | |||||
Sales and maturities of marketable securities | 1,968,000 | $ 5,192,000 | ||||||
Collateralized Mortgage Backed Securities [Member] | ||||||||
Real Estate Properties [Line Items] | ||||||||
Held-to-maturity securities | $ 73,743,000 | $ 73,743,000 | $ 67,996,000 | |||||
Other Assets [Member] | BRE Properties, Inc. [Member] | ||||||||
Real Estate Properties [Line Items] | ||||||||
Acquired assets with in-place lease value | $ 19,000,000 |
Significant Transactions Duri30
Significant Transactions During the Second Quarter of 2015 and Subsequent Events (Details) $ / shares in Units, $ in Thousands | Mar. 31, 2015USD ($) | Jun. 30, 2015USD ($)apartment | Apr. 30, 2015USD ($)apartment | Jun. 30, 2015USD ($)apartment$ / sharesshares | Jun. 30, 2015USD ($)apartment | Jun. 30, 2014USD ($) |
Schedule of Equity Method Investments [Line Items] | ||||||
Payments to acquire preferred equity investments | $ 1,300 | $ 97,512 | $ 58,029 | |||
Apartment units owned | apartment | 58,768 | 58,768 | 58,768 | |||
Net proceeds from issuance of common stock | $ 272,664 | $ 278,334 | ||||
Common Stock [Member] | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Sale of common stock (in shares) | shares | 396,840 | |||||
Average share price (in dollars per share) | $ / shares | $ 223.59 | |||||
Net proceeds from issuance of common stock | $ 88,500 | |||||
The Reveal [Member] | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Ownership percentage increase during period | 49.50% | |||||
Number of units acquired | apartment | 438 | |||||
Contract price | $ 73,000 | |||||
Membership interest in Wesco I [Member] | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Preferred equity investments | 50.00% | |||||
Gain on remeasurement of investment | $ 12,700 | $ 12,700 | ||||
Avant I [Member] | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Number of units acquired | apartment | 247 | |||||
Contract price | $ 99,000 | |||||
Greentree Apartments [Member] | Limited Liability Company [Member] | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Payments to acquire preferred equity investments | $ 10,000 | |||||
Apartment units owned | apartment | 220 | 220 | 220 | |||
Preferred stock, stated interest percentage | 9.50% | |||||
Sterling Cove [Member] | Limited Liability Company [Member] | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Payments to acquire preferred equity investments | $ 5,000 | |||||
Apartment units owned | apartment | 218 | 218 | 218 | |||
Preferred stock, stated interest percentage | 9.50% |
Co-investments - Summary of Inv
Co-investments - Summary of Investments (Details) - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 |
Schedule of Equity Method Investments [Line Items] | ||
Co-investments | $ 1,044,208 | $ 1,042,423 |
Total operating co investments [Member] | ||
Schedule of Equity Method Investments [Line Items] | ||
Co-investments | 730,151 | 781,158 |
Membership interest in Wesco I [Member] | ||
Schedule of Equity Method Investments [Line Items] | ||
Co-investments | 156,024 | 188,853 |
Partnership interest in Fund II [Member] | ||
Schedule of Equity Method Investments [Line Items] | ||
Co-investments | 228 | 696 |
Membership interest in a limited liability company that owns and is developing Expo [Member] | ||
Schedule of Equity Method Investments [Line Items] | ||
Co-investments | 6,825 | 7,352 |
Membership interest in a limited liability company that owns The Huxley [Member] | ||
Schedule of Equity Method Investments [Line Items] | ||
Co-investments | 0 | 11,471 |
Membership Interest In Limited Liability Company That Owns Connolly Station [Member] | ||
Schedule of Equity Method Investments [Line Items] | ||
Co-investments | 339,600 | 336,977 |
Membership interest in Wesco IV [Member] | ||
Schedule of Equity Method Investments [Line Items] | ||
Co-investments | 65,720 | 67,937 |
Membership interest in BEXAEW [Member] | ||
Schedule of Equity Method Investments [Line Items] | ||
Co-investments | 92,260 | 97,686 |
Membership Interest In Palm Valley [Member] | ||
Schedule of Equity Method Investments [Line Items] | ||
Co-investments | 69,494 | 70,186 |
Total development co investments [Member] | ||
Schedule of Equity Method Investments [Line Items] | ||
Co-investments | 194,442 | 152,574 |
Total preferred interest investments [Member] | ||
Schedule of Equity Method Investments [Line Items] | ||
Co-investments | $ 119,615 | $ 108,691 |
Co-investments (Details)
Co-investments (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | Dec. 31, 2014 | |
Equity Method Investment, Summarized Financial Information, Assets [Abstract] | |||||
Real estate under development | $ 220,911 | $ 220,911 | $ 429,096 | ||
Equity Method Investment, Summarized Financial Information, Liabilities and Equity [Abstract] | |||||
Other liabilities | 34,669 | 34,669 | 32,444 | ||
Equity Method Investment, Summarized Financial Information, Income Statement [Abstract] | |||||
Interest expense | (50,802) | $ (42,151) | (98,348) | $ (71,192) | |
General and administrative | (9,549) | (9,558) | (20,094) | (17,141) | |
Equity income in co-investments | 4,472 | 5,629 | 8,783 | 16,155 | |
Total co investment [Member] | |||||
Equity Method Investment, Summarized Financial Information, Assets [Abstract] | |||||
Real estate under development | 3,275,960 | 3,275,960 | 3,426,574 | ||
Other assets | 110,690 | 110,690 | 107,902 | ||
Total assets | 3,386,650 | 3,386,650 | 3,534,476 | ||
Equity Method Investment, Summarized Financial Information, Liabilities and Equity [Abstract] | |||||
Debt | 1,391,474 | 1,391,474 | 1,568,398 | ||
Other liabilities | 95,386 | 95,386 | 91,579 | ||
Equity | 1,899,790 | 1,899,790 | 1,874,499 | ||
Total liabilities and equity | 3,386,650 | 3,386,650 | 3,534,476 | ||
Company's share of equity | 1,044,208 | 1,044,208 | $ 1,042,423 | ||
Equity Method Investment, Summarized Financial Information, Income Statement [Abstract] | |||||
Property revenues | 62,092 | 48,784 | 125,589 | 76,744 | |
Property operating expenses | (23,184) | (18,556) | (46,138) | (30,116) | |
Net operating income | 38,908 | 30,228 | 79,451 | 46,628 | |
Gain on sale of real estate | 0 | 0 | 14 | 11,369 | |
Interest expense | (11,097) | (9,422) | (22,413) | (15,445) | |
General and administrative | (1,473) | (1,811) | (3,079) | (3,199) | |
Equity income in co-investments | 0 | 4,784 | 0 | 9,543 | |
Depreciation and amortization | (24,265) | (17,885) | (49,646) | (28,578) | |
Net income | 2,073 | 5,894 | 4,327 | 20,318 | |
Company's share of net income | $ 4,472 | $ 5,629 | $ 8,783 | $ 16,155 |
Notes and Other Receivables (De
Notes and Other Receivables (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2015 | Dec. 31, 2014 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Notes receivable | $ 25,676 | $ 24,923 |
Notes Receivable [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Notes receivable | 4,109 | 8,105 |
Other Receivables [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Notes receivable | 18,348 | 13,606 |
Secured Due December 2014 [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Notes receivable | $ 3,219 | $ 3,212 |
Stated interest rate (in hundredths) | 6.00% |
Related Party Transactions (Det
Related Party Transactions (Details) $ in Thousands | 1 Months Ended | 3 Months Ended | 6 Months Ended | |||||
Jun. 30, 2015USD ($)apartment | Jul. 31, 2014USD ($)apartment | Jun. 30, 2015USD ($)apartment | Mar. 31, 2015USD ($) | Jun. 30, 2014USD ($) | Jun. 30, 2015USD ($)apartment | Jun. 30, 2014USD ($) | Dec. 31, 2014USD ($) | |
Related Party Transaction [Line Items] | ||||||||
Management and other fees from affiliates | $ 3,600 | $ 5,000 | $ 9,300 | $ 7,600 | ||||
Development and redevelopment fees | $ 1,500 | $ 2,200 | 4,600 | 3,100 | ||||
Company's share of gain on the sales of co-investment | (469) | (3,211) | ||||||
Payments to acquire preferred equity investments | $ 1,300 | $ 97,512 | $ 58,029 | |||||
Apartment units owned | apartment | 58,768 | 58,768 | 58,768 | |||||
Notes and other receivables | $ 25,676 | $ 25,676 | $ 25,676 | $ 24,923 | ||||
Notes Receivable [Member] | ||||||||
Related Party Transaction [Line Items] | ||||||||
Notes and other receivables | $ 4,109 | $ 4,109 | $ 4,109 | $ 8,105 | ||||
Anaheim, CA Multifamily Property [Member] | ||||||||
Related Party Transaction [Line Items] | ||||||||
Preferred equity investments | $ 13,700 | |||||||
Preferred stock, stated interest percentage | 9.00% | |||||||
Company's share of gain on the sales of co-investment | $ 13,700 | |||||||
Limited Liability Company [Member] | Greentree Apartments [Member] | ||||||||
Related Party Transaction [Line Items] | ||||||||
Preferred stock, stated interest percentage | 9.50% | |||||||
Payments to acquire preferred equity investments | $ 10,000 | |||||||
Apartment units owned | apartment | 220 | 220 | 220 | |||||
Limited Liability Company [Member] | Sterling Cove [Member] | ||||||||
Related Party Transaction [Line Items] | ||||||||
Preferred stock, stated interest percentage | 9.50% | |||||||
Payments to acquire preferred equity investments | $ 5,000 | |||||||
Apartment units owned | apartment | 218 | 218 | 218 | |||||
Paragon Apartments [Member] | ||||||||
Related Party Transaction [Line Items] | ||||||||
Number of units | apartment | 301 | |||||||
Cash consideration for BRE merger | $ 111,000 |
Debt - Debt Summary (Details)
Debt - Debt Summary (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2015 | Dec. 31, 2014 | |
Debt Instrument [Line Items] | ||
Unsecured debt, net | $ 3,093,106 | $ 2,603,548 |
Lines of credit, net | 28,762 | 242,824 |
Mortgage notes payable, net | 2,247,463 | 2,234,317 |
Total debt | 5,369,331 | 5,080,689 |
Fixed Rate Bond One [Member] | ||
Debt Instrument [Line Items] | ||
Unsecured debt, net | $ 463,667 | 463,443 |
Debt, weighted average maturity (years) | 3 years 8 months 12 days | |
Loans Payable [Member] | ||
Debt Instrument [Line Items] | ||
Unsecured debt, net | $ 224,299 | $ 224,130 |
Debt, weighted average maturity (years) | 1 year 4 months 12 days | |
Weighted average interest rate | 2.40% | 2.40% |
Fixed Rate Bond Two [Member] | ||
Debt Instrument [Line Items] | ||
Unsecured debt, net | $ 2,405,140 | $ 1,915,975 |
Debt, weighted average maturity (years) | 7 years 3 months 12 days | |
Weighted average interest rate | 3.60% | 3.60% |
Unsecured Line of Credit [Member] | ||
Debt Instrument [Line Items] | ||
Lines of credit, net | $ 28,762 | $ 242,824 |
Weighted average interest rate | 1.90% | 1.80% |
Mortgage Notes [Member] | ||
Debt Instrument [Line Items] | ||
Debt, weighted average maturity (years) | 6 years 6 months 12 days | |
Mortgage notes payable, net | $ 2,247,463 | $ 2,234,317 |
Weighted average interest rate | 4.40% | 4.60% |
Debt - Future Principal Payment
Debt - Future Principal Payments (Details) $ in Thousands | Jun. 30, 2015USD ($) |
Debt Disclosure [Abstract] | |
Remaining in 2015 | $ 14,389 |
2,016 | 391,519 |
2,017 | 564,178 |
2,018 | 320,621 |
2,019 | 641,393 |
Thereafter | 3,342,728 |
Long-term debt | $ 5,274,828 |
Debt - Narrative (Details)
Debt - Narrative (Details) - USD ($) $ in Millions | Jun. 30, 2015 | Dec. 31, 2014 |
Unsecured Debt [Member] | ||
Debt Instrument [Line Items] | ||
Unamortized premium | $ 20.2 | $ 27.5 |
Unamortized Debt Issuance Expense | 17.1 | 13.9 |
Unsecured Line of Credit [Member] | ||
Debt Instrument [Line Items] | ||
Unamortized Debt Issuance Expense | 3.9 | 3.6 |
Mortgage Notes [Member] | ||
Debt Instrument [Line Items] | ||
Unamortized premium | 73.8 | 83.8 |
Unamortized Debt Issuance Expense | $ 11.1 | $ 11.9 |
Segment Information (Details)
Segment Information (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2015USD ($) | Jun. 30, 2014USD ($) | Jun. 30, 2015USD ($)segment | Jun. 30, 2014USD ($) | Dec. 31, 2014USD ($) | |
Segment Reporting [Abstract] | |||||
Number of reportable operating segments defined by geographical regions | segment | 3 | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||
Property revenues | $ 294,101 | $ 256,952 | $ 574,330 | $ 416,302 | |
Net operating income | 204,024 | 173,394 | 397,082 | 280,438 | |
Management and other fees from affiliates | 2,061 | 2,836 | 4,705 | 4,495 | |
Depreciation and amortization | (113,731) | (101,292) | (220,638) | (151,604) | |
General and administrative | (9,549) | (9,558) | (20,094) | (17,141) | |
Merger and integration expenses | (1,410) | (26,497) | (3,798) | (42,556) | |
Acquisition costs | (429) | (529) | (976) | (717) | |
Interest expense | (50,802) | (42,151) | (98,348) | (71,192) | |
Interest and other income | 3,254 | 2,814 | 7,453 | 5,693 | |
Equity income from co-investments | 4,472 | 5,629 | 8,783 | 16,155 | |
Gains on sale of real estate and land | 0 | 0 | 7,112 | 7,481 | |
Gain on remeasurement of co-investment | 12,652 | 0 | 34,014 | 0 | |
Net income | 50,542 | 4,646 | 115,295 | 31,052 | |
Net reportable operating segment - real estate assets | 10,510,902 | 10,510,902 | $ 9,679,875 | ||
Real estate under development | 220,911 | 220,911 | 429,096 | ||
Co-investments | 1,044,208 | 1,044,208 | 1,042,423 | ||
Real estate held for sale, net | 0 | 0 | 56,300 | ||
Cash and cash equivalents, including restricted cash | 65,152 | 65,152 | 95,749 | ||
Marketable securities and other investments | 121,244 | 121,244 | 117,240 | ||
Notes and other receivables | 25,676 | 25,676 | 24,923 | ||
Other non-segment assets | 56,911 | 56,911 | 81,126 | ||
Total assets | 12,045,004 | 12,045,004 | 11,526,732 | ||
Other Real Estate Assets [Member] | |||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||
Property revenues | 6,326 | 10,006 | 12,019 | 14,552 | |
Net operating income | 6,089 | 7,904 | 7,972 | 9,040 | |
Net reportable operating segment - real estate assets | 151,442 | 151,442 | 149,820 | ||
Reportable Geographical Components [Member] | Southern California [Member] | |||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||
Property revenues | 131,026 | 114,780 | 254,481 | 184,391 | |
Net operating income | 87,810 | 75,292 | 173,340 | 122,231 | |
Net reportable operating segment - real estate assets | 4,836,313 | 4,836,313 | 4,241,277 | ||
Reportable Geographical Components [Member] | Northern California [Member] | |||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||
Property revenues | 106,923 | 87,722 | 209,350 | 144,210 | |
Net operating income | 76,451 | 60,797 | 148,967 | 100,720 | |
Net reportable operating segment - real estate assets | 3,899,013 | 3,899,013 | 3,641,720 | ||
Reportable Geographical Components [Member] | Seattle Metro [Member] | |||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||
Property revenues | 49,826 | 44,444 | 98,480 | 73,149 | |
Net operating income | 33,674 | $ 29,401 | 66,803 | $ 48,447 | |
Net reportable operating segment - real estate assets | $ 1,624,134 | $ 1,624,134 | $ 1,647,058 |
Net Income Per Common Share (De
Net Income Per Common Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Basic [Abstract] | ||||
Income from discontinued operations available to common stockholders | $ 45,555 | $ 1,207 | $ 104,918 | $ 23,119 |
Income from discontinued operations available to common stockholders (in shares) | 64,810,184 | 61,884,963 | 64,499,545 | 49,857,233 |
Income from discontinued operations available to common stockholders (in dollars per share) | $ 0.70 | $ 0.02 | $ 1.63 | $ 0.46 |
Effect of dilutive securities | $ 0 | $ 0 | $ 0 | $ 0 |
Effect of dilutive securities (in shares) | 162,668 | 174,799 | 177,976 | 229,928 |
Diluted [Abstract] | ||||
Income from continuing operations available to common stockholders | $ 45,555 | $ 1,207 | $ 104,918 | $ 23,119 |
Adjusted income from continuing operations available to common stockholders (in shares) | 64,972,852 | 62,059,762 | 64,677,521 | 50,087,161 |
Adjusted income from continuing operations available to common stockholders (in dollars per share) | $ 0.70 | $ 0.02 | $ 1.62 | $ 0.46 |
Essex Portfolio, L.P. [Member] | ||||
Basic [Abstract] | ||||
Income from discontinued operations available to common stockholders | $ 47,088 | $ 1,416 | $ 108,562 | $ 24,745 |
Income from discontinued operations available to common stockholders (in shares) | 66,992,209 | 64,058,505 | 66,682,708 | 52,127,261 |
Income from discontinued operations available to common stockholders (in dollars per share) | $ 0.70 | $ 0.02 | $ 1.63 | $ 0.47 |
Effect of dilutive securities | $ 0 | $ 0 | $ 0 | $ 0 |
Effect of dilutive securities (in shares) | 162,668 | 174,799 | 177,976 | 229,928 |
Diluted [Abstract] | ||||
Income from continuing operations available to common stockholders | $ 47,088 | $ 1,416 | $ 108,562 | $ 24,745 |
Adjusted income from continuing operations available to common stockholders (in shares) | 67,154,877 | 64,233,304 | 66,860,684 | 52,357,189 |
Adjusted income from continuing operations available to common stockholders (in dollars per share) | $ 0.70 | $ 0.02 | $ 1.62 | $ 0.47 |
Convertible Limited Partnership Units [Member] | ||||
Diluted [Abstract] | ||||
Antidilutive securities excluded from computation of earnings per share, amount | 2,182,025 | 2,173,542 | 2,183,163 | 2,270,029 |
Antidilutive securities excluded from computation of earnings per share, value | $ 1,600 | $ 200 | $ 3,600 | $ 1,600 |
Convertible Limited Partnership Units [Member] | Essex Portfolio, L.P. [Member] | ||||
Diluted [Abstract] | ||||
Antidilutive securities excluded from computation of earnings per share, amount | 903,285 | 903,285 | 903,285 | 903,285 |
Employee Stock Option [Member] | ||||
Diluted [Abstract] | ||||
Antidilutive securities excluded from computation of earnings per share, amount | 24,500 | 36,956 | 24,500 | 53,244 |
Employee Stock Option [Member] | Essex Portfolio, L.P. [Member] | ||||
Diluted [Abstract] | ||||
Antidilutive securities excluded from computation of earnings per share, amount | 0 | 36,956 | 0 | 53,244 |
Derivative Instruments and He40
Derivative Instruments and Hedging Activities (Details) - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 |
Multifamily Housing Mortgage Revenue Bonds [Member] | ||
Derivative [Line Items] | ||
Bond subject to interest rate caps | $ 148,100 | |
Designated as Hedging Instrument [Member] | Interest Rate Swap [Member] | ||
Derivative [Line Items] | ||
Derivative, notional amount | $ 225,000 | |
Interest rate (in hundredths) | 2.40% | |
Aggregate carrying value of the interest rate swap contracts | $ 1,900 | $ 1,800 |
Not Designated as Hedging Instrument [Member] | Sale and Total Return Swap [Member] | ||
Derivative [Line Items] | ||
Derivative, notional amount | 114,400 | |
Derivative asset, fair value | $ 19 |