Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2019 | Jul. 23, 2019 | |
Entity Information [Line Items] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Jun. 30, 2019 | |
Document Transition Report | false | |
Entity File Number | 001-13106 | |
Entity Registrant Name | ESSEX PROPERTY TRUST, INC. | |
Entity Incorporation, State or Country Code | MD | |
Entity Tax Identification Number | 77-0369576 | |
Entity Address, Address Line One | 1100 Park Place, Suite 200 | |
Entity Address, City or Town | San Mateo | |
Entity Address, State or Province | CA | |
Entity Address, Postal Zip Code | 94403 | |
City Area Code | 650 | |
Local Phone Number | 655-7800 | |
Title of each class | Common Stock, $0.0001 par value (Essex Property Trust, Inc.) | |
Trading Symbol | ESS | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 65,727,808 | |
Amendment Flag | false | |
Entity Central Index Key | 0000920522 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Period Focus | Q2 | |
Document Fiscal Year Focus | 2019 | |
Essex Portfolio, L.P. [Member] | ||
Entity Information [Line Items] | ||
Entity File Number | 333-44467-01 | |
Entity Registrant Name | ESSEX PORTFOLIO LP | |
Entity Incorporation, State or Country Code | CA | |
Entity Tax Identification Number | 77-0369575 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Current Fiscal Year End Date | --12-31 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Rental properties: | ||
Land and land improvements | $ 2,778,386 | $ 2,701,356 |
Buildings and improvements | 11,007,760 | 10,664,745 |
Total rental properties | 13,786,146 | 13,366,101 |
Less: accumulated depreciation | (3,447,848) | (3,209,548) |
Net real estate | 10,338,298 | 10,156,553 |
Real estate under development | 542,207 | 454,629 |
Co-investments | 1,324,081 | 1,300,140 |
Total real estate | 12,204,586 | 11,911,322 |
Cash and cash equivalents-unrestricted | 38,168 | 134,465 |
Cash and cash equivalents-restricted | 16,803 | 16,930 |
Marketable securities | 215,434 | 209,545 |
Notes and other receivables (includes related party receivables of $10.6 million and $11.1 million as of June 30, 2019 and December 31, 2018, respectively) | 74,416 | 71,895 |
Operating lease right-of-use assets | 76,205 | 0 |
Prepaid expenses and other assets | 45,533 | 39,439 |
Total assets | 12,671,145 | 12,383,596 |
LIABILITIES AND EQUITY/CAPITAL | ||
Unsecured debt, net | 4,294,312 | 3,799,316 |
Mortgage notes payable, net | 1,429,939 | 1,806,626 |
Lines of credit | 117,000 | 0 |
Accounts payable and accrued liabilities | 140,188 | 127,086 |
Construction payable | 59,720 | 59,345 |
Dividends/Distributions payable | 134,440 | 128,529 |
Operating lease liabilities | 78,226 | |
Other liabilities | 35,374 | 33,375 |
Total liabilities | 6,289,199 | 5,954,277 |
Commitments and contingencies | ||
Redeemable noncontrolling interest | 36,830 | 35,475 |
Equity/Capital: | ||
Common stock; $0.0001 par value, 670,000,000 shares authorized; 65,726,808 and 65,890,322 shares issued and outstanding, respectively | 7 | 7 |
Additional paid-in capital | 7,031,886 | 7,093,079 |
Distributions in excess of accumulated earnings | (857,994) | (812,796) |
Limited Partners: | ||
Accumulated other comprehensive loss, net | (18,992) | (13,217) |
Total stockholders' equity | 6,154,907 | 6,267,073 |
Noncontrolling interest | 190,209 | 126,771 |
Total equity | 6,345,116 | 6,393,844 |
Total liabilities and equity/capital | 12,671,145 | 12,383,596 |
Essex Portfolio, L.P. [Member] | ||
Rental properties: | ||
Land and land improvements | 2,778,386 | 2,701,356 |
Buildings and improvements | 11,007,760 | 10,664,745 |
Total rental properties | 13,786,146 | 13,366,101 |
Less: accumulated depreciation | (3,447,848) | (3,209,548) |
Net real estate | 10,338,298 | 10,156,553 |
Real estate under development | 542,207 | 454,629 |
Co-investments | 1,324,081 | 1,300,140 |
Total real estate | 12,204,586 | 11,911,322 |
Cash and cash equivalents-unrestricted | 38,168 | 134,465 |
Cash and cash equivalents-restricted | 16,803 | 16,930 |
Marketable securities | 215,434 | 209,545 |
Notes and other receivables (includes related party receivables of $10.6 million and $11.1 million as of June 30, 2019 and December 31, 2018, respectively) | 74,416 | 71,895 |
Operating lease right-of-use assets | 76,205 | |
Prepaid expenses and other assets | 45,533 | 39,439 |
Total assets | 12,671,145 | 12,383,596 |
LIABILITIES AND EQUITY/CAPITAL | ||
Unsecured debt, net | 4,294,312 | 3,799,316 |
Mortgage notes payable, net | 1,429,939 | 1,806,626 |
Lines of credit | 117,000 | 0 |
Accounts payable and accrued liabilities | 140,188 | 127,086 |
Construction payable | 59,720 | 59,345 |
Dividends/Distributions payable | 134,440 | 128,529 |
Operating lease liabilities | 78,226 | |
Other liabilities | 35,374 | 33,375 |
Total liabilities | 6,289,199 | 5,954,277 |
Commitments and contingencies | ||
Redeemable noncontrolling interest | 36,830 | 35,475 |
General Partner: | ||
Common equity (65,726,808 and 65,890,322 units issued and outstanding, respectively) | 6,173,899 | 6,280,290 |
Limited Partners: | ||
Common equity (2,299,237 and 2,305,389 units issued and outstanding, respectively) | 57,726 | 59,061 |
Accumulated other comprehensive loss, net | (15,715) | (9,738) |
Total partners' capital | 6,215,910 | 6,329,613 |
Noncontrolling interest | 129,206 | 64,231 |
Total capital | 6,345,116 | 6,393,844 |
Total liabilities and equity/capital | $ 12,671,145 | $ 12,383,596 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Millions | Jun. 30, 2019 | Dec. 31, 2018 |
Notes and other receivables (includes related party receivables of $10.6 million and $11.1 million as of June 30, 2019 and December 31, 2018, respectively) | $ 10.6 | $ 11.1 |
Common stock, par value (in dollars per share) | $ 0.0001 | $ 0.0001 |
Common stock, shares authorized (in shares) | 670,000,000 | 670,000,000 |
Common stock, shares issued (in shares) | 65,726,808 | 65,890,322 |
Common stock, shares outstanding (in shares) | 65,726,808 | 65,890,322 |
Essex Portfolio, L.P. [Member] | ||
Notes and other receivables (includes related party receivables of $10.6 million and $11.1 million as of June 30, 2019 and December 31, 2018, respectively) | $ 10.6 | $ 11.1 |
Essex Portfolio, L.P. [Member] | General Partner [Member] | ||
Common stock, shares issued (in shares) | 65,726,808 | 65,890,322 |
Common stock, shares outstanding (in shares) | 65,726,808 | 65,890,322 |
Essex Portfolio, L.P. [Member] | Limited Partners [Member] | ||
Common stock, shares issued (in shares) | 2,299,237 | 2,305,389 |
Common stock, shares outstanding (in shares) | 2,299,237 | 2,305,389 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Income and Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Revenues: | ||||
Total revenues | $ 361,635 | $ 348,723 | $ 717,858 | $ 695,978 |
Expenses: | ||||
Property operating, excluding real estate taxes | 59,162 | 58,111 | 118,060 | 115,361 |
Real estate taxes | 36,285 | 36,035 | 75,703 | 73,748 |
Corporate-level property management expenses | 8,212 | 7,782 | 16,365 | 15,552 |
Depreciation and amortization | 119,465 | 119,330 | 240,033 | 238,435 |
General and administrative | 13,927 | 11,125 | 27,386 | 25,938 |
Expensed acquisition and investment related costs | 24 | 68 | 56 | 125 |
Total expenses | 237,075 | 232,451 | 477,603 | 469,159 |
Gain on sale of real estate and land | 0 | 22,244 | 0 | 22,244 |
Earnings from operations | 124,560 | 138,516 | 240,255 | 249,063 |
Interest expense | (54,112) | (56,278) | (107,755) | (111,139) |
Total return swap income | 1,975 | 2,228 | 4,020 | 4,498 |
Interest and other income | 8,347 | 6,895 | 20,608 | 12,804 |
Equity income from co-investments | 16,959 | 15,049 | 33,235 | 47,823 |
Gain on early retirement of debt, net | 332 | 0 | 1,668 | 0 |
Gain on remeasurement of co-investment | 0 | 0 | 31,535 | 0 |
Net income | 98,061 | 106,410 | 223,566 | 203,049 |
Net income attributable to noncontrolling interest | (5,786) | (5,970) | (12,433) | (11,691) |
Net income available to common stockholders | 92,275 | 100,440 | 211,133 | 191,358 |
Comprehensive income | 93,740 | 109,793 | 217,408 | 212,608 |
Comprehensive income attributable to noncontrolling interest | (5,640) | (6,082) | (12,225) | (12,008) |
Comprehensive income attributable to controlling interest | $ 88,100 | $ 103,711 | $ 205,183 | $ 200,600 |
Basic: | ||||
Net income available to common stockholders/unitholders (in dollars per share) | $ 1.40 | $ 1.52 | $ 3.21 | $ 2.90 |
Weighted average number of shares/common units outstanding during the period (in shares) | 65,718,806 | 66,047,751 | 65,710,842 | 66,045,897 |
Diluted: | ||||
Net income available to common stockholders/unitholders (in dollars per share) | $ 1.40 | $ 1.52 | $ 3.21 | $ 2.90 |
Weighted average number of shares/common units outstanding during the period (in shares) | 65,821,815 | 66,096,349 | 65,802,417 | 66,088,803 |
Rental and Other Property Revenues [Member] | ||||
Revenues: | ||||
Total revenues | $ 359,375 | $ 346,526 | $ 713,263 | $ 691,473 |
Management and Other Fees From Affiliates Income [Member] | ||||
Revenues: | ||||
Total revenues | 2,260 | 2,197 | 4,595 | 4,505 |
Essex Portfolio, L.P. [Member] | ||||
Revenues: | ||||
Total revenues | 361,635 | 348,723 | 717,858 | 695,978 |
Expenses: | ||||
Property operating, excluding real estate taxes | 59,162 | 58,111 | 118,060 | 115,361 |
Real estate taxes | 36,285 | 36,035 | 75,703 | 73,748 |
Corporate-level property management expenses | 8,212 | 7,782 | 16,365 | 15,552 |
Depreciation and amortization | 119,465 | 119,330 | 240,033 | 238,435 |
General and administrative | 13,927 | 11,125 | 27,386 | 25,938 |
Expensed acquisition and investment related costs | 24 | 68 | 56 | 125 |
Total expenses | 237,075 | 232,451 | 477,603 | 469,159 |
Gain on sale of real estate and land | 0 | 22,244 | 0 | 22,244 |
Earnings from operations | 124,560 | 138,516 | 240,255 | 249,063 |
Interest expense | (54,112) | (56,278) | (107,755) | (111,139) |
Total return swap income | 1,975 | 2,228 | 4,020 | 4,498 |
Interest and other income | 8,347 | 6,895 | 20,608 | 12,804 |
Equity income from co-investments | 16,959 | 15,049 | 33,235 | 47,823 |
Gain on early retirement of debt, net | 332 | 0 | 1,668 | 0 |
Gain on remeasurement of co-investment | 0 | 0 | 31,535 | 0 |
Net income | 98,061 | 106,410 | 223,566 | 203,049 |
Net income attributable to noncontrolling interest | (2,558) | (2,510) | (5,034) | (5,099) |
Net income available to common stockholders | 95,503 | 103,900 | 218,532 | 197,950 |
Comprehensive income | 93,740 | 109,793 | 217,408 | 212,608 |
Comprehensive income attributable to noncontrolling interest | (2,558) | (2,510) | (5,034) | (5,099) |
Comprehensive income attributable to controlling interest | $ 91,182 | $ 107,283 | $ 212,374 | $ 207,509 |
Basic: | ||||
Net income available to common stockholders/unitholders (in dollars per share) | $ 1.40 | $ 1.52 | $ 3.21 | $ 2.90 |
Weighted average number of shares/common units outstanding during the period (in shares) | 68,018,090 | 68,320,849 | 68,012,999 | 68,319,151 |
Diluted: | ||||
Net income available to common stockholders/unitholders (in dollars per share) | $ 1.40 | $ 1.52 | $ 3.21 | $ 2.90 |
Weighted average number of shares/common units outstanding during the period (in shares) | 68,121,099 | 68,369,447 | 68,104,574 | 68,362,057 |
Essex Portfolio, L.P. [Member] | Rental and Other Property Revenues [Member] | ||||
Revenues: | ||||
Total revenues | $ 359,375 | $ 346,526 | $ 713,263 | $ 691,473 |
Essex Portfolio, L.P. [Member] | Management and Other Fees From Affiliates Income [Member] | ||||
Revenues: | ||||
Total revenues | $ 2,260 | $ 2,197 | $ 4,595 | $ 4,505 |
Condensed Consolidated Statem_2
Condensed Consolidated Statement of Equity - USD ($) shares in Thousands, $ in Thousands | Total | Common Stock [Member] | Additional Paid-in Capital [Member] | Distributions in Excess of Accumulated Earnings [Member] | Accumulated Other Comprehensive Loss, Net [Member] | Noncontrolling Interest [Member] |
Issuance of common stock under: | ||||||
Cumulative effect upon adoption of ASU | ASU 2016-01 [Member] | $ 0 | $ 2,234 | $ (2,234) | |||
Cumulative effect upon adoption of ASU | ASU 2017-05 [Member] | 123,708 | 119,651 | $ 4,057 | |||
Balance at period beginning at Dec. 31, 2017 | 6,396,825 | $ 7 | $ 7,129,571 | (833,726) | (18,446) | 119,419 |
Balances (in shares) at Dec. 31, 2017 | 66,054 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income | 203,049 | 191,358 | 11,691 | |||
Reversal of unrealized gains upon the sale of marketable debt securities | 2 | 2 | ||||
Change in fair value of derivatives and amortization of swap settlements | 9,656 | 9,335 | 321 | |||
Change in fair value of marketable debt securities, net | (99) | (95) | (4) | |||
Issuance of common stock under: | ||||||
Stock option and restricted stock plans, net | 1,864 | $ 0 | 1,864 | |||
Stock option and restricted stock plans, net (in shares) | 12 | |||||
Sale of common stock, net | (353) | (353) | ||||
Equity based compensation costs | 6,814 | 6,201 | 613 | |||
Retirement of common stock, net | (3,774) | $ 0 | (3,774) | |||
Retirement of common stock, net (in shares) | (17) | |||||
Changes in the redemption value of redeemable noncontrolling interest | (1,845) | (1,646) | (199) | |||
Distributions to noncontrolling interest | (15,397) | (15,397) | ||||
Redemptions of noncontrolling interest | (57) | $ 0 | (54) | (3) | ||
Redemptions of noncontrolling interest (in shares) | 1 | |||||
Common stock dividends | (245,710) | (245,710) | ||||
Balance at period end at Jun. 30, 2018 | 6,474,683 | $ 7 | 7,131,809 | (766,193) | (11,438) | 120,498 |
Balances (in shares) at Jun. 30, 2018 | 66,050 | |||||
Balance at period beginning at Mar. 31, 2018 | 6,492,159 | $ 7 | 7,127,248 | (743,773) | (14,709) | 123,386 |
Balances (in shares) at Mar. 31, 2018 | 66,044 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income | 106,410 | 100,440 | 5,970 | |||
Reversal of unrealized gains upon the sale of marketable debt securities | 3 | 3 | ||||
Change in fair value of derivatives and amortization of swap settlements | 3,402 | 3,289 | 113 | |||
Change in fair value of marketable debt securities, net | (22) | (21) | (1) | |||
Issuance of common stock under: | ||||||
Stock option and restricted stock plans, net | 642 | $ 0 | 642 | |||
Stock option and restricted stock plans, net (in shares) | 5 | |||||
Sale of common stock, net | (286) | (286) | ||||
Equity based compensation costs | 4,284 | 3,948 | 336 | |||
Changes in the redemption value of redeemable noncontrolling interest | 108 | 311 | (203) | |||
Distributions to noncontrolling interest | (9,100) | (9,100) | ||||
Redemptions of noncontrolling interest | (57) | $ 0 | (54) | (3) | ||
Redemptions of noncontrolling interest (in shares) | 1 | |||||
Common stock dividends | (122,860) | (122,860) | ||||
Balance at period end at Jun. 30, 2018 | 6,474,683 | $ 7 | 7,131,809 | (766,193) | (11,438) | 120,498 |
Balances (in shares) at Jun. 30, 2018 | 66,050 | |||||
Issuance of common stock under: | ||||||
Cumulative effect upon adoption of ASU | 175 | |||||
Cumulative effect upon adoption of ASU | ASU 2017-12 [Member] | 181 | 175 | 6 | |||
Balance at period beginning at Dec. 31, 2018 | 6,393,844 | $ 7 | 7,093,079 | (812,796) | (13,217) | 126,771 |
Balances (in shares) at Dec. 31, 2018 | 65,890 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income | 223,566 | 211,133 | 12,433 | |||
Reversal of unrealized gains upon the sale of marketable debt securities | (32) | (31) | (1) | |||
Change in fair value of derivatives and amortization of swap settlements | (6,354) | (6,140) | (214) | |||
Change in fair value of marketable debt securities, net | 228 | 221 | 7 | |||
Issuance of common stock under: | ||||||
Stock option and restricted stock plans, net | 5,228 | $ 0 | 5,228 | |||
Stock option and restricted stock plans, net (in shares) | 62 | |||||
Sale of common stock, net | (82) | (82) | ||||
Equity based compensation costs | 6,100 | 5,472 | 628 | |||
Retirement of common stock, net | (56,989) | $ 0 | (56,989) | |||
Retirement of common stock, net (in shares) | (234) | |||||
Changes in the redemption value of redeemable noncontrolling interest | (1,428) | (2,739) | 1,311 | |||
Changes in noncontrolling interest from acquisition | 65,472 | 65,472 | ||||
Distributions to noncontrolling interest | (14,108) | (14,108) | ||||
Redemptions of noncontrolling interest | (14,179) | (12,083) | (2,096) | |||
Redemptions of noncontrolling interest (in shares) | 9 | |||||
Common stock dividends | (256,331) | (256,331) | ||||
Balance at period end at Jun. 30, 2019 | 6,345,116 | $ 7 | 7,031,886 | (857,994) | (18,992) | 190,209 |
Balances (in shares) at Jun. 30, 2019 | 65,727 | |||||
Balance at period beginning at Mar. 31, 2019 | 6,317,195 | $ 7 | 7,028,154 | (822,087) | (14,817) | 125,938 |
Balances (in shares) at Mar. 31, 2019 | 65,716 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income | 98,061 | 92,275 | 5,786 | |||
Reversal of unrealized gains upon the sale of marketable debt securities | (65) | (63) | (2) | |||
Change in fair value of derivatives and amortization of swap settlements | (4,361) | (4,214) | (147) | |||
Change in fair value of marketable debt securities, net | 105 | 102 | 3 | |||
Issuance of common stock under: | ||||||
Stock option and restricted stock plans, net | 2,024 | $ 0 | 2,024 | |||
Stock option and restricted stock plans, net (in shares) | 11 | |||||
Sale of common stock, net | (62) | (62) | ||||
Equity based compensation costs | 3,500 | 3,171 | 329 | |||
Changes in the redemption value of redeemable noncontrolling interest | 339 | 288 | 51 | |||
Changes in noncontrolling interest from acquisition | 65,472 | 65,472 | ||||
Distributions to noncontrolling interest | (6,944) | (6,944) | ||||
Redemptions of noncontrolling interest | (1,966) | (1,689) | (277) | |||
Common stock dividends | (128,182) | (128,182) | ||||
Balance at period end at Jun. 30, 2019 | $ 6,345,116 | $ 7 | $ 7,031,886 | $ (857,994) | $ (18,992) | $ 190,209 |
Balances (in shares) at Jun. 30, 2019 | 65,727 |
Condensed Consolidated Statem_3
Condensed Consolidated Statement of Equity (Parenthetical) - $ / shares | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Statement of Stockholders' Equity [Abstract] | ||||
Common stock dividends (in dollars per share) | $ 1.95 | $ 1.86 | $ 3.9 | $ 3.72 |
Condensed Consolidated Statem_4
Condensed Consolidated Statement of Capital - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | Dec. 31, 2017 | |
Increase (Decrease) in Partners' Capital [Roll Forward] | |||||
Net income | $ 98,061 | $ 106,410 | $ 223,566 | $ 203,049 | |
Reversal of unrealized gains upon the sale of marketable debt securities | (65) | 3 | (32) | 2 | |
Change in fair value of marketable debt securities, net | 105 | (22) | 228 | (99) | |
Issuance of common stock under: | |||||
Sale of common stock by general partner, net | (62) | (286) | (82) | (353) | |
Retirement of common units, net | (56,989) | (3,774) | |||
Changes in the redemption value of redeemable noncontrolling interest | 339 | 108 | (1,428) | (1,845) | |
Changes in noncontrolling interest from acquisition | 65,472 | 65,472 | |||
Distributions to noncontrolling interest | (6,944) | (9,100) | (14,108) | (15,397) | |
Redemptions | (1,966) | (57) | (14,179) | (57) | |
ASU 2016-01 [Member] | |||||
Issuance of common stock under: | |||||
Cumulative effect upon adoption of ASU | $ 0 | ||||
ASU 2017-05 [Member] | |||||
Issuance of common stock under: | |||||
Cumulative effect upon adoption of ASU | 123,708 | ||||
Essex Portfolio, L.P. [Member] | |||||
Increase (Decrease) in Partners' Capital [Roll Forward] | |||||
Balance at period beginning | 6,317,195 | 6,492,159 | 6,393,844 | 6,396,825 | |
Net income | 98,061 | 106,410 | 223,566 | 203,049 | |
Reversal of unrealized gains upon the sale of marketable debt securities | (65) | 3 | (32) | 2 | |
Change in fair value of derivatives and amortization of swap settlements | (4,361) | 3,402 | (6,354) | 9,656 | |
Change in fair value of marketable debt securities, net | 105 | (22) | 228 | (99) | |
Issuance of common stock under: | |||||
General partner's stock based compensation, net | 2,024 | 642 | 5,228 | 1,864 | |
Sale of common stock by general partner, net | (62) | (286) | (82) | (353) | |
Equity based compensation costs | 3,500 | 4,284 | 6,100 | 6,814 | |
Retirement of common units, net | (56,989) | (3,774) | |||
Changes in the redemption value of redeemable noncontrolling interest | 339 | 108 | (1,428) | (1,845) | |
Changes in noncontrolling interest from acquisition | 65,472 | 65,472 | |||
Distributions to noncontrolling interest | (2,443) | (4,846) | (5,110) | (6,890) | |
Redemptions | (1,966) | (57) | (14,179) | (57) | |
Distributions declared | (132,683) | (127,114) | (265,329) | (254,217) | |
Balance at period end | 6,345,116 | 6,474,683 | 6,345,116 | 6,474,683 | |
Essex Portfolio, L.P. [Member] | ASU 2016-01 [Member] | |||||
Issuance of common stock under: | |||||
Cumulative effect upon adoption of ASU | 0 | ||||
Essex Portfolio, L.P. [Member] | ASU 2017-05 [Member] | |||||
Issuance of common stock under: | |||||
Cumulative effect upon adoption of ASU | 123,708 | ||||
Essex Portfolio, L.P. [Member] | Common Equity [Member] | General Partner [Member] | |||||
Increase (Decrease) in Partners' Capital [Roll Forward] | |||||
Balance at period beginning | $ 6,206,074 | $ 6,383,482 | $ 6,280,290 | $ 6,295,852 | |
Balance at period beginning (in units) | 65,716 | 66,044 | 65,890 | 66,054 | |
Net income | $ 92,275 | $ 100,440 | $ 211,133 | $ 191,358 | |
Issuance of common stock under: | |||||
General partner's stock based compensation, net | $ 2,024 | $ 642 | $ 5,228 | $ 1,864 | |
General partner's stock based compensation, net (in units) | 11 | 5 | 62 | 12 | |
Sale of common stock by general partner, net | $ (62) | $ (286) | $ (82) | $ (353) | |
Equity based compensation costs | $ 3,171 | 3,948 | 5,472 | 6,201 | |
Equity based compensation costs (in units) | 0 | ||||
Retirement of common units, net | $ (56,989) | $ (3,774) | |||
Retirement of common units, net (in shares) | (234) | (17) | |||
Changes in the redemption value of redeemable noncontrolling interest | $ 288 | 311 | $ (2,739) | $ (1,646) | |
Redemptions | $ (1,689) | $ (54) | $ (12,083) | $ (54) | |
Redemptions (in units) | 0 | (1) | (9) | (1) | |
Distributions declared | $ (128,182) | $ (122,860) | $ (256,331) | $ (245,710) | |
Balance at period end | $ 6,173,899 | $ 6,365,623 | $ 6,173,899 | $ 6,365,623 | |
Balance at period end (in units) | 65,727 | 66,050 | 65,727 | 66,050 | |
Essex Portfolio, L.P. [Member] | Common Equity [Member] | General Partner [Member] | ASU 2016-01 [Member] | |||||
Issuance of common stock under: | |||||
Cumulative effect upon adoption of ASU | 2,234 | ||||
Essex Portfolio, L.P. [Member] | Common Equity [Member] | General Partner [Member] | ASU 2017-05 [Member] | |||||
Issuance of common stock under: | |||||
Cumulative effect upon adoption of ASU | 119,651 | ||||
Essex Portfolio, L.P. [Member] | Common Equity [Member] | Limited Partner [Member] | |||||
Increase (Decrease) in Partners' Capital [Roll Forward] | |||||
Balance at period beginning | $ 58,667 | $ 53,003 | $ 59,061 | $ 49,792 | |
Balance at period beginning (in units) | 2,299 | 2,273 | 2,305 | 2,268 | |
Net income | $ 3,228 | $ 3,460 | $ 7,399 | $ 6,592 | |
Issuance of common stock under: | |||||
Equity based compensation costs | $ 329 | $ 336 | $ 628 | $ 613 | |
Equity based compensation costs (in units) | 0 | 0 | 3 | 5 | |
Changes in the redemption value of redeemable noncontrolling interest | $ 4 | $ (203) | $ 2 | $ (199) | |
Redemptions | $ (1) | $ (3) | $ (366) | $ (3) | |
Redemptions (in units) | 0 | 0 | (9) | 0 | |
Distributions declared | $ (4,501) | $ (4,254) | $ (8,998) | $ (8,507) | |
Balance at period end | $ 57,726 | $ 52,339 | $ 57,726 | $ 52,339 | |
Balance at period end (in units) | 2,299 | 2,273 | 2,299 | 2,273 | |
Essex Portfolio, L.P. [Member] | Common Equity [Member] | Limited Partner [Member] | ASU 2016-01 [Member] | |||||
Issuance of common stock under: | |||||
Cumulative effect upon adoption of ASU | (6) | ||||
Essex Portfolio, L.P. [Member] | Common Equity [Member] | Limited Partner [Member] | ASU 2017-05 [Member] | |||||
Issuance of common stock under: | |||||
Cumulative effect upon adoption of ASU | 4,057 | ||||
Essex Portfolio, L.P. [Member] | Accumulated Other Comprehensive Loss [Member] | |||||
Increase (Decrease) in Partners' Capital [Roll Forward] | |||||
Balance at period beginning | $ (11,394) | $ (11,281) | $ (9,738) | $ (15,229) | |
Reversal of unrealized gains upon the sale of marketable debt securities | (65) | 3 | (32) | 2 | |
Change in fair value of derivatives and amortization of swap settlements | (4,361) | 3,402 | (6,354) | 9,656 | |
Change in fair value of marketable debt securities, net | 105 | (22) | 228 | (99) | |
Issuance of common stock under: | |||||
Balance at period end | (15,715) | (7,898) | (15,715) | (7,898) | |
Essex Portfolio, L.P. [Member] | Accumulated Other Comprehensive Loss [Member] | ASU 2016-01 [Member] | |||||
Issuance of common stock under: | |||||
Cumulative effect upon adoption of ASU | $ (2,228) | ||||
Essex Portfolio, L.P. [Member] | Noncontrolling Interest [Member] | |||||
Increase (Decrease) in Partners' Capital [Roll Forward] | |||||
Balance at period beginning | 63,848 | 66,955 | 64,231 | 66,410 | |
Net income | 2,558 | 2,510 | 5,034 | 5,099 | |
Issuance of common stock under: | |||||
Changes in the redemption value of redeemable noncontrolling interest | 47 | 1,309 | |||
Changes in noncontrolling interest from acquisition | 65,472 | 65,472 | |||
Distributions to noncontrolling interest | (2,443) | (4,846) | (5,110) | (6,890) | |
Redemptions | (276) | (1,730) | |||
Balance at period end | $ 129,206 | $ 64,619 | $ 129,206 | $ 64,619 |
Condensed Consolidated Statem_5
Condensed Consolidated Statement of Capital (Parenthetical) - $ / shares | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Essex Portfolio, L.P. [Member] | ||||
Distribution declared (in dollars per share) | $ 1.95 | $ 1.86 | $ 3.90 | $ 3.72 |
Condensed Consolidated Statem_6
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Cash flows from operating activities: | ||
Net income | $ 223,566 | $ 203,049 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 240,033 | 238,435 |
Amortization of discount on marketable securities | (10,869) | (8,469) |
Amortization of discount (premium) and debt financing costs, net | 1,726 | (1,352) |
Gain on sale of marketable securities | (498) | (549) |
Unrealized (gain) loss on equity securities recognized through income | (4,454) | 754 |
Company's share of gain on the sales of co-investments | (870) | 0 |
Earnings from co-investments | (32,365) | (47,823) |
Operating distributions from co-investments | 38,699 | 61,107 |
Accrued interest from notes and other receivables | (2,896) | (2,633) |
Gain on the sale of real estate and land | 0 | (22,244) |
Equity-based compensation | 5,321 | 5,906 |
Gain on early retirement of debt, net | (1,668) | 0 |
Gain on remeasurement of co-investment | (31,535) | 0 |
Changes in operating assets and liabilities: | ||
Prepaid expenses, receivables, operating lease right-of-use assets, and other assets | (7,925) | (6,078) |
Accounts payable, accrued liabilities, and operating lease liabilities | 12,486 | 2,839 |
Other liabilities | 1,082 | 579 |
Net cash provided by operating activities | 429,833 | 423,521 |
Additions to real estate: | ||
Acquisitions of real estate and acquisition related capital expenditures | (47,585) | (5,476) |
Redevelopment | (30,804) | (36,466) |
Development acquisitions of and additions to real estate under development | (86,108) | (75,303) |
Capital expenditures on rental properties | (41,927) | (30,975) |
Collections of notes and other receivables | 2,500 | 29,500 |
Proceeds from insurance for property losses | 2,698 | 917 |
Proceeds from dispositions of real estate | 0 | 130,730 |
Contributions to co-investments | (167,278) | (97,826) |
Changes in refundable deposits | 252 | (3,785) |
Purchases of marketable securities | (40,098) | (27,995) |
Sales and maturities of marketable securities | 50,226 | 18,975 |
Non-operating distributions from co-investments | 26,657 | 38,696 |
Net cash used in investing activities | (331,467) | (59,008) |
Cash flows from financing activities: | ||
Proceeds from unsecured debt and mortgage notes | 498,234 | 298,773 |
Payments on unsecured debt and mortgage notes | (473,528) | (110,829) |
Proceeds from lines of credit | 975,832 | 438,528 |
Repayments of lines of credit | (858,832) | (614,858) |
Retirement of common stock | (56,989) | (3,774) |
Additions to deferred charges | (5,873) | (3,771) |
Net proceeds from issuance of common stock | (82) | (353) |
Net proceeds from stock options exercised | 8,743 | 1,864 |
Payments related to tax withholding for share-based compensation | (3,515) | (23) |
Distributions to noncontrolling interest | (13,842) | (15,066) |
Redemption of noncontrolling interest | (14,179) | (57) |
Redemption of redeemable noncontrolling interest | (73) | (43) |
Common and preferred stock dividends paid | (250,686) | (238,454) |
Net cash used in financing activities | (194,790) | (248,063) |
Net (decrease) increase in unrestricted and restricted cash and cash equivalents | (96,424) | 116,450 |
Unrestricted and restricted cash and cash equivalents at beginning of period | 151,395 | 61,126 |
Unrestricted and restricted cash and cash equivalents at end of period | 54,971 | 177,576 |
Supplemental disclosure of cash flow information: | ||
Cash paid for interest (net of $12.3 million and $8.4 million capitalized in 2019 and 2018, respectively) | 94,925 | 100,496 |
Operating cash flows from operating leases | 3,392 | 0 |
Supplemental disclosure of noncash investing and financing activities: | ||
Issuance of DownREIT limited partnership units in connection with acquisition of real estate | 65,472 | 0 |
Transfers between real estate under development to rental properties, net | 138 | 98,318 |
Transfer from real estate under development to co-investments | 240 | 640 |
Reclassifications to redeemable noncontrolling interest from additional paid in capital and noncontrolling interest | 1,428 | 1,845 |
Redemption of redeemable noncontrolling interest via reduction of note receivable | 0 | 4,751 |
Initial recognition of operating lease right-of-use assets | 77,645 | 0 |
Initial recognition of operating lease liabilities | 79,693 | 0 |
Debt assumed in connection with acquisition | 98,681 | 0 |
Essex Portfolio, L.P. [Member] | ||
Cash flows from operating activities: | ||
Net income | 223,566 | 203,049 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 240,033 | 238,435 |
Amortization of discount on marketable securities | (10,869) | (8,469) |
Amortization of discount (premium) and debt financing costs, net | 1,726 | (1,352) |
Gain on sale of marketable securities | (498) | (549) |
Unrealized (gain) loss on equity securities recognized through income | (4,454) | 754 |
Company's share of gain on the sales of co-investments | (870) | 0 |
Earnings from co-investments | (32,365) | (47,823) |
Operating distributions from co-investments | 38,699 | 61,107 |
Accrued interest from notes and other receivables | (2,896) | (2,633) |
Gain on the sale of real estate and land | 0 | (22,244) |
Equity-based compensation | 5,321 | 5,906 |
Gain on early retirement of debt, net | (1,668) | 0 |
Gain on remeasurement of co-investment | (31,535) | 0 |
Changes in operating assets and liabilities: | ||
Prepaid expenses, receivables, operating lease right-of-use assets, and other assets | (7,925) | (6,078) |
Accounts payable, accrued liabilities, and operating lease liabilities | 12,486 | 2,839 |
Other liabilities | 1,082 | 579 |
Net cash provided by operating activities | 429,833 | 423,521 |
Additions to real estate: | ||
Acquisitions of real estate and acquisition related capital expenditures | (47,585) | (5,476) |
Redevelopment | (30,804) | (36,466) |
Development acquisitions of and additions to real estate under development | (86,108) | (75,303) |
Capital expenditures on rental properties | (41,927) | (30,975) |
Collections of notes and other receivables | 2,500 | 29,500 |
Proceeds from insurance for property losses | 2,698 | 917 |
Proceeds from dispositions of real estate | 0 | 130,730 |
Contributions to co-investments | (167,278) | (97,826) |
Changes in refundable deposits | 252 | (3,785) |
Purchases of marketable securities | (40,098) | (27,995) |
Sales and maturities of marketable securities | 50,226 | 18,975 |
Non-operating distributions from co-investments | 26,657 | 38,696 |
Net cash used in investing activities | (331,467) | (59,008) |
Cash flows from financing activities: | ||
Proceeds from unsecured debt and mortgage notes | 498,234 | 298,773 |
Payments on unsecured debt and mortgage notes | (473,528) | (110,829) |
Proceeds from lines of credit | 975,832 | 438,528 |
Repayments of lines of credit | (858,832) | (614,858) |
Retirement of common stock | (56,989) | (3,774) |
Additions to deferred charges | (5,873) | (3,771) |
Net proceeds from issuance of common stock | (82) | (353) |
Net proceeds from stock options exercised | 8,743 | 1,864 |
Payments related to tax withholding for share-based compensation | (3,515) | (23) |
Distributions to noncontrolling interest | (3,925) | (4,460) |
Redemption of noncontrolling interest | (14,179) | (57) |
Redemption of redeemable noncontrolling interest | (73) | (43) |
Common and preferred stock dividends paid | (260,603) | (249,060) |
Net cash used in financing activities | (194,790) | (248,063) |
Net (decrease) increase in unrestricted and restricted cash and cash equivalents | (96,424) | 116,450 |
Unrestricted and restricted cash and cash equivalents at beginning of period | 151,395 | 61,126 |
Unrestricted and restricted cash and cash equivalents at end of period | 54,971 | 177,576 |
Supplemental disclosure of cash flow information: | ||
Cash paid for interest (net of $12.3 million and $8.4 million capitalized in 2019 and 2018, respectively) | 94,925 | 100,496 |
Operating cash flows from operating leases | 3,392 | 0 |
Supplemental disclosure of noncash investing and financing activities: | ||
Issuance of DownREIT limited partnership units in connection with acquisition of real estate | 65,472 | 0 |
Transfers between real estate under development to rental properties, net | 138 | 98,318 |
Transfer from real estate under development to co-investments | 240 | 640 |
Reclassifications to redeemable noncontrolling interest from additional paid in capital and noncontrolling interest | 1,428 | 1,845 |
Redemption of redeemable noncontrolling interest via reduction of note receivable | 0 | 4,571 |
Initial recognition of operating lease right-of-use assets | 77,645 | 0 |
Initial recognition of operating lease liabilities | $ 79,693 | $ 0 |
Condensed Consolidated Statem_7
Condensed Consolidated Statements of Cash Flows (Parenthetical) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Cash paid for interest (net of $12.3 million and $8.4 million capitalized in 2019 and 2018, respectively) | $ 12.3 | $ 8.4 |
Essex Portfolio, L.P. [Member] | ||
Cash paid for interest (net of $12.3 million and $8.4 million capitalized in 2019 and 2018, respectively) | $ 12.3 | $ 8.4 |
Organization and Basis of Prese
Organization and Basis of Presentation | 6 Months Ended |
Jun. 30, 2019 | |
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 its subsidiaries (the "Operating Partnership," which holds the operating assets of the Company), prepared in accordance with U.S. generally accepted accounting principles ("U.S. 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, 2018 . All significant intercompany accounts and transactions have been eliminated in the unaudited 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, 2019 and 2018 include the accounts of the Company and the Operating Partnership. Essex is the sole general partner of the Operating Partnership, with a 96.6% general partnership interest as of both June 30, 2019 and December 31, 2018 . Total Operating Partnership limited partnership units ("OP Units," and the holders of such OP Units, "Unitholders") outstanding were 2,299,237 and 2,305,389 as of June 30, 2019 and December 31, 2018 , respectively, and the redemption value of the units, based on the closing price of the Company’s common stock totaled approximately $671.2 million and $565.3 million as of June 30, 2019 and December 31, 2018 , respectively. As of June 30, 2019 , the Company owned or had ownership interests in 246 operating apartment communities, aggregating 59,962 apartment homes, excluding the Company’s ownership interest in preferred interest co-investments, loan investments, one operating commercial building, and six active developments. The operating apartment communities are located in Southern California (Los Angeles, Orange, San Diego, and Ventura counties), Northern California (the San Francisco Bay Area) and the Seattle metropolitan areas. Accounting Pronouncements Adopted in the Current Year In February 2016, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No. 2016-02 (Topic 842) "Leases," which requires an entity that is a lessee to classify leases as either finance or operating and to recognize a lease liability and a right-of-use asset for all leases that have a duration of greater than 12 months. Leases of 12 months or less are to be accounted for similar to prior leasing guidance (Topic 840) for operating leases. For lessors, accounting for leases under the new standard is substantially the same as prior leasing guidance for sales-type leases, direct financing leases, and operating leases, but eliminates current real estate specific provisions and changes the treatment of initial direct costs. In July 2018, the FASB issued ASU No. 2018-11 "Leases (Topic 842): Targeted Improvements," which includes a practical expedient that allows lessors to not separate nonlease components from the associated lease component. This provides the Company with the option of not bifurcating certain common area maintenance recoveries as a non-lease component, if certain requirements are met. The Company adopted ASU No. 2016-02 and ASU No. 2018-11 as of January 1, 2019 using the modified retrospective approach and elected a package of practical expedients. There was no adjustment to the opening balance of retained earnings as a result of the adoption. See Note 11, Lease Agreements - Company as Lessor, and Note 12, Lease Agreements - Company as Lessee, for further details. In August 2017, the FASB issued ASU No. 2017-12 "Derivatives and Hedging - Targeted Improvements to Accounting for Hedging Activities," which, among other things, requires entities to present the earnings effect of hedging instruments in the same income statement line item in which the earnings effect of the hedged item is reported. The new standard also adds new disclosure requirements. The Company adopted ASU No. 2017-12 as of January 1, 2019 using the modified retrospective method by applying a cumulative effect adjustment to accumulated other comprehensive loss, net of $0.2 million , representing accumulated net hedge ineffectiveness. Furthermore, as a result of the adoption of this standard, the Company will recognize qualifying hedge ineffectiveness through accumulated other comprehensive income as opposed to current earnings. Recent Accounting Pronouncements In June 2016, the FASB issued ASU No. 2016-13 "Measurement of Credit Losses on Financial Instruments," which amends the current approach to estimate credit losses on certain financial assets, including trade and other receivables, available-for-sale securities, and other financial instruments. Generally, this amendment requires entities to establish a valuation allowance for the expected lifetime losses of these certain financial assets. Subsequent changes in the valuation allowance are recorded in current earnings and reversal of previous losses are permitted. Currently, U.S. GAAP requires entities to write down credit losses only when losses are probable and loss reversals are not permitted. The FASB additionally issued various updates to clarify and amend the guidance provided in ASU 2016-13. In May 2019, the FASB issued ASU 2019-04, "Codification Improvements to Topic 326, Financial Instruments - Credit Losses, Topic 815, Derivatives and Hedging, and Topic 825, Financial Instruments," which, with respect to credit losses, among other things, clarifies and addresses issues related to accrued interest, transfers between classifications of loans or debt securities, recoveries, and variable interest rates. Additionally, in May 2019, the FASB issued ASU 2019-05, "Financial Instruments - Credit Losses (Topic 326): Targeted Transition Relief," which allows entities to irrevocably elect the fair value option on certain financial instruments. The new standards will be effective for the Company beginning January 1, 2020 and early adoption is permitted. The Company is currently evaluating the impact of these amendments on its consolidated results of operations and financial position, with a focus on investments in mortgage backed securities and mezzanine loans. In August 2018, the FASB issued ASU No. 2018-13 "Fair Value Measurement (Topic 820): Disclosure Framework - Changes to the Disclosure Requirements for Fair Value Measurement," which eliminates certain disclosure requirements affecting all levels of measurements, and modifies and adds new disclosure requirements for Level 3 measurements. The new standard will be effective for the Company beginning January 1, 2020 and early adoption is permitted. The Company expects to apply the new standard on January 1, 2020 and does not expect the adoption to have a material impact on the Company's consolidated results of operations of financial position. Marketable Securities The Company reports its equity securities and available for sale debt securities at fair value, based on quoted market prices (Level 1 for the common stock and investment funds, Level 2 for the unsecured bonds and Level 3 for investments in mortgage backed securities, as defined by the FASB standard for fair value measurements). As of June 30, 2019 and December 31, 2018 , $6.8 million and $6.7 million , respectively, of equity securities presented within common stock and stock funds in the tables below, represent investments measured at fair value, using net asset value as a practical expedient, and are not categorized in the fair value hierarchy. Any unrealized gain or loss in debt securities classified as available for sale is recorded as other comprehensive income. Unrealized gains and losses in equity securities, realized gains and losses in debt securities, interest income, and amortization of purchase discounts are included in interest and other income on the condensed consolidated statements of income and comprehensive income. As of June 30, 2019 and December 31, 2018 , equity securities and debt securities consisted primarily of investment-grade unsecured bonds, U.S. treasury securities, common stock and stock funds, and investments in mortgage backed securities. As of June 30, 2019 and December 31, 2018 , the Company classified its investments in mortgage backed securities, which mature in November 2019 and September 2020, as held to maturity, and accordingly, these securities are stated at their amortized cost. The discount on the mortgage backed securities is being amortized to interest income based on an estimated yield and the maturity date of the securities. As of June 30, 2019 and December 31, 2018 , marketable securities consist of the following ($ in thousands): June 30, 2019 Amortized Cost/Cost Gross Unrealized Gain (Loss) Carrying Value Equity securities: Investment funds - debt securities $ 27,837 $ 379 $ 28,216 Common stock and stock funds 38,780 1,836 40,616 Debt securities: Available for sale U.S. treasury securities 7,445 (11 ) 7,434 Investment-grade unsecured debt 1,048 31 1,079 Held to maturity Mortgage backed securities 138,089 — 138,089 Total - Marketable securities $ 213,199 $ 2,235 $ 215,434 December 31, 2018 Amortized Cost/Cost Gross Unrealized Gain (Loss) Carrying Value Equity securities: Investment funds - debt securities $ 31,934 $ (568 ) $ 31,366 Common stock and stock funds 39,731 (1,671 ) 38,060 Debt securities: Available for sale U.S. treasury securities 8,983 (31 ) 8,952 Investment-grade unsecured bonds 4,125 (145 ) 3,980 Held to maturity Mortgage backed securities 127,187 — 127,187 Total - Marketable securities $ 211,960 $ (2,415 ) $ 209,545 The Company uses the specific identification method to determine the cost basis of a debt security sold and to reclassify amounts from accumulated other comprehensive income for such securities. For the three months ended June 30, 2019 and 2018 , the proceeds from sales and maturities of marketable securities totaled $33.4 million and $9.4 million , respectively, which resulted in $0.6 million in realized gains and $0.2 million in realized loss, respectively, for such periods. For the six months ended June 30, 2019 and 2018 , the proceeds from sales and maturities of marketable securities totaled $50.2 million and $19.0 million , respectively, which resulted in $0.5 million in realized gains for both periods. For the three and six months ended June 30, 2019 , the portion of equity security unrealized losses or gains that were recognized in income totaled $56 thousand in losses and $4.5 million in gains, respectively, and were included in interest and other income on the Company's condensed consolidated statements of income and comprehensive income. For the three and six months ended June 30, 2018 , the portion of equity security unrealized gains and losses that were recognized in income totaled $0.1 million in unrealized gains and $0.8 million in unrealized losses and were included in interest and other income on the Company's condensed consolidated statements of income and comprehensive income. Variable Interest Entities In accordance with accounting standards for consolidation of variable interest entities ("VIEs"), the Company consolidates the Operating Partnership, 17 limited partnerships (comprising nine communities), and seven co-investments as of June 30, 2019 . As of December 31, 2018 , the Company consolidated the Operating Partnership, 16 limited partnerships (comprising eight communities) (the "DownREIT limited partnerships"), and eight co-investments. The Company consolidates these entities because it is deemed the primary beneficiary. Essex has no assets or liabilities other than its investment in the Operating Partnership. The consolidated total assets and liabilities related to the above consolidated co-investments and DownREIT limited partnerships, net of intercompany eliminations, were approximately $1.0 billion and $369.1 million , respectively, as of June 30, 2019 and $849.8 million and $261.7 million , respectively, as of December 31, 2018 . Noncontrolling interests in these entities were $129.3 million and $64.5 million as of June 30, 2019 and December 31, 2018 , respectively. The Company's financial risk in each VIE is limited to its equity investment in the VIE. As of June 30, 2019 and December 31, 2018 , the Company did not have any VIEs of which it was not deemed to be the primary beneficiary. Equity-based Compensation The cost of share- and unit-based compensation awards is measured at the grant date based on the estimated fair value of the awards. The estimated fair value of stock options and restricted stock granted by the Company are being amortized over the vesting period. 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 annual report on Form 10-K for the year ended December 31, 2018 ) are being amortized over the expected service periods. Fair Value of Financial Instruments Management believes that the carrying amounts of the outstanding balances under its lines of credit, and notes and other receivables approximate fair value as of June 30, 2019 and December 31, 2018 , because interest rates, yields, and other terms for these instruments are consistent with interest rates, yields, and other terms currently available for similar instruments. Management has estimated that the fair value of the Company’s fixed rate debt with a carrying value of $5.1 billion and $5.0 billion at June 30, 2019 and December 31, 2018 , respectively, was approximately $5.3 billion and $5.0 billion , respectively. Management has estimated that the fair value of the Company’s $736.3 million and $619.6 million of variable rate debt, at June 30, 2019 and December 31, 2018 , respectively, was approximately $731.3 million and $615.2 million based on the terms of existing mortgage notes payable, unsecured debt, 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, 2019 and December 31, 2018 due to the short-term maturity of these instruments. Marketable securities, except mortgage backed securities, are carried at fair value as of June 30, 2019 and December 31, 2018 . At June 30, 2019 , the Company’s investments in mortgage backed securities had a carrying value of $138.1 million and the Company estimated the fair value to be approximately $140.1 million . At December 31, 2018 , the Company’s investments in mortgage backed securities had a carrying value of $127.2 million and the Company estimated the fair value to be approximately $129.5 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 the expected, discounted cash flows to estimate 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 $4.0 million and $4.5 million during the three months ended June 30, 2019 and 2018, respectively, and $8.8 million and $9.5 million for the six months ended June 30, 2019 and 2018, respectively. The Company capitalizes leasing commissions associated with the lease-up of development communities 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 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. Under the equity method of accounting, the investment is carried at the cost of assets contributed, plus the Company's equity in earnings less distributions received and the Company's share of losses. 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 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 some of these investments 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 from co-investments. The Company reports investments in co-investments where accumulated distributions have exceeded the Company’s investment as distributions in excess of investments in co-investments in the accompanying condensed consolidated balance sheets. Changes in Accumulated Other Comprehensive Loss, Net by Component Essex Property Trust, Inc. ($ in thousands): Change in fair value and amortization of swap settlements Unrealized gains/(losses) on available for sale securities Total Balance at December 31, 2018 $ (13,077 ) $ (140 ) $ (13,217 ) Cumulative effect upon adoption of ASU No. 2017-12 175 — 175 Other comprehensive (loss) income before reclassification (2,353 ) 221 (2,132 ) Amounts reclassified from accumulated other comprehensive loss (3,787 ) (31 ) (3,818 ) Other comprehensive income (5,965 ) 190 (5,775 ) Balance at June 30, 2019 $ (19,042 ) $ 50 $ (18,992 ) Changes in Accumulated Other Comprehensive Loss, by Component Essex Portfolio, L.P. ($ in thousands): Change in fair value and amortization of swap settlements Unrealized gains/(losses) on available for sale securities Total Balance at December 31, 2018 $ (9,593 ) $ (145 ) $ (9,738 ) Cumulative effect upon adoption of ASU No. 2017-12 181 — 181 Other comprehensive income (loss) before reclassification (2,435 ) 228 (2,207 ) Amounts reclassified from accumulated other comprehensive loss (3,919 ) (32 ) (3,951 ) Other comprehensive income (6,173 ) 196 (5,977 ) Balance at June 30, 2019 $ (15,766 ) $ 51 $ (15,715 ) Amounts reclassified from accumulated other comprehensive loss in connection with derivatives are recorded in interest expense on the condensed consolidated statements of income and comprehensive income. Realized gains and losses on available for sale debt securities are included in interest and other income on the condensed consolidated statements of income and comprehensive income. Redeemable Noncontrolling Interest The carrying value of redeemable noncontrolling interest in the accompanying condensed consolidated balance sheets was $36.8 million and $35.5 million as of June 30, 2019 and December 31, 2018 , respectively. The limited partners may redeem their noncontrolling interests for cash in certain circumstances. The changes to the redemption value of redeemable noncontrolling interests for the six months ended June 30, 2019 is as follows ($ in thousands): Balance at December 31, 2018 $ 35,475 Reclassification due to change in redemption value and other 1,428 Redemptions (73 ) Balance at June 30, 2019 $ 36,830 Cash, Cash Equivalents and Restricted Cash Highly liquid investments with original maturities of three months or less when purchased are classified as cash equivalents. Restricted cash balances relate primarily to reserve requirements for capital replacement at certain communities in connection with the Company’s mortgage debt. The following table provides a reconciliation of cash, cash equivalents, and restricted cash reported within the condensed consolidated balance sheets that sum to the total of the same such amounts shown in the condensed consolidated statements of cash flows ($ in thousands): June 30, 2019 December 31, 2018 June 30, 2018 December 31, 2017 Cash and cash equivalents - unrestricted $ 38,168 $ 134,465 $ 160,902 $ 44,620 Cash and cash equivalents - restricted 16,803 16,930 16,674 16,506 Total unrestricted and restricted cash and cash equivalents shown in the condensed consolidated statement of cash flows $ 54,971 $ 151,395 $ 177,576 $ 61,126 Accounting Estimates The preparation of condensed consolidated financial statements, in accordance with U.S. 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. |
Significant Transactions During
Significant Transactions During the Six Months Ended June 30, 2019 and Subsequent Events | 6 Months Ended |
Jun. 30, 2019 | |
Business Combinations [Abstract] | |
Significant Transactions During the Six Months Ended June 30, 2019 and Subsequent Events | Significant Transactions During The Six Months Ended June 30, 2019 and Subsequent Events Significant Transactions Acquisitions In March 2019, the Company acquired its joint venture partner’s 45.0% membership interest in One South Market, a multifamily community located in San Jose, CA, for total consideration of $80.6 million . Concurrent with the closing of the acquisition, $86.0 million in mortgage debt was repaid. As a result of this acquisition, the Company realized a gain on remeasurement of co-investment of $31.5 million upon consolidation. Furthermore, the Company recognized $0.8 million in promote income as a result of the transaction, which is included in equity income from co-investments on the condensed consolidated statements of income and comprehensive income. In June 2019, the Company acquired Brio, a 300 unit apartment home community located in Walnut Creek, CA. The Company issued DownREIT limited partnership units to an affiliate of Marcus & Millichap Company, based on a contract price of $164.9 million . The property is encumbered by $98.7 million of mortgage debt which was assumed by the Company. As a result of this transaction, the Company consolidates the property, based on a VIE analysis performed by the Company. See Note 6, Related Party Transactions, for additional details. Dispositions In May 2019, the Company sold its 50.0% ownership interest in a co-investment that held land located in Oakland, CA for $6.1 million , resulting in a gain of $0.9 million within equity income from co-investments. Co-Investments Preferred Equity Investments In February 2019, the Company funded a $24.5 million related party preferred equity investment in a multifamily development community located in Mountain View, CA. The investment has an initial preferred return of 11.0% and is scheduled to mature in February 2024. See Note 6, Related Party Transactions, for additional details. In February 2019, the Company received cash of $10.9 million , including an early redemption fee of $0.1 million , for the full redemption of a related party preferred equity investment in a joint venture that holds property in San Jose, CA. See Note 6, Related Party Transactions, for additional details. In March 2019, the Company made a commitment to fund a $36.0 million preferred equity commitment in a multifamily development community located in Irvine, CA. The investment has an initial preferred return of 10.15% and is scheduled to mature in July 2022. As of June 30, 2019, the Company had funded $12.0 million of this commitment. In April 2019, the Company received cash of $16.3 million , including an early redemption fee of $0.7 million , for the full redemption of a preferred equity investment in a joint venture that holds property in Santa Ana, CA. In April 2019, the Company made a commitment to fund a $36.8 million preferred equity investment in a multifamily development community located in Oakland, CA. The investment has an initial preferred return of 10.25% and is scheduled to mature in April 2023. As of June 30, 2019, the Company had funded $5.0 million of this commitment. The remaining committed amount is expected to be funded by the end of the year. In April 2019, the Company made a commitment to fund a $11.8 million preferred equity investment in a multifamily development community located in Oakland, CA. The investment has an initial preferred return of 11.0% and is scheduled to mature in April 2023. As of June 30, 2019, the Company had funded $4.0 million of this commitment. The remaining committed amount is expected to be funded by the end of the year. Common Stock In January 2019, the Company repurchased and retired 234,061 shares totaling $57.0 million , including commissions. In February 2019, the board of directors approved the replenishment of the stock repurchase plan such that, as of such date, the Company had $250.0 million of purchase authority remaining under the replenished plan. As a result of the replenishment, as of June 30, 2019, the Company had $250.0 million of purchase authority remaining under the stock repurchase plan. Senior Unsecured Debt In February 2019, the Operating Partnership issued $350.0 million of senior unsecured notes due on March 1, 2029, with a coupon rate of 4.000% (the "2029 Notes"), which are payable on March 1 and September 1 of each year, beginning on September 1, 2019. The 2029 Notes were offered to investors at a price of 99.188% of the principal amount thereof. The 2029 Notes are general unsecured senior obligations of the Operating Partnership, rank equally in right of payment with all other senior unsecured indebtedness of the Operating Partnership and are unconditionally guaranteed by the Company. In March 2019, the Operating Partnership issued an additional $150.0 million of the 2029 Notes at a price of 100.717% of the principal amount thereof. These additional notes have substantially identical terms as the 2029 Notes issued in February 2019. The Company used the net proceeds of these offerings to repay indebtedness under its unsecured lines of credit and for other general corporate and working capital purposes. Mortgage Notes Payable In January 2019, the Company repaid $290.0 million in secured mortgage notes payable with a coupon rate of 5.57% and a stated maturity date of May 2019. The Company realized a gain on early extinguishment of debt of $1.4 million . Subsequent Events None. |
Revenues
Revenues | 6 Months Ended |
Jun. 30, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Revenues | Revenues Disaggregated Revenue The following table presents the Company’s revenues disaggregated by revenue source ($ in thousands): Three Months Ended June 30, Six Months Ended June 30, 2019 2018 2019 2018 Rental income (1) $ 353,167 $ 340,481 $ 700,972 $ 679,496 Other property (1) 6,208 6,045 12,291 11,977 Management and other fees from affiliates 2,260 2,197 4,595 4,505 Total revenues $ 361,635 $ 348,723 $ 717,858 $ 695,978 (1) On January 1, 2019, the Company adopted ASU No. 2016-02 “Leases.” As a result of this adoption certain amounts previously classified as other property revenue have been reclassified to rental income. Prior period amounts have been adjusted to conform to the current period’s presentation. The following table presents the Company’s rental and other property-related revenues disaggregated by geographic operating segment ($ in thousands): Three Months Ended June 30, Six Months Ended June 30, 2019 2018 2019 2018 Southern California $ 151,966 $ 147,249 302,990 293,807 Northern California 140,095 129,590 276,420 258,212 Seattle Metro 60,841 58,796 121,081 117,509 Other real estate assets (1) 6,473 10,891 12,772 21,945 Total rental and other property revenues $ 359,375 $ 346,526 $ 713,263 $ 691,473 (1) Other real estate assets consists of revenues generated from retail space, commercial properties, held for sale properties, and disposition properties. Executive management does not evaluate such operating performance geographically. The following table presents the Company’s rental and other property-related revenues disaggregated by current property category status ($ in thousands): Three Months Ended June 30, Six Months Ended June 30, 2019 2018 2019 2018 Same-property (1) $ 340,042 $ 328,602 $ 677,394 $ 655,869 Acquisitions (2) 4,836 — 7,107 — Development (3) 1,192 450 2,325 469 Redevelopment 5,223 5,036 10,435 10,060 Non-residential/other, net (4) 8,082 12,438 16,002 25,075 Total rental and other property revenues $ 359,375 $ 346,526 $ 713,263 $ 691,473 (1) Properties that have stabilized operations as of January 1, 2018 and are consolidated by the Company for the three and six months ended June 30, 2019 and 2018. A community is generally considered to have reached stabilized operations once it achieves an initial occupancy of 95% . (2) Acquisitions includes properties acquired which did not have comparable stabilized results as of January 1, 2018. (3) Development includes properties developed which did not have stabilized results as of January 1, 2018. (4) Non-residential/other, net consists of revenues generated from retail space, commercial properties, held for sale properties, disposition properties and student housing. Deferred Revenues and Remaining Performance Obligations When cash payments are received or due in advance of the Company’s performance of contracts with customers, deferred revenue is recorded. The total deferred revenue balance related to such contracts was $4.8 million and $6.2 million as of June 30, 2019 and December 31, 2018 , respectively, and was included in accounts payable and accrued liabilities within the accompanying consolidated balance sheets. The amount of revenue recognized for the six months ended June 30, 2019 that was included in the December 31, 2018 deferred revenue balance was $1.4 million , which was included in interest and other income within the condensed consolidated statements of income and comprehensive income. A performance obligation is a promise in a contract to transfer a distinct good or service to the customer, and is the unit of account in the revenue recognition accounting standard. As of June 30, 2019 , the Company had $4.8 million of remaining performance obligations. The Company expects to recognize approximately 19% of these remaining performance obligations in 2019, an additional 31% through 2021, and the remaining balance thereafter. |
Co-investments
Co-investments | 6 Months Ended |
Jun. 30, 2019 | |
Investments in and Advance to Affiliates, Subsidiaries, Associates, and Joint Ventures [Abstract] | |
Co-investments | Co-investments The Company has joint ventures and preferred equity investments in co-investments which are accounted for under the equity method. The co-investments, including BEXAEW, BEX II, and BEX III, the Canadian Pension Plan Investment Board ("CPPIB"), Wesco I, LLC ("Wesco I"), Wesco III, LLC ("Wesco III"), Wesco IV, LLC ("Wesco IV"), and Wesco V, LLC ("Wesco V"), own, operate, and develop apartment communities. The carrying values of the Company's co-investments as of June 30, 2019 and December 31, 2018 are as follows ($ in thousands, except parenthetical amounts): Weighted Average Company Ownership Percentage (1) June 30, 2019 December 31, 2018 Ownership interest in: CPPIB 54 % $ 473,746 $ 482,507 Wesco I, Wesco III, Wesco IV, and Wesco V 52 % 187,446 194,890 BEXAEW, BEX II, and BEX III 50 % 117,607 121,780 Other 49 % 15,071 34,093 Total operating and other co-investments, net 793,870 833,270 Total pre-development and development co-investments 50 % 120,249 94,060 Total preferred interest co-investments (includes related party investments of $68.6 million and $51.8 million as of June 30, 2019 and December 31, 2018, respectively) 409,962 372,810 Total co-investments, net $ 1,324,081 $ 1,300,140 (1) Weighted average Company ownership percentages are as of June 30, 2019 . The combined summarized entity financial information of co-investments is as follows ($ in thousands): June 30, 2019 December 31, 2018 Combined balance sheets: (1) Rental properties and real estate under development $ 4,419,528 $ 4,367,987 Other assets 81,172 104,119 Total assets $ 4,500,700 $ 4,472,106 Debt $ 2,170,899 $ 2,190,764 Other liabilities 122,353 106,316 Equity 2,207,448 2,175,026 Total liabilities and equity $ 4,500,700 $ 4,472,106 Company's share of equity $ 1,324,081 $ 1,300,140 Three Months Ended June 30, Six Months Ended June 30, 2019 2018 2019 2018 Combined statements of income: (1) Property revenues $ 81,832 $ 81,348 $ 165,557 $ 162,190 Property operating expenses (27,835 ) (26,567 ) (56,554 ) (53,636 ) Net operating income 53,997 54,781 109,003 108,554 Interest expense (16,080 ) (13,639 ) (31,195 ) (30,374 ) General and administrative (2,243 ) (2,388 ) (4,171 ) (3,880 ) Depreciation and amortization (28,937 ) (31,317 ) (58,872 ) (62,479 ) Net income $ 6,737 $ 7,437 $ 14,765 $ 11,821 Company's share of net income (2) $ 16,959 $ 15,049 $ 33,235 $ 47,823 (1) Includes preferred equity investments held by the Company. (2) Includes the Company's share of equity income from joint ventures and preferred equity investments, gain on sales of co-investments, co-investment promote income and income from early redemption of preferred equity investments. Includes related party income of $1.8 million and $0.3 million for the three months ended June 30, 2019 and 2018 , respectively, and $3.5 million and $0.7 million for the six months ended June 30, 2019 and 2018 |
Notes and Other Receivables
Notes and Other Receivables | 6 Months Ended |
Jun. 30, 2019 | |
Receivables [Abstract] | |
Notes and Other Receivables | Notes and Other Receivables Notes and other receivables consist of the following as of June 30, 2019 and December 31, 2018 ($ in thousands): June 30, 2019 December 31, 2018 Notes receivable, secured, bearing interest at 10.00%, due May 2021 $ 16,007 $ 15,226 Notes receivable, secured, bearing interest at 10.75%, due September 2020 34,438 32,650 Related party note receivable, secured, bearing interest at 9.50%, due October 2019 (1) 6,624 6,618 Notes and other receivables from affiliates (2) 4,003 4,457 Other receivables 13,344 12,944 Total notes and other receivables $ 74,416 $ 71,895 (1) See Note 6, Related Party Transactions, for additional details. (2) These amounts consist of short-term loans outstanding and due from various joint ventures as of June 30, 2019 and December 31, 2018 , respectively. See Note 6, Related Party Transactions, for additional details. |
Related Party Transactions
Related Party Transactions | 6 Months Ended |
Jun. 30, 2019 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Related Party Transactions The Company charges certain fees relating to its co-investments for asset management, property management, development and redevelopment services. These fees from affiliates totaled $3.5 million and $3.2 million during the three months ended June 30, 2019 and 2018 , respectively, and $6.9 million and $6.4 million during the six months ended June 30, 2019 and 2018, respectively. All of these fees are net of intercompany amounts eliminated by the Company. The Company netted development and redevelopment fees of $1.3 million and $1.0 million against general and administrative expenses for the three months ended June 30, 2019 and 2018 , respectively, and $2.4 million and $1.9 million for the six months ended June 30, 2019 and 2018, respectively. In November 2017, the Company provided a $29.5 million related party bridge loan to a property acquired by BEX III. The note receivable accrued interest at 3.5% and was paid off in January 2018. The Company’s Chairman and founder, Mr. George M. 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 New York Stock Exchange. In June 2019, the Company acquired Brio, a 300 unit apartment home community located in Walnut Creek, CA. The Company issued DownREIT limited partnership units to an affiliate of MMC, based on a contract price of $164.9 million . The property is encumbered by $98.7 million of mortgage debt which was assumed by the Company. As a result of this transaction, the Company consolidates the property, based on a VIE analysis performed by the Company. In February 2019, the Company funded a $24.5 million preferred equity investment in an entity whose sponsor is an affiliate of MMC, which owns a multifamily development community located in Mountain View, CA. The investment has an initial preferred return of 11.0% and is scheduled to mature in February 2024. In October 2018, the Company funded a $18.6 million preferred equity investment in an entity whose sponsor is an affiliate of MMC. The entity wholly owns a 268 apartment home community development located in Burlingame, CA. This investment will accrue interest based on an initial 12.00% preferred return. The investment is scheduled to mature in April 2024. In May 2018, the Company made a commitment to fund a $26.5 million preferred equity investment in an entity whose sponsors include an affiliate of MMC. The entity wholly owns a 400 apartment home community located in Ventura, CA. This investment will accrue interest based on a 10.25% preferred return. The investment is scheduled to mature in May 2023. As of June 30, 2019, the Company had funded $21.3 million of the commitment. The remaining committed amount will be funded when requested by the sponsors. In March 2017, the Company converted its existing $15.3 million preferred equity investment in Sage at Cupertino, a 230 apartment home community located in San Jose, CA, into a 40.5% common equity ownership interest in the property. The Company issued DownREIT limited partnership units to the other members, including an MMC affiliate, based on an estimated property valuation of $90.0 million . At the time of the conversion, the property was encumbered by $52.0 million of mortgage debt. As a result of this transaction, the Company consolidates the property, based on a VIE analysis performed by the Company. In 2015, the Company made preferred equity investments totaling $20.0 million in three entities affiliated with MMC that own apartment communities in California. The Company earns a 9.5% preferred return on each such investment. One $5.0 million investment, which was scheduled to mature in 2022, was fully redeemed in 2017. Another $5.0 million investment, which was scheduled to mature in 2022, was fully redeemed in 2018. The remaining investment was fully redeemed in February 2019. As described in Note 5, Notes and Other Receivables, the Company has provided short-term loans to affiliates. As of June 30, 2019 and December 31, 2018 , $4.0 million and $4.5 million , respectively, of short-term loans remained outstanding due from joint venture affiliates and is classified within notes and other receivables in the accompanying condensed consolidated balance sheets. In November 2016, the Company provided a $6.6 million mezzanine loan to a limited liability company in which MMC holds a significant ownership interest through subsidiaries. The mezzanine loan is classified within notes and other receivables in the accompanying condensed consolidated balance sheets and had an outstanding balance of $6.6 million as of both June 30, 2019 and December 31, 2018 |
Debt
Debt | 6 Months Ended |
Jun. 30, 2019 | |
Debt Disclosure [Abstract] | |
Debt | Debt The Company does not have indebtedness as debt is incurred by the Operating Partnership. The Company guarantees the Operating Partnership’s unsecured debt including the revolving credit facilities for the full term of the facilities. Debt consists of the following ($ in thousands): June 30, 2019 December 31, 2018 Weighted Average Maturity In Years as of June 30, 2019 Unsecured bonds private placement - fixed rate $ 274,723 $ 274,624 1.6 Term loan - variable rate 348,991 348,813 2.6 Bonds public offering - fixed rate 3,670,598 3,175,879 7.5 Unsecured debt, net (1) 4,294,312 3,799,316 Lines of credit (2) 117,000 — Mortgage notes payable, net (3) 1,429,939 1,806,626 5.7 Total debt, net $ 5,841,251 $ 5,605,942 Weighted average interest rate on fixed rate unsecured bonds private placement and bonds public offering 3.9 % 3.9 % Weighted average interest rate on variable rate term loan 3.0 % 3.0 % Weighted average interest rate on lines of credit 3.2 % 3.2 % Weighted average interest rate on mortgage notes payable 4.3 % 4.3 % (1) Includes unamortized discount of $9.2 million and $7.1 million and unamortized debt issuance costs of $21.5 million and $18.5 million , as of June 30, 2019 and December 31, 2018 , respectively. (2) Lines of credit, related to the Company's two lines of unsecured credit aggregating $1.24 billion as of June 30, 2019 , excludes unamortized debt issuance costs of $4.4 million and $3.9 million as of June 30, 2019 and December 31, 2018 , respectively. These debt issuance costs are included in prepaid expenses and other assets on the condensed consolidated balance sheets. As of June 30, 2019, the Company’s $1.2 billion credit facility had an interest rate of LIBOR plus 0.825% , which is based on a tiered rate structure tied to the Company’s credit ratings and a scheduled maturity date of December 2022 with one 18 -month extension, exercisable at the Company’s option. As of June 30, 2019, the Company’s $35.0 million working capital unsecured line of credit had an interest rate of LIBOR plus 0.825% , which is based on a tiered rate structure tied to the Company’s credit ratings and a scheduled maturity date of February 2021. (3) Includes total unamortized premium of $12.3 million and $14.9 million , reduced by unamortized debt issuance costs of $3.4 million and $4.2 million , as of June 30, 2019 and December 31, 2018 , respectively. The aggregate scheduled principal payments of the Company’s outstanding debt as of June 30, 2019 are as follows (excluding lines of credit) ($ in thousands): Remaining in 2019 $ 118,081 2020 695,580 2021 545,537 2022 693,188 2023 602,945 Thereafter 3,090,767 Total $ 5,746,098 |
Segment Information
Segment Information | 6 Months Ended |
Jun. 30, 2019 | |
Segment Reporting [Abstract] | |
Segment Information | Segment Information The Company's segment disclosures present the measure used by the chief operating decision makers for purposes of assessing each segment's performance. The Company's chief operating decision makers are comprised of several members of its executive management team who use net operating income ("NOI") to assess the performance of the business for the Company's reportable operating segments. NOI represents total property revenues less direct property operating expenses. The executive management team evaluates the Company's operating performance geographically. 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 NOI are management and other fees from affiliates and interest and other income. Non-segment revenues and NOI included in the following schedule also consist of revenues generated from commercial properties and properties that have been sold. Other non-segment assets include items such as real estate under development, co-investments, real estate held for sale, net, cash and cash equivalents, marketable securities, notes and other receivables, and prepaid expenses and other assets. The revenues and NOI for each of the reportable operating segments are summarized as follows for the three and six months ended June 30, 2019 and 2018 ($ in thousands): Three Months Ended June 30, Six Months Ended June 30, 2019 2018 2019 2018 Revenues: Southern California $ 151,966 $ 147,249 $ 302,990 $ 293,807 Northern California 140,095 129,590 276,420 258,212 Seattle Metro 60,841 58,796 121,081 117,509 Other real estate assets 6,473 10,891 12,772 21,945 Total property revenues $ 359,375 $ 346,526 $ 713,263 $ 691,473 Net operating income: Southern California $ 108,693 $ 105,882 $ 216,122 $ 210,245 Northern California 104,321 96,380 205,026 190,978 Seattle Metro 43,845 40,452 85,312 82,433 Other real estate assets 7,069 9,666 13,040 18,708 Total net operating income 263,928 252,380 519,500 502,364 Management and other fees from affiliates 2,260 2,197 4,595 4,505 Corporate-level property management expenses (8,212 ) (7,782 ) (16,365 ) (15,552 ) Depreciation and amortization (119,465 ) (119,330 ) (240,033 ) (238,435 ) General and administrative (13,927 ) (11,125 ) (27,386 ) (25,938 ) Expensed acquisition and investment related costs (24 ) (68 ) (56 ) (125 ) Gain on sale of real estate and land — 22,244 — 22,244 Interest expense (54,112 ) (56,278 ) (107,755 ) (111,139 ) Total return swap income 1,975 2,228 4,020 4,498 Interest and other income 8,347 6,895 20,608 12,804 Equity income from co-investments 16,959 15,049 33,235 47,823 Gain on early retirement of debt, net 332 — 1,668 — Gain on remeasurement of co-investment — — 31,535 — Net income $ 98,061 $ 106,410 $ 223,566 $ 203,049 Total assets for each of the reportable operating segments are summarized as follows as of June 30, 2019 and December 31, 2018 ($ in thousands): June 30, 2019 December 31, 2018 Assets: Southern California $ 4,275,854 $ 4,350,377 Northern California 4,549,598 4,270,238 Seattle Metro 1,451,764 1,472,916 Other real estate assets 61,082 63,022 Net reportable operating segment - real estate assets 10,338,298 10,156,553 Real estate under development 542,207 454,629 Co-investments 1,324,081 1,300,140 Cash and cash equivalents, including restricted cash 54,971 151,395 Marketable securities 215,434 209,545 Notes and other receivables 74,416 71,895 Operating lease right-of-use assets 76,205 — Prepaid expenses and other assets 45,533 39,439 Total assets $ 12,671,145 $ 12,383,596 |
Net Income Per Common Share and
Net Income Per Common Share and Net Income Per Common Unit | 6 Months Ended |
Jun. 30, 2019 | |
Earnings Per Share [Abstract] | |
Net Income Per Common Share and Net Income Per Common Unit | Net Income Per Common Share and Net Income Per Common Unit ($ in thousands, except share and unit data): Essex Property Trust, Inc. Three Months Ended June 30, 2019 Three Months Ended June 30, 2018 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 $ 92,275 65,718,806 $ 1.40 $ 100,440 66,047,751 $ 1.52 Effect of Dilutive Securities: Stock options — 103,009 — 48,598 Diluted: Net income available to common stockholders $ 92,275 65,821,815 $ 1.40 $ 100,440 66,096,349 $ 1.52 Six Months Ended June 30, 2019 Six Months Ended June 30, 2018 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 $ 211,133 65,710,842 $ 3.21 $ 191,358 66,045,897 $ 2.90 Effect of Dilutive Securities: Stock options — 91,575 — 42,906 Diluted: Net income available to common stockholders $ 211,133 65,802,417 $ 3.21 $ 191,358 66,088,803 $ 2.90 The tables above exclude from the calculations of diluted earnings per share weighted average convertible OP Units of 2,299,284 and 2,273,098 , which include vested Series Z-1 Incentive Units, 2014 Long-Term Incentive Plan Units, and 2015 Long-Term Incentive Plan Units for the three months ended June 30, 2019 and 2018 , respectively, and 2,302,158 and 2,273,255 for the six months ended June 30, 2019 and 2018, respectively, because they were anti-dilutive. The related income allocated to these convertible OP Units aggregated $3.2 million and $3.5 million for the three months ended June 30, 2019 and 2018 , respectively, and $7.4 million and $6.6 million for the six months ended June 30, 2019 and 2018, respectively. Additionally, the tables exclude all DownREIT limited partnership units for which the Operating Partnership has the ability and intention to redeem the units for cash and does not consider them to be common stock equivalents. Stock options of zero and 185,181 for the three months ended June 30, 2019 and 2018 , respectively, and 106,029 and 185,470 for the six months ended June 30, 2019 and 2018, respectively, were excluded from the calculation of diluted earnings per share because the assumed proceeds per share of such options plus the average unearned compensation were greater than the average market price of the common stock for the periods ended and, therefore, were anti-dilutive. Essex Portfolio, L.P. Three Months Ended June 30, 2019 Three Months Ended June 30, 2018 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 $ 95,503 68,018,090 $ 1.40 $ 103,900 68,320,849 $ 1.52 Effect of Dilutive Securities: Stock options — 103,009 — 48,598 Diluted: Net income available to common unitholders $ 95,503 68,121,099 $ 1.40 $ 103,900 68,369,447 $ 1.52 Six Months Ended June 30, 2019 Six Months Ended June 30, 2018 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 $ 218,532 68,012,999 $ 3.21 $ 197,950 68,319,151 $ 2.90 Effect of Dilutive Securities: Stock options — 91,575 — 42,906 Diluted: Net income available to common unitholders $ 218,532 68,104,574 $ 3.21 $ 197,950 68,362,057 $ 2.90 Stock options of zero and 185,181 for the three months ended June 30, 2019 and 2018 , respectively, and 106,029 and 185,470 for the six months ended June 30, 2019 and 2018, respectively, were excluded from the calculation of diluted earnings per unit because the assumed proceeds per unit of these options plus the average unearned compensation were greater than the average market price of the common unit for the periods ended and, therefore, were anti-dilutive. Additionally, the tables exclude all DownREIT limited partnership units for which the Operating Partnership has the ability and intention to redeem the units for cash and does not consider them to be common stock equivalents. |
Derivative Instruments and Hedg
Derivative Instruments and Hedging Activities | 6 Months Ended |
Jun. 30, 2019 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Instruments and Hedging Activities | Derivative Instruments and Hedging Activities As of June 30, 2019 , the Company had entered into interest rate swap contracts with an aggregate notional amount of $175.0 million that effectively fixed the interest rate on the $175.0 million unsecured term loan at 2.3% . These derivatives qualify for hedge accounting. As of June 30, 2019 , the Company had interest rate caps, which are not accounted for as hedges, totaling a notional amount of $9.9 million that effectively limit the Company’s exposure to interest rate risk by providing a ceiling on the variable interest rate for $9.9 million of the Company’s tax exempt variable rate debt. As of June 30, 2019 and December 31, 2018 , the aggregate carrying value of the interest rate swap contracts was an asset of $1.3 million and $5.8 million , respectively, and is included in prepaid expenses and other assets on the condensed consolidated balance sheets. The aggregate carrying value of the interest rate caps was zero on the condensed consolidated balance sheets as of both June 30, 2019 and December 31, 2018 . Hedge ineffectiveness related to cash flow hedges, which is included in interest expense on the condensed consolidated statements of income and comprehensive income, was not significant for the three and six months ended June 30, 2019 and 2018 . Additionally, the Company has total return swap contracts, with an aggregate notional amount of $255.7 million , that effectively convert $255.7 million of mortgage notes payable to a floating interest rate based on the Securities Industry and Financial Markets Association Municipal Swap Index ("SIFMA") plus a spread. The total return swaps provide fair market value protection on the mortgage notes payable to the counterparties during the initial period of the total return swap until the Company's option to call the mortgage notes at par can be exercised. The Company can currently call all of its total return swaps, with $255.7 million of the outstanding debt at par. These derivatives do not qualify for hedge accounting and had a carrying and fair value of zero at both June 30, 2019 and December 31, 2018 . These total return swaps are scheduled to mature between September 2021 and November 2022 . The realized gains of $2.0 million and $2.2 million for the three months ended June 30, 2019 and 2018 , respectively, and $4.0 million and $4.5 million for the six months ended June 30, 2019 and 2018, respectively, were reported in the condensed consolidated statements of income and comprehensive income as total return swap income. |
Lease Agreements - Company as L
Lease Agreements - Company as Lessor | 6 Months Ended |
Jun. 30, 2019 | |
Leases [Abstract] | |
Lease Agreements - Company as Lessor | Lease Agreements - Company as Lessor As of June 30, 2019 , the Company is a lessor of apartment homes at all of its consolidated operating and lease-up communities, one commercial building, and commercial portions of mixed use communities. The apartment homes are rented under short-term leases (generally, lease terms of nine to 12 months) while commercial lease terms typically range from five to 20 years. All such leases are classified as operating leases. Although the majority of the Company’s apartment home and commercial leasing income is derived from fixed lease payments, some lease agreements also allow for variable payments. The primary driver of variable leasing income comes from utility reimbursements from apartment home leases and common area maintenance reimbursements from commercial leases. A small number of commercial leases contain provisions for lease payments based on a percentage of gross retail sales over set hurdles. At the end of the term of apartment home leases, unless the lessee decides to renew the lease with the Company at the market rate or gives notice not to renew, the lease will be automatically renewed on a month-to-month term. Apartment home leases include an option to terminate the lease, however the lessee must pay the Company for expected or actual downtime to find a new tenant to lease the space. Most commercial leases include options to renew, with the renewal periods extending the term of the lease for no greater than the same period of time as the original lease term. The initial option to renew for commercial leases will typically be based on a fixed price while any subsequent renewal options will generally be based on the current market rate at the time of the renewal. Certain commercial leases contain lease termination options that would require the lessee to pay termination fees based on the expected amount of time it would take the Company to re-lease the space. The Company’s apartment home and commercial lease agreements do not contain residual value guarantees. As the Company is the lessor of real estate assets which tend to either hold their value or appreciate, residual value risk is not deemed to be substantial. Furthermore, the Company carries comprehensive liability, fire, extended coverage, and rental loss insurance for each of its communities as well as limited insurance coverage for certain types of extraordinary losses, such as, for example, losses from terrorism or earthquakes. A maturity analysis of undiscounted future minimum non-cancelable base rent to be received under the above operating leases as of June 30, 2019 is summarized as follows ($ in thousands): Future Minimum Rent Remaining in 2019 $ 511,596 2020 232,775 2021 14,872 2022 13,650 2023 12,614 Thereafter 34,218 $ 819,725 As of December 31, 2018, in accordance with previously applicable lease accounting guidance, Accounting Standards Codification ("ASC"), 840, "Leases", the future minimum non-cancelable base rent to be received under one commercial building and commercial portions of mixed use communities, for which the Company was the lessor, was as follows ($ in thousands): Future Minimum Rent 2019 $ 16,386 2020 15,842 2021 14,412 2022 13,324 2023 12,181 Thereafter 33,034 $ 105,179 Practical Expedients For all operating leases the Company has elected to account for lease (e.g., fixed payments including rent) and non-lease components (e.g., utility reimbursements and common-area maintenance costs) as a single combined lease component under ASC 842 as the lease components are the predominant elements of the combined components. As part of the transition to ASC 842, the Company has elected to use the modified retrospective transition method with the new standard being applied as of the January 1, 2019 adoption date. Additionally, the Company has elected, as of the adoption date, not to reassess whether expired or existing contracts contain leases under the new definition of a lease, not to reassess the lease classification for expired or existing leases, not to reassess whether previously capitalized initial direct costs would qualify for capitalization under ASC 842, and not to reassess whether existing or expired land easements meet the definition of a lease. |
Lease Agreements - Company as_2
Lease Agreements - Company as Lessee | 6 Months Ended |
Jun. 30, 2019 | |
Leases [Abstract] | |
Lease Agreements - Company as Lessee | Lease Agreements - Company as Lessee As of June 30, 2019 , the Company is a lessee of corporate office space, ground leases and a parking lease associated with various consolidated properties, and equipment. Lease terms for the Company's office leases, in general, range between five to 10 years while ground leases and the parking lease have terms typically ranging from 20 to 85 years. The corporate office leases occasionally contain renewal options of approximately five years while certain ground leases contain renewal options that can extend the lease term from approximately 10 to 39 years. A majority of the Company’s ground leases and the parking lease are subject to changes in the Consumer Price Index ("CPI"). Furthermore, certain of the Company’s ground leases include rental payments based on a percentage of gross or net income. While lease liabilities are not remeasured as a result of changes in the CPI or percentage of gross or net income, such changes are treated as variable lease payments and recognized in the period in which the obligation for those payments was incurred. The Company’s lease agreements do not contain any residual value guarantees or restrictive covenants. Operating lease right-of-use assets and operating lease liabilities are recognized based on the present value of lease payments over the lease term at commencement date. Because most of the Company’s leases do not provide an implicit rate, the Company uses its incremental borrowing rate based on the information available at commencement date in determining the present value of lease payments. As of June 30, 2019 and December 31, 2018 , the Company had no material finance leases. Supplemental condensed consolidated balance sheet information related to leases as of June 30, 2019 is as follows ($ in thousands): Classification June 30, 2019 Assets Operating lease right-of-use assets Operating lease right-of-use assets $ 76,205 Total leased assets $ 76,205 Liabilities Operating lease liabilities Operating lease liabilities 78,226 Total lease liabilities $ 78,226 The components of lease expense for the three and six months ended June 30, 2019 were as follows ($ in thousands): Three Months Ended June 30, 2019 Six Months Ended June 30, 2019 Operating lease cost $ 1,687 $ 3,373 Variable lease cost 371 513 Short-term lease cost 152 284 Sublease income (110 ) (217 ) Total lease cost $ 2,100 $ 3,953 A maturity analysis of lease liabilities as of June 30, 2019 are as follows ($ in thousands): Operating Leases Remaining in 2019 $ 3,419 2020 6,855 2021 6,877 2022 6,888 2023 6,860 Thereafter 153,258 Total lease payments $ 184,157 Less: Imputed interest (105,931 ) Present Value of lease liabilities $ 78,226 Lease term and discount rate information for leases at June 30, 2019 are as follows: Weighted-average of remaining lease terms (years) Operating Leases 39 Weighted-average of discount rates Operating Leases 4.98 % As of December 31, 2018, in accordance with previously applicable lease accounting guidance, ASC 840, the total minimum lease commitments under operating leases was as follows ($ in thousands): Future Minimum Rent 2019 $ 6,811 2020 6,855 2021 6,877 2022 6,888 2023 6,860 Thereafter 153,258 $ 187,549 Practical Expedients Leases with an initial term of 12 months or less are not recorded on the balance sheet. The Company recognizes the lease expense for such leases on a straight-line basis over the lease term. The Company has elected to account for lease (e.g., fixed payments including rent) and non-lease components (e.g., common-area maintenance costs) as a single combined lease component under ASC 842 as the lease components are the predominant elements of the combined components. As part of the transition to ASC 842, the Company elected to use the modified retrospective transition method with the new standard being applied as of the January 1, 2019 adoption date. Additionally, the Company has elected, as of the adoption date, not to reassess whether expired or existing contracts contain leases under the new definition of a lease, not to reassess the lease classification for expired or existing leases, not to reassess whether previously capitalized initial direct costs would qualify for capitalization under ASC 842, and not to reassess whether existing or expired land easements meet the definition of a lease. |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies The Company is subject to various lawsuits in the normal course of its business operations. Such lawsuits have not had a material adverse effect on the Company's financial condition, results of operations or cash flows. While no assurances can be given, the Company does not believe there is any pending or threatened litigation against the Company that, individually or in the aggregate, would reasonably be expected to have a material adverse effect on the Company. |
Organization and Basis of Pre_2
Organization and Basis of Presentation (Policies) | 6 Months Ended |
Jun. 30, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Consolidation Policy | 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 its subsidiaries (the "Operating Partnership," which holds the operating assets of the Company), prepared in accordance with U.S. generally accepted accounting principles ("U.S. 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, 2018 . |
New Accounting Pronouncements | Accounting Pronouncements Adopted in the Current Year In February 2016, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No. 2016-02 (Topic 842) "Leases," which requires an entity that is a lessee to classify leases as either finance or operating and to recognize a lease liability and a right-of-use asset for all leases that have a duration of greater than 12 months. Leases of 12 months or less are to be accounted for similar to prior leasing guidance (Topic 840) for operating leases. For lessors, accounting for leases under the new standard is substantially the same as prior leasing guidance for sales-type leases, direct financing leases, and operating leases, but eliminates current real estate specific provisions and changes the treatment of initial direct costs. In July 2018, the FASB issued ASU No. 2018-11 "Leases (Topic 842): Targeted Improvements," which includes a practical expedient that allows lessors to not separate nonlease components from the associated lease component. This provides the Company with the option of not bifurcating certain common area maintenance recoveries as a non-lease component, if certain requirements are met. The Company adopted ASU No. 2016-02 and ASU No. 2018-11 as of January 1, 2019 using the modified retrospective approach and elected a package of practical expedients. There was no adjustment to the opening balance of retained earnings as a result of the adoption. See Note 11, Lease Agreements - Company as Lessor, and Note 12, Lease Agreements - Company as Lessee, for further details. In August 2017, the FASB issued ASU No. 2017-12 "Derivatives and Hedging - Targeted Improvements to Accounting for Hedging Activities," which, among other things, requires entities to present the earnings effect of hedging instruments in the same income statement line item in which the earnings effect of the hedged item is reported. The new standard also adds new disclosure requirements. The Company adopted ASU No. 2017-12 as of January 1, 2019 using the modified retrospective method by applying a cumulative effect adjustment to accumulated other comprehensive loss, net of $0.2 million , representing accumulated net hedge ineffectiveness. Furthermore, as a result of the adoption of this standard, the Company will recognize qualifying hedge ineffectiveness through accumulated other comprehensive income as opposed to current earnings. Recent Accounting Pronouncements In June 2016, the FASB issued ASU No. 2016-13 "Measurement of Credit Losses on Financial Instruments," which amends the current approach to estimate credit losses on certain financial assets, including trade and other receivables, available-for-sale securities, and other financial instruments. Generally, this amendment requires entities to establish a valuation allowance for the expected lifetime losses of these certain financial assets. Subsequent changes in the valuation allowance are recorded in current earnings and reversal of previous losses are permitted. Currently, U.S. GAAP requires entities to write down credit losses only when losses are probable and loss reversals are not permitted. The FASB additionally issued various updates to clarify and amend the guidance provided in ASU 2016-13. In May 2019, the FASB issued ASU 2019-04, "Codification Improvements to Topic 326, Financial Instruments - Credit Losses, Topic 815, Derivatives and Hedging, and Topic 825, Financial Instruments," which, with respect to credit losses, among other things, clarifies and addresses issues related to accrued interest, transfers between classifications of loans or debt securities, recoveries, and variable interest rates. Additionally, in May 2019, the FASB issued ASU 2019-05, "Financial Instruments - Credit Losses (Topic 326): Targeted Transition Relief," which allows entities to irrevocably elect the fair value option on certain financial instruments. The new standards will be effective for the Company beginning January 1, 2020 and early adoption is permitted. The Company is currently evaluating the impact of these amendments on its consolidated results of operations and financial position, with a focus on investments in mortgage backed securities and mezzanine loans. In August 2018, the FASB issued ASU No. 2018-13 "Fair Value Measurement (Topic 820): Disclosure Framework - Changes to the Disclosure Requirements for Fair Value Measurement," which eliminates certain disclosure requirements affecting all levels of measurements, and modifies and adds new disclosure requirements for Level 3 measurements. The new standard will be effective for the Company beginning January 1, 2020 and early adoption is permitted. The Company expects to apply the new standard on January 1, 2020 and does not expect the adoption to have a material impact on the Company's consolidated results of operations of financial position. |
Marketable Securities | Marketable Securities The Company reports its equity securities and available for sale debt securities at fair value, based on quoted market prices (Level 1 for the common stock and investment funds, Level 2 for the unsecured bonds and Level 3 for investments in mortgage backed securities, as defined by the FASB standard for fair value measurements). As of June 30, 2019 and December 31, 2018 , $6.8 million and $6.7 million , respectively, of equity securities presented within common stock and stock funds in the tables below, represent investments measured at fair value, using net asset value as a practical expedient, and are not categorized in the fair value hierarchy. Any unrealized gain or loss in debt securities classified as available for sale is recorded as other comprehensive income. Unrealized gains and losses in equity securities, realized gains and losses in debt securities, interest 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, 2019 and December 31, 2018 , equity securities and debt securities consisted primarily of investment-grade unsecured bonds, U.S. treasury securities, common stock and stock funds, and investments in mortgage backed securities. As of June 30, 2019 and December 31, 2018 , the Company classified its investments in mortgage backed securities, which mature in November 2019 and September 2020, as held to maturity, and accordingly, these securities are stated at their amortized cost. The discount on the mortgage backed securities is being amortized to interest income based on an estimated yield and the maturity date of the securities. |
Variable Interest Entities | Variable Interest Entities In accordance with accounting standards for consolidation of variable interest entities ("VIEs"), the Company consolidates the Operating Partnership, 17 limited partnerships (comprising nine communities), and seven co-investments as of June 30, 2019 . As of December 31, 2018 , the Company consolidated the Operating Partnership, 16 limited partnerships (comprising eight communities) (the "DownREIT limited partnerships"), and eight co-investments. The Company consolidates these entities because it is deemed the primary beneficiary. Essex has no assets or liabilities other than its investment in the Operating Partnership. The consolidated total assets and liabilities related to the above consolidated co-investments and DownREIT limited partnerships, net of intercompany eliminations, were approximately $1.0 billion and $369.1 million , respectively, as of June 30, 2019 and $849.8 million and $261.7 million , respectively, as of December 31, 2018 . Noncontrolling interests in these entities were $129.3 million and $64.5 million as of June 30, 2019 and December 31, 2018 , respectively. The Company's financial risk in each VIE is limited to its equity investment in the VIE. As of June 30, 2019 and December 31, 2018 , the Company did not have any VIEs of which it was not deemed to be the primary beneficiary. |
Equity-based Compensation | Equity-based Compensation The cost of share- and unit-based compensation awards is measured at the grant date based on the estimated fair value of the awards. The estimated fair value of stock options and restricted stock granted by the Company are being amortized over the vesting period. 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 annual report on Form 10-K for the year ended December 31, 2018 ) are being amortized over the expected service periods. |
Fair Value of Financial Instruments | Fair Value of Financial Instruments Management believes that the carrying amounts of the outstanding balances under its lines of credit, and notes and other receivables approximate fair value as of June 30, 2019 and December 31, 2018 , because interest rates, yields, and other terms for these instruments are consistent with interest rates, yields, and other terms currently available for similar instruments. Management has estimated that the fair value of the Company’s fixed rate debt with a carrying value of $5.1 billion and $5.0 billion at June 30, 2019 and December 31, 2018 , respectively, was approximately $5.3 billion and $5.0 billion , respectively. Management has estimated that the fair value of the Company’s $736.3 million and $619.6 million of variable rate debt, at June 30, 2019 and December 31, 2018 , respectively, was approximately $731.3 million and $615.2 million based on the terms of existing mortgage notes payable, unsecured debt, 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, 2019 and December 31, 2018 due to the short-term maturity of these instruments. Marketable securities, except mortgage backed securities, are carried at fair value as of June 30, 2019 and December 31, 2018 . At June 30, 2019 , the Company’s investments in mortgage backed securities had a carrying value of $138.1 million and the Company estimated the fair value to be approximately $140.1 million . At December 31, 2018 , the Company’s investments in mortgage backed securities had a carrying value of $127.2 million and the Company estimated the fair value to be approximately $129.5 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 the expected, discounted cash flows to estimate fair value. |
Capitalization of Costs | Capitalization of Costs The Company’s capitalized internal costs related to development and redevelopment projects were comprised primarily of employee compensation and totaled $4.0 million and $4.5 million during the three months ended June 30, 2019 and 2018, respectively, and $8.8 million and $9.5 million for the six months ended June 30, 2019 and 2018, respectively. The Company capitalizes leasing commissions associated with the lease-up of development communities and amortizes the costs over the life of the leases. The amounts capitalized for leasing commissions are immaterial for all periods presented. |
Co-investments | Co-investments The Company owns investments in joint ventures 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. Under the equity method of accounting, the investment is carried at the cost of assets contributed, plus the Company's equity in earnings less distributions received and the Company's share of losses. 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 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 some of these investments 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 from co-investments. The Company reports investments in co-investments where accumulated distributions have exceeded the Company’s investment as distributions in excess of investments in co-investments in the accompanying condensed consolidated balance sheets. |
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 statements of income and comprehensive income. Realized gains and losses on available for sale debt securities are included in interest and other income on the condensed consolidated statements of income and comprehensive income. |
Cash, Cash Equivalents and Restricted Cash | Cash, Cash Equivalents and Restricted Cash Highly liquid investments with original maturities of three months or less when purchased are classified as cash equivalents. Restricted cash balances relate primarily to reserve requirements for capital replacement at certain communities in connection with the Company’s mortgage debt. |
Accounting Estimates | Accounting Estimates The preparation of condensed consolidated financial statements, in accordance with U.S. 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 Pre_3
Organization and Basis of Presentation (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Components of marketable securities | As of June 30, 2019 and December 31, 2018 , marketable securities consist of the following ($ in thousands): June 30, 2019 Amortized Cost/Cost Gross Unrealized Gain (Loss) Carrying Value Equity securities: Investment funds - debt securities $ 27,837 $ 379 $ 28,216 Common stock and stock funds 38,780 1,836 40,616 Debt securities: Available for sale U.S. treasury securities 7,445 (11 ) 7,434 Investment-grade unsecured debt 1,048 31 1,079 Held to maturity Mortgage backed securities 138,089 — 138,089 Total - Marketable securities $ 213,199 $ 2,235 $ 215,434 December 31, 2018 Amortized Cost/Cost Gross Unrealized Gain (Loss) Carrying Value Equity securities: Investment funds - debt securities $ 31,934 $ (568 ) $ 31,366 Common stock and stock funds 39,731 (1,671 ) 38,060 Debt securities: Available for sale U.S. treasury securities 8,983 (31 ) 8,952 Investment-grade unsecured bonds 4,125 (145 ) 3,980 Held to maturity Mortgage backed securities 127,187 — 127,187 Total - Marketable securities $ 211,960 $ (2,415 ) $ 209,545 |
Changes in accumulated other comprehensive income (loss) | Changes in Accumulated Other Comprehensive Loss, Net by Component Essex Property Trust, Inc. ($ in thousands): Change in fair value and amortization of swap settlements Unrealized gains/(losses) on available for sale securities Total Balance at December 31, 2018 $ (13,077 ) $ (140 ) $ (13,217 ) Cumulative effect upon adoption of ASU No. 2017-12 175 — 175 Other comprehensive (loss) income before reclassification (2,353 ) 221 (2,132 ) Amounts reclassified from accumulated other comprehensive loss (3,787 ) (31 ) (3,818 ) Other comprehensive income (5,965 ) 190 (5,775 ) Balance at June 30, 2019 $ (19,042 ) $ 50 $ (18,992 ) Changes in Accumulated Other Comprehensive Loss, by Component Essex Portfolio, L.P. ($ in thousands): Change in fair value and amortization of swap settlements Unrealized gains/(losses) on available for sale securities Total Balance at December 31, 2018 $ (9,593 ) $ (145 ) $ (9,738 ) Cumulative effect upon adoption of ASU No. 2017-12 181 — 181 Other comprehensive income (loss) before reclassification (2,435 ) 228 (2,207 ) Amounts reclassified from accumulated other comprehensive loss (3,919 ) (32 ) (3,951 ) Other comprehensive income (6,173 ) 196 (5,977 ) Balance at June 30, 2019 $ (15,766 ) $ 51 $ (15,715 ) |
Schedule of changes to the redemption value of noncontrolling interests | The changes to the redemption value of redeemable noncontrolling interests for the six months ended June 30, 2019 is as follows ($ in thousands): Balance at December 31, 2018 $ 35,475 Reclassification due to change in redemption value and other 1,428 Redemptions (73 ) Balance at June 30, 2019 $ 36,830 |
Schedule of cash and cash equivalents | The following table provides a reconciliation of cash, cash equivalents, and restricted cash reported within the condensed consolidated balance sheets that sum to the total of the same such amounts shown in the condensed consolidated statements of cash flows ($ in thousands): June 30, 2019 December 31, 2018 June 30, 2018 December 31, 2017 Cash and cash equivalents - unrestricted $ 38,168 $ 134,465 $ 160,902 $ 44,620 Cash and cash equivalents - restricted 16,803 16,930 16,674 16,506 Total unrestricted and restricted cash and cash equivalents shown in the condensed consolidated statement of cash flows $ 54,971 $ 151,395 $ 177,576 $ 61,126 |
Schedule of restricted cash and cash equivalents | The following table provides a reconciliation of cash, cash equivalents, and restricted cash reported within the condensed consolidated balance sheets that sum to the total of the same such amounts shown in the condensed consolidated statements of cash flows ($ in thousands): June 30, 2019 December 31, 2018 June 30, 2018 December 31, 2017 Cash and cash equivalents - unrestricted $ 38,168 $ 134,465 $ 160,902 $ 44,620 Cash and cash equivalents - restricted 16,803 16,930 16,674 16,506 Total unrestricted and restricted cash and cash equivalents shown in the condensed consolidated statement of cash flows $ 54,971 $ 151,395 $ 177,576 $ 61,126 |
Revenues (Tables)
Revenues (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of revenue | The following table presents the Company’s revenues disaggregated by revenue source ($ in thousands): Three Months Ended June 30, Six Months Ended June 30, 2019 2018 2019 2018 Rental income (1) $ 353,167 $ 340,481 $ 700,972 $ 679,496 Other property (1) 6,208 6,045 12,291 11,977 Management and other fees from affiliates 2,260 2,197 4,595 4,505 Total revenues $ 361,635 $ 348,723 $ 717,858 $ 695,978 (1) On January 1, 2019, the Company adopted ASU No. 2016-02 “Leases.” As a result of this adoption certain amounts previously classified as other property revenue have been reclassified to rental income. Prior period amounts have been adjusted to conform to the current period’s presentation. The following table presents the Company’s rental and other property-related revenues disaggregated by geographic operating segment ($ in thousands): Three Months Ended June 30, Six Months Ended June 30, 2019 2018 2019 2018 Southern California $ 151,966 $ 147,249 302,990 293,807 Northern California 140,095 129,590 276,420 258,212 Seattle Metro 60,841 58,796 121,081 117,509 Other real estate assets (1) 6,473 10,891 12,772 21,945 Total rental and other property revenues $ 359,375 $ 346,526 $ 713,263 $ 691,473 (1) Other real estate assets consists of revenues generated from retail space, commercial properties, held for sale properties, and disposition properties. Executive management does not evaluate such operating performance geographically. The following table presents the Company’s rental and other property-related revenues disaggregated by current property category status ($ in thousands): Three Months Ended June 30, Six Months Ended June 30, 2019 2018 2019 2018 Same-property (1) $ 340,042 $ 328,602 $ 677,394 $ 655,869 Acquisitions (2) 4,836 — 7,107 — Development (3) 1,192 450 2,325 469 Redevelopment 5,223 5,036 10,435 10,060 Non-residential/other, net (4) 8,082 12,438 16,002 25,075 Total rental and other property revenues $ 359,375 $ 346,526 $ 713,263 $ 691,473 (1) Properties that have stabilized operations as of January 1, 2018 and are consolidated by the Company for the three and six months ended June 30, 2019 and 2018. A community is generally considered to have reached stabilized operations once it achieves an initial occupancy of 95% . (2) Acquisitions includes properties acquired which did not have comparable stabilized results as of January 1, 2018. (3) Development includes properties developed which did not have stabilized results as of January 1, 2018. (4) Non-residential/other, net consists of revenues generated from retail space, commercial properties, held for sale properties, disposition properties and student housing. |
Co-investments (Tables)
Co-investments (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Investments in and Advance to Affiliates, Subsidiaries, Associates, and Joint Ventures [Abstract] | |
Summary of co-investments | The carrying values of the Company's co-investments as of June 30, 2019 and December 31, 2018 are as follows ($ in thousands, except parenthetical amounts): Weighted Average Company Ownership Percentage (1) June 30, 2019 December 31, 2018 Ownership interest in: CPPIB 54 % $ 473,746 $ 482,507 Wesco I, Wesco III, Wesco IV, and Wesco V 52 % 187,446 194,890 BEXAEW, BEX II, and BEX III 50 % 117,607 121,780 Other 49 % 15,071 34,093 Total operating and other co-investments, net 793,870 833,270 Total pre-development and development co-investments 50 % 120,249 94,060 Total preferred interest co-investments (includes related party investments of $68.6 million and $51.8 million as of June 30, 2019 and December 31, 2018, respectively) 409,962 372,810 Total co-investments, net $ 1,324,081 $ 1,300,140 (1) Weighted average Company ownership percentages are as of June 30, 2019 . |
Summarized financial information for co-investments accounted for under the equity method | The combined summarized entity financial information of co-investments is as follows ($ in thousands): June 30, 2019 December 31, 2018 Combined balance sheets: (1) Rental properties and real estate under development $ 4,419,528 $ 4,367,987 Other assets 81,172 104,119 Total assets $ 4,500,700 $ 4,472,106 Debt $ 2,170,899 $ 2,190,764 Other liabilities 122,353 106,316 Equity 2,207,448 2,175,026 Total liabilities and equity $ 4,500,700 $ 4,472,106 Company's share of equity $ 1,324,081 $ 1,300,140 Three Months Ended June 30, Six Months Ended June 30, 2019 2018 2019 2018 Combined statements of income: (1) Property revenues $ 81,832 $ 81,348 $ 165,557 $ 162,190 Property operating expenses (27,835 ) (26,567 ) (56,554 ) (53,636 ) Net operating income 53,997 54,781 109,003 108,554 Interest expense (16,080 ) (13,639 ) (31,195 ) (30,374 ) General and administrative (2,243 ) (2,388 ) (4,171 ) (3,880 ) Depreciation and amortization (28,937 ) (31,317 ) (58,872 ) (62,479 ) Net income $ 6,737 $ 7,437 $ 14,765 $ 11,821 Company's share of net income (2) $ 16,959 $ 15,049 $ 33,235 $ 47,823 (1) Includes preferred equity investments held by the Company. (2) Includes the Company's share of equity income from joint ventures and preferred equity investments, gain on sales of co-investments, co-investment promote income and income from early redemption of preferred equity investments. Includes related party income of $1.8 million and $0.3 million for the three months ended June 30, 2019 and 2018 , respectively, and $3.5 million and $0.7 million for the six months ended June 30, 2019 and 2018 |
Notes and Other Receivables (Ta
Notes and Other Receivables (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Receivables [Abstract] | |
Notes and other receivables | Notes and other receivables consist of the following as of June 30, 2019 and December 31, 2018 ($ in thousands): June 30, 2019 December 31, 2018 Notes receivable, secured, bearing interest at 10.00%, due May 2021 $ 16,007 $ 15,226 Notes receivable, secured, bearing interest at 10.75%, due September 2020 34,438 32,650 Related party note receivable, secured, bearing interest at 9.50%, due October 2019 (1) 6,624 6,618 Notes and other receivables from affiliates (2) 4,003 4,457 Other receivables 13,344 12,944 Total notes and other receivables $ 74,416 $ 71,895 (1) See Note 6, Related Party Transactions, for additional details. (2) These amounts consist of short-term loans outstanding and due from various joint ventures as of June 30, 2019 and December 31, 2018 , respectively. See Note 6, Related Party Transactions, for additional details. |
Debt (Tables)
Debt (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Debt Disclosure [Abstract] | |
Schedule of debt and lines of credit | Debt consists of the following ($ in thousands): June 30, 2019 December 31, 2018 Weighted Average Maturity In Years as of June 30, 2019 Unsecured bonds private placement - fixed rate $ 274,723 $ 274,624 1.6 Term loan - variable rate 348,991 348,813 2.6 Bonds public offering - fixed rate 3,670,598 3,175,879 7.5 Unsecured debt, net (1) 4,294,312 3,799,316 Lines of credit (2) 117,000 — Mortgage notes payable, net (3) 1,429,939 1,806,626 5.7 Total debt, net $ 5,841,251 $ 5,605,942 Weighted average interest rate on fixed rate unsecured bonds private placement and bonds public offering 3.9 % 3.9 % Weighted average interest rate on variable rate term loan 3.0 % 3.0 % Weighted average interest rate on lines of credit 3.2 % 3.2 % Weighted average interest rate on mortgage notes payable 4.3 % 4.3 % (1) Includes unamortized discount of $9.2 million and $7.1 million and unamortized debt issuance costs of $21.5 million and $18.5 million , as of June 30, 2019 and December 31, 2018 , respectively. (2) Lines of credit, related to the Company's two lines of unsecured credit aggregating $1.24 billion as of June 30, 2019 , excludes unamortized debt issuance costs of $4.4 million and $3.9 million as of June 30, 2019 and December 31, 2018 , respectively. These debt issuance costs are included in prepaid expenses and other assets on the condensed consolidated balance sheets. As of June 30, 2019, the Company’s $1.2 billion credit facility had an interest rate of LIBOR plus 0.825% , which is based on a tiered rate structure tied to the Company’s credit ratings and a scheduled maturity date of December 2022 with one 18 -month extension, exercisable at the Company’s option. As of June 30, 2019, the Company’s $35.0 million working capital unsecured line of credit had an interest rate of LIBOR plus 0.825% , which is based on a tiered rate structure tied to the Company’s credit ratings and a scheduled maturity date of February 2021. (3) Includes total unamortized premium of $12.3 million and $14.9 million , reduced by unamortized debt issuance costs of $3.4 million and $4.2 million , as of June 30, 2019 and December 31, 2018 , respectively. |
Summary of aggregate scheduled principal payments | The aggregate scheduled principal payments of the Company’s outstanding debt as of June 30, 2019 are as follows (excluding lines of credit) ($ in thousands): Remaining in 2019 $ 118,081 2020 695,580 2021 545,537 2022 693,188 2023 602,945 Thereafter 3,090,767 Total $ 5,746,098 |
Segment Information (Tables)
Segment Information (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Segment Reporting [Abstract] | |
Reconciliation of revenues and operating profit (loss) from segments to consolidated | The revenues and NOI for each of the reportable operating segments are summarized as follows for the three and six months ended June 30, 2019 and 2018 ($ in thousands): Three Months Ended June 30, Six Months Ended June 30, 2019 2018 2019 2018 Revenues: Southern California $ 151,966 $ 147,249 $ 302,990 $ 293,807 Northern California 140,095 129,590 276,420 258,212 Seattle Metro 60,841 58,796 121,081 117,509 Other real estate assets 6,473 10,891 12,772 21,945 Total property revenues $ 359,375 $ 346,526 $ 713,263 $ 691,473 Net operating income: Southern California $ 108,693 $ 105,882 $ 216,122 $ 210,245 Northern California 104,321 96,380 205,026 190,978 Seattle Metro 43,845 40,452 85,312 82,433 Other real estate assets 7,069 9,666 13,040 18,708 Total net operating income 263,928 252,380 519,500 502,364 Management and other fees from affiliates 2,260 2,197 4,595 4,505 Corporate-level property management expenses (8,212 ) (7,782 ) (16,365 ) (15,552 ) Depreciation and amortization (119,465 ) (119,330 ) (240,033 ) (238,435 ) General and administrative (13,927 ) (11,125 ) (27,386 ) (25,938 ) Expensed acquisition and investment related costs (24 ) (68 ) (56 ) (125 ) Gain on sale of real estate and land — 22,244 — 22,244 Interest expense (54,112 ) (56,278 ) (107,755 ) (111,139 ) Total return swap income 1,975 2,228 4,020 4,498 Interest and other income 8,347 6,895 20,608 12,804 Equity income from co-investments 16,959 15,049 33,235 47,823 Gain on early retirement of debt, net 332 — 1,668 — Gain on remeasurement of co-investment — — 31,535 — Net income $ 98,061 $ 106,410 $ 223,566 $ 203,049 |
Reconciliation of assets from segment to consolidated | Total assets for each of the reportable operating segments are summarized as follows as of June 30, 2019 and December 31, 2018 ($ in thousands): June 30, 2019 December 31, 2018 Assets: Southern California $ 4,275,854 $ 4,350,377 Northern California 4,549,598 4,270,238 Seattle Metro 1,451,764 1,472,916 Other real estate assets 61,082 63,022 Net reportable operating segment - real estate assets 10,338,298 10,156,553 Real estate under development 542,207 454,629 Co-investments 1,324,081 1,300,140 Cash and cash equivalents, including restricted cash 54,971 151,395 Marketable securities 215,434 209,545 Notes and other receivables 74,416 71,895 Operating lease right-of-use assets 76,205 — Prepaid expenses and other assets 45,533 39,439 Total assets $ 12,671,145 $ 12,383,596 |
Net Income Per Common Share a_2
Net Income Per Common Share and Net Income Per Common Unit (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Net Income Per Share and Net Income Per Unit [Line Items] | |
Schedule of net income per common share | Essex Property Trust, Inc. Three Months Ended June 30, 2019 Three Months Ended June 30, 2018 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 $ 92,275 65,718,806 $ 1.40 $ 100,440 66,047,751 $ 1.52 Effect of Dilutive Securities: Stock options — 103,009 — 48,598 Diluted: Net income available to common stockholders $ 92,275 65,821,815 $ 1.40 $ 100,440 66,096,349 $ 1.52 Six Months Ended June 30, 2019 Six Months Ended June 30, 2018 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 $ 211,133 65,710,842 $ 3.21 $ 191,358 66,045,897 $ 2.90 Effect of Dilutive Securities: Stock options — 91,575 — 42,906 Diluted: Net income available to common stockholders $ 211,133 65,802,417 $ 3.21 $ 191,358 66,088,803 $ 2.90 |
Essex Portfolio, L.P. [Member] | |
Net Income Per Share and Net Income Per Unit [Line Items] | |
Schedule of net income per common share | Essex Portfolio, L.P. Three Months Ended June 30, 2019 Three Months Ended June 30, 2018 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 $ 95,503 68,018,090 $ 1.40 $ 103,900 68,320,849 $ 1.52 Effect of Dilutive Securities: Stock options — 103,009 — 48,598 Diluted: Net income available to common unitholders $ 95,503 68,121,099 $ 1.40 $ 103,900 68,369,447 $ 1.52 Six Months Ended June 30, 2019 Six Months Ended June 30, 2018 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 $ 218,532 68,012,999 $ 3.21 $ 197,950 68,319,151 $ 2.90 Effect of Dilutive Securities: Stock options — 91,575 — 42,906 Diluted: Net income available to common unitholders $ 218,532 68,104,574 $ 3.21 $ 197,950 68,362,057 $ 2.90 |
Lease Agreements - Company as_3
Lease Agreements - Company as Lessor (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Leases [Abstract] | |
Lessor, Future Minimum Base Rent | A maturity analysis of undiscounted future minimum non-cancelable base rent to be received under the above operating leases as of June 30, 2019 is summarized as follows ($ in thousands): Future Minimum Rent Remaining in 2019 $ 511,596 2020 232,775 2021 14,872 2022 13,650 2023 12,614 Thereafter 34,218 $ 819,725 |
Schedule of Property Subject to or Available for Operating Lease | As of December 31, 2018, in accordance with previously applicable lease accounting guidance, Accounting Standards Codification ("ASC"), 840, "Leases", the future minimum non-cancelable base rent to be received under one commercial building and commercial portions of mixed use communities, for which the Company was the lessor, was as follows ($ in thousands): Future Minimum Rent 2019 $ 16,386 2020 15,842 2021 14,412 2022 13,324 2023 12,181 Thereafter 33,034 $ 105,179 |
Lease Agreements - Company as_4
Lease Agreements - Company as Lessee (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Leases [Abstract] | |
Schedule of Information Related to Leases | Supplemental condensed consolidated balance sheet information related to leases as of June 30, 2019 is as follows ($ in thousands): Classification June 30, 2019 Assets Operating lease right-of-use assets Operating lease right-of-use assets $ 76,205 Total leased assets $ 76,205 Liabilities Operating lease liabilities Operating lease liabilities 78,226 Total lease liabilities $ 78,226 |
Schedule of Components of Lease Expense | The components of lease expense for the three and six months ended June 30, 2019 were as follows ($ in thousands): Three Months Ended June 30, 2019 Six Months Ended June 30, 2019 Operating lease cost $ 1,687 $ 3,373 Variable lease cost 371 513 Short-term lease cost 152 284 Sublease income (110 ) (217 ) Total lease cost $ 2,100 $ 3,953 Lease term and discount rate information for leases at June 30, 2019 are as follows: Weighted-average of remaining lease terms (years) Operating Leases 39 Weighted-average of discount rates Operating Leases 4.98 % |
Schedule of Maturity Analysis of Operating Lease Liabilities | A maturity analysis of lease liabilities as of June 30, 2019 are as follows ($ in thousands): Operating Leases Remaining in 2019 $ 3,419 2020 6,855 2021 6,877 2022 6,888 2023 6,860 Thereafter 153,258 Total lease payments $ 184,157 Less: Imputed interest (105,931 ) Present Value of lease liabilities $ 78,226 |
Schedule of Future Minimum Rental Payments for Operating Leases | As of December 31, 2018, in accordance with previously applicable lease accounting guidance, ASC 840, the total minimum lease commitments under operating leases was as follows ($ in thousands): Future Minimum Rent 2019 $ 6,811 2020 6,855 2021 6,877 2022 6,888 2023 6,860 Thereafter 153,258 $ 187,549 |
Organization and Basis of Pre_4
Organization and Basis of Presentation - Narrative (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||
Jun. 30, 2019USD ($)communitybuildinginvestmentpartnershipapartmentprojectshares | Jun. 30, 2018USD ($) | Jun. 30, 2019USD ($)communitybuildinginvestmentpartnershipapartmentprojectshares | Jun. 30, 2018USD ($) | Dec. 31, 2018USD ($)communityinvestmentpartnershipshares | Jan. 01, 2019USD ($) | |
Real Estate Properties [Line Items] | ||||||
Ownership interest in partnership | 96.60% | 96.60% | ||||
Apartment communities owned (in communities) | community | 246 | 246 | ||||
Apartment units owned (in units) | apartment | 59,962 | 59,962 | ||||
Ownership interest, number of commercial buildings (in commercial buildings) | building | 1 | 1 | ||||
Ownership interest, number of active development projects (in projects) | project | 6 | 6 | ||||
Equity securities | $ 6,800 | $ 6,800 | $ 6,700 | |||
Sales and maturities of marketable securities | 33,400 | $ 9,400 | 50,200 | $ 19,000 | ||
Marketable securities, realized gain (loss) | $ 600 | (200) | $ 500 | 500 | ||
Downreit limited partnerships consolidated by company (in partnerships) | partnership | 17 | 17 | 16 | |||
Communities within Downreit partnerships (in communities) | community | 9 | 9 | 8 | |||
Number of previously consolidated co-investments considered VIE (in investments) | investment | 7 | 7 | 8 | |||
Assets related to variable interest entities net of intercompany eliminations | $ 1,000,000 | $ 1,000,000 | $ 849,800 | |||
Liabilities related to variable interest entities net of intercompany eliminations | 369,100 | 369,100 | 261,700 | |||
Noncontrolling interest in variable interest entity | 129,300 | 129,300 | 64,500 | |||
Fixed rate debt carrying amount | 5,100,000 | 5,100,000 | 5,000,000 | |||
Fixed rate debt fair value | 5,300,000 | 5,300,000 | 5,000,000 | |||
Variable rate debt, carrying amount | 736,300 | 736,300 | 619,600 | |||
Variable rate debt fair value | 731,300 | 731,300 | 615,200 | |||
Investments in mortgage back securities, fair value | 140,100 | 140,100 | 129,500 | |||
Capitalized internal costs related to development and redevelopment projects | 4,000 | 4,500 | 8,800 | 9,500 | ||
Redeemable noncontrolling interest | 36,830 | 36,830 | 35,475 | |||
Mortgage backed securities [Member] | ||||||
Real Estate Properties [Line Items] | ||||||
Investments in mortgage backed securities, carrying value | 138,089 | 138,089 | $ 127,187 | |||
Interest And Other Income [Member] | ||||||
Real Estate Properties [Line Items] | ||||||
Gain (loss) on sale of equity securities | $ 56 | $ 100 | $ 4,500 | $ (800) | ||
ASU 2017-12 [Member] | ||||||
Real Estate Properties [Line Items] | ||||||
Accumulated other comprehensive loss, cumulative effect adjustment, accumulated net hedge ineffectiveness | $ 200 | |||||
Essex Portfolio, L.P. [Member] | ||||||
Real Estate Properties [Line Items] | ||||||
Operating Partnership units outstanding (in units) | shares | 2,299,237 | 2,299,237 | 2,305,389 | |||
Redemption value of operating partnership units outstanding | $ 671,200 | $ 671,200 | $ 565,300 | |||
Redeemable noncontrolling interest | $ 36,830 | $ 36,830 | $ 35,475 |
Organization and Basis of Pre_5
Organization and Basis of Presentation - Summary of Financial Securities (Details) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2019 | Dec. 31, 2018 | |
Equity securities: | ||
Carrying Value | $ 6,800 | $ 6,700 |
Held to maturity | ||
Equity and Debt Securities, Amortized Cost | 213,199 | 211,960 |
Equity and Debt Securities, Gross Unrealized Gain (Loss) | 2,235 | (2,415) |
Equity and Debt Securities, Marketable Securities | 215,434 | 209,545 |
Investment funds - debt securities [Member] | ||
Equity securities: | ||
Amortized Cost/Cost | 27,837 | 31,934 |
Gross Unrealized Gain (Loss) | 379 | (568) |
Carrying Value | 28,216 | 31,366 |
Common stock and stock funds [Member] | ||
Equity securities: | ||
Amortized Cost/Cost | 38,780 | 39,731 |
Gross Unrealized Gain (Loss) | 1,836 | (1,671) |
Carrying Value | 40,616 | 38,060 |
Investment funds - U.S. treasuries [Member] | ||
Available for sale | ||
Amortized Cost/Cost | 7,445 | 8,983 |
Gross Unrealized Gain (Loss) | (11) | (31) |
Carrying Value | 7,434 | 8,952 |
Investment-grade unsecured bonds [Member] | ||
Available for sale | ||
Amortized Cost/Cost | 1,048 | 4,125 |
Gross Unrealized Gain (Loss) | 31 | (145) |
Carrying Value | 1,079 | 3,980 |
Mortgage backed securities [Member] | ||
Held to maturity | ||
Amortized Cost/Cost | 138,089 | 127,187 |
Gross Unrealized Gain (Loss) | 0 | 0 |
Carrying Value | $ 138,089 | $ 127,187 |
Organization and Basis of Pre_6
Organization and Basis of Presentation - Accumulated Other Comprehensive Loss Summary (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2019 | Dec. 31, 2018 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||
Balance at period beginning | $ 6,393,844 | |
Balance at period end | 6,345,116 | |
Accumulated Other Comprehensive Loss, Net [Member] | ||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||
Balance at period beginning | (13,217) | |
Cumulative effect upon adoption of ASU | $ 175 | |
Other comprehensive (loss) income before reclassification | (2,132) | |
Amounts reclassified from accumulated other comprehensive loss | (3,818) | |
Other comprehensive income | (5,775) | |
Balance at period end | (18,992) | |
Change in Fair Value and Amortization of Swap Settlements [Member] | ||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||
Balance at period beginning | (13,077) | |
Cumulative effect upon adoption of ASU | 175 | |
Other comprehensive (loss) income before reclassification | (2,353) | |
Amounts reclassified from accumulated other comprehensive loss | (3,787) | |
Other comprehensive income | (5,965) | |
Balance at period end | (19,042) | |
Unrealized Gains/(Loss) on Available for Sale Securities [Member] | ||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||
Balance at period beginning | (140) | |
Cumulative effect upon adoption of ASU | $ 0 | |
Other comprehensive (loss) income before reclassification | 221 | |
Amounts reclassified from accumulated other comprehensive loss | (31) | |
Other comprehensive income | 190 | |
Balance at period end | $ 50 |
Organization and Basis of Pre_7
Organization and Basis of Presentation - Accumulated Other Comprehensive Loss - Partnership (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2019 | Dec. 31, 2018 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||
Balance at period beginning | $ 6,393,844 | |
Balance at period end | 6,345,116 | |
Essex Portfolio, L.P. [Member] | Accumulated Other Comprehensive Loss, Net [Member] | ||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||
Balance at period beginning | (9,738) | |
Cumulative effect upon adoption of ASU | $ 181 | |
Other comprehensive (loss) income before reclassification | (2,207) | |
Amounts reclassified from accumulated other comprehensive loss | (3,951) | |
Other comprehensive income | (5,977) | |
Balance at period end | (15,715) | |
Essex Portfolio, L.P. [Member] | Change in Fair Value and Amortization of Swap Settlements [Member] | ||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||
Balance at period beginning | (9,593) | |
Cumulative effect upon adoption of ASU | 181 | |
Other comprehensive (loss) income before reclassification | (2,435) | |
Amounts reclassified from accumulated other comprehensive loss | (3,919) | |
Other comprehensive income | (6,173) | |
Balance at period end | (15,766) | |
Essex Portfolio, L.P. [Member] | Unrealized Gains/(Loss) on Available for Sale Securities [Member] | ||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||
Balance at period beginning | (145) | |
Cumulative effect upon adoption of ASU | $ 0 | |
Other comprehensive (loss) income before reclassification | 228 | |
Amounts reclassified from accumulated other comprehensive loss | (32) | |
Other comprehensive income | 196 | |
Balance at period end | $ 51 |
Organization and Basis of Pre_8
Organization and Basis of Presentation - Redeemable Noncontrolling Interest (Details) $ in Thousands | 6 Months Ended |
Jun. 30, 2019USD ($) | |
Stockholders' Equity Attributable to Noncontrolling Interest [Roll Forward] | |
December 31, 2018 | $ 35,475 |
Reclassification due to change in redemption value and other | 1,428 |
Redemptions | (73) |
June 30, 2019 | $ 36,830 |
Organization and Basis of Pre_9
Organization and Basis of Presentation - Cash, Cash Equivalents and Restricted Cash And Cash Equivalents (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 | Jun. 30, 2018 | Dec. 31, 2017 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||||
Cash and cash equivalents-unrestricted | $ 38,168 | $ 134,465 | $ 160,902 | $ 44,620 |
Cash and cash equivalents-restricted | 16,803 | 16,930 | 16,674 | 16,506 |
Total unrestricted and restricted cash and cash equivalents shown in the condensed consolidated statement of cash flows | $ 54,971 | $ 151,395 | $ 177,576 | $ 61,126 |
Significant Transactions Duri_2
Significant Transactions During the Six Months Ended June 30, 2019 and Subsequent Events (Details) | 1 Months Ended | 3 Months Ended | 6 Months Ended | |||||||
Jun. 30, 2019USD ($)apartment | May 31, 2019USD ($) | Apr. 30, 2019USD ($) | Mar. 31, 2019USD ($) | Feb. 28, 2019USD ($) | Jan. 31, 2019USD ($)shares | Jun. 30, 2019USD ($) | Jun. 30, 2018USD ($) | Jun. 30, 2019USD ($) | Jun. 30, 2018USD ($) | |
Other Commitments [Line Items] | ||||||||||
Repayments of secured debt | $ 86,000,000 | $ 290,000,000 | ||||||||
Gain on remeasurement of co-investment | 31,500,000 | $ 0 | $ 0 | $ 31,535,000 | $ 0 | |||||
Promote income | 800,000 | |||||||||
Debt assumed in connection with acquisition | 98,681,000 | 0 | ||||||||
Gain on sale of real estate and land | 0 | 22,244,000 | 0 | 22,244,000 | ||||||
Proceeds from full redemption of a preferred equity investment in a joint venture | $ 10,900,000 | |||||||||
Early redemption fee | 100,000 | |||||||||
Shares repurchased during period (in shares) | shares | 234,061 | |||||||||
Shares repurchased during period, value | $ 57,000,000 | |||||||||
Purchase authority remaining under stock repurchase plan | $ 250,000,000 | 250,000,000 | 250,000,000 | 250,000,000 | ||||||
Debt, stated interest rate | 5.57% | |||||||||
Gain on early retirement of debt, net | $ 1,400,000 | 332,000 | $ 0 | 1,668,000 | $ 0 | |||||
Senior Notes [Member] | Unsecured Notes, 4.0% Interest Rate, Due March 2029 [Member] | ||||||||||
Other Commitments [Line Items] | ||||||||||
Debt, face amount | $ 150,000,000 | $ 350,000,000 | $ 150,000,000 | $ 150,000,000 | ||||||
Debt, stated interest rate | 4.00% | |||||||||
Debt offering price, percentage of par value | 100.717% | 99.188% | 100.717% | 100.717% | ||||||
Brio, Walnut Creek, California [Member] | ||||||||||
Other Commitments [Line Items] | ||||||||||
Number of units acquired | apartment | 300 | |||||||||
Payments to acquire real estate | $ 164,900,000 | |||||||||
Debt assumed in connection with acquisition | 98,700,000 | |||||||||
Multifamily Development in Mountain View, California [Member] | ||||||||||
Other Commitments [Line Items] | ||||||||||
Commitment to fund preferred equity investment | $ 24,500,000 | |||||||||
Preferred returns rate | 11.00% | |||||||||
Multifamily Development Community in Irvine, California [Member] | ||||||||||
Other Commitments [Line Items] | ||||||||||
Commitment to fund preferred equity investment | $ 36,000,000 | |||||||||
Preferred returns rate | 10.15% | |||||||||
Funded commitment amount | 12,000,000 | $ 12,000,000 | $ 12,000,000 | |||||||
Joint Venture that Holds Property in Santa Ana, California [Member] | ||||||||||
Other Commitments [Line Items] | ||||||||||
Proceeds from full redemption of a preferred equity investment in a joint venture | $ 16,300,000 | |||||||||
Early redemption fee | 700,000 | |||||||||
Multifamily Development In Oakland, California, 10.25% Rate [Member] | ||||||||||
Other Commitments [Line Items] | ||||||||||
Commitment to fund preferred equity investment | $ 36,800,000 | |||||||||
Preferred returns rate | 10.25% | |||||||||
Funded commitment amount | 5,000,000 | 5,000,000 | 5,000,000 | |||||||
Multifamily Development In Oakland, California, 11.0% Rate [Member] | ||||||||||
Other Commitments [Line Items] | ||||||||||
Commitment to fund preferred equity investment | $ 11,800,000 | |||||||||
Preferred returns rate | 11.00% | |||||||||
Funded commitment amount | $ 4,000,000 | $ 4,000,000 | $ 4,000,000 | |||||||
One South Market, San Jose, CA [Member] | ||||||||||
Other Commitments [Line Items] | ||||||||||
Limited partnership interest in partnership investments | 45.00% | |||||||||
Payments to joint venture interest | $ 80,600,000 | |||||||||
Land Located in Oakland, California [Member] | ||||||||||
Other Commitments [Line Items] | ||||||||||
Limited partnership interest in partnership investments | 50.00% | |||||||||
Proceeds from sale of real estate | $ 6,100,000 | |||||||||
Gain on sale of real estate and land | $ 900,000 |
Revenues - Disaggregation of Re
Revenues - Disaggregation of Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | Dec. 31, 2018 | |
Disaggregation of Revenue [Line Items] | |||||
Total revenues | $ 361,635 | $ 348,723 | $ 717,858 | $ 695,978 | |
Occupancy threshold for classification as stabilized | 95.00% | 95.00% | |||
Deferred revenue | $ 4,800 | $ 4,800 | $ 6,200 | ||
Deferred revenue, revenue recognized | 1,400 | ||||
Deferred revenue balance from contracts with remaining performance obligations | 4,800 | 4,800 | |||
Rental [Member] | |||||
Disaggregation of Revenue [Line Items] | |||||
Total revenues | 353,167 | 340,481 | 700,972 | 679,496 | |
Other Property [Member] | |||||
Disaggregation of Revenue [Line Items] | |||||
Total revenues | 6,208 | 6,045 | 12,291 | 11,977 | |
Management and Other Fees From Affiliates Income [Member] | |||||
Disaggregation of Revenue [Line Items] | |||||
Total revenues | 2,260 | 2,197 | 4,595 | 4,505 | |
Rental and Other Property Revenues [Member] | |||||
Disaggregation of Revenue [Line Items] | |||||
Total revenues | 359,375 | 346,526 | 713,263 | 691,473 | |
Rental and Other Property Revenues [Member] | Same Property [Member] | |||||
Disaggregation of Revenue [Line Items] | |||||
Total revenues | 340,042 | 328,602 | 677,394 | 655,869 | |
Rental and Other Property Revenues [Member] | Acquisitions [Member] | |||||
Disaggregation of Revenue [Line Items] | |||||
Total revenues | 4,836 | 0 | 7,107 | 0 | |
Rental and Other Property Revenues [Member] | Development [Member] | |||||
Disaggregation of Revenue [Line Items] | |||||
Total revenues | 1,192 | 450 | 2,325 | 469 | |
Rental and Other Property Revenues [Member] | Redevelopment [Member] | |||||
Disaggregation of Revenue [Line Items] | |||||
Total revenues | 5,223 | 5,036 | 10,435 | 10,060 | |
Rental and Other Property Revenues [Member] | Non-Residential/Other, Net [Member] | |||||
Disaggregation of Revenue [Line Items] | |||||
Total revenues | 8,082 | 12,438 | 16,002 | 25,075 | |
Rental and Other Property Revenues [Member] | Operating Segments [Member] | Southern California [Member] | |||||
Disaggregation of Revenue [Line Items] | |||||
Total revenues | 151,966 | 147,249 | 302,990 | 293,807 | |
Rental and Other Property Revenues [Member] | Operating Segments [Member] | Northern California [Member] | |||||
Disaggregation of Revenue [Line Items] | |||||
Total revenues | 140,095 | 129,590 | 276,420 | 258,212 | |
Rental and Other Property Revenues [Member] | Operating Segments [Member] | Seattle Metro [Member] | |||||
Disaggregation of Revenue [Line Items] | |||||
Total revenues | 60,841 | 58,796 | 121,081 | 117,509 | |
Rental and Other Property Revenues [Member] | Other real estate assets [Member] | |||||
Disaggregation of Revenue [Line Items] | |||||
Total revenues | $ 6,473 | $ 10,891 | $ 12,772 | $ 21,945 |
Revenues - Deferred Revenues an
Revenues - Deferred Revenues and Remaining Performance Obligations (Details) | Jun. 30, 2019 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2019-07-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Percentage of remaining performance obligations due per period | 19.00% |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Percentage of remaining performance obligations due per period | 31.00% |
Expected timing of performance obligation satisfaction, period | 6 months |
Co-investments - Summary of Inv
Co-investments - Summary of Investments (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2019 | Dec. 31, 2018 | |
Schedule of Equity Method Investments [Line Items] | ||
Co-investments | $ 1,324,081 | $ 1,300,140 |
Total operating and other co-investments, net [Member] | ||
Schedule of Equity Method Investments [Line Items] | ||
Co-investments | $ 793,870 | 833,270 |
Membership Interest In CPPIB [Member] | ||
Schedule of Equity Method Investments [Line Items] | ||
Limited partnership interest in partnership investments | 54.00% | |
Co-investments | $ 473,746 | 482,507 |
Membership interest in Wesco I, III, IV, and V [Member] | ||
Schedule of Equity Method Investments [Line Items] | ||
Limited partnership interest in partnership investments | 52.00% | |
Co-investments | $ 187,446 | 194,890 |
Membership interest in BEXAEW, BEX II And BEX III [Member] | ||
Schedule of Equity Method Investments [Line Items] | ||
Limited partnership interest in partnership investments | 50.00% | |
Co-investments | $ 117,607 | 121,780 |
Membership In Other [Member] | ||
Schedule of Equity Method Investments [Line Items] | ||
Limited partnership interest in partnership investments | 49.00% | |
Co-investments | $ 15,071 | 34,093 |
Total development co-investments, net [Member] | ||
Schedule of Equity Method Investments [Line Items] | ||
Limited partnership interest in partnership investments | 50.00% | |
Co-investments | $ 120,249 | 94,060 |
Total preferred interest co-investments [Member] | ||
Schedule of Equity Method Investments [Line Items] | ||
Co-investments | 409,962 | 372,810 |
Total preferred interest co-investments [Member] | Investments in Majority-owned Subsidiaries [Member] | ||
Schedule of Equity Method Investments [Line Items] | ||
Co-investments | $ 68,600 | $ 51,800 |
Co-investments - Combined Finan
Co-investments - Combined Financial Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | Dec. 31, 2018 | |
Equity Method Investment, Summarized Financial Information, Assets [Abstract] | |||||
Rental properties and real estate under development | $ 542,207 | $ 542,207 | $ 454,629 | ||
Other liabilities | 35,374 | 35,374 | 33,375 | ||
Equity Method Investment, Summarized Financial Information, Income Statement [Abstract] | |||||
Interest expense | (54,112) | $ (56,278) | (107,755) | $ (111,139) | |
General and administrative | (13,927) | (11,125) | (27,386) | (25,938) | |
Total co investment [Member] | |||||
Equity Method Investment, Summarized Financial Information, Assets [Abstract] | |||||
Rental properties and real estate under development | 4,419,528 | 4,419,528 | 4,367,987 | ||
Other assets | 81,172 | 81,172 | 104,119 | ||
Total assets | 4,500,700 | 4,500,700 | 4,472,106 | ||
Debt | 2,170,899 | 2,170,899 | 2,190,764 | ||
Other liabilities | 122,353 | 122,353 | 106,316 | ||
Equity | 2,207,448 | 2,207,448 | 2,175,026 | ||
Total liabilities and equity | 4,500,700 | 4,500,700 | 4,472,106 | ||
Company's share of equity | 1,324,081 | 1,324,081 | $ 1,300,140 | ||
Equity Method Investment, Summarized Financial Information, Income Statement [Abstract] | |||||
Property revenues | 81,832 | 81,348 | 165,557 | 162,190 | |
Property operating expenses | (27,835) | (26,567) | (56,554) | (53,636) | |
Net operating income | 53,997 | 54,781 | 109,003 | 108,554 | |
Interest expense | (16,080) | (13,639) | (31,195) | (30,374) | |
General and administrative | (2,243) | (2,388) | (4,171) | (3,880) | |
Depreciation and amortization | (28,937) | (31,317) | (58,872) | (62,479) | |
Net income | 6,737 | 7,437 | 14,765 | 11,821 | |
Company's share of net income | 16,959 | 15,049 | 33,235 | 47,823 | |
Total co investment [Member] | Affiliated Entity [Member] | |||||
Equity Method Investment, Summarized Financial Information, Income Statement [Abstract] | |||||
Company's share of net income | $ 1,800 | $ 300 | $ 3,500 | $ 700 |
Notes and Other Receivables (De
Notes and Other Receivables (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2019 | Dec. 31, 2018 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Notes receivable | $ 74,416 | $ 71,895 |
Secured Note Receivable, 10.00% Interest Rate, Due May 2021 [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Notes receivable | $ 16,007 | 15,226 |
Stated interest rate | 10.00% | |
Secured Note Receivable, 10.75% Interest Rate, Due September 2020 [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Notes receivable | $ 34,438 | 32,650 |
Stated interest rate | 10.75% | |
Secured Note Receivable, 9.50% Interest Rate, Due October 2019 [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Notes receivable | $ 6,624 | 6,618 |
Stated interest rate | 9.50% | |
Notes and Other Receivables from Affiliates [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Notes receivable | $ 4,003 | 4,457 |
Other Receivables [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Notes receivable | $ 13,344 | $ 12,944 |
Related Party Transactions (Det
Related Party Transactions (Details) $ in Thousands | 1 Months Ended | 3 Months Ended | 6 Months Ended | 12 Months Ended | 14 Months Ended | ||||||||||
Jun. 30, 2019USD ($)apartment | Feb. 28, 2019USD ($) | Oct. 31, 2018USD ($)apartment | May 31, 2018USD ($)apartment | Nov. 30, 2017USD ($) | Mar. 31, 2017USD ($)unit | Jun. 30, 2019USD ($) | Jun. 30, 2018USD ($) | Jun. 30, 2019USD ($) | Jun. 30, 2018USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2015USD ($)investment | Jun. 30, 2019USD ($) | Nov. 30, 2016USD ($) | |
Related Party Transaction [Line Items] | |||||||||||||||
Management and other fees from affiliates | $ 3,500 | $ 3,200 | $ 6,900 | $ 6,400 | |||||||||||
Development and redevelopment fees | 1,300 | $ 1,000 | 2,400 | 1,900 | |||||||||||
Debt assumed in connection with acquisition | 98,681 | 0 | |||||||||||||
Payments to acquire real estate | 47,585 | 5,476 | |||||||||||||
Payments to acquire preferred equity investments | 167,278 | $ 97,826 | |||||||||||||
Co-investments | $ 1,324,081 | 1,324,081 | 1,324,081 | $ 1,300,140 | $ 1,324,081 | ||||||||||
Short-term loans outstanding and due from various joint ventures | $ 4,000 | 4,000 | 4,000 | 4,500 | 4,000 | ||||||||||
Brio, Walnut Creek, California [Member] | |||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||
Number of units acquired | apartment | 300 | ||||||||||||||
Payments to acquire real estate | $ 164,900 | ||||||||||||||
Debt assumed in connection with acquisition | 98,700 | ||||||||||||||
Multifamily Development in Mountain View, California [Member] | |||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||
Preferred returns rate | 11.00% | ||||||||||||||
Commitment to fund preferred equity investment | $ 24,500 | ||||||||||||||
Apartment Home Community In Ventura, California [Member] | |||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||
Number of units acquired | apartment | 400 | ||||||||||||||
Preferred returns rate | 10.25% | ||||||||||||||
Commitment to fund preferred equity investment | $ 26,500 | ||||||||||||||
Commitment funded amount | 21,300 | ||||||||||||||
Membership Interest In Sage At Cupertino [Member] | |||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||
Number of units acquired | unit | 230 | ||||||||||||||
Co-investments | $ 15,300 | ||||||||||||||
Equity method investment, ownership percentage acquired | 40.50% | ||||||||||||||
Contract price | $ 90,000 | ||||||||||||||
Mortgage encumbrance | $ 52,000 | ||||||||||||||
Affiliated Entity [Member] | Multifamily Development in Mountain View, California [Member] | |||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||
Payments to acquire preferred equity investments | $ 24,500 | ||||||||||||||
Preferred returns rate | 11.00% | ||||||||||||||
Affiliated Entity [Member] | Home Community Development in Burlingame, California [Member] | |||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||
Number of units acquired | apartment | 268 | ||||||||||||||
Payments to acquire preferred equity investments | $ 18,600 | ||||||||||||||
Preferred returns rate | 12.00% | ||||||||||||||
Affiliated Entity [Member] | Related Party Bridge Loans on Property Acquired by Bex III [Member] | |||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||
Notes receivable | $ 29,500 | ||||||||||||||
Interest rate | 3.50% | ||||||||||||||
Limited Liability Company [Member] | |||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||
Payments to acquire preferred equity investments | $ 20,000 | ||||||||||||||
Number of preferred equity method investments acquired during period (in investments) | investment | 3 | ||||||||||||||
Preferred stock, stated interest percentage | 9.50% | ||||||||||||||
Redeemed amount | 5,000 | $ 5,000 | |||||||||||||
Limited Liability Company [Member] | Marcus and Millichamp Company TMMC Affiliate [Member] | Secured Note Receivable, 9.50% Interest Rate, Due October 2019 [Member] | |||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||
Notes receivable | $ 6,600 | $ 6,600 | $ 6,600 | $ 6,600 | $ 6,600 | $ 6,600 |
Debt - Debt Summary (Details)
Debt - Debt Summary (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2019 | Dec. 31, 2018 | |
Debt Instrument [Line Items] | ||
Unsecured debt, net | $ 4,294,312 | $ 3,799,316 |
Lines of credit | 117,000 | 0 |
Mortgage notes payable, net | 1,429,939 | 1,806,626 |
Total debt | 5,841,251 | 5,605,942 |
Unsecured bonds private placement - fixed rate [Member] | ||
Debt Instrument [Line Items] | ||
Unsecured debt, net | $ 274,723 | 274,624 |
Debt, weighted average maturity (years) | 1 year 7 months 6 days | |
Term loan - variable rate [Member] | ||
Debt Instrument [Line Items] | ||
Unsecured debt, net | $ 348,991 | $ 348,813 |
Debt, weighted average maturity (years) | 2 years 7 months 6 days | |
Weighted average interest rate | 3.00% | 3.00% |
Bonds public offering - fixed rate [Member] | ||
Debt Instrument [Line Items] | ||
Unsecured debt, net | $ 3,670,598 | $ 3,175,879 |
Debt, weighted average maturity (years) | 7 years 6 months | |
Weighted average interest rate | 3.90% | 3.90% |
Unsecured Line of Credit [Member] | ||
Debt Instrument [Line Items] | ||
Lines of credit | $ 117,000 | $ 0 |
Weighted average interest rate | 3.20% | 3.20% |
Mortgage notes payable, net [Member] | ||
Debt Instrument [Line Items] | ||
Debt, weighted average maturity (years) | 5 years 8 months 12 days | |
Mortgage notes payable, net | $ 1,429,939 | $ 1,806,626 |
Weighted average interest rate | 4.30% | 4.30% |
Debt - Narrative (Details)
Debt - Narrative (Details) | 6 Months Ended | |
Jun. 30, 2019USD ($)instrumentextension | Dec. 31, 2018USD ($) | |
Debt Instrument [Line Items] | ||
Number of lines of unsecured credit (in instruments) | instrument | 2 | |
Unsecured Debt [Member] | ||
Debt Instrument [Line Items] | ||
Unamortized discount (premium), net | $ 9,200,000 | $ 7,100,000 |
Unamortized debt issuance expense | 21,500,000 | 18,500,000 |
Line of Credit [Member] | ||
Debt Instrument [Line Items] | ||
Aggregate borrowing capacity | 1,240,000,000 | |
Line of Credit [Member] | Unsecured Line of Credit [Member] | ||
Debt Instrument [Line Items] | ||
Unamortized debt issuance expense | 4,400,000 | 3,900,000 |
Unsecured Line of Credit [Member] | Line of Credit [Member] | ||
Debt Instrument [Line Items] | ||
Aggregate borrowing capacity | $ 1,200,000,000 | |
Number of extension options (in extensions) | extension | 1 | |
Extension period (in months) | 18 months | |
Unsecured Line of Credit [Member] | Line of Credit [Member] | London Interbank Offered Rate (LIBOR) [Member] | ||
Debt Instrument [Line Items] | ||
Basis spread on variable rate | 0.825% | |
Unsecured Line of Credit [Member] | Line of Credit Working Capital [Member] | ||
Debt Instrument [Line Items] | ||
Aggregate borrowing capacity | $ 35,000,000 | |
Unsecured Line of Credit [Member] | Line of Credit Working Capital [Member] | London Interbank Offered Rate (LIBOR) [Member] | ||
Debt Instrument [Line Items] | ||
Basis spread on variable rate | 0.825% | |
Mortgage notes payable, net [Member] | ||
Debt Instrument [Line Items] | ||
Unamortized discount (premium), net | $ (12,300,000) | (14,900,000) |
Unamortized debt issuance expense | $ 3,400,000 | $ 4,200,000 |
Debt - Future Principal Payment
Debt - Future Principal Payments (Details) $ in Thousands | Jun. 30, 2019USD ($) |
Debt Disclosure [Abstract] | |
Remaining in 2019 | $ 118,081 |
2020 | 695,580 |
2021 | 545,537 |
2022 | 693,188 |
2023 | 602,945 |
Thereafter | 3,090,767 |
Long-term debt | $ 5,746,098 |
Segment Information (Details)
Segment Information (Details) $ in Thousands | 1 Months Ended | 3 Months Ended | 6 Months Ended | ||||
Mar. 31, 2019USD ($) | Jan. 31, 2019USD ($) | Jun. 30, 2019USD ($) | Jun. 30, 2018USD ($) | Jun. 30, 2019USD ($)segment | Jun. 30, 2018USD ($) | Dec. 31, 2018USD ($) | |
Segment Reporting [Abstract] | |||||||
Number of reportable operating segments defined by geographical regions (in segments) | segment | 3 | ||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||
Total revenues | $ 361,635 | $ 348,723 | $ 717,858 | $ 695,978 | |||
Net operating income | 263,928 | 252,380 | 519,500 | 502,364 | |||
Corporate-level property management expenses | (8,212) | (7,782) | (16,365) | (15,552) | |||
Depreciation and amortization | (119,465) | (119,330) | (240,033) | (238,435) | |||
General and administrative | (13,927) | (11,125) | (27,386) | (25,938) | |||
Expensed acquisition and investment related costs | (24) | (68) | (56) | (125) | |||
Gain on sale of real estate and land | 0 | 22,244 | 0 | 22,244 | |||
Interest expense | (54,112) | (56,278) | (107,755) | (111,139) | |||
Total return swap income | 1,975 | 2,228 | 4,020 | 4,498 | |||
Interest and other income | 8,347 | 6,895 | 20,608 | 12,804 | |||
Equity income from co-investments | 16,959 | 15,049 | 33,235 | 47,823 | |||
Gain on early retirement of debt, net | $ 1,400 | 332 | 0 | 1,668 | 0 | ||
Gain on remeasurement of co-investment | $ 31,500 | 0 | 0 | 31,535 | 0 | ||
Net income | 98,061 | 106,410 | 223,566 | 203,049 | |||
Net reportable operating segment - real estate assets | 10,338,298 | 10,338,298 | $ 10,156,553 | ||||
Real estate under development | 542,207 | 542,207 | 454,629 | ||||
Co-investments | 1,324,081 | 1,324,081 | 1,300,140 | ||||
Cash and cash equivalents, including restricted cash | 54,971 | 54,971 | 151,395 | ||||
Marketable securities | 215,434 | 215,434 | 209,545 | ||||
Notes and other receivables | 74,416 | 74,416 | 71,895 | ||||
Operating lease right-of-use assets | 76,205 | 76,205 | 0 | ||||
Prepaid expenses and other assets | 45,533 | 45,533 | 39,439 | ||||
Total assets | 12,671,145 | 12,671,145 | 12,383,596 | ||||
Rental and Other Property Revenues [Member] | |||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||
Total revenues | 359,375 | 346,526 | 713,263 | 691,473 | |||
Management and Other Fees From Affiliates Income [Member] | |||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||
Total revenues | 2,260 | 2,197 | 4,595 | 4,505 | |||
Operating Segments [Member] | Southern California [Member] | |||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||
Net operating income | 108,693 | 105,882 | 216,122 | 210,245 | |||
Net reportable operating segment - real estate assets | 4,275,854 | 4,275,854 | 4,350,377 | ||||
Operating Segments [Member] | Southern California [Member] | Rental and Other Property Revenues [Member] | |||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||
Total revenues | 151,966 | 147,249 | 302,990 | 293,807 | |||
Operating Segments [Member] | Northern California [Member] | |||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||
Net operating income | 104,321 | 96,380 | 205,026 | 190,978 | |||
Net reportable operating segment - real estate assets | 4,549,598 | 4,549,598 | 4,270,238 | ||||
Operating Segments [Member] | Northern California [Member] | Rental and Other Property Revenues [Member] | |||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||
Total revenues | 140,095 | 129,590 | 276,420 | 258,212 | |||
Operating Segments [Member] | Seattle Metro [Member] | |||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||
Net operating income | 43,845 | 40,452 | 85,312 | 82,433 | |||
Net reportable operating segment - real estate assets | 1,451,764 | 1,451,764 | 1,472,916 | ||||
Operating Segments [Member] | Seattle Metro [Member] | Rental and Other Property Revenues [Member] | |||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||
Total revenues | 60,841 | 58,796 | 121,081 | 117,509 | |||
Other real estate assets [Member] | |||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||
Net operating income | 7,069 | 9,666 | 13,040 | 18,708 | |||
Net reportable operating segment - real estate assets | 61,082 | 61,082 | $ 63,022 | ||||
Other real estate assets [Member] | Rental and Other Property Revenues [Member] | |||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||
Total revenues | $ 6,473 | $ 10,891 | $ 12,772 | $ 21,945 |
Net Income Per Common Share a_3
Net Income Per Common Share and Net Income Per Common Unit (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Basic: | ||||
Net income available to common stockholders/unitholders | $ 92,275 | $ 100,440 | $ 211,133 | $ 191,358 |
Weighted average number of shares/common units outstanding during the period (in shares) | 65,718,806 | 66,047,751 | 65,710,842 | 66,045,897 |
Net income available to common stockholders/unitholders (in dollars per share) | $ 1.40 | $ 1.52 | $ 3.21 | $ 2.90 |
Effect of Dilutive Securities: Stock options (in shares) | 103,009 | 48,598 | 91,575 | 42,906 |
Diluted: | ||||
Net income available to common stockholders/unitholders | $ 92,275 | $ 100,440 | $ 211,133 | $ 191,358 |
Net income available to common stockholders/unitholders, weighted average common shares (in shares) | 65,821,815 | 66,096,349 | 65,802,417 | 66,088,803 |
Net income available to common stockholders/unitholders (in dollars per share) | $ 1.40 | $ 1.52 | $ 3.21 | $ 2.90 |
Essex Portfolio, L.P. [Member] | ||||
Basic: | ||||
Net income available to common stockholders/unitholders | $ 95,503 | $ 103,900 | $ 218,532 | $ 197,950 |
Weighted average number of shares/common units outstanding during the period (in shares) | 68,018,090 | 68,320,849 | 68,012,999 | 68,319,151 |
Net income available to common stockholders/unitholders (in dollars per share) | $ 1.40 | $ 1.52 | $ 3.21 | $ 2.90 |
Effect of Dilutive Securities: Stock options (in shares) | 103,009 | 48,598 | 91,575 | 42,906 |
Diluted: | ||||
Net income available to common stockholders/unitholders | $ 95,503 | $ 103,900 | $ 218,532 | $ 197,950 |
Net income available to common stockholders/unitholders, weighted average common shares (in shares) | 68,121,099 | 68,369,447 | 68,104,574 | 68,362,057 |
Net income available to common stockholders/unitholders (in dollars per share) | $ 1.40 | $ 1.52 | $ 3.21 | $ 2.90 |
Convertible Limited Partnership Units [Member] | ||||
Diluted: | ||||
Antidilutive securities excluded from computation of earnings per share, amount (in shares) | 2,299,284 | 2,273,098 | 2,302,158 | 2,273,255 |
Antidilutive securities excluded from computation of earnings per share, value | $ 3,200 | $ 3,500 | $ 7,400 | $ 6,600 |
Share-based Payment Arrangement, Option [Member] | ||||
Diluted: | ||||
Antidilutive securities excluded from computation of earnings per share, amount (in shares) | 0 | 185,181 | 106,029 | 185,470 |
Share-based Payment Arrangement, Option [Member] | Essex Portfolio, L.P. [Member] | ||||
Diluted: | ||||
Antidilutive securities excluded from computation of earnings per share, amount (in shares) | 0 | 185,181 |
Derivative Instruments and He_2
Derivative Instruments and Hedging Activities (Details) - USD ($) | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | Dec. 31, 2018 | |
Derivative [Line Items] | |||||
Total return swap income | $ 1,975,000 | $ 2,228,000 | $ 4,020,000 | $ 4,498,000 | |
Multifamily Housing Mortgage Revenue Bonds [Member] | |||||
Derivative [Line Items] | |||||
Bond subject to interest rate caps | 255,700,000 | 255,700,000 | |||
Designated as Hedging Instrument [Member] | Interest Rate Swap [Member] | |||||
Derivative [Line Items] | |||||
Derivative, notional amount | $ 175,000,000 | $ 175,000,000 | |||
Interest rate | 2.30% | 2.30% | |||
Aggregate carrying value of the interest rate swap contracts, asset | $ 1,300,000 | $ 1,300,000 | $ 5,800,000 | ||
Designated as Hedging Instrument [Member] | Interest Rate Cap [Member] | |||||
Derivative [Line Items] | |||||
Aggregate carrying value of the interest rate swap contracts, liability | 0 | 0 | 0 | ||
Not Designated as Hedging Instrument [Member] | Interest Rate Cap [Member] | |||||
Derivative [Line Items] | |||||
Derivative, notional amount | 9,900,000 | 9,900,000 | |||
Not Designated as Hedging Instrument [Member] | Total Return Swap, Callable [Member] | |||||
Derivative [Line Items] | |||||
Derivative, notional amount | 255,700,000 | 255,700,000 | |||
Derivative, fair value, net | $ 0 | $ 0 | $ 0 |
Lease Agreements - Company as_5
Lease Agreements - Company as Lessor (Details) $ in Thousands | 6 Months Ended | |
Jun. 30, 2019USD ($)building | Dec. 31, 2018USD ($)building | |
Lessor, Lease, Description [Line Items] | ||
Number of commercial buildings under lease agreements | building | 1 | 1 |
Lessor, Operating Lease, Payments, Fiscal Year Maturity [Abstract] | ||
Remaining in 2019 | $ 511,596 | |
2020 | 232,775 | |
2021 | 14,872 | |
2022 | 13,650 | |
2023 | 12,614 | |
Thereafter | 34,218 | |
Operating leases | $ 819,725 | |
Operating Leases, Future Minimum Payments Receivable [Abstract] | ||
2019 | $ 16,386 | |
2020 | 15,842 | |
2021 | 14,412 | |
2022 | 13,324 | |
2023 | 12,181 | |
Thereafter | 33,034 | |
Future minimum receivables | $ 105,179 | |
Minimum | ||
Lessor, Lease, Description [Line Items] | ||
Short-term lease terms | 9 months | |
Commercial lease terms | 5 years | |
Maximum | ||
Lessor, Lease, Description [Line Items] | ||
Short-term lease terms | 12 months | |
Commercial lease terms | 20 years |
Lease Agreements - Company as_6
Lease Agreements - Company as Lessee - Narrative and Components of Leases (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2019 | Dec. 31, 2018 | |
Lessee, Lease, Description [Line Items] | |||
Office lease, renewal term | 5 years | ||
Operating lease right-of-use assets | $ 76,205 | $ 76,205 | $ 0 |
Total leased assets | 76,205 | 76,205 | |
Operating lease liabilities | 78,226 | 78,226 | |
Total lease liabilities | 78,226 | 78,226 | |
Lease, Cost [Abstract] | |||
Operating lease cost | 1,687 | 3,373 | |
Variable lease cost | 371 | 513 | |
Short-term lease cost | 152 | 284 | |
Sublease income | (110) | (217) | |
Total lease cost | 2,100 | 3,953 | |
Operating lease right-of-use assets | |||
Lessee, Lease, Description [Line Items] | |||
Operating lease right-of-use assets | 76,205 | 76,205 | |
Operating lease liabilities | |||
Lessee, Lease, Description [Line Items] | |||
Operating lease liabilities | $ 78,226 | $ 78,226 | |
Minimum | |||
Lessee, Lease, Description [Line Items] | |||
Office lease term of contract | 5 years | ||
Ground lease term | 20 years | ||
Ground lease, renewal term | 10 years | ||
Maximum | |||
Lessee, Lease, Description [Line Items] | |||
Office lease term of contract | 10 years | ||
Ground lease term | 85 years | ||
Ground lease, renewal term | 39 years |
Lease Agreements - Company as_7
Lease Agreements - Company as Lessee - Maturity (Details) $ in Thousands | Jun. 30, 2019USD ($) |
Lessee, Operating Lease, Liability, Payment, Due [Abstract] | |
Remaining in 2019 | $ 3,419 |
2020 | 6,855 |
2021 | 6,877 |
2022 | 6,888 |
2023 | 6,860 |
Thereafter | 153,258 |
Total lease payments | 184,157 |
Less: Imputed interest | (105,931) |
Operating lease liabilities | $ 78,226 |
Lease Agreements - Company as_8
Lease Agreements - Company as Lessee - Additional Information (Details) | Jun. 30, 2019 |
Leases [Abstract] | |
Weighted-average remaining lease term: Operating Leases | 39 years |
Weighted-average discount rate: Operating Leases | 4.98% |
Lease Agreements - Company as_9
Lease Agreements - Company as Lessee - Maturity under 840 (Details) $ in Thousands | Dec. 31, 2018USD ($) |
Leases [Abstract] | |
2019 | $ 6,811 |
2020 | 6,855 |
2021 | 6,877 |
2022 | 6,888 |
2023 | 6,860 |
Thereafter | 153,258 |
Total lease future minimum rent | $ 187,549 |