Exhibit 99.2
E S S E X P R O P E R T Y T R U S T, I N C.
Consolidated Operating Results Three Months Ended Six Months Ended
(Dollars in thousands, except per share amounts) June 30, June 30,
- ------------------------------------------------------------------------------ ---------------- ---------------- ----------------
2004 2003 (1) 2004 2003 (1)
---------------- ---------------- ---------------- ----------------
Revenues:
Rental $ 67,908 $ 60,961 $ 132,137 $ 121,983
Other property 2,400 1,984 4,502 4,000
---------------- ---------------- ---------------- ----------------
Total property revenues 70,308 62,945 136,639 125,983
Interest and other 2,389 2,370 5,708 4,636
---------------- ---------------- ---------------- ----------------
72,697 65,315 142,347 130,619
---------------- ---------------- ---------------- ----------------
Expenses:
Property operating 24,047 20,120 45,888 40,426
Depreciation and amortization 17,739 13,225 36,143 26,489
Interest 15,081 12,913 29,391 26,121
Amortization of deferred financing costs 457 362 730 582
General and administrative 3,502 2,362 6,432 4,674
---------------- ---------------- ---------------- ----------------
Total expenses 60,826 48,982 118,584 98,292
---------------- ---------------- ---------------- ----------------
Income from continuing operations before minority interests
and discontinued operations 11,871 16,333 23,763 32,327
Minority interests (5,583) (6,577) (11,154) (13,344)
---------------- ---------------- ---------------- ----------------
Income from continuing operations 6,288 9,756 12,609 18,983
Income (loss) from discontinued operations, net of minority int (575) 41 (459) 456
---------------- ---------------- ---------------- ----------------
Net income 5,713 9,797 12,150 19,439
Dividends to preferred stockholders - Series F (488) -- (976) --
---------------- ---------------- --------------- ----------------
Net income available to common stockholders $ 5,225 $ 9,797 $ 11,174 $ 19,439
================ ================ =============== ================
Net income per share - basic $ 0.23 $ 0.47 $ 0.49 $ 0.92
================ ================ ================ ================
Net income per share - diluted $ 0.23 $ 0.46 $ 0.48 $ 0.92
================ ================ ================ ================
(1) The results for the three and six months ended June 30, 2003 have been restated to reflect the retroactive adoption of
FIN 46 Revised and SFAS 123. Certain prior period balances have been reclassified to conform to the current year presentation.
See Company's 10-K and 10-Q for additional disclosures
S-1
E S S E X P R O P E R T Y T R U S T, I N C.
Consolidated Operating Results
Selected Line Item Detail Three Months Ended Six Months Ended
(Dollars in thousands) June 30, June 30,
- ---------------------------------------------------------------------------------- ---------------- ---------------- ----------------
2004 2003 2004 2003
---------------- ---------------- ---------------- ----------------
Interest and other
Interest income $ 265 $ 210 $ 411 $ 267
Equity income in co-investments and lease income 780 621 2,664 1,461
Fee income 1,337 1,254 2,617 2,452
Miscellaneous - non-recurring 7 285 16 456
---------------- ---------------- ---------------- ----------------
Interest and other $ 2,389 $ 2,370 $ 5,708 $ 4,636
================ ================ ================ ================
Property operating expenses
Maintenance and repairs $ 4,825 $ 4,512 $ 9,208 $ 8,829
Real estate taxes 6,196 4,813 11,740 9,622
Utilities 3,501 3,265 6,515 5,991
Administrative 7,513 5,420 14,429 12,114
Advertising 966 1,086 1,806 2,000
Insurance 1,046 1,024 2,190 1,870
---------------- ---------------- ---------------- ----------------
Property operating expenses $ 24,047 $ 20,120 $ 45,888 $ 40,426
================ ================ ================ ================
General and administrative
Total general and administrative $ 4,825 $ 3,468 $ 9,056 $ 6,859
Allocated to property operating expenses - administrative (1,106) (946) (2,152) (1,879)
Capitalized and incremental to real estate under development (217) (160) (472) (306)
---------------- ---------------- ---------------- ----------------
Net general and administrative $ 3,502 $ 2,362 $ 6,432 $ 4,674
================ ================ ================ ================
Minority interests
Limited partners of Essex Portfolio, L.P. $ 637 $ 1,028 $ 1,261 $ 2,103
Perpetual preferred distributions 4,009 4,580 8,113 9,160
Series Z and Z-1 incentive units 56 44 131 88
Third party ownership interests (240) (108) (612) (189)
Limited partners of Down REITs 1,121 1,033 2,261 2,182
---------------- ---------------- ---------------- ----------------
Minority interests $ 5,583 $ 6,577 $ 11,154 $ 13,344
================ ================ ================ ================
Certain prior period balances have been reclassified to conform to the current year presentation.
See Company's 10-K and 10-Q for additional disclosures
S-2
E S S E X P R O P E R T Y T R U S T, I N C.
Consolidated Funds From Operations Three Months Ended Six Months Ended
(Dollars in thousands, except share and per share amounts) June 30, June 30,
- ----------------------------------------------------------------------------------- ---------------- ---------------- ----------------
2004 2003 (1) 2004 2003
---------------- ---------------- ---------------- ----------------
Funds from operations
Income from continuing operations before minority interests
and discontinued operations $ 11,871 $ 16,333 $ 23,763 $ 32,327
Adjustments:
Depreciation and amortization 17,739 13,225 36,143 26,489
Depr. and amort. - unconsolidated co-investments
and minority interests 970 638 1,804 1,229
Minority interests (4,947) (5,501) (9,808) (11,104)
Income (loss) from discontinued operations (575) 41 (459) 456
Depreciation - discontinued operations 34 33 62 72
Dividends to preferred stockholders - Series F (488) -- (976) --
---------------- ---------------- ---------------- ----------------
Funds from operations $ 24,604 $ 24,769 $ 50,529 $ 49,469
================ ================ ================ ================
Components of the change in FFO
Same property NOI $ (328) $ (4,833)
Non-same property NOI 3,764 10,027
Other - corporate and unconsolidated co-investments 351 1,647
Interest expense and amortization of deferred financing (2,263) (3,418)
General and administrative (1,140) (1,758)
Minority interests 554 1,296
Income from discontinued operations (616) (915)
Depreciation - discontinued operations 1 (10)
Dividends to preferred stockholders - Series F (488) (976)
---------------- ----------------
Funds from operations $ (165) $ 1,060
================ ================
Funds from operations per share - diluted $ 0.97 $ 1.05 $ 1.99 $ 2.10
================ ================ ================ ================
Percentage decrease -7.6% -5.2%
================ ================
Weighted average number of shares outstanding diluted (2) 25,446,752 23,558,314 25,386,273 23,511,388
================ ================ ================ ================
(1) The results for the three and six months ended June 30, 2003 have been restated to reflect the retroactive adoption of FIN 46 Revised and SF
(2) Assumes conversion of the weighted average operating partnership interests in the Operating Partnership into shares of the Company's common
See Company's 10-K and 10-Q for additional disclosures
S-3
E S S E X P R O P E R T Y T R U S T, I N C.
Consolidated Balance Sheet
(Dollars in thousands)
June 30, 2004 December 31, 2003 (1)
- ------------------------------------------------------------------------------------------------- -----------------------
Real Estate:
Land and land improvements $ 509,286 $ 465,257
Buildings and improvements 1,729,549 1,510,742
------------------- -----------------------
2,238,835 1,975,999
Less: accumulated depreciation (301,771) (265,623)
------------------- -----------------------
1,937,064 1,710,376
Real estate investment held for sale, net of accumulated depreciation of
$203 and $140 as of June 30, 2004 and December 31, 2003, respectively 6,645 7,983
Investments 72,186 79,567
Real estate under development 66,115 55,183
------------------- -----------------------
2,082,010 1,853,109
Cash and cash equivalents 27,810 25,943
Other assets 32,387 29,185
Deferred charges, net 11,097 8,574
------------------- -----------------------
Total assets $ 2,153,304 $ 1,916,811
=================== =======================
Mortgage notes payable $ 1,054,167 $ 891,798
Lines of credit 199,600 93,100
Other liabilities 54,754 57,371
------------------- -----------------------
Total liabilities 1,308,521 1,042,269
Minority interests 285,902 293,143
Stockholders' Equity:
Common stock 2 2
Series F cumulative redeemable preferred stock, liquidation value 25,000 25,000
Additional paid-in-capital 645,167 642,643
Distributions in excess of accumulated earnings (111,288) (86,246)
------------------- -----------------------
Total liabilities and stockholders' equity $ 2,153,304 $ 1,916,811
=================== =======================
(1) The December 31, 2003 consolidated balance sheet has been restated for the retroactive adoption of the
provisions of FIN 46 Revised and SFAS 123.
See Company's 10-K and 10-Q for additional disclosures
S-4
E S S E X P R O P E R T Y T R U S T, I N C.
Debt Summary - June 30, 2004
(Dollars in thousands)
Percentage of Weighted Weighted
Total Balance Average Average Maturity
Debt Outstanding Interest Rate (1) In Years
---------- ------------- ---------------- --------------
Mortgage notes payable
Fixed rate - secured 69% $ 869,656 6.7% 6.1
Tax exempt variable (2) 15% 184,511 2.6% 25.1
---------- -------------- ---------------- --------------
Total mortgage notes payable 84% 1,054,167 6.0% 9.4
---------- -------------- ---------------- ==============
Line of credit - secured (3) 8% 96,600 1.6%
Line of credit - unsecured (4) 8% 103,000 2.4%
---------- -------------- ----------------
16% 199,600 2.0%
---------- -------------- ----------------
Total debt 100% $ 1,253,767 5.2%
========== ============== ================
Scheduled principal payments (excludes lines of credit)
2004 $ 13,398
2005 43,734
2006 24,069
2007 124,191
2008 153,759
Thereafter 695,016
--------------
Total $ 1,054,167
==============
Interest expense coverage is 3.0 times earnings before gain, interest, taxes, depreciation and amortization.
Capitalized interest for the quarter ended June 30, 2004 was $655.
(1) Weighted average interest rate for variable rate debt are approximate current values.
(2) Subject to interest rate protection agreements.
(3) Secured line of credit commitment is $100 million and matures in January 2009.
This line is secured by five of Essex's multifamily communities. The underlying interest rate is currently the
Freddie Mac Reference Rate plus .55% to .60%.
(4) Unsecured line of credit commitment is $185 million and matures in May 2007.
The underlying interest rate on this line is based on a tiered rate structure tied to the Company's
corporate ratings and is currently at LIBOR plus 1.00%.
See Company's 10-K and 10-Q for additional disclosures
S-5
E S S E X P R O P E R T Y T R U S T, I N C.
Capitalization - June 30, 2004
(Dollars and shares in thousands, except per share amounts)
Total debt $ 1,253,767
==============
Common stock and potentially dilutive securities
Common stock outstanding 22,936
Limited partnership units (1) 2,408
Options-treasury method 148
--------------
Total common stock and potentially dilutive securities 25,492 shares
Common stock price per share as of June 30, 2004 $ 68.350
--------------
Market value of common stock and potentially dilutive securities $ 1,742,378
Perpetual preferred units/stock $ 210,000 8.567% weighted average pay rate
--------------
Total equity capitalization $ 1,952,378
--------------
Total market capitalization $ 3,206,145
==============
Ratio of debt to total market capitalization 39.1%
==============
(1)Assumes conversion of all outstanding operating partnership interests in the
Operating Partnership into shares of the Company's common stock.
See Company's 10-K and 10-Q for additional disclosures
S-6
E S S E X P R O P E R T Y T R U S T, I N C.
Property Operating Results - Quarter ended June 30, 2004 and 2003
(Dollars in thousands)
Southern California Northern California Pacific Northwest Other real estate assets(1Total
------------------------- -------------------------- ------------------------- ------------------------- -------------------------
2004 2003 % Change 2004 2003 % Change 2004 2003 % Change 2004 2003 % Change 2004 2003 % Chang
-------- -------- ------- -------- -------- -------- -------- -------- ------- -------- -------- ------- -------- -------- -------
Revenues:
Same property revenues $24,583 $23,766 3.4% $12,670 $13,383 -5.3% $10,264 $10,214 0.5% $ -- $ -- n/a $47,517 $47,363 0.3%
Non same property revenues(2) 16,099 9,554 3,492 2,695 1,922 829 1,278 2,504 22,791 15,582
-------- -------- -------- -------- -------- -------- -------- -------- -------- --------
Total Revenues $40,682 $33,320 $16,162 $16,078 $12,186 $11,043 $ 1,278 $ 2,504 $70,308 $62,945
-------- -------- -------- -------- -------- -------- -------- -------- -------- --------
Property operating expenses:
Same property operating expenses $ 7,652 $ 7,258 5.4% $ 3,934 $ 3,834 2.6% $ 3,706 $ 3,718 -0.3% $ -- $ -- n/a $15,292 $14,810 3.3%
Non same property operating expenses(2) 6,006 2,673 1,264 1,002 755 249 730 1,386 8,755 5,310
-------- -------- -------- -------- -------- -------- -------- -------- -------- --------
Total property operating expenses $13,658 $ 9,931 $ 5,198 $ 4,836 $ 4,461 $ 3,967 $ 730 $ 1,386 $24,047 $20,120
-------- -------- -------- -------- -------- -------- -------- -------- -------- --------
Net operating income:
Same property net operating income $16,931 $16,508 2.6% $ 8,736 $ 9,549 -8.5% $ 6,558 $ 6,496 1.0% $ -- $ -- n/a $32,225 $32,553 -1.0%
Non same property operating income(2) 10,093 6,881 2,228 1,693 1,167 580 548 1,118 14,036 10,272
-------- -------- -------- -------- -------- -------- -------- -------- -------- --------
Total net operating income $27,024 $23,389 $10,964 $11,242 $ 7,725 $ 7,076 $ 548 $ 1,118 $46,261 $42,825
======== ======== ======== ======== ======== ======== ======== ======== ======== ========
Same property operating margin 69% 69% 69% 71% 64% 64% n/a n/a 68% 69%
======== ======== ======== ======== ======== ======== ======== ======== ======== ========
Same property turnover percentage 62% 60% 59% 64% 69% 67% n/a n/a 63% 63%
======== ======== ======== ======== ======== ======== ======== ======== ======== ========
Same property concessions $ 157 $ 252 $ 97 $ 182 $ 154 $ 366 $ -- $ -- $ 408 $ 800
======== ======== ======== ======== ======== ======== ======== ======== ======== ========
Average same property average concessions $ 165 $ 229 $ 176 $ 304 $ 203 $ 497 $ -- $ -- $ 180 $ 328
per turn (In dollars) ======== ======== ======== ======== ======== ======== ======== ======== ======== ========
Net operating income percentage of total 58% 55% 24% 26% 17% 17% 1% 3% 100% 101%
======== ======== ======== ======== ======== ======== ======== ======== ======== ========
Loss to lease(3) $ 9,075 $ 828 $ (87) $ n/a $ 9,816
======== ======== ======== ======== ========
Loss to lease as a percentage 4.9% 1.3% -0.2% n/a 3.3%
of rental income ======== ======== ======== ======== ========
Reconciliation of apartment units at end of period
Same property consolidated apartment units 7,339 7,339 3,737 3,737 4,402 4,402 -- -- 15,478 15,478
======== ======== ======== ======== ======== ======== ======== ======== ======== ========
Consolidated Apartment Units 11,669 10,190 4,605 4,177 5,212 4,703 578 578 22,064 19,648
Joint Venture 4,186 4,620 -- 116 741 741 -- -- 4,927 5,477
Under Development 686 686 370 682 -- -- -- -- 1,056 1,368
-------- -------- -------- -------- -------- -------- -------- -------- -------- --------
Total apartment units at end of period 16,541 15,496 4,975 4,975 5,953 5,444 578 578 28,047 26,493
======== ======== ======== ======== ======== ======== ======== ======== ======== ========
Percentage of total 59% 58% 18% 19% 21% 21% 2% 2% 100% 100%
======== ======== ======== ======== ======== ======== ======== ======== ======== ========
Average same property financial occupancy 95.2% 95.2% 96.9% 95.4% 95.6% 95.2% n/a n/a 95.7% 95.2%
======== ======== ======== ======== ======== ======== ======== ======== ======== ========
(1) Includes apartment communities located in other geographic areas, other rental properties and commercial properties.
(2) Includes properties which subsequent to March 31, 2003 were not consolidated, or either acquired or in a stage of development
or redevelopment without stabilized operations.
(3) Loss to lease represents the annualized difference between market rents (without considering the impact of rental concessions)
and contractual rents. These numbers include the Company's pro-rata interest in unconsolidated properties.
See Company's 10-K and 10-Q for additional disclosures
S-7
E S S E X P R O P E R T Y T R U S T, I N C.
Same Property Revenue by County - Quarters ended June 30, 2004, June 30, 2003 and March 31, 2004
(Dollars in thousands)
June 30, June 30, March 31,
Units 2004 2003 % Change 2004 % Change
------- ------------ ------------- -------- ------------ --------
Southern California
Ventura County 1,229 $ 4,168 $ 4,173 -0.1% $ 4,169 -0.0%
Los Angeles County 2,271 8,638 8,158 5.9% 8,565 0.9%
Orange County 932 3,915 3,768 3.9% 3,902 0.3%
San Diego County 2,907 7,862 7,667 2.5% 7,968 -1.3%
------- ------------ ------------- ------------
Total Southern California 7,339 $ 24,583 $ 23,766 3.4% $ 24,604 -0.1%
------- ------------ ------------- ------------
Northern California
San Francisco County 99 $ 329 $ 350 -6.0% $ 340 -3.2%
Santa Clara County 1,696 5,923 6,385 -7.2% 5,902 0.4%
Alameda County 1,116 3,415 3,557 -4.0% 3,384 0.9%
Contra Costa County 826 3,003 3,091 -2.8% 2,967 1.2%
------- ------------ ------------- ------------
Total Northern California 3,737 $ 12,670 $ 13,383 -5.3% $ 12,593 0.6%
------- ------------ ------------- ------------
Pacific Northwest
Seattle 3,527 $ 8,489 $ 8,444 0.5% $ 8,532 -0.5%
Portland 875 1,775 1,770 0.3% 1,779 -0.2%
------- ------------ ------------- ------------
Total Pacific Northwest 4,402 $ 10,264 $ 10,214 0.5% $ 10,311 -0.5%
------- ------------ ------------- ------------
Total same property revenues 15,478 $ 47,517 $ 47,363 0.3% $ 47,508 0.0%
======= ============ ============= ======== ============ ========
See Company's 10-K and 10-Q for additional disclosures
S-8
E S S E X P R O P E R T Y T R U S T, I N C.
Development Communities - June 30, 2004
(Dollars in millions)
Total Estimated
Estimated Incurred Remaining Initial Stabilized % %
Project Name Location Units Cost to Date Cost Occupancy Operations Leased Occupied
- ------------------------------------------------- ------------------- ------- ------------ ---------- ---------- ----------- ----------- -------- ----------
Development Communities
- -------------------------------------------------
Direct Development - Consolidated
Hidden Valley-Parker Ranch(1) Simi Valley, CA 324 $ 48.3 $ 46.1 $ 2.2 Dec-03 Oct-04 62% 53%
The San Marcos Phase II Richmond, CA 120 23.9 17.1 6.8 Sep-04 Feb-04 n/a n/a
Pre-development 2.9 2.9 0.0 -- -- n/a n/a
------- ------------- ----------- -----------
Subtotal - direct development 444 $ 75.1 $ 66.1 $ 9.0
Joint Venture Transactions - Unconsolidated(2)
River Terrace Santa Clara, CA 250 56.8 44.2 12.6 Sep-04 Jun-05 n/a n/a
Chesapeake San Diego, CA 230 44.9 40.4 4.5 Jun-04 Dec-04 n/a n/a
Kelvin Avenue Irvine, CA 132 5.8 5.8 -- -- -- n/a n/a
------- ------------- ----------- -----------
Total - development 1,056 $ 182.6 $ 156.5 $ 26.1
======= ============= =========== ===========
Stabilized Communities - Second Quarter 2004
- -------------------------------------------------
None
(1)The Company acquired bond financing which closed in December 2002. The Company has a 75% interest in this development project.
(2)The Company has a 21.4% interest in development projects owned by the Fund.
See Company's 10-K and 10-Q for additional disclosures
S-9
E S S E X P R O P E R T Y T R U S T, I N C.
Redevelopment Communities - June 30, 2004
(Dollars in thousands)
Total Estimated
Estimated Incurred Remaining Redevelopment Restabilized
Project Name Units Cost to date Cost Start Operations
- ------------------------------------------ ------- ---------- ---------- ---------- ------------- ---------------
Hillcrest Park - Phase II 608 $ 3,429 $ 2,326 $ 1,103 Apr-03 (1)
Kings Road 196 6,039 807 5,232 Jan-04 (1)
Rosebeach (2) 174 3,537 2,470 1,067 Mar-03 (1)
Coronado at Newport - South (2)(3)(4) 715 13,257 262 12,995 Jan-04 (1)
------- ---------- ---------- ----------
Total 1,693 $ 26,262 $ 5,865 $ 20,397
======= ========== ========== ==========
Re-stabilized Communities - Second Quarter 2004
- ------------------------------------------
None
(1)Restabilized operations is defined as the month that the property reaches at least 95% occupancy after
completion of the redevelopment project. A component of these redevelopments are upgrades to unit interiors.
These will be completed in the normal course of unit turnover.
(2)The Company has a 21.4% interest in the asset owned by the Fund.
(3)The Company has an approximate 49.9% direct ownership interest in this asset.
(4)The Fund has an approximate 49.9% direct ownership interest in this asset.
See Company's 10-K and 10-Q for additional disclosures
S-10
E S S E X P R O P E R T Y T R U S T, I N C.
Investments - June 30, 2004 Debt
--------------------------------------- Essex
(Dollars in thousands) Book Estimated Interest Maturity Value of Company Equity
Value Value(1) Amount Type Rate Date Equity Ownership Value(2)
- ----------------------------------------------------------------------------- --------- --------------------------------------- -------- --------- ---------
Joint Ventures
Essex Apartment Value Fund, L.P.
Andover Park, Beaverton, OR $ 12,177 Fixed 6.60% Oct-11
Vista Del Rey (El Encanto), Tustin, CA 7,838 Fixed 6.95% Feb-11
Rosebeach, La Mirada, CA 8,276 Fixed 7.09% Feb-11
Hunt Club, Lake Oswego, CA 11,470 Fixed 7.05% Feb-11
The Crest, Pomona, CA 62,000 Fixed 5.24% May-13
Foxborough (Woodland), Orange, CA 4,808 Fixed 7.84% Jul-09
The Arboretum at Lake Forest, Lake Forest, CA 22,812 Fixed 5.16% Feb-10
Ocean Villas, Oxnard, CA 9,862 Fixed 5.42% Apr-13
Villas at Carlsbad, Carlsbad, CA 9,490 Fixed 5.03% Aug-11
Huntington Villas, Huntington Beach, CA 37,892 Fixed 4.64% May-10
The Villas at San Dimas, San Dimas, CA 13,007 Fixed 4.67% May-10
The Villas at Bonita, San Dimas, CA 8,275 Fixed 4.67% May-10
Villa Venetia, Costa Mesa, CA 53,183 Fixed 4.58% May-13
Coronado at Newport - North, Newport Beach, CA - 49.9% (3) --
Coronado at Newport - South, Newport Beach, CA - 49.9% (3) --
Kelvin Avenue, Irvine, CA (development) --
Chesapeake, San Diego, CA (development) 26,654 Var. LIBOR+ 2% Jan-07
Rivermark, Santa Clara, CA (development) 17,006 Var. LIBOR+ 2% Jan-07
--------
$ 44,179 $ 482,464 304,750 $177,714 21.4% $ 38,031
Lend Lease
Coronado at Newport - North, Newport Beach, CA 55,701 Fixed 5.30% Dec-12
Coronado at Newport - South, Newport Beach, CA 49,047 Fixed 5.30% Dec-12
--------
15,583 170,143 104,748 65,395 49.9% 32,632
Park Hill Apartments, Issaquah, WA 5,618 28,743 21,209 Fixed 6.90% Aug-29 7,534 45.0%(4) 5,618
Other 6,806 6,806
--------- ----------
$ 72,186 $ 83,087
========= ==========
(1)Estimated value based on estimated 2004 net operating income applying capitalization rates ranging from 7.00% to 7.25% on stabilized
multifamily properties. Other properties, either in development, redevelopment or acquired less than 12 months ago are valued at cost.
(2)Although the Company generally intends to hold these properties for use, the Company equity value assumes liquidation at June 30, 2004.
(3)The Fund accounts for its investment in this property under the equity method of accounting. Estimated value is equal to the Fund's book
value of its equity investment.
(4)The Company's 45% ownership interest receives a cumulative preferred return.
See Company's 10-K and 10-Q for additional disclosures
S-11
ESSEX PROPERTY TRUST, INC.
REAL ESTATE INFORMATION
30-Jun-04
Square Year Year
Property Name Address City State Units Footage Acquired Built
---------------------------------------------------------------------------------------------------------------------------------------
MULTIFAMILY COMMUNITIES
---------------------------------------------------------------------------------------------------------------------------------------
SAN FRANCISCO BAY AREA
---------------------------------------------------------------------
Santa Clara County
---------------------------------------
1 Pointe at Cupertino, The (Westwood) 19920 Olivewood Street Cupertino CA 116 135,200 1998 1963
1 Carlyle, The 2909 Nieman Boulevard San Jose CA 132 129,200 2000 2000
1 Waterford, The 1700 N. First Street San Jose CA 238 219,600 2000 2000
1 Le Parc (Plumtree) 440 N. Winchester Avenue Santa Clara CA 140 113,200 1994 1975
1 Marina Cove 3480 Granada Avenue Santa Clara CA 292 250,200 1994 1974
River Terrace N.E. corner Montague/Agnew Santa Clara CA 250 223,800
1 Bristol Commons 732 E. Evelyn Avenue Sunnyvale CA 188 142,600 1995 1989
1 Brookside Oaks 1651 Belleville Way Sunnyvale CA 170 119,900 2000 1973
1 Oak Pointe 450 N. Mathilda Avenue Sunnyvale CA 390 294,100 1988 1973
1 Summerhill Park 972 Corte Madera Avenue Sunnyvale CA 100 78,500 1988 1988
1 Windsor Ridge 825 E. Evelyn Avenue Sunnyvale CA 216 161,800 1989 1989
----------------------------
7% 1,982 1,644,300
Alameda County
---------------------------------------
1 Stevenson Place (The Apple) 4141 Stevenson Blvd. Fremont CA 200 146,200 1983 1971
1 Treetops 40001 Fremont Blvd. Fremont CA 172 131,200 1996 1978
1 Wimbeldon Woods 25200 Carlos Bee Blvd. Hayward CA 560 462,400 1998 1975
1 Summerhill Commons 36826 Cherry Street Newark CA 184 139,000 1987 1987
1 Essex at Lake Merritt, The 108-116 17th Street Oakland CA 270 258,900 2003 2003
----------------------------
5% 1,386 1,137,700
Contra Costa County
---------------------------------------
1 San Marcos (Vista del Mar) Hilltop Drive at Richmond PkwyRichmond CA 312 292,700 2003 2003
San Marcos (Vista del Mar) - Phase II Hilltop Drive at Richmond PkwyRichmond CA 120 114,900
1 Bel Air (The Shores) 2000 Shoreline Drive San Ramon CA 462 391,000 1995 1988 114 units 2000
1 Eastridge Apartments 235 East Ridge Drive San Ramon CA 188 174,100 1996 1988
1 Foothill Gardens 1110 Harness Drive San Ramon CA 132 155,100 1997 1985
1 Twin Creeks 2711-2731 Morgan Drive San Ramon CA 44 51,700 1997 1985
----------------------------
4% 1,138 1,064,600
San Francisco County
---------------------------------------
1 Mt. Sutro Terrace Apartments 480 Warren Drive San Francisco,CA 0% 99 64,000 1999 1973
--------------------------------------- ----------------------------
21 Total San Francisco Bay Area 17% 4,605 3,910,600
SOUTHERN CALIFORNIA
---------------------------------------------------------------------
Los Angeles County
---------------------------------------
1 Hampton Court (Columbus) 1136 N. Columbus Avenue Glendale CA 83 71,500 1999 1974
1 Hampton Place (Loraine) 245 W. Loraine Street Glendale CA 132 141,500 1999 1970
1 Rosebeach 16124 E. Rosecrans Ave. La Mirada CA 174 172,200 2000 1970
1 Marbrisa 1809 Termino Ave. Long Beach CA 202 122,800 2002 1987
1 Pathways 5945 E. Pacific Coast Hwy. Long Beach CA 296 197,700 1991 1975
1 Bunker Hill 222 and 234 S. Figueroa St. Los Angeles CA 456 346,600 1998 1968
1 City Heights 209 S. Westmoreland Los Angeles CA 687 424,100 2000 1968
1 Cochran Apartments 612 South Cochran Los Angeles CA 58 51,400 1998 1989
1 Kings Road 733 North Kings Road Los Angeles CA 196 132,100 1997 1979
1 Park Place 400 S. Detroit Street Los Angeles CA 60 48,000 1997 1988
1 Windsor Court 401 S. Detroit Street Los Angeles CA 58 46,600 1997 1988
1 Marina City Club 4333 Admiralty Way Marina Del Rey CA 101 127,200 2004 1971
1 Mirabella (Marina View) 13701 Marina Point Drive Marina Del Rey CA 188 176,800 2000 2000
1 Hillcrest Park (Mirabella) 1800 West Hillcrest Drive Newbury Park CA 608 521,900 1998 1973
1 Monterra del Mar (Windsor Terrace) 280 E. Del Mar Boulevard Pasadena CA 123 74,400 1997 1972
1 Monterra del Rey (Glenbrook) 350 Madison Pasadena CA 84 73,100 1999 1972
1 Monterra del Sol (Euclid) 280 South Euclid Pasadena CA 85 69,200 1999 1972
1 Fountain Park 13141 Fountain Park Drive Playa Vista CA 705 608,900 2004 2002
1 Crest, The 400 Appian Way Pomona CA 501 498,000 2000 1986
1 Highridge 28125 Peacock Ridge Drive Rancho Palos Verde CA 255 290,200 1997 1972
1 Villas at Bonita 477 E. Bonita Ave. San Dimas CA 102 144,600 2003 1981
1 Villas at San Dimas Canyon 325 S. San Dimas Canyon Rd. San Dimas CA 156 94,200 2003 1981
1 Walnut Heights 20700 San Jose Road Walnut CA 163 146,700 2003 1964
1 Avondale at Warner Center 22222 Victory Blvd. Woodland Hills CA 446 331,000 1999 1970
----------------------------
22% 5,919 4,910,700
Ventura County
---------------------------------------
1 Camarillo Oaks 921 Paseo Camarillo Camarillo CA 564 459,000 1996 1985
1 Mountain View 649 E. Las Posas Road Camarillo CA 106 83,900 2004 1980
1 Mariner's Place 711 South B Street Oxnard CA 105 77,200 2000 1987
1 Ocean Villa 4202-4601 Dallas Drive Oxnard CA 119 108,900 2002 1974
1 Tierra Vista Rice and Gonzales Oxnard CA 404 387,100 2001 2001
1 Monterey Villas (Village Apartments) 1040 Kelp Lane Oxnard CA 122 122,100 1997 1974
1 Meadowood 1733 Cochran Street Simi Valley CA 320 264,500 1996 1986
Parker Ranch Los Angeles and Stearns Simi Valley CA 324 310,900
1 Lofts at Pinehurst (Villa Scandia) 1021 Scandia Avenue Ventura CA 118 71,100 1997 1971
----------------------------
7% 1,858 1,573,800
Orange County
---------------------------------------
1 Barkley Apartments 2400 E. Lincoln Ave. Anahiem CA 161 139,800 2000 1984
1 Vista Pointe 175-225 S. Rio Vista Anahiem CA 286 242,400 1985 1968
1 Villa Venetia 2775 Mesa Verde Drive East Costa Mesa CA 468 405,800 2003 1972
1 Valley Park Apartments 17300 Euclid Ave. Fountain Valley CA 160 169,700 2001 1969
1 Capri at Sunny Hills 2341 Daphne Place Fullerton CA 100 128,100 2001 1961
1 Wilshire Promenade 141 West Wilshire Avenue Fullerton CA 149 128,000 (1) 1997 1992
1 Montejo Apartments 12911 Dale St. Garden Grove CA 124 103,200 2001 1974
1 Huntington Breakers 21270 Beach Boulevard Huntington Beach CA 342 241,700 1997 1984
1 Huntington Villas 16761 Viewpoint Lane Huntington Beach CA 400 352,800 2003 1972
Irvine development 2552 Kelvin Ave. Irvine CA 132 122,400
1 Hillsborough Park 1501 South Beach Boulevard La Habra CA 235 215,500 1999 1999
1 Arboretum at Lake Forest 22700 Lake Forest Drive Lake Forest CA 225 215,300 2002 1970
1 Trabuco Villas 25362 Mosswood Way Lake Forest CA 132 131,000 1997 1985
1 Coronado At Newport-North 880 Irvine Avenue Newport Beach CA 732 459,600 1999 1968
1 Coronado At Newport-South 1700 16th Street Newport Beach CA 715 498,700 1999 1969
1 Fairways Apartments 48 1/2 Pine Valley Lane Newport Beach CA 74 107,100 1999 1972
1 Woodland Apartments 501 East Katella Ave. Orange CA 90 108,000 2000 1969
1 Villa Angelina 201 E. Chapman Ave. Placentia CA 256 217,600 2001 1970
1 Hearthstone Apartments 2301 E. Santa Clara Ave. Santa Ana CA 140 154,800 2001 1970
1 Treehouse Apartments 2601 N. Grand Ave. Santa Ana CA 164 135,700 2001 1970
1 El Encanto 1151 Walnut Ave. Tustin CA 116 92,700 2000 1969
----------------------------
19% 5,069 4,247,500
San Diego County
---------------------------------------
1 Alpine Country 2660 Alpine Blvd. Alpine CA 108 81,900 2002 1986
1 Alpine Village 2055 Arnold Way Alpine CA 306 254,400 2002 1971
1 Bonita Cedars 5155 Cedarwood Rd. Bonita CA 120 120,800 2002 1983
1 Villas at Carlsbad 2600 Kremeyer Circle Carlsbad CA 102 72,900 2002 1965
1 Cambridge 660 F. St. Chula Vista CA 40 22,100 2002 1965
1 Woodlawn Colonial 245-255 Woodlawn Ave. Chula Vista CA 159 104,500 2002 1974
1 Mesa Village 5265 Clairemont Mesa Blvd. Clairemont CA 133 43,600 2002 1963
1 Casa Tierra 355 Orlando St. El Cajon CA 40 28,700 2002 1972
1 Coral Gardens 425 East Bradley El Cajon CA 200 182,000 2002 1976
1 Tierra del Sol/Norte 989 Peach Ave. El Cajon CA 156 117,000 2002 1969
1 Grand Regacy 2050 E. Grand Ave. Escondido CA 60 42,400 2002 1967
1 Mira Woods Villa 10360 Maya Linda Rd. Mira Mesa CA 355 262,600 2002 1982
1 Country Villas 283 Douglas Drive Oceanside CA 180 179,700 2002 1976
1 Bluffs II, The 6466 Friars Road San Diego CA 224 126,700 1997 1974
Chesapeake Front at Beech St. San Diego CA 230 147,400
1 Emerald Palms 2271 Palm Ave. San Diego CA 152 133,000 2002 1986
1 Summit Park 8563 Lake Murray Blvd. San Diego CA 300 229,400 2002 1972
1 Vista Capri - East 4666 63rd St. San Diego CA 26 16,800 2002 1967
1 Vista Capri - North 3277 Berger Ave. San Diego CA 106 51,800 2002 1975
1 Carlton Heights 9705 Carlton Hills Blvd. Santee CA 70 48,400 2002 1979
1 Shadow Point 9830 Dale Ave. Spring Valley CA 172 131,200 2002 1983
----------------------------
11% 3,009 2,249,900
--------------------------------------- ----------------------------
72 Total Southern California 59% 15,855 12,981,900
SEATTLE METROPOLITAN AREA
---------------------------------------------------------------------
1 Emerald Ridge 3010 118th Avenue SE Bellevue WA 180 144,000 1994 1987
1 Foothill Commons 13800 NE 9th Place Bellevue WA 360 288,300 1990 1978
1 Palisades, The 13808 NE 12th Bellevue WA 192 159,700 1990 1977
1 Sammamish View 16160 SE Eastgate Way Bellevue WA 153 133,500 1994 1986
1 Woodland Commons 13700 NE 10th Place Bellevue WA 236 172,300 1990 1978
1 Canyon Pointe 1630 228th St. SE Bothell WA 250 210,400 2003 1990
1 Inglenook Court 14220 Juanita Drive, NE Bothell WA 224 183,600 1994 1985
1 Salmon Run at Perry Creek 2109 228th Street SE Bothell WA 132 117,100 2000 2000
1 Stonehedge Village 14690 143rd Blvd., NE Bothell WA 196 214,800 1997 1986
1 Park Hill at Issaquah 22516 SE 56th Street Issaquah WA 245 277,700 1999 1999
1 Peregrine Point 21209 SE 42nd Street Issaquah WA 67 85,900 2003 2003
1 Wandering Creek 12910 SE 240th Kent WA 156 124,300 1995 1986
1 Bridle Trails 6600 130th Avenue, NE Kirkland WA 92 73,400 1997 1986
1 Evergreen Heights 12233 NE 131st Way Kirkland WA 200 188,300 1997 1990
1 Laurels at Mill Creek 1110 164th Street SE Mill Creek WA 164 134,300 1996 1981
1 Anchor Village 9507 49th Avenue West Mukilteo WA 301 245,900 1997 1981
1 Castle Creek 7000 132nd Place, SE Newcastle WA 216 191,900 1998 1998
1 Brighton Ridge 2307 NE 4th Street Renton WA 264 201,300 1996 1986
1 Forest View 650 Duvall Ave. NE Renton WA 192 182,500 2003 1998
1 Fountain Court 2400 4th Street Seattle WA 320 207,000 2000 2000
1 Linden Square 13530 Linden Avenue North Seattle WA 183 142,200 2000 1994
1 Maple Leaf 7415 5th Avenue, NE Seattle WA 48 35,500 1997 1986
1 Spring Lake 12528 35th Avenue, NE Seattle WA 69 42,300 1997 1986
1 Wharfside Pointe 3811 14th Avenue West Seattle WA 142 119,200 (2) 1994 1990
--------------------------------------- ----------------------------
24 Total Seattle Metropolitan Area 17% 4,582 3,875,400
PORTLAND METROPOLITAN AREA
---------------------------------------------------------------------
1 Andover Park 15282 SW Teal Blvd. Beaverton OR 240 227,800 2001 1992
1 Jackson School Village 300 NE Autumn Rose Way Hillsboro OR 200 196,800 1996 1996
1 Landmark Apartments 3120 NW John Olsen Ave. Hillsboro OR 285 282,900 1996 1990
1 Hunt Club 6001 SW Bonita Road Lake Oswego OR 256 198,000 2000 1985
1 Meadows @ Cascade Park 314 SE 19th Street Vancouver WA 198 199,300 1997 1989
1 Village @ Cascade Park 501 SE 123rd Avenue Vancouver WA 192 178,100 1997 1989
--------------------------------------- ----------------------------
6 Total Portland Metropolitan Area 5% 1,371 1,282,900
OTHER AREAS
---------------------------------------------------------------------
1 Devonshire Apartments 2770 West Devonshire Ave. Hemet CA 276 207,200 2002 1988
1 St. Cloud Apartments 6525 Hilcroft Houston TX 302 306,800 2002 1968
----------------------------
2 2% 578 514,000
----------------------
125 Multifamily Properties 26,991 22,564,800 1998 1981
5 Multifamily Properties Under Construction 1,056 919,400
======================
Avg. square footage 836
Avg. units per property 216
Avg. age of property 23
(1) Also has 11,836 square feet of commercial/retail space.
(2) Also has 9,512 square feet of commercial space.
OTHER REAL ESTATE ASSETS
---------------------------------------------------------------------
Manufactured Housing Communities
---------------------------------------
Green Valley 2130 Sunset Dr. Vista CA 157 pads 2002 1973
Riviera 2038 Palm St. Las Vegas NV 450 pads 2002 1969
Recreational Vehicle Parks
---------------------------------------
Circle RV 1835 E. Main St. El Cajon CA 179 spaces 2002 1977
Vacationer 1581 E. Main St. El Cajon CA 159 spaces 2002 1973
Diamond Valley 344 N. State St. Hemet CA 224 spaces 2002 1974
Golden Village 3600 W. Florida Ave. Hemet CA 1,019 spaces 2002 1972
Riviera RV 2200 Palm St. Las Vegas NV 136 spaces 2002 1969
Office Buildings
---------------------------------------
Essex Corporate Headquarter Bldg. 925 E. Meadow Dr. Palo Alto CA 17,400 1997 1988
Valley Financial Office Building 2399 Camino Del Rio South San Diego CA 5,200 2002 1978
Moore Street Office Building 3205 Moore St. San Diego CA 2,000 2002 1957
Essex Southern Cal. Office Building 22110-22120 Clarendon St. Woodland Hills CA 38,940 2001 1982
S-12
New Residential Supply: Permits as % of Current Stock
12 Month Permit Period: June 2003 through June 2004 (inclusive)
Single Family Data Multi-Family Data All Residential Data
- ----------------------------------------------------------------------------- ----------------------------------- ---------------------------------
Median SF 2003 SF SF Stock SF Permits % of MF Stock MF Permits % of Total Residential % of
Market Price (2003) Affordability 2000 Last 12 Months Stock 2000 Last 12 months Stock Permits Last 12 months Stock
============================================================================= =================================== =================================
Nassau-Suffolk $364,500 101% 740,000 3,640 0.5% 240,000 500 0.2% 4,140 0.4%
New York PMSA $352,600 63% 760,000 2,644 0.3% 2,920,000 13,831 0.5% 16,475 0.4%
Boston $412,800 70% 1,530,000 6,094 0.4% 670,800 5,074 0.8% 11,168 0.5%
Philadelphia $168,000 163% 1,532,000 14,208 0.9% 515,100 5,326 1.0% 19,534 1.0%
Chicago $238,900 118% 1,700,000 33,380 2.0% 1,404,900 10,112 0.7% 43,492 1.4%
Wash. D.C. PMSA $286,200 109% 1,299,000 27,553 2.1% 644,300 8,668 1.3% 36,221 1.9%
Miami/Ft. Lauderda $227,000 94% 717,000 20,042 2.8% 876,000 14,454 1.7% 34,496 2.2%
Denver $238,200 112% 582,000 14,814 2.5% 274,900 3,719 1.4% 18,533 2.2%
Minneapolis $199,600 147% 818,000 20,619 2.5% 351,800 5,771 1.6% 26,390 2.3%
Dallas-Ft. Worth $138,400 179% 1,381,000 43,434 3.1% 650,000 9,745 1.5% 53,179 2.6%
Austin $156,700 161% 326,000 11,163 3.4% 169,900 2,195 1.3% 13,358 2.7%
Houston $136,400 174% 1,027,000 39,236 3.8% 547,700 12,174 2.2% 51,410 3.3%
Atlanta $152,400 181% 1,122,000 57,353 5.1% 467,800 12,175 2.6% 69,528 4.4%
Phoenix $152,500 155% 970,000 52,160 5.4% 360,500 7,005 1.9% 59,165 4.4%
Orlando $145,100 152% 482,000 26,717 5.5% 201,500 5,957 3.0% 32,674 4.8%
Las Vegas $179,200 124% 440,000 34,453 7.8% 215,700 6,260 2.9% 40,713 6.2%
----------------------------------------------------------- ----------------------------------- ---------------------------------
Totals $228,137 132% 15,426,000 407,510 2.6% 10,510,900 122,966 1.2% 530,476 2.0%
=========================================================== =================================== =================================
Seattle $268,800 106% 656,000 11,954 1.8% 354,487 3,510 1.0% 15,464 1.5%
Portland $192,000 125% 561,000 10,394 1.9% 225,335 3,658 1.6% 14,052 1.8%
San Francisco $566,400 59% 368,000 1,417 0.4% 344,000 1,970 0.6% 3,387 0.5%
Oakland $399,000 83% 625,000 7,522 1.2% 270,000 3,546 1.3% 11,068 1.2%
San Jose $473,900 76% 388,000 2,398 0.6% 192,000 2,212 1.2% 4,610 0.8%
Los Angeles $318,900 84% 1,877,000 11,090 0.6% 1,392,963 11,938 0.9% 23,028 0.7%
Ventura $388,500 80% 199,000 1,678 0.8% 53,295 1,078 2.0% 2,756 1.1%
Orange $418,600 78% 628,000 6,491 1.0% 340,800 2,664 0.8% 9,135 0.9%
San Diego $379,300 73% 664,000 9,688 1.5% 375,664 6,084 1.6% 15,772 1.5%
PNW $233,398 115% 1,217,000 22,348 1.8% 579,822 7,168 1.2% 29,516 1.6%
No Cal $464,651 74% 1,381,000 11,337 0.8% 806,000 7,728 1.0% 19,065 0.9%
So Cal $353,510 81% 3,368,000 28,947 0.9% 2,162,722 21,744 1.0% 50,691 0.9%
----------------------------------------------------------- ----------------------------------- ---------------------------------
ESSEX $354,735 86% 5,966,000 62,632 1.0% 3,548,543 36,640 1.0% 99,272 1.0%
=========================================================== =================================== =================================
Permits: Single Family equals 1 Unit, Multi-Family equals 5 or More Units
Sources: SF Prices - National Association of Realtors,Rosen Consulting Group : Permits, Total Residential Stock - U.S. Census; Axiometrics
Median Home Prices - National Association of Realtors; DataQuick, Mortgage Rates - Freddie Mac, Median Household Incomes - US Census; BEA; Essex
Single Family - Multi-Family Breakdown of Total Residences, Rosen Consulting Group, US Census, EASI, Essex
*Single Family Affordability - Equals the ratio of the actual Median Household Income to the Income required to purchase the Median Priced Home.
The required Income is defined such that the Mortgage Payment is 35% of said Income, assuming a 10% Down Payment and a 30-year fixed mortgage rate.(5.75%)
Median Household Income is estimated from US Census 2000 data and Income Growth from BEA and Popultation Growth from the US Census.
S-13
===================================================================================================================
Essex Markets Forecast 2004: Supply, Jobs and Apartment Market Conditions
===================================================================================================================
Residential Supply* Job Forecast** Forecast Market Conditions***
---------------------------------------------- ---------------------- ------------------------------
Market New MF % of New SF % of Est.New Job % Estimated Y-o-Y Estimated Year
Supply Total Stock Supply Total Stock Dec-Dec Growth Rent Growth End Vacancy
============================================== ====================== ==============================
Seattle 2,100 0.6% 9,000 1.4% 16,000 1.2% 0% to 1.5% 94.5%
Portland 2,400 1.1% 9,900 1.8% 9,600 1.0% Flat 93.0%
San Francisco 1,600 0.5% 1,200 0.3% 8,200 0.9% Flat 95.0%
Oakland 1,800 0.7% 6,100 1.0% 10,700 1.0% Flat 95.0%
San Jose 2,000 1.0% 2,100 0.5% 6,000 0.7% Flat 94.0%
Ventura 600 1.2% 2,400 1.2% 3,500 1.3% 2.0% 95.5%
Los Angeles 7,500 0.5% 8,600 0.5% 36,000 0.9% 2% to 4% 95.5%
Orange 3,200 0.9% 6,200 1.0% 26,500 1.9% 2% to 3% 95.5%
San Diego 4,200 1.1% 9,100 1.4% 25,000 2.0% 3.0% 95.5%
===================================================================================================================
SO.Cal 15,500 0.7% 26,300 0.8% 91,000 1.3% 2% to 3% 95.5%
===================================================================================================================
All data is an Essex Forecast
* New Residential Supply: represents Essex's internal estimate ofactual deliveries during the yea related to but can differ from the 12 Month trailingPermit Levels reported on Appendix A.
** Job Forecast/Performance refers to the difference between Total Non-Farm Industry Employment (not Seasonally Adjusted) projected through December 2004 over the comparable actual figures for December 2003. The fir column represents thecurrent Essex forecast of the increase in Total Non-Farm Industry Employment. The seco represents these forecasted new jobs as a percent of the December 2003 base.
*** The Forecast Market Conditions represents Essex's estimates of the Change in Rents/Vacancy Rates at t end of 2004. The Estimated Year-over-Year Rent Growth represents the forecast change in EffectiveMarket Re December 2004 vs. December 2003 (whereMarket refers to the entire MSA apartment market, NOT the Essex portf The estimated Year End Vacancy represents Essex's forecast ofMarket Vacancy Rates for December 2004.
S-14
