Essex Property Trust 8K Essex Announces First Quarter 2007 Earnings Results | ESS 2 May 07

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
(Dollars in thousands, except per share amounts)	March 31,
	2007		2006

Revenues:
Rental and other property	$	92,154	$	82,233
Management and other fees from affiliates		1,040		824
		93,194		83,057

Expenses:
Property operating, excluding real estate taxes		23,120		21,660
Real estate taxes		7,712		7,170
Depreciation and amortization		21,677		19,320
Interest		18,266		18,412
Amortization of deferred financing costs		677		696
General and administrative		6,096		4,899
Other expenses		-		970
		77,548		73,127
Earnings from operations		15,646		9,930

Interest and other income		2,182		2,394
Equity income (loss) co-investments		1,982		(442)
Minority interests		(5,307)		(4,807)
Income before discontinued operations and
income tax provision		14,503		7,075
Income tax provision		-		(37)
Income before discontinued operations		14,503		7,038

Income and gain from discontinued operations,
net of minority interests		23,043		3,284
Net income		37,546		10,322
Dividends to preferred stockholders		(2,243)		(488)
Net income available to common stockholders	$	35,303	$	9,834

Net income per share - basic	$	1.51	$	0.43

Net income per share - diluted	$	1.46	$	0.43

See Company's 10-Q for additional disclosures

S-1

E S S E X P R O P E R T Y T R U S T, I N C.

Consolidated Operating Results			Three Months Ended
Selected Line Item Detail			March 31,
(Dollars in thousands)			2007		2006

Rental and other property
	Rental		$	86,876	$	77,654
	Other property			5,278		4,579
		Rental and other property	$	92,154	$	82,233

Management and other fees from affiliates
	Management		$	781	$	824
	Development and redevelopment			259		-
		Management and other fees from affiliates	$	1,040	$	824

General and administrative
	General and administrative		$	8,782	$	7,032
	Allocated to property operating expenses - administrative			(1,394)		(1,262)
	Capitalized to real estate			(1,292)		(871)
		Net general and administrative	$	6,096	$	4,899

Interest and other income
	Interest income		$	1,790	$	315
	Lease income			392		392
	Gain from sale of marketable securities			-		1,687
		Interest and other income	$	2,182	$	2,394

Minority interests
	Limited partners of Essex Portfolio, L.P.		$	1,380	$	702
	Perpetual preferred distributions			2,559		2,559
	Series Z and Z-1 incentive units			198		151
	Third party ownership interests			127		320
	Down REIT limited partners' distributions			1,043		1,075
		Minority interests	$	5,307	$	4,807

See Company's 10-Q for additional disclosures

S-2

E S S E X P R O P E R T Y T R U S T, I N C.

Consolidated Funds From Operations			Three Months Ended
(Dollars in thousands, except share and per share amounts)			March 31,
			2007		2006		% Change

Funds from operations
Net income available to common stockholders			$	35,303	$	9,834
Adjustments:
	Depreciation and amortization			21,718		20,091
	Gains not included in FFO (1)			(14,040)		(3,062)
	Minority interests and co-investments (2)			2,406		2,054
		Funds from operations	$	45,387	$	28,917
		FFO per share-diluted	$	1.70	$	1.13	50.1%

Components of the change in FFO
Non-recurring items:
Income generated from TRS activities, net of taxes and expenses				(270)		-
City Heights - subordination fees				(10,068)		-
Net gain on sale of marketable securities				-		(717)
		Funds from operations excluding non-recurring items		35,049		28,200
		FFO excluding non-recurring items per share-diluted	$	1.31	$	1.10	18.9%

Changes in recurring items:
Same-property NOI			$	4,709
Non-same property NOI				3,210
Management fees from joint ventures				216
Interest expense and amortization of deferred financing costs				165
Other items, net				(1,451)
			$	6,849

Weighted average number of shares outstanding diluted (3)				26,735,117		25,572,575



(1)	Amount includes net gain from sale of City Heights and the equivalent to accumulated depreciation on Peregrine Point condominum sales.
(2)	Amount includes the following 2007 adjustments: (i) minority interest related to Operating Partnership units totaling $3.8 million, (ii) depreciation add back and preferred interest for co-investments not recognized for GAAP totaling $0.9 million, and (iii) less adjustments to income from Waterstone at Fremont and City Heights not recognized for FFO totaling $2.3 million.
(3)	Assumes conversion of the weighted average operating partnership interests in the Operating Partnership into shares of the Company's common stock.

See Company's 10-Q for additional disclosures

S-3

E S S E X P R O P E R T Y T R U S T, I N C.

Consolidated Balance Sheets
(Dollars in thousands)
				March 31, 2007		December 31, 2006

Real Estate:
	Land and land improvements		$	577,223	$	560,880
	Buildings and improvements			2,173,605		2,108,307
				2,750,828		2,669,187
	Less: accumulated depreciation			(486,134)		(465,015)
				2,264,694		2,204,172
Real estate - held for sale, net				-		41,221
Real estate under development				152,248		103,487
Investments				64,221		60,451
				2,481,163		2,409,331
Cash and cash equivalents				25,815		23,610
Marketable securities				5,784		-
Other assets				51,093		40,036
Deferred charges, net				12,476		12,863
		Total assets	$	2,576,331	$	2,485,840

Mortgage notes payable			$	1,092,407	$	1,060,704
Mortgage notes payable - held for sale				-		32,850
Exchangeable bonds				225,000		225,000
Lines of credit				158,374		93,000
Other liabilities				90,434		77,852
Deferred gain				2,193		2,193
		Total liabilities		1,568,408		1,491,599

Minority interests				230,259		236,120
Series G cumulative convertible preferred stock, liquidation value				145,912		145,912

Stockholders' Equity:
	Common stock			2		2
	Series F cumulative redeemable preferred stock, liquidation value			25,000		25,000
	Additional paid-in-capital			690,467		686,937
	Distributions in excess of accumulated earnings			(83,985)		(97,457)
	Accumulated other comprehensive income (loss)			268		(2,273)
		Total stockholders' equity		631,752		612,209
		Total liabilities and stockholders' equity	$	2,576,331	$	2,485,840

See Company's 10-Q for additional disclosures

S-4

E S S E X P R O P E R T Y T R U S T, I N C.

Debt Summary - March 31, 2007
(Dollars in thousands)


			Percentage of				Weighted	Weighted
			Total	Balance			Average	Average Maturity
			Debt	Outstanding			Interest Rate	In Years
Mortgage notes payable
	Fixed rate - secured		61%	$	903,356		6.4%	4.5
	Tax exempt variable (1)		13%		189,051		4.8%	23.5
		Total mortgage notes payable	74%		1,092,407		6.1%	7.7

Exchangeable bonds (2)			15%		225,000		3.6%

Line of credit - secured (3)			7%		99,974		5.8%
Line of credit - unsecured (4)			4%		58,400		6.2%
			11%		158,374		5.9%
		Total debt	100%	$	1,475,781		5.8%

							Weighted
	Scheduled principal payments (excludes lines of credit)						Average
							Interest Rate
			2007	$	68,662	(5)	6.0%
			2008		113,226		6.8%
			2009		24,405		6.9%
			2010		156,351		8.0%
			2011		154,927		6.4%
			Thereafter		799,836		5.0%
			Total	$	1,317,407		5.8%

Capitalized interest for the quarter was approximately $2.0 million.

(1)	Subject to interest rate protection agreements.
(2)	Exchangeable bonds total $225 million and mature in November 2025. This is an unsecured obligation of the operating partnership, and is
	fully and unconditionally guaranteed by Essex Property Trust, Inc.
(3)	Secured line of credit commitment is $100 million and matures in January 2009. This line is secured by eight of Essex's apartment communities.
	The underlying interest rate is currently the Freddie Mac Reference Rate plus .55% to .59%.
(4)	Unsecured line of credit commitment is $200 million and matures in March 2009.
	The underlying interest rate on this line is based on a tiered rate structure tied to the Company's corporate ratings and is currently at LIBOR plus 0.80%.
(5)	During April 2007, the Company refinanced a mortgage loan for $35.7 million secured by the Tierra Vista property in the amount of $62.5 million, with a fixed interest rate of 5.47%, which matures in April 2017. In conjunction with this transaction the Company settled its first $50 million forward-starting swap and received $1.3 million from the counterparty. The settlement of the swap was deemed effective and reduces the interest rate on the new Tierra Vista mortage loan to 5.19%.

See Company's 10-Q for additional disclosures

S-5

E S S E X P R O P E R T Y T R U S T, I N C.

Capitalization - March 31, 2007
(Dollars and shares in thousands, except per share amounts)



Total debt	$	1,475,781


Common stock and potentially dilutive securities
Common stock outstanding		23,471
Limited partnership units (1)		2,491
Options-treasury method		256
Total common stock and potentially dilutive securities		26,218	shares

Common stock price per share as of March 31, 2007	$	129.48

Market value of common stock and potentially dilutive securities	$	3,394,707

Perpetual preferred units/stock	$	304,500

Total equity capitalization	$	3,699,207

Total market capitalization	$	5,174,988

Ratio of debt to total market capitalization		28.5%


(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-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 March 31, 2007 and 2006
(Dollars in thousands)
			Southern California					Northern California					Seattle Metro					Other real estate assets (1)					Total
			2007		2006		% Change	2007		2006		% Change	2007		2006		% Change	2007		2006		% Change	2007		2006		% Change

Revenues:
	Same-property revenue		$	45,801	$	43,178	6.1%	$	14,371	$	13,191	8.9%	$	13,505	$	12,119	11.4%	$	2,639	$	2,472	6.8%	$	76,316	$	70,960	7.5%
	Non-same property revenue (2)			6,162		5,185			7,497		4,253			1,539		1,152			640		683			15,838		11,273
		Total Revenues	$	51,963	$	48,363		$	21,868	$	17,444		$	15,044	$	13,271		$	3,279	$	3,155		$	92,154	$	82,233

Property operating expenses:
	Same-property operating expenses		$	14,251	$	13,933	2.3%	$	4,481	$	4,388	2.1%	$	4,719	$	4,572	3.2%	$	1,236	$	1,147	7.8%	$	24,687	$	24,040	2.7%
	Non-same property operating expenses (2)			1,841		1,585			2,747		1,530			476		442			1,081		1,233			6,145		4,790
		Total property operating expenses	$	16,092	$	15,518		$	7,228	$	5,918		$	5,195	$	5,014		$	2,317	$	2,380		$	30,832	$	28,830

Net operating income:
	Same-property net operating income		$	31,550	$	29,245	7.9%	$	9,890	$	8,803	12.3%	$	8,786	$	7,547	16.4%	$	1,403	$	1,325	5.9%	$	51,629	$	46,920	10.0%
	Non-same property operating income (2)			4,321		3,600			4,750		2,723			1,063		710			(441)		(550)			9,693		6,483
		Total net operating income	$	35,871	$	32,845		$	14,640	$	11,526		$	9,849	$	8,257		$	962	$	775		$	61,322	$	53,403

Same-property operating margin				69%		68%			69%		67%			65%		62%			53%		54%			68%		66%
Same-property turnover percentage				45%		48%			49%		49%			52%		48%			50%		55%			48%		49%
Same-property concessions			$	234	$	107		$	53	$	30		$	22	$	57		$	18	$	28		$	327	$	223
Average same-property concessions per turn (3)			$	191	$	82		$	129	$	74		$	37	$	106		$	123	$	174		$	138	$	92

Net operating income percentage of total				58%		62%			24%		22%			16%		15%			2%		1%			100%		100%

Loss to lease (4)			$	7,997				$	5,506				$	2,363				$	225				$	16,092
	Loss to lease as a percentage
	of rental income			3.8%					5.7%					3.8%					2.7%					4.3%

Reconciliation of apartment units at end of period

	Same-property apartment units			10,766					3,315					4,452					1,177					19,710

	Consolidated Apartment Units			12,386		12,957			5,523		4,621			4,905		4,956			1,177		1,177			23,991		23,711
	Joint Venture			480		598			2,101		1,936			515		515			-		-			3,096		3,049
	Under Development (5)			543		551			238		-			127		-			-		-			908		551
		Total apartment units at end of period		13,409		14,106			7,862		6,557			5,547		5,471			1,177		1,177			27,995		27,311

		Percentage of total		48%		52%			28%		24%			20%		20%			4%		4%			100%		100%


Average same-property financial occupancy				95.7%		96.4%			95.4%		96.7%			95.9%		96.7%			94.9%		95.5%			95.6%		96.4%

(1)	Includes four apartment communities in Portland, OR, one community in Houston, TX, and other rental properties including commercial properties. Included in first quarter 2007 non-same property operating expenses is $0.5 million for a property legal settlement, offset by the $0.5 million for the elimination of earthquake insurance expense paid to a wholly owned captive insurance company.
(2)	Includes properties which subsequent to January 1, 2006 were either acquired or in a stage of development or redevelopment without stabilized operations.
(3)	Average same-property concessions per turn is the dollar amount per unit resulting from the same-property concessions divided by the product of the same property turnover percentage times the same-property apartment units.
(4)	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.
(5)	Fund II owns 395 of the units under development as of March 31, 2007.

See Company's 10-Q for additional disclosures

S-7

E S S E X P R O P E R T Y T R U S T, I N C.

Same-Property Revenue by County - Quarters ended March 31, 2007, March 31, 2006 and December 31, 2006
(Dollars in thousands)

				Average Property Rental Rates					Property Revenue					Property Revenue
				March 31,		March 31,			March 31,		March 31,			December 31,		Sequential
		Region	Units	2007		2006		% Change	2007		2006		% Change	2006		% Change

Southern California
	Ventura County		2,844	$	1,377	$	1,300	5.9%	$	11,851	$	11,302	4.9%	$	11,759	0.8%
	Los Angeles County		2,754		1,658		1,545	7.3%		14,475		13,505	7.2%		14,454	0.1%
	Orange County		2,037		1,495		1,398	6.9%		9,115		8,709	4.7%		9,175	-0.7%
	San Diego County		2,616		1,046		1,001	4.5%		8,423		7,963	5.8%		8,389	0.4%
	Santa Barbara County		239		1,670		1,405	18.9%		1,229		1,014	21.2%		1,259	-2.4%
	Riverside County		276		816		801	1.9%		708		685	3.4%		697	1.6%
			10,766		1,383		1,298	6.5%		45,801		43,178	6.1%		45,733	0.1%

Northern California
	San Francisco MSA		175		1,635		1,484	10.2%		858		793	8.2%		831	3.2%
	Santa Clara County		1,870		1,478		1,316	12.3%		8,401		7,440	12.9%		8,080	4.0%
	Alameda County		200		1,200		1,092	9.9%		734		673	9.1%		707	3.8%
	Contra Costa County		1,070		1,428		1,336	6.9%		4,378		4,285	2.2%		4,386	-0.2%
			3,315		1,453		1,318	10.2%		14,371		13,191	8.9%		14,004	2.6%

Seattle Metro			4,452		967		855	13.1%		13,505		12,119	11.4%		13,228	2.1%

Other real estate assets			1,177		731		677	8.0%		2,639		2,472	6.8%		2,631	0.3%


Total Same-Property revenue			19,710	$	1,262	$	1,164	8.4%	$	76,316	$	70,960	7.5%	$	75,596	1.0%

See Company's 10-Q for additional disclosures

S-8

E S S E X P R O P E R T Y T R U S T, I N C.

Development Pipeline - March 31, 2007
(Dollars in millions)


			Estimated Units		Total Incurred to Date		Estimated Remaining Costs		Estimated Total Cost	Construction Start	Construction Complete	Initial Occupancy/ Sale	Stabilized Operations/ Last Sale

Development Projects
Project Name		Location

Northwest Gateway		Los Angeles, CA	275	$	34.2	$	36.9	$	71.1	Jan-06	Feb-08	Feb-08	Oct-08
100 Grand		Oakland, CA	238		17.7		78.5		96.2	Dec-06	Dec-08	Dec-08	May-09

	Consolidated - Development Projects		513		51.9		115.4		167.3

Development Projects - Fund II
Project Name		Location
Lake Union		Seattle, WA	127		13.0		22.4		35.4	Aug-06	Jan-08	Jan-08	Jun-08
Studio City		Studio City, CA	149		22.8		30.5		53.3	Jun-07	Mar-09	Mar-09	Jun-09
Chatsworth		Chatsworth, CA	119		9.9		29.5		39.4	Jun-07	May-09	May-09	Sep-09

	Fund II - Development Projects		395		45.7		82.4		128.1

	Total - Development Projects		908		97.6		197.8		295.4

Predevelopment Projects

Project Name		Location
	Moorpark	Moorpark, CA	-		-		-		-	Sep-07	Jun-09	Jun-09	Feb-10
	Berkeley (1)	Berkeley, CA	-		-		-		-	Sep-07	Sep-09	Sep-09	Mar-10
	Citiplace	San Diego, CA	-		-		-		-	Feb-08	Nov-09	Nov-09	Mar-10
	Broadway Heights (2)	Seattle, WA	-		-		-		-	Apr-08	Jan-10	Jan-10	Nov-10
	Hollywood	Hollywood, CA	-		-		-		-	Jun-08	Jun-10	Jun-10	Dec-10
	Tasman (1)	Sunnyvale, CA	-		-		-		-	Jun-08	Jun-10	Jun-10	Sep-11
	River Oaks	San Jose, CA	-		-		-		-	Jan-10	Sep-13	Jan-12	Jul-14
	Other Predevelopment Project (3)		-		-		-		-
Total - Predevelopment Projects			2,136		92.0		554.0		646.0

Other Projects (TRS)

Project Name		Location
	Peregrine Pointe (4)	Issaquah, WA	8		-		-		-	-	-	-	-
	Archer	San Jose, CA	45		-		-		-	Aug-07	Dec-08	Dec-08	Mar-09
	View Pointe	Newcastle, WA	24		-		-		-	Sep-07	Nov-08	Nov-08	Mar-09

	Total - Other Projects		77		8.3		20.7		29.0

	Grand Total - Development Pipeline		3,121	$	197.9	$	772.5	$	970.4


(1)	Properties in contract to be purchased by the Company with non-refundable deposits or options payments.
(2)	The Company has entered into a joint venture development project with a third-party to develop this property and Essex will have a 50% interest in the project.
(3)	There is one additional predevelopment project located in Northern California that is in the entitlement process.
(4)	The property is being sold as condominium units, and 58 of 66 units have been sold as of March 31, 2007.

See Company's 10-Q for additional disclosures

S-9

E S S E X P R O P E R T Y T R U S T, I N C.

Redevelopment Pipeline - March 31, 2007
(Dollars in thousands)
				Total		Estimated		Estimated							Q1 2007	Units completed
				Incurred		Remaining		Total	Redevelopment		NOI		NOI		Rehab	as of
	Region/Project Name	Units		To Date		Cost		Cost	Start Date		Q1 2007		Q1 2006		Vacancy Loss	3/31/2007

	Approved - Redevelopment Projects
	Woodland/Foothill Commons, Bellevue, WA (1)	596	$	279	$	3,097	$	3,376	Apr-06
		596		279		3,097		3,376

	Active - Redevelopment Projects
	Southern California
	Kings Road, Los Angeles, CA (2)	196		4,525		1,667		6,192	Jan-04	$	634	$	589	$	4	115
	Mira Monte, Mira Mesa, CA	355		5,467		556		6,023	Sep-04		859		747		20	324
	Avondale at Warner Center, Woodland Hills, CA	446		9,954		2,010		11,964	Oct-04		1,252		1,087		37	154
	Pathways, Long Beach, CA	296		1,391		9,323		10,714	Jun-06		942		863		38	7
	Highridge, Rancho Palos Verdes, CA	255		63		16,000		16,063	Jan-07		888		903		4	-

	Northern California
	The Montclaire - Phase I - III, Sunnyvale, CA	390		3,221		11,877		15,098	Aug-06		964		866		77	55
	Treetops, Fremont, CA	172		1,219		7,054		8,273	Sep-06		394		324		-	1
	Summerhill Commons, Newark, CA	184		3,259		1,067		4,326	Oct-06		471		432		8	-
	Wimbledon Woods, Hayward, CA	560		1,866		7,484		9,350	Oct-06		1,348		1,102		8	3

	Seattle Metro
	Palisades - Phase I and II, Bellevue, WA	192		6,059		532		6,591	Sep-04		386		244		9	192
	Sammamish View, Bellevue, WA	153		2,665		1,146		3,811	Dec-05		378		333		65	104
	Bridle Trails, Kirkland, WA (3)	108		4,422		651		5,073	May-05		285		134		-	108
		3,307		44,111		59,367		103,478			8,801		7,624		270	1,063

	Consolidated - Redevelopment Projects	3,903		44,390		62,464		106,854			8,801		7,624		270	1,063

	Redevelopment Projects - Fund II
	Regency Tower - Phase I - II, Oakland, CA	178		1,735		2,741		4,476	Nov-05		389		216		5	84
	The Renaissance, Los Angeles, CA (4)	168		766		3,275		4,041	Oct-06		511		-		100	28
	Fund II - Redevelopment Projects	346		2,501		6,016		8,517			900		216		105	112

	Grand Total - Redevelopment Pipeline	4,249	$	46,891	$	68,480	$	115,371		$	9,701	$	7,840	$	375	1,175


(1)	The community was approved as a redevelopment project during 2006, but operations were not destabilized and therefore the community is classified in Same-Property operations.
(2)	This community was restabilized at the end of the first quarter of 2005, and has been included in Same-Property operations since the second quarter of 2006. This community will be included in Same-Property operations for the full year ended starting 2007.
(3)	This community was restabilized at the end of the second quarter of 2006, and will be included in Same-Property operations starting the third quarter of 2007.
(4)	The Renaissance was purchased in September 2006, thus there is no NOI for Q1 2006.

See Company's 10-Q for additional disclosures

S-10

E S S E X P R O P E R T Y T R U S T, I N C.

For the three

Investments - March 31, 2007

Essex

Total Fund

Debt

months ended

(Dollars in thousands)

Book

Estimated

Interest

Maturity

3/31/2007

Value

Units

Amount

Type

Rate

Date

NOI

Joint Ventures

Essex Apartment Value Fund II, L.P. (Fund II)

Alderwood Park, Newark, CA

7,136

Fixed

5.56%

Jun-2015

Carlmont Woods, Belmont, CA

195

13,073

Fixed

4.89%

Dec-2013

Davey Glen, Belmont, CA

6,654

Fixed

6.13%

Aug-2016

Echo Ridge, Snoqualmie, WA

120

13,405

Fixed

5.01%

Sep-2014

Enclave, San Jose, CA

637

21,607

Fixed

7.26%

Jan-2018

Enclave, San Jose, CA

60,000

Variable

4.38%

Dec-2029

Harbor Cove, Foster City, CA

400

35,251

Fixed

4.89%

Dec-2013

Morning Run, Monroe, WA

222

13,856

Fixed

5.10%

Oct-2014

Parcwood, Corona, CA

312

25,666

Fixed

4.89%

Dec-2013

Regency Tower, Oakland, CA

178

11,179

Fixed

5.16%

Mar-2014

Renaissance, Los Angeles, CA

168

23,392

Fixed

6.51%

May-2011

Tower @ 801, Seattle, WA

173

19,538

Fixed

4.91%

Aug-2014

Total

47,643

436,786

2,570

250,757

6,087

Fund II - Development Pipeline (1)

Lake Union, Seattle, WA

127

6,205

Variable

LIBOR+1.50%

Jan-2010

Studio City, Studio City, CA

149

7,805

Variable

LIBOR+1.50%

Apr-2010

Chatsworth, Chatsworth, CA

119

Total

5,492

45,652

395

14,010

Line of credit

13,800

Variable

LIBOR+0.875%

Jun-2007

53,135

482,438

2,965

278,567

Capitalized costs

720

53,855

Waterstone at Fremont (formerly

known as Mountain Vista) (2)

1,182

1,159

Other (3)

9,184

64,221

(1)

See S-9 for more detail about the Fund II Development Pipeline.

(2)

Included in FFO for the 1st quarter is $0.2 million for the Company's preferred interest in this property, and unpaid preferred interest of approximately $7.5 million is expected to be paid in 2008.

(3)

Other investments include three development joint ventures in preliminary stages totaling $8.7 million and a real estate technology investment. Two of the real estate investments are located in Northern California and one is located in Southern California.

See Company's 10-Q for additional disclosures

S-11

E S S E X P R O P E R T Y T R U S T, I N C.

Consolidated Co-Investments - March 31, 2007
(Dollars in thousands)


The Company enters into co-investment transactions with third party developers, owners and investors of apartment communities. In accordance with FIN 46R, the Company consolidates certain of these co-investment transactions, resulting in minority interests corresponding to the ownership interest of the third-party developer, owner or investor.

The following table summarizes the consolidated co-investment transactions:

									Operations for the quarter ended
		Balance as of March 31, 2007							March 31, 2007
		Investment in		Related		Minority	Down-REIT				Operating
		Real Estate		Debt		Interest	Units (1)		Revenue		Expenses		NOI

Down-REITs:
Anchor Village	$	10,946	$	10,750	$	2,544	117,154	$	699	$	305	$	394
Barkley Apartments		9,452		4,960		2,369	80,302		604		211		393
Brookside Oaks		34,091		14,291		3,974	99,073		661		190		471
Capri at Sunny Hills		16,983		11,648		4,504	185,333		578		156		422
Brentwood Apartments		13,558		9,457		3,951	90,591		593		175		418
Hidden Valley (Parker Ranch)		45,093		33,493		6,089	62,647		1,350		382		968
Highridge Apartments		20,608		18,582		6,036	315,061		1,293		405		888
Montejo Apartments		9,113		5,877		1,596	38,038		443		127		316
Treehouse Apartments		12,103		7,913		3,299	75,700		613		166		447
Valley Park Apartments		16,294		10,024		1,461	60,892		699		162		537
Villa Angelina Apartments		21,196		13,555		2,886	59,839		974		217		757
		209,437		140,550		38,709	1,184,630		8,507		2,496		6,011
Other Co-investments (2):
Derian Office Building		16,747		-		-	n/a		483		123		360

(1) Represents the number of Down-REIT units that are currently outstanding. Generally, Down-REIT units can be redeemed at the holder's election for cash equal to the current price of Essex's common stock.
(2) During the first quarter of 2007, The Company acquired the minority interest in the Bluffs property for $5 million, and sold the City Heights property for $120 million to a third-party. Essex received 20% of the net sales price plus unpaid fees recorded for FFO of $10.1 milllion.

See Company's 10-Q for additional disclosures

S-12

E S S E X P R O P E R T Y T R U S T, I N C.

Income From Discontinued Operations and Selected Financial Data - March 31, 2007
(Dollars in thousands)


Income from Discontinued Operations

For the quarter ended March 31, 2007, the Company sold the City Heights property which was consolidated in accordance with FIN 46R, and condominium units at Peregrine Point. For the quarter ended March 31, 2006, the Company sold the Vista Capri East and the Casa Tierra apartment communities, and the Diamond Valley Recreational RV park.

			Three Months Ended
			March 31,
			2007		2006
	Rental revenues	$	1,355	$	3,029
	Interest and other income		290		-
	Revenues		1,645		3,029
	Property operating expenses		(535)		(1,199)
	Interest expense		(416)		(579)
	Depreciation and amortization		(41)		(771)
	Minority interests		(57)		(91)
	Expenses		(1,049)		(2,640)
	Gain on sale (1)		613		3,062
	Gain on sale - City Heights		78,306		-
	Equity income co-investments		-		119
	Subordination fees		10,290		-
	Minority interests - OP units		(2,138)		(286)
	Minority interests - City Heights		(64,624)		-
	Net gain on sale of real estate		22,447		2,895
	Income from discontinued operations	$	23,043	$	3,284


	Common Stock Equivalents

			Q1 2007		Actual
			Weighted Avg.		As of 3/31/07
	Common Shares		23,432,419		23,471,399
	Stock Options		256,345		256,345
	Exchangeable Bonds		526,220		441,455
	Weighted Avg. Shares Diluted - EPS		24,214,984		24,169,199
	Vested Series Z Incentive Units		212,886		213,205
	Operating Limited Partnership Units		2,307,247		2,277,592
	Weighted Avg. Shares Diluted - FFO		26,735,117		26,659,996

(1) For 2007, amount includes gain on sale of Peregrine Point condominum units. The gain on sale and related minority interest for City Heights is presented separately.

See Company's 10-Q for additional disclosures

S-13

Essex Property Trust (ESS) 8-KEssex Announces First Quarter 2007 Earnings Results