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
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 | Value | Units | Amount | Type | Rate | Date | NOI | |||||||||
Joint Ventures | ||||||||||||||||
Essex Apartment Value Fund II, L.P. (Fund II) | ||||||||||||||||
Alderwood Park, Newark, CA | 96 | 7,136 | Fixed | 5.56% | Jun-2015 | |||||||||||
Carlmont Woods, Belmont, CA | 195 | 13,073 | Fixed | 4.89% | Dec-2013 | |||||||||||
Davey Glen, Belmont, CA | 69 | 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