Essex Property Trust 8K Essex Announces Second Quarter 2007 Earnings Results | ESS 2 Aug 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				Six Months Ended
(Dollars in thousands, except per share amounts)		June 30,				June 30,
		2007		2006		2007		2006

Revenues:
	Rental and other property	$	96,707	$	83,717	$	188,861	$	165,951
	Management and other fees from affiliates		1,354		830		2,394		1,654
			98,061		84,547		191,255		167,605

Expenses:
	Property operating, excluding real estate taxes		23,932		21,246		47,052		42,906
	Real estate taxes		8,143		7,161		15,855		14,331
	Depreciation and amortization		25,166		19,907		46,843		39,227
	Interest		20,491		18,919		38,757		37,330
	Amortization of deferred financing costs		678		497		1,355		1,192
	General and administrative		6,008		4,980		12,104		9,879
	Other expenses		-		800		-		1,770
			84,418		73,510		161,966		146,635
Earnings from operations			13,643		11,037		29,289		20,970

Interest and other income			2,865		648		5,047		3,042
Equity income (loss) co-investments			463		(374)		2,445		(816)
Minority interests			(5,069)		(4,555)		(10,376)		(9,365)
Income before discontinued operations and
	income tax provision		11,902		6,756		26,405		13,831
Income tax provision			-		(138)		-		(175)
Income before discontinued operations			11,902		6,618		26,405		13,656

Income and gain from discontinued operations,
	net of minority interests		285		15,894		23,328		19,178
Net income			12,187		22,512		49,733		32,834
Dividends to preferred stockholders			(2,310)		(489)		(4,553)		(977)
Net income available to common stockholders		$	9,877	$	22,023	$	45,180	$	31,857

Net income per share - basic		$	0.40	$	0.96	$	1.89	$	1.39

Net income per share - diluted		$	0.39	$	0.95	$	1.83	$	1.38

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				Six Months Ended
Selected Line Item Detail			June 30,				June 30,
(Dollars in thousands)			2007			2006		2007		2006

Rental and other property
	Rental		$	91,304	$	78,995	$	178,180	$	156,649
	Other property			5,403		4,722		10,681		9,302
		Rental and other property	$	96,707	$	83,717	$	188,861	$	165,951

Management and other fees from affiliates
	Management		$	806	$	816	$	1,587	$	1,640
	Development and redevelopment			209		14		468		14
	Promote interest from Fund I			339		-		339		-
		Management and other fees from affiliates	$	1,354	$	830	$	2,394	$	1,654
								��
General and administrative
	General and administrative		$	8,653	$	7,406	$	17,435	$	14,438
	Allocated to property operating expenses - administrative			(1,520)		(1,374)		(2,914)		(2,636)
	Capitalized to real estate			(1,125)		(1,052)		(2,417)		(1,923)
		Net general and administrative	$	6,008	$	4,980	$	12,104	$	9,879

Interest and other income (1)
	Interest income		$	1,028	$	256	$	1,886	$	570
	Lease income, net			1,837		392		3,161		785
	Gain from sale of marketable securities			-		-		-		1,687
		Interest and other income	$	2,865	$	648	$	5,047	$	3,042

Equity income (loss) in co-investments
	Equity (loss) income in co-investments		$	159	$	(374)	$	94	$	(816)
	Gain on sale of co-investment activities, net			304		-		2,351		-
		Equity income (loss) in co-investments	$	463	$	(374)	$	2,445	$	(816)

Minority interests
	Limited partners of Essex Portfolio, L.P.		$	1,123	$	664	$	2,503	$	1,439
	Perpetual preferred distributions			2,559		2,559		5,118		5,119
	Series Z and Z-1 incentive units			198		151		396		302
	Third party ownership interests			146		115		273		364
	Down REIT limited partners' distributions			1,043		1,066		2,086		2,141
		Minority interests	$	5,069	$	4,555	$	10,376	$	9,365

(1) In the Q1 2007 supplement $0.9 million of lease income was misclassified as interest income. This was corrected by reclassifying the Q1 2007 amount to lease income, and therefore has no effect on the amounts presented for the three and six months ended June 30, 2007.

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					Six Months Ended
(Dollars in thousands, except share and per share amounts)			June 30,					June 30,
				2007		2006	% Change		2007		2006	% Change

Funds from operations
Net income available to common stockholders			$	9,877	$	22,023		$	45,180	$	31,857
Adjustments:
	Depreciation and amortization			25,166		20,675			46,884		40,766
	Gains not included in FFO (1)			(461)		(8,800)			(14,501)		(11,862)
	Minority interests and co-investments (2)			1,915		3,254			4,321		5,306
		Funds from operations	$	36,497	$	37,152		$	81,884	$	66,067
		FFO per share-diluted	$	1.32	$	1.45	-8.5%	$	3.01	$	2.58	16.8%

Components of the change in FFO
Non-recurring items:
Fund I - promote interest				(339)		�� -			(339)		-
Income generated from TRS activities, net of taxes and expenses				(143)		-			(413)		-
Joint venture - promote interest and fees				-		(8,221)			(10,068)		(8,221)
Net gain on sale of marketable securities				-		-			-		(717)
Impairment of property				-		800			-		800
		Funds from operations excluding non-recurring items		36,015		29,731			71,064		57,929
		FFO excluding non-recurring items per share-diluted	$	1.31	$	1.16	12.8%	$	2.61	$	2.26	15.6%

Changes in recurring items:
Same-property NOI			$	4,072				$	8,782
Non-same property NOI				5,250					8,458
Management fees from joint ventures				185					401
Interest expense and amortization of deferred financing costs				(1,753)					(1,590)
Other items, net				(1,470)					(2,916)
			$	6,284				$	13,135

Weighted average number of shares outstanding diluted (3)				27,592,976		25,697,237			27,192,463		25,628,728


(1)	For Q2 2007, the amount includes gains from Fund I of $0.3 million and depreciation add back for Peregrine Point of $0.2 million.
(2)	For Q2 2007, the amount includes the following adjustments: (i) minority interest related to Operating Partnership units totaling $1.3 million, and (ii) depreciation add back for co-investments not recognized for GAAP totaling $0.6 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)
				June 30, 2007		December 31, 2006

Real Estate:
	Land and land improvements		$	641,951	$	560,880
	Buildings and improvements			2,326,267		2,108,307
				2,968,218		2,669,187
	Less: accumulated depreciation			(508,681)		(465,015)
				2,459,537		2,204,172
Real estate - held for sale, net				-		41,221
Real estate under development				161,655		103,487
Investments				69,851		60,451
				2,691,043		2,409,331
Cash and cash equivalents				23,954		23,610
Marketable securities				3,815		-
Other assets				61,696		40,036
Deferred charges, net				12,967		12,863
		Total assets	$	2,793,475	$	2,485,840

Mortgage notes payable			$	1,202,122	$	1,060,704
Mortgage notes payable - held for sale				-		32,850
Exchangeable bonds				225,000		225,000
Lines of credit				37,000		93,000
Other liabilities				82,809		77,852
Deferred gain				2,193		2,193
		Total liabilities		1,549,124		1,491,599

Minority interests				251,965		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			904,876		686,937
	Distributions in excess of accumulated earnings			(97,500)		(97,457)
	Accumulated other comprehensive income (loss)			14,096		(2,273)
		Total stockholders' equity		846,474		612,209

		Total liabilities and stockholders' equity	$	2,793,475	$	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 - June 30, 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			69%	$	1,006,601	6.3%	5.4
	Tax exempt variable (1)			13%		195,521	4.9%	23.6
		Total mortgage notes payable		82%		1,202,122	6.1%	8.3

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

Line of credit - secured (3)				3%		37,000	5.8%
		Total debt		100%	$	1,464,122	5.8%

							Weighted
			Scheduled principal payments (excludes lines of credit)				Average
							Interest Rate
				2007	$	14,177	5.8%
				2008		112,653	6.8%
				2009		24,222	6.9%
				2010		155,820	8.1%
				2011		154,372	6.4%
				Thereafter		965,878	5.2%
				Total	$	1,427,122	5.8%


Capitalized interest for the six months ended June 30, 2007 was approximately $2.3 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%.

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 - June 30, 2007
(Dollars and shares in thousands, except per share amounts)



Total debt		$	1,464,122


Common stock and potentially dilutive securities
	Common stock outstanding		25,152
	Limited partnership units (1)		2,487
	Options-treasury method		235
Total common stock and potentially dilutive securities			27,874	shares
Common stock price per share as of June 30, 2007		$	116.30

Market value of common stock and potentially dilutive securities		$	3,241,746

Perpetual preferred units/stock		$	304,500

Total equity capitalization		$	3,546,246

Total market capitalization		$	5,010,368

Ratio of debt to total market capitalization			29.2%



(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. & #160;

Property Operating Results - Quarter ended June 30, 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		$	46,027	$	43,592	5.6%	$	14,862	$	13,660		8.8%	$	13,944	$	12,471	11.8%	$	2,686	$	2,550	5.3%	$	77,519	$	72,273	7.3%
	Non-same property revenue (2)			7,754		5,275			8,926		4,396				1,906		1,150			602		623			19,188		11,444
		Total Revenues	$	53,781	$	48,867		$	23,788	$	18,056			$	15,850	$	13,621		$	3,288	$	3,173		$	96,707	$	83,717

Property operating expenses:
	Same-property operating expenses		$	14,490	$	14,078	2.9%	$	4,709	$	4,346		8.4%	$	4,872	$	4,542	7.3%	$	1,225	$	1,156	6.0%	$	25,296	$	24,122	4.9%
	Non-same property operating expenses (2)			2,345		1,545			3,558		1,477				565		445			311		818			6,779		4,285
		Total property operating expenses	$	16,835	$	15,623		$	8,267	$	5,823			$	5,437	$	4,987		$	1,536	$	1,974		$	32,075	$	28,407

Net operating income:
	Same-property net operating income		$	31,537	$	29,514	6.9%	$	10,153	$	9,314		9.0%	$	9,072	$	7,929	14.4%	$	1,461	$	1,394	4.8%	$	52,223	$	48,151	8.5%
	Non-same property operating income (2)			5,409		3,730			5,368		2,919				1,341		705			291		(195)			12,409		7,159
		Total net operating income	$	36,946	$	33,244		$	15,521	$	12,233			$	10,413	$	8,634		$	1,752	$	1,199		$	64,632	$	55,310

Same-property operating margin				69%		68%			68%		68%				65%		64%			54%		55%			67%		67%

Same-property turnover percentage				58%		54%			48%		52%				65%		63%			56%		57%			58%		56%

Same-property concessions			$	225	$	153		$	47	$	24			$	13	$	17		$	13	$	27		$	298	$	221

Average same-property concessions per turn (3)			$	144	$	105		$	116	$	56			$	19	$	24		$	79	$	161		$	105	$	80

Net operating income percentage of total				57%		60%			24%		22%				16%		16%			3%		2%			100%		100%

Loss to lease (4)			$	7,146				$	6,454					$	3,016				$	492				$	17,107
	Loss to lease as a percentage
	of rental income			3.3%					6.6%						4.9%					5.8%					4.6%

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			12,725		12,270			5,805		4,621				5,005		4,905			1,177		1,177			24,712		22,973
	Joint Venture			480		312			2,101		2,005				515		515			-		-			3,096		2,832
	Under Development (5)			743		424			238		-				127		127			-		-			1,108		551
		Total apartment units at end of period		13,948		13,006			8,144		6,626				5,647		5,547			1,177		1,177			28,916		26,356

		Percentage of total		48%		49%			28%		25%	��			20%		21%			4%		5%			100%		100%


Average same-property financial occupancy				95.4%		96.1%			97.0%		98.2%				96.6%		97.6%			95.4%		96.6%			95.9%		96.8%

(1)	Includes four apartment communities in Portland, OR, one community in Houston, TX, and other rental properties including commercial properties. Included in second quarter 2007 is $0.5 million for the elimination of earthquake insurance expense paid to a wholly owned captive insurance company.
(2)	Includes properties which subsequent to April 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 June 30, 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. & #160;

Property Operating Results - Six months ended June 30, 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		$	91,828	$	86,770	5.8%		$	29,233		$	26,851		8.9%		$	27,449		$	24,589		11.6%		$	5,325		$	5,022		6.0%		$	153,835		$	143,232		7.4%
	Non-same property revenue (2)			13,916		10,460				16,423			8,649					3,445			2,303					1,242			1,307					35,026			22,719
		Total Revenues	$	105,744	$	97,230			$	45,656		$	35,500				$	30,894		$	26,892				$	6,567		$	6,329				$	188,861		$	165,951

Property operating expenses:
	Same-property operating expenses		$	28,741	$	28,012	2.6%		$	9,190		$	8,734		5.2%		$	9,591		$	9,114		5.2%		$	2,461		$	2,302		6.9%		$	49,983		$	48,162		3.8%
	Non-same property operating expenses (2)			4,186		3,129				6,304			3,006					949			887					1,485			2,053					12,924			9,075
		Total property operating expenses	$	32,927	$	31,141			$	15,494		$	11,740				$	10,540		$	10,001				$	3,946		$	4,355				$	62,907		$	57,237

Net operating income:
	Same-property net operating income		$	63,087	$	58,758	7.4%		$	20,043		$	18,117		10.6%		$	17,858		$	15,475		15.4%		$	2,864		$	2,720		5.3%		$	103,852		$	95,070		9.2%
	Non-same property operating income (2)			9,730		7,331				10,119			5,643					2,496			1,416					(243)			(746)					22,102			13,644
		Total net operating income	$	72,817	$	66,089			$	30,162		$	23,760				$	20,354		$	16,891				$	2,621		$	1,974				$	125,954		$	108,714



Same-property operating margin				69%		68%				69%			67%					65%			63%					54%			54%					68%			66%

Same-property turnover percentage				52%		51%				49%			50%					58%			56%					53%			56%					53%			52%

Same-property concessions			$	460	$	261			$	99		$	54				$	35		$	74				$	31		$	55				$	625		$	444

Average same-property concessions per turn (3)			$	165	$	94			$	122		$	64				$	27		$	60				$	100		$	167				$	120		$	86

Average same-property financial occupancy				95.6%		96.2%				96.2%			97.4%					96.2%			97.1%					95.2%			96.1%					95.8%			96.6%


(1)	Includes four apartment communities in Portland, OR, one community in Houston, TX, and other rental properties including commercial properties. Included in 2007 is $0.5 million for a property legal settlement, offset by the $1.0 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.

See Company's 10-Q for additional disclosures

S-7.1

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, 2007, June 30, 2006 and March 31, 2007
(Dollars in thousands)

				Average Property Rental Rates					Property Revenue					Property Revenue
				June 30,		June 30,			June 30,		June 30,			March 31,		Sequential
		Region	Units	2007		2006		% Change	2007		2006		% Change	2007		% Change

Southern California
	Ventura County		2,844	$	1,394	$	1,317	5.8%	$	11,977	$	11,424	4.8%	$	11,851	1.1%
	Los Angeles County		2,754		1,672		1,568	6.6%		14,497		13,506	7.3%		14,475	0.2%
	Orange County		2,037		1,513		1,426	6.1%		9,318		8,907	4.6%		9,115	2.2%
	San Diego County		2,616		1,051		1,014	3.6%		8,307		7,999	3.9%		8,423	-1.4%
	Santa Barbara County		239		1,702		1,477	15.2%		1,238		1,075	15.2%		1,229	0.7%
	Riverside County		276		809		817	-1.0%		690		681	1.3%		708	-2.5%
			10,766		1,396		1,319	5.8%		46,027		43,592	5.6%		45,801	0.5%

Northern California
	San Francisco MSA		175		1,678		1,516	10.7%		876		806	8.7%		858	2.1%
	Santa Clara County		1,870		1,506		1,344	12.1%		8,584		7,736	11.0%		8,401	2.2%
	Alameda County		200		1,225		1,107	10.7%		740		699	5.9%		734	0.8%
	Contra Costa County		1,070		1,445		1,360	6.3%		4,662		4,419	5.5%		4,378	6.5%
			3,315		1,479		1,344	10.0%		14,862		13,660	8.8%		14,371	3.4%

Seattle Metro			4,452		994		881	12.8%		13,944		12,471	11.8%		13,505	3.2%

Other real estate assets			1,177		742		690	7.5%		2,686		2,550	5.3%		2,639	1.8%


Total Same-Property revenue			19,710	$	1,280	$	1,187	7.9%	$	77,519	$	72,273	7.3%	$	76,316	1.6%

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.

Same-Property Revenue by County - Six months ended June 30, 2007 and 2006
(Dollars in thousands)

				Average Property Rental Rates					Property Revenue
		Region	Units	YTD 2007		YTD 2006		% Change	YTD 2007		YTD 2006		% Change

Southern California
	Ventura County		2,844	$	1,386	$	1,308	6.0%	$	23,828	$	22,726	4.8%
	Los Angeles County		2,754		1,665		1,556	7.0%		28,972		27,014	7.2%
	Orange County		2,037		1,504		1,412	6.5%		18,433		17,616	4.6%
	San Diego County		2,616		1,049		1,008	4.1%		16,730		15,961	4.8%
	Santa Barbara County		239		1,686		1,441	17.0%		2,467		2,088	18.2%
	Riverside County		276		812		809	0.4%		1,398		1,365	2.4%
			10,766		1,390		1,309	6.2%		91,828		86,770	5.8%

Northern California
	San Francisco MSA		175		1,657		1,500	10.5%		1,734		1,598	8.5%
	Santa Clara County		1,870		1,492		1,330	12.2%		16,985		15,176	11.9%
	Alameda County		200		1,213		1,099	10.4%		1,474		1,372	7.4%
	Contra Costa County		1,070		1,436		1,348	6.5%		9,040		8,705	3.8%
			3,315		1,466		1,331	10.1%		29,233		26,851	8.9%

Seattle Metro			4,452		981		868	13.0%		27,449		24,589	11.6%

Other real estate assets			1,177		736		683	7.8%		5,325		5,022	6.0%


Total Same-Property revenue			19,710	$	1,271	$	1,175	8.2%	$	153,835	$	143,232	7.4%

See Company's 10-Q for additional disclosures

S-8.1

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

Development Pipeline - June 30, 2007
(Dollars in millions)


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

Development Projects
	Project Name	Location

	Northwest Gateway	Los Angeles, CA	275	$ 40.1	$ 31.0	$ 71.1	Jan-06	Apr-08		Feb-08	Oct-08
	100 Grand	Oakland, CA	238	20.9	75.3	96.2	Dec-06	Dec-08		Dec-08	May-09
	City Centre	Moorpark, CA	200	6.8	45.0	51.8	Sep-07	Oct-09		Aug-09	Apr-10
	Consolidated - Development Projects		713	67.8	151.3	219.1

Development Projects - Fund II
	Project Name	Location
	Lake Union	Seattle, WA	127	15.7	19.7	35.4	Aug-06	Apr-08		Mar-08	Jul-08
	Studio Gateway	Studio City, CA	149	23.6	37.0	60.6	Jun-07	Jun-09		Mar-09	Aug-09
	Topanga Canyon	Chatsworth, CA	119	10.3	29.1	39.4	Jun-07	May-09		May-09	Sep-09
	Fund II - Development Projects		395	49.6	85.8	135.4
	Total - Development Projects		1,108	117.4	237.1	354.5

Predevelopment Projects

	Project Name	Location
	4th and University (1)	Berkeley, CA	-	-	-	-	Nov-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		1,936	86.9	518.2	605.1

Other Projects (TRS)

	Project Name	Location
	Peregrine Pointe (4)	Issaquah, WA	2	-	-	-	-	-		-	-
	Archer	San Jose, CA	45	-	-	-	Nov-07	Mar-09		Mar-09	Jun-09
	View Pointe	Newcastle, WA	24	-	-	-	Sep-07	Nov-08		Nov-08	Mar-09
			71	7.0	20.4	27.4


	Grand Total - Development Pipeline		3,115	$ 211.3	$ 775.7	$ 987.0

(1)	Properties in contract to be purchased by the Company with non-refundable deposits or option 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 64 of 66 units have been sold as of June 30, 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 - June 30, 2007
(Dollars in thousands)


			Total	Estimated	Estimated				Q2 2007	Units completed
			Incurred	Remaining	Total	Redevelopment	NOI	NOI	Rehab	and available
	Region/Project Name	Units	To Date	Cost	Cost	Start Date	Q2 2007	Q2 2006	Vacancy Loss	for rent

	Approved - Redevelopment Projects
	Woodland/Foothill Commons, Bellevue, WA (1)	596	$ 362	$ 30,139	$ 30,501	Apr-06
	Marina Cove, Santa Clara, CA	292	70	9,788	9,858	Jun-07
		888	432	39,927	40,359
	Active - Redevelopment Projects
	Southern California
	Mira Monte, Mira Mesa, CA (2)	355	5,680	350	6,030	Sep-04	$ 945	$ 822	$ 7	329
	Avondale at Warner Center, Woodland Hills, CA	446	10,198	2,272	12,470	Oct-04	1,372	1,140	40	174
	Pathways, Long Beach, CA	296	2,500	8,221	10,721	Jun-06	889	872	90	27
	Highridge, Rancho Palos Verdes, CA	255	138	15,925	16,063	Jan-07	923	896	6	1
		1,352	18,516	26,768	45,284		4,129	3,730	143	531
	Northern California
	The Montclaire - Phase I - III, Sunnyvale, CA	390	3,801	11,305	15,106	Aug-06	995	994	85	92
	Boulevard (Treetops), Fremont, CA	172	2,570	5,710	8,280	Sep-06	419	367	-	5
	Bridgeport (Summerhill Commons), Newark, CA	184	3,376	1,210	4,586	Oct-06	501	417	-	-
	Wimbledon Woods, Hayward, CA	560	4,060	5,290	9,350	Oct-06	1,251	1,141	-	3
		1,306	13,807	23,515	37,322		3,166	2,919	85	100
	Seattle Metro
	Palisades - Phase I and II, Bellevue, WA (2)	192	6,090	861	6,951	Sep-04	455	259	-	192
	Sammamish View, Bellevue, WA	153	3,536	282	3,818	Dec-05	330	289	79	139
	Bridle Trails, Kirkland, WA (3)	108	4,427	650	5,077	May-05	268	157	-	108
		453	14,053	1,793	15,846		1,053	705	79	439

	Total Active - Redevelopment Projects	3,111	46,376	52,076	98,452		8,348	7,354	307	1,070

	Consolidated - Redevelopment Projects	3,999	46,808	92,003	138,811		8,348	7,354	307	1,070

	Redevelopment Projects - Fund II
	Regency Tower - Phase I - II, Oakland, CA	178	2,324	2,152	4,476	Nov-05	350	253	17	91
	The Renaissance, Los Angeles, CA (4)	168	1,869	3,131	5,000	Oct-06	475	-	86	54
	Fund II - Redevelopment Projects	346	4,193	5,283	9,476		825	253	103	145

	Grand Total - Redevelopment Pipeline	4,345	$ 51,001	$ 97,286	$ 148,287		$ 9,173	$ 7,607	$ 410	1,215

(1)	The community was originally approved as a redevelopment project during 2006 and then the scope of the project was increased and approved in Q2 2007. Operations were not destabilized as of Q2 2007, and therefore the community is classified in Same-Property operations.
(2)	This community was restabilized at the end of the first quarter of 2007, and will be included in Same-Property operations starting the second quarter of 2008.
(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 Q2 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

For the six

Investments - June 30, 2007

Essex

Total Fund

Debt

months ended

(Dollars in thousands)

Book

Original

Interest

Maturity

6/30/2007

Value

Cost

Units

Amount

Type

Rate

Date

NOI

Joint Ventures

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

Alderwood Park, Newark, CA

7,112

Fixed

5.56%

Jun-2015

Carlmont Woods, Belmont, CA

195

13,021

Fixed

4.89%

Dec-2013

Davey Glen, Belmont, CA

6,654

Fixed

6.13%

Aug-2016

Echo Ridge, Snoqualmie, WA

120

13,356

Fixed

5.01%

Sep-2014

Enclave, San Jose, CA

637

21,279

Fixed

7.26%

Jan-2018

Enclave, San Jose, CA

60,000

Variable

4.69%

Dec-2029

Harbor Cove, Foster City, CA

400

35,111

Fixed

4.89%

Dec-2013

Morning Run, Monroe, WA

222

13,806

Fixed

5.10%

Oct-2014

Parcwood, Corona, CA

312

25,564

Fixed

4.89%

Dec-2013

Regency Tower, Oakland, CA

178

11,138

Fixed

5.16%

Mar-2014

Renaissance, Los Angeles, CA

168

23,341

Fixed

6.51%

May-2011

Tower @ 801, Seattle, WA

173

19,464

Fixed

4.91%

Aug-2014

Total - Operating Communities

2,570

249,846

6,121

12,208

Fund II - Development Pipeline (1)

Lake Union, Seattle, WA

127

8,834

Variable

LIBOR+1.50%

Jan-2010

Studio Gateway, Studio City, CA

149

8,359

Variable

LIBOR+1.50%

Apr-2010

Topanga Canyon, Chatsworth, CA

119

146

Variable

LIBOR+1.50%

Jun-2010

Total - Development Communities

395

17,339

Line of credit

Variable

LIBOR+0.875%

Jun-2007

Total - Fund II

58,578

489,257

2,965

267,185

Capitalized costs

720

59,298

Waterstone at Fremont (formerly

known as Mountain Vista) (2)

1,182

Other (3)

9,371

69,851

(1)

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

(2)

Company recorded $0.2 milion in preferred interest payments in Q2 2007, 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 $8.9 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 - June 30, 2007
(Dollars in thousands)


The Company enters into co-investment transactions with third party developers, owners and investors of apartment communities. In accordance with GAAP, 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 June 30, 2007				June 30, 2007
		Investment in	Related	Minority	Down-REIT		Operating
		Real Estate	Debt	Interest	Units (1)	Revenue	Expenses	NOI

Down-REITs:
Anchor Village		$ 11,162	$ 10,750	$ 2,544	117,154	$ 736	$ 297	$ 439
Barkley Apartments		9,406	4,935	2,369	80,302	614	227	387
Brookside Oaks		33,851	14,238	3,974	99,073	673	208	465
Capri at Sunny Hills		16,865	11,599	4,504	185,334	614	152	462
Brentwood Apartments		13,452	9,417	3,951	90,591	611	162	449
Hidden Valley (Parker Ranch)		44,793	33,396	6,089	62,647	1,352	383	969
Highridge Apartments		20,481	44,807	6,036	315,061	1,320	397	923
Montejo Apartments		9,097	5,856	1,596	38,038	467	124	343
Treehouse Apartments		12,010	7,885	3,299	75,700	614	163	451
Valley Park Apartments		16,228	9,988	1,461	60,892	698	164	534
Villa Angelina Apartments		21,021	13,506	2,886	59,839	990	240	750

		208,366	166,377	38,709	1,184,631	8,689	2,517	6,172

Other Co-investments:
Derian Office Building (2)		16,515	-	-	n/a	460	121	339
Hillsdale Garden Apartments (3)		116,568	-	22,216	n/a	2,781	1,410	1,371
Mirabella (4)		27,155	-	-	n/a	1,265	303	962

(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)	Essex has mortgage loans to the owners of this property with an aggregate principal balance in excess of the book value of the property as of June 30, 2007.
(3)	During the second quarter of 2007, the Company entered into a joint venture partnership with a third-party, and the Company contributed the improvements to the property for a 81.5% interest and the joint venture partner contributed the title to the land for an 18.5% interest in the partnership.
(4)	The Company has an agreement to distribute to the general contractor of Mirabella, 20% of the property’s cash flow after the Company receives a 9% preferred return on its investment from operating cash flow and a 12% preferred return on its investment from capital transactions cash flow. To date no distribution has been made to the general contractor under this agreement.

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 - June 30, 2007
(Dollars in thousands)


Income from Discontinued Operations

For the three and six months ended June 30, 2007, the Company sold condominium units at Peregrine Point, and during the three months ended March 31, 2007, the Company sold the City Heights property which was consolidated in accordance with FIN 46R. For the three months ended June 30, 2006, the Company recorded a gain, a promote interest and subordination fees from the sale of the Vista Pointe joint venture property, and for the three months ended March 31, 2006 the Company sold the Vista Capri East, Casa Tierra apartment communities, and the Diamond Valley Recreational RV park.

			Three Months Ended				Six Months Ended
			June 30,				June 30,
			2007		2006	$	2007	$	2006
	Rental revenues	$	-	$	2,939		1,355		5,968
	Interest and other income		-		6		290		6
	Revenues		-		2,945		1,645		5,974

	Property operating expenses		-		(1,083)		(535)		(2,282)
	Interest expense		-		(579)		(416)		(1,158)
	Depreciation and amortization		-		(768)		(41)		(1,539)
	Minority interests		-		(222)		(57)		(313)
	Expenses		-		(2,652)		(1,049)		(5,292)

	Gain on sale (1)		303		8,800		916		11,862
	Gain on sale - City Heights		-		-		78,306		-
	Equity income co-investments		-		119		-		238
	Promote interest and subordination fees		-		8,221		10,290		8,221
	Minority interests - OP units		(18)		(1,539)		(2,156)		(1,825)
	Minority interests - City Heights		-		-		(64,624)		-
	Net gain on sale of real estate		285		15,601		22,732		18,496
						$		$
	Income from discontinued operations	$	285	$	15,894		23,328		19,178

Common Stock Equivalents

			Q2 2007		Actual		YTD 2007
			Weighted Avg.		As of 6/30/07		Weighted Avg.
	Common Shares		24,493,816		25,152,364		23,966,049
	Stock Options		235,013		235,013		269,168
	Exchangeable Bonds		375,192		244,524		452,788
	Weighted Avg. Shares Diluted - EPS		25,104,021		25,631,901		24,688,005
	Vested Series Z Incentive Units		213,205		213,205		213,046
	Operating Limited Partnership Units		2,275,750		2,273,992		2,291,412
	Weighted Avg. Shares Diluted - FFO		27,592,976		28,119,098		27,192,463

(1) For 2007, amount includes gain on sale of Peregrine Point condominum units. The gain on sale and related minority interest recorded in Q1 2007 for City Heights is presented separately.

See Company's 10-Q for additional disclosures

S-13

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