Document_and_Entity_Informatio
Document and Entity Information | 3 Months Ended | |
Mar. 31, 2015 | 5-May-15 | |
Entity Information [Line Items] | ||
Entity Registrant Name | ESSEX PROPERTY TRUST INC | |
Entity Central Index Key | 920522 | |
Current Fiscal Year End Date | -19 | |
Entity Voluntary Filers | No | |
Entity Current Reporting Status | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 65,352,146 | |
Document Fiscal Year Focus | 2015 | |
Document Fiscal Period Focus | Q1 | |
Document Type | 10-Q | |
Amendment Flag | FALSE | |
Document Period End Date | 31-Mar-15 | |
ESSEX PORTFOLIO LP [Member] | ||
Entity Information [Line Items] | ||
Entity Registrant Name | ESSEX PORTFOLIO LP | |
Current Fiscal Year End Date | -19 | |
Entity Voluntary Filers | No | |
Entity Current Reporting Status | Yes | |
Entity Filer Category | Non-accelerated Filer |
Condensed_Consolidated_Balance
Condensed Consolidated Balance Sheets (Unaudited) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
Rental properties: | ||
Land and land improvements | $2,505,257 | $2,424,930 |
Buildings and improvements | 9,332,472 | 8,819,751 |
Total rental properties | 11,837,729 | 11,244,681 |
Less accumulated depreciation | -1,658,692 | -1,564,806 |
Net real estate | 10,179,037 | 9,679,875 |
Real estate under development | 339,386 | 429,096 |
Co-investments | 1,057,298 | 1,042,423 |
Real estate held for sale, net | 0 | 56,300 |
Total real estate | 11,575,721 | 11,207,694 |
Cash and cash equivalents-unrestricted | 219,200 | 25,610 |
Cash and cash equivalents-restricted | 36,030 | 70,139 |
Marketable securities and other investments | 128,502 | 117,240 |
Notes and other receivables | 28,954 | 24,923 |
Prepaid expenses and other assets | 25,836 | 33,378 |
Acquired in place lease value | 37,967 | 47,748 |
Deferred charges, net | 32,949 | 29,439 |
Total assets | 12,085,159 | 11,556,171 |
Liabilities and Equity | ||
Mortgage notes payable | 2,322,837 | 2,246,255 |
Unsecured debt | 3,113,216 | 2,617,482 |
Lines of credit | 0 | 246,391 |
Accounts payable and accrued liabilities | 162,100 | 135,162 |
Construction payable | 28,753 | 30,892 |
Dividends payable | 98,874 | 88,221 |
Other liabilities | 33,607 | 32,444 |
Total liabilities | 5,759,387 | 5,396,847 |
Commitments and contingencies | ||
Redeemable noncontrolling interest | 24,916 | 23,256 |
Equity: | ||
Common stock; $0.0001 par value, 656,020,000 shares authorized; 64,620,378 and 63,682,646 shares issued and outstanding, respectively | 6 | 6 |
Cumulative redeemable 7.125% Series H preferred stock at liquidation value | 73,750 | 73,750 |
Additional paid-in capital | 6,848,255 | 6,651,165 |
Distributions in excess of accumulated earnings | -684,436 | -650,797 |
Accumulated other comprehensive loss, net | -50,868 | -51,452 |
Total stockholders' equity | 6,186,707 | 6,022,672 |
Noncontrolling interest | 114,149 | 113,396 |
Total equity | 6,300,856 | 6,136,068 |
Total liabilities and equity | 12,085,159 | 11,556,171 |
Essex Portfolio, L.P. [Member] | ||
Rental properties: | ||
Land and land improvements | 2,505,257 | 2,424,930 |
Buildings and improvements | 9,332,472 | 8,819,751 |
Total rental properties | 11,837,729 | 11,244,681 |
Less accumulated depreciation | -1,658,692 | -1,564,806 |
Net real estate | 10,179,037 | 9,679,875 |
Real estate under development | 339,386 | 429,096 |
Co-investments | 1,057,298 | 1,042,423 |
Real estate held for sale, net | 0 | 56,300 |
Total real estate | 11,575,721 | 11,207,694 |
Cash and cash equivalents-unrestricted | 219,200 | 25,610 |
Cash and cash equivalents-restricted | 36,030 | 70,139 |
Marketable securities and other investments | 128,502 | 117,240 |
Notes and other receivables | 28,954 | 24,923 |
Prepaid expenses and other assets | 25,836 | 33,378 |
Acquired in place lease value | 37,967 | 47,748 |
Deferred charges, net | 32,949 | 29,439 |
Total assets | 12,085,159 | 11,556,171 |
Liabilities and Equity | ||
Mortgage notes payable | 2,322,837 | 2,246,255 |
Unsecured debt | 3,113,216 | 2,617,482 |
Lines of credit | 0 | 246,391 |
Accounts payable and accrued liabilities | 162,100 | 135,162 |
Construction payable | 28,753 | 30,892 |
Dividends payable | 98,874 | 88,221 |
Other liabilities | 33,607 | 32,444 |
Total liabilities | 5,759,387 | 5,396,847 |
Commitments and contingencies | ||
Redeemable noncontrolling interest | 24,916 | 23,256 |
Equity: | ||
General Partner | 6,237,575 | 6,074,124 |
Limited Partners, Common equity | 47,803 | 48,665 |
Accumulated other comprehensive loss, net | -48,757 | -49,356 |
Total partners' capital | 6,236,621 | 6,073,433 |
Noncontrolling interest | 64,235 | 62,635 |
Total capital | 6,300,856 | 6,136,068 |
Total liabilities and equity | 12,085,159 | 11,556,171 |
Essex Portfolio, L.P. [Member] | General Partner [Member] | Common Capital [Member] | ||
Equity: | ||
General Partner | 6,166,366 | 6,002,915 |
Total capital | 6,166,366 | 6,002,915 |
Essex Portfolio, L.P. [Member] | General Partner [Member] | Preferred Capital [Member] | ||
Equity: | ||
General Partner | 71,209 | 71,209 |
Total capital | $71,209 | $71,209 |
Condensed_Consolidated_Balance1
Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) (USD $) | 3 Months Ended | 12 Months Ended |
In Thousands, except Share data, unless otherwise specified | Mar. 31, 2015 | Dec. 31, 2014 |
Common stock, par value (in dollars per share) | 0.0001 | 0.0001 |
Common stock, shares authorized (in shares) | 656,020,000 | 656,020,000 |
Common stock, shares issued (in shares) | 64,620,378 | 63,682,646 |
Common stock, shares outstanding (in shares) | 64,620,378 | 63,682,646 |
Series H Preferred Interest [Member] | ||
Preferred stock, stated interest percentage | 7.13% | 7.13% |
Essex Portfolio, L.P. [Member] | Series H Preferred Interest [Member] | ||
Preferred interest, liquidation value | 73,750 | 73,750 |
Preferred stock, stated interest percentage | 7.13% | 7.13% |
Essex Portfolio, L.P. [Member] | General Partner [Member] | ||
Common stock, shares issued (in shares) | 64,620,378 | 63,682,646 |
Common stock, shares outstanding (in shares) | 64,620,378 | 63,682,646 |
Essex Portfolio, L.P. [Member] | Limited Partners [Member] | ||
Common stock, shares issued (in shares) | 2,182,676 | 2,168,158 |
Common stock, shares outstanding (in shares) | 2,182,676 | 2,168,158 |
Condensed_Consolidated_Stateme
Condensed Consolidated Statements of Income and Comprehensive Income (Unaudited) (USD $) | 3 Months Ended | |
In Thousands, except Share data, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Revenues: | ||
Rental and other property | $280,229 | $159,349 |
Management and other fees from affiliates | 2,644 | 1,660 |
Total revenues | 282,873 | 161,009 |
Expenses: | ||
Property operating, excluding real estate taxes | 55,618 | 36,967 |
Real estate taxes | 31,553 | 15,339 |
Depreciation and amortization | 106,907 | 50,312 |
General and administrative | 10,545 | 7,583 |
Merger and integration expenses | 2,388 | 16,059 |
Acquisition costs | 547 | 188 |
Total expenses | 207,558 | 126,448 |
Earnings from operations | 75,315 | 34,561 |
Interest expense | -47,546 | -29,041 |
Interest and other income | 4,199 | 2,879 |
Equity income in co-investments | 4,311 | 10,526 |
Gains on sale of real estate and land | 7,112 | 7,481 |
Gain on remeasurement of co-investment | 21,362 | 0 |
Net income | 64,753 | 26,406 |
Net income attributable to noncontrolling interest | -4,076 | -3,126 |
Net income attributable to controlling interest | 60,677 | 23,280 |
Dividends to preferred stockholders | -1,314 | -1,368 |
Net income available to common stockholders | 59,363 | 21,912 |
Comprehensive income | 65,352 | 30,729 |
Comprehensive income attributable to noncontrolling interest | -4,091 | -3,372 |
Comprehensive income attributable to controlling interest | 61,261 | 27,357 |
Basic: | ||
Net income available to common stockholders (in dollars per share) | $0.92 | $0.58 |
Weighted average number of shares outstanding during the period (in shares) | 64,185,455 | 37,685,073 |
Diluted: | ||
Net income available to common stockholders (in dollars per share) | $0.92 | $0.58 |
Weighted average number of shares outstanding during the period (in shares) | 64,394,680 | 37,931,454 |
Dividends per common share (in dollars per share) | $1.44 | $1.21 |
Essex Portfolio, L.P. [Member] | ||
Revenues: | ||
Rental and other property | 280,229 | 159,349 |
Management and other fees from affiliates | 2,644 | 1,660 |
Total revenues | 282,873 | 161,009 |
Expenses: | ||
Property operating, excluding real estate taxes | 55,618 | 36,967 |
Real estate taxes | 31,553 | 15,339 |
Depreciation and amortization | 106,907 | 50,312 |
General and administrative | 10,545 | 7,583 |
Merger and integration expenses | 2,388 | 16,059 |
Acquisition costs | 547 | 188 |
Total expenses | 207,558 | 126,448 |
Earnings from operations | 75,315 | 34,561 |
Interest expense | -47,546 | -29,041 |
Interest and other income | 4,199 | 2,879 |
Equity income in co-investments | 4,311 | 10,526 |
Gains on sale of real estate and land | 7,112 | 7,481 |
Gain on remeasurement of co-investment | 21,362 | 0 |
Net income | 64,753 | 26,406 |
Net income attributable to noncontrolling interest | -1,965 | -1,709 |
Net income attributable to controlling interest | 62,788 | 24,697 |
Dividends to preferred stockholders | -1,314 | -1,368 |
Net income available to common stockholders | 61,474 | 23,329 |
Comprehensive income | 65,352 | 30,729 |
Comprehensive income attributable to noncontrolling interest | -1,965 | -1,709 |
Comprehensive income attributable to controlling interest | $63,387 | $29,020 |
Basic: | ||
Net income available to common stockholders (in dollars per share) | $0.93 | $0.58 |
Weighted average number of shares outstanding during the period (in shares) | 66,369,769 | 39,957,252 |
Diluted: | ||
Net income available to common stockholders (in dollars per share) | $0.92 | $0.58 |
Weighted average number of shares outstanding during the period (in shares) | 66,578,994 | 40,203,633 |
Dividends per common share (in dollars per share) | $1.44 | $1.21 |
Condensed_Consolidated_Stateme1
Condensed Consolidated Statement of Equity (Unaudited) (USD $) | Total | Series H Preferred Stock [Member] | Common Stock [Member] | Additional Paid-in Capital [Member] | Distributions in Excess of Accumulated Earnings [Member] | Accumulated Other Comprehensive Income (Loss) [Member] | Noncontrolling Interest [Member] |
In Thousands, except Share data, unless otherwise specified | |||||||
Balances at Dec. 31, 2014 | $6,136,068 | $73,750 | $6 | $6,651,165 | ($650,797) | ($51,452) | $113,396 |
Balances (in shares) at Dec. 31, 2014 | 2,950,000 | 63,683,000 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income | 64,753 | 60,677 | 4,076 | ||||
Change in fair value of derivatives and amortization of swap settlements | -1,335 | -1,289 | -46 | ||||
Change in fair value of marketable securities | 1,934 | 1,873 | 61 | ||||
Issuance of common stock under: | |||||||
Stock option and restricted stock plans | 15,613 | 15,613 | |||||
Stock option and restricted stock plans (in shares) | 115,000 | ||||||
Sale of common stock | 184,158 | 184,158 | |||||
Sale of common stock (in shares) | 822,000 | ||||||
Equity based compensation costs | 1,370 | 613 | 757 | ||||
Reclassification Of Noncontrolling Interest To Redeemable Noncontrolling Interest | -144 | 0 | -144 | ||||
Changes in the redemption value of redeemable noncontrolling interest | -1,517 | -1,517 | 0 | ||||
Distributions to noncontrolling interest | -3,574 | 0 | -3,574 | ||||
Redemptions of noncontrolling interest | -2,154 | -1,777 | -377 | ||||
Common and preferred stock dividends | -94,316 | -94,316 | |||||
Balances at Mar. 31, 2015 | $6,300,856 | $73,750 | $6 | $6,848,255 | ($684,436) | ($50,868) | $114,149 |
Balances (in shares) at Mar. 31, 2015 | 2,950,000 | 64,620,000 |
Condensed_Consolidated_Stateme2
Condensed Consolidated Statement of Capital (Unaudited) (USD $) | 3 Months Ended |
In Thousands, except Share data, unless otherwise specified | Mar. 31, 2015 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |
Net income | $64,753 |
Change in fair value of derivatives and amortization of swap settlements | -1,335 |
Change in fair value of marketable securities | 1,934 |
Issuance of common stock under: | |
Sale of common stock by general partner | 184,158 |
Reclassification Of Noncontrolling Interest To Redeemable Noncontrolling Interest | -144 |
Changes in the redemption value of redeemable noncontrolling interest | -1,517 |
Distributions to noncontrolling interest | -3,574 |
Redemptions | -2,154 |
Essex Portfolio, L.P. [Member] | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |
Balances | 6,136,068 |
Net income | 64,753 |
Change in fair value of derivatives and amortization of swap settlements | -1,335 |
Change in fair value of marketable securities | 1,934 |
Issuance of common stock under: | |
General partner's stock based compensation | 16,370 |
Sale of common stock by general partner | 184,158 |
Equity based compensation costs | 613 |
Reclassification Of Noncontrolling Interest To Redeemable Noncontrolling Interest | -144 |
Changes in the redemption value of redeemable noncontrolling interest | -1,517 |
Distributions to noncontrolling interest | -221 |
Redemptions | -2,154 |
Distributions declared | -97,669 |
Balances | 6,300,856 |
Essex Portfolio, L.P. [Member] | Accumulated Other Comprehensive (Loss) Income [Member] | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |
Balances | -49,356 |
Change in fair value of derivatives and amortization of swap settlements | -1,335 |
Issuance of common stock under: | |
Balances | -48,757 |
Essex Portfolio, L.P. [Member] | Noncontrolling Interest [Member] | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |
Balances | 62,635 |
Net income | 1,965 |
Issuance of common stock under: | |
Reclassification Of Noncontrolling Interest To Redeemable Noncontrolling Interest | -144 |
Distributions to noncontrolling interest | -221 |
Balances | 64,235 |
Essex Portfolio, L.P. [Member] | General Partner [Member] | Common Equity [Member] | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |
Balances | 6,002,915 |
Balances (in shares) | 63,683,000 |
Net income | 59,363 |
Issuance of common stock under: | |
General partner's stock based compensation | 15,613 |
General partner's stock based compensation (in shares) | 115,000 |
Sale of common stock by general partner | 184,158 |
Sale of common stock by general partner (in shares) | 822,000 |
Equity based compensation costs | 613 |
Changes in the redemption value of redeemable noncontrolling interest | -1,517 |
Redemptions | -1,777 |
Distributions declared | -93,002 |
Balances | 6,166,366 |
Balances (in shares) | 64,620,000 |
Essex Portfolio, L.P. [Member] | General Partner [Member] | Preferred Equity [Member] | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |
Balances | 71,209 |
Net income | 1,314 |
Issuance of common stock under: | |
Distributions declared | -1,314 |
Balances | 71,209 |
Essex Portfolio, L.P. [Member] | Limited Partner [Member] | Common Equity [Member] | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |
Balances | 48,665 |
Balances (in shares) | 2,168,000 |
Net income | 2,111 |
Issuance of common stock under: | |
General partner's stock based compensation | 757 |
General partner's stock based compensation (in shares) | 17,000 |
Redemptions | -377 |
Redemptions (in shares) | -2,000 |
Distributions declared | -3,353 |
Balances | $47,803 |
Balances (in shares) | 2,183,000 |
Condensed_Consolidated_Stateme3
Condensed Consolidated Statements of Cash Flows (Unaudited) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Cash flows from operating activities: | ||
Net income | $64,753 | $26,406 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 106,907 | 50,312 |
Amortization of discount on marketable securities | -2,856 | -1,938 |
Amortization of (premium) discount and debt financing costs, net | -6,530 | 2,986 |
Gain on sale of marketable securities | 0 | -427 |
Company's share of gain on the sales of co-investment | -469 | -3,211 |
Earnings from co-investments | -3,842 | -7,315 |
Company's/Operating Partnership's share of gain on the sales of co-investment | 6,055 | 9,569 |
Gains on the sales of real estate and land | -7,112 | -7,481 |
Non cash merger and integration expenses | 0 | 3,750 |
Equity-based compensation | 1,370 | 1,233 |
Gain on remeasurement of co-investment | -21,362 | 0 |
Changes in operating assets and liabilities: | ||
Prepaid expense, receivables and other assets | 3,548 | 2,787 |
Accounts payable and accrued liabilities | 21,741 | 15,131 |
Other liabilities | 346 | 92 |
Net cash provided by operating activities | 162,549 | 91,894 |
Additions to real estate: | ||
Acquisitions of real estate | -199,190 | -33,825 |
Redevelopment | -19,140 | -10,281 |
Acquisitions of and additions to real estate under development | -90,925 | -11,919 |
Capital expenditures on rental properties | -16,196 | -10,697 |
Acquisition of membership interest in co-investment | -41,513 | 0 |
Proceeds from insurance for property losses | 4,589 | 0 |
Proceeds from dispositions of real estate | 74,485 | 14,123 |
Proceeds from dispositions of co-investments | 11,072 | 0 |
Contributions to co-investments | -48,650 | -39,679 |
Changes in restricted cash and refundable deposits | 45,145 | 2,512 |
Purchases of marketable securities | -7,250 | -10,340 |
Sales and maturities of marketable securities | 717 | 4,016 |
Collections of notes and other receivables | 0 | 35,500 |
Net cash used in investing activities | -286,856 | -60,590 |
Cash flows from financing activities: | ||
Borrowings under debt agreements | 756,562 | 233,780 |
Repayment of debt | -536,830 | -312,585 |
Additions to deferred charges | -4,456 | -9,294 |
Net proceeds from issuance of common stock | 174,592 | 157,596 |
Equity related issuance cost | 0 | -92 |
Net proceeds from stock options exercises | 15,613 | 1,176 |
Distributions to noncontrolling interest | -3,574 | -3,969 |
Redemption of noncontrolling interest | -2,154 | -101 |
Common and preferred stock dividends paid | -83,663 | -96,388 |
Net cash provided by (used in) financing activities | 316,090 | -29,877 |
Cash acquired in consolidation of co-investment | 1,807 | 0 |
Net increase in cash and cash equivalents | 193,590 | 1,427 |
Cash and cash equivalents at beginning of period | 25,610 | 18,491 |
Cash and cash equivalents at end of period | 219,200 | 19,918 |
Supplemental disclosure of cash flow information: | ||
Cash paid for interest, net of $4.3 million and $3.1 million capitalized in 2015 and 2014, respectively | 50,343 | 26,447 |
Supplemental disclosure of noncash investing and financing activities: | ||
Issuance of Operating Partnership units for contributed properties | 0 | 1,419,816 |
Transfer from real estate under development to rental properties | 162,345 | 3,070 |
Transfer from real estate under development to co-investments | 1,562 | 3,125 |
Change in accrual of dividends | 10,653 | 0 |
Change in fair value of marketable securities | 1,934 | 1,575 |
Change in construction payable | 2,139 | 376 |
Reclassifications of and changes in redeemable noncontrolling interest from additional paid in capital and noncontrolling interest | 1,660 | 0 |
Debt assumed in connection with acquisition of co-investment | 114,435 | 0 |
Receivable for sales of common stock | 9,566 | 440 |
Essex Portfolio, L.P. [Member] | ||
Cash flows from operating activities: | ||
Net income | 64,753 | 26,406 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 106,907 | 50,312 |
Amortization of discount on marketable securities | -2,856 | -1,938 |
Amortization of (premium) discount and debt financing costs, net | -6,530 | 2,986 |
Gain on sale of marketable securities | 0 | -427 |
Company's share of gain on the sales of co-investment | -469 | -3,211 |
Earnings from co-investments | -3,842 | -7,315 |
Company's/Operating Partnership's share of gain on the sales of co-investment | 6,055 | 9,569 |
Gains on the sales of real estate and land | -7,112 | -7,481 |
Non cash merger and integration expenses | 0 | 3,750 |
Equity-based compensation | 1,370 | 1,233 |
Gain on remeasurement of co-investment | -21,362 | 0 |
Changes in operating assets and liabilities: | ||
Prepaid expense, receivables and other assets | 3,548 | 2,787 |
Accounts payable and accrued liabilities | 21,741 | 15,131 |
Other liabilities | 346 | 92 |
Net cash provided by operating activities | 162,549 | 91,894 |
Additions to real estate: | ||
Acquisitions of real estate | -199,190 | -33,825 |
Redevelopment | -19,140 | -10,281 |
Acquisitions of and additions to real estate under development | -90,925 | -11,919 |
Capital expenditures on rental properties | -16,196 | -10,697 |
Acquisition of membership interest in co-investment | -41,513 | 0 |
Proceeds from insurance for property losses | 4,589 | 0 |
Proceeds from dispositions of real estate | 74,485 | 14,123 |
Proceeds from dispositions of co-investments | 11,072 | 0 |
Contributions to co-investments | -48,650 | -39,679 |
Changes in restricted cash and refundable deposits | 45,145 | 2,512 |
Purchases of marketable securities | -7,250 | -10,340 |
Sales and maturities of marketable securities | 717 | 4,016 |
Collections of notes and other receivables | 0 | 35,500 |
Net cash used in investing activities | -286,856 | -60,590 |
Cash flows from financing activities: | ||
Borrowings under debt agreements | 756,562 | 233,780 |
Repayment of debt | -536,830 | -312,585 |
Additions to deferred charges | -4,456 | -9,294 |
Net proceeds from issuance of common stock | 174,592 | 157,596 |
Equity related issuance cost | 0 | -92 |
Net proceeds from stock options exercises | 15,613 | 1,176 |
Distributions to noncontrolling interest | -221 | -1,335 |
Redemption of noncontrolling interest | -2,154 | -101 |
Common and preferred stock dividends paid | -87,016 | -99,022 |
Net cash provided by (used in) financing activities | 316,090 | -29,877 |
Cash acquired in consolidation of co-investment | 1,807 | 0 |
Net increase in cash and cash equivalents | 193,590 | 1,427 |
Cash and cash equivalents at beginning of period | 25,610 | 18,491 |
Cash and cash equivalents at end of period | 219,200 | 19,918 |
Supplemental disclosure of cash flow information: | ||
Cash paid for interest, net of $4.3 million and $3.1 million capitalized in 2015 and 2014, respectively | 50,343 | 26,447 |
Supplemental disclosure of noncash investing and financing activities: | ||
Issuance of Operating Partnership units for contributed properties | 0 | 1,419,816 |
Transfer from real estate under development to rental properties | 162,345 | 3,070 |
Transfer from real estate under development to co-investments | 1,562 | 3,125 |
Change in accrual of dividends | 10,653 | 0 |
Change in fair value of marketable securities | 1,934 | 1,575 |
Change in construction payable | 2,139 | 376 |
Reclassifications of and changes in redeemable noncontrolling interest from additional paid in capital and noncontrolling interest | 1,660 | 0 |
Debt assumed in connection with acquisition of co-investment | 114,435 | 0 |
Receivable for sales of common stock | $9,566 | $440 |
Condensed_Consolidated_Stateme4
Condensed Consolidated Statements of Cash Flows (Unaudited) (Parenthetical) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Supplemental disclosure of cash flow information: | ||
Cash paid for interest, capitalized | $4.30 | $3.10 |
Essex Portfolio, L.P. [Member] | ||
Supplemental disclosure of cash flow information: | ||
Cash paid for interest, capitalized | $4.30 | $3.10 |
Organization_and_Basis_of_Pres
Organization and Basis of Presentation | 3 Months Ended | |||||||||||
Mar. 31, 2015 | ||||||||||||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||||||||||||
Organization and Basis of Presentation | Organization and Basis of Presentation | |||||||||||
The accompanying unaudited condensed consolidated financial statements present the accounts of Essex Property Trust, Inc. (“Essex” or the “Company”), which include the accounts of the Company and Essex Portfolio, L.P. and subsidiaries (the “Operating Partnership,” which holds the operating assets of the Company), prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) for interim financial information and in accordance with the instructions to Form 10-Q. In the opinion of management, all adjustments necessary for a fair presentation of the financial position, results of operations and cash flows for the periods presented have been included and are normal and recurring in nature. These unaudited condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements included in the Company's annual report on Form 10-K for the year ended December 31, 2014. | ||||||||||||
All significant intercompany balances and transactions have been eliminated in the condensed consolidated financial statements. Certain reclassifications have been made to conform to the current year’s presentation. Such reclassification had no effect on previously reported net income. | ||||||||||||
The unaudited condensed consolidated financial statements for the three months ended March 31, 2015 include the accounts of the Company and the Operating Partnership. Essex is the sole general partner in the Operating Partnership, with a 96.7% general partnership interest as of March 31, 2015. Total Operating Partnership limited partnership units outstanding were 2,182,676 and 2,168,158 as of March 31, 2015 and December 31, 2014, respectively, and the redemption value of the units, based on the closing price of the Company’s common stock totaled $501.8 million and $447.9 million, as of March 31, 2015 and December 31, 2014, respectively. | ||||||||||||
As of March 31, 2015, the Company owned or had ownership interests in 240 apartment communities, aggregating 57,203 units, excluding the Company’s ownership in preferred interest co-investments, (collectively, the “Communities”, and individually, a “Community”), four commercial buildings and twelve active developments (collectively, the “Portfolio”). The Communities are located in Southern California (Los Angeles, Orange, Riverside, San Diego, Santa Barbara, and Ventura counties), Northern California (the San Francisco Bay Area) and the Seattle metropolitan areas. | ||||||||||||
Marketable Securities | ||||||||||||
The Company reports its available for sale securities at fair value, based on quoted market prices (Level 2 for the unsecured bonds and Level 1 for the common stock and investment funds, as defined by the Financial Accounting Standards Board (“FASB”) standard for fair value measurements), and any unrealized gain or loss is recorded as other comprehensive income (loss). Realized gains and losses, interest and dividend income, and amortization of purchase discounts are included in interest and other income on the condensed consolidated statements of income and comprehensive income. | ||||||||||||
As of March 31, 2015 and December 31, 2014, marketable securities consisted primarily of investment-grade unsecured bonds, common stock, investments in mortgage backed securities and investment funds that invest in US treasury or agency securities. As of March 31, 2015 and December 31, 2014, the Company classified its investments in mortgage backed securities, which mature through November 2019 and September 2020, as held to maturity, and accordingly, these securities are stated at their amortized cost. As of March 31, 2015 and December 31, 2014, marketable securities consist of the following ($ in thousands): | ||||||||||||
March 31, 2015 | ||||||||||||
Amortized | Gross | Carrying Value | ||||||||||
Cost | Unrealized | |||||||||||
Gain | ||||||||||||
Available for sale: | ||||||||||||
Investment-grade unsecured bonds | $ | 8,762 | $ | 176 | $ | 8,938 | ||||||
Investment funds - US treasuries | 5,019 | 7 | 5,026 | |||||||||
Common stock and stock funds | 31,753 | 6,975 | 38,728 | |||||||||
Held to maturity: | ||||||||||||
Mortgage backed securities | 70,810 | — | 70,810 | |||||||||
Total - Marketable securities | $ | 116,344 | $ | 7,158 | $ | 123,502 | ||||||
Other investments (1) | 5,000 | — | 5,000 | |||||||||
Total - Marketable securities and other investments | $ | 121,344 | $ | 7,158 | $ | 128,502 | ||||||
December 31, 2014 | ||||||||||||
Amortized | Gross | Carrying Value | ||||||||||
Cost | Unrealized | |||||||||||
Gain | ||||||||||||
Available for sale: | ||||||||||||
Investment-grade unsecured bonds | $ | 9,435 | $ | 145 | $ | 9,580 | ||||||
Investment funds - US treasuries | 3,769 | 3 | 3,772 | |||||||||
Common stock and stock funds | 25,755 | 5,137 | 30,892 | |||||||||
Held to maturity: | ||||||||||||
Mortgage backed securities | 67,996 | — | 67,996 | |||||||||
Total - marketable securities | $ | 106,955 | $ | 5,285 | $ | 112,240 | ||||||
Other investments (1) | 5,000 | — | 5,000 | |||||||||
Total - Marketable securities and other investments | $ | 111,955 | $ | 5,285 | $ | 117,240 | ||||||
(1) Limited partnership interests | ||||||||||||
The Company uses the specific identification method to determine the cost basis of a security sold and to reclassify amounts from accumulated other comprehensive income for securities sold. For the three months ended March 31, 2015 and 2014, the proceeds from sales of available for sale securities totaled $0.7 million and $4.0 million, respectively, which resulted in no realized gains or losses and gains of $0.4 million, respectively. | ||||||||||||
Variable Interest Entities | ||||||||||||
The Company consolidates 19 DownREIT limited partnerships (comprising twelve communities) since the Company is the primary beneficiary of these variable interest entities (“VIEs”). Total DownREIT units outstanding were 965,289 and 974,790 as of March 31, 2015 and December 31, 2014 respectively, and the redemption value of the units, based on the closing price of the Company’s common stock totaled $221.9 million and $201.4 million, as of March 31, 2015 and December 31, 2014, respectively. The consolidated total assets and liabilities related to these VIEs, net of intercompany eliminations, were approximately $235.6 million and $209.3 million, respectively, as of March 31, 2015 and $235.1 million and $209.1 million, respectively, as of December 31, 2014. Interest holders in VIEs consolidated by the Company are allocated income equal to the cash distributions made to those interest holders. The remaining results of operations are allocated to the Company. As of March 31, 2015 and December 31, 2014, the Company did not have any other VIEs of which it was deemed to be the primary beneficiary. | ||||||||||||
Equity Based Compensation | ||||||||||||
The Company accounts for equity based compensation using the fair value method of accounting. The estimated fair value of stock options granted by the Company is being amortized over the vesting period of the stock options. The estimated grant date fair values of the long term incentive plan units (discussed in Note 13, “Equity Based Compensation Plans,” in the Company’s Form 10-K for the year ended December 31, 2014) are being amortized over the expected service periods. | ||||||||||||
Stock-based compensation expense for options and restricted stock totaled $0.6 million for each of the three months ended March 31, 2015 and 2014. Stock options exercised during the three months ended March 31, 2015 and 2014 were 114,833 and 11,242, respectively and the intrinsic value of the stock options exercised during these periods totaled $10.3 million and $0.6 million, respectively. As of March 31, 2015, the intrinsic value of the stock options outstanding and fully vested totaled $27.2 million. As of March 31, 2015, total unrecognized compensation cost related to unvested share-based compensation granted under the stock option and restricted stock plans totaled $6.4 million. The cost is expected to be recognized over a weighted-average period of 1 to 5 years for the stock option plans and is expected to be recognized straight-line over a period of 1 to 7 years for the restricted stock awards. | ||||||||||||
Stock-based compensation expense for Z-1 and Long-Term Incentive Plan ("LTIP") Units totaled $0.8 million and $0.6 million for the three months ended March 31, 2015 and 2014, respectively. The intrinsic value of the vested and unvested Z-1 and LTIP Units totaled $59.9 million as of March 31, 2015. Total unrecognized compensation cost related to Z-1 Units and LTIP Units subject to future vesting totaled $10.2 million as of March 31, 2015. On a weighted average basis, the unamortized cost for the Z-1 and LTIP Units is expected to be recognized over the next 10.3 years and 4.0 years, respectively. | ||||||||||||
Fair Value of Financial Instruments | ||||||||||||
Management believes that the carrying amounts of outstanding lines of credit, and notes and other receivables approximate fair value as of March 31, 2015 and December 31, 2014, because interest rates, yields and other terms for these instruments are consistent with yields and other terms currently available for similar instruments. Management has estimated that the fair value of the Company’s $4.8 billion of fixed rate debt, including unsecured bonds, at March 31, 2015 is approximately $5.1 billion and the Company’s variable rate debt, excluding borrowings under the lines of credit, at March 31, 2015 approximates its fair value based on the terms of existing mortgage notes payable, unsecured bonds and variable rate demand notes compared to those available in the marketplace. Management believes that the carrying amounts of cash and cash equivalents, restricted cash, accounts payable and accrued liabilities, construction payables, other liabilities and dividends payable approximate fair value as of March 31, 2015 due to the short-term maturity of these instruments. Marketable securities, except mortgage backed securities that are held to maturity, and derivatives are carried at fair value as of March 31, 2015. | ||||||||||||
At March 31, 2015, the Company’s investments in mortgage backed securities had a carrying value of $70.8 million and the Company estimated the fair value to be approximately $99.0 million. At December 31, 2014, the Company’s investments in mortgage backed securities had a carrying value of $68.0 million and the Company estimated the fair value to be approximately $96.0 million. The Company determines the fair value of the mortgage backed securities based on unobservable inputs (level 3 of the fair value hierarchy) considering the assumptions that market participants would make in valuing these securities. Assumptions such as estimated default rates and discount rates are used to determine expected discounted cash flows to estimate the fair value. | ||||||||||||
Capitalization of Costs | ||||||||||||
The Company’s capitalized internal costs related to development and redevelopment projects were comprised primarily of employee compensation and totaled $2.0 million and $1.7 million during the three months ended March 31, 2015 and 2014, respectively. The Company capitalizes leasing commissions associated with the lease-up of a development community and amortizes the costs over the life of the leases. The amounts capitalized for leasing commissions are immaterial for all periods presented. | ||||||||||||
Co-investments | ||||||||||||
The Company owns investments in joint ventures (“co-investments”) in which it has significant influence, but its ownership interest does not meet the criteria for consolidation in accordance with U.S. GAAP. Therefore, the Company accounts for co-investments using the equity method of accounting. The equity method employs the accrual basis for recognizing the investor’s share of investee income or losses. In addition, distributions received from the investee are treated as a reduction in the investment account, not as income. The significant accounting policies of the Company’s co-investment entities are consistent with those of the Company in all material respects. | ||||||||||||
Upon the acquisition of a controlling interest of a co-investment, the co-investment entity is consolidated and a gain or loss is recognized upon the remeasurement of co-investments in the condensed consolidated statement of income equal to the amount by which the fair value of the co-investment interest the Company previously owned exceeds its carrying value. A majority of the co-investments, excluding the preferred equity investments, compensate the Company for its asset management services and may provide promote income if certain financial return benchmarks are achieved. Asset management fees are recognized when earned, and promote fees are recognized when the earnings events have occurred and the amount is determinable and collectible. Any promote fees are reflected in equity income in co-investments. | ||||||||||||
Changes in Accumulated Other Comprehensive Loss, Net by Component | ||||||||||||
Essex Property Trust, Inc. | ||||||||||||
(in thousands): | ||||||||||||
Change in fair | Unrealized | Total | ||||||||||
value and amortization | gains on | |||||||||||
of derivatives | available for sale | |||||||||||
securities | ||||||||||||
Balance at December 31, 2014 | $ | (56,003 | ) | $ | 4,551 | $ | (51,452 | ) | ||||
Other comprehensive income before reclassification | (3,211 | ) | 1,873 | (1,338 | ) | |||||||
Amounts reclassified from accumulated other comprehensive loss | 1,922 | — | 1,922 | |||||||||
Net other comprehensive income | (1,289 | ) | 1,873 | 584 | ||||||||
Balance at March 31, 2015 | $ | (57,292 | ) | $ | 6,424 | $ | (50,868 | ) | ||||
Essex Portfolio, L.P. | ||||||||||||
(in thousands): | ||||||||||||
Change in fair | Unrealized | Total | ||||||||||
value and amortization | gains on | |||||||||||
of derivatives | available for sale | |||||||||||
securities | ||||||||||||
Balance at December 31, 2014 | $ | (53,980 | ) | $ | 4,624 | $ | (49,356 | ) | ||||
Other comprehensive income before reclassification | (3,257 | ) | 1,934 | (1,323 | ) | |||||||
Amounts reclassified from accumulated other comprehensive loss | 1,922 | — | 1,922 | |||||||||
Net other comprehensive income | (1,335 | ) | 1,934 | 599 | ||||||||
Balance at March 31, 2015 | $ | (55,315 | ) | $ | 6,558 | $ | (48,757 | ) | ||||
Amounts reclassified from accumulated other comprehensive loss in connection with derivatives are recorded in interest expense on the condensed consolidated statement of income and comprehensive income. Realized gains and losses on available for sale securities are included in interest and other income on the condensed consolidated statement of income and comprehensive income. | ||||||||||||
Accounting Estimates | ||||||||||||
The preparation of condensed consolidated financial statements, in accordance with GAAP, requires the Company to make estimates and judgments that affect the reported amounts of assets, liabilities, revenues and expenses and related disclosures of contingent assets and liabilities. On an on-going basis, the Company evaluates its estimates, including those related to acquiring, developing and assessing the carrying values of its real estate portfolio, its investments in and advances to joint ventures and affiliates, its notes receivables and its qualification as a Real Estate Investment Trust (“REIT”). The Company bases its estimates on historical experience, current market conditions, and on various other assumptions that are believed to be reasonable under the circumstances. Actual results may vary from those estimates and those estimates could be different under different assumptions or conditions. | ||||||||||||
BRE Merger | ||||||||||||
The merger with BRE Properties, Inc. ("BRE") was a two step process. First, 14 of the BRE properties were acquired on March 31, 2014 in exchange for $1.4 billion of OP units. The fair value of these properties was substantially all attributable to rental properties which included land, buildings and improvements, and real estate under development and approximately $19 million was attributable to acquired in-place lease value. Second, the BRE merger was closed on April 1, 2014 in exchange for the total consideration of approximately $4.3 billion. A summary of the fair value of the assets and liabilities acquired on April 1, 2014 was as follows (includes the 14 properties acquired on March 31, 2014 as the OP units issued were retired on April 1, 2014) (in millions): | ||||||||||||
Cash assumed | $ | 140 | ||||||||||
Rental properties and real estate under development | 5,605 | |||||||||||
Real estate held for sale, net | 108 | |||||||||||
Co-investments | 224 | |||||||||||
Acquired in-place lease value | 77 | |||||||||||
Other assets | 16 | |||||||||||
Mortgage notes payable and unsecured debt | (1,747 | ) | ||||||||||
Other liabilities | (87 | ) | ||||||||||
Redeemable noncontrolling interest | (5 | ) | ||||||||||
$ | 4,331 | |||||||||||
Cash consideration for BRE merger | $ | 556 | ||||||||||
Equity consideration for BRE merger | 3,775 | |||||||||||
Total consideration for BRE merger | $ | 4,331 | ||||||||||
During the quarter ended March 31, 2015, the Company recorded adjustments to decrease the preliminary fair value of real property by $13.1 million, to increase the preliminary fair value of co-investments by $6.0 million and to decrease its preliminary estimate for liabilities assumed by $7.1 million. The changes in estimates were the result of subsequent additional information pertaining to the opening balance sheet identified by management. The Company believes that the information gathered to date provides a reasonable basis for estimating the fair values of assets acquired and liabilities assumed. |
Significant_Transactions_Durin
Significant Transactions During the First Quarter of 2015 and Subsequent Events | 3 Months Ended |
Mar. 31, 2015 | |
Significant Transactions During the First Quarter of 2015 and Subsequent Events [Abstract] | |
Significant Transactions During the First Quarter of 2015 and Subsequent Events | Significant Transactions During the First Quarter of 2015 and Subsequent Events |
Significant Transactions | |
Acquisitions | |
In February 2015, the Company formed a joint venture, Block 9 Residential, LLC ("500 Folsom"), to purchase a land parcel located at the intersection of Folsom and First Streets in downtown San Francisco, CA for a contract price of $43.6 million. The site is located near the Transbay Terminal transportation hub, which is currently under construction. 500 Folsom plans to develop a forty-two story apartment community comprising 545 homes and 5,900 square feet of ground floor retail space. The Company has an approximately 50% interest in the joint venture. | |
In February 2015, the Company acquired 8th and Hope, a 290 unit community in Los Angeles, CA for $200 million. The property was completed in 2014 and has approximately 4,000 square feet of ground floor retail space. | |
In March 2015, the Company acquired Station Park Green, a parcel of land located in San Mateo, CA for a contract price of $67.0 million. The Company plans to develop an apartment community comprising 599 homes and approximately 35,000 square feet of office and retail space. | |
In March 2015, the Company acquired an additional 50% interest in The Huxley and The Dylan communities, located in Los Angeles, CA, for a contract price of $100.1 million. As a result of the acquisition, the properties and related debt are now consolidated and the Company recorded a $21.4 million gain to remeasure the Company’s investment in the co-investments to fair value. | |
Dispositions | |
In January 2015, the Company sold Pinnacle South Mountain, a 552 unit community located in Phoenix, AZ for gross proceeds of $63.8 million and a net gain of $4.7 million. | |
Issuance of Unsecured Debt | |
In March 2015, the Company issued $500.0 million of 3.50% senior unsecured notes that mature in April 1 2025. The interest is payable semi-annually in arrears on April 1 and October 1 of each year, commencing October 1, 2015 until the maturity date in April 2025. The Company used the net proceeds of this offering to repay indebtedness under the Company’s $1.0 billion unsecured line of credit facility, its $25.0 million unsecured working capital line and for other general corporate purposes. | |
Common Stock | |
During the first quarter, the Company issued 822,071 shares of common stock, through our equity distribution program, at an average price of $225.51 for net proceeds of $184.2 million. | |
Subsequent Events | |
Subsequent to quarter end, the Company purchased the joint venture partners 49.5% interest in Reveal, from the Wesco I, LLC co-investment, for a contract price of $73.0 million. Reveal has 438 apartment homes located in Woodland Hills, CA. Starting in the second quarter of 2015, the property will be consolidated. | |
During the second quarter through May 4, 2015, the Company sold 34,125 shares of common stock for $7.8 million, net of fees and commissions, at an average price of $229.50. |
Coinvestments
Co-investments | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
Investments in and Advance to Affiliates, Subsidiaries, Associates, and Joint Ventures [Abstract] | ||||||||
Co-investments | Co-investments | |||||||
The Company has co-investments, which are accounted for under the equity method. The co-investments own, operate and develop apartment communities. The following table details the carrying value of Company's co-investments (in thousands): | ||||||||
31-Mar-15 | 31-Dec-14 | |||||||
Membership interest/Partnership interest in: | ||||||||
Wesco I and III | $ | 186,667 | $ | 188,853 | ||||
Fund II | 232 | 696 | ||||||
Expo | 6,877 | 7,352 | ||||||
The Huxley | — | 11,471 | ||||||
CPPIB | 170,501 | 169,621 | ||||||
Wesco IV | 67,904 | 67,937 | ||||||
BEXAEW | 93,842 | 97,686 | ||||||
Palm Valley | 69,817 | 70,186 | ||||||
Total operating co-investments | 595,840 | 613,802 | ||||||
Membership interest in: | ||||||||
Limited liability companies with CPPIB that own and are developing Epic Phase III, Mosso I and II, Park 20, The Emme, Moorpark, The Village, The Owens, and Hacienda | 283,785 | 268,016 | ||||||
One South Market | 31,300 | 30,919 | ||||||
The Dylan | — | 7,874 | ||||||
Century Towers | 13,475 | 13,121 | ||||||
500 Folsom | 25,824 | — | ||||||
Total development co-investments | 354,384 | 319,930 | ||||||
Preferred interest in related party limited liability company that owns Sage at Cupertino with a preferred return of 9.5% (matures in May 2016) | 16,675 | 16,571 | ||||||
Preferred interest in a related party limited liability company that owned Madison Park at Anaheim with a preferred return of 9% (matures in September 2020) (1) | 13,824 | 13,824 | ||||||
Preferred interest in related party limited liability company that owns an apartment development in Redwood City with a preferred return of 12% (redeemed for $11.1 million in March 2015) | — | 10,396 | ||||||
Preferred interest in a limited liability company that owns an apartment development in San Jose with a preferred return of 12% (matures in August 2016 with one one-year extension option) | 10,314 | 10,011 | ||||||
Preferred interest in a limited liability company that owns 8th & Thomas with a preferred return of 10.0% (matures in June 2018 with one one-year extension option) | 13,477 | 13,145 | ||||||
Preferred interest in a limited liability company that owns Newbury Park with a preferred return of 12.0% (matures in January 2019) | 13,548 | 13,150 | ||||||
Preferred interest in a limited liability company that owns Century Towers (matures in August 2019) (2) | 19,528 | 12,357 | ||||||
Preferred interest in a limited liability company that owns an apartment development in San Jose with a preferred return of 9% (matures in January 2023) | 19,708 | 19,237 | ||||||
Total preferred interest co-investments | 107,074 | 108,691 | ||||||
Total co-investments | $ | 1,057,298 | $ | 1,042,423 | ||||
(1) The Madison Park at Anaheim property was sold during the quarter ended March 31, 2015 and the Company's investment is now collateralized by cash. | ||||||||
(2) The Company has committed to a total preferred equity investment in the project of $27.0 million at an effective preferred return rate of 8.1%. As of March 31, 2015 the Company has made a preferred equity investment of $19.0 million. | ||||||||
The combined summarized financial information of co-investments are as follows (in thousands). | ||||||||
31-Mar-15 | 31-Dec-14 | |||||||
Combined balance sheets: | ||||||||
Rental properties and real estate under development | $ | 3,425,781 | $ | 3,426,574 | ||||
Other assets | 181,856 | 107,902 | ||||||
Total assets | $ | 3,607,637 | $ | 3,534,476 | ||||
Debt | $ | 1,450,210 | $ | 1,568,398 | ||||
Other liabilities | 158,909 | 91,579 | ||||||
Equity (1) | 1,998,518 | 1,874,499 | ||||||
Total liabilities and equity | $ | 3,607,637 | $ | 3,534,476 | ||||
Company's share of equity | $ | 1,057,298 | $ | 1,042,423 | ||||
Three Months Ended | ||||||||
March 31, | ||||||||
2015 | 2014 | |||||||
Combined statements of income: | ||||||||
Property revenues | $ | 63,498 | $ | 27,960 | ||||
Property operating expenses | (22,954 | ) | (11,560 | ) | ||||
Net operating income | 40,544 | 16,400 | ||||||
Gain on sale of real estate | 14 | 11,369 | ||||||
Interest expense | (11,316 | ) | (6,023 | ) | ||||
General and administrative | (1,606 | ) | (1,388 | ) | ||||
Equity income from co-investments (2) | — | 4,759 | ||||||
Depreciation and amortization | (25,381 | ) | (10,693 | ) | ||||
Net income | $ | 2,255 | $ | 14,424 | ||||
Company's share of net income (3) | $ | 4,311 | $ | 10,526 | ||||
(1) Includes preferred equity investments held by the Company. | ||||||||
(2) Represents income from Wesco II's preferred equity investment in Park Merced. | ||||||||
(3) Includes the Company's share of equity income from preferred equity investments, gain on sales of co-investments, co-investment promote income and income from early redemption of preferred equity investments. |
Notes_and_Other_Receivables
Notes and Other Receivables | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
Notes and Other Receivables [Abstract] | ||||||||
Notes and Other Receivables | Notes and Other Receivables | |||||||
Notes receivable secured by real estate and other receivables consist of the following as of March 31, 2015 and December 31, 2014 (in thousands): | ||||||||
31-Mar-15 | 31-Dec-14 | |||||||
Notes receivable, secured, bearing interest at 6.0%, due December 2016 | $ | 3,219 | $ | 3,212 | ||||
Notes and other receivables from affiliates | 4,177 | 8,105 | ||||||
Other receivables (1) | 21,558 | 13,606 | ||||||
$ | 28,954 | $ | 24,923 | |||||
-1 | Amount includes $9.6 million for the sale of the Company's common stock which was settled in April 2015 and $12.0 million for utilities, rents and other receivables. |
Related_Party_Transactions
Related Party Transactions | 3 Months Ended |
Mar. 31, 2015 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Related Party Transactions |
The Company charges certain fees to its co-investments for asset management, property management, development and redevelopment services. These fees from affiliates totaled $5.7 million and $2.6 million during the three months ended March 31, 2015 and 2014, respectively. All of these fees are net of intercompany amounts eliminated by the Company. The Company netted development and redevelopment fees of $3.1 million and $0.9 million against general and administrative expenses for the three months ended March 31, 2015 and 2014, respectively. | |
The Company’s Chairman and founder, Mr. George Marcus, is the Chairman of the Marcus & Millichap Company (“MMC”), which is a parent company of a diversified group of real estate service, investment, and development firms. Mr. Marcus is also the Co-Chairman of Marcus & Millichap, Inc. (“MMI”), and Mr. Marcus owns a controlling interest in MMI, a national brokerage firm listed on the NYSE. In July 2014, the Company acquired Paragon Apartments, a 301 apartment community located in Fremont, CA for $111.0 million from an entity that was partially owned by an affiliate of MMC. Independent members of the Company’s Board of Directors that serve on the Nominating and Corporate Governance and Audit Committees approved the acquisition of Paragon Apartments. | |
In January 2013, the Company invested $8.6 million as a preferred equity interest investment in an entity affiliated with MMC that owns an apartment development in Redwood City, California. Independent members of the Company’s Board of Directors that serve on the Nominating and Corporate Governance and Audit Committees approved the investment in this entity. In March 2015 the Company's preferred interest investment was prepaid and the Company recognized a gain of $0.5 million as a result of the prepayment. | |
As described in Note 4, the Company has provided short-term bridge loans to affiliates. As of March 31, 2015, $4.2 million of short-term loans remained outstanding due from joint venture affiliates. |
Debt
Debt | 3 Months Ended | |||||||||
Mar. 31, 2015 | ||||||||||
Debt Disclosure [Abstract] | ||||||||||
Debt | Debt | |||||||||
The Company does not have indebtedness as debt is incurred by the Operating Partnership. The Company guarantees the Operating Partnership’s unsecured debt including the revolving credit facilities for the full term of such debt. | ||||||||||
In March 2015, in connection with the purchase of a controlling interest in The Huxley and The Dylan, the Operating Partnership now consolidates the related entities. The Operating Partnership assumed mortgage loans with a principal balance of $114.4 million outstanding, with a remaining term to maturity of thirty-two years with a variable interest rate based on the Municipal Market Data rate plus 345 basis points. | ||||||||||
Debt consists of the following (in thousands): | ||||||||||
31-Mar-15 | 31-Dec-14 | Weighted Average | ||||||||
Maturity | ||||||||||
In Years | ||||||||||
Bonds private placement - fixed rate | $ | 465,000 | $ | 465,000 | 4 | |||||
Term loan - variable rate | 225,000 | 225,000 | 1.6 | |||||||
Unsecured Bonds - fixed rate | 2,423,216 | 1,927,482 | 7.5 | |||||||
Unsecured debt (1) | 3,113,216 | 2,617,482 | ||||||||
Lines of credit | — | 246,391 | ||||||||
Mortgage notes payable (2) | $ | 2,322,837 | $ | 2,246,255 | 6.6 | |||||
Total debt | $ | 5,436,053 | $ | 5,110,128 | ||||||
Weighted average interest rate on fixed rate unsecured bonds | 3.6 | % | 3.6 | % | ||||||
Weighted average interest rate on variable rate term loan | 2.4 | % | 2.4 | % | ||||||
Weighted average interest rate on lines of credit | — | % | 1.8 | % | ||||||
Weighted average interest rate on mortgage notes payable | 4.5 | % | 4.6 | % | ||||||
(1) Includes unamortized premium of $23.2 million and $27.5 million as of March 31, 2015 and December 31, 2014, respectively. | ||||||||||
(2) Includes unamortized premium of $78.2 million and $83.8 million as of March 31, 2015 and December 31, 2014, respectively. | ||||||||||
The aggregate scheduled principal payments of the Company’s outstanding debt as of March 31, 2015 are as follows (excluding lines of credit): | ||||||||||
Remaining in 2015 | $ | 74,177 | ||||||||
2016 | 391,519 | |||||||||
2017 | 564,178 | |||||||||
2018 | 320,621 | |||||||||
2019 | 641,393 | |||||||||
Thereafter | 3,342,728 | |||||||||
$ | 5,334,616 | |||||||||
Segment_Information
Segment Information | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
Segment Reporting [Abstract] | ||||||||
Segment Information | Segment Information | |||||||
The Company defines its reportable operating segments as the three geographical regions in which its communities are located: Southern California, Northern California and Seattle Metro. Excluded from segment revenues and net operating income are management and other fees from affiliates, and interest and other income. Non-segment revenues and net operating income included in the following schedule also consist of revenue generated from commercial properties. Other non-segment assets include real estate under development, co-investments, cash and cash equivalents, marketable securities, notes and other receivables, prepaid expenses and other assets and deferred charges. | ||||||||
The revenues and net operating income for each of the reportable operating segments are summarized as follows for the three months ended March 31, 2015 and 2014 ($ in thousands): | ||||||||
Three Months Ended | ||||||||
March 31, | ||||||||
2015 | 2014 | |||||||
Revenues: | ||||||||
Southern California | $ | 123,455 | $ | 69,611 | ||||
Northern California | 102,427 | 56,488 | ||||||
Seattle Metro | 48,654 | 28,705 | ||||||
Other real estate assets | 5,693 | 4,545 | ||||||
Total property revenues | $ | 280,229 | $ | 159,349 | ||||
Net operating income: | ||||||||
Southern California | $ | 83,088 | $ | 46,939 | ||||
Northern California | 72,516 | 39,923 | ||||||
Seattle Metro | 33,129 | 19,046 | ||||||
Other real estate assets | 4,325 | 1,135 | ||||||
Total net operating income | 193,058 | 107,043 | ||||||
Management and other fees from affiliates | 2,644 | 1,660 | ||||||
Depreciation and amortization | (106,907 | ) | (50,312 | ) | ||||
General and administrative | (10,545 | ) | (7,583 | ) | ||||
Merger and integration expenses | (2,388 | ) | (16,059 | ) | ||||
Acquisition costs | (547 | ) | (188 | ) | ||||
Interest expense | (47,546 | ) | (29,041 | ) | ||||
Interest and other income | 4,199 | 2,879 | ||||||
Equity income from co-investments | 4,311 | 10,526 | ||||||
Gains on sale of real estate and land | 7,112 | 7,481 | ||||||
Gain on remeasurement of co-investment | 21,362 | — | ||||||
Net income | $ | 64,753 | $ | 26,406 | ||||
Total assets for each of the reportable operating segments are summarized as follows as of March 31, 2015 and December 31, 2014 ($ in thousands): | ||||||||
31-Mar-15 | 31-Dec-14 | |||||||
Assets: | ||||||||
Southern California | $ | 4,612,162 | $ | 4,241,277 | ||||
Northern California | 3,782,875 | 3,641,720 | ||||||
Seattle Metro | 1,634,249 | 1,647,058 | ||||||
Other real estate assets | 149,751 | 149,820 | ||||||
Net reportable operating segment - real estate assets | 10,179,037 | 9,679,875 | ||||||
Real estate under development | 339,386 | 429,096 | ||||||
Co-investments | 1,057,298 | 1,042,423 | ||||||
Real estate held for sale, net | — | 56,300 | ||||||
Cash and cash equivalents, including restricted cash | 255,230 | 95,749 | ||||||
Marketable securities and other investments | 128,502 | 117,240 | ||||||
Notes and other receivables | 28,954 | 24,923 | ||||||
Other non-segment assets | 96,752 | 110,565 | ||||||
Total assets | $ | 12,085,159 | $ | 11,556,171 | ||||
Net_Income_Per_Common_Share
Net Income Per Common Share | 3 Months Ended | |||||||||||||||||||||
Mar. 31, 2015 | ||||||||||||||||||||||
Earnings Per Share [Abstract] | ||||||||||||||||||||||
Net Income Per Common Share | Net Income Per Common Share | |||||||||||||||||||||
(Amounts in thousands, except per share and unit data) | ||||||||||||||||||||||
Essex Property Trust, Inc. | ||||||||||||||||||||||
Three Months Ended | Three Months Ended | |||||||||||||||||||||
March 31, 2015 | March 31, 2014 | |||||||||||||||||||||
Income | Weighted- | Per | Income | Weighted- | Per | |||||||||||||||||
average | Common | average | Common | |||||||||||||||||||
Common | Share | Common | Share | |||||||||||||||||||
Shares | Amount | Shares | Amount | |||||||||||||||||||
Basic: | ||||||||||||||||||||||
Net income available to common stockholders | $ | 59,363 | 64,185,455 | $ | 0.92 | $ | 21,912 | 37,685,073 | $ | 0.58 | ||||||||||||
Effect of Dilutive Securities (1) | — | 209,225 | — | 246,381 | ||||||||||||||||||
Diluted: | ||||||||||||||||||||||
Net income available to common stockholders | $ | 59,363 | 64,394,680 | $ | 0.92 | $ | 21,912 | 37,931,454 | $ | 0.58 | ||||||||||||
-1 | Weighted average convertible limited partnership units of 2,184,314 and 2,272,179 which include vested Series Z-1 incentive units, for the three months ended March 31, 2015, and 2014, respectively, were not included in the determination of diluted EPS because they were anti-dilutive. Income allocated to convertible limited partnership units, which includes vested Series Z-1 units, aggregating $2.1 million and $1.4 million for the three months ended March 31, 2015 and 2014, respectively has been excluded from income available to common stockholders for the calculation of diluted income per common share since these units are excluded from the diluted weighted average common shares for the period as the effect was anti-dilutive. The Company has the ability to redeem DownREIT limited partnership units for cash and does not consider them to be potentially dilutive securities. | |||||||||||||||||||||
Stock options of zero and 164,442 for the three months ended March 31, 2015 and 2014, respectively, were not included in the diluted earnings per share calculation because the effects on earnings per share were anti-dilutive. | ||||||||||||||||||||||
Essex Portfolio, L.P. | ||||||||||||||||||||||
Three Months Ended | Three Months Ended | |||||||||||||||||||||
March 31, 2015 | March 31, 2014 | |||||||||||||||||||||
Income | Weighted- | Per | Income | Weighted- | Per | |||||||||||||||||
average | Common | average | Common | |||||||||||||||||||
Common Units | Unit | Common Units | Unit | |||||||||||||||||||
Amount | Amount | |||||||||||||||||||||
Basic: | ||||||||||||||||||||||
Net income available to common unitholders | $ | 61,474 | 66,369,769 | $ | 0.93 | $ | 23,329 | 39,957,252 | $ | 0.58 | ||||||||||||
Effect of Dilutive Securities (1) | — | 209,225 | — | 246,381 | ||||||||||||||||||
Diluted: | ||||||||||||||||||||||
Net income available to common unitholders | $ | 61,474 | 66,578,994 | $ | 0.92 | $ | 23,329 | 40,203,633 | $ | 0.58 | ||||||||||||
-1 | The Operating Partnership has the ability to redeem DownREIT limited partnership units for cash and does not consider them to be potentially dilutive securities. | |||||||||||||||||||||
Stock options of zero and 164,442 for the three months ended March 31, 2015 and 2014, respectively, were not included in the diluted earnings per unit calculation because the effects on earnings per unit were anti-dilutive. |
Derivative_Instruments_and_Hed
Derivative Instruments and Hedging Activities | 3 Months Ended |
Mar. 31, 2015 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Instruments and Hedging Activities | Derivative Instruments and Hedging Activities |
As of March 31, 2015, the Company has entered into interest rate swap contracts with an aggregate notional amount of $225 million that effectively fixed the interest rate on $225 million of the $225 million unsecured term loan at 2.4%. These derivatives qualify for hedge accounting. | |
As of March 31, 2015, the Company has interest rate cap contracts totaling a notional amount of $149.5 million that effectively limit the Company’s exposure to interest rate risk by providing a ceiling on the underlying variable interest rate for substantially all of the Company’s tax exempt variable rate debt. | |
The Company has total return swaps, with a notional amount of $114.4 million and a carrying value and fair value of $5 thousand at March 31, 2015. | |
As of March 31, 2015 and December 31, 2014, the aggregate carrying value of the interest rate swap contracts was a liability of $2.2 million and $1.8 million, respectively, which is classified in other liabilities on the condensed consolidated balance sheets. |
Commitments_and_Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies |
To the extent that an environmental matter arises or is identified in the future that has other than a remote risk of having a material impact on the condensed consolidated financial statements, the Company will disclose the estimated range of possible outcomes, and, if an outcome is probable, accrue an appropriate liability for remediation and other potential liability. The Company will consider whether such occurrence results in an impairment of value on the affected property and, if so, impairment will be recognized. |
Organization_and_Basis_of_Pres1
Organization and Basis of Presentation (Policies) | 3 Months Ended |
Mar. 31, 2015 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Marketable Securities | The Company reports its available for sale securities at fair value, based on quoted market prices (Level 2 for the unsecured bonds and Level 1 for the common stock and investment funds, as defined by the Financial Accounting Standards Board (“FASB”) standard for fair value measurements), and any unrealized gain or loss is recorded as other comprehensive income (loss). Realized gains and losses, interest and dividend income, and amortization of purchase discounts are included in interest and other income on the condensed consolidated statements of income and comprehensive income. |
Variable Interest Entities | The Company consolidates 19 DownREIT limited partnerships (comprising twelve communities) since the Company is the primary beneficiary of these variable interest entities (“VIEs”). Total DownREIT units outstanding were 965,289 and 974,790 as of March 31, 2015 and December 31, 2014 respectively, and the redemption value of the units, based on the closing price of the Company’s common stock totaled $221.9 million and $201.4 million, as of March 31, 2015 and December 31, 2014, respectively. The consolidated total assets and liabilities related to these VIEs, net of intercompany eliminations, were approximately $235.6 million and $209.3 million, respectively, as of March 31, 2015 and $235.1 million and $209.1 million, respectively, as of December 31, 2014. Interest holders in VIEs consolidated by the Company are allocated income equal to the cash distributions made to those interest holders. The remaining results of operations are allocated to the Company. As of March 31, 2015 and December 31, 2014, the Company did not have any other VIEs of which it was deemed to be the primary beneficiary. |
Equity Based Compensation | The Company accounts for equity based compensation using the fair value method of accounting. The estimated fair value of stock options granted by the Company is being amortized over the vesting period of the stock options. The estimated grant date fair values of the long term incentive plan units (discussed in Note 13, “Equity Based Compensation Plans,” in the Company’s Form 10-K for the year ended December 31, 2014) are being amortized over the expected service periods. |
Fair Value of Financial Instruments | Management believes that the carrying amounts of outstanding lines of credit, and notes and other receivables approximate fair value as of March 31, 2015 and December 31, 2014, because interest rates, yields and other terms for these instruments are consistent with yields and other terms currently available for similar instruments. Management has estimated that the fair value of the Company’s $4.8 billion of fixed rate debt, including unsecured bonds, at March 31, 2015 is approximately $5.1 billion and the Company’s variable rate debt, excluding borrowings under the lines of credit, at March 31, 2015 approximates its fair value based on the terms of existing mortgage notes payable, unsecured bonds and variable rate demand notes compared to those available in the marketplace. Management believes that the carrying amounts of cash and cash equivalents, restricted cash, accounts payable and accrued liabilities, construction payables, other liabilities and dividends payable approximate fair value as of March 31, 2015 due to the short-term maturity of these instruments. Marketable securities, except mortgage backed securities that are held to maturity, and derivatives are carried at fair value as of March 31, 2015. |
At March 31, 2015, the Company’s investments in mortgage backed securities had a carrying value of $70.8 million and the Company estimated the fair value to be approximately $99.0 million. At December 31, 2014, the Company’s investments in mortgage backed securities had a carrying value of $68.0 million and the Company estimated the fair value to be approximately $96.0 million. The Company determines the fair value of the mortgage backed securities based on unobservable inputs (level 3 of the fair value hierarchy) considering the assumptions that market participants would make in valuing these securities. Assumptions such as estimated default rates and discount rates are used to determine expected discounted cash flows to estimate the fair value. | |
Capitalization of Costs | The Company capitalizes leasing commissions associated with the lease-up of a development community and amortizes the costs over the life of the leases. The amounts capitalized for leasing commissions are immaterial for all periods presented. |
Co-investments | The Company owns investments in joint ventures (“co-investments”) in which it has significant influence, but its ownership interest does not meet the criteria for consolidation in accordance with U.S. GAAP. Therefore, the Company accounts for co-investments using the equity method of accounting. The equity method employs the accrual basis for recognizing the investor’s share of investee income or losses. In addition, distributions received from the investee are treated as a reduction in the investment account, not as income. The significant accounting policies of the Company’s co-investment entities are consistent with those of the Company in all material respects. |
Upon the acquisition of a controlling interest of a co-investment, the co-investment entity is consolidated and a gain or loss is recognized upon the remeasurement of co-investments in the condensed consolidated statement of income equal to the amount by which the fair value of the co-investment interest the Company previously owned exceeds its carrying value. A majority of the co-investments, excluding the preferred equity investments, compensate the Company for its asset management services and may provide promote income if certain financial return benchmarks are achieved. Asset management fees are recognized when earned, and promote fees are recognized when the earnings events have occurred and the amount is determinable and collectible. Any promote fees are reflected in equity income in co-investments. | |
Changes in Accumulated Other Comprehensive Loss, Net by Component | Amounts reclassified from accumulated other comprehensive loss in connection with derivatives are recorded in interest expense on the condensed consolidated statement of income and comprehensive income. Realized gains and losses on available for sale securities are included in interest and other income on the condensed consolidated statement of income and comprehensive income. |
Accounting Estimates | The preparation of condensed consolidated financial statements, in accordance with GAAP, requires the Company to make estimates and judgments that affect the reported amounts of assets, liabilities, revenues and expenses and related disclosures of contingent assets and liabilities. On an on-going basis, the Company evaluates its estimates, including those related to acquiring, developing and assessing the carrying values of its real estate portfolio, its investments in and advances to joint ventures and affiliates, its notes receivables and its qualification as a Real Estate Investment Trust (“REIT”). The Company bases its estimates on historical experience, current market conditions, and on various other assumptions that are believed to be reasonable under the circumstances. Actual results may vary from those estimates and those estimates could be different under different assumptions or conditions. |
Organization_and_Basis_of_Pres2
Organization and Basis of Presentation (Tables) | 3 Months Ended | |||||||||||
Mar. 31, 2015 | ||||||||||||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||||||||||||
Components of Marketable Securities | As of March 31, 2015 and December 31, 2014, marketable securities consist of the following ($ in thousands): | |||||||||||
March 31, 2015 | ||||||||||||
Amortized | Gross | Carrying Value | ||||||||||
Cost | Unrealized | |||||||||||
Gain | ||||||||||||
Available for sale: | ||||||||||||
Investment-grade unsecured bonds | $ | 8,762 | $ | 176 | $ | 8,938 | ||||||
Investment funds - US treasuries | 5,019 | 7 | 5,026 | |||||||||
Common stock and stock funds | 31,753 | 6,975 | 38,728 | |||||||||
Held to maturity: | ||||||||||||
Mortgage backed securities | 70,810 | — | 70,810 | |||||||||
Total - Marketable securities | $ | 116,344 | $ | 7,158 | $ | 123,502 | ||||||
Other investments (1) | 5,000 | — | 5,000 | |||||||||
Total - Marketable securities and other investments | $ | 121,344 | $ | 7,158 | $ | 128,502 | ||||||
December 31, 2014 | ||||||||||||
Amortized | Gross | Carrying Value | ||||||||||
Cost | Unrealized | |||||||||||
Gain | ||||||||||||
Available for sale: | ||||||||||||
Investment-grade unsecured bonds | $ | 9,435 | $ | 145 | $ | 9,580 | ||||||
Investment funds - US treasuries | 3,769 | 3 | 3,772 | |||||||||
Common stock and stock funds | 25,755 | 5,137 | 30,892 | |||||||||
Held to maturity: | ||||||||||||
Mortgage backed securities | 67,996 | — | 67,996 | |||||||||
Total - marketable securities | $ | 106,955 | $ | 5,285 | $ | 112,240 | ||||||
Other investments (1) | 5,000 | — | 5,000 | |||||||||
Total - Marketable securities and other investments | $ | 111,955 | $ | 5,285 | $ | 117,240 | ||||||
(1) Limited partnership interests | ||||||||||||
Changes in Accumulated Other Comprehensive Loss, Net by Component | Essex Property Trust, Inc. | |||||||||||
(in thousands): | ||||||||||||
Change in fair | Unrealized | Total | ||||||||||
value and amortization | gains on | |||||||||||
of derivatives | available for sale | |||||||||||
securities | ||||||||||||
Balance at December 31, 2014 | $ | (56,003 | ) | $ | 4,551 | $ | (51,452 | ) | ||||
Other comprehensive income before reclassification | (3,211 | ) | 1,873 | (1,338 | ) | |||||||
Amounts reclassified from accumulated other comprehensive loss | 1,922 | — | 1,922 | |||||||||
Net other comprehensive income | (1,289 | ) | 1,873 | 584 | ||||||||
Balance at March 31, 2015 | $ | (57,292 | ) | $ | 6,424 | $ | (50,868 | ) | ||||
Essex Portfolio, L.P. | ||||||||||||
(in thousands): | ||||||||||||
Change in fair | Unrealized | Total | ||||||||||
value and amortization | gains on | |||||||||||
of derivatives | available for sale | |||||||||||
securities | ||||||||||||
Balance at December 31, 2014 | $ | (53,980 | ) | $ | 4,624 | $ | (49,356 | ) | ||||
Other comprehensive income before reclassification | (3,257 | ) | 1,934 | (1,323 | ) | |||||||
Amounts reclassified from accumulated other comprehensive loss | 1,922 | — | 1,922 | |||||||||
Net other comprehensive income | (1,335 | ) | 1,934 | 599 | ||||||||
Balance at March 31, 2015 | $ | (55,315 | ) | $ | 6,558 | $ | (48,757 | ) | ||||
Preliminary Fair Values of Assets and Liabilities Acquired | A summary of the fair value of the assets and liabilities acquired on April 1, 2014 was as follows (includes the 14 properties acquired on March 31, 2014 as the OP units issued were retired on April 1, 2014) (in millions): | |||||||||||
Cash assumed | $ | 140 | ||||||||||
Rental properties and real estate under development | 5,605 | |||||||||||
Real estate held for sale, net | 108 | |||||||||||
Co-investments | 224 | |||||||||||
Acquired in-place lease value | 77 | |||||||||||
Other assets | 16 | |||||||||||
Mortgage notes payable and unsecured debt | (1,747 | ) | ||||||||||
Other liabilities | (87 | ) | ||||||||||
Redeemable noncontrolling interest | (5 | ) | ||||||||||
$ | 4,331 | |||||||||||
Cash consideration for BRE merger | $ | 556 | ||||||||||
Equity consideration for BRE merger | 3,775 | |||||||||||
Total consideration for BRE merger | $ | 4,331 | ||||||||||
Coinvestments_Tables
Co-investments (Tables) | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
Investments in and Advance to Affiliates, Subsidiaries, Associates, and Joint Ventures [Abstract] | ||||||||
Summary of Co Investment | The Company has co-investments, which are accounted for under the equity method. The co-investments own, operate and develop apartment communities. The following table details the carrying value of Company's co-investments (in thousands): | |||||||
31-Mar-15 | 31-Dec-14 | |||||||
Membership interest/Partnership interest in: | ||||||||
Wesco I and III | $ | 186,667 | $ | 188,853 | ||||
Fund II | 232 | 696 | ||||||
Expo | 6,877 | 7,352 | ||||||
The Huxley | — | 11,471 | ||||||
CPPIB | 170,501 | 169,621 | ||||||
Wesco IV | 67,904 | 67,937 | ||||||
BEXAEW | 93,842 | 97,686 | ||||||
Palm Valley | 69,817 | 70,186 | ||||||
Total operating co-investments | 595,840 | 613,802 | ||||||
Membership interest in: | ||||||||
Limited liability companies with CPPIB that own and are developing Epic Phase III, Mosso I and II, Park 20, The Emme, Moorpark, The Village, The Owens, and Hacienda | 283,785 | 268,016 | ||||||
One South Market | 31,300 | 30,919 | ||||||
The Dylan | — | 7,874 | ||||||
Century Towers | 13,475 | 13,121 | ||||||
500 Folsom | 25,824 | — | ||||||
Total development co-investments | 354,384 | 319,930 | ||||||
Preferred interest in related party limited liability company that owns Sage at Cupertino with a preferred return of 9.5% (matures in May 2016) | 16,675 | 16,571 | ||||||
Preferred interest in a related party limited liability company that owned Madison Park at Anaheim with a preferred return of 9% (matures in September 2020) (1) | 13,824 | 13,824 | ||||||
Preferred interest in related party limited liability company that owns an apartment development in Redwood City with a preferred return of 12% (redeemed for $11.1 million in March 2015) | — | 10,396 | ||||||
Preferred interest in a limited liability company that owns an apartment development in San Jose with a preferred return of 12% (matures in August 2016 with one one-year extension option) | 10,314 | 10,011 | ||||||
Preferred interest in a limited liability company that owns 8th & Thomas with a preferred return of 10.0% (matures in June 2018 with one one-year extension option) | 13,477 | 13,145 | ||||||
Preferred interest in a limited liability company that owns Newbury Park with a preferred return of 12.0% (matures in January 2019) | 13,548 | 13,150 | ||||||
Preferred interest in a limited liability company that owns Century Towers (matures in August 2019) (2) | 19,528 | 12,357 | ||||||
Preferred interest in a limited liability company that owns an apartment development in San Jose with a preferred return of 9% (matures in January 2023) | 19,708 | 19,237 | ||||||
Total preferred interest co-investments | 107,074 | 108,691 | ||||||
Total co-investments | $ | 1,057,298 | $ | 1,042,423 | ||||
(1) The Madison Park at Anaheim property was sold during the quarter ended March 31, 2015 and the Company's investment is now collateralized by cash. | ||||||||
(2) The Company has committed to a total preferred equity investment in the project of $27.0 million at an effective preferred return rate of 8.1%. As of March 31, 2015 the Company has made a preferred equity investment of $19.0 million. | ||||||||
Summarized Financial Statement for Co Investment Accounted for Under the Equity Method | The combined summarized financial information of co-investments are as follows (in thousands). | |||||||
31-Mar-15 | 31-Dec-14 | |||||||
Combined balance sheets: | ||||||||
Rental properties and real estate under development | $ | 3,425,781 | $ | 3,426,574 | ||||
Other assets | 181,856 | 107,902 | ||||||
Total assets | $ | 3,607,637 | $ | 3,534,476 | ||||
Debt | $ | 1,450,210 | $ | 1,568,398 | ||||
Other liabilities | 158,909 | 91,579 | ||||||
Equity (1) | 1,998,518 | 1,874,499 | ||||||
Total liabilities and equity | $ | 3,607,637 | $ | 3,534,476 | ||||
Company's share of equity | $ | 1,057,298 | $ | 1,042,423 | ||||
Three Months Ended | ||||||||
March 31, | ||||||||
2015 | 2014 | |||||||
Combined statements of income: | ||||||||
Property revenues | $ | 63,498 | $ | 27,960 | ||||
Property operating expenses | (22,954 | ) | (11,560 | ) | ||||
Net operating income | 40,544 | 16,400 | ||||||
Gain on sale of real estate | 14 | 11,369 | ||||||
Interest expense | (11,316 | ) | (6,023 | ) | ||||
General and administrative | (1,606 | ) | (1,388 | ) | ||||
Equity income from co-investments (2) | — | 4,759 | ||||||
Depreciation and amortization | (25,381 | ) | (10,693 | ) | ||||
Net income | $ | 2,255 | $ | 14,424 | ||||
Company's share of net income (3) | $ | 4,311 | $ | 10,526 | ||||
(1) Includes preferred equity investments held by the Company. | ||||||||
(2) Represents income from Wesco II's preferred equity investment in Park Merced. | ||||||||
(3) Includes the Company's share of equity income from preferred equity investments, gain on sales of co-investments, co-investment promote income and income from early redemption of preferred equity investments. |
Notes_and_Other_Receivables_Ta
Notes and Other Receivables (Tables) | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
Notes and Other Receivables [Abstract] | ||||||||
Notes and Other Receivables | Notes receivable secured by real estate and other receivables consist of the following as of March 31, 2015 and December 31, 2014 (in thousands): | |||||||
31-Mar-15 | 31-Dec-14 | |||||||
Notes receivable, secured, bearing interest at 6.0%, due December 2016 | $ | 3,219 | $ | 3,212 | ||||
Notes and other receivables from affiliates | 4,177 | 8,105 | ||||||
Other receivables (1) | 21,558 | 13,606 | ||||||
$ | 28,954 | $ | 24,923 | |||||
-1 | Amount includes $9.6 million for the sale of the Company's common stock which was settled in April 2015 and $12.0 million for utilities, rents and other receivables. |
Debt_Tables
Debt (Tables) | 3 Months Ended | |||||||||
Mar. 31, 2015 | ||||||||||
Debt Disclosure [Abstract] | ||||||||||
Schedule of debt and lines of credit | Debt consists of the following (in thousands): | |||||||||
31-Mar-15 | 31-Dec-14 | Weighted Average | ||||||||
Maturity | ||||||||||
In Years | ||||||||||
Bonds private placement - fixed rate | $ | 465,000 | $ | 465,000 | 4 | |||||
Term loan - variable rate | 225,000 | 225,000 | 1.6 | |||||||
Unsecured Bonds - fixed rate | 2,423,216 | 1,927,482 | 7.5 | |||||||
Unsecured debt (1) | 3,113,216 | 2,617,482 | ||||||||
Lines of credit | — | 246,391 | ||||||||
Mortgage notes payable (2) | $ | 2,322,837 | $ | 2,246,255 | 6.6 | |||||
Total debt | $ | 5,436,053 | $ | 5,110,128 | ||||||
Weighted average interest rate on fixed rate unsecured bonds | 3.6 | % | 3.6 | % | ||||||
Weighted average interest rate on variable rate term loan | 2.4 | % | 2.4 | % | ||||||
Weighted average interest rate on lines of credit | — | % | 1.8 | % | ||||||
Weighted average interest rate on mortgage notes payable | 4.5 | % | 4.6 | % | ||||||
(1) Includes unamortized premium of $23.2 million and $27.5 million as of March 31, 2015 and December 31, 2014, respectively. | ||||||||||
(2) Includes unamortized premium of $78.2 million and $83.8 million as of March 31, 2015 and December 31, 2014, respectively. | ||||||||||
Summary of aggregate scheduled principal payments | The aggregate scheduled principal payments of the Company’s outstanding debt as of March 31, 2015 are as follows (excluding lines of credit): | |||||||||
Remaining in 2015 | $ | 74,177 | ||||||||
2016 | 391,519 | |||||||||
2017 | 564,178 | |||||||||
2018 | 320,621 | |||||||||
2019 | 641,393 | |||||||||
Thereafter | 3,342,728 | |||||||||
$ | 5,334,616 | |||||||||
Segment_Information_Tables
Segment Information (Tables) | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
Segment Reporting [Abstract] | ||||||||
Reconciliation of Revenues and Operating Profit Loss from Segments to Consolidated | The revenues and net operating income for each of the reportable operating segments are summarized as follows for the three months ended March 31, 2015 and 2014 ($ in thousands): | |||||||
Three Months Ended | ||||||||
March 31, | ||||||||
2015 | 2014 | |||||||
Revenues: | ||||||||
Southern California | $ | 123,455 | $ | 69,611 | ||||
Northern California | 102,427 | 56,488 | ||||||
Seattle Metro | 48,654 | 28,705 | ||||||
Other real estate assets | 5,693 | 4,545 | ||||||
Total property revenues | $ | 280,229 | $ | 159,349 | ||||
Net operating income: | ||||||||
Southern California | $ | 83,088 | $ | 46,939 | ||||
Northern California | 72,516 | 39,923 | ||||||
Seattle Metro | 33,129 | 19,046 | ||||||
Other real estate assets | 4,325 | 1,135 | ||||||
Total net operating income | 193,058 | 107,043 | ||||||
Management and other fees from affiliates | 2,644 | 1,660 | ||||||
Depreciation and amortization | (106,907 | ) | (50,312 | ) | ||||
General and administrative | (10,545 | ) | (7,583 | ) | ||||
Merger and integration expenses | (2,388 | ) | (16,059 | ) | ||||
Acquisition costs | (547 | ) | (188 | ) | ||||
Interest expense | (47,546 | ) | (29,041 | ) | ||||
Interest and other income | 4,199 | 2,879 | ||||||
Equity income from co-investments | 4,311 | 10,526 | ||||||
Gains on sale of real estate and land | 7,112 | 7,481 | ||||||
Gain on remeasurement of co-investment | 21,362 | — | ||||||
Net income | $ | 64,753 | $ | 26,406 | ||||
Reconciliation of Assets from Segment to Consolidated | Total assets for each of the reportable operating segments are summarized as follows as of March 31, 2015 and December 31, 2014 ($ in thousands): | |||||||
31-Mar-15 | 31-Dec-14 | |||||||
Assets: | ||||||||
Southern California | $ | 4,612,162 | $ | 4,241,277 | ||||
Northern California | 3,782,875 | 3,641,720 | ||||||
Seattle Metro | 1,634,249 | 1,647,058 | ||||||
Other real estate assets | 149,751 | 149,820 | ||||||
Net reportable operating segment - real estate assets | 10,179,037 | 9,679,875 | ||||||
Real estate under development | 339,386 | 429,096 | ||||||
Co-investments | 1,057,298 | 1,042,423 | ||||||
Real estate held for sale, net | — | 56,300 | ||||||
Cash and cash equivalents, including restricted cash | 255,230 | 95,749 | ||||||
Marketable securities and other investments | 128,502 | 117,240 | ||||||
Notes and other receivables | 28,954 | 24,923 | ||||||
Other non-segment assets | 96,752 | 110,565 | ||||||
Total assets | $ | 12,085,159 | $ | 11,556,171 | ||||
Net_Income_Per_Common_Share_Ta
Net Income Per Common Share (Tables) | 3 Months Ended | |||||||||||||||||||||
Mar. 31, 2015 | ||||||||||||||||||||||
Net Income Per Share and Net Income Per Unit [Line Items] | ||||||||||||||||||||||
Net Income Per Common Share | (Amounts in thousands, except per share and unit data) | |||||||||||||||||||||
Essex Property Trust, Inc. | ||||||||||||||||||||||
Three Months Ended | Three Months Ended | |||||||||||||||||||||
March 31, 2015 | March 31, 2014 | |||||||||||||||||||||
Income | Weighted- | Per | Income | Weighted- | Per | |||||||||||||||||
average | Common | average | Common | |||||||||||||||||||
Common | Share | Common | Share | |||||||||||||||||||
Shares | Amount | Shares | Amount | |||||||||||||||||||
Basic: | ||||||||||||||||||||||
Net income available to common stockholders | $ | 59,363 | 64,185,455 | $ | 0.92 | $ | 21,912 | 37,685,073 | $ | 0.58 | ||||||||||||
Effect of Dilutive Securities (1) | — | 209,225 | — | 246,381 | ||||||||||||||||||
Diluted: | ||||||||||||||||||||||
Net income available to common stockholders | $ | 59,363 | 64,394,680 | $ | 0.92 | $ | 21,912 | 37,931,454 | $ | 0.58 | ||||||||||||
-1 | Weighted average convertible limited partnership units of 2,184,314 and 2,272,179 which include vested Series Z-1 incentive units, for the three months ended March 31, 2015, and 2014, respectively, were not included in the determination of diluted EPS because they were anti-dilutive. Income allocated to convertible limited partnership units, which includes vested Series Z-1 units, aggregating $2.1 million and $1.4 million for the three months ended March 31, 2015 and 2014, respectively has been excluded from income available to common stockholders for the calculation of diluted income per common share since these units are excluded from the diluted weighted average common shares for the period as the effect was anti-dilutive. The Company has the ability to redeem DownREIT limited partnership units for cash and does not consider them to be potentially dilutive securities. | |||||||||||||||||||||
Essex Portfolio, L.P. [Member] | ||||||||||||||||||||||
Net Income Per Share and Net Income Per Unit [Line Items] | ||||||||||||||||||||||
Net Income Per Common Share | Essex Portfolio, L.P. | |||||||||||||||||||||
Three Months Ended | Three Months Ended | |||||||||||||||||||||
March 31, 2015 | March 31, 2014 | |||||||||||||||||||||
Income | Weighted- | Per | Income | Weighted- | Per | |||||||||||||||||
average | Common | average | Common | |||||||||||||||||||
Common Units | Unit | Common Units | Unit | |||||||||||||||||||
Amount | Amount | |||||||||||||||||||||
Basic: | ||||||||||||||||||||||
Net income available to common unitholders | $ | 61,474 | 66,369,769 | $ | 0.93 | $ | 23,329 | 39,957,252 | $ | 0.58 | ||||||||||||
Effect of Dilutive Securities (1) | — | 209,225 | — | 246,381 | ||||||||||||||||||
Diluted: | ||||||||||||||||||||||
Net income available to common unitholders | $ | 61,474 | 66,578,994 | $ | 0.92 | $ | 23,329 | 40,203,633 | $ | 0.58 | ||||||||||||
-1 | The Operating Partnership has the ability to redeem DownREIT limited partnership units for cash and does not consider them to be potentially dilutive securities. | |||||||||||||||||||||
Stock options of zero and 164,442 for the three months ended March 31, 2015 and 2014, respectively, were not included in the diluted earnings per unit calculation because the effects on earnings per unit were anti-dilutive. |
Organization_and_Basis_of_Pres3
Organization and Basis of Presentation - Summary of Financial Securities (Details) (USD $) | 3 Months Ended | 12 Months Ended |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Dec. 31, 2014 |
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale Securities | $128,502 | $117,240 |
Total Amortized Cost | 116,344 | 106,955 |
Total Gross Unrealized Gain Loss | 7,158 | 5,285 |
Total Fair Value | 123,502 | 112,240 |
Available-for-sale Securities and Held-to-maturity Securities | 121,344 | 111,955 |
Available-For-Sale Securities And Held-To-Maturity Securities, Accumulated Gross Unrealized Gain (Loss), Before Tax | 7,158 | 5,285 |
Corporate Debt Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale Securities, Amortized Cost Basis | 8,762 | 9,435 |
Available-for-sale Securities, Accumulated Gross Unrealized Gain (Loss), before Tax | 176 | 145 |
Available-for-sale Securities | 8,938 | 9,580 |
US Treasury Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale Securities, Amortized Cost Basis | 5,019 | 3,769 |
Available-for-sale Securities, Accumulated Gross Unrealized Gain (Loss), before Tax | 7 | 3 |
Available-for-sale Securities | 5,026 | 3,772 |
Common Stock [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale Securities, Amortized Cost Basis | 31,753 | 25,755 |
Available-for-sale Securities, Accumulated Gross Unrealized Gain (Loss), before Tax | 6,975 | 5,137 |
Available-for-sale Securities | 38,728 | 30,892 |
Collateralized Mortgage Backed Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Held-to-maturity Securities, Amortized Cost before Other than Temporary Impairment | 70,810 | 67,996 |
Held-to-maturity Securities, Unrecognized Holding Gain | 0 | 0 |
Held-to-maturity securities | 70,810 | 67,996 |
Other Investments [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Held-to-maturity Securities, Amortized Cost before Other than Temporary Impairment | 5,000 | 5,000 |
Held-to-maturity Securities, Unrecognized Holding Gain | 0 | 0 |
Held-to-maturity securities | $5,000 | $5,000 |
Organization_and_Basis_of_Pres4
Organization and Basis of Presentation - Accumulated Other Comprehensive Income Summary (Details) (USD $) | 3 Months Ended |
In Thousands, unless otherwise specified | Mar. 31, 2015 |
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | |
Balance at beginning | ($56,003) |
Balance at the end | -57,292 |
Other Comprehensive Income (Loss), Available-for-sale Securities Change In Unrealized Gain (Loss) During Period [Roll Forward] | |
Balance at beginning | 4,551 |
Change in fair value of marketable securities | 1,934 |
Balance at the end | 6,424 |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |
Balance at beginning | -51,452 |
Other comprehensive income before reclassification | -1,338 |
Amounts reclassified from accumulated other comprehensive loss | 1,922 |
Net other comprehensive income | 584 |
Balance at the end | -50,868 |
Essex Portfolio, L.P. [Member] | |
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | |
Balance at beginning | -53,980 |
Balance at the end | -55,315 |
Other Comprehensive Income (Loss), Available-for-sale Securities Change In Unrealized Gain (Loss) During Period [Roll Forward] | |
Balance at beginning | 4,624 |
Change in fair value of marketable securities | 1,934 |
Balance at the end | 6,558 |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |
Balance at beginning | -49,356 |
Other comprehensive income before reclassification | -1,323 |
Amounts reclassified from accumulated other comprehensive loss | 1,922 |
Net other comprehensive income | 599 |
Balance at the end | -48,757 |
Accumulated Other Comprehensive Income (Loss) [Member] | |
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | |
Other comprehensive income before reclassification | -3,211 |
Amounts reclassified from accumulated other comprehensive loss | 1,922 |
Net other comprehensive income | -1,289 |
Other Comprehensive Income (Loss), Available-for-sale Securities Change In Unrealized Gain (Loss) During Period [Roll Forward] | |
Change in fair value of marketable securities | 1,873 |
Amounts reclassified from accumulated other comprehensive loss | 0 |
Net other comprehensive income | 1,873 |
Accumulated Other Comprehensive Income (Loss) [Member] | Essex Portfolio, L.P. [Member] | |
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | |
Other comprehensive income before reclassification | -3,257 |
Amounts reclassified from accumulated other comprehensive loss | 1,922 |
Net other comprehensive income | -1,335 |
Other Comprehensive Income (Loss), Available-for-sale Securities Change In Unrealized Gain (Loss) During Period [Roll Forward] | |
Change in fair value of marketable securities | 1,934 |
Amounts reclassified from accumulated other comprehensive loss | 0 |
Net other comprehensive income | $1,934 |
Organization_and_Basis_of_Pres5
Organization and Basis of Presentation - Merger Purchase Price Allocation (Details) (BRE Properties, Inc. [Member], USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2015 | Apr. 01, 2014 |
BRE Properties, Inc. [Member] | ||
Business Acquisition [Line Items] | ||
Cash assumed | $140 | |
Rental properties and real estate under development | 5,605 | |
Real estate held for sale, net | 108 | |
Co-investments | 224 | |
Acquired in-place lease value | 77 | |
Other assets | 16 | |
Mortgage notes payable and unsecured debt | -1,747 | |
Other liabilities | -87 | |
Redeemable noncontrolling interest | -5 | |
Total consideration for BRE merger | 4,331 | 4,300 |
Cash consideration for BRE merger | 556 | |
Equity consideration for BRE merger | $3,775 |
Organization_and_Basis_of_Pres6
Organization and Basis of Presentation - Narrative (Details) (USD $) | 3 Months Ended | |||
Mar. 31, 2015 | Mar. 31, 2014 | Dec. 31, 2014 | Apr. 01, 2014 | |
project | ||||
partnership | ||||
community | ||||
apartment | ||||
building | ||||
Real Estate Properties [Line Items] | ||||
Ownership interest in partnership | 96.70% | |||
Apartment communities owned | 240 | |||
Apartment units owned | 57,203 | |||
Ownership interest, number of commercial buildings | 4 | |||
Ownership interest, number of active development projects | 12 | |||
Sales and maturities of marketable securities | $717,000 | $4,016,000 | ||
Proceeds from sale of available-for-sale securities | 4,000,000 | |||
Available-for-sale securities, gross realized gain (loss) | 0 | 400,000 | ||
Downreit limited partnerships consolidated by company | 19 | |||
Communities within Downreit partnerships | 12 | |||
Units Of limited partnership interest, amount | 965,289 | 974,790 | ||
Redemption value of variable interest entities | 221,900,000 | 201,400,000 | ||
Assets related to variable interest entities net of intercompany eliminations | 235,600,000 | 235,100,000 | ||
Liabilities related to variable interest entities net of intercompany eliminations | 209,300,000 | 209,100,000 | ||
Share-based compensation | 1,370,000 | 1,233,000 | ||
Options exercised during period | 114,833 | 11,242 | ||
Fixed rate debt carrying amount | 4,800,000,000 | |||
Fixed rate debt fair value | 5,100,000,000 | |||
Investments in mortgage back securities, fair value | 99,000,000 | 96,000,000 | ||
Capitalized internal costs related to development and redevelopment projects | 2,000,000 | 1,700,000 | ||
BRE Properties, Inc. [Member] | ||||
Real Estate Properties [Line Items] | ||||
Number of properties acquired | 14 | |||
Value of acquired properties | 1,400,000,000 | |||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Net | 4,331,000,000 | 4,300,000,000 | ||
Number of properties contributed | 14 | |||
Decrease in preliminary fair value of real property | 13,100,000 | |||
Increase in preliminary fair value of investment in joint ventures | 6,000,000 | |||
Decrease in preliminary estimate for liabilities assumed | 7,100,000 | |||
Employee Stock Option [Member] | ||||
Real Estate Properties [Line Items] | ||||
Share-based compensation | 600,000 | 600,000 | ||
Options exercised during period, intrinsic value | 10,300,000 | 600,000 | ||
Options outstanding and vested, aggregate intrinsic value | 27,200,000 | |||
Share based compensation, cost not yet recognized | 6,400,000 | |||
Unrecognized compensation cost, recognition period minimum | 1 year | |||
Period for recognition of unrecognized compensation costs | 5 years | |||
Restricted Stock [Member] | ||||
Real Estate Properties [Line Items] | ||||
Unrecognized compensation cost, recognition period minimum | 1 year | |||
Period for recognition of unrecognized compensation costs | 7 years | |||
Long Term Incentive Plan Z1 Units and 2014 LTIP Units [Member] | ||||
Real Estate Properties [Line Items] | ||||
Share-based compensation | 800,000 | 600,000 | ||
Period for recognition of unrecognized compensation costs | 10 years 3 months 18 days | 4 years | ||
Options vested and non-vested, outstanding intrinsic value | 59,900,000 | |||
Options outstanding, intrinsic value | 10,200,000 | |||
Essex Portfolio, L.P. [Member] | ||||
Real Estate Properties [Line Items] | ||||
Operating Partnership units outstanding | 2,182,676 | 2,168,158 | ||
Redemption value of operating partnership units outstanding | 501,800,000 | 447,900,000 | ||
Sales and maturities of marketable securities | 717,000 | 4,016,000 | ||
Share-based compensation | 1,370,000 | 1,233,000 | ||
Collateralized Mortgage Backed Securities [Member] | ||||
Real Estate Properties [Line Items] | ||||
Held-to-maturity securities | 70,810,000 | 67,996,000 | ||
Other Assets [Member] | BRE Properties, Inc. [Member] | ||||
Real Estate Properties [Line Items] | ||||
Acquired assets with in-place lease value | $19,000,000 |
Significant_Transactions_Durin1
Significant Transactions During the First Quarter of 2015 and Subsequent Events (Details) (USD $) | 3 Months Ended | 1 Months Ended | 0 Months Ended | 1 Months Ended | ||||
Mar. 31, 2015 | Mar. 31, 2014 | Jan. 31, 2015 | Feb. 28, 2015 | Mar. 31, 2015 | Mar. 31, 2015 | 8-May-15 | 4-May-15 | |
unit | unit | apartment | ||||||
sqft | ||||||||
Acquisitions [Abstract] | ||||||||
Acquisitions of real estate | $199,190,000 | $33,825,000 | ||||||
Borrowings under debt agreements | 756,562,000 | 233,780,000 | ||||||
Repayment of debt | 536,830,000 | 312,585,000 | ||||||
Proceeds from Issuance of Common Stock | 174,592,000 | 157,596,000 | ||||||
Sale of common stock | 184,158,000 | |||||||
Common Stock [Member] | ||||||||
Acquisitions [Abstract] | ||||||||
Sale of common stock (in shares) | 822,071 | |||||||
Average share price (in dollars per share) | $225.51 | |||||||
Proceeds from Issuance of Common Stock | 184,200,000 | |||||||
Pinnacle South Mountain [Member] | ||||||||
Acquisitions [Abstract] | ||||||||
Number of units sold | 552 | |||||||
Sales of real estate | 63,800,000 | |||||||
Gain on sale of property | 4,700,000 | |||||||
Equity Method Investments [Member] | Folsom 500 [Member] | ||||||||
Acquisitions [Abstract] | ||||||||
Acquisitions of real estate | 43,600,000 | |||||||
Equity Method Investments [Member] | Eighth And Hope [Member] | ||||||||
Acquisitions [Abstract] | ||||||||
Acquisitions of real estate | 200,000,000 | |||||||
Area of real estate property | 4,000 | |||||||
Number of units acquired | 290 | |||||||
Equity Method Investments [Member] | Station Park Green [Member] | ||||||||
Acquisitions [Abstract] | ||||||||
Acquisitions of real estate | 67,000,000 | |||||||
Number of units to be developed | 599 | 599 | 599 | |||||
Area of real estate property | 35,000 | 35,000 | 35,000 | |||||
Equity Method Investments [Member] | The Huxley And The Dylan [Member] | ||||||||
Acquisitions [Abstract] | ||||||||
Additional interest acquired | 50.00% | |||||||
Cash consideration for BRE merger | 100,100,000 | |||||||
Gain on remeasurement of co-investment | 21,400,000 | |||||||
Equity Method Investments [Member] | Wesco I Reveal [Member] | Subsequent Event [Member] | ||||||||
Acquisitions [Abstract] | ||||||||
Number of units acquired | 438 | |||||||
Cash consideration for BRE merger | 73,000,000 | |||||||
Percentage of voting interests acquired | 49.50% | |||||||
Equity Method Investments [Member] | San Francisco, CA [Member] | Folsom 500 [Member] | ||||||||
Acquisitions [Abstract] | ||||||||
Number of floors to be developed | 42 | |||||||
Number of units to be developed | 545 | |||||||
Area of real estate property | 5,900 | |||||||
Ownership percentage (in hundredths) | 50.00% | 50.00% | 50.00% | |||||
Unsecured Debt [Member] | Senior Unsecured Notes Maturing April 1, 2025 [Member] | ||||||||
Acquisitions [Abstract] | ||||||||
Borrowings under debt agreements | 500,000,000 | |||||||
Interest rate, stated percentage | 3.50% | 3.50% | 3.50% | |||||
Unsecured Line of Credit [Member] | ||||||||
Acquisitions [Abstract] | ||||||||
Repayment of debt | 1,000,000,000 | |||||||
Line of Credit Working Capital [Member] | ||||||||
Acquisitions [Abstract] | ||||||||
Repayment of debt | 25,000,000 | |||||||
Common Stock [Member] | ||||||||
Acquisitions [Abstract] | ||||||||
Sale of common stock (in shares) | 822,000 | |||||||
Common Stock [Member] | Subsequent Event [Member] | ||||||||
Acquisitions [Abstract] | ||||||||
Sale of common stock (in shares) | 34,125 | |||||||
Sale of common stock | $7,800,000 | |||||||
Shares issued, price per share | $229.50 |
Coinvestments_Summary_of_Inves
Co-investments - Summary of Investments (Details) (USD $) | 3 Months Ended | 1 Months Ended | |
Mar. 31, 2015 | Jul. 31, 2014 | Dec. 31, 2014 | |
Schedule of Equity Method Investments [Line Items] | |||
Co-investments | $1,057,298,000 | $1,042,423,000 | |
Total operating co investments [Member] | |||
Schedule of Equity Method Investments [Line Items] | |||
Co-investments | 595,840,000 | 613,802,000 | |
Membership interest in Wesco I [Member] | |||
Schedule of Equity Method Investments [Line Items] | |||
Co-investments | 186,667,000 | 188,853,000 | |
Partnership interest in Fund II [Member] | |||
Schedule of Equity Method Investments [Line Items] | |||
Co-investments | 232,000 | 696,000 | |
Membership interest in a limited liability company that owns and is developing Expo [Member] | |||
Schedule of Equity Method Investments [Line Items] | |||
Co-investments | 6,877,000 | 7,352,000 | |
Membership interest in a limited liability company that owns The Huxley [Member] | |||
Schedule of Equity Method Investments [Line Items] | |||
Co-investments | 0 | 11,471,000 | |
Membership Interest In Limited Liability Company That Owns Connolly Station [Member] | |||
Schedule of Equity Method Investments [Line Items] | |||
Co-investments | 170,501,000 | 169,621,000 | |
Membership interest in Wesco IV [Member] | |||
Schedule of Equity Method Investments [Line Items] | |||
Co-investments | 67,904,000 | 67,937,000 | |
Membership interest in BEXAEW [Member] | |||
Schedule of Equity Method Investments [Line Items] | |||
Co-investments | 93,842,000 | 97,686,000 | |
Membership Interest In Palm Valley [Member] | |||
Schedule of Equity Method Investments [Line Items] | |||
Co-investments | 69,817,000 | 70,186,000 | |
Total development co investments [Member] | |||
Schedule of Equity Method Investments [Line Items] | |||
Co-investments | 354,384,000 | 319,930,000 | |
Membership interests in limited liability companies that own and are developing Epic, Lync, Elkhorn, and Folsom and Fifth [Member] | |||
Schedule of Equity Method Investments [Line Items] | |||
Co-investments | 283,785,000 | 268,016,000 | |
Membership interests in limited liability companies that owns and are developing One South Market [Member] | |||
Schedule of Equity Method Investments [Line Items] | |||
Co-investments | 31,300,000 | 30,919,000 | |
Membership interests in limited liability companies that own and are developing The Huxley and The Dylan [Member] | |||
Schedule of Equity Method Investments [Line Items] | |||
Co-investments | 0 | 7,874,000 | |
Membership interests in limited liability companies that own and are developing Century Towers [Member] | |||
Schedule of Equity Method Investments [Line Items] | |||
Co-investments | 13,475,000 | 13,121,000 | |
Membership interests in limited liability companies that own and are developing 500 Folsom [Member] | |||
Schedule of Equity Method Investments [Line Items] | |||
Co-investments | 25,824,000 | 0 | |
Total preferred interest investments [Member] | |||
Schedule of Equity Method Investments [Line Items] | |||
Co-investments | 107,074,000 | 108,691,000 | |
Preferred interests in related party limited liability companies that owns Sage at Cupertino with a preferred return of 9.5% [Member] | |||
Schedule of Equity Method Investments [Line Items] | |||
Co-investments | 16,675,000 | 16,571,000 | |
Preferred stock, stated interest percentage | 9.50% | ||
Preferred interest in a related party limited liability company that owns Madison Park at Anaheim with a preferred return of 9% [Member] | |||
Schedule of Equity Method Investments [Line Items] | |||
Co-investments | 13,824,000 | 13,824,000 | |
Preferred stock, stated interest percentage | 9.00% | ||
Preferred interest in related party limited liability company that owns an apartment development in Redwood City with a preferred return of 12% [Member] | |||
Schedule of Equity Method Investments [Line Items] | |||
Co-investments | 0 | 10,396,000 | |
Preferred stock, stated interest percentage | 12.00% | ||
Non-operating distributions from co-investment | 11,100,000 | ||
Preferred interest in related party limited liability company that owns an apartment development in San Jose with a preferred return of 12% [Member] | |||
Schedule of Equity Method Investments [Line Items] | |||
Co-investments | 10,314,000 | 10,011,000 | |
Preferred stock, stated interest percentage | 12.00% | ||
Extension term | 1 year | ||
Number of extension options | 1 | ||
Preferred interest in a limited liability company that owns 8th & Thomas with a preferred return of 10 [Member] | |||
Schedule of Equity Method Investments [Line Items] | |||
Co-investments | 13,477,000 | 13,145,000 | |
Preferred stock, stated interest percentage | 10.00% | ||
Extension term | 1 year | ||
Number of extension options | 1 | ||
Preferred interest in a limited liability company that owns Newbury Park with preferred return of 12 [Member] | |||
Schedule of Equity Method Investments [Line Items] | |||
Co-investments | 13,548,000 | 13,150,000 | |
Preferred stock, stated interest percentage | 12.00% | ||
Preferred interest in a limited liability company that owns Century Towers with preferred return of 10 [Member] | |||
Schedule of Equity Method Investments [Line Items] | |||
Co-investments | 19,528,000 | 12,357,000 | |
Preferred Interest In A Limited Liability Company That Owns An Apartment Development In San Jose With A Preferred Return Of Nine Percent [Member] | |||
Schedule of Equity Method Investments [Line Items] | |||
Co-investments | 19,708,000 | 19,237,000 | |
Preferred stock, stated interest percentage | 9.00% | ||
Century Towers [Member] | |||
Schedule of Equity Method Investments [Line Items] | |||
Co-investments | $19,000,000 | $27,000,000 | |
Effective preferred return rate | 8.10% |
Coinvestments_Details
Co-investments (Details) (USD $) | 3 Months Ended | ||
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | Dec. 31, 2014 |
Equity Method Investment, Summarized Financial Information, Assets [Abstract] | |||
Real estate under development | $339,386 | $429,096 | |
Equity Method Investment, Summarized Financial Information, Liabilities and Equity [Abstract] | |||
Other liabilities | 33,607 | 32,444 | |
Equity Method Investment, Summarized Financial Information, Income Statement [Abstract] | |||
Interest expense | -47,546 | -29,041 | |
General and administrative | -10,545 | -7,583 | |
Equity income in co-investments | 4,311 | 10,526 | |
Total co investment [Member] | |||
Equity Method Investment, Summarized Financial Information, Assets [Abstract] | |||
Real estate under development | 3,425,781 | 3,426,574 | |
Other assets | 181,856 | 107,902 | |
Total assets | 3,607,637 | 3,534,476 | |
Equity Method Investment, Summarized Financial Information, Liabilities and Equity [Abstract] | |||
Debt | 1,450,210 | 1,568,398 | |
Other liabilities | 158,909 | 91,579 | |
Equity | 1,998,518 | 1,874,499 | |
Total liabilities and equity | 3,607,637 | 3,534,476 | |
Company's share of equity | 1,057,298 | 1,042,423 | |
Equity Method Investment, Summarized Financial Information, Income Statement [Abstract] | |||
Property revenues | 63,498 | 27,960 | |
Property operating expenses | -22,954 | -11,560 | |
Net operating income | 40,544 | 16,400 | |
Gain on sale of real estate | 14 | 11,369 | |
Interest expense | -11,316 | -6,023 | |
General and administrative | -1,606 | -1,388 | |
Equity income in co-investments | 0 | 4,759 | |
Depreciation and amortization | -25,381 | -10,693 | |
Net income | 2,255 | 14,424 | |
Company's share of net income | $4,311 | $10,526 |
Notes_and_Other_Receivables_De
Notes and Other Receivables (Details) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Dec. 31, 2014 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Notes receivable | $28,954 | $24,923 |
Notes Receivable [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Notes receivable | 4,177 | 8,105 |
Other Receivables [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Notes receivable | 21,558 | 13,606 |
Equity Interest Issued [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Notes receivable | 9,600 | |
Utilities, Rent And Other [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Notes receivable | 12,000 | |
Secured Due December 2014 [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Notes receivable | $3,219 | $3,212 |
Stated interest rate (in hundredths) | 6.00% |
Related_Party_Transactions_Det
Related Party Transactions (Details) (USD $) | 3 Months Ended | 0 Months Ended | 1 Months Ended | ||
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | Jul. 31, 2014 | Mar. 31, 2015 | Jan. 31, 2013 |
community | |||||
Related Party Transaction [Line Items] | |||||
Management and other fees from affiliates | $5.70 | $2.60 | |||
Short term bridge loans to affiliates | 4.2 | 4.2 | |||
Co-venturer [Member] | |||||
Related Party Transaction [Line Items] | |||||
Development and redevelopment fees | 3.1 | 0.9 | |||
Paragon Apartments [Member] | |||||
Related Party Transaction [Line Items] | |||||
Number of units | 301 | ||||
Cash consideration for BRE merger | 111 | ||||
Marcus and Millichamp Company TMMC Affiliate [Member] | |||||
Related Party Transaction [Line Items] | |||||
Preferred equity interest investment in a related party entity | 8.6 | ||||
Gain recognized on prepayment | $0.50 |
Debt_Debt_Summary_Details
Debt - Debt Summary (Details) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Dec. 31, 2014 |
Debt Instrument [Line Items] | ||
Unsecured debt | $3,113,216 | $2,617,482 |
Lines of credit | 0 | 246,391 |
Secured Debt | 2,322,837 | 2,246,255 |
Unsecured Debt And Line Of Credit | 5,436,053 | 5,110,128 |
Fixed Rate Bond One [Member] | ||
Debt Instrument [Line Items] | ||
Unsecured debt | 465,000 | 465,000 |
Debt Instruments Maturity Period | 4 years | |
Loans Payable [Member] | ||
Debt Instrument [Line Items] | ||
Unsecured debt | 225,000 | 225,000 |
Debt Instruments Maturity Period | 1 year 7 months 6 days | |
Long-term Debt, Weighted Average Interest Rate | 2.40% | 2.40% |
Fixed Rate Bond Two [Member] | ||
Debt Instrument [Line Items] | ||
Unsecured debt | 2,423,216 | 1,927,482 |
Debt Instruments Maturity Period | 7 years 6 months | |
Long-term Debt, Weighted Average Interest Rate | 3.60% | 3.60% |
Unsecured Line of Credit [Member] | ||
Debt Instrument [Line Items] | ||
Lines of credit | 0 | 246,391 |
Long-term Debt, Weighted Average Interest Rate | 0.00% | 1.80% |
Mortgage Notes [Member] | ||
Debt Instrument [Line Items] | ||
Debt Instruments Maturity Period | 6 years 7 months | |
Secured Debt | $2,322,837 | $2,246,255 |
Long-term Debt, Weighted Average Interest Rate | 4.50% | 4.60% |
Debt_Future_Principal_Payments
Debt - Future Principal Payments (Details) (USD $) | Mar. 31, 2015 |
In Thousands, unless otherwise specified | |
Debt Disclosure [Abstract] | |
Remaining in 2015 | $74,177 |
2016 | 391,519 |
2017 | 564,178 |
2018 | 320,621 |
2019 | 641,393 |
Thereafter | 3,342,728 |
Long-term debt | $5,334,616 |
Debt_Narrative_Details
Debt - Narrative (Details) (USD $) | 0 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2015 | Dec. 31, 2014 |
Mortgage Notes [Member] | ||
Debt Instrument [Line Items] | ||
Unamortized premium | $78.20 | $83.80 |
Unsecured Debt [Member] | ||
Debt Instrument [Line Items] | ||
Unamortized premium | 23.2 | 27.5 |
The Huxley And The Dylan [Member] | Mortgage Notes [Member] | ||
Debt Instrument [Line Items] | ||
Principal balance of mortgage loans assumed | $114.40 | |
Remaining contractual term | 32 years | |
Municipal Market Data [Member] | The Huxley And The Dylan [Member] | Mortgage Notes [Member] | ||
Debt Instrument [Line Items] | ||
Variable interest rate | 3.45% |
Segment_Information_Details
Segment Information (Details) (USD $) | 3 Months Ended | ||
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | Dec. 31, 2014 |
segment | |||
Segment Reporting [Abstract] | |||
Number of reportable operating segments defined by geographical regions | 3 | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Property revenues | $280,229 | $159,349 | |
Net operating income | 193,058 | 107,043 | |
Management and other fees from affiliates | 2,644 | 1,660 | |
Depreciation | -106,907 | -50,312 | |
General and administrative | -10,545 | -7,583 | |
Merger expenses | -2,388 | -16,059 | |
Acquisition and disposition costs | -547 | -188 | |
Interest expense | -47,546 | -29,041 | |
Interest and other income | 4,199 | 2,879 | |
Equity income from co-investments | 4,311 | 10,526 | |
Gains on sale of real estate and land | 7,112 | 7,481 | |
Gain on remeasurement of co investment | 21,362 | 0 | |
Income from continuing operations | 64,753 | 26,406 | |
Net reportable operating segment - real estate assets | 10,179,037 | 9,679,875 | |
Real estate under development | 339,386 | 429,096 | |
Co-investments | 1,057,298 | 1,042,423 | |
Real estate held for sale, net | 0 | 56,300 | |
Cash and cash equivalents, including restricted cash | 255,230 | 95,749 | |
Marketable securities and other investments | 128,502 | 117,240 | |
Notes and other receivables | 28,954 | 24,923 | |
Other non-segment assets | 96,752 | 110,565 | |
Total assets | 12,085,159 | 11,556,171 | |
Other Real Estate Assets [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Property revenues | 5,693 | 4,545 | |
Net operating income | 4,325 | 1,135 | |
Net reportable operating segment - real estate assets | 149,751 | 149,820 | |
Reportable Geographical Components [Member] | Southern California [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Property revenues | 123,455 | 69,611 | |
Net operating income | 83,088 | 46,939 | |
Net reportable operating segment - real estate assets | 4,612,162 | 4,241,277 | |
Reportable Geographical Components [Member] | Northern California [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Property revenues | 102,427 | 56,488 | |
Net operating income | 72,516 | 39,923 | |
Net reportable operating segment - real estate assets | 3,782,875 | 3,641,720 | |
Reportable Geographical Components [Member] | Seattle Metro [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Property revenues | 48,654 | 28,705 | |
Net operating income | 33,129 | 19,046 | |
Net reportable operating segment - real estate assets | $1,634,249 | $1,647,058 |
Net_Income_Per_Common_Share_De
Net Income Per Common Share (Details) (USD $) | 3 Months Ended | |
Mar. 31, 2015 | Mar. 31, 2014 | |
Basic [Abstract] | ||
Income from discontinued operations available to common stockholders | $59,363,000 | $21,912,000 |
Income from discontinued operations available to common stockholders (in shares) | 64,185,455 | 37,685,073 |
Income from discontinued operations available to common stockholders (in dollars per share) | $0.92 | $0.58 |
Effect of dilutive securities | 0 | 0 |
Effect of dilutive securities (in shares) | 209,225 | 246,381 |
Diluted [Abstract] | ||
Income from continuing operations available to common stockholders | 59,363,000 | 21,912,000 |
Adjusted income from continuing operations available to common stockholders (in shares) | 64,394,680 | 37,931,454 |
Adjusted income from continuing operations available to common stockholders (in dollars per share) | $0.92 | $0.58 |
Essex Portfolio, L.P. [Member] | ||
Basic [Abstract] | ||
Income from discontinued operations available to common stockholders | 61,474,000 | 23,329,000 |
Income from discontinued operations available to common stockholders (in shares) | 66,369,769 | 39,957,252 |
Income from discontinued operations available to common stockholders (in dollars per share) | $0.93 | $0.58 |
Effect of dilutive securities | 0 | 0 |
Effect of dilutive securities (in shares) | 209,225 | 246,381 |
Diluted [Abstract] | ||
Income from continuing operations available to common stockholders | 61,474,000 | 23,329,000 |
Adjusted income from continuing operations available to common stockholders (in shares) | 66,578,994 | 40,203,633 |
Adjusted income from continuing operations available to common stockholders (in dollars per share) | $0.92 | $0.58 |
Convertible Limited Partnership Units [Member] | ||
Diluted [Abstract] | ||
Antidilutive securities excluded from computation of earnings per share, amount | 2,184,314 | 2,272,179 |
Antidilutive securities excluded from computation of earnings per share, value | $2,100,000 | $1,400,000 |
Employee Stock Option [Member] | ||
Diluted [Abstract] | ||
Antidilutive securities excluded from computation of earnings per share, amount | 0 | 164,442 |
Employee Stock Option [Member] | Essex Portfolio, L.P. [Member] | ||
Diluted [Abstract] | ||
Antidilutive securities excluded from computation of earnings per share, amount | 0 | 164,442 |
Derivative_Instruments_and_Hed1
Derivative Instruments and Hedging Activities (Details) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
Designated as Hedging Instrument [Member] | Interest Rate Swap [Member] | ||
Derivative [Line Items] | ||
Derivative, notional amount | $225,000,000 | |
Loan amount with effectively fixed interest rate | 225,000,000 | |
Interest rate (in hundredths) | 2.40% | |
Aggregate carrying value of the interest rate swap contracts | 2,200,000 | 1,800,000 |
Not Designated as Hedging Instrument [Member] | Sale and Total Return Swap [Member] | ||
Derivative [Line Items] | ||
Derivative, notional amount | 114,400,000 | |
Derivative asset, fair value | 5,000 | |
Multifamily Housing Mortgage Revenue Bonds [Member] | ||
Derivative [Line Items] | ||
Bond subject to interest rate caps | $149,500,000 |