E S S E X P R O P E R T Y T R U S T, I N C. | |||||||||||||
Consolidated Operating Results | Three Months Ended | Twelve Months Ended | |||||||||||
(Dollars in thousands, except per share amounts) | December 31, | December 31, | |||||||||||
2007 | 2006 | 2007 | 2006 | ||||||||||
Revenues: | |||||||||||||
Rental and other property | $ | 101,138 | $ | 88,118 | $ | 383,433 | $ | 334,770 | |||||
Management and other fees from affiliates | 1,428 | 1,504 | 5,090 | 5,030 | |||||||||
102,566 | 89,622 | 388,523 | 339,800 | ||||||||||
Expenses: | |||||||||||||
Property operating, excluding real estate taxes | 25,977 | 22,457 | 95,849 | 85,811 | |||||||||
Real estate taxes | 8,608 | 7,475 | 32,575 | 28,587 | |||||||||
Depreciation and amortization | 29,550 | 20,503 | 100,389 | 78,094 | |||||||||
Interest | 22,003 | 17,621 | 80,995 | 72,898 | |||||||||
Amortization of deferred financing costs | 1,008 | 774 | 3,071 | 2,745 | |||||||||
General and administrative | 7,754 | 7,045 | 26,273 | 22,234 | |||||||||
Other expenses | 800 | - | 800 | 1,770 | |||||||||
95,700 | 75,875 | 339,952 | 292,139 | ||||||||||
Earnings from operations | 6,866 | 13,747 | 48,571 | 47,661 | |||||||||
Interest and other income | 2,856 | 1,448 | 10,310 | 6,176 | |||||||||
Equity income (loss) co-investments | 353 | (319) | 3,120 | (1,503) | |||||||||
Minority interests | (4,512) | (4,822) | (19,937) | (18,807) | |||||||||
Income before discontinued operations and | |||||||||||||
income tax provision | 5,563 | 10,054 | 42,064 | 33,527 | |||||||||
Income tax provision | (400) | (200) | (400) | (525) | |||||||||
Income before discontinued operations | 5,163 | 9,854 | 41,664 | 33,002 | |||||||||
Income and gain from discontinued operations, | |||||||||||||
net of minority interests | 48,434 | 7,583 | 73,974 | 29,746 | |||||||||
Net income | 53,597 | 17,437 | 115,638 | 62,748 | |||||||||
Dividends to preferred stockholders | (2,310) | (2,377) | (9,174) | (5,145) | |||||||||
Net income available to common stockholders | $ | 51,287 | $ | 15,060 | $ | 106,464 | $ | 57,603 | |||||
Net income per share - basic | $ | 2.04 | $ | 0.64 | $ | 4.34 | $ | 2.50 | |||||
Net income per share - diluted | $ | 2.02 | $ | 0.63 | $ | 4.24 | $ | 2.45 | |||||
See Company's 10-K and 10-Q for additional disclosures
S-1
E S S E X P R O P E R T Y T R U S T, I N C. | |||||||||||||
Consolidated Operating Results | Three Months Ended | Twelve Months Ended | |||||||||||
Selected Line Item Detail | December 31, | December 31, | |||||||||||
(Dollars in thousands) | 2007 | 2006 | 2007 | 2006 | |||||||||
Rental and other property | |||||||||||||
Rental | $ | 95,786 | $ | 83,144 | $ | 362,244 | $ | 316,022 | |||||
Other property | 5,352 | 4,974 | 21,189 | 18,748 | |||||||||
Rental and other property | $ | 101,138 | $ | 88,118 | $ | 383,433 | $ | 334,770 | |||||
Management and other fees from affiliates | |||||||||||||
Property management | $ | 934 | $ | 1,118 | $ | 3,457 | $ | 3,523 | |||||
Development and redevelopment fees | 494 | 208 | 1,294 | 329 | |||||||||
Promote interest from Fund I | - | 178 | 339 | 1,178 | |||||||||
Management and other fees from affiliates | $ | 1,428 | $ | 1,504 | $ | 5,090 | $ | 5,030 | |||||
General and administrative | |||||||||||||
General and administrative | $ | 10,730 | $ | 9,875 | $ | 37,302 | $ | 32,138 | |||||
Allocated to property operating expenses - administrative | (1,537) | (1,429) | (5,970) | (5,455) | |||||||||
Capitalized to real estate | (1,439) | (1,401) | (5,059) | (4,449) | |||||||||
Net general and administrative | $ | 7,754 | $ | 7,045 | $ | 26,273 | $ | 22,234 | |||||
Interest and other income | |||||||||||||
Interest income | $ | 1,290 | $ | 1,056 | $ | 3,947 | $ | 2,719 | |||||
Lease income, net | 1,566 | 392 | 6,363 | 1,570 | |||||||||
Gain from sale of marketable securities | - | - | - | 1,687 | |||||||||
Miscellaneous | - | - | - | 200 | |||||||||
Interest and other income | $ | 2,856 | $ | 1,448 | $ | 10,310 | $ | 6,176 | |||||
Equity income (loss) in co-investments | |||||||||||||
Equity income (loss) in co-investments | $ | 353 | $ | (319) | $ | 1,074 | $ | (1,503) | |||||
Gain on sale of co-investment activities, net | - | - | 2,046 | - | |||||||||
Equity income (loss) in co-investments | $ | 353 | $ | (319) | $ | 3,120 | $ | (1,503) | |||||
Minority interests | |||||||||||||
Limited partners of Essex Portfolio, L.P. | $ | 464 | $ | 876 | $ | 4,060 | $ | 2,985 | |||||
Perpetual preferred distributions | 2,559 | 2,559 | 10,238 | 10,238 | |||||||||
Series Z and Z-1 incentive units | 198 | 151 | 793 | 605 | |||||||||
Third party ownership interests | 225 | 180 | 687 | 718 | |||||||||
DownREIT limited partners' distributions | 1,066 | 1,056 | 4,159 | 4,261 | |||||||||
Minority interests | $ | 4,512 | $ | 4,822 | $ | 19,937 | $ | 18,807 | |||||
See Company's 10-K and 10-Q for additional disclosures
S-2
E S S E X P R O P E R T Y T R U S T, I N C. | |||||||||||||||||
Consolidated Funds From Operations | Three Months Ended | Twelve Months Ended | |||||||||||||||
(Dollars in thousands, except share and per share amounts) | December 31, | December 31, | |||||||||||||||
2007 | 2006 | % Change | 2007 | 2006 | % Change | ||||||||||||
Funds from operations | |||||||||||||||||
Net income available to common stockholders | $ | 51,287 | $ | 15,060 | $ | 106,464 | $ | 57,603 | |||||||||
Adjustments: | |||||||||||||||||
Depreciation and amortization | 29,754 | 21,602 | 102,250 | 83,034 | |||||||||||||
Gains not included in FFO | (51,905) | (7,090) | (66,470) | (19,666) | |||||||||||||
Minority interests and co-investments (1) | 5,563 | 2,023 | 11,665 | 9,547 | |||||||||||||
Funds from operations | $ | 34,699 | $ | 31,595 | $ | 153,909 | $ | 130,518 | |||||||||
FFO per share-diluted | $ | 1.25 | $ | 1.19 | 4.6% | $ | 5.58 | $ | 5.01 | 11.2% | |||||||
Components of the change in FFO | |||||||||||||||||
Non-recurring items: | |||||||||||||||||
Fund I - promote interest | - | (178) | (339) | (1,178) | |||||||||||||
Income generated from TRS activities, net of taxes and expenses | - | (381) | (413) | (837) | |||||||||||||
Joint venture - promote interest and fees | - | - | (10,068) | (8,221) | |||||||||||||
Net gain on sale of marketable securities | - | - | - | (717) | |||||||||||||
Impairment of assets | 500 | - | 500 | 800 | |||||||||||||
Miscellaneous | - | - | - | (200) | |||||||||||||
Funds from operations excluding non-recurring items | 35,199 | 31,036 | 143,589 | 120,165 | |||||||||||||
FFO excluding non-recurring items per share-diluted | $ | 1.26 | $ | 1.17 | 8.0% | $ | 5.20 | $ | 4.62 | 12.7% | |||||||
Changes in recurring items: | |||||||||||||||||
Same-property NOI | $ | 3,668 | $ | 14,917 | |||||||||||||
Non-same property NOI | 4,699 | 19,720 | |||||||||||||||
Management fees from joint ventures | 102 | 899 | |||||||||||||||
Interest expense and amortization of deferred financing costs | (4,616) | (8,423) | |||||||||||||||
Other items, net | 310 | (3,689) | |||||||||||||||
$ | 4,163 | $ | 23,424 | ||||||||||||||
Weighted average number of shares outstanding-diluted (2) | 27,838,516 | 26,508,994 | 27,596,668 | 26,029,774 | |||||||||||||
(1) | For Q4 2007, the amount includes the following adjustments: (i) minority interest related to Operating Partnership units totaling $5.0 million, and (ii) depreciation add back for co-investments totaling $0.6 million. | ||||||||||||||||
(2) | Assumes conversion of the weighted average operating partnership interests in the Operating Partnership into shares of the Company's common stock, see S-13 for more detail. | ||||||||||||||||
See Company's 10-K and 10-Q for additional disclosures
S-3
E S S E X P R O P E R T Y T R U S T, I N C. | |||||||
Consolidated Balance Sheets | |||||||
(Dollars in thousands) | |||||||
December 31, 2007 | December 31, 2006 | ||||||
Real Estate: | |||||||
Land and land improvements | $ | 670,494 | $ | 560,880 | |||
Buildings and improvements | 2,447,265 | 2,108,307 | |||||
3,117,759 | 2,669,187 | ||||||
Less: accumulated depreciation | (541,987) | (465,015) | |||||
2,575,772 | 2,204,172 | ||||||
Real estate - held for sale, net | - | 41,221 | |||||
Real estate under development | 233,445 | 107,620 | |||||
Investments | 64,191 | 56,318 | |||||
2,873,408 | 2,409,331 | ||||||
Cash and cash equivalents | 22,483 | 23,610 | |||||
Notes and other receivables | 50,536 | 19,404 | |||||
Other assets | 33,896 | 33,495 | |||||
Total assets | $ | 2,980,323 | $ | 2,485,840 | |||
Mortgage notes payable | $ | 1,262,873 | $ | 1,060,704 | |||
Mortgage notes payable - held for sale | - | 32,850 | |||||
Exchangeable bonds | 225,000 | 225,000 | |||||
Lines of credit | 169,818 | 93,000 | |||||
Other liabilities | 102,250 | 77,852 | |||||
Deferred gain | 2,193 | 2,193 | |||||
Total liabilities | 1,762,134 | 1,491,599 | |||||
Minority interests | 261,420 | 236,120 | |||||
Series G cumulative convertible preferred stock, liquidation value | 145,912 | 145,912 | |||||
Stockholders' Equity: | |||||||
Common stock | 2 | 2 | |||||
Series F cumulative redeemable preferred stock, liquidation value | 25,000 | 25,000 | |||||
Additional paid-in-capital | 877,649 | 686,937 | |||||
Distributions in excess of accumulated earnings | (82,806) | (97,457) | |||||
Accumulated other comprehensive (loss) income | (8,988) | (2,273) | |||||
Total stockholders' equity | 810,857 | 612,209 | |||||
Total liabilities and stockholders' equity | $ | 2,980,323 | $ | 2,485,840 | |||
See Company's 10-K and 10-Q for additional disclosures
S-4
E S S E X P R O P E R T Y T R U S T, I N C. | |||||||||||
Debt Summary - December 31, 2007 | |||||||||||
(Dollars in thousands) | |||||||||||
Percentage of | Weighted | Weighted | |||||||||
Total | Balance | Average | Average Maturity | ||||||||
Debt | Outstanding | Interest Rate | In Years | ||||||||
Mortgage notes payable | |||||||||||
Fixed rate - secured | 62% | $ | 1,029,735 | 6.3% | 5.0 | ||||||
Tax exempt variable (1) | 14% | 233,138 | 4.5% | 22.4 | |||||||
Total mortgage notes payable | 76% | 1,262,873 | 6.0% | 8.2 | |||||||
Exchangeable bonds (2) | 14% | 225,000 | 3.6% | ||||||||
Line of credit - secured (3) | 6% | 100,000 | 5.4% | ||||||||
Line of credit - unsecured (4) | 3% | 61,000 | 6.2% | ||||||||
Line of credit - unsecured (5) | 1% | 8,818 | 5.6% | ||||||||
Total lines of credit | 10% | 169,818 | 5.4% | ||||||||
Total debt | 100% | $ | 1,657,691 | 5.7% | |||||||
Weighted | |||||||||||
Scheduled principal payments (excludes lines of credit) | Average | ||||||||||
Interest Rate | |||||||||||
2008 | $ | 116,357 | 6.8% | ||||||||
2009 | 24,689 | 7.2% | |||||||||
2010 | 154,813 | 8.0% | |||||||||
2011 | 166,545 | 6.3% | |||||||||
2012 | 32,183 | 5.2% | |||||||||
Thereafter | 993,286 | 5.1% | |||||||||
Total | $ | 1,487,873 | 5.7% | ||||||||
Capitalized interest for the twelve months ended December 31, 2007 was approximately $5.1 million. | |||||||||||
(1) | Substianally all tax exempt variable debt is subject to interest rate protection agreements. | ||||||||||
(2) | Exchangeable bonds total $225 million and mature in November 2025. This is an unsecured obligation of the operating partnership, and is | ||||||||||
fully and unconditionally guaranteed by Essex Property Trust, Inc. | |||||||||||
(3) | Secured line of credit commitment is $100 million and matures in January 2009. This line is secured by eight of Essex's apartment communities. | ||||||||||
The underlying interest rate is currently the Freddie Mac Reference Rate plus .55% to .59%. | |||||||||||
(4) | Unsecured line of credit commitment is $200 million and matures in March 2009. | ||||||||||
The underlying interest rate on this line is based on a tiered rate structure tied to the Company's corporate ratings and is currently at LIBOR plus 0.80%. | |||||||||||
(5) | Unsecured revolving line of credit commitment is $10 million and matures in March 2008. | ||||||||||
The underlying interest rate on this line is based on the bank's Prime Rate less 2.0%. |
See Company's 10-K and 10-Q for additional disclosures
S-5
E S S E X P R O P E R T Y T R U S T, I N C. | ||||||||
Capitalization - December 31, 2007 | ||||||||
(Dollars and shares in thousands, except per share amounts) | ||||||||
Total debt | $ | 1,657,691 | ||||||
Common stock and potentially dilutive securities | ||||||||
Common stock outstanding | 24,877 | |||||||
Limited partnership units (1) | 2,486 | |||||||
Options-treasury method | 150 | |||||||
Total common stock and potentially dilutive securities | 27,513 | shares | ||||||
Common stock price per share as of December 31, 2007 | $ | 97.49 | ||||||
Market value of common stock and potentially dilutive securities | $ | 2,682,242 | ||||||
Perpetual preferred units/stock | $ | 304,500 | ||||||
Total equity capitalization | $ | 2,986,742 | ||||||
Total market capitalization | $ | 4,644,433 | ||||||
Ratio of debt to total market capitalization | 35.7% | |||||||
(1) | Assumes conversion of all outstanding operating partnership interests in the Operating Partnership into shares of the Company's common stock. | |||||||
See Company's 10-K and 10-Q for additional disclosures
S-6
E S S E X P R O P E R T Y T R U S T, I N C. | |||||||||||||||||||||||||||||||||||||||||
Property Operating Results - Quarter ended December 31, 2007 and 2006 | |||||||||||||||||||||||||||||||||||||||||
(Dollars in thousands) | �� | ||||||||||||||||||||||||||||||||||||||||
Southern California | Northern California | Seattle Metro | Other real estate assets (1) | Total | |||||||||||||||||||||||||||||||||||||
2007 | 2006 | % Change | 2007 | 2006 | % Change | 2007 | 2006 | % Change | 2007 | 2006 | % Change | 2007 | 2006 | % Change | |||||||||||||||||||||||||||
Revenues: | |||||||||||||||||||||||||||||||||||||||||
Same-property revenue | $ | 46,751 | $ | 45,732 | 2.2% | $ | 18,686 | $ | 16,465 | 13.5% | $ | 15,058 | $ | 13,598 | 10.7% | $ | 522 | $ | 505 | 3.4% | $ | 81,017 | $ | 76,300 | 6.2% | ||||||||||||||||
Non-same property revenue (2) | 8,080 | 5,605 | 9,684 | 4,674 | 1,724 | 921 | 633 | 618 | 20,121 | 11,818 | |||||||||||||||||||||||||||||||
Total Revenues | $ | 54,831 | $ | 51,337 | $ | 28,370 | $ | 21,139 | $ | 16,782 | $ | 14,519 | $ | 1,155 | $ | 1,123 | $ | 101,138 | $ | 88,118 | |||||||||||||||||||||
Property operating expenses: | |||||||||||||||||||||||||||||||||||||||||
Same-property operating expenses | $ | 14,794 | $ | 14,340 | 3.2% | $ | 6,379 | $ | 5,870 | 8.7% | $ | 5,003 | $ | 4,869 | 2.8% | $ | 319 | $ | 367 | -13.1% | $ | 26,495 | $ | 25,446 | 4.1% | ||||||||||||||||
Non-same property operating expenses (2) | 2,588 | 1,510 | 3,516 | 1,731 | 487 | 258 | 1,499 | 987 | 8,090 | 4,486 | |||||||||||||||||||||||||||||||
Total property operating expenses | $ | 17,382 | $ | 15,850 | $ | 9,895 | $ | 7,601 | $ | 5,490 | $ | 5,127 | $ | 1,818 | $ | 1,354 | $ | 34,585 | $ | 29,932 | |||||||||||||||||||||
Net operating income (NOI): | |||||||||||||||||||||||||||||||||||||||||
Same-property NOI | $ | 31,957 | $ | 31,392 | 1.8% | $ | 12,307 | $ | 10,595 | 16.2% | $ | 10,055 | $ | 8,729 | 15.2% | $ | 203 | $ | 138 | 47.1% | $ | 54,522 | $ | 50,854 | 7.2% | ||||||||||||||||
Non-same property NOI (2) | |||||||||||||||||||||||||||||||||||||||||
Redevelopment communities | 3,927 | 4,082 | 3,291 | 2,826 | 922 | 663 | - | - | 8,140 | 7,571 | |||||||||||||||||||||||||||||||
Acquired communities | 1,565 | 13 | 2,877 | 117 | 315 | - | - | - | 4,757 | 130 | |||||||||||||||||||||||||||||||
Other real estate assets (1) | - | - | - | - | - | - | (866) | (369) | (866) | (369) | |||||||||||||||||||||||||||||||
Total non-same property NOI | 5,492 | 4,095 | 6,168 | 2,943 | 1,237 | 663 | (866) | (369) | 12,031 | 7,332 | |||||||||||||||||||||||||||||||
Total NOI | $ | 37,449 | $ | 35,487 | $ | 18,475 | $ | 13,538 | $ | 11,292 | $ | 9,392 | $ | (663) | $ | (231) | $ | 66,553 | $ | 58,186 | |||||||||||||||||||||
Same-property operating margin | 68% | 69% | 66% | 64% | 67% | 64% | 39% | 27% | 67% | 67% | |||||||||||||||||||||||||||||||
Same-property turnover percentage | 51% | 50% | 46% | 64% | 45% | 59% | 41% | 37% | 49% | 54% | |||||||||||||||||||||||||||||||
Same-property concessions | $ | 259 | $ | 107 | $ | 52 | $ | 92 | $ | 51 | $ | 40 | $ | 13 | $ | 14 | $ | 375 | $ | 253 | |||||||||||||||||||||
Average same-property concessions per turn (3) | $ | 189 | $ | 80 | $ | 112 | $ | 165 | $ | 98 | $ | 60 | $ | 403 | $ | 496 | $ | 157 | $ | 97 | |||||||||||||||||||||
Net operating income percentage of total | 56% | 61% | 27% | 23% | 17% | 16% | 0% | 0% | 100% | 100% | |||||||||||||||||||||||||||||||
Loss to lease (4) | $ | 2,698 | $ | 5,302 | $ | 647 | $ | n/a | $ | 8,647 | |||||||||||||||||||||||||||||||
Loss to lease as a percentage | |||||||||||||||||||||||||||||||||||||||||
of rental income | 1.2% | 4.8% | 0.9% | n/a | 2.3% | ||||||||||||||||||||||||||||||||||||
Reconciliation of apartment units at end of period | |||||||||||||||||||||||||||||||||||||||||
Same-property apartment units | 10,766 | 4,012 | 4,560 | 302 | 19,640 | ||||||||||||||||||||||||||||||||||||
Consolidated Apartment Units | 12,725 | 12,965 | 6,361 | 5,389 | 5,005 | 4,905 | 302 | 302 | 24,393 | 23,561 | |||||||||||||||||||||||||||||||
Joint Venture | 480 | 480 | 2,101 | 2,101 | 515 | 515 | - | - | 3,096 | 3,096 | |||||||||||||||||||||||||||||||
Under Development (5) | 543 | 543 | 409 | 238 | 127 | 127 | - | - | 1,079 | 908 | |||||||||||||||||||||||||||||||
Total apartment units at end of period | 13,748 | 13,988 | 8,871 | 7,728 | 5,647 | 5,547 | 302 | 302 | 28,568 | 27,565 | |||||||||||||||||||||||||||||||
Percentage of total | 48% | 51% | 31% | 28% | 20% | 20% | 1% | 1% | 100% | 100% | |||||||||||||||||||||||||||||||
Average same-property financial occupancy | 95.7% | 96.3% | 97.5% | 94.6% | 96.7% | 96.1% | 94.8% | 88.1% | 96.3% | 95.9% | |||||||||||||||||||||||||||||||
(1) | Other real estate assets consists of one community in Houston, TX, that is classified in same-property results and several other properties including consolidated commercial assets that are classified in non-same property results. Included in fourth quarter 2007 non-same property operating expenses are $1.1 million for supplemental taxes for prior periods, $0.4 million for commercial office expenses, and $0.5 million for miscellaneous expenses not charged directly to the communities, less $0.5 million for the elimination of earthquake insurance expense paid to a wholly owned captive insurance company. | ||||||||||||||||||||||||||||||||||||||||
(2) | Includes properties which subsequent to September 1, 2006 were either acquired or in a stage of development or redevelopment without stabilized operations. | ||||||||||||||||||||||||||||||||||||||||
(3) | Average same-property concessions per turn is the dollar amount per unit resulting from the same-property concessions divided by the product of the same-property turnover percentage times the same-property apartment units. | ||||||||||||||||||||||||||||||||||||||||
(4) | Loss to lease represents the annualized difference between market rents (without considering the impact of rental concessions) and contractual rents. These numbers include the Company's pro-rata interest in unconsolidated properties. | ||||||||||||||||||||||||||||||||||||||||
(5) | Fund II owns 395 of the units under development as of December 31, 2007. | ||||||||||||||||||||||||||||||||||||||||
See Company's 10-K and 10-Q for additional disclosures
S-7
E S S E X P R O P E R T Y T R U S T, I N C. | |||||||||||||||||||||||||||||||||||||||||
Property Operating Results - Twelve months ended December 31, 2007 and 2006 | |||||||||||||||||||||||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||||||||||||||||||||
Southern California | Northern California | Seattle Metro | Other real estate assets (1) | Total | |||||||||||||||||||||||||||||||||||||
2007 | 2006 | % Change | 2007 | 2006 | % Change | 2007 | 2006 | % Change | 2007 | 2006 | % Change | 2007 | 2006 | % Change | |||||||||||||||||||||||||||
Revenues: | |||||||||||||||||||||||||||||||||||||||||
Same-property revenue | $ | 185,060 | $ | 177,336 | 4.4% | $ | 60,024 | $ | 54,887 | 9.4% | $ | 56,427 | $ | 50,852 | 11.0% | $ | 2,015 | $ | 1,980 | 1.8% | $ | 303,526 | $ | 285,055 | 6.5% | ||||||||||||||||
Non-same property revenue (2) | 30,030 | 21,593 | 39,710 | 20,737 | 7,652 | 4,869 | 2,515 | 2,516 | 79,907 | 49,715 | |||||||||||||||||||||||||||||||
Total Revenues | $ | 215,090 | $ | 198,929 | $ | 99,734 | $ | 75,624 | $ | 64,079 | $ | 55,721 | $ | 4,530 | $ | 4,496 | $ | 383,433 | $ | 334,770 | |||||||||||||||||||||
Property operating expenses: | |||||||||||||||||||||||||||||||||||||||||
Same-property operating expenses | $ | 58,356 | $ | 56,741 | 2.8% | $ | 19,192 | $ | 18,075 | 6.2% | $ | 19,740 | $ | 18,883 | 4.5% | $ | 1,378 | $ | 1,413 | -2.5% | $ | 98,666 | $ | 95,112 | 3.7% | ||||||||||||||||
Non-same property operating expenses (2) | 9,394 | 6,219 | 15,399 | 7,642 | 2,202 | 1,700 | 2,763 | 3,725 | 29,758 | 19,286 | |||||||||||||||||||||||||||||||
Total property operating expenses | $ | 67,750 | $ | 62,960 | $ | 34,591 | $ | 25,717 | $ | 21,942 | $ | 20,583 | $ | 4,141 | $ | 5,138 | $ | 128,424 | $ | 114,398 | |||||||||||||||||||||
Net operating income (NOI): | |||||||||||||||||||||||||||||||||||||||||
Same-property NOI | $ | 126,704 | $ | 120,595 | 5.1% | $ | 40,832 | $ | 36,812 | 10.9% | $ | 36,687 | $ | 31,969 | 14.8% | $ | 637 | $ | 567 | 12.3% | $ | 204,860 | $ | 189,943 | 7.9% | ||||||||||||||||
Non-same property NOI (2) | |||||||||||||||||||||||||||||||||||||||||
Redevelopment communities | 15,918 | 15,361 | 12,868 | 11,282 | 4,430 | 3,169 | - | - | 33,216 | 29,812 | |||||||||||||||||||||||||||||||
Acquired communities | 4,718 | 13 | 11,443 | 1,813 | 1,020 | - | - | - | 17,181 | 1,826 | |||||||||||||||||||||||||||||||
Other real estate assets (1) | - | - | - | - | - | - | (248) | (1,209) | (248) | (1,209) | |||||||||||||||||||||||||||||||
Total non-same property NOI | 20,636 | 15,374 | 24,311 | 13,095 | 5,450 | 3,169 | (248) | (1,209) | 50,149 | 30,429 | |||||||||||||||||||||||||||||||
Total NOI | $ | 147,340 | $ | 135,969 | $ | 65,143 | $ | 49,907 | $ | 42,137 | $ | 35,138 | $ | 389 | $ | (642) | $ | 255,009 | $ | 220,372 | |||||||||||||||||||||
Same-property operating margin | 68% | 68% | 68% | 67% | 65% | 63% | 32% | 29% | 67% | 67% | |||||||||||||||||||||||||||||||
Same-property turnover percentage | 55% | 53% | 48% | 56% | 58% | 59% | 34% | 46% | 54% | 55% | |||||||||||||||||||||||||||||||
Same-property concessions | $ | 985 | $ | 517 | $ | 173 | $ | 158 | $ | 109 | $ | 121 | $ | 57 | $ | 79 | $ | 1,323 | $ | 875 | |||||||||||||||||||||
Average same-property concessions per turn (3) | $ | 169 | $ | 91 | $ | 95 | $ | 82 | $ | 41 | $ | 46 | $ | 100 | $ | 134 | $ | 122 | $ | 81 | |||||||||||||||||||||
Average same-property financial occupancy | 95.6% | 96.3% | 96.8% | 96.7% | 96.3% | 96.8% | 92.5% | 90.6% | 95.9% | 96.5% | |||||||||||||||||||||||||||||||
(1) | Included in Other real estate assets is one community in Houston, TX, that is classified in same-property results and other rental properties including commercial properties that are classified in non-same property results. Included in 2007 non-same property operating expenses are $0.5 million for supplemental taxes for prior periods, $1.3 million for commercial office expenses, and $3.1 million for miscellaneous expenses not charged directly to the communities, less $2.1 million for the elimination of earthquake insurance expense paid to a wholly owned captive insurance company. | ||||||||||||||||||||||||||||||||||||||||
(2) | Includes properties which subsequent to January 1, 2006 were either acquired or in a stage of development or redevelopment without stabilized operations. | ||||||||||||||||||||||||||||||||||||||||
(3) | Average same-property concessions per turn is the dollar amount per unit resulting from the same-property concessions divided by the product of the same-property turnover percentage times the same-property apartment units. | ||||||||||||||||||||||||||||||||||||||||
See Company's 10-K and 10-Q for additional disclosures
S-7.1
E S S E X P R O P E R T Y T R U S T, I N C. | |||||||||||||||||||||||||
Revenue by County - Quarters ended December 31, 2007, December 31, 2006 and September 30, 2007 | |||||||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||||
Average Property Rental Rates | Property Revenue | Property Revenue | |||||||||||||||||||||||
December 31, | December 31, | December 31, | December 31, | September 30, | Sequential | ||||||||||||||||||||
Region | Units | 2007 | 2006 | % Change | 2007 | 2006 | % Change | 2007 | % Change | ||||||||||||||||
Southern California | |||||||||||||||||||||||||
Ventura County | 2,844 | $ | 1,392 | $ | 1,364 | 2.1% | $ | 11,902 | $ | 11,759 | 1.2% | $ | 11,929 | -0.2% | |||||||||||
Los Angeles County | 2,754 | 1,741 | 1,645 | 5.8% | 14,895 | 14,453 | 3.1% | 14,856 | 0.3% | ||||||||||||||||
Orange County | 2,037 | 1,534 | 1,490 | 3.0% | 9,389 | 9,175 | 2.3% | 9,368 | 0.2% | ||||||||||||||||
San Diego County | 2,616 | 1,068 | 1,039 | 2.8% | 8,556 | 8,389 | 2.0% | 8,447 | 1.3% | ||||||||||||||||
Santa Barbara County | 239 | 1,750 | 1,663 | 5.2% | 1,324 | 1,259 | 5.2% | 1,208 | 9.6% | ||||||||||||||||
Riverside County | 276 | 830 | 811 | 2.3% | 685 | 697 | -1.7% | 673 | 1.8% | ||||||||||||||||
Total same-property | 10,766 | 1,423 | 1,373 | 3.6% | 46,751 | 45,732 | 2.2% | 46,481 | 0.6% | ||||||||||||||||
Ventura County | 160 | 1,317 | 616 | 13 | 635 | -3.0% | |||||||||||||||||||
Los Angeles County | 1,036 | 1,569 | 4,325 | 4,345 | 4,340 | -0.3% | |||||||||||||||||||
San Diego County | 655 | 1,365 | 2,697 | 1,247 | 2,634 | 2.4% | |||||||||||||||||||
Santa Barbara County | 108 | 1,366 | 442 | - | 426 | 3.8% | |||||||||||||||||||
Non-same property | 1,959 | 1,469 | 8,080 | 5,605 | 8,035 | 0.6% | |||||||||||||||||||
Northern California | |||||||||||||||||||||||||
San Francisco MSA | 175 | 1,747 | 1,596 | 9.5% | 930 | 831 | 11.9% | 894 | 4.0% | ||||||||||||||||
Santa Clara County | 1,870 | 1,581 | 1,437 | 10.0% | 9,027 | 8,080 | 11.7% | 8,904 | 1.4% | ||||||||||||||||
San Mateo County | 697 | 1,518 | 1,244 | 22.0% | 3,182 | 2,461 | 29.3% | 2,983 | 6.7% | ||||||||||||||||
Alameda County | 200 | 1,286 | 1,168 | 10.1% | 800 | 707 | 13.2% | 765 | 4.6% | ||||||||||||||||
Contra Costa County | 1,070 | 1,476 | 1,417 | 4.2% | 4,747 | 4,386 | 8.2% | 4,724 | 0.5% | ||||||||||||||||
Total same-property | 4,012 | 1,535 | 1,392 | 10.3% | 18,686 | 16,465 | 13.5% | 18,270 | 2.3% | ||||||||||||||||
Santa Clara County | 578 | 1,452 | 2,537 | 1,311 | 1,857 | 36.6% | |||||||||||||||||||
San Mateo County | 71 | 1,626 | 356 | 203 | 333 | 6.9% | |||||||||||||||||||
Alameda County | 916 | 1,219 | 3,296 | 3,160 | 3,171 | 3.9% | |||||||||||||||||||
Contra Costa County | 650 | 1,586 | 2,966 | - | 1,545 | 92.0% | |||||||||||||||||||
Other | 134 | 1,324 | 529 | - | 532 | -0.6% | |||||||||||||||||||
Non-same property | 2,349 | 1,396 | 9,684 | 4,674 | 7,438 | 30.2% | |||||||||||||||||||
Seattle Metro | |||||||||||||||||||||||||
Total same-property | 4,560 | 1,048 | 949 | 10.4% | 15,058 | 13,598 | 10.7% | 14,729 | 2.2% | ||||||||||||||||
Non-same property | 445 | 1,234 | 1,724 | 921 | 1,675 | 2.9% | |||||||||||||||||||
Other real estate assets | 302 | 576 | 578 | -0.3% | 522 | 505 | 3.4% | 508 | 2.8% | ||||||||||||||||
Total same-property revenue | 19,640 | $ | 1,346 | $ | 1,266 | 6.3% | $ | 81,017 | $ | 76,300 | 6.2% | $ | 79,988 | 1.3% | |||||||||||
Total non-same property revenue | 4,753 | $ | 1,411 | $ | 19,488 | $ | 11,200 | $ | 17,148 | 13.6% | |||||||||||||||
See Company's 10-K and 10-Q for additional disclosures
S-8
E S S E X P R O P E R T Y T R U S T, I N C. | ||||||||||||||||||||
Revenue by County - Twelve months ended December 31, 2007 and 2006 | ||||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||
Average Property Rental Rates | Property Revenue | |||||||||||||||||||
Region | Units | YTD 2007 | YTD 2006 | % Change | YTD 2007 | YTD 2006 | % Change | |||||||||||||
Southern California | ||||||||||||||||||||
Ventura County | 2,844 | $ | 1,391 | $ | 1,331 | 4.5% | $ | 47,659 | $ | 46,250 | 3.0% | |||||||||
Los Angeles County | 2,754 | 1,694 | 1,592 | 6.4% | 58,723 | 55,562 | 5.7% | |||||||||||||
Orange County | 2,037 | 1,517 | 1,445 | 5.0% | 37,190 | 35,886 | 3.6% | |||||||||||||
San Diego County | 2,616 | 1,055 | 1,020 | 3.4% | 33,733 | 32,470 | 3.9% | |||||||||||||
Santa Barbara County | 239 | 1,716 | 1,530 | 12.2% | 5,000 | 4,437 | 12.7% | |||||||||||||
Riverside County | 276 | 820 | 812 | 1.0% | 2,755 | 2,731 | 0.9% | |||||||||||||
Total same-property | 10,766 | 1,403 | 1,335 | 5.1% | 185,060 | 177,336 | 4.4% | |||||||||||||
Ventura County | 160 | 1,281 | 2,443 | 13 | ||||||||||||||||
Los Angeles County | 1,036 | 1,537 | 17,386 | 16,719 | ||||||||||||||||
San Diego County | 655 | 1,337 | 8,920 | 4,861 | ||||||||||||||||
Santa Barbara County | 108 | 1,338 | 1,281 | - | ||||||||||||||||
Non-same property | 1,959 | 1,438 | 30,030 | 21,593 | ||||||||||||||||
Northern California | ||||||||||||||||||||
San Francisco MSA | 175 | 1,694 | 1,540 | 10.0% | 3,558 | 3,267 | 8.9% | |||||||||||||
Santa Clara County | 1,870 | 1,529 | 1,373 | 11.4% | 34,917 | 31,219 | 11.8% | |||||||||||||
Alameda County | 200 | 1,244 | 1,127 | 10.4% | 3,039 | 2,783 | 9.2% | |||||||||||||
Contra Costa County | 1,070 | 1,454 | 1,377 | 5.6% | 18,510 | 17,618 | 5.1% | |||||||||||||
Total same-property | 3,315 | 1,496 | 1,368 | 9.4% | 60,024 | 54,887 | 9.4% | |||||||||||||
Santa Clara County | 578 | 1,404 | 7,158 | 5,348 | ||||||||||||||||
San Mateo County | 768 | 1,412 | 12,859 | 3,163 | ||||||||||||||||
Alameda County | 916 | 1,176 | 12,930 | 12,227 | ||||||||||||||||
Contra Costa County | 650 | 1,586 | 5,220 | - | ||||||||||||||||
Other | 134 | 1,349 | 1,544 | - | ||||||||||||||||
Non-same property | 3,046 | 1,374 | 39,711 | 20,738 | ||||||||||||||||
Seattle Metro | ||||||||||||||||||||
Total same-property | 4,452 | 1,008 | 899 | 12.1% | 56,427 | 50,852 | 11.0% | |||||||||||||
Non-same property | 553 | 1,175 | 7,652 | 4,869 | ||||||||||||||||
Other real estate assets | 302 | 578 | 577 | 0.2% | 2,015 | 1,980 | 1.8% | |||||||||||||
Total same-property revenue | 18,835 | $ | 1,314 | $ | 1,225 | 7.3% | $ | 303,526 | $ | 285,055 | 6.5% | |||||||||
Total non-same property revenue | 5,558 | $ | 1,377 | $ | 77,393 | $ | 47,200 | |||||||||||||
See Company's 10-K and 10-Q for additional disclosures
S-8.1
E S S E X P R O P E R T Y T R U S T, I N C. | |||||||||||||||||||
Development Pipeline - December 31, 2007 | |||||||||||||||||||
(Dollars in millions) | |||||||||||||||||||
Estimated Units | Total Costs Incurred to Date | Estimated Remaining Costs | Estimated Total Cost | Construction Start | Construction Complete | Initial Occupancy | Stabilized Operations | ||||||||||||
Development Projects | |||||||||||||||||||
Project Name | Location | ||||||||||||||||||
Belmont Station | Los Angeles, CA | 275 | $ 55.5 | $ 15.6 | $ 71.1 | Jan-06 | May-08 | Apr-08 | Dec-08 | ||||||||||
The Grand (1) | Oakland, CA | 238 | 42.0 | 54.2 | 96.2 | Dec-06 | Dec-08 | Dec-08 | May-09 | ||||||||||
Fourth Street (2) | Berkeley, CA | 171 | 13.4 | 56.0 | 69.4 | Apr-08 | Feb-10 | Feb-10 | Aug-10 | ||||||||||
Consolidated - Development Projects | 684 | 110.9 | 125.8 | 236.7 | |||||||||||||||
Development Projects - Fund II | |||||||||||||||||||
Project Name | Location | ||||||||||||||||||
Eastlake 2851 | Seattle, WA | 127 | 24.7 | 10.7 | 35.4 | Aug-06 | Apr-08 | Mar-08 | Jul-08 | ||||||||||
Studio 40-41 | Studio City, CA | 149 | 30.7 | 29.9 | 60.6 | Jun-07 | Jun-09 | Mar-09 | Aug-09 | ||||||||||
Cielo | Chatsworth, CA | 119 | 12.3 | 27.1 | 39.4 | Jun-07 | May-09 | May-09 | Sep-09 | ||||||||||
Fund II - Development Projects | 395 | 67.7 | 67.7 | 135.4 | |||||||||||||||
Total - Development Projects | 1,079 | 178.6 | 193.5 | 372.1 | |||||||||||||||
Predevelopment Projects | |||||||||||||||||||
Project Name | Location | ||||||||||||||||||
Broadway Heights (3) | Seattle, WA | - | - | - | - | Apr-08 | Jan-10 | Jan-10 | Nov-10 | ||||||||||
Essex-Hollywood | Hollywood, CA | - | - | - | - | Jun-08 | Jun-10 | Jun-10 | Dec-10 | ||||||||||
Tasman Place (4) | Sunnyvale, CA | - | - | - | - | Jun-08 | Jun-10 | Jun-10 | Sep-11 | ||||||||||
Cadence Campus | San Jose, CA | - | - | - | - | Jan-10 | Sep-13 | Jan-12 | Jul-14 | ||||||||||
Main Street (3) | Walnut Creek, CA | - | - | - | - | Jan-10 | Jan-12 | Jan-12 | Jul-12 | ||||||||||
Total - Predevelopment Projects | 1,658 | 97.1 | 411.3 | 508.4 | |||||||||||||||
Land Held for Future Development (5) | |||||||||||||||||||
Project Name | Location | ||||||||||||||||||
City Centre | Moorpark, CA | 200 | - | - | - | ||||||||||||||
Citiplace | San Diego, CA | 141 | - | - | - | ||||||||||||||
Park Boulevard (6) | Palo Alto, CA | 27 | - | - | - | ||||||||||||||
90 Archer | San Jose, CA | 42 | - | - | - | ||||||||||||||
View Pointe | Newcastle, WA | 24 | - | - | - | ||||||||||||||
434 | 25.5 | - | 25.5 | ||||||||||||||||
Grand Total - Development Pipeline | 3,171 | $ 301.2 | $ 604.8 | $ 906.0 | |||||||||||||||
(1) | Development project includes approximately 7,800 square feet of retail space. | ||||||||||||||||||
(2) | Development project includes approximately 15,500 square feet of retail space. | ||||||||||||||||||
(3) | The Company has entered into a joint venture development project with a third-party to develop this property. Essex will have a 50% interest in the project. | ||||||||||||||||||
(4) | Property in contract to be purchased by the Company with non-refundable deposits and option payments. | ||||||||||||||||||
(5) | The Company owns land in various stages of entitlement that is being held for future development. | ||||||||||||||||||
(6) | The Company has entered into an option agreement to sell a land parcel to the City of Palo Alto. During the option period the Company will continue to complete the entitlement process. | ||||||||||||||||||
See Company's 10-K and 10-Q for additional disclosures
S-9
E S S E X P R O P E R T Y T R U S T, I N C. | |||||||||||||||||||
Redevelopment Pipeline - December 31, 2007 | |||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||
Total | Estimated | Estimated | NOI | YTD 2007 | Units completed | ||||||||||||||
Incurred | Remaining | Total | Redevelopment | For the twelve months ended | Rehab | and available | |||||||||||||
Region/Project Name | Units | To Date | Cost | Cost | Start Date | 2007 | 2006 | Vacancy Loss | for rent | ||||||||||
Approved - Redevelopment Projects (1) | |||||||||||||||||||
Woodland Commons, Bellevue, WA | 236 | $ 1,240 | $ 10,539 | $ 11,779 | Jun-07 | ||||||||||||||
Foothill Commons, Bellevue, WA | 360 | 1,298 | 17,506 | 18,804 | Jun-07 | ||||||||||||||
Marina Cove, Santa Clara, CA | 292 | 805 | 9,053 | 9,858 | Jun-07 | ||||||||||||||
888 | 3,343 | 37,098 | 40,441 | ||||||||||||||||
Active - Redevelopment Projects | |||||||||||||||||||
Southern California | |||||||||||||||||||
Mira Monte, Mira Mesa, CA (2) | 355 | 5,900 | 160 | 6,060 | Sep-04 | $ 3,705 | $ 3,271 | $ 27 | 350 | ||||||||||
Avondale at Warner Center, Woodland Hills, CA | 446 | 11,188 | 2,882 | 14,070 | Oct-04 | 5,001 | 4,751 | 124 | 198 | ||||||||||
Pathways, Long Beach, CA | 296 | 5,788 | 4,933 | 10,721 | Jun-06 | 3,419 | 3,591 | 423 | 162 | ||||||||||
Highridge, Rancho Palos Verdes, CA | 255 | 1,976 | 14,087 | 16,063 | Jan-07 | 3,793 | 3,749 | 46 | 7 | ||||||||||
1,352 | 24,852 | 22,062 | 46,914 | 15,918 | 15,362 | 620 | 717 | ||||||||||||
Northern California | |||||||||||||||||||
The Montclaire - Phase I - III, Sunnyvale, CA | 390 | 5,688 | 9,418 | 15,106 | Aug-06 | 4,330 | 3,753 | 266 | 169 | ||||||||||
Boulevard (Treetops), Fremont, CA | 172 | 5,757 | 2,630 | 8,387 | Sep-06 | 1,455 | 1,424 | 140 | 46 | ||||||||||
Bridgeport (Summerhill Commons), Newark, CA | 184 | 3,869 | 717 | 4,586 | Oct-06 | 2,038 | 1,651 | 8 | - | ||||||||||
Wimbledon Woods, Hayward, CA (3) | 560 | 7,195 | 2,155 | 9,350 | Oct-06 | 5,044 | 4,454 | 8 | 3 | ||||||||||
1,306 | 22,509 | 14,920 | 37,429 | 12,867 | 11,282 | 422 | 218 | ||||||||||||
Seattle Metro (4) | |||||||||||||||||||
Palisades - Phase I and II, Bellevue, WA (2) | 192 | 6,461 | 490 | 6,951 | Sep-04 | 1,812 | 1,133 | 9 | 192 | ||||||||||
Sammamish View, Bellevue, WA (3) | 153 | 3,875 | - | 3,875 | Dec-05 | 1,521 | 1,251 | 166 | 153 | ||||||||||
345 | 10,336 | 490 | 10,826 | 3,333 | 2,384 | 175 | 345 | ||||||||||||
Total Active - Redevelopment Projects | 3,003 | 57,697 | 37,472 | 95,169 | 32,118 | 29,028 | 1,217 | 1,280 | |||||||||||
Consolidated - Redevelopment Projects | 3,891 | 61,040 | 74,570 | 135,610 | 32,118 | 29,028 | 1,217 | 1,280 | |||||||||||
Redevelopment Projects - Fund II | |||||||||||||||||||
Regency Tower - Phase I - II, Oakland, CA | 178 | 3,727 | �� 749 | 4,476 | Nov-05 | 1,551 | 1,101 | 30 | 96 | ||||||||||
The Renaissance, Los Angeles, CA | 168 | 3,632 | 1,368 | 5,000 | Oct-06 | 2,175 | 666 | 299 | 137 | ||||||||||
Fund II - Redevelopment Projects | 346 | 7,359 | 2,117 | 9,476 | 3,726 | 1,767 | 329 | 233 | |||||||||||
Grand Total - Redevelopment Pipeline | 4,237 | $ 68,399 | $ 76,687 | $ 145,086 | $ 35,844 | $ 30,795 | $ 1,546 | 1,513 | |||||||||||
(1) | Operations at these communities were not destabilized as of Q4 2007, and therefore the communities are classified in Same-Property operations. | ||||||||||||||||||
(2) | This community was restabilized during the end of first quarter of 2007, and will be included in Same-Property operations starting the second quarter of 2008. | ||||||||||||||||||
(3) | This community was restabilized during the end of third quarter of 2007, and will be included in Same-Property operations starting the fourth quarter of 2008. | ||||||||||||||||||
(4) | Bridle Trails, a 108-unit community in Kirkland, WA, was added back to Same-Property results in Q3 2007, and will be added to YTD Same-Property results in 2008. | ||||||||||||||||||
See Company's 10-K and 10-Q for additional disclosures
S-10
E S S E X P R O P E R T Y T R U S T, I N C. | |||||||||||||||||||||||
Investments - December 31, 2007 | Essex | Total Fund | Property Revenue | NOI | |||||||||||||||||||
(Dollars in thousands) | Book | Original | Debt | For the twelve months ended | For the twelve months ended | ||||||||||||||||||
Value | Cost | Units | Amount | 2007 | 2006 | % Change | 2007 | 2006 | % Change | ||||||||||||||
Joint Ventures | |||||||||||||||||||||||
Essex Apartment Value Fund II, L.P. (Fund II) (1) | |||||||||||||||||||||||
Southern California | |||||||||||||||||||||||
Parcwood, Corona, CA | 312 | $ | 25,353 | ||||||||||||||||||||
Renaissance, Los Angeles, CA | 168 | 23,236 | |||||||||||||||||||||
Total Southern California | 480 | 48,589 | $ | 7,784 | $ | 5,125 | 51.9% | $ | 4,673 | $ | 2,943 | 58.8% | |||||||||||
Northern California | |||||||||||||||||||||||
Alderwood Park, Newark, CA | 96 | 7,062 | |||||||||||||||||||||
Carlmont Woods, Belmont, CA | 195 | 12,913 | |||||||||||||||||||||
Davey Glen, Belmont, CA | 69 | 6,654 | |||||||||||||||||||||
Enclave, San Jose, CA | 637 | 80,606 | |||||||||||||||||||||
Harbor Cove, Foster City, CA | 400 | 34,821 | |||||||||||||||||||||
Regency Tower, Oakland, CA | 178 | 11,052 | |||||||||||||||||||||
Total Northern California | 1,575 | 153,108 | 26,696 | 22,342 | 19.5% | 15,775 | 12,418 | 27.0% | |||||||||||||||
Seattle Metro | |||||||||||||||||||||||
Echo Ridge, Snoqualmie, WA | 120 | 13,253 | |||||||||||||||||||||
Morning Run, Monroe, WA | 222 | 13,703 | |||||||||||||||||||||
Tower @ 801, Seattle, WA | 173 | 19,310 | |||||||||||||||||||||
Total Seattle Metro | 515 | 46,266 | 7,820 | 7,200 | 8.6% | 4,739 | 4,270 | 11.0% | |||||||||||||||
Total - Operating Communities | 2,570 | 247,963 | $ | 42,300 | $ | 34,667 | 22.0% | $ | 25,187 | $ | 19,631 | 28.3% | |||||||||||
Fund II - Development Pipeline (2) | |||||||||||||||||||||||
Eastlake 2851 on Lake Union, Seattle, WA | 127 | 15,159 | |||||||||||||||||||||
Studio 40-41, Studio City, CA | 149 | 8,650 | |||||||||||||||||||||
Cielo, Chatsworth, CA | 119 | 1,071 | |||||||||||||||||||||
Total - Development Communities | 395 | 24,880 | |||||||||||||||||||||
Line of credit | 4,400 | ||||||||||||||||||||||
Total - Fund II | $ | 57,699 | $ | 513,383 | 2,965 | $ | 277,243 | ||||||||||||||||
Capitalized costs | 720 | ||||||||||||||||||||||
58,419 | |||||||||||||||||||||||
Waterstone at Fremont (formerly | |||||||||||||||||||||||
known as Mountain Vista) (3) | 1,182 | ||||||||||||||||||||||
Other (4) | 4,590 | ||||||||||||||||||||||
$ | 64,191 | ||||||||||||||||||||||
(1) | The Company has a 28.2% interest as a general partner and limited partner in Fund II, and may earn promote income if Fund II exceds cetain financial return benchmarks. | ||||||||||||||||||||||
(2) | See S-9 for more detail about the Fund II Development Pipeline. | ||||||||||||||||||||||
(3) | The Company recorded $0.2 milion in preferred interest payments in Q4 2007, and unpaid preferred interest of approximately $7.5 million was paid in January 2008. | ||||||||||||||||||||||
(4) | Other investments include one development joint venture in preliminary stages located in Southern California totaling $4.1 million and a real estate technology investment. |
See Company's 10-K and 10-Q for additional disclosures
S-11
E S S E X P R O P E R T Y T R U S T, I N C. | |||||||||||||||
Consolidated Co-Investments - December 31, 2007 | |||||||||||||||
(Dollars in thousands) | |||||||||||||||
The Company enters into co-investment transactions with third party developers, owners and investors of apartment communities. In accordance with GAAP, the Company consolidates certain of these co-investment transactions, resulting in minority interests corresponding to the ownership interest of the third-party developer, owner or investor. | |||||||||||||||
The following table summarizes the consolidated co-investment transactions for operating properties: | |||||||||||||||
Operations for the quarter ended | |||||||||||||||
Balance as of December 31, 2007 | December 31, 2007 | ||||||||||||||
Investment in | Related | Minority | DownREIT | Operating | |||||||||||
Real Estate | Debt | Interest | Units (1) | Revenue | Expenses | NOI | |||||||||
DownREITs: | |||||||||||||||
Anchor Village | $ 11,433 | $ 10,750 | $ 2,578 | 117,154 | $ 757 | $ 296 | $ 461 | ||||||||
Barkley Apartments | 9,244 | 4,883 | 2,369 | 80,302 | 646 | 233 | 413 | ||||||||
Brookside Oaks | 35,091 | 14,130 | 3,974 | 99,073 | 711 | 229 | 482 | ||||||||
Capri at Sunny Hills | 17,175 | 19,150 | 4,314 | 179,366 | 620 | 148 | 472 | ||||||||
Brentwood Apartments | 15,679 | 9,334 | 2,568 | 58,884 | 615 | 167 | 448 | ||||||||
Hidden Valley (Parker Ranch) | 44,192 | 33,303 | 6,089 | 62,647 | 1,324 | 315 | 1,009 | ||||||||
Highridge Apartments | 22,609 | 44,807 | 6,484 | 312,633 | 1,363 | 396 | 967 | ||||||||
Montejo Apartments | 8,984 | 5,812 | 1,596 | 38,038 | 479 | 154 | 325 | ||||||||
Thomas Jefferson Apartments | 27,248 | 19,859 | 7,067 | 62,873 | 707 | 225 | 482 | ||||||||
Treehouse Apartments | 11,845 | 7,825 | 3,299 | 75,700 | 604 | 198 | 406 | ||||||||
Valley Park Apartments | 16,324 | 9,913 | 1,275 | 56,633 | 745 | 181 | 564 | ||||||||
Villa Angelina Apartments | 21,037 | 13,405 | 3,003 | 57,709 | 997 | 267 | 730 | ||||||||
240,861 | 193,171 | 44,616 | 1,201,012 | 9,568 | 2,809 | 6,759 | |||||||||
Other Co-investments: | |||||||||||||||
Derian Office Building (2) | 16,087 | - | - | n/a | 483 | 144 | 339 | ||||||||
Hillsdale Garden Apartments (3) | 115,537 | - | 21,662 | n/a | 3,182 | 1,289 | 1,893 | ||||||||
(1) | Represents the number of DownREIT units that are currently outstanding. Generally, DownREIT units can be redeemed at the holder's election for cash equal to the current price of Essex's common stock. | ||||||||||||||
(2) | Essex has mortgage loans to the owners of this property with an aggregate principal balance in excess of the book value of the property as of December 31, 2007. | ||||||||||||||
(3) | During the second quarter of 2007, the Company entered into a joint venture partnership with a third-party, and the Company contributed the improvements to the property for a 81.5% interest and the joint venture partner contributed the title to the land for an 18.5% interest in the partnership. | ||||||||||||||
See Company's 10-K and 10-Q for additional disclosures
S-12
E S S E X P R O P E R T Y T R U S T, I N C. | |||||||||||||||||||
Income From Discontinued Operations and Selected Financial Data - December 31, 2007 | |||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||
Income from Discontinued Operations | |||||||||||||||||||
For the three months ended December 31, 2007, the Company sold four apartment communities in the Portland metro, and during the nine months ended September 30, 2007, the Company sold condominium units at Peregrine Point, and during the three months ended March 31, 2007, the Company sold the City Heights property which was held for sale as of December 31, 2006. For the year ended December 31, 2006, the Company sold the Vista Capri East, Casa Tierra, Vista Pointe, and Emerald Palms apartment communities, as well as the Diamond Valley Recreational RV park, and condominium units at Peregrine Point. | |||||||||||||||||||
Three Months Ended | Twelve Months Ended | ||||||||||||||||||
December 31, | December 31, | ||||||||||||||||||
2007 | 2006 | $ | 2007 | $ | 2006 | ||||||||||||||
Rental revenues | $ | 1,558 | $ | 4,600 | 9,466 | 19,537 | |||||||||||||
Interest and other income | - | 20 | 290 | 41 | |||||||||||||||
Revenues | 1,558 | 4,620 | 9,756 | 19,578 | |||||||||||||||
Property operating expenses | (470) | (1,754) | (3,779) | (7,611) | |||||||||||||||
Interest expense | - | (580) | (416) | (2,314) | |||||||||||||||
Depreciation and amortization | (204) | (1,099) | (1,861) | (4,940) | |||||||||||||||
Minority interests | (73) | (284) | (129) | (1,199) | |||||||||||||||
Expenses | (747) | (3,717) | (6,185) | (16,064) | |||||||||||||||
Gain on sale (1) | 51,905 | 7,471 | 52,874 | 20,503 | |||||||||||||||
Gain on sale - City Heights | - | - | 78,306 | - | |||||||||||||||
Equity income co-investments | - | - | - | 238 | |||||||||||||||
Promote interest and subordination fees | - | - | 10,290 | 8,221 | |||||||||||||||
Minority interests - OP units | (4,282) | (791) | (6,443) | (2,730) | |||||||||||||||
Minority interests - City Heights | - | - | (64,624) | - | |||||||||||||||
Net gain on sale of real estate | 47,623 | 6,680 | 70,403 | 26,232 | |||||||||||||||
Income from discontinued operations | $ | 48,434 | $ | 7,583 | 73,974 | 29,746 | |||||||||||||
Common Stock Equivalents | |||||||||||||||||||
Q4 2007 | Actual | YTD 2007 | |||||||||||||||||
Weighted Avg. | As of 12/31/07 | Weighted Avg. | |||||||||||||||||
Common Shares | 25,082,481 | 24,876,737 | 24,548,003 | ||||||||||||||||
Stock Options | 149,556 | 149,556 | 234,340 | ||||||||||||||||
Exchangeable Bonds | 119,621 | - | 318,631 | ||||||||||||||||
Weighted Avg. Shares Diluted - EPS | 25,351,658 | 25,026,293 | 25,100,974 | ||||||||||||||||
Vested Series Z Incentive Units | 213,205 | 213,205 | 213,126 | ||||||||||||||||
Operating Limited Partnership Units | 2,273,653 | 2,273,472 | 2,282,568 | ||||||||||||||||
Weighted Avg. Shares Diluted - FFO | 27,838,516 | 27,512,970 | 27,596,668 | ||||||||||||||||
(1) | For 2007, amount includes gain on sale of the four Portland properties and Peregrine Point condominum units. The gain on sale and related minority interest recorded in Q1 2007 for City Heights is presented separately. | ||||||||||||||||||
See Company's 10-K and 10-Q for additional disclosures
S-13