![](https://capedge.com/proxy/8-K/0001140361-09-013847/ex99_11.jpg)
Essex Property Trust, Inc.
NAREIT Institutional Investor Forum
June 3-5, 2009
![](https://capedge.com/proxy/8-K/0001140361-09-013847/ex99_12.jpg)
Job Growth
New construction
Income Growth
Population Growth
Household Growth
Estimate Future
Supply & Demand
Supply & Demand
Ranking of 27
Submarkets to
Determine
Allocation of
Capital
Submarkets to
Determine
Allocation of
Capital
Project Future
Rents & Occupancy
Factor in Current Market
Dynamics
Dynamics
Proprietary Research Model
Ticker | ESS: NYSE |
Founded | 1971 |
Initial Public Offering | 1994 ($19.50 per share) |
Properties | 132 |
Market Capitalization | $3.6 billion |
Current Dividend Yield | 6.6% |
10-Year Total Return | 212.9% |
Debt/ Total Market Cap | 49.7% |
Why Essex….
• Highest total return in the sector over a 10-year period
• Strong balance sheet
• Reputable & experienced management team
• 15 consecutive years of dividend growth
• Research driven strategy
Essex Property Trust, Inc.
![](https://capedge.com/proxy/8-K/0001140361-09-013847/ex99_13.jpg)
Seattle Metro Area
Units: 5,980
Portfolio Percentage: 22%
Occupancy: 97.3%*
NOI % of Total: 18%
Average Same-Store Rent: $1,118*
Northern California
Units: 8,032
Portfolio Percentage: 30%
Occupancy: 97.6%*
NOI % of Total: 30%
Average Same-Store Rent: $1,567*
Southern California
Units: 12,850
Portfolio Percentage: 48%
Occupancy: 96.5%*
NOI % of Total: 52%
Average Same-Store Rent: $1,431*
* As of March 31, 2009
West Coast Focus
![](https://capedge.com/proxy/8-K/0001140361-09-013847/ex99_14.jpg)
Average Rent as a % of Median Household Income
(in 000’s)
Avg. Value 1990 - 2008
3 Bedroom Rent vs.
Median Monthly Home Payment
Growth: Jobs vs. Total Residential Supply
Seattle
![](https://capedge.com/proxy/8-K/0001140361-09-013847/ex99_15.jpg)
Growth: Jobs vs. Total Residential Supply
3 Bedroom Rent vs.
Median Monthly Home Payment
Avg. Value 1990 - 2008
Average Rent as a % of Median Household Income
(in 000’s)
Northern California
![](https://capedge.com/proxy/8-K/0001140361-09-013847/ex99_16.jpg)
Growth: Jobs vs. Total Residential Supply
3 Bedroom Rent vs.
Median Monthly Home Payment
Avg. Value 1990 - 2008
Average Rent as a % of Median Household Income
(in 000’s)
Southern California
![](https://capedge.com/proxy/8-K/0001140361-09-013847/ex99_17.jpg)
Ø Limited total residential supply during ALL periods, not just recessions
Ø High Ownership costs vs. renting
Ø Limited exposure to high apartment vacancy during periods of job losses
Ø Ability for Apartment markets to recover relatively quickly, due to lower starting vacancy at the
point of recovery
point of recovery
Ø Ability to sustain rent growth over longer periods due to limited supply response with longer lag
times to job growth.
times to job growth.
Ø Construction, both residential and non-residential (i.e. infrastructure to support new residential,
other commercial ) is not a market driver. Jobs and Gross Metro Product (and thus income) not reliant
on single family construction.
other commercial ) is not a market driver. Jobs and Gross Metro Product (and thus income) not reliant
on single family construction.
Source: Vacancy - Annual Average, Realfacts (buildings completed before 2007); Job Growth: BLS, Annual Average growth.
Stable Occupancy
![](https://capedge.com/proxy/8-K/0001140361-09-013847/ex99_18.jpg)
Low Supply in Essex Markets
(Supply as a % of total housing stock)*
Essex Markets
Major U.S. Metros
AFFORDABILITY: Equals the ratio of the Median Household Income to the Income Required to purchase the
Median Priced Home. A value of 100% implies the Median Household Income just qualifies to purchase the
Median Priced Home. Values less (more) than 100% indicate that the Median Household Income is less (more)
than required to purchase the Median priced Home.
Median Priced Home. A value of 100% implies the Median Household Income just qualifies to purchase the
Median Priced Home. Values less (more) than 100% indicate that the Median Household Income is less (more)
than required to purchase the Median priced Home.
The Affordability number is based on a 30-year Mortgage with a 10% Down Payment at an interest rate of 5.07%
* Supply represents all housing units to include multifamily and single family
Essex Market Dynamics
![](https://capedge.com/proxy/8-K/0001140361-09-013847/ex99_19.jpg)
![](https://capedge.com/proxy/8-K/0001140361-09-013847/ex99_110.jpg)
Essex Markets
Lower Homeowner Default Rates in
Essex Markets
Essex Markets
![](https://capedge.com/proxy/8-K/0001140361-09-013847/ex99_111.jpg)
![](https://capedge.com/proxy/8-K/0001140361-09-013847/ex99_112.jpg)
![](https://capedge.com/proxy/8-K/0001140361-09-013847/ex99_113.jpg)
![](https://capedge.com/proxy/8-K/0001140361-09-013847/ex99_114.jpg)
Same-Store NOI Growth
Same-Store Revenue Growth
Same-Property Financial Occupancy
*Data from SNL Financial & Keybanc Report - The Leaderboard: 5/22/2009
10-Year Total Return
![](https://capedge.com/proxy/8-K/0001140361-09-013847/ex99_115.jpg)
• Self-Funded through 10-year secured financings
• Bank facility only debt with financial covenants
• Match funding strategy for external growth
Sources & Uses of Capital ($ in millions)
Fixed-Rate (Secured)
$1,281
71%
2%
14%
8%
5%
Line of Credit (Unsecured)
$45
Line of Credit (Secured)
$140
Exchangeable Bonds
$97
Variable Rate
$248
Strong Balance Sheet
![](https://capedge.com/proxy/8-K/0001140361-09-013847/ex99_116.jpg)
Dividends Per Share
FFO Per Share*
* Does not include the adoption of APB 14-1 in 2008 which would retroactively alter 2007 FFO by $0.15 per share,
2008 FFO by $0.10 per share and 2009 forecasted FFO midpoint by $0.11 per share
2008 FFO by $0.10 per share and 2009 forecasted FFO midpoint by $0.11 per share
Proven Results