Document_and_Entity_Informatio
Document and Entity Information | 9 Months Ended | |
Sep. 30, 2014 | Nov. 05, 2014 | |
Entity Information [Line Items] | ' | ' |
Entity Registrant Name | 'ESSEX PROPERTY TRUST INC | ' |
Entity Central Index Key | '0000920522 | ' |
Current Fiscal Year End Date | '--12-31 | ' |
Entity Well-known Seasoned Issuer | 'Yes | ' |
Entity Voluntary Filers | 'No | ' |
Entity Current Reporting Status | 'Yes | ' |
Entity Filer Category | 'Large Accelerated Filer | ' |
Entity Common Stock, Shares Outstanding | ' | 63,942,115 |
Document Fiscal Year Focus | '2014 | ' |
Document Fiscal Period Focus | 'Q3 | ' |
Document Type | '10-Q | ' |
Amendment Flag | 'false | ' |
Document Period End Date | 30-Sep-14 | ' |
ESSEX PORTFOLIO LP [Member] | ' | ' |
Entity Information [Line Items] | ' | ' |
Entity Registrant Name | 'ESSEX PORTFOLIO LP | ' |
Current Fiscal Year End Date | '--12-31 | ' |
Entity Well-known Seasoned Issuer | 'No | ' |
Entity Voluntary Filers | 'No | ' |
Entity Current Reporting Status | 'Yes | ' |
Entity Filer Category | 'Non-accelerated Filer | ' |
Condensed_Consolidated_Balance
Condensed Consolidated Balance Sheets (Unaudited) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Rental properties: | ' | ' |
Land and land improvements | $2,453,093 | $1,083,552 |
Buildings and improvements | 8,820,657 | 4,360,205 |
Total rental properties | 11,273,750 | 5,443,757 |
Less accumulated depreciation | -1,469,991 | -1,254,886 |
Net real estate | 9,803,759 | 4,188,871 |
Real estate under development | 363,193 | 50,430 |
Co-investments | 1,043,277 | 677,133 |
Real estate held for sale, net | 107,772 | 0 |
Total real estate | 11,318,001 | 4,916,434 |
Cash and cash equivalents-unrestricted | 17,877 | 18,491 |
Cash and cash equivalents-restricted | 70,123 | 35,275 |
Marketable securities | 108,147 | 90,084 |
Notes and other receivables | 22,973 | 68,255 |
Acquired in place lease value and other assets | 98,381 | 33,781 |
Deferred charges, net | 31,060 | 24,519 |
Total assets | 11,666,562 | 5,186,839 |
Liabilities and Equity | ' | ' |
Mortgage notes payable | 2,258,010 | 1,404,080 |
Unsecured debt | 2,745,487 | 1,410,023 |
Lines of credit | 222,628 | 219,421 |
Accounts payable and accrued liabilities | 167,160 | 67,183 |
Construction payable | 38,453 | 8,047 |
Dividends payable | 87,609 | 50,627 |
Other liabilities | 32,330 | 24,871 |
Total liabilities | 5,551,677 | 3,184,252 |
Commitments and contingencies | ' | ' |
Redeemable noncontrolling interest | 21,442 | 0 |
Cumulative convertible Series G preferred stock | 0 | 4,349 |
Equity: | ' | ' |
Cumulative redeemable Series H preferred stock at liquidation value | 73,750 | 73,750 |
Common stock, $.0001 par value, 656,020,000 shares authorized 63,229,790 and 37,421,219 shares issued and outstanding | 6 | 4 |
Additional paid-in capital | 6,569,442 | 2,345,763 |
Distributions in excess of accumulated earnings | -608,498 | -474,426 |
Accumulated other comprehensive loss, net | -51,408 | -60,472 |
Total stockholders' equity | 5,983,292 | 1,884,619 |
Noncontrolling interest | 110,151 | 113,619 |
Total equity | 6,093,443 | 1,998,238 |
Total liabilities and equity | 11,666,562 | 5,186,839 |
Essex Portfolio, L.P. [Member] | ' | ' |
Rental properties: | ' | ' |
Land and land improvements | 2,453,093 | 1,083,552 |
Buildings and improvements | 8,820,657 | 4,360,205 |
Total rental properties | 11,273,750 | 5,443,757 |
Less accumulated depreciation | -1,469,991 | -1,254,886 |
Net real estate | 9,803,759 | 4,188,871 |
Real estate under development | 363,193 | 50,430 |
Co-investments | 1,043,277 | 677,133 |
Real estate held for sale, net | 107,772 | 0 |
Total real estate | 11,318,001 | 4,916,434 |
Cash and cash equivalents-unrestricted | 17,877 | 18,491 |
Cash and cash equivalents-restricted | 70,123 | 35,275 |
Marketable securities | 108,147 | 90,084 |
Notes and other receivables | 22,973 | 68,255 |
Acquired in place lease value and other assets | 98,381 | 33,781 |
Deferred charges, net | 31,060 | 24,519 |
Total assets | 11,666,562 | 5,186,839 |
Liabilities and Equity | ' | ' |
Mortgage notes payable | 2,258,010 | 1,404,080 |
Unsecured debt | 2,745,487 | 1,410,023 |
Lines of credit | 222,628 | 219,421 |
Accounts payable and accrued liabilities | 167,160 | 67,183 |
Construction payable | 38,453 | 8,047 |
Distributions payable | 87,609 | 50,627 |
Other liabilities | 32,330 | 24,871 |
Total liabilities | 5,551,677 | 3,184,252 |
Commitments and contingencies | ' | ' |
Redeemable noncontrolling interest | 21,442 | 0 |
Cumulative convertible Series G preferred stock | 0 | 4,349 |
Equity: | ' | ' |
Limited Partners, Common equity | 45,439 | 45,957 |
Accumulated other comprehensive loss, net | -49,503 | -58,940 |
Total partners' capital | 6,030,638 | 1,932,108 |
Noncontrolling interest | 62,805 | 66,130 |
Total capital | 6,093,443 | 1,998,238 |
Total liabilities and equity | 11,666,562 | 5,186,839 |
Essex Portfolio, L.P. [Member] | General Partner [Member] | ' | ' |
Equity: | ' | ' |
General Partner | 6,034,702 | 1,945,091 |
Essex Portfolio, L.P. [Member] | General Partner [Member] | Common Capital [Member] | ' | ' |
Equity: | ' | ' |
General Partner | 5,963,493 | 1,873,882 |
Total capital | 5,963,493 | 1,873,882 |
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 $) | Sep. 30, 2014 | Dec. 31, 2013 |
In Thousands, except Share data, unless otherwise specified | ||
Liabilities and Equity | ' | ' |
Common stock, par value (in dollars per share) | $0.00 | $0.00 |
Common stock, shares authorized (in shares) | 656,020,000 | 656,020,000 |
Common stock, shares issued (in shares) | 63,229,790 | 37,421,219 |
Common stock, shares outstanding (in shares) | 63,229,790 | 37,421,219 |
Essex Portfolio, L.P. [Member] | Cumulative Convertible Series G Preferred Interest [Member] | ' | ' |
Liabilities and Equity | ' | ' |
Cumulative convertible preferred interest, liquidation value | $4,456 | $4,456 |
Essex Portfolio, L.P. [Member] | Series H Preferred Interest [Member] | ' | ' |
Liabilities and Equity | ' | ' |
Preferred interest, liquidation value | $73,750 | $73,750 |
Essex Portfolio, L.P. [Member] | General Partner [Member] | ' | ' |
Liabilities and Equity | ' | ' |
Common stock, shares issued (in shares) | 63,229,790 | 37,421,219 |
Common stock, shares outstanding (in shares) | 63,229,790 | 37,421,219 |
Essex Portfolio, L.P. [Member] | Limited Partners [Member] | ' | ' |
Liabilities and Equity | ' | ' |
Common stock, shares issued (in shares) | 2,155,783 | 2,149,802 |
Common stock, shares outstanding (in shares) | 2,155,783 | 2,149,802 |
Condensed_Consolidated_Stateme
Condensed Consolidated Statements of Operations and Comprehensive Income (Unaudited) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, except Share data, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Revenues: | ' | ' | ' | ' |
Rental and other property | $268,118 | $152,177 | $683,749 | $446,017 |
Management and other fees | 2,361 | 1,771 | 6,856 | 5,812 |
Total revenues | 270,479 | 153,948 | 690,605 | 451,829 |
Expenses: | ' | ' | ' | ' |
Property operating, excluding real estate taxes | 55,900 | 35,787 | 145,410 | 102,170 |
Real estate taxes | 31,768 | 14,535 | 77,452 | 42,773 |
Depreciation | 102,184 | 48,227 | 254,211 | 142,687 |
General and administrative | 11,479 | 6,263 | 28,621 | 19,852 |
Merger and integration expenses | 3,857 | 0 | 46,413 | 0 |
Acquisition and dispositions costs | 51 | 237 | 1,555 | 792 |
Total expenses | 205,239 | 105,049 | 553,662 | 308,274 |
Earnings from operations | 65,240 | 48,899 | 136,943 | 143,555 |
Interest expense | -45,830 | -29,192 | -117,021 | -86,661 |
Interest and other income | 2,992 | 2,387 | 8,685 | 9,326 |
Equity income in co-investments | 4,910 | 40,802 | 21,065 | 52,295 |
Gains on sale of real estate and land | 31,372 | 0 | 39,640 | 1,503 |
Gain (loss) on early retirement of debt | 0 | -178 | 0 | 846 |
Income from continuing operations | 58,684 | 62,718 | 89,312 | 120,864 |
Income from discontinued operations | 0 | 13,157 | 0 | 14,289 |
Net income | 58,684 | 75,875 | 89,312 | 135,153 |
Net income attributable to noncontrolling interest | -3,720 | -5,719 | -8,971 | -12,112 |
Net income attributable to controlling interest | 54,964 | 70,156 | 80,341 | 123,041 |
Dividends to preferred stockholders | -1,296 | -1,368 | -3,977 | -4,104 |
Net income available to common stockholders | 53,668 | 68,788 | 76,364 | 118,937 |
Comprehensive income | 61,139 | 76,112 | 98,749 | 142,206 |
Comprehensive income attributable to noncontrolling interest | -3,789 | -5,732 | -9,345 | -12,493 |
Comprehensive income attributable to controlling interest | 57,350 | 70,380 | 89,404 | 129,713 |
Basic: | ' | ' | ' | ' |
Income from continuing operations (in dollars per share) | $0.85 | $1.51 | $1.41 | $2.84 |
Income from discontinued operations (in dollars per share) | $0 | $0.33 | $0 | $0.36 |
Net income available to common stockholders/unitholders (in dollars per share) | $0.85 | $1.84 | $1.41 | $3.20 |
Weighted average number of common shares outstanding during the period (in shares) | 62,892,601 | 37,320,562 | 54,250,104 | 37,206,895 |
Diluted: | ' | ' | ' | ' |
Income from continuing operations (in dollars per share) | $0.85 | $1.51 | $1.40 | $2.83 |
Income from discontinued operations (in dollars per share) | $0 | $0.33 | $0 | $0.36 |
Net income available to common stockholders/unitholders (in dollars per share) | $0.85 | $1.84 | $1.40 | $3.19 |
Weighted average number of common shares outstanding during the period (in shares) | 63,069,772 | 37,436,983 | 54,443,227 | 37,295,691 |
Dividends per common share (in dollars per share) | $1.30 | $1.21 | $3.81 | $3.63 |
Essex Portfolio, L.P. [Member] | ' | ' | ' | ' |
Revenues: | ' | ' | ' | ' |
Rental and other property | 268,118 | 152,177 | 683,749 | 446,017 |
Management and other fees | 2,361 | 1,771 | 6,856 | 5,812 |
Total revenues | 270,479 | 153,948 | 690,605 | 451,829 |
Expenses: | ' | ' | ' | ' |
Property operating, excluding real estate taxes | 55,900 | 35,787 | 145,410 | 102,170 |
Real estate taxes | 31,768 | 14,535 | 77,452 | 42,773 |
Depreciation | 102,184 | 48,227 | 254,211 | 142,687 |
General and administrative | 11,479 | 6,263 | 28,621 | 19,852 |
Merger and integration expenses | 3,857 | 0 | 46,413 | 0 |
Acquisition and dispositions costs | 51 | 237 | 1,555 | 792 |
Total expenses | 205,239 | 105,049 | 553,662 | 308,274 |
Earnings from operations | 65,240 | 48,899 | 136,943 | 143,555 |
Interest expense | -45,830 | -29,192 | -117,021 | -86,661 |
Interest and other income | 2,992 | 2,387 | 8,685 | 9,326 |
Equity income in co-investments | 4,910 | 40,802 | 21,065 | 52,295 |
Gains on sale of real estate and land | 31,372 | 0 | 39,640 | 1,503 |
Gain (loss) on early retirement of debt | 0 | -178 | 0 | 846 |
Income from continuing operations | 58,684 | 62,718 | 89,312 | 120,864 |
Income from discontinued operations | 0 | 13,157 | 0 | 14,289 |
Net income | 58,684 | 75,875 | 89,312 | 135,153 |
Net income attributable to noncontrolling interest | -1,904 | -1,730 | -5,529 | -5,075 |
Net income attributable to controlling interest | 56,780 | 74,145 | 83,783 | 130,078 |
Dividends to preferred stockholders | -1,296 | -1,368 | -3,977 | -4,104 |
Net income available to common stockholders | 55,484 | 72,777 | 79,806 | 125,974 |
Comprehensive income | 61,139 | 76,112 | 98,749 | 142,206 |
Comprehensive income attributable to noncontrolling interest | -1,904 | -1,730 | -5,529 | -5,075 |
Comprehensive income attributable to controlling interest | $59,235 | $74,382 | $93,220 | $137,131 |
Basic: | ' | ' | ' | ' |
Income from continuing operations (in dollars per share) | $0.85 | $1.51 | $1.41 | $2.84 |
Income from discontinued operations (in dollars per share) | $0 | $0.33 | $0 | $0.36 |
Net income available to common stockholders/unitholders (in dollars per share) | $0.85 | $1.84 | $1.41 | $3.20 |
Weighted average number of common shares outstanding during the period (in shares) | 65,057,157 | 39,467,492 | 56,484,589 | 39,333,100 |
Diluted: | ' | ' | ' | ' |
Income from continuing operations (in dollars per share) | $0.85 | $1.51 | $1.41 | $2.84 |
Income from discontinued operations (in dollars per share) | $0 | $0.33 | $0 | $0.36 |
Net income available to common stockholders/unitholders (in dollars per share) | $0.85 | $1.84 | $1.41 | $3.20 |
Weighted average number of common shares outstanding during the period (in shares) | 65,234,328 | 39,583,913 | 56,677,712 | 39,421,896 |
Dividends per common share (in dollars per share) | $1.30 | $1.21 | $3.81 | $3.63 |
Condensed_Consolidated_Stateme1
Condensed Consolidated Statement of Equity (Unaudited) (USD $) | Series H Preferred Stock [Member] | Common Stock [Member] | Additional Paid-in Capital [Member] | Distributions in Excess of Accumulated Earnings [Member] | Accumulated Other Comprehensive Loss, Net [Member] | Noncontrolling Interest [Member] | Total |
In Thousands, except Share data, unless otherwise specified | |||||||
Balances at Dec. 31, 2013 | $73,750 | $4 | $2,345,763 | ($474,426) | ($60,472) | $113,619 | $1,998,238 |
Balances (in shares) at Dec. 31, 2013 | 2,950,000 | 37,421,000 | ' | ' | ' | ' | ' |
Net income | 0 | 0 | 0 | 80,341 | 0 | 8,971 | 89,312 |
Reversal of unrealized gains upon the sale of marketable securities | 0 | 0 | 0 | 0 | -841 | -45 | -886 |
Changes in fair value of derivatives and amortization of swap settlements | 0 | 0 | 0 | 0 | 7,426 | 306 | 7,732 |
Changes in fair value of marketable securities | 0 | 0 | 0 | 0 | 2,479 | 112 | 2,591 |
Issuance of common stock under: | ' | ' | ' | ' | ' | ' | ' |
Stock Consideration in the Merger, net | 0 | 2 | 3,777,644 | 0 | 0 | 0 | 3,777,646 |
Stock Consideration in the Merger, net (in shares) | ' | 23,093,000 | ' | ' | ' | ' | ' |
Stock option and restricted stock plans | 0 | 0 | 6,511 | 0 | 0 | 0 | 6,511 |
Stock option and restricted stock plans shares (in shares) | 0 | 154,000 | ' | ' | ' | ' | ' |
Equity distribution agreements, net | 0 | 0 | 449,499 | 0 | 0 | 0 | 449,499 |
Equity distribution agreements, net (in shares) | 0 | 2,527,000 | ' | ' | ' | ' | ' |
Equity based compensation costs | 0 | 0 | 5,756 | 0 | 0 | 1,672 | 7,428 |
Reclassification of noncontrolling interest to redeemable noncontrolling interest | 0 | 0 | -19,823 | 0 | 0 | 1,067 | -20,890 |
Changes in value of redemption value of redeemable non-controlling Interest | ' | ' | 2,126 | ' | ' | ' | 2,126 |
Conversion of Series G preferred stock | ' | 0 | 4,349 | 0 | 0 | 0 | 4,349 |
Conversion of Series G preferred stock (in shares) | ' | 34,000 | ' | ' | ' | ' | ' |
Contributions from noncontrolling interest | 0 | 0 | ' | 0 | 0 | 1,419,816 | 1,419,816 |
Retirement of noncontrolling interest | 0 | 0 | 0 | 0 | 0 | -1,419,816 | -1,419,816 |
Distributions to noncontrolling interest | 0 | 0 | 0 | 0 | 0 | -12,821 | -12,821 |
Redemptions of noncontrolling interest | 0 | 0 | -2,383 | 0 | 0 | -596 | -2,979 |
Common and preferred stock dividends | 0 | 0 | ' | -214,413 | 0 | 0 | -214,413 |
Balances at Sep. 30, 2014 | 73,750 | 6 | 6,569,442 | -608,498 | -51,408 | 110,151 | 6,093,443 |
Balances (in shares) at Sep. 30, 2014 | 2,950,000 | 63,229,000 | ' | ' | ' | ' | ' |
Balances at Jun. 30, 2014 | ' | ' | ' | ' | ' | ' | ' |
Net income | ' | ' | ' | ' | ' | ' | 58,684 |
Issuance of common stock under: | ' | ' | ' | ' | ' | ' | ' |
Equity distribution agreements, net (in shares) | ' | 801,909 | ' | ' | ' | ' | ' |
Balances at Sep. 30, 2014 | ' | $6 | ' | ' | ' | ' | $6,093,443 |
Balances (in shares) at Sep. 30, 2014 | ' | 63,229,000 | ' | ' | ' | ' | ' |
Condensed_Consolidated_Stateme2
Condensed Consolidated Statement of Capital (Unaudited) (USD $) | 3 Months Ended | 9 Months Ended |
In Thousands, except Share data, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2014 |
Net income | $58,684 | $89,312 |
Reversal of unrealized gains upon the sale of marketable securities | ' | -886 |
Changes in fair value of derivatives and amortization of swap settlements | ' | 7,732 |
Changes in fair value of marketable securities | ' | 2,591 |
Issuance of common stock under: | ' | ' |
Common stock issued as consideration by general partner in merger | ' | 3,777,646 |
Sale of common stock by general partner | ' | 449,499 |
Reclassification of noncontrolling interest to redeemable noncontrolling interest | ' | -20,890 |
Changes in value of redemption value of redeemable Non-Controlling Interest | ' | 2,126 |
Conversion of Series G preferred stock | ' | 4,349 |
Contributions from noncontrolling interest | ' | 1,419,816 |
Retirement of noncontrolling interest | ' | -1,419,816 |
Distributions to noncontrolling interests | ' | -12,821 |
Redemptions | ' | -2,979 |
Essex Portfolio, L.P. [Member] | ' | ' |
Balances | ' | 1,998,238 |
Net income | 58,684 | 89,312 |
Reversal of unrealized gains upon the sale of marketable securities | ' | -886 |
Changes in fair value of derivatives and amortization of swap settlements | ' | 7,732 |
Changes in fair value of marketable securities | ' | 2,591 |
Issuance of common stock under: | ' | ' |
Common stock issued as consideration by general partner in merger | ' | 3,777,646 |
General partner's stock based compensation | ' | 6,511 |
Sale of common stock by general partner | ' | 449,499 |
Equity based compensation costs | ' | 7,428 |
Reclassification of noncontrolling interest to redeemable noncontrolling interest | ' | -20,890 |
Changes in value of redemption value of redeemable Non-Controlling Interest | ' | 2,126 |
Conversion of Series G preferred stock | ' | 4,349 |
Contributions from noncontrolling interest | ' | 1,419,816 |
Retirement of noncontrolling interest | ' | -1,419,816 |
Distributions to noncontrolling interests | ' | -3,462 |
Redemptions | ' | -2,981 |
Distributions declared | ' | -223,770 |
Balances | 6,093,443 | 6,093,443 |
Essex Portfolio, L.P. [Member] | Accumulated Other Comprehensive (Loss) Income [Member] | ' | ' |
Balances | ' | -58,940 |
Net income | ' | 0 |
Reversal of unrealized gains upon the sale of marketable securities | ' | -886 |
Changes in fair value of derivatives and amortization of swap settlements | ' | 7,732 |
Changes in fair value of marketable securities | ' | 2,591 |
Issuance of common stock under: | ' | ' |
Common stock issued as consideration by general partner in merger | ' | 0 |
General partner's stock based compensation | ' | 0 |
Sale of common stock by general partner | ' | 0 |
Equity based compensation costs | ' | 0 |
Reclassification of noncontrolling interest to redeemable noncontrolling interest | ' | 0 |
Conversion of Series G preferred stock | ' | 0 |
Contributions from noncontrolling interest | ' | 0 |
Retirement of noncontrolling interest | ' | 0 |
Distributions to noncontrolling interests | ' | 0 |
Redemptions | ' | 0 |
Distributions declared | ' | 0 |
Balances | -49,503 | -49,503 |
Essex Portfolio, L.P. [Member] | Noncontrolling Interest [Member] | ' | ' |
Balances | ' | 66,130 |
Net income | ' | 5,529 |
Reversal of unrealized gains upon the sale of marketable securities | ' | 0 |
Changes in fair value of derivatives and amortization of swap settlements | ' | 0 |
Changes in fair value of marketable securities | ' | 0 |
Issuance of common stock under: | ' | ' |
Common stock issued as consideration by general partner in merger | ' | 0 |
General partner's stock based compensation | ' | 0 |
Sale of common stock by general partner | ' | 0 |
Equity based compensation costs | ' | 0 |
Reclassification of noncontrolling interest to redeemable noncontrolling interest | ' | -5,084 |
Conversion of Series G preferred stock | ' | 0 |
Contributions from noncontrolling interest | ' | 0 |
Retirement of noncontrolling interest | ' | 0 |
Distributions to noncontrolling interests | ' | -3,462 |
Redemptions | ' | -308 |
Distributions declared | ' | 0 |
Balances | 62,805 | 62,805 |
Essex Portfolio, L.P. [Member] | General Partner [Member] | Common Equity [Member] | ' | ' |
Balances | ' | 1,873,882 |
Balances (in shares) | ' | 37,421,000 |
Net income | ' | 76,364 |
Reversal of unrealized gains upon the sale of marketable securities | ' | 0 |
Changes in fair value of derivatives and amortization of swap settlements | ' | 0 |
Changes in fair value of marketable securities | ' | 0 |
Issuance of common stock under: | ' | ' |
Common stock issued as consideration by general partner in merger | ' | 3,777,646 |
Common stock issued as consideration by general partner in merger (in shares) | ' | 23,093,000 |
General partner's stock based compensation | ' | 6,511 |
General partner's stock based compensation (in shares) | ' | 154,000 |
Sale of common stock by general partner | ' | 449,499 |
Sale of common stock by general partner (in shares) | ' | 2,527,000 |
Equity based compensation costs | ' | 5,756 |
Reclassification of noncontrolling interest to redeemable noncontrolling interest | ' | -19,823 |
Changes in value of redemption value of redeemable Non-Controlling Interest | ' | 2,126 |
Conversion of Series G preferred stock | ' | 4,349 |
Conversion of Series G preferred stock (in shares) | ' | 34,000 |
Contributions from noncontrolling interest | ' | 0 |
Retirement of noncontrolling interest | ' | 0 |
Distributions to noncontrolling interests | ' | 0 |
Redemptions | ' | -2,382 |
Distributions declared | ' | -210,435 |
Balances | 5,963,493 | 5,963,493 |
Balances (in shares) | 63,229,000 | 63,229,000 |
Essex Portfolio, L.P. [Member] | General Partner [Member] | Preferred Equity [Member] | ' | ' |
Balances | ' | 71,209 |
Net income | ' | 3,977 |
Reversal of unrealized gains upon the sale of marketable securities | ' | 0 |
Changes in fair value of derivatives and amortization of swap settlements | ' | 0 |
Changes in fair value of marketable securities | ' | 0 |
Issuance of common stock under: | ' | ' |
Common stock issued as consideration by general partner in merger | ' | 0 |
General partner's stock based compensation | ' | 0 |
Sale of common stock by general partner | ' | 0 |
Equity based compensation costs | ' | 0 |
Reclassification of noncontrolling interest to redeemable noncontrolling interest | ' | 0 |
Conversion of Series G preferred stock | ' | 0 |
Contributions from noncontrolling interest | ' | 0 |
Retirement of noncontrolling interest | ' | 0 |
Distributions to noncontrolling interests | ' | 0 |
Redemptions | ' | 0 |
Distributions declared | ' | -3,977 |
Balances | 71,209 | 71,209 |
Essex Portfolio, L.P. [Member] | Limited Partners [Member] | Common Equity [Member] | ' | ' |
Balances | ' | 45,957 |
Balances (in shares) | ' | 2,150,000 |
Net income | ' | 3,442 |
Reversal of unrealized gains upon the sale of marketable securities | ' | 0 |
Changes in fair value of derivatives and amortization of swap settlements | ' | 0 |
Changes in fair value of marketable securities | ' | 0 |
Issuance of common stock under: | ' | ' |
Common stock issued as consideration by general partner in merger | ' | 0 |
Common stock issued as consideration by general partner in merger (in shares) | ' | 0 |
General partner's stock based compensation | ' | 0 |
General partner's stock based compensation (in shares) | ' | 0 |
Sale of common stock by general partner | ' | 0 |
Sale of common stock by general partner (in shares) | ' | 0 |
Equity based compensation costs | ' | 1,672 |
Equity based compensation costs (in shares) | ' | 29,000 |
Reclassification of noncontrolling interest to redeemable noncontrolling interest | ' | 4,017 |
Reclassification of noncontrolling interest to redeemable noncontrolling interest (in shares) | ' | -23,000 |
Conversion of Series G preferred stock | ' | 0 |
Conversion of Series G preferred stock (in shares) | ' | 0 |
Contributions from noncontrolling interest | ' | 1,419,816 |
Contributions from noncontrolling interest (in shares) | ' | 8,561,000 |
Retirement of noncontrolling interest | ' | -1,419,816 |
Retirement of noncontrolling interest (in shares) | ' | -8,561,000 |
Distributions to noncontrolling interests | ' | 0 |
Redemptions | ' | -291 |
Distributions declared | ' | -9,358 |
Balances | $45,439 | $45,439 |
Balances (in shares) | 2,156,000 | 2,156,000 |
Condensed_Consolidated_Stateme3
Condensed Consolidated Statements of Cash Flows (Unaudited) (USD $) | 9 Months Ended | |
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 |
Cash flows from operating activities: | ' | ' |
Net income | $89,312 | $135,153 |
Adjustments to reconcile net income to net cash provided by operating activities: | ' | ' |
Depreciation and amortization | 254,211 | 143,662 |
Amortization of discount on marketable securities | -6,555 | -4,664 |
Amortization of premium and debt financing costs, net | -4,987 | 8,111 |
Gain on sale of marketable securities | -886 | -1,767 |
Company's/Operating Partnership's share of gain on the sales of co-investment | -3,213 | -41,252 |
Gain on the sales of real estate and land | -39,640 | -14,161 |
Non-cash merger expense | 7,562 | 0 |
Equity in income in co-investments, net | -14,903 | -1,892 |
Equity-based compensation | 4,996 | 3,137 |
Gain on early retirement of debt | 0 | -846 |
Changes in operating assets and liabilities: | ' | ' |
Acquired in place lease value and other assets | 8,923 | -19,689 |
Accounts payable and accrued liabilities | 44,775 | 19,091 |
Other liabilities | 1,393 | 199 |
Net cash provided by operating activities | 340,988 | 225,082 |
Additions to real estate: | ' | ' |
Acquisitions of real estate | -409,018 | -205,539 |
Improvements to recent acquisitions | -13,512 | -14,374 |
Redevelopment | -35,361 | -32,488 |
Revenue generating capital expenditures | -20,560 | -2,165 |
Lessor required capital expenditure | -7,562 | -4,320 |
Non-revenue generating capital expenditures | -29,070 | -21,885 |
Acquisitions of and additions to real estate under development | -108,659 | -13,963 |
Proceeds from insurance claim for property damage | 29,160 | 0 |
BRE merger cash consideration paid | -555,826 | 0 |
Dispositions of real estate | 61,331 | 33,666 |
Dispositions of co-investments | 13,900 | 0 |
Contributions to co-investments | -128,268 | -150,852 |
Distributions from co-investments | 40,421 | 117,103 |
Changes in restricted cash and deposits | -39,482 | -17,246 |
Purchases of marketable securities | -15,516 | -16,442 |
Sales and maturities of marketable securities | 6,275 | 22,830 |
Purchases of and advances under notes and other receivables | 0 | -56,750 |
Collections of notes and other receivables | 76,585 | 53,438 |
Net cash used in investing activities | -1,135,162 | -308,987 |
Cash flows from financing activities: | ' | ' |
Borrowings under debt agreements | 1,737,322 | 641,892 |
Principal repayment of debt | -1,327,840 | -536,926 |
Additions to deferred and financing costs | -16,941 | -3,836 |
Equity related issuance cost of common stock | -1,348 | -616 |
Proceeds from stock options exercises | 6,526 | 4,756 |
Net proceeds from issuance of common units | 450,812 | 122,905 |
Distributions to noncontrolling interest | -13,217 | -14,108 |
Redemption of noncontrolling interest | -4,707 | -5,113 |
Common units and preferred units and preferred interests distributions paid | -177,400 | -134,146 |
Net cash provided by financing activities | 653,207 | 74,808 |
Net decrease in cash and cash equivalents-unrestricted | -140,967 | -9,097 |
Cash acquired in the BRE merger | 140,353 | 0 |
Cash and cash equivalents-unrestricted at beginning of period | 18,491 | 18,606 |
Cash and cash equivalents-unrestricted at end of period | 17,877 | 9,509 |
Supplemental disclosure of cash flow information: | ' | ' |
Cash paid for interest | 93,342 | 76,596 |
Supplemental disclosure of noncash investing and financing activities: | ' | ' |
Issuance of Operating partner/limited partner common units for contributed properties | 1,419,816 | 0 |
Retirement of limited partner common units | -1,419,816 | 0 |
Transfer from real estate under development to land and building | 71,496 | 68 |
Transfer from real estate under development to co-investments | 81,332 | 27,906 |
Mortgage notes (excluding BRE merger) assumed in connection with purchases of real estate including the loan premiums recorded | 70,480 | 0 |
Change in accrual of dividends | 45,605 | 5,434 |
Change in fair value of derivative liabilities | -1,175 | 3,649 |
Change in fair value of marketable securities | 2,186 | 2,958 |
Change in construction payable | 30,405 | 1,544 |
Reclassification to redeemable noncontrolling interest from additional paid in capital and noncontrolling interest | 18,764 | 0 |
Assets acquired and liabilities assumed in BRE merger: | ' | ' |
Cash assumed in merger | 140,353 | 0 |
Rental properties and real estate under development | 5,618,067 | 0 |
Real estate held for sale, net | 107,772 | 0 |
Co-investments | 218,402 | 0 |
Acquired in-place lease value | 80,358 | 0 |
Other assets | 15,676 | 0 |
Mortgage notes payable and unsecured debt | 1,747,382 | 0 |
Other liabilities | 94,976 | 0 |
Redeemable noncontrolling interest | 4,798 | 0 |
Consideration issued | 3,777,646 | 0 |
Essex Portfolio, L.P. [Member] | ' | ' |
Cash flows from operating activities: | ' | ' |
Net income | 89,312 | 135,153 |
Adjustments to reconcile net income to net cash provided by operating activities: | ' | ' |
Depreciation and amortization | 254,211 | 143,662 |
Amortization of discount on marketable securities | -6,555 | -4,664 |
Amortization of premium and debt financing costs, net | -4,987 | 8,111 |
Gain on sale of marketable securities | -886 | -1,767 |
Company's/Operating Partnership's share of gain on the sales of co-investment | -3,213 | -41,252 |
Gain on the sales of real estate and land | -39,640 | -14,161 |
Non-cash merger expense | 7,562 | 0 |
Equity in income in co-investments, net | -14,903 | -1,892 |
Equity-based compensation | 4,996 | 3,137 |
Gain on early retirement of debt | 0 | -846 |
Changes in operating assets and liabilities: | ' | ' |
Acquired in place lease value and other assets | 8,923 | -19,689 |
Accounts payable and accrued liabilities | 44,775 | 19,091 |
Other liabilities | 1,393 | 199 |
Net cash provided by operating activities | 340,988 | 225,082 |
Additions to real estate: | ' | ' |
Acquisitions of real estate | -409,018 | -205,539 |
Improvements to recent acquisitions | -13,512 | -14,374 |
Redevelopment | -35,361 | -32,488 |
Revenue generating capital expenditures | -20,560 | -2,165 |
Lessor required capital expenditure | -7,562 | -4,320 |
Non-revenue generating capital expenditures | -29,070 | -21,885 |
Acquisitions of and additions to real estate under development | -108,659 | -13,963 |
Proceeds from insurance claim for property damage | 29,160 | 0 |
BRE merger cash consideration paid | -555,826 | 0 |
Dispositions of real estate | 61,331 | 33,666 |
Dispositions of co-investments | 13,900 | 0 |
Contributions to co-investments | -128,268 | -150,852 |
Distributions from co-investments | 40,421 | 117,103 |
Changes in restricted cash and deposits | -39,482 | -17,246 |
Purchases of marketable securities | -15,516 | -16,442 |
Sales and maturities of marketable securities | 6,275 | 22,830 |
Purchases of and advances under notes and other receivables | 0 | -56,750 |
Collections of notes and other receivables | 76,585 | 53,438 |
Net cash used in investing activities | -1,135,162 | -308,987 |
Cash flows from financing activities: | ' | ' |
Borrowings under debt agreements | 1,737,322 | 641,892 |
Principal repayment of debt | -1,327,840 | -536,926 |
Additions to deferred and financing costs | -16,941 | -3,836 |
Equity related issuance cost of common stock | -1,348 | -616 |
Proceeds from stock options exercises | 6,526 | 4,756 |
Net proceeds from issuance of common units | 450,812 | 122,905 |
Distributions to noncontrolling interest | -3,462 | -6,234 |
Redemption of noncontrolling interest | -308 | -1,819 |
Common units and preferred units and preferred interests distributions paid | -191,554 | -145,314 |
Net cash provided by financing activities | 653,207 | 74,808 |
Net decrease in cash and cash equivalents-unrestricted | -140,967 | -9,097 |
Cash acquired in the BRE merger | 140,353 | 0 |
Cash and cash equivalents-unrestricted at beginning of period | 18,491 | 18,606 |
Cash and cash equivalents-unrestricted at end of period | 17,877 | 9,509 |
Supplemental disclosure of cash flow information: | ' | ' |
Cash paid for interest | 93,342 | 76,596 |
Supplemental disclosure of noncash investing and financing activities: | ' | ' |
Issuance of Operating partner/limited partner common units for contributed properties | 1,419,816 | 0 |
Retirement of limited partner common units | -1,419,816 | 0 |
Transfer from real estate under development to land and building | 71,496 | 68 |
Transfer from real estate under development to co-investments | 81,332 | 27,906 |
Mortgage notes (excluding BRE merger) assumed in connection with purchases of real estate including the loan premiums recorded | 70,480 | 0 |
Change in accrual of dividends | 45,605 | 5,434 |
Change in fair value of derivative liabilities | -1,175 | 3,649 |
Change in fair value of marketable securities | 2,186 | 2,958 |
Change in construction payable | 30,405 | 1,544 |
Reclassification to redeemable noncontrolling interest from additional paid in capital and noncontrolling interest | -18,764 | 0 |
Assets acquired and liabilities assumed in BRE merger: | ' | ' |
Cash assumed in merger | 140,353 | 0 |
Rental properties and real estate under development | 5,618,067 | 0 |
Real estate held for sale, net | 107,772 | 0 |
Co-investments | 218,402 | 0 |
Acquired in-place lease value | 80,358 | 0 |
Other assets | 15,676 | 0 |
Mortgage notes payable and unsecured debt | 1,747,382 | 0 |
Other liabilities | 94,976 | 0 |
Redeemable noncontrolling interest | 4,798 | 0 |
Consideration issued | $3,777,646 | $0 |
Condensed_Consolidated_Stateme4
Condensed Consolidated Statements of Cash Flows (Unaudited) (Parenthetical) (USD $) | 9 Months Ended | |
In Millions, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 |
Supplemental disclosure of cash flow information: | ' | ' |
Cash paid for interest, capitalized | $17.80 | $12.70 |
Essex Portfolio, L.P. [Member] | ' | ' |
Supplemental disclosure of cash flow information: | ' | ' |
Cash paid for interest, capitalized | $17.80 | $12.70 |
Organization_and_Basis_of_Pres
Organization and Basis of Presentation | 9 Months Ended | ||||||||||||
Sep. 30, 2014 | |||||||||||||
Organization and Basis of Presentation [Abstract] | ' | ||||||||||||
Organization and Basis of Presentation | ' | ||||||||||||
1) 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, 2013. | |||||||||||||
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 financial results. | |||||||||||||
On April 1, 2014, Essex completed the merger with BRE Properties, Inc. (“BRE”). In connection with the closing of the merger, (1) BRE merged into a wholly owned subsidiary of Essex, and (2) each outstanding share of BRE common stock was converted into (i) 0.2971 shares (the “Stock Consideration”) of Essex common stock, and (ii) $7.18 in cash, (the “Cash Consideration”), plus cash in lieu of fractional shares for total consideration of approximately $4.3 billion. The Cash Consideration was adjusted as a result of the authorization and declaration of a special distribution to the stockholders of BRE of $5.15 per share of BRE common stock payable to BRE stockholders of record as of the close of business on March 31, 2014 (the “Special Dividend”). The Special Dividend was payable as a result of the closing of the sale of certain interests in assets of BRE to certain parties, which closed on March 31, 2014. Pursuant to the terms of the merger agreement, the amounts payable as a Special Dividend reduced the Cash Consideration of $12.33 payable by Essex in the merger to $7.18 per share of BRE common stock. | |||||||||||||
Essex issued approximately 23.1 million shares of Essex common stock as Stock Consideration in the merger. For purchase accounting, the value of the common stock issued by Essex upon the consummation of the merger was determined based on the closing price of BRE’s common stock on the closing date of the merger. As a result of Essex being admitted to the S&P 500 on the same date as the closing of the merger, Essex’s common stock price experienced significantly higher than usual trading volume and the closing price of $174 per share was significantly higher than its volume-weighted average trading price for the days before and after April 1, 2014. BRE’s common stock did not experience the same proportionate increase in common stock price leading up to April 1, 2014. As a result, given that a substantial component of the purchase price is an exchange of equity instruments, Essex used the closing price of BRE’s common stock on April 1, 2014 of $61 per share, less the Cash Consideration, as the fair value of the equity consideration. After deducting the Special Dividend and the Cash Consideration per share, this resulted in a value of $48.67 per share of BRE common stock which is the equivalent of approximately $164 per share of Essex common stock issued. | |||||||||||||
The unaudited condensed consolidated financial statements for the three and nine months ended September 30, 2014 and 2013 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 September 30, 2014. Total OP units outstanding were 2,155,783 and 2,149,802 as of September 30, 2014 and December 31, 2013, respectively, and the redemption value of the OP units, based on the closing price of the Company’s common stock totaled $385.3 million and $308.5 million, as of September 30, 2014 and December 31, 2013, respectively. | |||||||||||||
As of September 30, 2014, the Company owned or had ownership interests in 239 apartment communities, aggregating 56,622 units, excluding the Company’s ownership in preferred interest co-investments, (collectively, the “Communities”, and individually, a “Community”), five commercial buildings and fourteen 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 and Phoenix metropolitan areas. | |||||||||||||
Cyber-intrusion Expenses | |||||||||||||
In the third quarter of 2014, the Company reported that certain of its computer networks containing personal and proprietary information have been compromised by a cyber-intrusion. Essex has confirmed that evidence exists of exfiltration of data on Company systems. The precise nature of the data has not yet been identified and the Company does not presently have any evidence that data belonging to the Company has been misused. | |||||||||||||
After detecting unusual activity, the Company took immediate steps to assess and contain the intrusion and secure its systems. The Company has retained independent forensic computer experts to analyze the impacted data systems and is consulting with law enforcement. The investigation into this cyber-intrusion is ongoing, and Essex is working as quickly as possible to identify whether any employee or tenant data may be at risk. When the analysis is complete, the Company will promptly notify any affected parties, as appropriate. | |||||||||||||
The Company has recorded $1.2 million in cyber-intrusion expenses in the third quarter of 2014 and are included in general and administrative expense line item on the condensed consolidated statement of operations and comprehensive income. | |||||||||||||
Marketable Securities | |||||||||||||
The Company reports its available for sale securities at fair value, based on quoted market prices (Level 2 for the unsecured bonds and Level 1 for the common stock and investment funds, as defined by the Financial Accounting Standards Board (“FASB”) standard for fair value measurements), and any unrealized gain or loss is recorded as other comprehensive income (loss). Realized gains and losses, interest and dividend income, and amortization of purchase discounts are included in interest and other income on the condensed consolidated statement of operations and comprehensive income. | |||||||||||||
As of September 30, 2014 and December 31, 2013, marketable securities consisted primarily of investment-grade unsecured bonds, common stock, investments in mortgage backed securities and investment funds that invest in equities and U.S. treasury or agency securities. As of September 30, 2014 and December 31, 2013, the Company classified its investments in mortgage backed securities, which mature through November 2019 and September 2020, as held to maturity, and accordingly, these securities are stated at their amortized cost. As of September 30, 2014 and December 31, 2013, marketable securities consist of the following ($ in thousands): | |||||||||||||
30-Sep-14 | |||||||||||||
Cost/ | Gross | Carrying Value | |||||||||||
Amortized | Unrealized | ||||||||||||
Cost | Gain | ||||||||||||
Available for sale: | |||||||||||||
Investment-grade unsecured bonds | $ | 14,396 | $ | (51 | ) | $ | 14,345 | ||||||
Investment funds - US treasuries | 5,018 | 7 | 5,025 | ||||||||||
Common stock | 22,523 | 957 | 23,480 | ||||||||||
Held to maturity: | |||||||||||||
Mortgage backed securities | 65,297 | - | 65,297 | ||||||||||
Total | $ | 107,234 | $ | 913 | $ | 108,147 | |||||||
31-Dec-13 | |||||||||||||
Cost/ | Gross | Carrying Value | |||||||||||
Amortized | Unrealized | ||||||||||||
Cost | Gain (Loss) | ||||||||||||
Available for sale: | |||||||||||||
Investment-grade unsecured bonds | $ | 15,446 | $ | 509 | $ | 15,955 | |||||||
Investment funds - US treasuries | 3,675 | 3 | 3,678 | ||||||||||
Common stock | 13,104 | (1,304 | ) | 11,800 | |||||||||
Held to maturity: | |||||||||||||
Mortgage backed securities | 58,651 | - | 58,651 | ||||||||||
Total | $ | 90,876 | $ | (792 | ) | $ | 90,084 | ||||||
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 nine months ended September 30, 2014 and 2013, the proceeds from sales of available for sale securities totaled $6.3 million and $22.8 million, respectively, which resulted in realized gains of $0.9 million and $1.8 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 991,983 and 1,007,879 as of September 30, 2014 and December 31, 2013 respectively, and the redemption value of the units, based on the closing price of the Company’s common stock totaled $177.3 million and $144.6 million, as of September 30, 2014 and December 31, 2013, respectively. The consolidated total assets and liabilities related to these VIEs, net of intercompany eliminations, were approximately $234.7 million and $224.4 million, respectively, as of September 30, 2014 and $194.9 million and $178.3 million, respectively, as of December 31, 2013. 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 September 30, 2014 and December 31, 2013, 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, 2013) are being amortized over the expected service periods. | |||||||||||||
Stock-based compensation expense for options and restricted stock totaled $0.7 million and $0.5 million for the three months ended September 30, 2014 and 2013, respectively, and $2.9 million and $1.6 million for the nine months ended September 30, 2014 and 2013, respectively. The intrinsic value of the stock options exercised during the three months ended September 30, 2014 and 2013 totaled $1.0 million and $0.1 million, respectively, and $4.2 million and $2.9 million for the nine months ended September 30, 2014 and 2013, respectively. As of September 30, 2014, the intrinsic value of the stock options outstanding and fully vested totaled $15.7 million. As of September 30, 2014, total unrecognized compensation cost related to unvested share-based compensation granted under the stock option and restricted stock plans totaled $5.7 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. | |||||||||||||
The Company has adopted an incentive program involving the issuance of Series Z-1 Incentive Units of limited partnership interest in the Operating Partnership. The Operating Partnership also issued 50,500 units under the 2014 Long-Term Incentive Plan Award agreements in December 2013. Pursuant to the 2014 Long-Term Incentive Plan Awards, each recipient was initially granted a number of 2014 Long-Term Incentive Plan Units (the “2014 LTIP Units”), 90% of which are subject to performance-based vesting, and 10% of which are subject to service-based vesting based on continued employment. One-third of the performance-based vesting of the 2014 LTIP Units initially granted will be eligible to be earned by recipients based on Essex’s absolute total stockholder return and two-thirds will be eligible to be earned based on Essex’s relative total stockholder return, in each case, during a one-year performance period beginning on the initial grant date of the awards. All 2014 LTIP Units that are earned vest over a four year period commencing on the grant date. | |||||||||||||
Stock-based compensation expense for Z-1 Units and 2014 LTIP Units totaled $0.4 million and $0.5 million for the three months ended September 30, 2014 and 2013, respectively, and $1.5 million for the nine months ended September 30, 2014 and 2013. As of September 30, 2014, the intrinsic value of the Z-1 Units and 2014 LTIP Units subject to future vesting totaled $23.5 million. As of September 30, 2014, total unrecognized compensation cost related to Z-1 Units and 2014 LTIP Units subject to future vesting totaled $6.7 million. The unamortized cost is expected to be recognized over 6 years subject to the achievement of the stated performance criteria. | |||||||||||||
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 September 30, 2014 and December 31, 2013, 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 $4.3 billion of fixed rate debt, including unsecured bonds, at September 30, 2014 is approximately $4.5 billion and the fair value of the Company’s $539.2 million of variable rate debt, excluding borrowings under the lines of credit, at September 30, 2014 is $520.4 million 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 September 30, 2014 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 September 30, 2014. | |||||||||||||
At September 30, 2014, the Company’s investments in mortgage backed securities had a carrying value of $65.3 million and the Company estimated the fair value to be approximately $93.7 million. At December 31, 2013, the Company’s investments in mortgage backed securities had a carrying value of $58.7 million and the Company estimated the fair value to be approximately $86.2 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 totaled $2.9 million and $1.8 million during the three months ended September 30, 2014 and 2013, respectively, and $7.6 million and $5.1 million during the nine months ended September 30, 2014 and 2013, respectively, most of which relates to development projects. These totals include capitalized salaries of $2.4 million and $0.8 million for the three months ended September, 2014 and 2013, respectively, and $6.7 million and $2.0 million for the nine months ended September 30, 2014 and 2013, 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 operations 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/(losses) on | ||||||||||||
of derivatives | available for sale | ||||||||||||
securities | |||||||||||||
Balance at December 31, 2013 | $ | (59,724 | ) | $ | (748 | ) | $ | (60,472 | ) | ||||
Other comprehensive income before reclassification | 1,428 | 2,479 | 3,907 | ||||||||||
Amounts reclassified from accumulated other comprehensive loss | 5,997 | (841 | ) | 5,156 | |||||||||
Net other comprehensive income | 7,425 | 1,638 | 9,063 | ||||||||||
Balance at September 30, 2014 | $ | (52,298 | ) | $ | 890 | $ | (51,408 | ) | |||||
Essex Portfolio, L.P. | |||||||||||||
(in thousands): | |||||||||||||
Change in fair | Unrealized | Total | |||||||||||
value and amortization | gains/(losses) on | ||||||||||||
of derivatives | available for sale | ||||||||||||
securities | |||||||||||||
Balance at December 31, 2013 | $ | (58,148 | ) | $ | (792 | ) | $ | (58,940 | ) | ||||
Other comprehensive income before reclassification | 1,487 | 2,591 | 4,078 | ||||||||||
Amounts reclassified from accumulated other comprehensive loss | 6,245 | (886 | ) | 5,359 | |||||||||
Net other comprehensive income | 7,732 | 1,705 | 9,437 | ||||||||||
Balance at September 30, 2014 | $ | (50,416 | ) | $ | 913 | $ | (49,503 | ) | |||||
Amounts reclassified from accumulated other comprehensive loss in connection with derivatives are recorded in interest expense on the condensed consolidated statement of operations 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 operations 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. | |||||||||||||
Discontinued Operations | |||||||||||||
In April 2014, the Financial Accounting Standards Board (“FASB”) issued ASU, No. 2014-018, Presentation of Financial Statements, Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity. ASU 2014-018 changes the requirements for reporting discontinued operation under Subtopic 205-20, Presentation of Financial Statements—Discontinued Operations. The amendment updates the definition of discontinued operations and defines discontinued operations to be those disposals of components of an entity that represent a strategic shift that has (or will have) a major effect on an entity’s operations and financial results. This ASU is effective for disposals of components of an entity that occur within annual periods beginning on or after December 15, 2014 with early adoption permitted, but only for disposals that have not been reported in financial statements previously issued. | |||||||||||||
The Company adopted ASU 2014-018 in its first quarter of 2014. In the first quarter of 2014, Essex sold Vista Capri North, a 106 unit community located in San Diego, California for $14.4 million. The total gain on sale was $7.9 million. | |||||||||||||
The Company did not sell any properties in the second quarter of 2014. | |||||||||||||
During the third quarter of 2014, the Company sold Coldwater Canyon, a 39 unit community located in Studio City, CA for $9.5 million. The total gain on sale was $2.2 million. Also during the third quarter, the Company sold Mt. Sutro, a 99 unit community located in San Francisco, CA for $39.5 million. The total gain on sale was $29.2 million. | |||||||||||||
The Company determined that the disposals through the nine months ended September 30, 2014 were not a discontinued operation in accordance with ASU 2014-018. The gains related to these disposals are recorded in gains on sale of real estate and land in the condensed consolidated statements of operations and comprehensive income. | |||||||||||||
BRE Merger | |||||||||||||
The merger with 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 preliminary 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 preliminary fair value of the assets and liabilities acquired on April 1, 2014 and adjustments to the provisional valuations during the measurement period 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 | 5,618 | ||||||||||||
Real estate held for sale, net | 108 | ||||||||||||
Co-investments | 218 | ||||||||||||
Acquired in-place lease value | 80 | ||||||||||||
Other assets | 16 | ||||||||||||
Mortgage notes payable and unsecured debt | (1,747 | ) | |||||||||||
Other liabilities | (94 | ) | |||||||||||
Redeemable noncontrolling interest | (5 | ) | |||||||||||
4,334 | |||||||||||||
Cash consideration for BRE merger | $ | 556 | |||||||||||
Equity consideration for BRE merger | 3,778 | ||||||||||||
Total consideration for BRE merger | $ | 4,334 | |||||||||||
During the quarter ended September 30, 2014, the Company recorded an adjustment to increase the preliminary fair value of personal property by $100.9 million with an estimated useful life of 5 years with an offsetting decrease in real property with an estimated useful life of 30 years, all of which are classified within rental properties and real estate under development. This resulted in additional depreciation expense of $4.2 million and $8.5 million for the three and nine months ended September 30, 2014. The changes in estimates were the result of additional accounting information 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, but the Company is waiting for additional information necessary to finalize those fair values. Thus, the provisional measurements of fair value set forth above are subject to change further. The Company expects to complete the purchase accounting process as soon as practicable but no later than one year from the acquisition date. | |||||||||||||
The unaudited pro forma financial information set forth below is based on Essex’s historical condensed consolidated statement of operations and comprehensive income for the three and nine months ended September 30, 2014 and September 30, 2013, adjusted to give effect to the merger with BRE including the 14 BRE properties acquired on March 31, 2014, as if they occurred on January 1, 2013. The unaudited pro forma adjustments primarily relate to merger expenses, depreciation expense on acquired buildings and improvements, amortization of acquired intangibles, and estimated interest expense related to assumed debt. | |||||||||||||
Essex Property Trust, Inc. | |||||||||||||
Pro forma (unaudited) | |||||||||||||
three months ended September 30 | |||||||||||||
(in thousands, except per share data) | |||||||||||||
2014 | 2013 | ||||||||||||
Total revenue | $ | 270,479 | $ | 238,668 | |||||||||
Net income available to common stockholders (1) | $ | 59,341 | $ | 59,361 | |||||||||
Earnings per share, diluted (1) | $ | 0.91 | $ | 0.95 | |||||||||
Pro forma (unaudited) | |||||||||||||
nine months ended September 30 | |||||||||||||
(in thousands, except per share data) | |||||||||||||
2014 | 2013 | ||||||||||||
Total revenue | $ | 776,761 | $ | 699,701 | |||||||||
Net income available to common stockholders (1) (2) | $ | 214,549 | $ | 66,806 | |||||||||
Earnings per share, diluted (1) | $ | 3.34 | $ | 1.07 | |||||||||
Essex Portfolio, L.P. | |||||||||||||
Pro forma (unaudited) | |||||||||||||
three months ended September 30 | |||||||||||||
(in thousands, except per unit data) | |||||||||||||
2014 | 2013 | ||||||||||||
Total revenue | $ | 270,479 | $ | 238,668 | |||||||||
Net income available to common unitholders (1) | $ | 59,341 | $ | 59,361 | |||||||||
Earnings per unit, diluted (1) | $ | 0.91 | $ | 0.95 | |||||||||
Pro forma (unaudited) | |||||||||||||
nine months ended September 30 | |||||||||||||
(in thousands, except per unit data) | |||||||||||||
2014 | 2013 | ||||||||||||
Total revenue | $ | 776,761 | $ | 699,701 | |||||||||
Net income available to common unitholders (1) (2) | $ | 214,549 | $ | 66,690 | |||||||||
Earnings per unit, diluted (1) | $ | 3.34 | $ | 1.07 | |||||||||
-1 | The supplemental unaudited pro forma net income available to common stockholders were adjusted to exclude $3.9 million and $46.4 million of merger related costs incurred by Essex during the three and nine months ended September 30, 2014. The 2013 supplemental unaudited pro forma net income available to common stockholders was adjusted to include the above adjustments plus $4.3 million of merger related costs incurred by Essex during the three months ended December 31, 2013. The supplemental 2014 and 2013 unaudited proforma earnings per share, diluted, was adjusted by approximately 23.1 million shares due to the common stock issued in connection with the merger. | ||||||||||||
-2 | The supplemental unaudited pro forma net income available to common stockholders for the nine months ended September 30, 2014, include approximately $105 million from discontinued operations related to the sale of three BRE properties during the quarter ended March 31, 2014 that are non-recurring transactions. | ||||||||||||
Revenues of approximately $95.2 million and net loss of approximately $6.0 million associated with properties acquired in 2014 in the BRE merger are included in the condensed consolidated statements of operations and comprehensive income for the three months ended September 30, 2014 for both the Company and Operating Partnership. Revenues of approximately $186.7 million and net loss of approximately $14.2 million associated with properties acquired in 2014 in the BRE merger are included in the condensed consolidated statements of operations and comprehensive income for the nine months ended September 30, 2014 for both the Company and Operating Partnership. | |||||||||||||
Real estate classified as held for sale as of September 30, 2014 were $108 million. The carrying value of real estate held for sale represents fair values determined in the preliminary allocation of the recently completed BRE merger, adjusted for operating activity since April 1, 2014. The fair values were determined based on standard valuation techniques with inputs that are unobservable and significant to the overall fair value measurement. |
Significant_Transactions_Durin
Significant Transactions During the Second Quarter of 2014 and Subsequent Events | 9 Months Ended |
Sep. 30, 2014 | |
Significant Transactions During the Second Quarter of 2014 and Subsequent Events [Abstract] | ' |
Significant Transactions During the Second Quarter of 2014 and Subsequent Events | ' |
(2) Significant Transactions During the Third Quarter of 2014 and Subsequent Events | |
Significant Transactions | |
Acquisitions | |
In July 2014, the Company acquired Paragon Apartments located in Fremont, CA for $111.0 million. The property was built in 2013 and has 301 apartment homes. Paragon Apartments is conveniently located near the Fremont Bart station and high paying jobs in Silicon Valley. For further discussion, see Note 5, Related Party Transactions. | |
In August 2014 the Company acquired Apex, a 366 unit community located in Milpitas, CA for $150.0 million. Also in August, the Company also acquired Ellington at Bellevue, a 220 unit community located in Bellevue, WA for $58.8 million. | |
Common Stock | |
During the third quarter, the Company issued 801,909 shares of common stock at an average price of $190.06 for proceeds of $151.4 million excluding professional costs. For the nine months ended September 30, 2014, the Company has issued approximately 2.6 million shares of common stock at an average price of $177.83 for proceeds of $450.8 million. | |
Subsequent Events | |
In October 2014, the Company purchased a 50% interest in Palm Valley Apartments located in San Jose, California for a contract price of $180 million. The property is encumbered by a mortgage loan, bearing interest at 5.5% per annum and maturing in February 2017, of which Essex’s pro-rata share is approximately $110 million. | |
Also in October 2014, the Company received cash of approximately $101 million for its share of the redemption of the Wesco II preferred equity investment located in San Francisco, CA. In the fourth quarter 2014, the Company it will realize $5.3 million of income from redemption penalties due to the early redemption of the preferred equity investment. The redemption penalties income will be excluded from Core FFO. | |
In November 2014, the Company sold the remaining community in the Essex Apartment Value Fund II (“Fund II”) for approximately $23.5 million. The Company has a 28.2% ownership stake in Fund II and promote income of $5.5 million will be recognized in the fourth quarter 2014. The promote income will be excluded from Core FFO. |
Coinvestments
Co-investments | 9 Months Ended | ||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||
Co-investments [Abstract] | ' | ||||||||||||||||
Co-investments | ' | ||||||||||||||||
(3) 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 Company's co-investments (in thousands): | |||||||||||||||||
September 30, | December 31, | ||||||||||||||||
2014 | 2013 | ||||||||||||||||
Membership interest/Partnership interest in: | |||||||||||||||||
Wesco I | $ | 135,875 | $ | 142,025 | |||||||||||||
Wesco III | 53,411 | 39,073 | |||||||||||||||
Fund II | 2,578 | 4,166 | |||||||||||||||
Expo | 8,305 | 12,041 | |||||||||||||||
The Huxley | 11,784 | 11,224 | |||||||||||||||
Connolly Station | 47,661 | 45,242 | |||||||||||||||
Wesco IV | 95,338 | - | |||||||||||||||
BEXAEW | 89,504 | - | |||||||||||||||
Total operating co-investments | 444,456 | 253,771 | |||||||||||||||
Membership interest in: | |||||||||||||||||
Limited liability companies with CPPIB that own and are developing Epic, Mosso I and II, Park 20, The Emme, and The Owens & Hacienda (1) | 364,779 | 256,296 | |||||||||||||||
One South Market | 30,498 | 17,115 | |||||||||||||||
The Dylan | 8,396 | 7,321 | |||||||||||||||
Century Towers | 13,491 | - | |||||||||||||||
Total development co-investments | 417,164 | 280,732 | |||||||||||||||
Membership interest in Wesco II that owns a preferred equity interest in Parkmerced with a preferred return of 10.1% | 95,934 | 94,711 | |||||||||||||||
Preferred interest in related party limited liability company that owns Sage at Cupertino with a preferred return of 9.5% | 16,471 | 15,775 | |||||||||||||||
Preferred interest in a related party limited liability company that owns Madison Park at Anaheim with a preferred return of 9% | 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% | 10,148 | 9,455 | |||||||||||||||
Preferred interest in a limited liability company that owns an apartment development in San Jose with a preferred return of 12% | 9,710 | 8,865 | |||||||||||||||
Preferred interest in a limited liability company that owns 8th & Thomas with a preferred return of 10.0% | 12,816 | - | |||||||||||||||
Preferred interest in a limited liability company that owns Newbury Park with a preferred return of 12.0% | 12,754 | - | |||||||||||||||
Preferred interest in a limited liability company that owns Century Towers with a preferred return of 10.0% | 10,000 | - | |||||||||||||||
Total preferred interest co-investments | 181,657 | 142,630 | |||||||||||||||
Total co-investments | $ | 1,043,277 | $ | 677,133 | |||||||||||||
-1 | Epic Phase I and II are currently in operations. The co-investment will be moved to operating co-investment with the completion of Phase III. | ||||||||||||||||
The combined summarized balance sheet and statements of operations for co-investments are as follows (in thousands). | |||||||||||||||||
September 30, | December 31, | ||||||||||||||||
2014 | 2013 | ||||||||||||||||
Balance sheets: | |||||||||||||||||
Rental properties and real estate under development | $ | 3,084,852 | $ | 1,953,328 | |||||||||||||
Other assets | 110,752 | 61,578 | |||||||||||||||
Total assets | $ | 3,195,604 | $ | 2,014,906 | |||||||||||||
Debt | $ | 1,285,954 | $ | 667,641 | |||||||||||||
Other liabilities | 83,344 | 125,479 | |||||||||||||||
Equity | 1,826,306 | 1,221,786 | |||||||||||||||
Total liabilities and equity | $ | 3,195,604 | $ | 2,014,906 | |||||||||||||
Company's share of equity | $ | 1,043,277 | $ | 677,133 | |||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
September 30, | September 30, | ||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
Statements of operations: | |||||||||||||||||
Property revenues | $ | 51,725 | $ | 24,796 | $ | 128,469 | $ | 78,913 | |||||||||
Property operating expenses | (18,759 | ) | (10,170 | ) | (48,875 | ) | (29,872 | ) | |||||||||
Net property operating income | 32,966 | 14,626 | 79,594 | 49,041 | |||||||||||||
Gain on sale of real estate | - | 137,845 | 11,369 | 146,663 | |||||||||||||
Interest expense | (9,838 | ) | (6,052 | ) | (25,283 | ) | (18,924 | ) | |||||||||
General and administrative | (1,840 | ) | (1,419 | ) | (5,039 | ) | (4,472 | ) | |||||||||
Equity income from co-investments | 4,808 | - | 14,351 | - | |||||||||||||
Depreciation and amortization | (21,357 | ) | (8,718 | ) | (49,935 | ) | (29,314 | ) | |||||||||
Net income | $ | 4,739 | $ | 136,282 | $ | 25,057 | $ | 142,994 | |||||||||
Company's share of net income | $ | 4,910 | $ | 40,802 | $ | 21,065 | $ | 52,295 | |||||||||
Wesco IV and BEXAEW | |||||||||||||||||
On April 1, 2014, in connection with the merger, the Company acquired a 50% interest in Wesco IV LLC (“Wesco IV”) and a 50% interest in BEXAEW LLC (“BEXAEW”). Wesco IV and BEXAEW’s remaining 50% interest is owned by an institutional partner. Wesco IV and BEXAEW expect to utilize debt targeted at approximately 50% and 60%, respectively, of the cost to acquire and improve real estate. Under the terms of Wesco IV’s and BEXAEW’s operating agreements, Essex is entitled to asset management, property management, development and redevelopment service fees. In addition, Essex is entitled to its 50% pro rata share of the income or loss generated by these entities and upon the achievement of certain performance measures, is entitled to promote income. As of September 30, 2014, Wesco IV owned five apartment communities with 1,116 units with an aggregate carrying value of approximately $297.8 million. As of September 30, 2014, BEXAEW owned nine apartment communities with 2,723 units with an aggregate carrying value of approximately $516.7 million. |
Notes_and_Other_Receivables
Notes and Other Receivables | 9 Months Ended | ||||||||
Sep. 30, 2014 | |||||||||
Notes and Other Receivables [Abstract] | ' | ||||||||
Notes and Other Receivables | ' | ||||||||
(4) Notes and Other Receivables | |||||||||
Notes receivable secured by real estate and other receivables consist of the following as of September 30, 2014 and December 31, 2013 (in thousands): | |||||||||
September 30, | December 31, | ||||||||
2014 | 2013 | ||||||||
Notes receivable, secured, bearing interest at 4.0% per annum, principal and accrued interest due December 2014 (1) | $ | 3,212 | $ | 3,212 | |||||
Notes and other receivables from affiliates (2) | 9,086 | 60,968 | |||||||
Other receivables (3) | 10,675 | 4,075 | |||||||
$ | 22,973 | $ | 68,255 | ||||||
-1 | The borrower funds an impound account for capital replacement. | ||||||||
-2 | The Company had $9.1 million of short-term loans outstanding and due from various legacy and BRE joint ventures. See Note 5, Related Party Transaction, for additional details. | ||||||||
-3 | The Company has BRE and legacy receivables for utilities, rents and other tenant receivables. |
Related_Party_Transactions
Related Party Transactions | 9 Months Ended |
Sep. 30, 2014 | |
Related Party Transactions [Abstract] | ' |
Related Party Transactions | ' |
(5) Related Party Transactions | |
Fees earned from affiliates include management, development and redevelopment fees from co-investments of $4.1 million and $3.0 million during the three months ended September 30, 2014 and 2013, respectively, of which $1.7 million and $1.2 million were classified as a reduction to general and administrative expenses. Fees earned were $11.7 million and $9.1 million during the nine months ended September 30, 2014 and 2013, respectively, of which $4.9 million and $3.3 million were classified as a reduction to general and administrative expenses. All of these fees are net of intercompany amounts eliminated by the Company. | |
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. During the third quarter of 2013, the Company restructured the terms of a preferred equity investment on a property located in Anaheim, California, reducing the rate from 13% to 9%, while extending the maximum term by one year. The Company recorded $0.4 million of income related to the restructured preferred equity investment. The entity that owns the property is 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 restructuring of the investment in this entity. | |
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. | |
As described in Note 4, the Company has provided short-term bridge loans to affiliates. As of September 30, 2014, $9.1 million of short-term loans remained outstanding due from various legacy and BRE joint ventures. |
Debt_and_Lines_of_Credit
Debt and Lines of Credit | 9 Months Ended | ||||||||||||
Sep. 30, 2014 | |||||||||||||
Debt and Lines of Credit [Abstract] | ' | ||||||||||||
Debt and Lines of Credit | ' | ||||||||||||
(6) Debt and Lines of Credit | |||||||||||||
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 April 2014, the Company, through its Operating Partnership, assumed $900.0 million aggregate principal amount of BRE senior notes and $711.3 million principal balance mortgage notes payable with remaining loan terms ranging from one to seven years and a 3.3% weighted average interest rate. The Company recorded the debt assumed at its fair value in accordance with the authoritative guidance for accounting for a business combination. As a result, a premium of $124.5 million was recorded to increase the carrying value of the debt, which is being amortized as a reduction of interest expense over the term of the related debt using the effective interest method. | |||||||||||||
In August 2014, the Company acquired a 220 unit apartment community located in Bellevue, Washington with cash and the assumption of the mortgage note securing the community with a principal balance of $21.5 million with a remaining term to maturity of ten years and a fixed interest rate of 5.5%. The recording of the mortgage note at fair value upon assumption resulted in a premium of $2.1 million which is being amortized as a reduction in interest expense over the term of the debt using the effective interest method. | |||||||||||||
Debt and lines of credit consist of the following (in thousands): | |||||||||||||
September 30, | December 31, | Weighted Average | |||||||||||
2014 | 2013 | Maturity | |||||||||||
In Years | |||||||||||||
Bonds private placement - fixed rate | $ | 465,000 | $ | 465,000 | 4.5 | ||||||||
Term loan - variable rate | 350,000 | 350,000 | 2.4 | ||||||||||
Unsecured Bonds - fixed rate | 1,930,487 | 595,023 | 7.3 | ||||||||||
Unsecured debt | 2,745,487 | 1,410,023 | |||||||||||
Mortgage notes | 2,258,010 | 1,404,080 | 5.8 | ||||||||||
Lines of credit | 222,628 | 219,421 | 4.5 | ||||||||||
Total debt (1) | $ | 5,226,125 | $ | 3,033,524 | |||||||||
Weighted average interest rate on fixed rate unsecured bonds | 3.6 | % | 4 | % | |||||||||
Weighted average interest rate on variable rate term loan | 2.4 | % | 2.5 | % | |||||||||
Weighted average interest rate on line of credit | 1.7 | % | 2.2 | % | |||||||||
Weighted average interest rate on mortgage notes | 4.6 | % | 4.7 | % | |||||||||
-1 | Includes total unamortized premium of $118,940 and $6,553 as of September 30, 2014 and December 31, 2013, respectively. | ||||||||||||
The aggregate scheduled principal payments of the Company’s outstanding debt as of September 30, 2014 are as follows (excluding lines of credit): | |||||||||||||
Remaining in 2014 | $ | 7,388 | |||||||||||
2015 | 94,580 | ||||||||||||
2016 | 391,481 | ||||||||||||
2017 | 688,683 | ||||||||||||
2018 | 320,080 | ||||||||||||
Thereafter | 3,382,345 | ||||||||||||
$ | 4,884,557 |
Segment_Information
Segment Information | 9 Months Ended | ||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||
Segment Information [Abstract] | ' | ||||||||||||||||
Segment Information | ' | ||||||||||||||||
(7) Segment Information | |||||||||||||||||
The Company defines its reportable operating segments as the three geographical regions in which its apartment communities are located: Southern California, Northern California and Seattle Metro. Excluded from segment revenues are properties classified in discontinued operations, 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, net operating income, and assets for each of the reportable operating segments are summarized as follows for the three and nine months ended September, 2014 and 2013 (in thousands): | |||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
September 30, | September 30, | ||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
Revenues: | |||||||||||||||||
Southern California | $ | 118,242 | $ | 65,805 | $ | 302,380 | $ | 195,272 | |||||||||
Northern California | 94,643 | 54,189 | 238,564 | 156,983 | |||||||||||||
Seattle Metro | 47,066 | 27,212 | 120,089 | 79,443 | |||||||||||||
Other real estate assets | 8,167 | 4,971 | 22,716 | 14,319 | |||||||||||||
Total property revenues | $ | 268,118 | $ | 152,177 | $ | 683,749 | $ | 446,017 | |||||||||
Net operating income: | |||||||||||||||||
Southern California | $ | 76,725 | $ | 43,237 | $ | 198,873 | $ | 130,398 | |||||||||
Northern California | 66,287 | 37,466 | 166,983 | 108,481 | |||||||||||||
Seattle Metro | 31,715 | 18,047 | 80,125 | 52,453 | |||||||||||||
Other real estate assets | 5,723 | 3,105 | 14,906 | 9,742 | |||||||||||||
Total net operating income | 180,450 | 101,855 | 460,887 | 301,074 | |||||||||||||
Management and other fees | 2,361 | 1,771 | 6,856 | 5,812 | |||||||||||||
Depreciation | (102,184 | ) | (48,227 | ) | (254,211 | ) | (142,687 | ) | |||||||||
General and administrative | (11,479 | ) | (6,263 | ) | (28,621 | ) | (19,852 | ) | |||||||||
Merger and integration expenses | (3,857 | ) | - | (46,413 | ) | - | |||||||||||
Acquisition and disposition costs | (51 | ) | (237 | ) | (1,555 | ) | (792 | ) | |||||||||
Interest expense | (45,830 | ) | (29,192 | ) | (117,021 | ) | (86,661 | ) | |||||||||
Interest and other income | 2,992 | 2,387 | 8,685 | 9,326 | |||||||||||||
Equity income from co-investments | 4,910 | 40,802 | 21,065 | 52,295 | |||||||||||||
Gain (loss) on early retirement of debt | - | (178 | ) | - | 846 | ||||||||||||
Gains on sale of real estate and land | 31,372 | - | 39,640 | 1,503 | |||||||||||||
Income from continuing operations | $ | 58,684 | $ | 62,718 | $ | 89,312 | $ | 120,864 | |||||||||
Total assets for each of the reportable operating segments are summarized as follows as of September 30, 2014 and December 31, 2013 (in thousands): | |||||||||||||||||
September 30, | December 31, | ||||||||||||||||
2014 | 2013 | ||||||||||||||||
Assets: | |||||||||||||||||
Southern California | $ | 4,323,148 | $ | 1,746,434 | |||||||||||||
Northern California | 3,698,020 | 1,614,159 | |||||||||||||||
Seattle Metro | 1,635,274 | 741,533 | |||||||||||||||
Other real estate assets | 147,317 | 86,745 | |||||||||||||||
Net reportable operating segment - real estate assets | 9,803,759 | 4,188,871 | |||||||||||||||
Real estate under development | 363,193 | 50,430 | |||||||||||||||
Co-investments | 1,043,277 | 677,133 | |||||||||||||||
Real estate held for sale, net | 107,772 | - | |||||||||||||||
Cash and cash equivalents, including restricted cash | 88,000 | 53,766 | |||||||||||||||
Marketable securities | 108,147 | 90,084 | |||||||||||||||
Notes and other receivables | 22,973 | 68,255 | |||||||||||||||
Other non-segment assets | 129,441 | 58,300 | |||||||||||||||
Total assets | $ | 11,666,562 | $ | 5,186,839 |
Net_Income_Per_Common_Share
Net Income Per Common Share | 9 Months Ended | ||||||||||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||||||||||
Net Income Per Common Share [Abstract] | ' | ||||||||||||||||||||||||
Net Income Per Common Share | ' | ||||||||||||||||||||||||
(8) Net Income Per Common Share | |||||||||||||||||||||||||
(Amounts in thousands, except per share and unit data) | |||||||||||||||||||||||||
Essex Property Trust, Inc. | |||||||||||||||||||||||||
Three Months Ended | Three Months Ended | ||||||||||||||||||||||||
30-Sep-14 | 30-Sep-13 | ||||||||||||||||||||||||
Income | Weighted- | Per | Income | Weighted- | Per | ||||||||||||||||||||
average | Common | average | Common | ||||||||||||||||||||||
Common | Share | Common | Share | ||||||||||||||||||||||
Shares | Amount | Shares | Amount | ||||||||||||||||||||||
Basic: | |||||||||||||||||||||||||
Income from continuing operations available to common stockholders | $ | 53,668 | 62,893 | $ | 0.85 | $ | 56,347 | 37,321 | $ | 1.51 | |||||||||||||||
Income from discontinued operations available to common stockholders | - | 62,893 | - | 12,441 | 37,321 | 0.33 | |||||||||||||||||||
$ | 53,668 | $ | 0.85 | $ | 68,788 | $ | 1.84 | ||||||||||||||||||
Effect of Dilutive Securities (1) | - | 177 | 54 | 116 | |||||||||||||||||||||
Diluted: | |||||||||||||||||||||||||
Income from continuing operations available to common stockholders | $ | 53,668 | 63,070 | $ | 0.85 | $ | 56,401 | 37,437 | $ | 1.51 | |||||||||||||||
Income from discontinued operations available to common stockholders | - | 63,070 | - | 12,441 | 37,437 | 0.33 | |||||||||||||||||||
$ | 53,668 | $ | 0.85 | $ | 68,842 | $ | 1.84 | ||||||||||||||||||
Nine Months Ended | Nine Months Ended | ||||||||||||||||||||||||
30-Sep-14 | 30-Sep-13 | ||||||||||||||||||||||||
Income | Weighted | Per | Income | Weighted | Per | ||||||||||||||||||||
Average | Common | Average | Common | ||||||||||||||||||||||
Common | Share | Common | Share | ||||||||||||||||||||||
Shares | Amount | Shares | Amount | ||||||||||||||||||||||
Basic: | |||||||||||||||||||||||||
Income before discontinued operations available to common stockholders | $ | 76,364 | 54,250 | $ | 1.41 | $ | 105,421 | 37,207 | $ | 2.84 | |||||||||||||||
Income from discontinued operations available to common stockholders | - | 54,250 | - | 13,516 | 37,207 | 0.36 | |||||||||||||||||||
76,364 | $ | 1.41 | 118,937 | $ | 3.2 | ||||||||||||||||||||
Effect of Dilutive Securities (1) | - | 193 | - | 89 | |||||||||||||||||||||
Diluted: | |||||||||||||||||||||||||
Income from continuing operations available to common stockholders (1) | 76,364 | 54,443 | 1.4 | $ | 105,421 | 37,296 | 2.83 | ||||||||||||||||||
Income from discontinued operations available to common stockholders | - | 54,443 | - | 13,516 | 37,296 | 0.36 | |||||||||||||||||||
$ | 76,364 | $ | 1.4 | $ | 118,937 | $ | 3.19 | ||||||||||||||||||
-1 | Weighted average convertible limited partnership units of 2,164,556 and 2,146,929 which include vested Series Z-1 incentive units, for the three months ended September 30, 2014, and 2013, 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 $1.8 million and $4.0 million for the three months ended September 30, 2014 and 2013, respectively, and $3.4 million and $7.0 million for the nine months ended September 30, 2014 and 2013, respectively have 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 8,343 and 42,518 for the three and nine months ended September 30, 2014, respectively, were not included in the diluted earnings per share calculation because the effects on earnings per share were anti-dilutive. Stock options of 38,825 and 38,825 for the three and nine months ended September 30, 2013, 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 | ||||||||||||||||||||||||
30-Sep-14 | 30-Sep-13 | ||||||||||||||||||||||||
Weighted- | Per | Weighted- | Per | ||||||||||||||||||||||
average | Common | average | Common | ||||||||||||||||||||||
Common | Unit | Common | Unit | ||||||||||||||||||||||
Income | Units | Amount | Income | Units | Amount | ||||||||||||||||||||
Basic: | |||||||||||||||||||||||||
Income from continuing operations available to common unitholders | $ | 55,484 | 65,057 | $ | 0.85 | $ | 59,620 | 39,467 | $ | 1.51 | |||||||||||||||
Income from discontinued operations | - | 65,057 | - | 13,157 | 39,467 | 0.33 | |||||||||||||||||||
Income available to common unitholders | $ | 55,484 | $ | 0.85 | $ | 72,777 | $ | 1.84 | |||||||||||||||||
Effect of Dilutive Securities (1) | - | 177 | 54 | 116 | |||||||||||||||||||||
Diluted: | |||||||||||||||||||||||||
Income from continuing operations available to common unitholders (1) | $ | 55,484 | 65,234 | $ | 0.85 | $ | 59,674 | 39,583 | $ | 1.51 | |||||||||||||||
Income from discontinued operations | - | 65,234 | - | 13,157 | 39,583 | 0.33 | |||||||||||||||||||
Income available to common unitholders | $ | 55,484 | $ | 0.85 | $ | 72,831 | $ | 1.84 | |||||||||||||||||
Nine Months Ended | Nine Months Ended | ||||||||||||||||||||||||
30-Sep-14 | 30-Sep-13 | ||||||||||||||||||||||||
Weighted- | Per | Weighted- | Per | ||||||||||||||||||||||
average | Common | average | Common | ||||||||||||||||||||||
Common | Unit | Common | Unit | ||||||||||||||||||||||
Income | Units | Amount | Income | Units | Amount | ||||||||||||||||||||
Basic: | |||||||||||||||||||||||||
Income from continuing operations available to common unitholders | $ | 79,806 | 56,485 | $ | 1.41 | $ | 111,685 | 39,333 | $ | 2.84 | |||||||||||||||
Income from discontinued operations | - | 56,485 | - | 14,289 | 39,333 | 0.36 | |||||||||||||||||||
Income available to common unitholders | $ | 79,806 | $ | 1.41 | $ | 125,974 | $ | 3.2 | |||||||||||||||||
Effect of Dilutive Securities (1) | - | 193 | - | 89 | |||||||||||||||||||||
Diluted: | |||||||||||||||||||||||||
Income from continuing operations available to common unitholders (1) | $ | 79,806 | 56,678 | $ | 1.41 | $ | 111,685 | 39,422 | $ | 2.84 | |||||||||||||||
Income from discontinued operations | - | 56,678 | - | 14,289 | 39,422 | 0.36 | |||||||||||||||||||
Income available to common unitholders | $ | 79,806 | $ | 1.41 | $ | 125,974 | $ | 3.2 | |||||||||||||||||
-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. | ||||||||||||||||||||||||
-2 | Stock options of 8,343 and 42,518 for the three and nine months ended September 30, 2014, respectively, were not included in the diluted earnings per share calculation because the effects on earnings per share were anti-dilutive. Stock options of 38,825 and 38,825 for the three and nine months ended September 30, 2013, respectively, were not included in the diluted earnings per share calculation because the effects on earnings per share were anti-dilutive. |
Derivative_Instruments_and_Hed
Derivative Instruments and Hedging Activities | 9 Months Ended |
Sep. 30, 2014 | |
Derivative Instruments and Hedging Activities [Abstract] | ' |
Derivative Instruments and Hedging Activities | ' |
(9) Derivative Instruments and Hedging Activities | |
As of September 30, 2014, the Company has entered into interest rate swap contracts with an aggregate notional amount of $300 million that effectively fixed the interest rate on $300 million of the $350 million unsecured term loan at 2.4%. These derivatives qualify for hedge accounting. | |
As of September 30, 2014, the Company also had nine interest rate cap contracts totaling a notional amount of $156.9 million that | |
qualify for hedge accounting as they 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. | |
As of September 30, 2014 and December 31, 2013, the aggregate carrying value of the interest rate swap contracts was a liability of $1.4 million and $2.7 million, respectively, which is classified in other liabilities on the condensed consolidated balance sheet. |
Commitments_and_Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2014 | |
Commitments and Contingencies [Abstract] | ' |
Commitments and Contingencies | ' |
(10) 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. | |
The Company provided payment and completion guarantees to the counterparties in relation to the total return swaps entered into by the joint venture responsible for certain co-investment development communities. The outstanding balance for the loans is included in the debt line item in the summarized balance sheet of the co-investments included in Note 3. The payment guarantee is for the payment of the amounts due to the counterparty related to the total return swaps which are scheduled to mature in September and December 2016. The maximum exposure of the guarantee as of September 30, 2014 was $114.4 million based on the aggregate outstanding debt amount. |
Organization_and_Basis_of_Pres1
Organization and Basis of Presentation (Policies) | 9 Months Ended | ||||||||||||
Sep. 30, 2014 | |||||||||||||
Organization and Basis of Presentation [Abstract] | ' | ||||||||||||
Cyber Intrusion Expenses | ' | ||||||||||||
Cyber-intrusion Expenses | |||||||||||||
In the third quarter of 2014, the Company reported that certain of its computer networks containing personal and proprietary information have been compromised by a cyber-intrusion. Essex has confirmed that evidence exists of exfiltration of data on Company systems. The precise nature of the data has not yet been identified and the Company does not presently have any evidence that data belonging to the Company has been misused. | |||||||||||||
After detecting unusual activity, the Company took immediate steps to assess and contain the intrusion and secure its systems. The Company has retained independent forensic computer experts to analyze the impacted data systems and is consulting with law enforcement. The investigation into this cyber-intrusion is ongoing, and Essex is working as quickly as possible to identify whether any employee or tenant data may be at risk. When the analysis is complete, the Company will promptly notify any affected parties, as appropriate. | |||||||||||||
The Company has recorded $1.2 million in cyber-intrusion expenses in the third quarter of 2014 and are included in general and administrative expense line item on the condensed consolidated statement of operations and comprehensive income. | |||||||||||||
Marketable Securities | ' | ||||||||||||
Marketable Securities | |||||||||||||
The Company reports its available for sale securities at fair value, based on quoted market prices (Level 2 for the unsecured bonds and Level 1 for the common stock and investment funds, as defined by the Financial Accounting Standards Board (“FASB”) standard for fair value measurements), and any unrealized gain or loss is recorded as other comprehensive income (loss). Realized gains and losses, interest and dividend income, and amortization of purchase discounts are included in interest and other income on the condensed consolidated statement of operations and comprehensive income. | |||||||||||||
As of September 30, 2014 and December 31, 2013, marketable securities consisted primarily of investment-grade unsecured bonds, common stock, investments in mortgage backed securities and investment funds that invest in equities and U.S. treasury or agency securities. As of September 30, 2014 and December 31, 2013, the Company classified its investments in mortgage backed securities, which mature through November 2019 and September 2020, as held to maturity, and accordingly, these securities are stated at their amortized cost. As of September 30, 2014 and December 31, 2013, marketable securities consist of the following ($ in thousands): | |||||||||||||
30-Sep-14 | |||||||||||||
Cost/ | Gross | Carrying Value | |||||||||||
Amortized | Unrealized | ||||||||||||
Cost | Gain | ||||||||||||
Available for sale: | |||||||||||||
Investment-grade unsecured bonds | $ | 14,396 | $ | (51 | ) | $ | 14,345 | ||||||
Investment funds - US treasuries | 5,018 | 7 | 5,025 | ||||||||||
Common stock | 22,523 | 957 | 23,480 | ||||||||||
Held to maturity: | |||||||||||||
Mortgage backed securities | 65,297 | - | 65,297 | ||||||||||
Total | $ | 107,234 | $ | 913 | $ | 108,147 | |||||||
31-Dec-13 | |||||||||||||
Cost/ | Gross | Carrying Value | |||||||||||
Amortized | Unrealized | ||||||||||||
Cost | Gain (Loss) | ||||||||||||
Available for sale: | |||||||||||||
Investment-grade unsecured bonds | $ | 15,446 | $ | 509 | $ | 15,955 | |||||||
Investment funds - US treasuries | 3,675 | 3 | 3,678 | ||||||||||
Common stock | 13,104 | (1,304 | ) | 11,800 | |||||||||
Held to maturity: | |||||||||||||
Mortgage backed securities | 58,651 | - | 58,651 | ||||||||||
Total | $ | 90,876 | $ | (792 | ) | $ | 90,084 | ||||||
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 nine months ended September 30, 2014 and 2013, the proceeds from sales of available for sale securities totaled $6.3 million and $22.8 million, respectively, which resulted in realized gains of $0.9 million and $1.8 million, respectively. | |||||||||||||
Variable Interest Entities | ' | ||||||||||||
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 991,983 and 1,007,879 as of September 30, 2014 and December 31, 2013 respectively, and the redemption value of the units, based on the closing price of the Company’s common stock totaled $177.3 million and $144.6 million, as of September 30, 2014 and December 31, 2013, respectively. The consolidated total assets and liabilities related to these VIEs, net of intercompany eliminations, were approximately $234.7 million and $224.4 million, respectively, as of September 30, 2014 and $194.9 million and $178.3 million, respectively, as of December 31, 2013. 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 September 30, 2014 and December 31, 2013, the Company did not have any other VIEs of which it was deemed to be the primary beneficiary. | |||||||||||||
Equity Based Compensation | ' | ||||||||||||
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, 2013) are being amortized over the expected service periods. | |||||||||||||
Stock-based compensation expense for options and restricted stock totaled $0.7 million and $0.5 million for the three months ended September 30, 2014 and 2013, respectively, and $2.9 million and $1.6 million for the nine months ended September 30, 2014 and 2013, respectively. The intrinsic value of the stock options exercised during the three months ended September 30, 2014 and 2013 totaled $1.0 million and $0.1 million, respectively, and $4.2 million and $2.9 million for the nine months ended September 30, 2014 and 2013, respectively. As of September 30, 2014, the intrinsic value of the stock options outstanding and fully vested totaled $15.7 million. As of September 30, 2014, total unrecognized compensation cost related to unvested share-based compensation granted under the stock option and restricted stock plans totaled $5.7 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. | |||||||||||||
The Company has adopted an incentive program involving the issuance of Series Z-1 Incentive Units of limited partnership interest in the Operating Partnership. The Operating Partnership also issued 50,500 units under the 2014 Long-Term Incentive Plan Award agreements in December 2013. Pursuant to the 2014 Long-Term Incentive Plan Awards, each recipient was initially granted a number of 2014 Long-Term Incentive Plan Units (the “2014 LTIP Units”), 90% of which are subject to performance-based vesting, and 10% of which are subject to service-based vesting based on continued employment. One-third of the performance-based vesting of the 2014 LTIP Units initially granted will be eligible to be earned by recipients based on Essex’s absolute total stockholder return and two-thirds will be eligible to be earned based on Essex’s relative total stockholder return, in each case, during a one-year performance period beginning on the initial grant date of the awards. All 2014 LTIP Units that are earned vest over a four year period commencing on the grant date. | |||||||||||||
Stock-based compensation expense for Z-1 Units and 2014 LTIP Units totaled $0.4 million and $0.5 million for the three months ended September 30, 2014 and 2013, respectively, and $1.5 million for the nine months ended September 30, 2014 and 2013. As of September 30, 2014, the intrinsic value of the Z-1 Units and 2014 LTIP Units subject to future vesting totaled $23.5 million. As of September 30, 2014, total unrecognized compensation cost related to Z-1 Units and 2014 LTIP Units subject to future vesting totaled $6.7 million. The unamortized cost is expected to be recognized over 6 years subject to the achievement of the stated performance criteria. | |||||||||||||
Fair Value of Financial Instruments | ' | ||||||||||||
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 September 30, 2014 and December 31, 2013, 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 $4.3 billion of fixed rate debt, including unsecured bonds, at September 30, 2014 is approximately $4.5 billion and the fair value of the Company’s $539.2 million of variable rate debt, excluding borrowings under the lines of credit, at September 30, 2014 is $520.4 million 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 September 30, 2014 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 September 30, 2014. | |||||||||||||
At September 30, 2014, the Company’s investments in mortgage backed securities had a carrying value of $65.3 million and the Company estimated the fair value to be approximately $93.7 million. At December 31, 2013, the Company’s investments in mortgage backed securities had a carrying value of $58.7 million and the Company estimated the fair value to be approximately $86.2 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 | ' | ||||||||||||
Capitalization of Costs | |||||||||||||
The Company’s capitalized internal costs related to development and redevelopment projects totaled $2.9 million and $1.8 million during the three months ended September 30, 2014 and 2013, respectively, and $7.6 million and $5.1 million during the nine months ended September 30, 2014 and 2013, respectively, most of which relates to development projects. These totals include capitalized salaries of $2.4 million and $0.8 million for the three months ended September, 2014 and 2013, respectively, and $6.7 million and $2.0 million for the nine months ended September 30, 2014 and 2013, 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 | ' | ||||||||||||
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 operations 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 | ' | ||||||||||||
Changes in Accumulated Other Comprehensive Loss, Net by Component | |||||||||||||
Essex Property Trust, Inc. | |||||||||||||
(in thousands): | |||||||||||||
Change in fair | Unrealized | Total | |||||||||||
value and amortization | gains/(losses) on | ||||||||||||
of derivatives | available for sale | ||||||||||||
securities | |||||||||||||
Balance at December 31, 2013 | $ | (59,724 | ) | $ | (748 | ) | $ | (60,472 | ) | ||||
Other comprehensive income before reclassification | 1,428 | 2,479 | 3,907 | ||||||||||
Amounts reclassified from accumulated other comprehensive loss | 5,997 | (841 | ) | 5,156 | |||||||||
Net other comprehensive income | 7,425 | 1,638 | 9,063 | ||||||||||
Balance at September 30, 2014 | $ | (52,298 | ) | $ | 890 | $ | (51,408 | ) | |||||
Essex Portfolio, L.P. | |||||||||||||
(in thousands): | |||||||||||||
Change in fair | Unrealized | Total | |||||||||||
value and amortization | gains/(losses) on | ||||||||||||
of derivatives | available for sale | ||||||||||||
securities | |||||||||||||
Balance at December 31, 2013 | $ | (58,148 | ) | $ | (792 | ) | $ | (58,940 | ) | ||||
Other comprehensive income before reclassification | 1,487 | 2,591 | 4,078 | ||||||||||
Amounts reclassified from accumulated other comprehensive loss | 6,245 | (886 | ) | 5,359 | |||||||||
Net other comprehensive income | 7,732 | 1,705 | 9,437 | ||||||||||
Balance at September 30, 2014 | $ | (50,416 | ) | $ | 913 | $ | (49,503 | ) | |||||
Amounts reclassified from accumulated other comprehensive loss in connection with derivatives are recorded in interest expense on the condensed consolidated statement of operations 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 operations and comprehensive income. | |||||||||||||
Accounting Estimates | ' | ||||||||||||
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. | |||||||||||||
Discontinued Operations | ' | ||||||||||||
Discontinued Operations | |||||||||||||
In April 2014, the Financial Accounting Standards Board (“FASB”) issued ASU, No. 2014-018, Presentation of Financial Statements, Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity. ASU 2014-018 changes the requirements for reporting discontinued operation under Subtopic 205-20, Presentation of Financial Statements—Discontinued Operations. The amendment updates the definition of discontinued operations and defines discontinued operations to be those disposals of components of an entity that represent a strategic shift that has (or will have) a major effect on an entity’s operations and financial results. This ASU is effective for disposals of components of an entity that occur within annual periods beginning on or after December 15, 2014 with early adoption permitted, but only for disposals that have not been reported in financial statements previously issued. | |||||||||||||
The Company adopted ASU 2014-018 in its first quarter of 2014. In the first quarter of 2014, Essex sold Vista Capri North, a 106 unit community located in San Diego, California for $14.4 million. The total gain on sale was $7.9 million. | |||||||||||||
The Company did not sell any properties in the second quarter of 2014. | |||||||||||||
During the third quarter of 2014, the Company sold Coldwater Canyon, a 39 unit community located in Studio City, CA for $9.5 million. The total gain on sale was $2.2 million. Also during the third quarter, the Company sold Mt. Sutro, a 99 unit community located in San Francisco, CA for $39.5 million. The total gain on sale was $29.2 million. | |||||||||||||
The Company determined that the disposals through the nine months ended September 30, 2014 were not a discontinued operation in accordance with ASU 2014-018. The gains related to these disposals are recorded in gains on sale of real estate and land in the condensed consolidated statements of operations and comprehensive income. | |||||||||||||
BRE Merger | ' | ||||||||||||
BRE Merger | |||||||||||||
The merger with 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 preliminary 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 preliminary fair value of the assets and liabilities acquired on April 1, 2014 and adjustments to the provisional valuations during the measurement period 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 | 5,618 | ||||||||||||
Real estate held for sale, net | 108 | ||||||||||||
Co-investments | 218 | ||||||||||||
Acquired in-place lease value | 80 | ||||||||||||
Other assets | 16 | ||||||||||||
Mortgage notes payable and unsecured debt | (1,747 | ) | |||||||||||
Other liabilities | (94 | ) | |||||||||||
Redeemable noncontrolling interest | (5 | ) | |||||||||||
4,334 | |||||||||||||
Cash consideration for BRE merger | $ | 556 | |||||||||||
Equity consideration for BRE merger | 3,778 | ||||||||||||
Total consideration for BRE merger | $ | 4,334 | |||||||||||
During the quarter ended September 30, 2014, the Company recorded an adjustment to increase the preliminary fair value of personal property by $100.9 million with an estimated useful life of 5 years with an offsetting decrease in real property with an estimated useful life of 30 years, all of which are classified within rental properties and real estate under development. This resulted in additional depreciation expense of $4.2 million and $8.5 million for the three and nine months ended September 30, 2014. The changes in estimates were the result of additional accounting information 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, but the Company is waiting for additional information necessary to finalize those fair values. Thus, the provisional measurements of fair value set forth above are subject to change further. The Company expects to complete the purchase accounting process as soon as practicable but no later than one year from the acquisition date. | |||||||||||||
The unaudited pro forma financial information set forth below is based on Essex’s historical condensed consolidated statement of operations and comprehensive income for the three and nine months ended September 30, 2014 and September 30, 2013, adjusted to give effect to the merger with BRE including the 14 BRE properties acquired on March 31, 2014, as if they occurred on January 1, 2013. The unaudited pro forma adjustments primarily relate to merger expenses, depreciation expense on acquired buildings and improvements, amortization of acquired intangibles, and estimated interest expense related to assumed debt. | |||||||||||||
Essex Property Trust, Inc. | |||||||||||||
Pro forma (unaudited) | |||||||||||||
three months ended September 30 | |||||||||||||
(in thousands, except per share data) | |||||||||||||
2014 | 2013 | ||||||||||||
Total revenue | $ | 270,479 | $ | 238,668 | |||||||||
Net income available to common stockholders (1) | $ | 59,341 | $ | 59,361 | |||||||||
Earnings per share, diluted (1) | $ | 0.91 | $ | 0.95 | |||||||||
Pro forma (unaudited) | |||||||||||||
nine months ended September 30 | |||||||||||||
(in thousands, except per share data) | |||||||||||||
2014 | 2013 | ||||||||||||
Total revenue | $ | 776,761 | $ | 699,701 | |||||||||
Net income available to common stockholders (1) (2) | $ | 214,549 | $ | 66,806 | |||||||||
Earnings per share, diluted (1) | $ | 3.34 | $ | 1.07 | |||||||||
Essex Portfolio, L.P. | |||||||||||||
Pro forma (unaudited) | |||||||||||||
three months ended September 30 | |||||||||||||
(in thousands, except per unit data) | |||||||||||||
2014 | 2013 | ||||||||||||
Total revenue | $ | 270,479 | $ | 238,668 | |||||||||
Net income available to common unitholders (1) | $ | 59,341 | $ | 59,361 | |||||||||
Earnings per unit, diluted (1) | $ | 0.91 | $ | 0.95 | |||||||||
Pro forma (unaudited) | |||||||||||||
nine months ended September 30 | |||||||||||||
(in thousands, except per unit data) | |||||||||||||
2014 | 2013 | ||||||||||||
Total revenue | $ | 776,761 | $ | 699,701 | |||||||||
Net income available to common unitholders (1) (2) | $ | 214,549 | $ | 66,690 | |||||||||
Earnings per unit, diluted (1) | $ | 3.34 | $ | 1.07 | |||||||||
-1 | The supplemental unaudited pro forma net income available to common stockholders were adjusted to exclude $3.9 million and $46.4 million of merger related costs incurred by Essex during the three and nine months ended September 30, 2014. The 2013 supplemental unaudited pro forma net income available to common stockholders was adjusted to include the above adjustments plus $4.3 million of merger related costs incurred by Essex during the three months ended December 31, 2013. The supplemental 2014 and 2013 unaudited proforma earnings per share, diluted, was adjusted by approximately 23.1 million shares due to the common stock issued in connection with the merger. | ||||||||||||
-2 | The supplemental unaudited pro forma net income available to common stockholders for the nine months ended September 30, 2014, include approximately $105 million from discontinued operations related to the sale of three BRE properties during the quarter ended March 31, 2014 that are non-recurring transactions. | ||||||||||||
Revenues of approximately $95.2 million and net loss of approximately $6.0 million associated with properties acquired in 2014 in the BRE merger are included in the condensed consolidated statements of operations and comprehensive income for the three months ended September 30, 2014 for both the Company and Operating Partnership. Revenues of approximately $186.7 million and net loss of approximately $14.2 million associated with properties acquired in 2014 in the BRE merger are included in the condensed consolidated statements of operations and comprehensive income for the nine months ended September 30, 2014 for both the Company and Operating Partnership. | |||||||||||||
Real estate classified as held for sale as of September 30, 2014 were $108 million. The carrying value of real estate held for sale represents fair values determined in the preliminary allocation of the recently completed BRE merger, adjusted for operating activity since April 1, 2014. The fair values were determined based on standard valuation techniques with inputs that are unobservable and significant to the overall fair value measurement. |
Organization_and_Basis_of_Pres2
Organization and Basis of Presentation (Tables) | 9 Months Ended | ||||||||||||
Sep. 30, 2014 | |||||||||||||
Organization and Basis of Presentation [Abstract] | ' | ||||||||||||
Components of Marketable Securities | ' | ||||||||||||
As of September 30, 2014 and December 31, 2013, marketable securities consist of the following ($ in thousands): | |||||||||||||
30-Sep-14 | |||||||||||||
Cost/ | Gross | Carrying Value | |||||||||||
Amortized | Unrealized | ||||||||||||
Cost | Gain | ||||||||||||
Available for sale: | |||||||||||||
Investment-grade unsecured bonds | $ | 14,396 | $ | (51 | ) | $ | 14,345 | ||||||
Investment funds - US treasuries | 5,018 | 7 | 5,025 | ||||||||||
Common stock | 22,523 | 957 | 23,480 | ||||||||||
Held to maturity: | |||||||||||||
Mortgage backed securities | 65,297 | - | 65,297 | ||||||||||
Total | $ | 107,234 | $ | 913 | $ | 108,147 | |||||||
31-Dec-13 | |||||||||||||
Cost/ | Gross | Carrying Value | |||||||||||
Amortized | Unrealized | ||||||||||||
Cost | Gain (Loss) | ||||||||||||
Available for sale: | |||||||||||||
Investment-grade unsecured bonds | $ | 15,446 | $ | 509 | $ | 15,955 | |||||||
Investment funds - US treasuries | 3,675 | 3 | 3,678 | ||||||||||
Common stock | 13,104 | (1,304 | ) | 11,800 | |||||||||
Held to maturity: | |||||||||||||
Mortgage backed securities | 58,651 | - | 58,651 | ||||||||||
Total | $ | 90,876 | $ | (792 | ) | $ | 90,084 | ||||||
Changes in Accumulated Other Comprehensive Loss, Net by Component | ' | ||||||||||||
Changes in Accumulated Other Comprehensive Loss, Net by Component | |||||||||||||
Essex Property Trust, Inc. | |||||||||||||
(in thousands): | |||||||||||||
Change in fair | Unrealized | Total | |||||||||||
value and amortization | gains/(losses) on | ||||||||||||
of derivatives | available for sale | ||||||||||||
securities | |||||||||||||
Balance at December 31, 2013 | $ | (59,724 | ) | $ | (748 | ) | $ | (60,472 | ) | ||||
Other comprehensive income before reclassification | 1,428 | 2,479 | 3,907 | ||||||||||
Amounts reclassified from accumulated other comprehensive loss | 5,997 | (841 | ) | 5,156 | |||||||||
Net other comprehensive income | 7,425 | 1,638 | 9,063 | ||||||||||
Balance at September 30, 2014 | $ | (52,298 | ) | $ | 890 | $ | (51,408 | ) | |||||
Essex Portfolio, L.P. | |||||||||||||
(in thousands): | |||||||||||||
Change in fair | Unrealized | Total | |||||||||||
value and amortization | gains/(losses) on | ||||||||||||
of derivatives | available for sale | ||||||||||||
securities | |||||||||||||
Balance at December 31, 2013 | $ | (58,148 | ) | $ | (792 | ) | $ | (58,940 | ) | ||||
Other comprehensive income before reclassification | 1,487 | 2,591 | 4,078 | ||||||||||
Amounts reclassified from accumulated other comprehensive loss | 6,245 | (886 | ) | 5,359 | |||||||||
Net other comprehensive income | 7,732 | 1,705 | 9,437 | ||||||||||
Balance at September 30, 2014 | $ | (50,416 | ) | $ | 913 | $ | (49,503 | ) | |||||
Preliminary Fair Values of Assets and Liabilities Acquired | ' | ||||||||||||
A summary of the preliminary fair value of the assets and liabilities acquired on April 1, 2014 and adjustments to the provisional valuations during the measurement period 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 | 5,618 | ||||||||||||
Real estate held for sale, net | 108 | ||||||||||||
Co-investments | 218 | ||||||||||||
Acquired in-place lease value | 80 | ||||||||||||
Other assets | 16 | ||||||||||||
Mortgage notes payable and unsecured debt | (1,747 | ) | |||||||||||
Other liabilities | (94 | ) | |||||||||||
Redeemable noncontrolling interest | (5 | ) | |||||||||||
4,334 | |||||||||||||
Cash consideration for BRE merger | $ | 556 | |||||||||||
Equity consideration for BRE merger | 3,778 | ||||||||||||
Total consideration for BRE merger | $ | 4,334 | |||||||||||
Pro Forma Information | ' | ||||||||||||
The unaudited pro forma adjustments primarily relate to merger expenses, depreciation expense on acquired buildings and improvements, amortization of acquired intangibles, and estimated interest expense related to assumed debt. | |||||||||||||
Essex Property Trust, Inc. | |||||||||||||
Pro forma (unaudited) | |||||||||||||
three months ended September 30 | |||||||||||||
(in thousands, except per share data) | |||||||||||||
2014 | 2013 | ||||||||||||
Total revenue | $ | 270,479 | $ | 238,668 | |||||||||
Net income available to common stockholders (1) | $ | 59,341 | $ | 59,361 | |||||||||
Earnings per share, diluted (1) | $ | 0.91 | $ | 0.95 | |||||||||
Pro forma (unaudited) | |||||||||||||
nine months ended September 30 | |||||||||||||
(in thousands, except per share data) | |||||||||||||
2014 | 2013 | ||||||||||||
Total revenue | $ | 776,761 | $ | 699,701 | |||||||||
Net income available to common stockholders (1) (2) | $ | 214,549 | $ | 66,806 | |||||||||
Earnings per share, diluted (1) | $ | 3.34 | $ | 1.07 | |||||||||
Essex Portfolio, L.P. | |||||||||||||
Pro forma (unaudited) | |||||||||||||
three months ended September 30 | |||||||||||||
(in thousands, except per unit data) | |||||||||||||
2014 | 2013 | ||||||||||||
Total revenue | $ | 270,479 | $ | 238,668 | |||||||||
Net income available to common unitholders (1) | $ | 59,341 | $ | 59,361 | |||||||||
Earnings per unit, diluted (1) | $ | 0.91 | $ | 0.95 | |||||||||
Pro forma (unaudited) | |||||||||||||
nine months ended September 30 | |||||||||||||
(in thousands, except per unit data) | |||||||||||||
2014 | 2013 | ||||||||||||
Total revenue | $ | 776,761 | $ | 699,701 | |||||||||
Net income available to common unitholders (1) (2) | $ | 214,549 | $ | 66,690 | |||||||||
Earnings per unit, diluted (1) | $ | 3.34 | $ | 1.07 | |||||||||
-1 | The supplemental unaudited pro forma net income available to common stockholders were adjusted to exclude $3.9 million and $46.4 million of merger related costs incurred by Essex during the three and nine months ended September 30, 2014. The 2013 supplemental unaudited pro forma net income available to common stockholders was adjusted to include the above adjustments plus $4.3 million of merger related costs incurred by Essex during the three months ended December 31, 2013. The supplemental 2014 and 2013 unaudited proforma earnings per share, diluted, was adjusted by approximately 23.1 million shares due to the common stock issued in connection with the merger. | ||||||||||||
-2 | The supplemental unaudited pro forma net income available to common stockholders for the nine months ended September 30, 2014, include approximately $105 million from discontinued operations related to the sale of three BRE properties during the quarter ended March 31, 2014 that are non-recurring transactions. |
Coinvestments_Tables
Co-investments (Tables) | 9 Months Ended | ||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||
Co-investments [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 Company's co-investments (in thousands): | |||||||||||||||||
September 30, | December 31, | ||||||||||||||||
2014 | 2013 | ||||||||||||||||
Membership interest/Partnership interest in: | |||||||||||||||||
Wesco I | $ | 135,875 | $ | 142,025 | |||||||||||||
Wesco III | 53,411 | 39,073 | |||||||||||||||
Fund II | 2,578 | 4,166 | |||||||||||||||
Expo | 8,305 | 12,041 | |||||||||||||||
The Huxley | 11,784 | 11,224 | |||||||||||||||
Connolly Station | 47,661 | 45,242 | |||||||||||||||
Wesco IV | 95,338 | - | |||||||||||||||
BEXAEW | 89,504 | - | |||||||||||||||
Total operating co-investments | 444,456 | 253,771 | |||||||||||||||
Membership interest in: | |||||||||||||||||
Limited liability companies with CPPIB that own and are developing Epic, Mosso I and II, Park 20, The Emme, and The Owens & Hacienda (1) | 364,779 | 256,296 | |||||||||||||||
One South Market | 30,498 | 17,115 | |||||||||||||||
The Dylan | 8,396 | 7,321 | |||||||||||||||
Century Towers | 13,491 | - | |||||||||||||||
Total development co-investments | 417,164 | 280,732 | |||||||||||||||
Membership interest in Wesco II that owns a preferred equity interest in Parkmerced with a preferred return of 10.1% | 95,934 | 94,711 | |||||||||||||||
Preferred interest in related party limited liability company that owns Sage at Cupertino with a preferred return of 9.5% | 16,471 | 15,775 | |||||||||||||||
Preferred interest in a related party limited liability company that owns Madison Park at Anaheim with a preferred return of 9% | 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% | 10,148 | 9,455 | |||||||||||||||
Preferred interest in a limited liability company that owns an apartment development in San Jose with a preferred return of 12% | 9,710 | 8,865 | |||||||||||||||
Preferred interest in a limited liability company that owns 8th & Thomas with a preferred return of 10.0% | 12,816 | - | |||||||||||||||
Preferred interest in a limited liability company that owns Newbury Park with a preferred return of 12.0% | 12,754 | - | |||||||||||||||
Preferred interest in a limited liability company that owns Century Towers with a preferred return of 10.0% | 10,000 | - | |||||||||||||||
Total preferred interest co-investments | 181,657 | 142,630 | |||||||||||||||
Total co-investments | $ | 1,043,277 | $ | 677,133 | |||||||||||||
-1 | Epic Phase I and II are currently in operations. The co-investment will be moved to operating co-investment with the completion of Phase III. | ||||||||||||||||
Summarized Financial Statement for Co Investment Accounted for Under the Equity Method | ' | ||||||||||||||||
The combined summarized balance sheet and statements of operations for co-investments are as follows (in thousands). | |||||||||||||||||
September 30, | December 31, | ||||||||||||||||
2014 | 2013 | ||||||||||||||||
Balance sheets: | |||||||||||||||||
Rental properties and real estate under development | $ | 3,084,852 | $ | 1,953,328 | |||||||||||||
Other assets | 110,752 | 61,578 | |||||||||||||||
Total assets | $ | 3,195,604 | $ | 2,014,906 | |||||||||||||
Debt | $ | 1,285,954 | $ | 667,641 | |||||||||||||
Other liabilities | 83,344 | 125,479 | |||||||||||||||
Equity | 1,826,306 | 1,221,786 | |||||||||||||||
Total liabilities and equity | $ | 3,195,604 | $ | 2,014,906 | |||||||||||||
Company's share of equity | $ | 1,043,277 | $ | 677,133 | |||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
September 30, | September 30, | ||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
Statements of operations: | |||||||||||||||||
Property revenues | $ | 51,725 | $ | 24,796 | $ | 128,469 | $ | 78,913 | |||||||||
Property operating expenses | (18,759 | ) | (10,170 | ) | (48,875 | ) | (29,872 | ) | |||||||||
Net property operating income | 32,966 | 14,626 | 79,594 | 49,041 | |||||||||||||
Gain on sale of real estate | - | 137,845 | 11,369 | 146,663 | |||||||||||||
Interest expense | (9,838 | ) | (6,052 | ) | (25,283 | ) | (18,924 | ) | |||||||||
General and administrative | (1,840 | ) | (1,419 | ) | (5,039 | ) | (4,472 | ) | |||||||||
Equity income from co-investments | 4,808 | - | 14,351 | - | |||||||||||||
Depreciation and amortization | (21,357 | ) | (8,718 | ) | (49,935 | ) | (29,314 | ) | |||||||||
Net income | $ | 4,739 | $ | 136,282 | $ | 25,057 | $ | 142,994 | |||||||||
Company's share of net income | $ | 4,910 | $ | 40,802 | $ | 21,065 | $ | 52,295 |
Notes_and_Other_Receivables_Ta
Notes and Other Receivables (Tables) | 9 Months Ended | ||||||||
Sep. 30, 2014 | |||||||||
Notes and Other Receivables [Abstract] | ' | ||||||||
Notes and Other Receivables | ' | ||||||||
Notes receivable secured by real estate and other receivables consist of the following as of September 30, 2014 and December 31, 2013 (in thousands): | |||||||||
September 30, | December 31, | ||||||||
2014 | 2013 | ||||||||
Notes receivable, secured, bearing interest at 4.0% per annum, principal and accrued interest due December 2014 (1) | $ | 3,212 | $ | 3,212 | |||||
Notes and other receivables from affiliates (2) | 9,086 | 60,968 | |||||||
Other receivables (3) | 10,675 | 4,075 | |||||||
$ | 22,973 | $ | 68,255 | ||||||
-1 | The borrower funds an impound account for capital replacement. | ||||||||
-2 | The Company had $9.1 million of short-term loans outstanding and due from various legacy and BRE joint ventures. See Note 5, Related Party Transaction, for additional details. | ||||||||
-3 | The Company has BRE and legacy receivables for utilities, rents and other tenant receivables. |
Debt_and_Lines_of_Credit_Table
Debt and Lines of Credit (Tables) | 9 Months Ended | ||||||||||||
Sep. 30, 2014 | |||||||||||||
Debt and Lines of Credit [Abstract] | ' | ||||||||||||
Schedule of debt and lines of credit | ' | ||||||||||||
Debt and lines of credit consist of the following (in thousands): | |||||||||||||
September 30, | December 31, | Weighted Average | |||||||||||
2014 | 2013 | Maturity | |||||||||||
In Years | |||||||||||||
Bonds private placement - fixed rate | $ | 465,000 | $ | 465,000 | 4.5 | ||||||||
Term loan - variable rate | 350,000 | 350,000 | 2.4 | ||||||||||
Unsecured Bonds - fixed rate | 1,930,487 | 595,023 | 7.3 | ||||||||||
Unsecured debt | 2,745,487 | 1,410,023 | |||||||||||
Mortgage notes | 2,258,010 | 1,404,080 | 5.8 | ||||||||||
Lines of credit | 222,628 | 219,421 | 4.5 | ||||||||||
Total debt (1) | $ | 5,226,125 | $ | 3,033,524 | |||||||||
Weighted average interest rate on fixed rate unsecured bonds | 3.6 | % | 4 | % | |||||||||
Weighted average interest rate on variable rate term loan | 2.4 | % | 2.5 | % | |||||||||
Weighted average interest rate on line of credit | 1.7 | % | 2.2 | % | |||||||||
Weighted average interest rate on mortgage notes | 4.6 | % | 4.7 | % | |||||||||
-1 | Includes total unamortized premium of $118,940 and $6,553 as of September 30, 2014 and December 31, 2013, respectively. | ||||||||||||
Summary of aggregate scheduled principal payments | ' | ||||||||||||
The aggregate scheduled principal payments of the Company’s outstanding debt as of September 30, 2014 are as follows (excluding lines of credit): | |||||||||||||
Remaining in 2014 | $ | 7,388 | |||||||||||
2015 | 94,580 | ||||||||||||
2016 | 391,481 | ||||||||||||
2017 | 688,683 | ||||||||||||
2018 | 320,080 | ||||||||||||
Thereafter | 3,382,345 | ||||||||||||
$ | 4,884,557 |
Segment_Information_Tables
Segment Information (Tables) | 9 Months Ended | ||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||
Segment Information [Abstract] | ' | ||||||||||||||||
Reconciliation of Revenues and Operating Profit Loss from Segments to Consolidated | ' | ||||||||||||||||
The revenues, net operating income, and assets for each of the reportable operating segments are summarized as follows for the three and nine months ended September, 2014 and 2013 (in thousands): | |||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
September 30, | September 30, | ||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
Revenues: | |||||||||||||||||
Southern California | $ | 118,242 | $ | 65,805 | $ | 302,380 | $ | 195,272 | |||||||||
Northern California | 94,643 | 54,189 | 238,564 | 156,983 | |||||||||||||
Seattle Metro | 47,066 | 27,212 | 120,089 | 79,443 | |||||||||||||
Other real estate assets | 8,167 | 4,971 | 22,716 | 14,319 | |||||||||||||
Total property revenues | $ | 268,118 | $ | 152,177 | $ | 683,749 | $ | 446,017 | |||||||||
Net operating income: | |||||||||||||||||
Southern California | $ | 76,725 | $ | 43,237 | $ | 198,873 | $ | 130,398 | |||||||||
Northern California | 66,287 | 37,466 | 166,983 | 108,481 | |||||||||||||
Seattle Metro | 31,715 | 18,047 | 80,125 | 52,453 | |||||||||||||
Other real estate assets | 5,723 | 3,105 | 14,906 | 9,742 | |||||||||||||
Total net operating income | 180,450 | 101,855 | 460,887 | 301,074 | |||||||||||||
Management and other fees | 2,361 | 1,771 | 6,856 | 5,812 | |||||||||||||
Depreciation | (102,184 | ) | (48,227 | ) | (254,211 | ) | (142,687 | ) | |||||||||
General and administrative | (11,479 | ) | (6,263 | ) | (28,621 | ) | (19,852 | ) | |||||||||
Merger and integration expenses | (3,857 | ) | - | (46,413 | ) | - | |||||||||||
Acquisition and disposition costs | (51 | ) | (237 | ) | (1,555 | ) | (792 | ) | |||||||||
Interest expense | (45,830 | ) | (29,192 | ) | (117,021 | ) | (86,661 | ) | |||||||||
Interest and other income | 2,992 | 2,387 | 8,685 | 9,326 | |||||||||||||
Equity income from co-investments | 4,910 | 40,802 | 21,065 | 52,295 | |||||||||||||
Gain (loss) on early retirement of debt | - | (178 | ) | - | 846 | ||||||||||||
Gains on sale of real estate and land | 31,372 | - | 39,640 | 1,503 | |||||||||||||
Income from continuing operations | $ | 58,684 | $ | 62,718 | $ | 89,312 | $ | 120,864 | |||||||||
Reconciliation of Assets from Segment to Consolidated | ' | ||||||||||||||||
Total assets for each of the reportable operating segments are summarized as follows as of September 30, 2014 and December 31, 2013 (in thousands): | |||||||||||||||||
September 30, | December 31, | ||||||||||||||||
2014 | 2013 | ||||||||||||||||
Assets: | |||||||||||||||||
Southern California | $ | 4,323,148 | $ | 1,746,434 | |||||||||||||
Northern California | 3,698,020 | 1,614,159 | |||||||||||||||
Seattle Metro | 1,635,274 | 741,533 | |||||||||||||||
Other real estate assets | 147,317 | 86,745 | |||||||||||||||
Net reportable operating segment - real estate assets | 9,803,759 | 4,188,871 | |||||||||||||||
Real estate under development | 363,193 | 50,430 | |||||||||||||||
Co-investments | 1,043,277 | 677,133 | |||||||||||||||
Real estate held for sale, net | 107,772 | - | |||||||||||||||
Cash and cash equivalents, including restricted cash | 88,000 | 53,766 | |||||||||||||||
Marketable securities | 108,147 | 90,084 | |||||||||||||||
Notes and other receivables | 22,973 | 68,255 | |||||||||||||||
Other non-segment assets | 129,441 | 58,300 | |||||||||||||||
Total assets | $ | 11,666,562 | $ | 5,186,839 |
Net_Income_Per_Common_Share_Ta
Net Income Per Common Share (Tables) | 9 Months Ended | ||||||||||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||||||||||
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 | ||||||||||||||||||||||||
30-Sep-14 | 30-Sep-13 | ||||||||||||||||||||||||
Income | Weighted- | Per | Income | Weighted- | Per | ||||||||||||||||||||
average | Common | average | Common | ||||||||||||||||||||||
Common | Share | Common | Share | ||||||||||||||||||||||
Shares | Amount | Shares | Amount | ||||||||||||||||||||||
Basic: | |||||||||||||||||||||||||
Income from continuing operations available to common stockholders | $ | 53,668 | 62,893 | $ | 0.85 | $ | 56,347 | 37,321 | $ | 1.51 | |||||||||||||||
Income from discontinued operations available to common stockholders | - | 62,893 | - | 12,441 | 37,321 | 0.33 | |||||||||||||||||||
$ | 53,668 | $ | 0.85 | $ | 68,788 | $ | 1.84 | ||||||||||||||||||
Effect of Dilutive Securities (1) | - | 177 | 54 | 116 | |||||||||||||||||||||
Diluted: | |||||||||||||||||||||||||
Income from continuing operations available to common stockholders | $ | 53,668 | 63,070 | $ | 0.85 | $ | 56,401 | 37,437 | $ | 1.51 | |||||||||||||||
Income from discontinued operations available to common stockholders | - | 63,070 | - | 12,441 | 37,437 | 0.33 | |||||||||||||||||||
$ | 53,668 | $ | 0.85 | $ | 68,842 | $ | 1.84 | ||||||||||||||||||
Nine Months Ended | Nine Months Ended | ||||||||||||||||||||||||
30-Sep-14 | 30-Sep-13 | ||||||||||||||||||||||||
Income | Weighted | Per | Income | Weighted | Per | ||||||||||||||||||||
Average | Common | Average | Common | ||||||||||||||||||||||
Common | Share | Common | Share | ||||||||||||||||||||||
Shares | Amount | Shares | Amount | ||||||||||||||||||||||
Basic: | |||||||||||||||||||||||||
Income before discontinued operations available to common stockholders | $ | 76,364 | 54,250 | $ | 1.41 | $ | 105,421 | 37,207 | $ | 2.84 | |||||||||||||||
Income from discontinued operations available to common stockholders | - | 54,250 | - | 13,516 | 37,207 | 0.36 | |||||||||||||||||||
76,364 | $ | 1.41 | 118,937 | $ | 3.2 | ||||||||||||||||||||
Effect of Dilutive Securities (1) | - | 193 | - | 89 | |||||||||||||||||||||
Diluted: | |||||||||||||||||||||||||
Income from continuing operations available to common stockholders (1) | 76,364 | 54,443 | 1.4 | $ | 105,421 | 37,296 | 2.83 | ||||||||||||||||||
Income from discontinued operations available to common stockholders | - | 54,443 | - | 13,516 | 37,296 | 0.36 | |||||||||||||||||||
$ | 76,364 | $ | 1.4 | $ | 118,937 | $ | 3.19 | ||||||||||||||||||
-1 | Weighted average convertible limited partnership units of 2,164,556 and 2,146,929 which include vested Series Z-1 incentive units, for the three months ended September 30, 2014, and 2013, 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 $1.8 million and $4.0 million for the three months ended September 30, 2014 and 2013, respectively, and $3.4 million and $7.0 million for the nine months ended September 30, 2014 and 2013, respectively have 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 | ||||||||||||||||||||||||
30-Sep-14 | 30-Sep-13 | ||||||||||||||||||||||||
Weighted- | Per | Weighted- | Per | ||||||||||||||||||||||
average | Common | average | Common | ||||||||||||||||||||||
Common | Unit | Common | Unit | ||||||||||||||||||||||
Income | Units | Amount | Income | Units | Amount | ||||||||||||||||||||
Basic: | |||||||||||||||||||||||||
Income from continuing operations available to common unitholders | $ | 55,484 | 65,057 | $ | 0.85 | $ | 59,620 | 39,467 | $ | 1.51 | |||||||||||||||
Income from discontinued operations | - | 65,057 | - | 13,157 | 39,467 | 0.33 | |||||||||||||||||||
Income available to common unitholders | $ | 55,484 | $ | 0.85 | $ | 72,777 | $ | 1.84 | |||||||||||||||||
Effect of Dilutive Securities (1) | - | 177 | 54 | 116 | |||||||||||||||||||||
Diluted: | |||||||||||||||||||||||||
Income from continuing operations available to common unitholders (1) | $ | 55,484 | 65,234 | $ | 0.85 | $ | 59,674 | 39,583 | $ | 1.51 | |||||||||||||||
Income from discontinued operations | - | 65,234 | - | 13,157 | 39,583 | 0.33 | |||||||||||||||||||
Income available to common unitholders | $ | 55,484 | $ | 0.85 | $ | 72,831 | $ | 1.84 | |||||||||||||||||
Nine Months Ended | Nine Months Ended | ||||||||||||||||||||||||
30-Sep-14 | 30-Sep-13 | ||||||||||||||||||||||||
Weighted- | Per | Weighted- | Per | ||||||||||||||||||||||
average | Common | average | Common | ||||||||||||||||||||||
Common | Unit | Common | Unit | ||||||||||||||||||||||
Income | Units | Amount | Income | Units | Amount | ||||||||||||||||||||
Basic: | |||||||||||||||||||||||||
Income from continuing operations available to common unitholders | $ | 79,806 | 56,485 | $ | 1.41 | $ | 111,685 | 39,333 | $ | 2.84 | |||||||||||||||
Income from discontinued operations | - | 56,485 | - | 14,289 | 39,333 | 0.36 | |||||||||||||||||||
Income available to common unitholders | $ | 79,806 | $ | 1.41 | $ | 125,974 | $ | 3.2 | |||||||||||||||||
Effect of Dilutive Securities (1) | - | 193 | - | 89 | |||||||||||||||||||||
Diluted: | |||||||||||||||||||||||||
Income from continuing operations available to common unitholders (1) | $ | 79,806 | 56,678 | $ | 1.41 | $ | 111,685 | 39,422 | $ | 2.84 | |||||||||||||||
Income from discontinued operations | - | 56,678 | - | 14,289 | 39,422 | 0.36 | |||||||||||||||||||
Income available to common unitholders | $ | 79,806 | $ | 1.41 | $ | 125,974 | $ | 3.2 | |||||||||||||||||
-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. | ||||||||||||||||||||||||
-2 | Stock options of 8,343 and 42,518 for the three and nine months ended September 30, 2014, respectively, were not included in the diluted earnings per share calculation because the effects on earnings per share were anti-dilutive. Stock options of 38,825 and 38,825 for the three and nine months ended September 30, 2013, respectively, were not included in the diluted earnings per share calculation because the effects on earnings per share were anti-dilutive. |
Organization_and_Basis_of_Pres3
Organization and Basis of Presentation (Details) (USD $) | 1 Months Ended | 3 Months Ended | 9 Months Ended | 12 Months Ended | 1 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 12 Months Ended | 9 Months Ended | 12 Months Ended | 9 Months Ended | 12 Months Ended | 9 Months Ended | 12 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | |||||||||||||||||||||||||||||
Oct. 31, 2014 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Dec. 31, 2013 | Apr. 30, 2014 | Mar. 31, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Dec. 31, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | |||||||||
Building | Building | Vista Capri [Member] | Coldwater Canyon [Member] | Mt Sutro [Member] | Stock Options [Member] | Stock Options [Member] | Stock Options [Member] | Stock Options [Member] | Restricted Stock [Member] | Restricted Stock [Member] | Restricted Stock [Member] | Restricted Stock [Member] | 2014 LTIP Units [Member] | Long Term Incentive Plans - Z-1 Units and 2014 LTIP Units [Member] | Long Term Incentive Plans - Z-1 Units and 2014 LTIP Units [Member] | Long Term Incentive Plans - Z-1 Units and 2014 LTIP Units [Member] | Long Term Incentive Plans - Z-1 Units and 2014 LTIP Units [Member] | Investment-Grade Unsecured Bonds [Member] | Investment-Grade Unsecured Bonds [Member] | Investment Funds - US Treasuries [Member] | Investment Funds - US Treasuries [Member] | Common Stock [Member] | Common Stock [Member] | Mortgage Backed Securities [Member] | Mortgage Backed Securities [Member] | Essex Portfolio, L.P. [Member] | Essex Portfolio, L.P. [Member] | Essex Portfolio, L.P. [Member] | Essex Portfolio, L.P. [Member] | Essex Portfolio, L.P. [Member] | BRE Properties, Inc. [Member] | BRE Properties, Inc. [Member] | BRE Properties, Inc. [Member] | BRE Properties, Inc. [Member] | BRE Properties, Inc. [Member] | BRE Properties, Inc. [Member] | BRE Properties, Inc. [Member] | BRE Properties, Inc. [Member] | BRE Properties, Inc. [Member] | BRE Properties, Inc. [Member] | ||||||||||||||
Community | Community | Unit | Unit | Unit | Property | Property | Prepaid Expenses and Other Assets [Member] | Essex Portfolio, L.P. [Member] | Essex Portfolio, L.P. [Member] | Essex Portfolio, L.P. [Member] | Essex Portfolio, L.P. [Member] | |||||||||||||||||||||||||||||||||||||||||||
Partnership | Partnership | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Apartment | Apartment | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Project | Project | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Unit | Unit | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Mergers [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||
Common shares conversion ratio in connection with merger (in shares) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0.2971 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||
Cash consideration per share (in dollars per share) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $7.18 | ' | ' | $7.18 | ' | ' | ' | ' | ' | ' | ||||||||
Special dividend (in dollars per share) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $5.15 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||
Cash consideration before special dividend (in dollars per share) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $12.33 | ' | ' | $12.33 | ' | ' | ' | ' | ' | ' | ||||||||
Number of shares of common stock issued in merger (in shares) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 23,100,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||
Share price (in dollars per share) | ' | $174 | ' | $174 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $61 | ' | ' | $61 | ' | ' | ' | ' | ' | ' | ||||||||
Share price after deducting special dividend and cash consideration (in dollars per share) | ' | $164 | ' | $164 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $48.67 | ' | ' | $48.67 | ' | ' | ' | ' | ' | ' | ||||||||
Number of properties contributed | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 14 | ' | ' | 14 | ' | ' | ' | ' | ' | ' | ||||||||
Value of properties contributed | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $1,400,000,000 | ' | ' | ' | ' | ' | ' | ||||||||
Change in fair value and amortization of derivatives [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||
Balance at beginning | -52,298,000 | ' | ' | -59,724,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | -58,148,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||
Other comprehensive income (loss) before reclassification, derivative | ' | ' | ' | 1,428,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,487,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||
Amounts reclassified from accumulated other comprehensive loss | ' | ' | ' | 5,997,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 6,245,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||
Net other comprehensive income (loss) | ' | ' | ' | 7,425,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 7,732,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||
Balance at the end | ' | -52,298,000 | ' | -52,298,000 | ' | -59,724,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | -50,416,000 | ' | -50,416,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||
Unrealized gains/(losses) on available for sale securities [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||
Balance at beginning | 890,000 | ' | ' | -748,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | -792,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||
Other comprehensive income (loss) before reclassification, available for sale securities, total | ' | ' | ' | 2,479,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2,591,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||
Amounts reclassified from accumulated other comprehensive loss | ' | ' | ' | -841,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | -886,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||
Net other comprehensive income (loss) | ' | ' | ' | 1,638,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,705,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||
Balance at the end | ' | 890,000 | ' | 890,000 | ' | -748,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 913,000 | ' | 913,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||
Accumulated other comprehensive loss, net by component [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||
Balance at beginning | -51,408,000 | ' | ' | -60,472,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | -58,940,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||
Other comprehensive income (loss) before reclassification | ' | ' | ' | 3,907,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 4,078,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||
Amounts reclassified from accumulated other comprehensive loss | ' | ' | ' | 5,156,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 5,359,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||
Net other comprehensive income (loss) | ' | ' | ' | 9,063,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 9,437,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||
Balance at the end | ' | -51,408,000 | ' | -51,408,000 | ' | -60,472,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | -49,503,000 | ' | -49,503,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||
Business Acquisition, Purchase Price Allocation [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||
Acquired in-place lease value | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 19,000,000 | ' | ' | ' | ' | ||||||||
Cash assumed | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 140,000,000 | ' | ' | 140,000,000 | ' | ' | ' | ' | ' | ' | ||||||||
Rental properties and real estate under development | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 5,618,000,000 | ' | ' | 5,618,000,000 | ' | ' | ' | ' | ' | ' | ||||||||
Rental properties, excluding co-investments | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 108,000,000 | ' | ' | 108,000,000 | ' | ' | ' | ' | ' | ' | ||||||||
Assets held for sale | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 218,000,000 | ' | ' | 218,000,000 | ' | ' | ' | ' | ' | ' | ||||||||
Co-investments | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 80,000,000 | ' | ' | 80,000,000 | ' | ' | ' | ' | ' | ' | ||||||||
In-place lease value | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 16,000,000 | ' | ' | 16,000,000 | ' | ' | ' | ' | ' | ' | ||||||||
Acquired in-place lease value | ' | 80,358,000 | 0 | 80,358,000 | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 80,358,000 | 0 | 80,358,000 | 0 | ' | -1,747,000,000 | ' | ' | -1,747,000,000 | ' | ' | ' | ' | ' | ' | ||||||||
Secured and unsecured debt | ' | ' | ' | ' | ' | ' | -711,300,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | -94,000,000 | ' | ' | -94,000,000 | ' | ' | ' | ' | ' | ' | ||||||||
Other liabilities | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | -5,000,000 | ' | ' | -5,000,000 | ' | ' | ' | ' | ' | ' | ||||||||
Total consideration | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 4,334,000,000 | ' | ' | 4,334,000,000 | ' | ' | ' | ' | ' | ' | ||||||||
Cash consideration for BRE merger | 180,000,000 | ' | ' | 555,826,000 | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 555,826,000 | 0 | ' | ' | ' | ' | 556,000,000 | ' | ' | ' | ' | ' | ' | ||||||||
Equity consideration for BRE merger | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3,778,000,000 | ' | ' | 3,778,000,000 | ' | ' | ' | ' | ' | ' | ||||||||
Pro Forma results in connection with BRE merger | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||
Total revenue | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 270,479,000 | ' | 238,668,000 | 776,761,000 | 699,701,000 | ' | 270,479,000 | 238,668,000 | 776,761,000 | 699,701,000 | ||||||||
Net income available to common shareholders | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 59,341,000 | [1] | ' | 59,361,000 | [1] | 214,549,000 | [1],[2] | 66,806,000 | [1],[2] | ' | 59,341,000 | [1] | 59,361,000 | [1] | 214,549,000 | [1],[2] | 66,690,000 | [1],[2] |
Earnings per share, diluted (in dollars per share) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $0.91 | [1] | ' | $0.95 | [1] | $3.34 | [1] | $1.07 | [1] | ' | $0.91 | [1] | $0.95 | [1] | $3.34 | [1] | $1.07 | [1] |
Merger related costs | ' | 3,857,000 | 0 | 46,413,000 | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3,857,000 | 0 | 46,413,000 | 0 | ' | 3,900,000 | 4,300,000 | ' | 46,400,000 | ' | ' | ' | ' | ' | ' | ||||||||
Increase in the preliminary fair value of personal property | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 100,900,000 | ' | ' | 100,900,000 | ' | ' | ' | ' | ' | ' | ||||||||
Increase in the estimated useful life of real property | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '5 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||
Estimated useful life of real property | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '30 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||
Additional depreciation expense | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 4,200,000 | ' | ' | 8,500,000 | ' | ' | ' | ' | ' | ' | ||||||||
Revenues | ' | 270,479,000 | 153,948,000 | 690,605,000 | 451,829,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 270,479,000 | 153,948,000 | 690,605,000 | 451,829,000 | ' | 95,200,000 | ' | ' | 186,700,000 | ' | ' | ' | ' | ' | ' | ||||||||
Net loss | ' | 58,684,000 | 75,875,000 | 89,312,000 | 135,153,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 58,684,000 | 75,875,000 | 89,312,000 | 135,153,000 | ' | 6,000,000 | ' | ' | 14,200,000 | ' | ' | ' | ' | ' | ' | ||||||||
Dilutive effect of merger related costs (in shares) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 23,100,000 | 23,100,000 | ' | ' | ' | ' | ' | ||||||||
Real estate classified as held for sale | ' | 107,772,000 | ' | 107,772,000 | ' | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 107,772,000 | ' | 107,772,000 | ' | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||
Income from discontinued operations | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 105,000,000 | ' | ' | ' | ' | ' | ' | ||||||||
General partner ownership interest (in hundredths) | ' | ' | ' | 96.70% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||
Operating Partnership units outstanding (in shares) | ' | 2,155,783 | ' | 2,155,783 | ' | 2,149,802 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||
Redemption value of Operating Partnership units outstanding | ' | 385,300,000 | ' | 385,300,000 | ' | 308,500,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||
Number of apartment communities owned | ' | 239 | ' | 239 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||
Apartment units owned (in units) | ' | 56,622 | ' | 56,622 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||
Ownership interests, number of commercial buildings | ' | 5 | ' | 5 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||
Ownership interests, number of active development projects | ' | 14 | ' | 14 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||
Cyber-intrusion expenses | ' | ' | ' | 1,200,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||
Schedule of Available-for-sale Securities [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||
Cost/Amortized Cost | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 14,396,000 | 15,446,000 | 5,018,000 | 3,675,000 | 22,523,000 | 13,104,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||
Gross Unrealized Gain (Loss) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | -51,000 | 509,000 | 7,000 | 3,000 | 957,000 | -1,304,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||
Carrying Value | ' | 108,147,000 | ' | 108,147,000 | ' | 90,084,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 14,345,000 | 15,955,000 | 5,025,000 | 3,678,000 | 23,480,000 | 11,800,000 | ' | ' | 108,147,000 | ' | 108,147,000 | ' | 90,084,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||
Cost/Amortized Cost | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 65,297,000 | 58,651,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||
Gross Unrealized Gain (Loss) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0 | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||
Carrying Value | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 65,297,000 | 58,651,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||
Total Amortized Cost | ' | 107,234,000 | ' | 107,234,000 | ' | 90,876,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||
Total Gross Unrealized Gain (Loss) | ' | ' | ' | 913,000 | ' | -792,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||
Total Carrying Value | ' | 108,147,000 | ' | 108,147,000 | ' | 90,084,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||
Proceeds from sales of available for sale securities | ' | ' | 22,800,000 | 6,300,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||
Gain from sales of available-for-sale securities | ' | ' | 1,800,000 | 900,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||
Variable Interest Entities [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||
Number of DownREIT limited partnerships the company consolidates | ' | 19 | ' | 19 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||
Number of communities within the DownREIT partnership | ' | 12 | ' | 12 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||
Total DownREIT Partnership's Outstanding units (shares) | ' | 991,983 | ' | 991,983 | ' | 1,007,879 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||
Redemption value of the variable interest entities | ' | 177,300,000 | ' | 177,300,000 | ' | 144,600,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||
Assets related to variable interest entities, net intercompany eliminations | ' | 234,700,000 | ' | 234,700,000 | ' | 224,400,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||
Liabilities related to variable interest entities, net of intercompany eliminations | ' | 194,900,000 | ' | 194,900,000 | ' | 178,300,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||
Stock-based compensation expense | ' | ' | ' | 4,996,000 | 3,137,000 | ' | ' | ' | ' | ' | 700,000 | 500,000 | ' | ' | 2,900,000 | 1,600,000 | 4,200,000 | 2,900,000 | ' | 400,000 | 500,000 | 1,500,000 | 1,500,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 4,996,000 | 3,137,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||
Intrinsic value of options exercised | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,000,000 | 100,000 | 4,200,000 | 2,900,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||
Intrinsic value of the options outstanding and fully vested | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 15,700,000 | ' | 15,700,000 | ' | ' | ' | ' | ' | ' | 23,500,000 | ' | 23,500,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||
Unrecognized compensation cost | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 5,700,000 | ' | 5,700,000 | ' | 5,200,000 | ' | 5,200,000 | ' | ' | 6,700,000 | ' | 6,700,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||
Granted (in shares) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 50,500 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||
Unrecognized compensation cost, weighted average recognition period, minimum | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '1 year | ' | ' | ' | '1 year | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||
Unrecognized compensation cost, weighted average recognition period, maximum | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '5 years | ' | ' | ' | '7 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||
Percentage subject to performance based vesting (in hundredths) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 90.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||
Percentage subject to service-based vesting (in hundredths) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 10.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||
Percentage of performance based vesting of 2014 Ltip Units eligible to be earned on absolute total stockholders return (in hundredths) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0.33% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||
Percentage of performance based vesting of 2014 Ltip Units eligible to be earned on relative total stockholders return (in hundredths) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0.66% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||
Performance period | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '1 year | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||
Unamortized cost recognition period | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '6 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||
Fair Value of Financial Instruments [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||
Fixed rate debt carrying amount | ' | 4,300,000,000 | ' | 4,300,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||
Fixed rate debt fair value | ' | 4,500,000,000 | ' | 4,500,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||
Variable rate debt, carrying amount | ' | 539,200,000 | ' | 539,200,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||
Variable rate debt fair value | ' | 520,400,000 | ' | 520,400,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||
Mortgage backed securities carrying value | ' | 65,300,000 | ' | 65,300,000 | ' | 93,700,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||
Mortgage backed securities fair value | ' | 58,700,000 | ' | 58,700,000 | ' | 86,200,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||
Capitalization Policy [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||
Capitalized internal costs related to development and redevelopment projects | ' | 2,900,000 | 1,800,000 | 7,600,000 | 5,100,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||
Capitalized salaries | ' | 2,400,000 | 800,000 | 6,700,000 | 2,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||
Units in the community | ' | ' | ' | ' | ' | ' | ' | 106 | 39 | 99 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||
Sales price of communities sold | ' | ' | ' | ' | ' | ' | ' | 14,400,000 | 9,500,000 | 39,500,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||
Gain on sale of real estate | ' | ' | ' | ' | ' | ' | ' | $7,900,000 | $2,200,000 | $29,200,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||
[1] | (1) The supplemental pro forma net income available to common stockholders were adjusted to exclude $ 3.9 million and $ 46.4 million of merger related costs incurred by Essex during the three and nine months ended September 30, 2014. The 2014 supplemental pro forma net income available to common stockholders were adjusted to include these charges plus $ 4.3 million of merger related costs incurred by Essex during the three months ended December 31, 2013. The supplemental 2014 and 2013 proforma earnings per share, diluted, were adjusted by approximately 23.1 million shares due to the common stock issued in connection with the merger. | |||||||||||||||||||||||||||||||||||||||||||||||||||||
[2] | The 2014 supplemental pro forma net income available to common stockholders includes approximately $ 105 million from discontinued operations related to the sale of three BRE properties during the quarter ended March 31, 2014 that are non-recurring transactions. |
Significant_Transactions_Durin1
Significant Transactions During the Second Quarter of 2014 and Subsequent Events (Details) (USD $) | 0 Months Ended | 1 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 1 Months Ended | ||||
Nov. 05, 2014 | Oct. 31, 2014 | Sep. 30, 2014 | Sep. 30, 2013 | Nov. 04, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Jul. 31, 2014 | Aug. 31, 2014 | Aug. 31, 2014 | |
Common Stock [Member] | Common Stock [Member] | Paragon Apartments [Member] | Apex [Member] | Ellington [Member] | ||||||
Apartment | Unit | Unit | ||||||||
Acquisitions [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Cost of acquired entity | ' | $180,000,000 | $555,826,000 | $0 | ' | ' | ' | $111,000,000 | $150,000,000 | $58,800,000 |
Fixed rate of interest (in hundredths) | ' | 5.50% | ' | ' | ' | ' | ' | ' | ' | ' |
Term of loan | ' | 28-Feb-17 | ' | ' | ' | ' | ' | ' | ' | ' |
Interest Expense Attributable to the Entity | ' | 110,000,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Number of units | ' | ' | ' | ' | ' | ' | ' | 301 | 366 | 220 |
Ownership percentage (in hundredths) | ' | 50.00% | 50.00% | ' | 28.20% | ' | ' | ' | ' | ' |
Income from Promotion | 5,500,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Redemption Penalties | ' | 5,300,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Proceed from sale of assets | 23,500,000 | 101,000,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Common Stock [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Shares issued during the period (in shares) | ' | ' | ' | ' | ' | 801,909 | 2,527,000 | ' | ' | ' |
Average share price (in dollars per share) | ' | ' | ' | ' | ' | $190.06 | $177.83 | ' | ' | ' |
Proceed from stock issuance, net of commissions | ' | ' | $450,812,000 | $122,905,000 | ' | $151,400,000 | $450,800,000 | ' | ' | ' |
Coinvestments_Details
Co-investments (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||||||||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Nov. 04, 2014 | Oct. 31, 2014 | Dec. 31, 2013 | |||
Investments in joint ventures accounted for under the equity method of accounting [Abstract] | ' | ' | ' | ' | ' | ' | ' | |||
Total co-investment | $1,043,277 | ' | $1,043,277 | ' | ' | ' | $677,133 | |||
Balance sheets [Abstract] | ' | ' | ' | ' | ' | ' | ' | |||
Rental properties and real estate under development | 363,193 | ' | 363,193 | ' | ' | ' | 50,430 | |||
Other liabilities | 32,330 | ' | 32,330 | ' | ' | ' | 24,871 | |||
Statement of operations [Abstract] | ' | ' | ' | ' | ' | ' | ' | |||
Interest expense | -45,830 | -29,192 | -117,021 | -86,661 | ' | ' | ' | |||
General and administrative | -11,479 | -6,263 | -28,621 | -19,852 | ' | ' | ' | |||
Equity income in co-investments | 4,910 | 40,802 | 21,065 | 52,295 | ' | ' | ' | |||
Ownership interest (in hundredths) | 50.00% | ' | 50.00% | ' | 28.20% | 50.00% | ' | |||
Membership interest in Wesco I [Member] | ' | ' | ' | ' | ' | ' | ' | |||
Investments in joint ventures accounted for under the equity method of accounting [Abstract] | ' | ' | ' | ' | ' | ' | ' | |||
Total co-investment | 135,875 | ' | 135,875 | ' | ' | ' | 142,025 | |||
Membership interest in Wesco III [Member] | ' | ' | ' | ' | ' | ' | ' | |||
Investments in joint ventures accounted for under the equity method of accounting [Abstract] | ' | ' | ' | ' | ' | ' | ' | |||
Total co-investment | 53,411 | ' | 53,411 | ' | ' | ' | 39,073 | |||
Partnership interest in Fund II [Member] | ' | ' | ' | ' | ' | ' | ' | |||
Investments in joint ventures accounted for under the equity method of accounting [Abstract] | ' | ' | ' | ' | ' | ' | ' | |||
Total co-investment | 2,578 | ' | 2,578 | ' | ' | ' | 4,166 | |||
Membership interest in a limited liability company that owns Expo [Member] | ' | ' | ' | ' | ' | ' | ' | |||
Investments in joint ventures accounted for under the equity method of accounting [Abstract] | ' | ' | ' | ' | ' | ' | ' | |||
Total co-investment | 8,305 | ' | 8,305 | ' | ' | ' | 12,041 | |||
Membership interest in a limited liability company that owns The Huxley [Member] | ' | ' | ' | ' | ' | ' | ' | |||
Investments in joint ventures accounted for under the equity method of accounting [Abstract] | ' | ' | ' | ' | ' | ' | ' | |||
Total co-investment | 11,784 | ' | 11,784 | ' | ' | ' | 11,224 | |||
Membership interest in limited liability company that owns Connolly Station [Member] | ' | ' | ' | ' | ' | ' | ' | |||
Investments in joint ventures accounted for under the equity method of accounting [Abstract] | ' | ' | ' | ' | ' | ' | ' | |||
Total co-investment | 47,661 | ' | 47,661 | ' | ' | ' | 45,242 | |||
Membership interest in Wesco IV [Member] | ' | ' | ' | ' | ' | ' | ' | |||
Investments in joint ventures accounted for under the equity method of accounting [Abstract] | ' | ' | ' | ' | ' | ' | ' | |||
Total co-investment | 95,338 | ' | 95,338 | ' | ' | ' | 0 | |||
Balance sheets [Abstract] | ' | ' | ' | ' | ' | ' | ' | |||
Company's share of equity | 297,800 | ' | 297,800 | ' | ' | ' | ' | |||
Statement of operations [Abstract] | ' | ' | ' | ' | ' | ' | ' | |||
Ownership interest (in hundredths) | 50.00% | ' | 50.00% | ' | ' | ' | ' | |||
Percentage of pro rata income or loss related to performance incentive (in hundredths) | ' | ' | 50.00% | ' | ' | ' | ' | |||
Number of apartment communities | 5 | ' | 5 | ' | ' | ' | ' | |||
Number of units | 1,116 | ' | 1,116 | ' | ' | ' | ' | |||
Membership interest in Wesco IV [Member] | Minimum [Member] | ' | ' | ' | ' | ' | ' | ' | |||
Statement of operations [Abstract] | ' | ' | ' | ' | ' | ' | ' | |||
Debt usage percentage (in hundredths) | 50.00% | ' | 50.00% | ' | ' | ' | ' | |||
Membership interest in Wesco IV [Member] | Maximum [Member] | ' | ' | ' | ' | ' | ' | ' | |||
Statement of operations [Abstract] | ' | ' | ' | ' | ' | ' | ' | |||
Debt usage percentage (in hundredths) | 60.00% | ' | 60.00% | ' | ' | ' | ' | |||
Membership interest in BEXAEW [Member] | ' | ' | ' | ' | ' | ' | ' | |||
Investments in joint ventures accounted for under the equity method of accounting [Abstract] | ' | ' | ' | ' | ' | ' | ' | |||
Total co-investment | 89,504 | ' | 89,504 | ' | ' | ' | 0 | |||
Balance sheets [Abstract] | ' | ' | ' | ' | ' | ' | ' | |||
Company's share of equity | 516,700 | ' | 516,700 | ' | ' | ' | ' | |||
Statement of operations [Abstract] | ' | ' | ' | ' | ' | ' | ' | |||
Ownership interest (in hundredths) | 50.00% | ' | 50.00% | ' | ' | ' | ' | |||
Number of apartment communities | 9 | ' | 9 | ' | ' | ' | ' | |||
Number of units | 2,723 | ' | 2,723 | ' | ' | ' | ' | |||
Total operating co-investments [Member] | ' | ' | ' | ' | ' | ' | ' | |||
Investments in joint ventures accounted for under the equity method of accounting [Abstract] | ' | ' | ' | ' | ' | ' | ' | |||
Total co-investment | 444,456 | ' | 444,456 | ' | ' | ' | 253,771 | |||
Membership interests in limited liability companies with CPPIB that own and are developing Epic, Connolly Station, Mosso I & II, Park 20, and The Village [Member] | ' | ' | ' | ' | ' | ' | ' | |||
Investments in joint ventures accounted for under the equity method of accounting [Abstract] | ' | ' | ' | ' | ' | ' | ' | |||
Total co-investment | 364,779 | [1] | ' | 364,779 | [1] | ' | ' | ' | 256,296 | [1] |
Membership interests in limited liability companies that owns and is developing One South Market [Member] | ' | ' | ' | ' | ' | ' | ' | |||
Investments in joint ventures accounted for under the equity method of accounting [Abstract] | ' | ' | ' | ' | ' | ' | ' | |||
Total co-investment | 30,498 | ' | 30,498 | ' | ' | ' | 17,115 | |||
Membership interests in limited liability companies that own and are developing The Dylan [Member] | ' | ' | ' | ' | ' | ' | ' | |||
Investments in joint ventures accounted for under the equity method of accounting [Abstract] | ' | ' | ' | ' | ' | ' | ' | |||
Total co-investment | 8,396 | ' | 8,396 | ' | ' | ' | 7,321 | |||
Membership interests in limited liability companies that own and are developing Century Towers [Member] | ' | ' | ' | ' | ' | ' | ' | |||
Investments in joint ventures accounted for under the equity method of accounting [Abstract] | ' | ' | ' | ' | ' | ' | ' | |||
Total co-investment | 13,491 | ' | 13,491 | ' | ' | ' | 0 | |||
Total development co-investments [Member] | ' | ' | ' | ' | ' | ' | ' | |||
Investments in joint ventures accounted for under the equity method of accounting [Abstract] | ' | ' | ' | ' | ' | ' | ' | |||
Total co-investment | 417,164 | ' | 417,164 | ' | ' | ' | 280,732 | |||
Membership interest in Wesco II that owns a preferred equity interest in Park Merced with a preferred return of 10.1% [Member] | ' | ' | ' | ' | ' | ' | ' | |||
Investments in joint ventures accounted for under the equity method of accounting [Abstract] | ' | ' | ' | ' | ' | ' | ' | |||
Total co-investment | 95,934 | ' | 95,934 | ' | ' | ' | 94,711 | |||
Preferred return rate (in hundredths) | ' | ' | 10.10% | ' | ' | ' | ' | |||
Preferred interests in related party limited liability companies that owns Sage at Cupertino with a preferred return of 9.5% [Member] | ' | ' | ' | ' | ' | ' | ' | |||
Investments in joint ventures accounted for under the equity method of accounting [Abstract] | ' | ' | ' | ' | ' | ' | ' | |||
Total co-investment | 16,471 | ' | 16,471 | ' | ' | ' | 15,775 | |||
Preferred return rate (in hundredths) | ' | ' | 9.50% | ' | ' | ' | ' | |||
Preferred interest in a related party limited liability company that owns Madison Park at Anaheim with a preferred return of 9% [Member] | ' | ' | ' | ' | ' | ' | ' | |||
Investments in joint ventures accounted for under the equity method of accounting [Abstract] | ' | ' | ' | ' | ' | ' | ' | |||
Total co-investment | 13,824 | ' | 13,824 | ' | ' | ' | 13,824 | |||
Preferred return rate (in hundredths) | ' | ' | 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] | ' | ' | ' | ' | ' | ' | ' | |||
Investments in joint ventures accounted for under the equity method of accounting [Abstract] | ' | ' | ' | ' | ' | ' | ' | |||
Total co-investment | 10,148 | ' | 10,148 | ' | ' | ' | 9,455 | |||
Preferred return rate (in hundredths) | ' | ' | 12.00% | ' | ' | ' | ' | |||
Preferred interest in a limited liability company that owns an apartment development in San Jose with a preferred return of 12% [Member] | ' | ' | ' | ' | ' | ' | ' | |||
Investments in joint ventures accounted for under the equity method of accounting [Abstract] | ' | ' | ' | ' | ' | ' | ' | |||
Total co-investment | 9,710 | ' | 9,710 | ' | ' | ' | 8,865 | |||
Preferred return rate (in hundredths) | ' | ' | 12.00% | ' | ' | ' | ' | |||
Preferred interest in a limited liability company that owns 8th & Thomas with a preferred return of 10.0% [Member] | ' | ' | ' | ' | ' | ' | ' | |||
Investments in joint ventures accounted for under the equity method of accounting [Abstract] | ' | ' | ' | ' | ' | ' | ' | |||
Total co-investment | 12,816 | ' | 12,816 | ' | ' | ' | 0 | |||
Preferred return rate (in hundredths) | ' | ' | 10.00% | ' | ' | ' | ' | |||
Preferred interest in a limited liability company that owns Newbury Park with a preferred return of 12.0% [Member] | ' | ' | ' | ' | ' | ' | ' | |||
Investments in joint ventures accounted for under the equity method of accounting [Abstract] | ' | ' | ' | ' | ' | ' | ' | |||
Total co-investment | 12,754 | ' | 12,754 | ' | ' | ' | 0 | |||
Preferred return rate (in hundredths) | ' | ' | 12.00% | ' | ' | ' | ' | |||
Preferred interest in a limited liability company that owns Century Towers with a preferred return of 10.0% [Member] | ' | ' | ' | ' | ' | ' | ' | |||
Investments in joint ventures accounted for under the equity method of accounting [Abstract] | ' | ' | ' | ' | ' | ' | ' | |||
Total co-investment | 10,000 | ' | 10,000 | ' | ' | ' | 0 | |||
Preferred return rate (in hundredths) | ' | ' | 10.00% | ' | ' | ' | ' | |||
Total preferred interest investments [Member] | ' | ' | ' | ' | ' | ' | ' | |||
Investments in joint ventures accounted for under the equity method of accounting [Abstract] | ' | ' | ' | ' | ' | ' | ' | |||
Total co-investment | 181,657 | ' | 181,657 | ' | ' | ' | 142,630 | |||
Total co investment [Member] | ' | ' | ' | ' | ' | ' | ' | |||
Balance sheets [Abstract] | ' | ' | ' | ' | ' | ' | ' | |||
Rental properties and real estate under development | 3,084,852 | ' | 3,084,852 | ' | ' | ' | 1,953,328 | |||
Other assets | 110,752 | ' | 110,752 | ' | ' | ' | 61,578 | |||
Total assets | 3,195,604 | ' | 3,195,604 | ' | ' | ' | 2,014,906 | |||
Debt | 1,285,954 | ' | 1,285,954 | ' | ' | ' | 667,641 | |||
Other liabilities | 83,344 | ' | 83,344 | ' | ' | ' | 125,479 | |||
Equity | 1,826,306 | ' | 1,826,306 | ' | ' | ' | 1,221,786 | |||
Total liabilities and equity | 3,195,604 | ' | 3,195,604 | ' | ' | ' | 2,014,906 | |||
Company's share of equity | 1,043,277 | ' | 1,043,277 | ' | ' | ' | 677,133 | |||
Statement of operations [Abstract] | ' | ' | ' | ' | ' | ' | ' | |||
Property revenues | 51,725 | 24,796 | 128,469 | 78,913 | ' | ' | ' | |||
Property operating expenses | -18,759 | -10,170 | -48,875 | -29,872 | ' | ' | ' | |||
Net property operating income | 32,966 | 14,626 | 79,594 | 49,041 | ' | ' | ' | |||
Gain on sale of real estate | 0 | 137,845 | 11,369 | 146,663 | ' | ' | ' | |||
Interest expense | -9,838 | -6,052 | -25,283 | -18,924 | ' | ' | ' | |||
General and administrative | -1,840 | -1,419 | -5,039 | -4,472 | ' | ' | ' | |||
Equity income in co-investments | 4,808 | 0 | 14,351 | 0 | ' | ' | ' | |||
Depreciation and Amortization | -21,357 | -8,718 | -49,935 | -29,314 | ' | ' | ' | |||
Net income | 4,739 | 136,282 | 25,057 | 142,994 | ' | ' | ' | |||
Company's share of net income | $4,910 | $40,802 | $21,065 | $52,295 | ' | ' | ' | |||
[1] | Epic Phase I and II are currently in operations. The co-invesment will be moved to operating co-investment with the completion of Phase III. |
Notes_and_Other_Receivables_De
Notes and Other Receivables (Details) (USD $) | 9 Months Ended | |||
Sep. 30, 2014 | Dec. 31, 2013 | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' | ||
Notes receivable | $22,973,000 | $68,255,000 | ||
Short term Bridge Loan | 9,100,000 | ' | ||
Secured Due December 2014 [Member] | ' | ' | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' | ||
Notes receivable | 3,212,000 | [1] | 3,212,000 | [1] |
Stated interest rate (in hundredths) | 4.00% | ' | ||
Note and Other Receivables From Affiliates [Member] | ' | ' | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' | ||
Notes receivable | 9,086,000 | [2] | 60,968,000 | [2] |
Other Receivables [Member] | ' | ' | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' | ||
Notes receivable | $10,675,000 | [3] | $4,075,000 | [3] |
[1] | The Company funds an impound account for capital replacement. | |||
[2] | The Company had $9.1 million of short-term loans outstanding and due from various legacy and BRE joint ventures. See Note 5, Related Party Transaction, for additional details. | |||
[3] | The Company has BRE and legacy receivables for utilities, rents and other tenant receivables. |
Related_Party_Transactions_Det
Related Party Transactions (Details) (USD $) | 1 Months Ended | 3 Months Ended | 9 Months Ended | 1 Months Ended | 3 Months Ended | 0 Months Ended | 3 Months Ended | 9 Months Ended | ||||
Oct. 31, 2014 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Jan. 31, 2013 | Sep. 30, 2013 | Jul. 31, 2014 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | |
Marcus and Millichamp Company TMMC Affiliate [Member] | MMC [Member] | Paragon Apartments [Member] | Reduction to General and Administrative Expenses [Member] | Reduction to General and Administrative Expenses [Member] | Reduction to General and Administrative Expenses [Member] | Reduction to General and Administrative Expenses [Member] | ||||||
Unit | ||||||||||||
Related Party Transaction [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Management and other fees from affiliates including management, property management, development and redevelopment fees from co-investments, net of intercompany amounts eliminated by company | ' | $4,100,000 | $3,000,000 | $11,700,000 | $9,100,000 | ' | ' | ' | $1,700,000 | $1,200,000 | $4,900,000 | $3,300,000 |
Preferred return on preferred equity investment, thereafter, maximum (in hundredths) | ' | ' | ' | ' | ' | ' | 13.00% | ' | ' | ' | ' | ' |
Preferred return on preferred equity investment, thereafter, minimum (in hundredths) | ' | ' | ' | ' | ' | ' | 9.00% | ' | ' | ' | ' | ' |
Maximum term extended (in years) | ' | ' | ' | ' | ' | ' | '1 year | ' | ' | ' | ' | ' |
Income related to the restructured investment | ' | ' | ' | ' | ' | ' | 400,000 | ' | ' | ' | ' | ' |
Preferred equity interest investment in a related party entity | ' | ' | ' | ' | ' | 8,600,000 | ' | ' | ' | ' | ' | ' |
Short term bridge loan | ' | 9,100,000 | ' | 9,100,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Number of units | ' | ' | ' | ' | ' | ' | ' | 301 | ' | ' | ' | ' |
Cost of acquired entity | $180,000,000 | ' | ' | $555,826,000 | $0 | ' | ' | $111,000,000 | ' | ' | ' | ' |
Debt_and_Lines_of_Credit_Detai
Debt and Lines of Credit (Details) (USD $) | Sep. 30, 2014 | Apr. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | Aug. 31, 2014 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | ||
Bonds Private Placement - Fixed Rate [Member] | Bonds Private Placement - Fixed Rate [Member] | Term Loan - Variable Rate [Member] | Term Loan - Variable Rate [Member] | Unsecured Bonds - Fixed Rate [Member] | Unsecured Bonds - Fixed Rate [Member] | Mortgage Notes [Member] | Mortgage Notes [Member] | Mortgage Notes [Member] | Line of Credit [Member] | Line of Credit [Member] | ||||||
Apartment | ||||||||||||||||
Debt Instrument [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Aggregate principal amount of senior notes assumed | ' | $900,000,000 | ' | ' | ' | ' | ' | ' | ' | $21,500,000 | ' | ' | ' | ' | ||
Principal balance on debt | ' | 711,300,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Premium on debt assumed | 118,940 | 124,500,000 | 6,553 | ' | ' | ' | ' | ' | ' | 2,100,000 | ' | ' | ' | ' | ||
Unsecured debts and line of credit [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Unsecured debt | 2,745,487,000 | ' | 1,410,023,000 | 465,000,000 | 465,000,000 | 350,000,000 | 350,000,000 | 1,930,487,000 | 595,023,000 | ' | 2,258,010,000 | 1,404,080,000 | ' | ' | ||
Lines of credit | 222,628,000 | ' | 219,421,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Total unsecured debt and lines of credit | 5,226,125,000 | [1] | ' | 3,033,524,000 | [1] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of units | ' | ' | ' | ' | ' | ' | ' | ' | ' | 220 | ' | ' | ' | ' | ||
Weighted Average Maturity | ' | ' | ' | '4 years 6 months | ' | '2 years 4 months 24 days | ' | '7 years 3 months 18 days | ' | '10 years | ' | ' | ' | ' | ||
Weighted Average Maturity, Line of credit | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '5 years 9 months 18 days | ' | '4 years 6 months | ' | ||
Unamortized premium | 118,940 | 124,500,000 | 6,553 | ' | ' | ' | ' | ' | ' | 2,100,000 | ' | ' | ' | ' | ||
Weighted average interest rate (in hundredths) | ' | 3.30% | ' | ' | ' | 2.40% | 2.50% | 3.60% | 4.00% | ' | 4.60% | 4.70% | 1.70% | 2.20% | ||
Fixed interest rate | ' | ' | ' | ' | ' | ' | ' | ' | ' | 5.50% | ' | ' | ' | ' | ||
Aggregate schedule principal payments [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Remaining in 2014 | 7,388,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
2015 | 94,580,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
2016 | 391,481,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
2017 | 688,683,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
2018 | 320,080,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Thereafter | 3,382,345,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Total | $4,884,557,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
[1] | Includes total unamortized premium of $118,940 and $6,553 as of September 30, 2014 and December 31, 2013, respectively. |
Segment_Information_Details
Segment Information (Details) (USD $) | 3 Months Ended | 9 Months Ended | |||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Dec. 31, 2013 |
Segment | |||||
Segment Information [Abstract] | ' | ' | ' | ' | ' |
Number of reportable operating segments defined by geographical regions | ' | ' | 3 | ' | ' |
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' | ' | ' | ' |
Property revenues | $268,118 | $152,177 | $683,749 | $446,017 | ' |
Net operating income | 180,450 | 101,855 | 460,887 | 301,074 | ' |
Management and other fees | 2,361 | 1,771 | 6,856 | 5,812 | ' |
Depreciation | -102,184 | -48,227 | -254,211 | -142,687 | ' |
General and administrative | -11,479 | -6,263 | -28,621 | -19,852 | ' |
Merger expenses | -3,857 | 0 | -46,413 | 0 | ' |
Acquisition and disposition costs | -51 | -237 | -1,555 | -792 | ' |
Interest expense | -45,830 | -29,192 | -117,021 | -86,661 | ' |
Interest and other income | 2,992 | 2,387 | 8,685 | 9,326 | ' |
Equity income from co-investments | 4,910 | 40,802 | 21,065 | 52,295 | ' |
Gain (loss) on early retirement of debt | 0 | -178 | 0 | 846 | ' |
Gains on sale of real estate and land | 31,372 | 0 | 39,640 | 1,503 | ' |
Income from continuing operations | 58,684 | 62,718 | 89,312 | 120,864 | ' |
Net reportable operating segment - real estate assets | 9,803,759 | ' | 9,803,759 | ' | 4,188,871 |
Real estate under development | 363,193 | ' | 363,193 | ' | 50,430 |
Co-investments | 1,043,277 | ' | 1,043,277 | ' | 677,133 |
Real Estate Held-for-sale | 107,772 | ' | 107,772 | ' | 0 |
Cash and cash equivalents, including restricted cash | 88,000 | ' | 88,000 | ' | 53,766 |
Marketable securities | 108,147 | ' | 108,147 | ' | 90,084 |
Notes and other receivables | 22,973 | ' | 22,973 | ' | 68,255 |
Other non-segment assets | 129,441 | ' | 129,441 | ' | 58,300 |
Total assets | 11,666,562 | ' | 11,666,562 | ' | 5,186,839 |
Other Real Estate Assets [Member] | ' | ' | ' | ' | ' |
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' | ' | ' | ' |
Property revenues | 8,167 | 4,971 | 22,716 | 14,319 | ' |
Net operating income | 5,723 | 3,105 | 14,906 | 9,742 | ' |
Net reportable operating segment - real estate assets | 147,317 | ' | 147,317 | ' | 86,745 |
Reportable Geographical Components [Member] | Southern California [Member] | ' | ' | ' | ' | ' |
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' | ' | ' | ' |
Property revenues | 118,242 | 65,805 | 302,380 | 195,272 | ' |
Net operating income | 76,725 | 43,237 | 198,873 | 130,398 | ' |
Net reportable operating segment - real estate assets | 4,323,148 | ' | 4,323,148 | ' | 1,746,434 |
Reportable Geographical Components [Member] | Northern California [Member] | ' | ' | ' | ' | ' |
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' | ' | ' | ' |
Property revenues | 94,643 | 54,189 | 238,564 | 156,983 | ' |
Net operating income | 66,287 | 37,466 | 166,983 | 108,481 | ' |
Net reportable operating segment - real estate assets | 3,698,020 | ' | 3,698,020 | ' | 1,614,159 |
Reportable Geographical Components [Member] | Seattle Metro [Member] | ' | ' | ' | ' | ' |
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' | ' | ' | ' |
Property revenues | 47,066 | 27,212 | 120,089 | 79,443 | ' |
Net operating income | 31,715 | 18,047 | 80,125 | 52,453 | ' |
Net reportable operating segment - real estate assets | $1,635,274 | ' | $1,635,274 | ' | $741,533 |
Net_Income_Per_Common_Share_De
Net Income Per Common Share (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||||||
Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | |||||
Basic [Abstract] | ' | ' | ' | ' | ||||
Income from continuing operations available to common stockholders | $53,668,000 | $56,347,000 | $76,364,000 | $105,421,000 | ||||
Income from continuing operations available to common stockholders (in shares) | 62,892,601 | 37,320,562 | 54,250,104 | 37,206,895 | ||||
Income from continuing operations available to common stockholders (in dollars per share) | $0.85 | $1.51 | $1.41 | $2.84 | ||||
Income from discontinued operations available to common stockholders | 0 | 12,441,000 | 0 | 13,516,000 | ||||
Income from discontinued operations available to common stockholders (in shares) | 62,893,000 | 37,321,000 | 54,250,000 | 37,207,000 | ||||
Income from discontinued operations available to common stockholders (in dollars per share) | $0 | $0.33 | $0 | $0.36 | ||||
Income available to common stockholders | 53,668,000 | 68,788,000 | 76,364,000 | 118,937,000 | ||||
Income available to common stockholders (in dollars per share) | $0.85 | $1.84 | $1.41 | $3.20 | ||||
Effect of dilutive securities | 0 | [1] | 54,000 | [1] | 0 | [1] | 0 | [1] |
Effect of dilutive securities (in shares) | 177,000 | [1] | 116,000 | [1] | 193,000 | [1] | 89,000 | [1] |
Diluted [Abstract] | ' | ' | ' | ' | ||||
Income from continuing operations available to common stockholders | 53,668,000 | 56,347,000 | 76,364,000 | [1] | 105,421,000 | [1] | ||
Adjusted income from continuing operations available to common stockholders (in shares) | 63,070,000 | 37,437,000 | 54,443,000 | [1] | 37,296,000 | [1] | ||
Adjusted income from continuing operations available to common stockholders (in dollars per share) | $0.85 | $1.51 | $1.40 | [1] | $2.83 | [1] | ||
Adjusted income from discontinued operations available to common stockholders | 0 | 12,441,000 | 0 | 13,516,000 | ||||
Adjusted income from discontinued operations available to common stockholders (in shares) | 63,070,000 | 37,437,000 | 54,443,000 | 37,296,000 | ||||
Adjusted income from discontinued operations available to common stockholders (in dollars per share) | $0 | $0.33 | $0 | $0.36 | ||||
Total income (Diluted) | 53,668,000 | 68,842,000 | 76,364,000 | 118,937,000 | ||||
Total income per common share amount (in dollars per share) | $0.85 | $1.84 | $1.40 | $3.19 | ||||
Convertible Limited Partnership Units [Member] | ' | ' | ' | ' | ||||
Diluted [Abstract] | ' | ' | ' | ' | ||||
Anti-dilutive securities (in shares) | 2,572,111 | 2,146,929 | ' | ' | ||||
Net income (loss) allocated to Limited Partners | 1,800,000 | 4,000,000 | 3,400,000 | 7,000,000 | ||||
Stock Options [Member] | ' | ' | ' | ' | ||||
Diluted [Abstract] | ' | ' | ' | ' | ||||
Anti-dilutive securities (in shares) | 8,343 | 38,825 | 42,518 | 38,825 | ||||
Essex Portfolio, L.P. [Member] | ' | ' | ' | ' | ||||
Basic [Abstract] | ' | ' | ' | ' | ||||
Income from continuing operations available to common stockholders | 55,484,000 | 59,620,000 | 79,806,000 | 111,685,000 | ||||
Income from continuing operations available to common stockholders (in shares) | 65,057,157 | 39,467,492 | 56,484,589 | 39,333,100 | ||||
Income from continuing operations available to common stockholders (in dollars per share) | $0.85 | $1.51 | $1.41 | $2.84 | ||||
Income from discontinued operations available to common stockholders | 0 | 13,157,000 | 0 | 14,289,000 | ||||
Income from discontinued operations available to common stockholders (in shares) | 65,057,000 | 39,467,000 | 56,485,000 | 39,333,000 | ||||
Income from discontinued operations available to common stockholders (in dollars per share) | $0 | $0.33 | $0 | $0.36 | ||||
Income available to common stockholders | 55,484,000 | 72,777,000 | 79,806,000 | 125,974,000 | ||||
Income available to common stockholders (in dollars per share) | $0.85 | $1.84 | $1.41 | $3.20 | ||||
Effect of dilutive securities | 0 | [2] | 54,000 | [2] | 0 | [2] | 0 | [2] |
Effect of dilutive securities (in shares) | 177,000 | [2] | 116,000 | [2] | 193,000 | [2] | 89,000 | [2] |
Diluted [Abstract] | ' | ' | ' | ' | ||||
Income from continuing operations available to common stockholders | 55,484,000 | [2] | 59,674,000 | [2] | 79,806,000 | [2] | 111,685,000 | [2] |
Adjusted income from continuing operations available to common stockholders (in shares) | 65,234,000 | [2] | 39,583,000 | [2] | 56,678,000 | [2] | 39,422,000 | [2] |
Adjusted income from continuing operations available to common stockholders (in dollars per share) | $0.85 | [2] | $1.51 | [2] | $1.41 | [2] | $2.84 | [2] |
Adjusted income from discontinued operations available to common stockholders | 0 | 13,157,000 | 0 | 14,289,000 | ||||
Adjusted income from discontinued operations available to common stockholders (in shares) | 65,234,000 | 39,583,000 | 56,678,000 | 39,422,000 | ||||
Adjusted income from discontinued operations available to common stockholders (in dollars per share) | $0 | $0.33 | $0 | $0.36 | ||||
Total income (Diluted) | $55,484,000 | $72,831,000 | $79,806,000 | $125,974,000 | ||||
Total income per common share amount (in dollars per share) | $0.85 | $1.84 | $1.41 | $3.20 | ||||
Essex Portfolio, L.P. [Member] | Stock Options [Member] | ' | ' | ' | ' | ||||
Diluted [Abstract] | ' | ' | ' | ' | ||||
Anti-dilutive securities (in shares) | 8,343 | 38,825 | 42,518 | 38,825 | ||||
[1] | Weighted average convertible limited partnership units of 2,164,556 and 2,146,929 which include vested Series Z-1 incentive units, for the three months ended September 30, 2014, and 2013, 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 $1.8 million and $4.0 million for the three months ended September 30, 2014 and 2013, respectively, and $3.4 million and $7.0 million for the nine months ended September 30, 2014 and 2013, respectively have 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. | |||||||
[2] | The Operating Partnership has the ability to redeem DownREIT limited partnership units for cash and does not consider them to be potentially dilutive securities. |
Derivative_Instruments_and_Hed1
Derivative Instruments and Hedging Activities (Details) (Designated as Hedging Instrument [Member], USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Interest Rate Cap [Member] | ' | ' |
Derivative [Line Items] | ' | ' |
Notional amount of interest rate contracts | $156.90 | ' |
Number of derivative instruments held | 9 | ' |
Interest Rate Swap [Member] | ' | ' |
Derivative [Line Items] | ' | ' |
Notional amount of interest rate contracts | 300 | ' |
Total amount of unsecured loan | 350 | ' |
Interest rate (in hundredths) | 2.40% | ' |
Aggregate carrying value of the interest rate swap contracts | $1.40 | $2.70 |
Commitments_and_Contingencies_
Commitments and Contingencies (Details) (Payment Guarantee [Member], Construction Contracts [Member], USD $) | Sep. 30, 2014 |
In Millions, unless otherwise specified | |
Payment Guarantee [Member] | Construction Contracts [Member] | ' |
Guarantor Obligations [Line Items] | ' |
Maximum exposure of the guarantee | $114.40 |