Essex Property Trust (ESS) 8-K Essex Announces Second Quarter 2015 Results

Exhibit 99.2

 

Q2 2015 Supplemental  

Table of Contents

	Page
Consolidated Operating Results	S-1 – S-2
Consolidated Funds From Operations	S-3
Consolidated Balance Sheets	S-4
Debt Summary – June 30, 2015	S-5
Capitalization Data, Public Bond Covenants, Credit Ratings, and Selected Credit Ratios – June 30, 2015	S-6
Portfolio Summary by County – June 30, 2015	S-7
Operating Income by Quarter – June 30, 2015	S-8
Same-Property Revenue Results by County – Quarters ended June 30, 2015, June 30, 2014, and March 31, 2015	S-9
Same-Property Revenue Results by County – Six months ended June 30, 2015 and 2014	S-9.1
Same-Property Operating Expenses	S-10
Development Pipeline – June 30, 2015	S-11
Redevelopment Pipeline – June 30, 2015	S-12
Co-Investments – June 30, 2015	S-13
Assumptions for 2015 FFO Guidance Range	S-14
Summary of Apartment Community Acquisitions and Dispositions Activity	S-15
2015 MSA Level Forecasts: Supply, Jobs and Apartment Market Conditions	S-16

E S S E X  P R O P E R T Y  T R U S T, I N C.
Consolidated Operating Results		Three Months Ended				Six Months Ended
(Dollars in thousands, except share and per share amounts)		June 30,				June 30,
		2015		2014		2015		2014
Revenues:
	Rental and other property	$	294,101	$	256,952	$	574,330	$	416,302
	Management and other fees		2,061		2,836		4,705		4,495
			296,162		259,788		579,035		420,797
Expenses:
	Property operating		90,077		83,558		177,248		135,864
	Depreciation and amortization		113,731		101,292		220,638		151,604
	General and administrative		9,549		9,558		20,094		17,141
	Merger and integration expenses		1,410		26,497		3,798		42,556
	Acquisition costs		429		529		976		717
			215,196		221,434		422,754		347,882
Earnings from operations			80,966		38,354		156,281		72,915
Interest expense			(50,802)		(42,151)		(98,348)		(71,192)
Interest and other income			3,254		2,814		7,453		5,693
Equity income from co-investments			4,472		5,629		8,783		16,155
Gain on sale of real estate and land			-		-		7,112		7,481
Gain on remeasurement of co-investment			12,652		-		34,014		-
	Net income		50,542		4,646		115,295		31,052
Net income attributable to noncontrolling interest			(3,674)		(2,125)		(7,750)		(5,251)
Net income attributable to controlling interest			46,868		2,521		107,545		25,801
Dividends to preferred stockholders			(1,313)		(1,314)		(2,627)		(2,682)
	Net income available to common stockholders	$	45,555	$	1,207	$	104,918	$	23,119
Net income per share - basic		$	0.70	$	0.02	$	1.63	$	0.46
Shares used in income per share - basic			64,810,184		61,884,963		64,499,545		49,857,233
Net income per share - diluted		$	0.70	$	0.02	$	1.62	$	0.46
Shares used in income per share - diluted			64,972,852		62,059,762		64,677,521		50,087,161

See Company's 10-K for additional disclosures
S-1

E S S E X  P R O P E R T Y  T R U S T, I N C.
Consolidated Operating Results			Three Months Ended				Six Months Ended
Selected Line Item Detail			June 30,				June 30,
(Dollars in thousands)			2015		2014		2015		2014
Rental and other property
	Rental		$	274,248	$	238,258	$	536,612	$	386,585
	Other property			19,853		18,694		37,718		29,717
		Rental and other property	$	294,101	$	256,952	$	574,330	$	416,302
Property operating expenses
	Real estate taxes		$	32,676	$	30,345	$	64,229	$	45,684
	Administrative and insurance			18,556		17,692		36,796		31,308
	Maintenance and repairs			17,696		15,953		34,163		26,389
	Utilities			14,920		14,538		29,749		24,007
	Property management			6,229		5,030		12,311		8,476
		Property operating expenses	$	90,077	$	83,558	$	177,248	$	135,864
Interest and other income
	Marketable securities and other interest income		$	3,254	$	2,314	$	6,453	$	4,725
	Notes receivable			-		41		-		82
	Gain from sale of marketable securities and note prepayment			-		459		-		886
	Insurance reimbursement for cyber expenses			-		-		1,000		-
		Interest and other income	$	3,254	$	2,814	$	7,453	$	5,693
Equity income from co-investments
	Equity income from co-investments		$	1,980	$	1,061	$	3,207	$	1,043
	Income from preferred equity investments			2,492		3,512		5,107		6,997
	Gain on sale of co-investments			-		-		-		3,211
	Co-investment promote income			-		1,056		-		4,904
	Income from early redemption of preferred equity investments			-		-		469		-
		Equity income from co-investments	$	4,472	$	5,629	$	8,783	$	16,155
Noncontrolling interest
	Limited partners of Essex Portfolio, L.P.		$	1,581	$	209	$	3,644	$	1,626
	DownREIT limited partners' distributions			1,297		1,211		2,597		2,355
	Third-party ownership interest			796		705		1,509		1,270
		Noncontrolling interest	$	3,674	$	2,125	$	7,750	$	5,251

See Company's 10-K for additional disclosures
S-2

E S S E X  P R O P E R T Y  T R U S T, I N C.
Consolidated Funds From Operations			Three Months Ended					Six Months Ended
(Dollars in thousands, except share and per share amounts)			June 30,					June 30,
			2015		2014		% Change	2015		2014		% Change
Funds from operations attributable to common stockholders and unitholders (FFO)
Net income available to common stockholders			$	45,555	$	1,207		$	104,918	$	23,119
Adjustments:
	Depreciation and amortization			113,731		101,292			220,638		151,604
	Gains not included in FFO			(12,652)		-			(41,126)		(10,292)
	Depreciation add back from unconsolidated co-investments			12,105		8,314			24,022		13,074
	Noncontrolling interest related to Operating Partnership units			1,581		209			3,644		1,626
	Depreciation attributable to third party ownership and other (1)			(251)		(332)			(500)		(661)
		Funds from operations attributable to common stockholders and unitholders	$	160,069	$	110,690		$	311,596	$	178,470
		FFO per share-diluted	$	2.38	$	1.72	38.4%	$	4.66	$	3.41	36.7%
Components of the change in FFO
Non-core items:
Merger and integration expenses			$	1,410		26,497		$	3,798		42,556
Acquisition costs				429		529			976		717
Gain on sale of marketable securities and note prepayment				-		(459)			-		(886)
Gain on sale of land				-		-			-		(400)
Co-investment promote income				-		(1,056)			-		(4,904)
Income from early redemption of preferred equity investments				-		-			(469)		-
Other non-core adjustments				(582)		(2,307)			(1,957)		(539)
		Core funds from operations attributable to common stockholders and unitholders		161,326		133,894			313,944		215,014
		Core FFO per share-diluted	$	2.40	$	2.08	15.4%	$	4.69	$	4.11	14.1%
Changes in core items:
Same-property NOI			$	17,165				$	22,969
Non-same property NOI(2)				14,522					93,161
Management and other fees, net				(275)					335
Equity income from co-investments				3,858					11,193
Interest and other income				899					1,646
Interest expense				(8,651)					(27,156)
General and administrative				9					(2,953)
Other items, net				(95)					(265)
			$	27,432				$	98,930
Weighted average number of shares outstanding diluted (3)				67,215,382		64,233,304			66,922,047		52,357,189
(1)		The Company consolidates Hidden Valley and Hillsdale Garden Apartments. Noncontrolling interest's share of net operating income in these investments for the three and six months ended June 30, 2015 was $1.0 million and $1.9 million, respectively.
(2)		Six month results include BRE as non-same property.
(3)		Assumes conversion of all outstanding operating partnership interests in the Operating Partnership and excludes 903,285 DownREIT units for which the Operating Partnership has the ability and intention to redeem the DownREIT limited partnership units for cash and does not consider them to be common stock equivalents.

See Company's 10-K for additional disclosures
S-3

E S S E X  P R O P E R T Y  T R U S T, I N C.
Consolidated Balance Sheets
(Dollars in thousands)
				June 30, 2015		December 31, 2014
Real Estate:
	Land and land improvements		$	2,569,733	$	2,424,930
	Buildings and improvements			9,700,056		8,819,751
				12,269,789		11,244,681
	Less:  accumulated depreciation			(1,758,887)		(1,564,806)
				10,510,902		9,679,875
Real estate under development				220,911		429,096
Co-investments				1,044,208		1,042,423
Real estate held for sale, net				-		56,300
				11,776,021		11,207,694
Cash and cash equivalents				65,152		95,749
Marketable securities and other investments				121,244		117,240
Notes and other receivables				25,676		24,923
Acquired in-place lease value				25,907		47,748
Prepaid expenses and other assets				31,004		33,378
		Total assets	$	12,045,004	$	11,526,732
Mortgage notes payable, net			$	2,247,463	$	2,234,317
Unsecured debt, net				3,093,106		2,603,548
Lines of credit, net				28,762		242,824
Other liabilities				307,203		286,719
		Total liabilities		5,676,534		5,367,408
Redeemable noncontrolling interest				23,830		23,256
Equity:
	Common stock			6		6
	Cumulative redeemable preferred stock, liquidation value			73,750		73,750
	Additional paid-in capital			6,941,629		6,651,165
	Distributions in excess of accumulated earnings			(731,181)		(650,797)
	Accumulated other comprehensive loss, net			(50,152)		(51,452)
		Total stockholders' equity		6,234,052		6,022,672
	Noncontrolling interest			110,588		113,396
		Total equity		6,344,640		6,136,068
		Total liabilities and equity	$	12,045,004	$	11,526,732

See Company's 10-K for additional disclosures
S-4

E S S E X  P R O P E R T Y  T R U S T, I N C.
Debt Summary - June 30, 2015
(Dollars in thousands)
							Scheduled principal payments, unamortized premiums (discounts) and (debt issuance costs) are as follows - excludes lines of credit:
													Unamortized premiums (discounts) and (debt issuance costs)
					Weighted Average											Weighted Average Interest Rate	Percentage of Total Debt
			Balance		Interest	Maturity
			Outstanding		Rate	In Years		Secured		Unsecured					Total
Mortgage Notes Payable, net
	Fixed rate - secured		$	1,892,759	4.9%	4.0	2015	$	14,389	$	-		12,325	$	26,714	3.8%	0.5%
	Variable rate - secured (1)			292,069	1.5%	23.0	2016		41,519		350,000		24,537		416,056	3.3%	7.8%
	Unamortized premiums and debt issuance costs			62,635	-	-	2017		199,178		365,000		15,696		579,874	3.2%	10.9%
		Total mortgage notes payable		2,247,463	4.4%	6.5	2018		320,621		-		13,237		333,858	5.4%	6.2%
							2019		566,393		75,000		8,808		650,201	4.2%	12.2%
Unsecured Debt, net							2020		693,447		-		3,584		697,031	5.0%	13.0%
	Bonds private - fixed rate			465,000	4.5%	3.7	2021		51,152		500,000		(3,348)		547,804	4.3%	10.3%
	Bonds public - fixed rate			2,400,000	3.5%	7.3	2022		1,186		300,000		(3,826)		297,360	3.7%	5.6%
	Term loan (2)			225,000	2.4%	1.4	2023		1,282		600,000		(1,694)		599,588	3.6%	11.2%
	Unamortized premiums and debt issuance costs			3,106	-	-	2024		19,158		400,000		(1,003)		418,155	4.0%	7.8%
				3,093,106	3.5%	6.3	2025		14,611		500,000		(318)		514,293	3.5%	9.6%
Unsecured Lines of Credit, net							Thereafter		261,892		-		(2,257)		259,635	1.5%	4.9%
	Line of credit (3)			25,000	1.9%
	Line of credit (4)			7,620	1.9%		Total	$	2,184,828	$	3,090,000	$	65,741	$	5,340,569	3.9%	100.0%
	Unamortized debt issuance costs			(3,858)	-
		Total lines of credit		28,762	1.9%
		Total debt	$	5,369,331	3.9%
Capitalized interest for the three and six months ended June 30, 2015 was approximately $4.0 million and $8.3 million, respectively.
(1)	Variable rate debt of $282.1 million is tax exempt to the note holders and $262.5 million is subject to interest rate protection agreements and total return swap contracts.
(2)	The unsecured term loan has a variable interest rate of LIBOR plus 1.05%.  The Company has entered into interest rate swap contracts with a notional amount totaling $225 million, which effectively converts the interest rate on of the term loan to a fixed rate of 2.4%.
(3)	The unsecured line of credit facility aggregates to $1 billion and the line matures in December 2018 with one 18-month extension, exercisable at the Company's option.  The underlying interest rate on this line is based on a tiered rate structure tied to the Company's corporate ratings and is currently at LIBOR plus 0.95%.
(4)	The unsecured line of credit facility is $25 million and matures in January 2016.  The underlying interest rate on this line is based on a tiered rate structure tied to the Company's corporate ratings and is currently at LIBOR plus 0.95%.

See Company's 10-K for additional disclosures
S-5

E S S E X  P R O P E R T Y  T R U S T, I N C.
Capitalization Data, Public Bond Covenants, Credit Ratings and Selected Credit Ratios - June 30, 2015
(Dollars and shares in thousands, except per share amounts)
Capitalization Data						Public Bond Covenants		Actual	Requirement
Total debt				$	5,369,331
							Debt to Total Assets:	39%	< 65%
Common stock and potentially dilutive securities
	Common stock outstanding				65,043
	Limited partnership units (1)				2,242
	Options-treasury method				173		Secured Debt to Total Assets:	16%	< 40%
Total shares of common stock and potentially dilutive securities					67,458
Common stock price per share as of June 30, 2015				$	212.50
							Interest Coverage:	335%	> 150%
Market value of common stock and potentially dilutive securities				$	14,334,825
Preferred stock				$	73,750		Unsecured Debt Ratio (1) :	284%	> 150%
Total equity capitalization				$	14,408,575
						Selected Credit Ratios		Actual
Total market capitalization				$	19,777,906
Ratio of debt to total market capitalization					27.1%		Net Indebtedness Divided by Adjusted EBITDA (2) (3):	6.3
							Unencumbered NOI to Total NOI:	66%
(1) Assumes conversion of all outstanding operating partnership interests in the Operating Partnership into shares of the Company's common stock.						(1) Unsecured Debt Ratio is unsecured assets (excluding investments in co-investments) divided by unsecured indebtedness.
						(2) Net Indebtedness is total debt less unamortized premiums, debt issuance costs, unrestricted cash and cash equivalents, and marketable securities.
Credit Ratings						(3) Adjusted EBITDA annualizes the proforma NOI for current quarter acquisitions and excludes non-routine items in earnings.
Rating Agency		Rating	Outlook
Fitch		BBB+	Stable
Moody's		Baa2	Positive
Standard & Poor's		BBB	Positive

See Company's 10-K for additional disclosures
S-6

E S S E X  P R O P E R T Y  T R U S T, I N C.
Portfolio Summary as of June 30, 2015
		Units				Average Monthly Rental Rate (1)			Percent of NOI (2)
Region - County		Consolidated (3)	Unconsolidated Co-investments	Units in Development (4)	Total	Consolidated	Unconsolidated Co-investments (5)	Total (6)	Consolidated	Unconsolidated Co-investments (5)	Total (6)
Southern California
	Los Angeles County	9,245	1,430	-	10,675	$ 2,101	$ 1,818	$    2,080	18.8%	14.0%	18.0%
	Orange County	5,786	1,144	-	6,930	1,894	1,599	1,868	11.4%	8.6%	11.0%
	San Diego County	4,962	616	-	5,578	1,648	1,509	1,640	8.3%	4.8%	7.7%
	Ventura County	2,898	373	-	3,271	1,552	1,941	1,575	5.0%	3.8%	4.8%
	Other Southern CA	623	581	-	1,204	1,440	1,594	1,489	0.9%	5.3%	1.6%
Total Southern California		23,514	4,144	-	27,658	1,869	1,691	1,855	44.4%	36.5%	43.1%
Northern California
	Santa Clara County	5,874	2,277	576	8,727	2,452	2,366	2,437	16.2%	23.7%	17.4%
	Alameda County	3,138	1,291	-	4,429	2,219	1,998	2,180	7.4%	14.1%	8.5%
	San Mateo County	2,126	197	599	2,922	2,726	2,689	2,724	6.3%	1.5%	5.5%
	Contra Costa County	2,270	190	555	3,015	2,039	2,550	2,061	5.1%	0.9%	4.4%
	San Francisco MSA	1,169	463	717	2,349	2,758	3,496	2,890	3.2%	7.5%	3.9%
	Other Northern CA	230	-	-	230	1,855	-	1,855	0.4%	-	0.4%
Total Northern California		14,807	4,418	2,447	21,672	2,393	2,409	2,395	38.6%	47.8%	40.1%
Seattle Metro		10,239	1,958	-	12,197	1,538	1,419	1,528	17.0%	15.7%	16.8%
Total		48,560	10,520	2,447	61,527	$ 1,959	$ 1,951	$    1,958	100.0%	100.0%	100.0%
(1)    Average rental rate is defined as the total potential rental revenue (actual rent for occupied units plus market rent for vacant units) divided by the number of units.
(2)    Actual NOI for the quarter ended June 30, 2015.
(3)    Includes all apartment communities with rents, excluding commercial space.
(4)    Includes development communities with no rental income.
(5)    Co-investment amounts weighted for Company's pro rata share.
(6)    At Company's pro rata share.

See Company's 10-K for additional disclosures
S-7

E S S E X  P R O P E R T Y  T R U S T, I N C.
Operating Income by Quarter(1)
(Dollars in thousands)
		Units	Q2 '15		Q1 '15	Q4 '14	Q3 '14	Q2 '14
Rental and other property revenues:
Same-property (2)		43,134	$  252,169		$  246,536	$  243,633	$  240,031	$  233,947
Acquisitions (3)		3,415	20,255		14,269	12,579	10,110	5,431
Development (4)		1,331	11,273		9,753	8,146	6,101	3,510
Redevelopment		680	4,078		3,979	4,134	4,105	4,058
Non-Residential/Other (5)		-	6,326		5,692	8,286	8,165	10,006
Total rental and other property revenues		48,560	294,101		280,229	276,778	268,512	256,952
Property operating expenses:
Same-property (2)			77,181		76,042	76,984	78,059	76,124
Acquisitions (3)			7,256		4,867	4,166	3,352	2,108
Development (4)			3,868		3,355	3,167	2,493	1,752
Redevelopment			1,534		1,539	1,515	1,567	1,472
Non-Residential/Other (5)			238	(7)	1,368	2,789	2,591	2,102
Total property operating expenses			90,077		87,171	88,621	88,062	83,558
Net operating income (NOI):
Same-property (2)			174,988		170,494	166,649	161,972	157,823
Acquisitions (3)			12,999		9,402	8,413	6,758	3,323
Development (4)			7,405		6,398	4,979	3,608	1,758
Redevelopment			2,544		2,440	2,619	2,538	2,586
Non-Residential/Other (5)			6,088		4,324	5,497	5,574	7,904
Total NOI			$  204,024		$  193,058	$  188,157	$  180,450	$  173,394
Same-property operating margin			69%		69%	68%	67%	67%
Same-property financial occupancy(6)			96.1%		96.1%	96.2%	95.9%	95.8%
(1)	Includes consolidated communities only.
(2)	Same-property includes BRE properties acquired April 1, 2014.
(3)	Acquisitions include properties acquired which did not have comparable stabilized results as of April 1, 2014.
(4)	Development includes properties developed which did not have comparable stabilized results as of April 1, 2014.
(5)	Other real estate assets consists mainly of retail space, commercial properties, boat slips, and disposition properties.
(6)	Financial occupancy is defined as the percentage resulting from dividing actual rental revenue by total potential rental revenue (actual rent for occupied units plus market rent for vacant units).
(7)	In Q2 ‘15 there were $1.3 million in reductions to operating expenses related to changes to prior period estimates.

See Company's 10-K for additional disclosures
S-8

E S S E X  P R O P E R T Y  T R U S T, I N C.
Same-Property Revenue Results by County - Second Quarter 2015 vs. Second Quarter 2014 and First Quarter 2015(1)
(Dollars in thousands, except average monthly rental rates)
				Average Monthly Rental Rate			Financial Occupancy			Gross Revenues			Sequential Gross Revenues
Region - County		Units	Q2 '15 % of Actual NOI	Q2 '15	Q2 '14	% Change	Q2 '15	Q2 '14	% Change	Q2 '15	Q2 '14	% Change	Q1 '15	% Change
Southern California
	Los Angeles County	6,844	16.6%	$   2,064	$   1,959	5.4%	95.9%	95.8%	0.1%	$    42,521	$   40,109	6.0%	$ 41,799	1.7%
	Orange County	5,786	12.9%	1,894	1,797	5.4%	96.1%	95.5%	0.6%	33,273	31,252	6.5%	32,951	1.0%
	San Diego County	4,583	8.7%	1,632	1,556	4.8%	95.4%	95.9%	-0.5%	22,707	21,745	4.4%	22,361	1.5%
	Ventura County	2,898	5.6%	1,552	1,470	5.6%	96.3%	96.5%	-0.2%	13,859	13,194	5.0%	13,694	1.2%
	Other Southern CA	623	1.0%	1,440	1,342	7.3%	97.4%	97.7%	-0.3%	2,757	2,565	7.5%	2,755	0.1%
Total Southern California		20,734	44.8%	1,831	1,738	5.3%	95.9%	95.9%	0.0%	115,117	108,865	5.7%	113,560	1.4%
Northern California
	Santa Clara County	5,228	16.2%	2,395	2,175	10.1%	96.3%	95.7%	0.6%	37,980	34,304	10.7%	36,889	3.0%
	Alameda County	2,613	7.0%	2,172	1,929	12.6%	96.4%	96.2%	0.2%	17,392	15,458	12.5%	16,748	3.8%
	San Mateo County	1,862	6.2%	2,654	2,438	8.8%	96.0%	95.3%	0.7%	15,107	13,731	10.0%	14,624	3.3%
	Contra Costa County	2,270	5.7%	2,039	1,859	9.7%	96.5%	95.7%	0.8%	14,163	12,821	10.5%	13,695	3.4%
	San Francisco MSA	816	2.1%	2,295	2,145	7.0%	95.5%	95.4%	0.1%	5,607	5,242	7.0%	5,403	3.8%
	Other Northern CA	230	0.5%	1,855	1,719	7.9%	98.0%	97.3%	0.7%	1,310	1,208	8.4%	1,272	3.0%
Total Northern California		13,019	37.7%	2,309	2,099	10.0%	96.3%	95.7%	0.6%	91,559	82,764	10.6%	88,631	3.3%
Seattle Metro		9,381	17.5%	1,532	1,431	7.0%	96.1%	95.8%	0.3%	45,493	42,318	7.5%	44,345	2.6%
Total Same-Property		43,134	100.0%	$   1,910	$   1,780	7.3%	96.1%	95.8%	0.3%	$  252,169	$ 233,947	7.8%	$    246,536	2.3%
(1)    Same-property includes BRE properties acquired April 1, 2014.

See Company's 10-K for additional disclosures
S-9

E S S E X  P R O P E R T Y  T R U S T, I N C.
Same-Property Revenue Results by County - Six months ended June 30, 2015 vs. Six months ended June 30, 2014(1)
(Dollars in thousands, except average monthly rental rates)
				Average Monthly Rental Rate			Financial Occupancy			Gross Revenues
Region - County		Units	2015 % of Actual NOI	YTD 2015	YTD 2014	% Change	YTD 2015	YTD 2014	% Change	YTD 2015	YTD 2014	% Change
Southern California
	Los Angeles County	4,400	16.4%	$    1,997	$    1,885	6.0%	96.1%	96.5%	-0.4%	$  53,271	$  50,444	5.6%
	Orange County	2,887	10.9%	2,027	1,908	6.2%	96.4%	95.8%	0.6%	35,600	33,125	7.5%
	Ventura County	2,898	8.5%	1,540	1,457	5.7%	96.3%	96.7%	-0.4%	27,554	26,221	5.1%
	San Diego County	2,067	5.2%	1,367	1,286	6.3%	96.3%	96.3%	0.0%	17,588	16,562	6.2%
	Other Southern CA	623	1.6%	1,429	1,336	6.9%	98.0%	98.1%	-0.1%	5,512	5,140	7.2%
Total Southern California		12,875	42.6%	1,772	1,671	6.1%	96.4%	96.4%	0.0%	139,525	131,492	6.1%
Northern California
	Santa Clara County	4,279	20.1%	2,336	2,110	10.7%	96.4%	96.1%	0.3%	60,617	54,678	10.9%
	Contra Costa County	1,720	6.5%	1,971	1,794	9.9%	96.5%	96.1%	0.4%	20,715	18,791	10.2%
	Alameda County	1,542	5.9%	2,016	1,786	12.9%	96.6%	97.2%	-0.6%	19,164	17,260	11.0%
	San Mateo County	768	3.6%	2,402	2,172	10.6%	97.0%	96.5%	0.5%	11,433	10,314	10.8%
	San Francisco MSA	645	2.4%	2,225	2,069	7.5%	94.1%	94.6%	-0.5%	8,408	7,816	7.6%
	Other Northern CA	230	0.8%	1,833	1,704	7.5%	97.4%	96.8%	0.6%	2,582	2,394	7.9%
Total Northern California		9,184	39.3%	2,199	1,989	10.6%	96.3%	96.2%	0.1%	122,919	111,253	10.5%
Seattle Metro		6,558	18.1%	1,459	1,356	7.6%	96.3%	96.3%	0.0%	60,710	56,439	7.6%
Total Same-Property		28,617	100.0%	$    1,837	$    1,701	8.0%	96.3%	96.3%	0.0%	$  323,154	$  299,184	8.0%
(1)    Same-property excludes BRE properties acquired April 1, 2014.

See Company's 10-K for additional disclosures
S-9.1

E S S E X  P R O P E R T Y  T R U S T, I N C.
Same-Property Operating Expenses - Quarter and Year to Date as of June 30, 2015 and 2014
(Dollars in thousands)
	Based on 43,134 units (1)				Based on 28,617 units (2)
	Q2 '15	Q2 '14	% Change	% of Op. Ex.	YTD 2015	YTD 2014	% Change	% of Op. Ex.
Same-property operating expenses:
Real estate taxes	$  26,492	$  27,129	-2.3%	34.3%	$ 28,174	$ 27,692	1.7%	29.9%
Maintenance and repairs	15,403	14,529	6.0%	20.0%	19,751	19,678	0.4%	20.9%
Administrative	14,446	14,362	0.6%	18.7%	19,100	18,634	2.5%	20.2%
Utilities	12,852	13,051	-1.5%	16.6%	17,380	17,485	-0.6%	18.4%
Management fees (3)	5,394	4,555	18.4%	7.0%	6,568	6,403	2.6%	7.0%
Insurance	2,594	2,498	3.8%	3.4%	3,410	3,490	-2.3%	3.6%
Total same-property operating expenses	$  77,181	$  76,124	1.4%	100.0%	$ 94,383	$ 93,382	1.1%	100.0%
(1)    Same-property includes BRE properties acquired starting April 1, 2014.
(2)    Same-property excludes BRE properties.
(3)    During 2015, the Company changed its allocation to property management fees.

See Company's 10-K for additional disclosures
S-10

E S S E X  P R O P E R T Y  T R U S T, I N C.
Development Pipeline - June 30, 2015
(Dollars in millions, except per unit amounts in thousands)
	Project Name	Location	Ownership %	Estimated Units	Estimated Commercial sq. feet	Incurred to   Date	Remaining Costs	Estimated Total Cost	Essex Est. Total Cost (1)	Apartment Cost per Unit (2)	Average % Occupied	% Leased	Construction Start	Initial Occupancy	Stabilized Operations
Development Projects - Consolidated (3)
	MB 360 Phase II (4)	San Francisco, CA	100%	172	11,500	$  107	$  28	$  135	$  135	$  744	0.0%	0.0%	Q3 2014	Q4 2015	Q2 2016
	Station Park Green	San Mateo, CA	100%	599	35,000	76	278	354	354	567	0.0%	0.0%	Q3 2015	Q3 2017	Q4 2018
Total Development Projects - Consolidated				771	46,500	183	306	489	489	634
Land Held for Future Development - Consolidated
	Other Projects	Various	100%			38	-	38	38
Total Development Pipeline - Consolidated				771	46,500	221	306	527	527
Development Projects/Land Held for Future Development - Joint Venture (3)
	Epic - Phase III	San Jose, CA	55%	200	-	79	13	92	51	460	0.0%	0.0%	Q3 2013	Q3 2015	Q1 2016
	One South Market	San Jose, CA	55%	312	6,000	136	5	141	78	445	11.0%	36.0%	Q2 2013	Q2 2015	Q1 2016
	Agora (5)	Walnut Creek, CA	51%	49	35,000	72	23	95	48	1,140	0.0%	0.0%	Q3 2013	Q1 2016	Q2 2016
	Owens	Pleasanton, CA	55%	255	5,729	35	54	89	49	341	0.0%	0.0%	Q3 2014	Q2 2016	Q2 2017
	Hacienda	Pleasanton, CA	55%	251	-	28	58	86	47	343	0.0%	0.0%	Q1 2015	Q3 2016	Q3 2017
	Century Towers	San Jose, CA	50%	376	2,006	64	108	172	86	456	0.0%	0.0%	Q3 2014	Q1 2017	Q1 2018
	500 Folsom	San Francisco, CA	50%	545	6,000	55	326	381	191	691	0.0%	0.0%	Q4 2015	Q4 2018	Q2 2020
Total Development Projects - Joint Venture				1,988	54,735	469	587	1,056	550	$  507
Grand Total - Development Pipeline				2,759	101,235	$  690	$  893	$    1,583	1,077
Essex Cost Incurred to Date									(470)
Essex Remaining Commitment									$ 607
(1)	Essex share of the estimated total costs of the project.
(2)	Net of the estimated allocation to the retail component of the project.
(3)	For the second quarter of 2015, the Company's cost includes $3.7 million of capitalized interest, $1.1 million of capitalized overhead and $1.3 million of development fees (such development fees reduced G&A expenses).
(4)	To date the Company has received $41.6 million of the expected $45 million of insurance proceeds for constructions costs related to the fire that occurred in March 2014.
(5)	Units are built to condominium standards and average approximately 1,500 square feet.

See Company's 10-K for additional disclosures
S-11

E S S E X  P R O P E R T Y  T R U S T, I N C.
Redevelopment Pipeline - June 30, 2015
(Dollars in thousands, except per unit amounts)
		Total	Estimated	Estimated		NOI
		Incurred	Remaining	Total	Project	For the six months ended
Region/Project Name (1)	Units	To Date	Cost	Cost	Start Date	2015	2014
Same-property - Redevelopment Projects(2) (3)
Northern California
Summerhill Park	100	$  3,253	$  6,625	9,878	Q4 2014
Southern California
Hamptons	215	4,410	19,170	23,580	Q1 2014
Monterras	292	15,784	10,599	26,383	Q1 2014
Seattle Metro
Park Highland	250	1,275	11,205	12,480	Q4 2014
Total Same-property - Redevelopment Projects	857	$     24,722	$     47,599	$     72,321		$    6,577	$   5,333
Non-same property - Redevelopment Projects
Southern California
Bunker Hill Towers (4)	456	$     23,632	$     52,513	$     76,145	Q3 2013
Total Non-same property - Redevelopment Projects	456	$     23,632	$     52,513	$     76,145		$    2,824	$   2,911

(1)	The Company incurred $0.3 million of capitalized interest, $2.3 million of capitalized overhead and $0.2 million of co-investment redevelopment fees related to redevelopment in Q2 2015.
(2)	Redevelopment activities are ongoing at these communities, but the communities have stabilized operations, therefore results are classified in same-property results.
(3)	During the three and six months ended June 30, 2015, the Company completed the redevelopment of interiors totaling 700 and 947 units for the same-property portfolio and 848 and 1,332 units for the total portfolio, respectively.
(4)	Current total cost reflects the redevelopment of 228 units (50% of the property).  The estimated cost to redevelop the remaining units plus additional revenue generating enhancements to the property is expected to be an additional $11.2 million.

See Company's 10-K for additional disclosures
S-12

E S S E XP R O P E R T YT R U S T, I N C.
Co-investments - June 30, 2015
(Dollars in thousands)	Essex  Ownership Percentage			Units		Total  Undepreciated Book Value		Debt  Amount		Essex   Book   Value		Weighted  Average  Borrowing Rate			Remaining Term of   Debt/(in Years)		For the Three Months Ended  June 30, 2015			For the Six Months Ended June 30, 2015
Operating Non-Consolidated Joint Ventures																	NOI
Essex Apartment Value Fund II, L.P. (Fund II) (1)		28.2	%		—	$	—	$	—	$	228		—			—	$	—		$	139
Wesco I, LLC(2)		50.0	%		2,275		552,872		300,582		103,208		3.8	%		9.8		8,478			18,357
Wesco III, LLC		50.0	%		993		232,901		119,909		52,816		3.6	%		5.2		3,407			6,572
Wesco IV, LLC		50.0	%		1,116		298,353		155,000		65,720		3.9	%		5.7		4,181			8,361
BEXAEW, LLC		50.0	%		2,723		521,422		321,837		92,260		3.0	%		5.7		7,441			15,197
CPPIB		55.0	%		1,728		606,895		—		339,600		—			—		7,764			13,532
Palm Valley		50.0	%		1,098		370,832		230,518		69,494		2.5	%		1.6		4,802			9,645
Other(3)		50.0	%		275		65,504		51,000		6,825		3.6	%		5.2		1,300			3,241
Total Operating Non-Consolidated Joint Ventures					10,208	$	2,648,779	$	1,178,846	$	730,151		3.3	%		5.9	$	37,373		$	75,044
Development Non-Consolidated Joint Ventures(4)		50/55	%		1,988		468,679		69,043		194,442		1.9	%		1.6		(125	)		(129	)
Total Non-Consolidated Joint Ventures					12,196	$	3,117,458	$	1,247,889	$	924,593						$	37,248		$	74,915

	Essex Portion of NOI and Expenses
NOI	$	19,324		$	38,419
Depreciation		(12,105	)		(24,022	)
Interest expense and other		(5,239	)		(11,190	)
Net income from operating co-investments	$	1,980		$	3,207

								Income from Preferred Equity Investments
			Weighted Average Preferred Return			Weighted Average Expected Term		For the Three Months Ended June 30, 2015		For the Six Months Ended June 30, 2015
Income from preferred equity investments								$	2,492	$	5,107
Income from early redemption of preferred equity investments									—		469
Preferred Equity Investments (5)		119,615		9.6	%		3.8	$	2,492	$	5,576
Total Co-investments	$	1,044,208						$	4,472	$	8,783

(1)	The Company has a 28.2% interest as a general partner and limited partner in Fund II. There are no properties remaining in Fund II at quarter end.
(2)	The Company purchased the joint venture partner's membership interest in the Reveal co-investment, as noted on S-15. The property is now consolidated.
(3)	The Company purchased the joint venture partner's remaining membership interest in The Huxley and The Dylan co-investments, as noted on S-15. The properties are now consolidated.
(4)	The Company has interests in seven development co-investments, which are detailed on S-11.
(5)	As of June 30, 2015 the Company has invested in eight preferred equity investments.

See Company's 10-K for additional disclosures
S-13

E S S E X  P R O P E R T Y  T R U S T, I N C.
Assumptions for 2015 FFO Guidance Range
Q2 2015 Earnings Results Supplement
($'s in thousands, except share and per share data) (1)		2015 Guidance Range
	YTD Actuals	Low End	High End	Changes from Guidance Provided on Q1 '15 Earnings Release
Net Operating Income ("NOI")
Total NOI from consolidated communities	$    396,332	$    814,000	$    819,400	Reflects Q2 '15 results, revised same-property revenue growth for the full-year to a midpoint of 7.9% and NOI to 10.5%.  Includes investment activity through July 2015.
Management Fees	4,330	8,300	8,700
Interest Expense
Interest expense, before capitalized interest	(106,445)	(216,600)	(214,800)
Forecasted interest capitalized	8,265	15,100	16,100	Capitalized interest updated for timing of development spend.
Net interest expense	(98,180)	(201,500)	(198,700)
Recurring Income and Expenses
Interest and other income	6,453	13,000	14,000
FFO from co-investments	32,337	66,300	68,300
General and administrative expense	(20,094)	(41,300)	(42,700)	Reflects change in allocation for property management expense.
Preferred dividends and non-controlling interest	(7,234)	(14,800)	(14,400)
Total recurring income and expenses	11,462	23,200	25,200
Non-Core Income and Expenses
Income from early redemption of preferred equity investment	469	469	469
Merger and integration expenses	(3,798)	(7,500)	(5,500)
Acquisition costs	(976)	(1,100)	(1,500)
Other non-core adjustments	1,957	1,957	1,957
Total non-core income and expenses	(2,348)	(6,174)	(4,574)
Funds from Operations	$    311,596	$    637,826	$    650,026
Funds from Operations per diluted Share	$         4.66	$         9.47	$         9.65
% Change - Funds from Operations	36.7%	20.0%	22.3%
Funds from Operations excluding non-core items	$    313,944	$    644,000	$    654,600
Core Funds from Operations per diluted Share	$         4.69	$         9.56	$         9.72
% Change - Core Funds from Operations	14.1%	12.0%	13.8%
Weighted average shares outstanding	66,922	67,350	67,350
(1) All non-core items are excluded from the YTD actuals and included in the non-core income and expense section of the FFO reconciliation.

See Company's 10-K for additional disclosures
S-14

E S S E X  P R O P E R T Y  T R U S T, I N C.
Summary of Apartment Community Acquisitions and Dispositions Activity
Quarter ended June 30, 2015
(Dollars in thousands, except average rent amounts)
Acquisitions				Essex
				Ownership			Purchase	Price per	Average
Property Name		Location	Units	Percentage	Entity	Date	Price	Unit	Rent
	8th & Hope	Los Angeles, CA	290	100.0%	EPLP	Feb-15	$  200,000	$    690	$ 3,708
	The Huxley (1)	Los Angeles, CA	187	100.0%	EPLP	Mar-15	48,784	522	2,439
	The Dylan (1)	Los Angeles, CA	184	100.0%	EPLP	Mar-15	51,266	557	2,646
		Q1 2015	661				$  300,050	$    605
	Reveal (2)	Woodland Hills, CA	438	99.75%	EPLP	Apr-15	$    73,013	$    337	$ 1,936
	Avant	Los Angeles, CA	247	100.0%	EPLP	Jun-15	99,000	401	2,281
		Q2 2015	685				$  172,013	$    360
Dispositions (3)				Essex
				Ownership			Sales	Price per
Property Name		Location	Units	Percentage	Entity	Date	Price	Unit
	Pinnacle South Mountain	Phoenix, AZ	552	100.0%	EPLP	Jan-15	$    63,750	$    115
		Q1 2015	552				$    63,750	115
(1)	In March 2015, the Company purchased the joint venture partner's remaining membership interest in The Huxley and The Dylan co-investments for a purchase price of $100.1 million. The properties are now consolidated.
(2)	In April 2015, the Company purchased the joint venture partner's 49.5% membership interest in the Reveal co-investment for a purchase price of $73.0 million.
(3)	In March 2015, the Company sold two commercial buildings aggregating 120,000 square feet located in Emeryville, CA for $13.0 million.

See Company's 10-K for additional disclosures
S-15

E S S E X  P R O P E R T Y  T R U S T, I N C.
2015 MSA Level Forecast: Supply, Jobs, and Apartment Market Conditions
	Residential Supply (1)					Job Forecast (2)		Market Forecast (3)
Market	New MF Supply	New SF Supply	Total Supply	% of MF Supply to MF Stock	% of Total Supply to Total Stock	Est.New Jobs Dec-Dec	% Growth	Economic Rent Growth
Los Angeles	10,000	6,000	16,000	0.6%	0.5%	92,600	2.2%	5.5%
Ventura	550	700	1,250	0.8%	0.4%	5,500	1.9%	4.4%
Orange	3,500	3,900	7,400	0.9%	0.7%	37,300	2.5%	4.9%
San Diego	3,900	3,700	7,600	0.9%	0.6%	36,200	2.7%	4.7%
So. Cal.	17,950	14,300	32,250	0.8%	0.6%	171,600	2.3%	5.0%
San Francisco	5,000	900	5,900	1.3%	0.8%	39,100	3.5%	9.0%
Oakland	2,000	3,900	5,900	0.6%	0.6%	25,500	2.4%	10.8%
San Jose	4,400	2,200	6,600	1.8%	1.0%	37,200	3.7%	8.1%
No. Cal.	11,400	7,000	18,400	1.3%	0.8%	101,800	3.2%	9.2%
Seattle	9,000	7,500	16,500	1.9%	1.4%	46,500	3.0%	5.1%
Weighted Average (4)	38,350	28,800	67,150	1.2%	0.8%	319,900	2.8%	6.5%
All data are based on Essex Property Trust, Inc. forecasts.
U.S. Economic Assumptions: 2015 G.D.P. Growth:  2.8% , 2015 Job Growth: 2.0%
(1) New Residential Supply: MF reflects Company's internal estimate of actual multifamily deliveries; SF is based on 12 month single family trailing permits reported by the US Census Bureau.
(2) Job Forecast:  refers to the difference between total non-farm industry employment (not seasonally adjusted) projected through Dec 2015 over estimated Dec 2014, expressed as total new jobs and growth rates.
(3) Market Forecast:  the estimated rent growth represents the forecasted change in effective market rents for Q4 2015 vs Q4 2014 (excludes submarkets not targeted by Essex).
(4)Weighted Average:markets weighted by scheduled rent in the Company's Portfolio.

See Company's 10-K for additional disclosures
S-16