Essex Property Trust, Inc. · NYSE:ESS
Essex Property Trust — NAREIT Institutional Investor Forum 2009
16 slides from Essex Property Trust's conference presentation, Jun 3, 2009
Slide 1: Essex Property Trust, Inc. NAREIT Institutional Investor Forum
Essex Property Trust, Inc. NAREIT Institutional Investor Forum June 3-5, 2009
Slide 2: Why Essex
Job Growth New construction Income Growth Population Growth Household Growth Estimate Future Supply & Demand Ranking of 27 Submarkets to Determine Allocation of Capital Project Future Rents & Occupancy Proprietary Research Model Ticker ESS: NYSE Founded 1971 Initial Public Offering 1994 ($19.50 per
Slide 3: West Coast Focus
Seattle Metro Area Units: 5,980 Portfolio Percentage: 22% Occupancy: 97.3%* NOI % of Total: 18% Average Same-Store Rent: $1,118* Northern California Units: 8,032 Portfolio Percentage: 30% Occupancy: 97.6%* NOI % of Total: 30% Average Same-Store Rent: $1,567* Southern California Units: 12,850 Portfol
Slide 4: Seattle
Average Rent as a % of Median Household Income (in 000’s) 3 Bedroom Rent vs. Median Monthly Home Payment Growth: Jobs vs. Total Residential Supply Avg. Value 1990 - 2008 Seattle
Slide 5: Northern California
Growth: Jobs vs. Total Residential Supply 3 Bedroom Rent vs. Median Monthly Home Payment Average Rent as a % of Median Household Income (in 000’s) Avg. Value 1990 - 2008 Northern California
Slide 6: Southern California
Growth: Jobs vs. Total Residential Supply 3 Bedroom Rent vs. Median Monthly Home Payment Average Rent as a % of Median Household Income (in 000’s) Avg. Value 1990 - 2008 Southern California
Slide 7: Stable Occupancy
Ø Limited total residential supply during ALL periods, not just recessions Ø High Ownership costs vs. renting Ø Limited exposure to high apartment vacancy during periods of job losses Ø Ability for Apartment markets to recover relatively quickly, due to lower starting vacancy at the point of recover
Slide 8: Essex Market Dynamics
Low Supply in Essex Markets (Supply as a % of total housing stock)* Essex Markets Major U.S. Metros AFFORDABILITY: Equals the ratio of the Median Household Income to the Income Required to purchase the Median Priced Home. A value of 100% implies the Median Household Income just qualifies to purchase
Slide 9: Historical Single-Family Affordability
Historical Single-Family Affordability Year 2001 Year 2006 Qt 2009 Median Home Median Home Median Home MSA Price _Afordabilty MSA Price Affordability MSA Price _ Affordability |San Francisco $ 475,500 61% [San Diego $ 603,100 42% ISan Francisco $ 583,900 63% JOakiand $ 422,600 65% [San Francisco $ 7
Slide 10: Lower Homeowner Default Rates in Essex Markets
Essex Markets Lower Homeowner Default Rates in Essex Markets
Slide 11: National Economic Timeline
National Economic Timeline (All r ( qt 28 9309 qa'09 qilg2 "10 qiiqd 10 gtlq2 "11 @iga 11 2012 Moderate GOP osses Flav eetrale GOP Moder ston oP ow Growth is-08%) Growth (05% ale Jb osses sobs Steep Jo Losses (AA 4.525 Frotots Essex Apartment Renang Renang Supay Deliey Pipeline Delvey Pipeline Dever
Slide 12: Essex Job Market Attributes
Essex Job Market Attributes 2010 Recovery Fisox Matra ve. US Job Market Fundamentals Over Noxt Gyele ers (Energy, Health C 18 of Major US Universi lence) % of Total hi ars, Research Institutions SOP (Construction 1. San Francisco 12. San Jose 3. San Diego 4. Ventura 5. Orange 6. Oakland 718, LSeatte
Slide 13: Weekly Initial Unemployment Claims
Weelly Initial Unemployment Claims: 4-week Moving Average Weelyy Initial Unemployment Claims 4 Week MA 2- US + Calforia
Slide 14: Same-Store NOI Growth and 10-Year Total Return
Same-Store NOI Growth Same-Store Revenue Growth Same-Property Financial Occupancy 10-Year Total Return *Data from SNL Financial & Keybanc Report - The Leaderboard: 5/22/2009
Slide 15: Strong Balance Sheet
Sources & Uses of Capital ($ in millions) 71% 2% 14% 8% 5% • Self-Funded through 10-year secured financings • Bank facility only debt with financial covenants • Match funding strategy for external growth Fixed-Rate (Secured) $1,281 Line of Credit (Unsecured) $45 Line of Credit (Secured) $140 Exchang
Slide 16: Proven Results
Dividends Per Share FFO Per Share* * Does not include the adoption of APB 14-1 in 2008 which would retroactively alter 2007 FFO by $0.15 per share, 2008 FFO by $0.10 per share and 2009 forecasted FFO midpoint by $0.11 per share Proven Results
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