Essex Property Trust, Inc. · NYSE:ESS
Essex Property Trust — NAREIT Institutional Investor Forum June 2003
28 slides from Essex Property Trust's conference presentation, Jun 2, 2003
Slide 1: Targeted West Coast Portfolio
TARGETED WEST COAST PORTFOLIO ESSEX NAREIT Institutional Investor Forum June 2003 The Proven Leader In West Coast Apartments we
Slide 2: Top performing multifamily REIT
nc. (NYSE:ESS) + Top performing multifamily REIT - 32 years experience 25,125 apartment homes in 118 communities - 1,248 apartment homes under development Research-based strategy - Right markets at the right time Experienced management team - Top four executives have worked together 18 years - Prove
Slide 3: Diversified Portfolio
Diversified Portfolio {2 tex Ca San Francisco Bay Area - 17% Other Assets - 2% Portland Metro Area - 5% Los Angeles County - 21% Seattle Metro Area - 16% Ventura County - 7% San Diego County - 12% Orange County - 20% I San Francisco Bay Area (4,293 units) IK Southern Califarnia (14,810 units) Pacifi
Slide 4: Essex's Southern California Portfolio
Essex s Southern California Portfolio -Apartment Communities 69 “Apartment Homes 14,810 units =Total Square Footage 12,046,025 (As of 3/31/03) +Essex’s Finandal Occupancy 95% «Market Occupancy Rate 95% + NOI - % of Total 48%
Slide 5: Essex's Northern California Portfolio
Essex's Northern California Portfolio -Apartment Communities 19 + Apartment Homes 4,293 units = mah =Total Square Footage 3,213,821 (as of 3/31/03) ee +Essex’s Finandal Occupancy 96% gi 3 i es «Market Occupancy Rate 94% aa 4 : = NOI - % of Total 29% San Francisca County AlamedaGounty Santa Clara'Cou
Slide 6: Essex's Pacific Northwest Portfolio
sex's Pacific No -Apartment Communities 27 “Apartment Homes 5,444 units =Total Square Footage 4,680,845 " (as of 3/31/03) : +Essex’s Finandal Occupancy 95% + Market Occupancy Rate 93% = NOI - % of Total 18% Seattle Metropolitan ‘Area F Portland - Metropolitan jue a
Slide 7: Consistent Performance
Consistent Perform Average FFO Growth of 12.5% 1996-2002 $5.00 $4.00 $3.00 $2.00 1995 1996 =«1997_ 1998 1999-2000 2001-—S 2002
Slide 8: Annual Portfolio Growth
nual Portfolio Growt Multifamily Units Multifamily Properties as of December 31, as of December 31, 120 24,000 28,609 ne ne 22,000 100 i 20,000 92 90 18,000 a | 80 | 16,000 vo ee 14,000 es @ ss so 10,000 oy ge se ene oy 989900 102 97 "98 "39 "00 "O02
Slide 9: Financial Occupancy
Financial Occupancy For the year ended December 31, 96% 97% 97% 96% 96% 96% 97% 959% 95% 1994 1995 1996 1997 1998 1999 2000 2001 2002
Slide 10: Proven Strategy
Proven Strategy Target Acquisition or Disposition ‘Submarkets Submarket Projections
Slide 11: All Housing Supply is Considered in Evaluating Markets
All Housing Supply is Consid Essex’s Markets Average Median Home Price $335,538 Single-family Permits (% of Stock) 1.0% Multifamily Permits (% of Stock) 1.0% * OtherMankets include: Las Vegas, Atlanta, Orlando and Phoenix: n Evaluating M Other Markets* $209,616 2.2% 1.2% Souces: SF Prices ~ National
Slide 12: Prudent Market Timing
Prudent Market Timin Southern . 2% Seattle calfomla Metro Area 17% Southern Califomia 1086 San Francisco i Portland Pacific Bay Area Metro Area Northwest 6% 20% 18%, San Francisco Bay Area 70%
Slide 13: Our Peers
Our Peers 5-Year* Total Annual Return Essex Property Trust 15.4% Archstone Communities 5.1% Avalon Bay 5.9% BRE Properties 7.5% Equity Residential 5.9% "Source: ReitWatch, April 2003
Slide 14: John M. Sachs Merger
John M. Sachs Merger + Tax-free reorganization structure Real estate assets valued at approximately $301 million + Acquired 20 multifamily assets - 3,231 apartment homes - Issued 2,719,875 shares of Essex common stock - Assumed mortgages on four of the newly acquired properties for approximately $64
Slide 15: 2003 Business Plan
2003 Business Plan
Slide 16: 2003 Business Plan
2003 Business Plan Reduced Internal Growth External Growth - Stabilize San Marcos apartments + 312 units—estimated total cost $50.9 million - The Essex Apartment Value Fund, L.P. + Invest $400 million 2003 Guidance: $4.33-$4.45 FFO per diluted share
Slide 17: Southern California Market Overview
Southern California Market Overview Portfolio Concentration - 57% Market Status + 15 Qtr.2003 Occupancy: 95.2% 15° Qtr.2003 NOI Growth 8.4% Limited Supply Single-Family Home Median Price: $324,000 Outlook + Stable Occupancies 2003 NOI Growth: 4% Essex Strategy + Selectively Acquire and Develop
Slide 18: Northern California Market Overview
Northern California Market Overview Portfolio Concentration + 18% Market Status + 1 Qtr. 2003 Occupancy: 95.8% 15° Qtr. 2003 NOI Growth (17.0%) Job losses Stabilizing Single-Family Home Median Price: $464,000 Outlook + Rents stabilizing; no upward pressure 2003 NOI Growth: -5% Essex Strategy + Selec
Slide 19: Pacific Northwest Market Overview
Pacific Northwest Market Overview Portfolio Concentration Seattle Metropolitan Area + 17% Portland Metropolitan Area + 6% Market Status + 15 Qtr.2003 Occupancy: 94.5% 15° Qtr. 2003 NOI Growth (7.9%) Job losses slowing Single-Family Home Median Price: $220,000 Outlook + Low interest rates impacting r
Slide 20: The Essex Apartment Value Fund
The Essex Formed with Institutional Investors Equity Capital - $250 Million Essex Contribution - $53 Million or 21% Approximate Investment Capacity - $700 Million Committed - $550 Million - 13 Properties (2,979 units) - 3 Development Transactions (612 units) Investment Firepower: Approximately $150
Slide 21: Commitment to Shareholders
Commitment to Shareholders
Slide 22: Strong Financial Condition
Strong Fi cial Conditi Debt to Total Market Capitalization 36.0% Total Market Capitalization $2.3 billion Debt: Common Stock: $812 million $1,233 million 36% of capital 55% of capital Preferred Equity $210 million 9% of capital As of March 31, 2003
Slide 23: Conservative Leverage
Conservative Leverage Total Debt: $812 million Interest Expense Coverage 3.6x Tax Exempt -Variable $60 Million Fixed 74% $599 Million Lines of Credit 1996, $153 Million As of March 31, 2003
Slide 24: Outperforms Key Indices
erforms Key Ind! Total Retum Performance EIT All Equity REIT dex Index Value Source: SNL Financial LC
Slide 25: Creating Shareholder Value
reating Shareholder Value $3.50 Dividends Per Share FFO Payout Ratio $3.08 $3.12 73% 71% $200 69x 69x $2.00 cos on ass $2.50 $2.38 o1s 2.8 goa | S155 j 55x $1.50 458 19881999 20002002002 Annuateed 19981999 2000-=«2007'=«2002oeened 2008
Slide 26: Why Invest In Essex Property Trust
yy invest In Essex Pri Focused Strategy - High-barrier to entry West Coast markets - §trong supply and demand fundamentals - Essex Apartment Value Fund, L.P. Quality assets in supply-constrained markets - Targeted West Coast Markets - West Coast strength to resume with economic recovery - Few region
Slide 27: Forward-looking Statements
Forward-looking Statemen SAFE HARBOR STATEMENT. UNDER THE PRIVATE SECURITIES LITITIGATION REFORM ACT OF 1995 This presentation includes statements that qualify as forward-looking staternents under the Private Securities Litigation Reform Act of 1995, including statements about projected growth in Fu
Slide 28: Targeted West Coast Portfolio
TARGETED WEST COAST PORTFOLIO ESSEX The Proven Leader In West Coast Apartments we
Essex Property Trust — NAREIT Institutional Investor Forum June 2003 on 6ix