Essex Property Trust, Inc. · NYSE:ESS
Essex Property Trust — Investor Presentation (March 2009)
21 slides from Essex Property Trust's investor presentation, Mar 4, 2009
Slide 1: Essex Property Trust, Inc.
ESSEX PROPERTY TRUST, INC.
Slide 2: Safe Harbor Statement / Forward-Looking Statement
2 SAFE HARBOR STATEMENT UNDER THE PRIVATE LITIGATION REFORM ACT OF 1995: This presentation by Essex Property Trust, Inc. (the “Company”) includes “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act o
Slide 3: About Essex
3 About Essex • Founded in 1971 • IPO in 1994 at $19.50 per share • One of the strongest balance sheets in the multifamily sector • Cycle-tested West Coast focus • Experienced management team • 15 consecutive years of dividend growth • Highest 10-year total return of any multifamily REIT • Current s
Slide 4: Portfolio Concentration
4 Units 8,032 % of Portfolio 30% Occupancy 97.6%* NOI % of total 30% Average Same-Store Rent $1,588* Same-Store Revenue Growth 7.6%** Units 12,980 % of Portfolio 48% Occupancy 95.8%* NOI % of total 52% Average Same-Store Rent $1,442* Same-Store Revenue Growth 0.5%** Units 5,980 % of Portfolio 22% Oc
Slide 5: Stable Markets
5 Stable Markets * Source: Occupancy - Annual Average, Realfacts (buildings completed before 2007); Job Growth: BLS, Annual Average growth.
Slide 6: Essex Markets: Low Single Family Affordability
6 *Affordability: the ratio of the estimated median household income to the “required income” (three times the mortgage payment) to purchase the media-priced Q4 2008 home. Assumes 10% down payment, 5.86% interest rate, 1% tax rate, 0.25% insurance rate. Source Median Price: Realtor.org/Axiometrics,
Slide 7: Decreasing New Supply in Essex Markets
7 Decreasing New Supply in Essex Markets
Slide 8: 2008 Accomplishments
8 2008 Accomplishments Financial • Issued 1.2 million common shares for total proceeds of $148 million • Obtained $100 million in construction financing to fund joint venture development projects • Entered into a $250 million five year secured line of credit with Freddie Mac • Originated $378 millio
Slide 9: 2009 Forecast
9 2009 Forecast FFO Projection • $5.50 - $5.90 (After adjusting for APB 14-1) Occupancy • Expected to range from 94% - 95% throughout each of the Company’s markets Dispositions • $100 million - - proceeds used to reduce commitments Development • $110 million in costs on balance sheet and $30 million
Slide 10: 2009 Market Forecast
10 Revenue Expenses NOI Northern California (0.5%) (1.2%) (0.1%) Seattle Metro (1.5%) 5.7% (5.2%) Southern California (2.5%) 3.2% (5.2%) Total Same-Property Portfolio (1.8%) 2.3% (3.8%) 2009 Market Forecast
Slide 11: Northern California: Rent to Median Income
11 Northern California Rent to Median Income Average Value '90-'07
Slide 12: Seattle Metro: Rent to Median Income
12 Seattle Metro Rent to Median Income Average Value '90-'07
Slide 13: Southern California: Rent to Median Income
13 Southern California Rent to Median Income Average Value '90-'07
Slide 14: Development Projects
14 Development Projects The Grand - Oakland, CA Units Fourth Street - Berkeley, CA Units Tasman Place - Sunnyvale, CA Units Cielo - Chatsworth, CA (Fund II) Units Studio 40-41 - Studio City, CA (Fund II) Units Belmont Station - Los Angeles, CA Units
Slide 15: Development Projects
15 Development Projects Joule Broadway - Seattle, WA Units Eastlake - Seattle, WA (Completed) Units (Fund II)
Slide 16: Boulevard - Fremont, CA
Boulevard- Fremont, CA 172 Units Total Cost: $ 8.9 million
Slide 17: Montclaire - Sunnyvale, CA
Montclaire - Sunnyvale, CA 390 Units Total Cost: $ 15.1 million
Slide 18: FFO Per Share
18 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
Slide 19: Consistent Dividend Growth
19 Consistent Dividend Growth
Slide 20: Current Debt Structure
20 Current Debt Structure* Secured Lines of Credit 7% Variable Rate 14% Exchangeable Bonds 10% As of December 31, 2008 Secured Debt 69%
Slide 21: Proven Cycle-Tested Strategy: Investment Considerations
21 Proven Cycle-Tested Strategy 10-Year Total Return of 210.4%* Investment Considerations Seasoned Management Team Conservative Operating Philosophy Stable Dividend Growth Supply Constrained Markets Source - Keybanc Capital Markets - The Leaderboard, February 20, 2009
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