Essex Property Trust, Inc. · NYSE:ESS
Essex Property Trust — Baird Growth Stock Conference 2012
24 slides from Essex Property Trust's conference presentation, May 8, 2012
Slide 1: Baird Growth Stock Conference
Baird Growth Stock Conference Via - Sunnyvale, CA May 8-10, 2012
Slide 2: Table of Contents
Table of Contents Pages Section I. Overview: Top Performing REIT 3-7 Section II. Financial Information 8-10 Section III. Investment Strategy: West Coast Focus 11-16 Section IV. Value Creation Platforms 17-22
Slide 3: About Essex Property Trust
About Essex Property Trust Multifamily Real Estate Investment Trust (REIT) § Supply-constrained coastal markets in California and Washington § Founded in 1971 § IPO in 1994 at $19.50/sh (today stock is $157/sh) § 158 apartment communities with +32,600 units § $8.0 billion total market capitalization
Slide 4: Strong Track Record: Performance Record
STRONG TRACK RECORD Performance Record Total Return Since IPO (2) Essex Outperforms Peers (1) As of 5/2/12. (2) Source: NAREIT. Represents the value of a $100 investment and reinvestment of all dividends. As of April 30, 2012. § 19% compound annual total return since IPO § 27 % total return in 2011
Slide 5: Long Track Record of Consistent Financial Performance
Long Track Record of Consistent Financial Performance Overview § 7% Compound Annual Growth in FFO per share since IPO § 6% Compound Annual Dividend Growth per share since IPO
Slide 6: Rents and Net Operating Income (NOI) Accelerating
Rents and Net Operating Income (NOI) Accelerating Source: Peer group includes 11 multifamily REITs for 2011 and 7 multifamily REITs that have reported 1Q12 results § Rents and NOI are accelerating in all our markets Overview
Slide 7: Essex Projected to Lead NOI Growth in 2012
§ Northern California and Seattle continue to outperform § Southern California continues slow-steady recovery Essex Projected to Lead NOI Growth in 2012 Overview
Slide 8: Financial Information
Financial Information Reveal (formerly Millennium) - Woodland Hills, CA
Slide 9: Conservatively Proportioned & Flexible Balance Sheet
Conservatively Proportioned & Flexible Balance Sheet § Leverage : 30% on a debt to total market capitalization basis § One of the lowest within the multifamily peer group § Debt : Debt to adjusted EBITDA is expected to be approximately 7.0X by year-end 2012 § Liquidity : Nearly $400 million in avail
Slide 10: FFO Per Share Guidance
FFO Per Share Guidance $6.52-$6.77 Same Property Revenue Growth (Midpoint) 6.0% Same Property NOI Growth of the Consolidated portfolio (Midpoint) * 8.0% Market Expectations Market Market Market Job Growth Rent Growth Occupancy Southern California 1.1% 5.7% 95.5% Northern California 1.9% 8.6% 96.8% S
Slide 11: Investment Strategy: West Coast Fundamentals
Anavia - Anaheim, CA West Coast Fundamentals II. Investment Strategy
Slide 12: Why Focus on the West Coast
Via - Sunnyvale, CA Why Focus on the West Coast Strong Job Growth § Tech jobs leading Favorable Demographics § Strong Demand From Echo Boomers (age 20-34) and Baby Boomers Rents Rebound from Recessionary Lows § Rents declined further and recovered later relative to other major U.S. metros Headwinds
Slide 13: Job Growth: NOT Evenly Distributed
Job Growth: NOT Evenly Distributed § Job growth in many Essex markets outpaces U.S. average § LA job growth improving and expected to be 1% in 2012 Investment Strategy Essex Markets Other Markets
Slide 14: Strong Projected Rent Growth: Essex in Top Markets
Strong Projected Rent Growth: Essex in Top 5 Markets Source: Axiometrics § Approximately 65% of Essex’s NOI is located in the top five projected rent growth markets in the nation over the next five years Investment Strategy
Slide 15: Single-Family Prices Restrict Homeownership
Sources: National Association of Realtors, Dataquick, Essex Single-Family Prices Restrict Homeownership § Despite the fall in home prices since 2008, prices remain high in Essex markets Investment Strategy Essex Markets Other Markets
Slide 16: Supply: For-Sale Supply Risk Low
Source: U.S. Census 16 Supply: For-Sale Supply Risk Low Essex Portfolio Investment Strategy
Slide 17: Value Creation Platforms
Value Creation Platforms Bella Villagio - San Jose, CA
Slide 18: Core Competencies: Acquisitions
§ Acquired $1.2 billion of assets since the beginning of 2010, representing a 30% expansion of gross asset value (1) § Estimated 5.5% yield in 2012, expected to grow to 6.25% in 2013 § Improved the Net Asset Value, Cash Flow and Growth Prospects of the Company § Upgraded the Quality of the Portfolio
Slide 19: 5 Developments Under Construction - $516 Million
Queen Anne 275 units $79.1 million estimated total cost November 2012 estimated completion date 50% owned by ESS Epic San Jose, CA Phase I - 280 units Phase II & III - 480 units $192 million estimated total cost (Ph I and II) May 2013 estimated completion date 55% owned by ESS 5 Developments Under C
Slide 20: 5 Developments Under Construction - $516 Million
West Dublin Dublin, CA 309 Units $94.5 million estimated total cost June 2013 estimated completion date 55% owned by ESS Santa Monica West Hollywood, CA 184 Units $75.4 million estimated total cost July 2014 estimated completion date 50% owned by ESS Fountain at La Brea West Hollywood, CA 187 Units
Slide 21: Redevelopment and Selective Repositioning
Before After The Bluffs II San Diego, CA 224 units $9.7 million renovation cost $43,300 cost per unit 9-10% estimated return Redevelopment and Selective Repositioning § Capitalize on the strategy of owning Class B quality assets in A locations, which leads to greater renovation potential § Focus on
Slide 22: Key Strengths
416 on Broadway - Glendale, CA Santee Court - Los Angeles, CA Key Strengths § Attractive market fundamentals in West Coast markets § Strong growth prospects § FFO per diluted share projected to grow 18% for 2012 § Strong balance sheet with ample financial flexibility to take advantage of attractive
Slide 23: Safe Harbor Disclosure
Safe Harbor Disclosure Certain statements in this presentation, which are not historical facts, may be considered forward-looking statements within the meaning of the federal securities laws. The forward looking statements, some of which can be identified by terms and phrases such as “forecast”, “es
Slide 24: Investor Relations Contact
Fourth & U - Berkeley, CA 416 on Broadway - Glendale, CA Joule - Seattle, WA Via - Sunnyvale, CA Axis 2300 - Irvine, CA Arbors at Park Rose - Oxnard, CA For additional information, please contact the Company’s Investor Relations department at (650) 849-1600.
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