Essex Property Trust, Inc. · NYSE:ESS
Essex Property Trust — Smith Barney Citigroup 2004 REIT CEO Conference
33 slides from Essex Property Trust's conference presentation, Mar 2, 2004
Slide 1: Targeted West Coast Portfolio
TARGETED WEST COAST PORTFOLIO ESSEX Smith Barney Citigroup 2004 REIT CEO Conference February 29, 2004 - March 3, 2004 The Proven Leader In West Coast Apartments we
Slide 2: Essex Property Trust, Inc. (NYSE:ESS)
Essex Property Trust, Inc. (NYSE:ESS)
Slide 3: Overview
Overview Dedicated West Coast multifamily REIT - Formed in 1971 - Initial Public Offering in June 1994 Consistent operating philosophy through numerous market cycles - Research-based strategy Experienced, committed management with strong track record - Among the highest in total return to shareholde
Slide 4: Current Diversified Portfolio
urrent Diversified Portfolio 26,216 Multifamily Units San Francisco Bay Area - 17% Other Assets - 2% Portland Metro Area - 5% Los Angeles County - 20% Seattle Metro Area - 16% Ventura County - 7% San Diego County - 12: Orange County - 20% I San Francisco Bay Area (4,293 units) Im Southern Califarnia
Slide 5: Requirements for Long-Term Success
Requirements for Long-Term Success ° + Stable and high occupancy Ms Predictable low risk from new construction x Growing and diverse economy Limited housing supply oni Pacific Region Key Characteristics Permanent constraints to new supply Job growth expectation High cost of home ownership Large and
Slide 6: Research-Based Strategy
Based Strategy Input Analysis Submarket Target Projections Acquisition or Disposition Submarkets
Slide 7: 2004 Business Plan
2004 Business Plan
Slide 8: Key Objectives for 2004
Key Objectives fo 0 Same-Property NOI slightly positive - .5% increase Stabilize three Development Communities - (limited FFO Impact) Acquisitions - $50 million on Balance Sheet - $150 million in Essex Apartment Value Fund II Restructure or Redeem Series D&E Perpetual Preferred Form Essex Apartment
Slide 9: Essex Apartment Value Fund (Fund I)
(Fund 1) Formed in 2001 with Institutional Investors Now fully invested - $640 million (including projected leverage) Equity Capital - $250 Million Current Portfolio - 15 Properties (4,396 units) - Portfolio Concentrated in Southern California - 3 Development Transactions (612 units)
Slide 10: Essex Apartment Value Fund II
(Fund Il) Targeted Equity Capitalization: $250 million Essex Ownership: $50 to $100 million (20% to 40%) Terms: Similar to Fund | Expected Initial Closing Date: Second Quarter 2004 Property Focus: Increase focus on Seattle and Northern California
Slide 11: 2004 Same-Property Revenue and NOI
2004 Same-Property Revenue and NOT 2004 Projections Region Revenues NOI Southern California 3.5% 3.4% Northern California (3.6%) (5.4%) Pacific Northwest 1.5% 0.7% Total 1.3% 0.5%
Slide 12: LA/Ventura: Avg. Rents vs. Jobs
LA/Ventura: Avg. Rents vs. Jobs °04-’09 : 1.2% th 04-'09: 3.5% qBEEEEEEEEE PPS SF oF ST
Slide 13: Orange Co MSA: Avg. Rents vs. Jobs
ee Orange Co MSA: Avg. Rents vs. Jobs $1,500 $1400 1.820.000 #1300 $1200 1.520.000 F300 $1,000 g 1.420.000 $200 " 1.220.000 ie 1220900 $200 $500 1.120.000 LPP IOI AE I ID SP OP SES GP ESS Pah PIPPI PM IMAI I PPS SBP oS oF o' ESA. Rents —e— Jobs Ratio of Rents to Median Incomes “BSS PP PP EP PE PPS P
Slide 14: San Diego MSA: Avg. Rents vs. Jobs
San Diego MSA: Avg. Rents vs. Jobs $1,200 $1,100 1,360,000 $1000 $800 Q $500 PP oP oh os os Ps s s St ot ot PPP KP HF SF Mp Ft ss Siva Rents eave Ratio of Rents to Median Incomes SIlGIEISIEIBIEIBIEIBIEISIEIBISIg BE EE EE PP PFI PPE IPE EPP SPP FPF PS FP ESSEX iste)
Slide 15: Bay Area: Avg. Rents vs. Jobs
Bay Area: Avg. Rents vs. Jobs nttlieeetlth FP EEE LS FPS SE asa. Rants oe Jobs ast Job Gro 09: 1.8% ast Market Rent Growth ’04- ’09: 4.2% Ratio of Rents to Median Incomes: Be HIE PPP LEE EEEEEE Bg Dh he ee
Slide 16: Seattle: Avg. Rents vs. Jobs
ee Seattle: Avg. Rents vs. Jobs $1,200 ic. frio00 i500 « $800 ao $03 $600 fy i $400 PES ILILELES SE LESS, Teme Rents Jobe Ratio of Rents to Median Incomes. vom Cae 8 PPP PP PP PE I PP PSP PF SF SF oS SF FP ESSEX
Slide 17: Portland: Avg. Rents vs. Jobs
ee Portland: Avg. Rents vs. Jobs + tH. CULE 04-’09 : 1.9% th 04-09: 2.4% La ast Job Growth ast Market Rent Gi Ratio of Rents to Median Incomes
Slide 18: Capital Market Deployment
004 Capital Market Deployme Southern Northern Seattle Criteria California California Metro. Projected 5-year net-effective 4.25% rent growth (per year) 3%-4% 6.25% 5%-6% 5.75 %5- Current cap rates 6%-6.5% 5.75%-6% 6.25% Property values relative similar 10%-15% 10%-15% to replacement cost Below Below
Slide 19: History of Success
History of Success
Slide 20: Annual Portfolio Growth
nnual Portfolio Grow Multifamily Units as of December 31, 28,000 23,000 18,000 13,000 8,000 3,000 ‘94 99 "00 ‘01 "02 03 Note: Includes partial ownership interest
Slide 21: Prudent Market Timing
Prudent Market Timin Southern . 2% Seattle calvomnla Metro Area 17% Southern Califomia 1086 San Francisco i Portland Pacific Bay Area Metro Area Northwest 5% 20% 18%, San Francisco Bay Area 70%
Slide 22: Average FFO Growth 1995-2003
1% Average FFO Growt 1995-2003 $4.50 $5.00 $4.39 $4.20 $3.90 $4.00 $3.26 $2.85 $3.00 $2.54 gio £223 $2.00 $1.00 i i $0.00 1995 1996 1997 1998 1999 2000 2001 2002 2003 12.6% 18.9% 12.2% 14.4% 19.6% 12.6% 2.5% -6.7%
Slide 23: Dividend History
Dividend Histo $3.50 $3.00 $2.50 $2.00 $1.50 $1.00 $1.67 $1.69 $1.72 $1.77 $3.08 $3.12 $2.80 $2.38 $2.15 $1.95 1994 1995 1996 1997 Annualized 1998 1993 2000 2001 2002 2003
Slide 24: Conservative Payout
Conservative Pay: 100% 91% 85% 7% j0% 74% 68% 68% 66% six 84% 50% 1994- 1995 1996 1997 1998 1999 2000 2001 2002 2003 IPO Note: Dividends as a percentage of FFO
Slide 25: Financial Occupancy
Financial Occupancy For years ended December 31, 96% 97% 97% 96% 96% 96% 97% 95% 95% 96% 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003
Slide 26: Our Peers
Our Peers 5-Year* Total Annual Return Essex Property Trust 22.60% Archstone Communities 13.13% Avalon Bay 13.58% BRE Properties 13.90% Equity Residential 13.93% "Source: NAREIT ReitWatch, December 2003
Slide 27: Total Return Performance
Total Return Performance = ESS LT ub “ NYSE
Slide 28: Slide 28
Slide 29: Total Market Capitalization
otal Market Capitalizatio (3 in Millions) $2,667 $2,206 $2,000 $1,900 1,00 $1,500 $1,300 $1,200 $500 45959 1994-1PO 1998 1999 2000 2001 2002 2003
Slide 30: Strong Financial Condition
Strong Fi cial Conditi Debt to Total Market Capitalization 31.2% Total Market Capitalization $2.7 billion Debt: Common Stock: $832 million $1,625 million i 31% of capital 61% of capital : Preferred Equity $210 million 8% of capital As of December 31, 2008
Slide 31: Conservative Leverage
Conservative Leverage Total Debt: $832 million Interest Expense Coverage 3.5x Tax Exempt -Variable $75 Million rn Fixed 806 $664 Million Lines of Credit 11%, $93 Million As of December 31, 2008
Slide 32: 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 statements under the Private Securities Litigation Reform Act of 1995, including statements about projected growth in Fun
Slide 33: Targeted West Coast Portfolio
TARGETED WEST COAST PORTFOLIO ESSEX The Proven Leader In West Coast Apartments we
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