Essex Property Trust, Inc. · NYSE:ESS
Essex Property Trust — California Apartment Markets Conference 2004
27 slides from Essex Property Trust's conference presentation, Nov 23, 2004
Slide 1: California Apartment Markets Conference
California Apartment Markets Conference November 16, 2004 Keith R. Guericke – President and Chief Executive Officer Essex Property Trust, Inc.
Slide 2: Overview
Overview Dedicated West Coast multifamily REIT Formed in 1971 Initial Public Offering in June 1994 – $19.50/share Consistent operating philosophy through numerous market cycles Research-based strategy Experienced, committed management with strong track record Among the highest in total return to sha
Slide 3: A Decade of Total Return Performance
A Decade of Total Return Performance Source: SNL Financial LC
Slide 4: Strategically Positioned Among Peers
Strategically Positioned Among Peers & nbsp; 5-Year* Total & nbsp; Annual Return Essex Property Trust 21.91% Archstone Communities 17.47% Avalon Bay 18.77% BRE Properties 17.19% Equity Residential 14.96% *Source: NAREIT ReitWatch, September 30, 2004
Slide 5: Keys to Success
Keys to Success Prudent Operating Principals Proprietary Research Model Capital Resources Entrepreneurial Approach
Slide 6: Operating Principals
Operating Principals Requirements for Long-Term Success Stable and high occupancy Predictable low risk from new construction Expanding and diverse economy Limited housing supply Dedicated West Coast Presence Permanent constraints to new supply Job growth expectation High cost of home ownership Large
Slide 7: Proprietary Research Model
Change in Occupancy New Construction of Multifamily and Single-Family Housing Apartment Vacancy Rates Current Market Conditions Cost to Own Single-Family Housing Diverse Economic Base Household Growth Household Income Growth Job Growth High Quality of Life Future Rents / Occupancy Proprietary Resear
Slide 8: Job Growth vs. Total Residential Growth
Job Growth vs. Total Residential Growth Supply Growth |iJob Growth New Jobs per New Housing Units 48 42 34. Ce rs: |) 4a
Slide 9: Job Growth vs. Total Residential Growth
Job Growth vs. Total Residential Growth wSupply Growth gob Grovih New Jobs per New Housing Units 8360,
Slide 10: Essex – Northern California and Seattle
Essex – Northern California and Seattle
Slide 11: Median Household Income Growth and Home Affordability
Median Household Income Growth and Home Affordabilit 8% 120% Le 100% 8% 5% 80% A% 3% 2% 1% 0% 80% 40% 20% 1983 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004e 2005 20061 0% Taincome Growth —e—Home Affordability Average Rents/Median Household Income 25.0% 22.5% 20.0% 17.5%
Slide 12: Median Household Income Growth and Home Affordability
Median Household Income Growth and Home Affordab 1% 120% 6% 100% 5% 80% 1% 3% 3% ‘os * il il - 0% 0% 1983 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004e 2005 20081 Ta income Growth —e—Home Affordability Average Rents Median Household income 25.0% 22.5% 20.0% 17.5% | | i
Slide 13: Essex – Northern California and Seattle
Essex – Northern California and Seattle
Slide 14: Proven Market Timing
Proven Market Timing Pacific Northwest 20% Southern California 10% Q4-1994 San Francisco Bay Area 70% Southern California 58% Portland Metro Area 4% San Francisco Bay Area 18% Seattle Metro Area 18% Other 2% Q3-2004
Slide 15: Capital Resources
Capital Resources Attractive financing and well-managed leverage Access to a variety of capital resources Common stock offerings Preferred stock issuances Discretionary Fund Capital
Slide 16: Essex Apartment Value Fund, L.P. – Fund I Update
Essex Apartment Value Fund, L.P. July 2001 September 2003 August 2004 August 2004 September 2004 October 2004 Fund I Update Formed Fund I with nine Institutional Investors including Essex’s 21.4% general and limited partner Fully invested – $640 million (including leverage) Entered into purchase and
Slide 17: Essex Apartment Value Fund, L.P. – Fund II Update
Essex Apartment Value Fund, L.P. Final Close: Total Equity Committed: Essex Ownership: Approximate Investment Capacity: Investment Strategy: Fund II Update Eight investors Includes seven of the nine Fund I investors $266 million $75 million (28.21%) Approximately $750 (with 65% leverage) Seattle and
Slide 18: Entrepreneurial Approach
Entrepreneurial Approach Condominium Conversion Opportunities Development Joint Ventures Value-Added Real Estate Opportunities
Slide 19: Palermo
Palermo San Diego, California Units: 230 Constructions Cost: $44.9 million Sold August 2004: $58.2 million
Slide 20: Hidden Valley Apartment Homes
Hidden Valley Apartment Homes 5065 Hidden Park Court – Simi Valley, California Units: 324 Estimated Cost: $48.3 million Initial Occupancy: December 2003 Stabilization: November 2004
Slide 21: The Essex on Lake Merritt
The Essex on Lake Merritt One Lakeside Drive – Oakland, California Units: 270 Constructions Cost: $72.7 million Stabilized Operations: First Quarter 2003 Sold August 2004: $88 million Invested $5 million with condo converter (buyer) to participate in one-third of the condo sales profits. Pillars of
Slide 22: Recent Northern California Acquisitions
Recent Northern California Acquisitions Vista Belvedere – Tiburon 76-Units located in Marin County UPREIT transaction Contract price of $17.4 million $229,605 per door Economic cap rate of 5.74%
Slide 23: Recent Northern California Acquisitions
Recent Northern California Acquisitions The Esplanade Apartments – San Jose 278 Units Contract price of approximately $60.1 million $216,157 per door Economic cap rate of 5.0%
Slide 24: Recent Northern California Acquisitions
Recent Northern California Acquisitions Harbor Cove – Foster City 400 Units Contract price of approximately $67.0 million $167,735 per door Economic cap rate of 5.11%
Slide 25: Recent Northern California Acquisitions
Recent Northern California Acquisitions Carlmont Woods - Belmont 195 Units Contract price of approximately $23.2 million $118,718 per door Economic cap rate of 5.10%
Slide 26: Forward-looking Statement
Forward-looking Statement 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 27: THANK YOU!
THANK YOU! Keith R. Guericke – President and Chief Executive Officer Essex Property Trust, Inc.
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