O C T O B E R N O V E M B E R

Transcription

1 O C T O B E R NAREIT PRESENTATION N O V E M B E R

2 TA B LE OF CONTENTS PAGE(S) ABOUT ESSEX WEST COAST INVESTMENT STRATEGY TECH INDUSTRY: THEN & NOW INVESTMENT OVERVIEW FINANCIAL PERFORMANCE & CAPITAL MANAGEMENT APPENDIX Pacific Electric Lofts, Los Angeles, CA 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, estimate, expect, anticipate, should, could, may, and similar expressions, reflect the current views of Essex Property Trust, Inc. ( Essex or the Company ) and its affiliates with respect to future events and are subject to risks and uncertainties. Such forwardlooking statements involve the risk that actual results could be materially different from those described in such forward-looking statements. Factors that could cause actual results to be materially different are discussed under the caption Risk Factors in Item 1A of the Company s Report on Form 10-K for the year ended December 31, All forward-looking statements and reasons why results may differ included in this presentation are made of the date hereof, and we assume no obligation to update any such forward-looking statements or reasons why actual results may differ. 2

3 ONLY PUBLIC MULTIFAMILY REIT DEDICATED EXC LUSIVELY TO THE WEST COAST (1) Represents percent of pro rata NOI as of 9/30/15. (2) East Bay includes Alameda and Contra Costa Counties. (3) As of 9/30/15. (4) Multifamily REITs represent the total return of 7 peers through 9/30/15. NORTHERN CA, 40% (1) Ventura 5% Los Angeles 19% Orange County 11% San Diego 8% SEATTLE, 17% (1) San Francisco MD 10% East Bay (2) 13% Santa Clara 17% SOUTHERN CA, 43% (1) Dedicated to coastal markets of California and Washington with high barriers to entry 245 properties totaling 58,000+ apartment homes $20.5 billion in total market capitalization (3) Highest shareholder returns of multifamily REITs (4) over 3, 5, 10, and 20 year periods 21 year history of increasing cash dividend Top executives share an average tenure of roughly 20 years S&P 500 Company 3

4 KEY STRATEG IC OBJEC TIVES Add value through strategic redevelopment Acquire and develop West Coast properties near transportation nodes in submarkets with highest expected rent growth Drive rent growth on high occupancy Internal value creation through transformational synergies Maintain strong balance sheet and financial flexibility 4

5 STRONG WEST COAST FUNDAMENTALS

6 San Jose San Francisco Seattle San Diego Orange County Boston Los Angeles Oakland Washington DC New York Ventura ROBUST WEST COAST JOB G ROWTH WEST COAST JOB GROWTH OUTPACES THE U.S. AND OTHER MAJOR MSA S 6% Trailing 3 Month Job Growth As of September % 4% Essex Portfolio Wtd. Avg. = 3.4%* 3% 2% U.S. Avg. = 2.1% 1% 0% ESS Markets Non ESS Markets Source: BLS (not seasonally adjusted) *For those markets included in this graph which represents 98% of Essex s NOI at the Company s pro rata share as of 9/30/15. 6

7 FAVORABLE DEMOGRAPHICS FAVORABLE DEMOGRAPHIC TRENDS INDICATE CONTINUED RENTAL DEMAND 24 U.S. Population by Age Group (in Millions) to 24 years 25 to 29 years 30 to 34 years 35 to 39 years 40 to 44 years 45 to 49 years 50 to 54 years 55 to 59 years 60 to 64 years Source: Census 2014 Population 2005 Population 7

8 San Jose Seattle Oakland Los Angeles Orange County San Francisco Ventura San Diego STRONG PERSONAL I NCOME G ROWTH STRONG PERSONAL INCOME GROWTH SUPPORTS RENT GROWTH IN ESS MARKETS 7% 2015 Personal Income Growth Estimates 6% 5% 4% Essex Portfolio Wtd. Avg. = 5.2%* U.S. Avg. = 3.6% 3% 2% 1% 0% Source: BEA, Rosen Consulting Group, Economy.com *For those markets included in this graph which represents 98% of Essex s NOI at the Company s pro rata share as of 9/30/15. 8

9 Dec-90 Dec-92 Dec-94 Dec-96 Dec-98 Dec-00 Dec-02 Dec-04 Dec-06 Dec-08 Dec-10 Dec-12 Dec-14 Dec-90 Dec-92 Dec-94 Dec-96 Dec-98 Dec-00 Dec-02 Dec-04 Dec-06 Dec-08 Dec-10 Dec-12 Dec-14 LIMITED SUPPLY I N ESS MARKETS ESS CA SUPPLY AS A % OF STOCK HAS HISTORICALLY BEEN BELOW 1% AND REMAINS MUTED BOTTOM LINE: RELATIVE TO THE NATION, ESS CA MARKETS HAVE LESS HOUSING SUPPLY WITH BETTER JOB GROWTH Total Permits as a % of Total Stock ESS CA vs. U.S. Single Family Permits as a % of Single Family Stock ESS CA vs. U.S. 2.0% 2.0% 1.5% 1.5% 1.0% 1.0% 0.5% 0.5% 0.0% 0.0% Source: Census, ESS, Rosen Consulting Group ESS CA Permits as % of Stock US Permits as % of Stock 9

10 Median Single Family Home Price (in 000s, NAR, Dataquick, & Moody's) DEMAND TO EXCEED SUPPLY I N ESS MARKETS IN ESS SUPPLY-CONSTRAINED MARKETS, DEMAND IS EXPECTED TO EXCEED SUPPLY RELATIVE TO OTHER MAJOR METROS New Household Formation to Total New Supply (1) $1,200 $1,000 Core Essex Markets Essex Portfolio Other Markets U.S. San Jose San Francisco $800 $600 $400 $200 Denver Miami Houston New York DC Dallas Boston Baltimore U.S. Atlanta Seattle Phoenix Oakland Orange County Essex Portfolio* San Diego ESS Los Angeles Submarket Nassau-Suffolk $ Ratio of New Home Demand to Total New Supply (2016F-2018F) Source: NAR, Moody's, Dataquick, Economy.com permits and jobs, except for 2016, which represent ESS forecasts *Essex Portfolio weighted by % of SS Revenue as of Q (1) New Home demand based upon a ratio of 2 forecast jobs to create one household (forecasts are ESS and Moody's). Total new supply based on ESS forecasts and total permits, assuming a 12 month completion lag; except U.S., which is based on forecast starts (permits and starts from Moody's). 10

11 Chicago Nassau-Suffolk Minneapolis Atlanta Baltimore Dallas Boston Washington D.C. Houston Orlando Las Vegas Austin Phoenix Portland Philadelphia Denver Seattle Miami/Ft. Lauderdale New York Ventura Los Angeles San Diego San Jose Oakland Orange San Francisco RENTAL AFFORDA BILITY RENTING IS SIGNIFICANTLY CHEAPER THAN OWNING A HOME IN ESS MARKETS 160% Single Family Home Affordability 140% 120% Cheaper to Own 100% 80% Cheaper to Rent 60% 40% 20% 0% ESS Market Other Market Source: Moody s, National Association of Realtors, Essex. As of Q Single Family Affordability Equals the ratio of the actual median household income to the income required to purchase the median priced home. The required income is defined such that the mortgage payment is 30% of said income, assuming a 5% down payment and a 30-year fixed mortgage rate (4.25%). 11

12 60% WEST COAST EXPEC TED TO CONTINUE TO OUTPERFORM RENT GROWTH IN ESS MARKETS IS EXPECTED TO EXCEED THE U.S. AND TOP 20 MSA S (1) THROUGH 2020 Cumulative Rent Growth: ESS vs. Major Metros and U.S. 54% 50% 14% 40% 40% 40% 30% 20% 10% 22% 15% 14% 7% 0% -10% ESS Top 20 MSA's U.S. Source: Axiometrics Derived Rents (Actual 3Q Q 2015; Forecast 3Q Q 2020) (1) Top 20 MSA s excludes Essex markets, but includes the other major metros in the U.S. 12

13 TECH INDUSTRY: THEN & NOW

14 T E C H T O D AY V S. D O T - C O M THEN (2000) NOW (2014) % OF THE WORLD WITH ACCESS TO INTERNET 7% 43% GLOBAL INTERNET POPULATION 0.4B 3.0B NUMBER OF DEVICES PER PERSON (by 2020) PRICE-TO-SALES RATIO NUMBER OF INTERNET/SOCIAL MEDIA IPOS AVERAGE AGE OF COMPANIES GOING PUBLIC 6 11 VENTURE CAPITAL FUNDING $68B $29B US ECOMMERCE REVENUE $12B $304B Source: Bloomberg, Broadband Commission, Birinyi Associates, Rosen, PwC MoneyTree. NVCA, International Telecommunication Union 14

15 WEA LTH CREATION I S ACCELERATING ON THE WEST COAST TECH HUBS ON THE WEST COAST HAVE HELPED FUEL A SHIFT IN ECONOMIC POWER FROM THE EAST COAST TO THE WEST COAST SAN JOSE HAS THE HIGHEST GDP PER CAPITA OF ALL MAJOR U.S. CITIES SAN FRANCISCO Real GDP/Capita: $80,643 Growth: 16% LOS ANGELES Real GDP/Capita: $60,148 Growth: 17% SEATTLE Real GDP/Capita: $75,874 Growth: 18% SAN JOSE Real GDP/Capita: $105,482 Growth: 46% WASHINGTON D.C. Real GDP/Capita: $72,191 Growth: 8% BOSTON Real GDP/Capita: $74,746 Growth: 16% NEW YORK Real GDP/Capita: $70,830 Growth: 16% Source: Bureau of Economic Analysis *Real GDP represents 2014 Per Capita Real GDP by MSA and growth represents Cumulative Growth

16 U N I C O R N S V S. P U B L I C T E C H C O M PA N I E S TOP 10 PUBLIC TECH COMPANIES EMPLOY ALMOST 15X MORE PEOPLE THAN THE TOP 20 UNICORNS IN THE BAY AREA AND SEATTLE CISCO EMPLOYS MORE EMPLOYEES THAN THE TOP 20 UNICORNS COMBINED BOTTOM LINE: MOVEMENTS MADE BY LARGE PUBLIC TECH COMPANIES SUCH AS APPLE AND GOOGLE HAVE A MORE RELEVANT IMPACT ON THE ECONOMY THAN UNICORNS Rank Company PUBLIC TECH COMPANIES Total Employees Est. Bay Area/ Seattle Employees Est. Market Value (in Billions) 1 Apple 115,000 25,150 $ Google 55,419 21,000 $ Microsoft 115,905 47,251 $ Amazon 183,100 27,960 $ Facebook 10,012 5,500 $ Oracle 135,070 7,465 $ Intel 106,000 6,790 $ Cisco Systems 70,336 14,638 $ Salesforce 16,227 5,100 $ HP 302,000 4,570 $49.8 Total 1,109, ,424 2,708 Rank Company Source: Silicon Valley Business Journal, Puget Sound Business Journal, San Francisco Business Times, Wiki, Essex estimates UNICORNS Total Employees Est. Bay Area/ Seattle Employees Est. Market Value (in Billions) 1 Uber 4,000 2,050 $ Airbnb 1, $ Palantir 1, $ Pinterest $ Dropbox 1, $ Theranos $9.0 7 Square 1, $6.0 8 Zenefits $4.5 9 Cloudera $ Docusign 1, $ Houzz $ Nutanix 1, $ SurveyMonkey $ Medallia $ Okta $ AppDynamics $ Kabam $ Eventbrite $ Good Technology $ Tintri $1.0 Total 19,470 11,401 $

17 COMPARISON OF LARG E TECH VS. NON - TECH FIRMS TOP 10 TECH FIRMS HAVE ~$556B IN CASH ON HAND, MORE THAN DOUBLE THE AMOUNT OF NON- TECH COMPANIES LARGEST PUBLIC TECH COMPANIES LARGEST PUBLIC NON-TECH COMPANIES (3) Company Headquarters Est. Market Value (Billions) (1) Cash Available 2015 (Billions) (2) Company Headquarters Est. Market Value (Billions) (1) Cash Available 2015 (Billions) (2) 1 Apple Cupertino, CA $675.0 $ Google Mountain View, CA $504.6 $ Microsoft Redmond, WA $438.7 $ Amazon Seattle, WA $309.1 $ Facebook Menlo Park, CA $301.8 $ Oracle Redwood City, CA $173.2 $ Intel Santa Clara, CA $160.0 $ Cisco San Jose, CA $144.4 $ Salesforce San Francisco, CA $52.1 $ HP Palo Alto, CA $49.8 $17.2 Total $2,808.7 $556.3 Average $280.9 $55.6 Source: Company Disclosures (1) As of November 6, (2) Includes cash, cash equivalents, and marketable securities. (3) Excludes finance companies. 1 ExxonMobil Irving, TX $341.4 $4.3 2 General Electric Fairfield, CT $304.7 $ Johnson & Johnson New Brunswick, NJ $279.7 $ Pfizer NYC, NY $208.2 $ Proctor & Gamble Cincinnati, OH $207.1 $ Walt Disney Burbank, CA $197.1 $4.5 7 Visa Foster City, CA $192.4 $9.2 8 Walmart Bentonville, AR $187.7 $5.8 9 The Coca-Cola Company Atlanta, GA $181.0 $ Chevron San Ramon, CA $175.0 $13.3 Total $2,274.3 $256.5 Average $227.4 $

18 Number of Employees LARG E TECH FIRMS CONTINUE TO HIRE TOP 10 LARGE TECH FIRMS GLOBAL EMPLOYMENT GROWTH OVER THE PAST DECADE HAS CONTINUED TO RISE OVER THE TEN YEAR PERIOD, THE COMPOUND ANNUAL GROWTH RATE OF EMPLOYMENT HIRING HAS BEEN 10.2% 1,400,000 Total 10 Large Tech Firm Employment (1) ,200,000 1,000, , , , , YTD Source: Company Disclosures (1) Includes Top 10 Largest Public Tech Firms today that have been public since

19 INVESTMENT OVERVIEW

20 CORE COMPETENCIES TO CREATE VALUE ACQUISITIONS Improve the NAV/sh, cash flow/sh and growth prospects of the Company DEVELOPMENT Develop high-quality tenant desired apartment homes near transportation nodes REDEVELOPMENT Focused on rent justified improvements to maximize NOI and value CO-INVESTMENT PLATFORM Facilitates growth via private capital and provides attractive risk adjusted returns Bunker Hill (Rendering) Avant One South Market Park 20 20

21 2015 ACQUISITIONS TO DATE YEAR-TO-DATE ACQUISITIONS OF $472M (1) Reveal Woodland Hills, CA The Dylan West Hollywood, CA 8 th & Hope Los Angeles, CA Avant Los Angeles, CA The Huxley West Hollywood, CA (1) Contract price at Company s pro rata share. 21

22 Cost in millions DEVELOPMENT PIPELINE UPDATE Stabilized or completed construction on 10 projects in 2014 for a total cost of ~$1.4B Expect to complete construction and begin leasing five projects in 2015 for a total cost of $0.5B 2 announced starts year-to-date 2015 Delivery of Development Timeline (2) Delivery of Development Pipeline # of Properties Units Total Cost (1) $1,600 $1,400 $1,200 $1,000 $ ,071 $ $ $ $0.4 Total 11 3,146 $1.7 $600 $400 $200 ESS Share Total Cost $1.1 Unfunded Cost $0.6 Total cost as a $ of total market cap. 5.4% $ Unfunded cost as a % of total market cap. 2.9% (1) Total cost in billions and not ESS share. Includes only those projects under construction as of 9/30/15. (2) Based on initial occupancy. 22

23 FINANCIAL PERFORMANCE & CAPITAL MANAGEMENT

24 CONTINUED OUTPERFORMANCE ESS had the highest same-property NOI growth of the multifamily peer group each of the last four years and has significantly exceeded the peer average NOI growth in '15 is expected to be 140bps stronger than '14 due to stronger revenue growth 12% Same-Property NOI Growth 10.6% 10% 9.2% 9.2% 8% 7.4% 6% 4% 2% 0% E ESS Peer Average (2) (1) Source: Company Disclosures (1) 2015 is the midpoint of company guidance as of Third Quarter Earnings Releases. (2) Peer average represents 7 multifamily REITs. 24

25 C A PITAL STRUCTURE PROFILE $20.5 BILLION TOTAL CAPITALIZATION Credit Facility < 1% Preferred Stock < 1% Unsecured Debt 15% Secured Debt 11% Equity 74% DEBT SUMMARY ($ MILLION) 9 / 3 0 / 1 5 Unsecured Debt Bonds $2,863 Term Loan 225 Line of Credit 2 Total Unsecured Debt 3,090 Mortgage Debt Fixed Rate 1,932 Variable Rate 292 Total Secured Mortgage Debt 2,224 Total Consolidated Debt $5,314 LIQUIDITY PROFILE ($ MILLION) 9/30/15 Unsecured Credit Facility Committed $1,025 Balance Outstanding 2 Source: Company Disclosures As of 9/30/2015. Equity Preferred Stock Credit Facility Unsecured Debt Secured Debt Undrawn Portion of Credit Facility 1,023 Cash, Cash Equivalents & Marketable Securities 205 Total Liquidity $1,228 25

26 STRONG CREDIT PROFILE SELECT BALANCE SHEET RATIOS 9/30/15 6/30/15 COVENANT TARGETS Secured Debt / Undepreciated Book 16% 16% < 40% < 16% Total Debt / Undepreciated Book 38% 39% < 65% < 42% Interest Coverage 345% 335% > 150% > 300% Unsecured Debt Ratio (1) 290% 284% > 150% > 250% Net Indebtedness to Recurring EBITDA (2)(3) 6.1X 6.3X 6.0X 7.0X Unencumbered NOI to Total NOI 66% 66% > 65% CREDIT RATINGS FITCH: BBB+ (STABLE) MOODY S: Baa2 (POSITIVE) S&P: BBB (POSITIVE) Source: Company Disclosures (1) Unsecured debt ratio is unsecured assets (excluding investments in joint ventures) divided by unsecured indebtedness. (2) Net Indebtedness is total debt less unamortized premiums, unrestricted cash, and marketable securities. (3) Adjusted EBITDA annualizes the pro forma NOI for current quarter acquisitions and excludes non-routine items in earnings. 26

27 Thereafter Debt Maturities in Millions ($) W E L L L A D D E R E D D E B T M AT U R I T Y S C H E D U L E Debt Maturity Schedule 1, Unsecured Debt & Unamortized Premiums Secured Debt Weighted Average Interest Rate 3.8% 3.2% 3.2% 5.4% 4.2% 5.0% 4.3% 3.7% 3.6% 4.0% 3.5% 1.3% % of Total Debt Maturing/Year 0.3% 7.6% 10.9% 6.2% 12.2% 13.1% 10.3% 5.6% 11.3% 7.9% 9.7% 4.9% As of 9/30/

28 G U I D A N C E 2015 Revised Midpoint Since Q Guidance (1) Since Initial Q Guidance (1) National GDP Forecast 2.8% 0.0% 0.0% National Job Growth 2.0% 0.0% 0.0% ESS Job Growth 2.8% 0.0% 0.3% ESS Market Rent Growth 6.5% 0.0% 0.9% ESS Same-Property Revenue Growth 7.9% 0.0% 1.2% ESS Same-Property Expense Growth 2.0% -0.25% -1.0% ESS Same-Property NOI Growth 10.6% 0.1% 2.1% Total FFO Per Share $9.65 $0.09 $0.37 Core FFO Per Share (2) $9.74 $0.10 $0.34 Total FFO Per (Diluted) Share Growth 22.3% 1.1% 4.8% Core FFO Per (Diluted) Share Growth (2) 14.1% 1.2% 4.0% Source: Company Disclosures (1) Represents change at the midpoint. (2) Core FFO excludes merger related costs, acquisition costs and non-routine items. 28

29 APPENDIX

30 N O R T H E R N C A L I F O R N I A P O R T F O L I O NORTHERN CALIFORNIA HIGHLIGHTS Northern CA Totals Both San Francisco and San Jose have seen strong trailing three month job growth as of September of 4.6% and 5.5%, respectively. As of September 2015, the Information sector in San Jose has averaged 15.0% YOY growth over the past 12 months. YTD as of September 2015, office absorption in Silicon Valley was 2.1M sf, or 3.2% of stock, with an additional 4.4M sf under construction (more than 40% of which is pre-leased). YTD as of September 2015, absorption in the San Francisco MD was 1.5M sf, or 2.2% of stock, with 3.1M sf under construction. Units 19,237 Properties 72 Pro rata % of NOI 39.9% SS Occupancy 96.3% Market Data US San Francisco San Jose Trailing 3 Month Job Growth Personal Income Growth 2015F 2.1% 4.6% 5.5% 3.6% 4.6% 6.5% Median Home Price (1) $230,000 $1,170,000 $940,000 Source: Axiometrics, Moody's, RCG, SNL, BLS, Census and ESS Disclosures as of September 30, Trailing 3 months beginning September (1) Home Prices as of September US uses NAR 2Q15. 30

31 L O S A N G E L E S P O R T F O L I O LOS ANGELES HIGHLIGHTS Job growth in Los Angeles was 2.1% for the trailing three month period beginning in September. The largest gains in September were reported from the Education and Health Services Sector and Leisure and Hospitality. YTD as of September 2015, nearly 850,000 sf of office space has been absorbed by the market, or 0.4% of stock. Market Data US Los Angeles Trailing 3 Month Job Growth Personal Income Growth 2015F 2.1% 2.1% 3.6% 5.0% Median Home Price (1) $230,000 $460,000 Los Angeles Totals Units 10,863 Properties 52 Pro rata % of NOI 18.8% SS Occupancy 95.7% Source: Axiometrics, Core Logic, JLL US Office Report Q2 2015, Moody's, RCG, SNL, BLS, Census and ESS Disclosures as of September 30, Trailing 3 months beginning September (1) Home prices as of September Home prices in Los Angeles represent the entire county and not ESS submarkets, which have a median home price of $675,000 as of July US uses NAR 2Q15. 31

32 O R A N G E C O U N T Y P O R T F O L I O ORANGE COUNTY HIGHLIGHTS Orange County had job growth of 3.3% for the trailing three month period beginning September Education and Health Services and Leisure and Hospitality were the industries leading the job growth in September. Orange County has absorbed 1.3M sf of office space YTD with nearly 600,000 sf under construction. Market Data US Orange County Trailing 3 Month Job Growth Personal Income Growth 2015F 2.1% 3.3% 3.6% 4.7% Median Home Price (1) $230,000 $700,000 Orange County Totals Units 6,930 Properties 28 Pro rata % of NOI 11.0% SS Occupancy 96.2% Source: Axiometrics, Moody's, RCG, SNL, BLS, Census and ESS Disclosures as of September 30, Trailing 3 months beginning September (1) Home Prices as of September US uses NAR 2Q15. 32

33 S E AT T L E P O R T F O L I O Seattle Totals Units 12,197 Properties 56 Pro rata % of NOI 16.6% SS Occupancy 96.1% SEATTLE HIGHLIGHTS Seattle continues to demonstrate strong job growth with 3.4% for the trailing three months beginning in September. Trade, Transportation and Utilities accounted for 26% of net jobs added in September, while Professional and Business Services accounted for 19%. Approximately 6M sf of office space is under construction, with approximately 40% pre-leased. Market Data US Seattle Trailing 3 Month Job Growth Personal Income Growth 2015F 2.1% 3.4% 3.6% 5.7% Median Home Price (1) $230,000 $410,000 Source: Axiometrics, Moody's, RCG, SNL, BLS, Census and ESS Disclosures as of September 30, Trailing 3 months beginning September (1) Home Prices as of September US uses NAR 2Q15. 33

34 P R E L I M I N A R Y M S A F O R E C A S T E S S E X P R O P E R T Y T R U S T, I N C. Preliminary 2016 MSA Level Forecast: Supply, Jobs, and Apartment Market Conditions Market New MF Supply New SF Supply Residential Supply (1) Job Forecast (2) Market Forecast (3) % of MF Supply % of Total Supply Est. New Jobs Economic Rent Total Supply % Growth to MF Stock to Total Stock Dec-Dec Growth Los Angeles 10,000 5,700 15, % 0.4% 94, % 5.4% Orange 2,850 3,800 6, % 0.6% 33, % 5.2% San Diego 3,300 3,800 7, % 0.6% 34, % 4.9% Ventura % 0.3% 5, % 5.4% So. Cal. 16,300 14,000 30, % 0.5% 168, % 5.2% San Francisco 4, , % 0.7% 34, % 7.8% Oakland 1,600 4,300 5, % 0.6% 29, % 7.0% San Jose 5,250 2,100 7, % 1.1% 31, % 7.7% No. Cal. 11,250 7,050 18, % 0.8% 95, % 7.5% Seattle 8,450 7,600 16, % 1.3% 43, % 4.9% Weighted Average (4) 36,000 28,650 64, % 0.8% 306, % 6.0% All data are based on Essex Property Trust, Inc. forecasts. U.S. Economic Assumptions: 2016 G.D.P. Growth: 2.8%, 2016 Job Growth: 2.0% (1) New Residential Supply: MF reflects Company's internal estimate of actual multifamily deliveries; SF is based on 12 month single family trailing permits reported by the US Census Bureau. (2) Job Forecast: refers to the difference between total non-farm industry employment (not seasonally adjusted) projected through full year 2016 vs 2015, expressed as total new jobs and growth rates. (3) Market Forecast: the estimated rent growth represents the forecasted change in effective market rents for full year 2016 vs 2015 (excludes submarkets not targeted by Essex). (4) Weighted Average: markets weighted by scheduled rent in the Company's Portfolio. 34