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Related Companies Essex Property Trust Inc. (ESS)

Related Documents Earnings Release (ER) Essex Property Trust Inc. 9/30/2009, filed on 11/3/2009

Related Articles 11/3/2009 Essex reports Q3 results

Essex Property Trust Inc. detailed its 2009 third-quarter disposition and development activity in its earnings release issued Nov. 3.

During the third quarter, the company sold Spring Lake, a 69-unit community in Seattle, for $5.7 million.

The company said it completed development on the 119-unit community Cielo in Chatsworth, Calif., owned by Essex Apartment Value Fund II LP, in July. The community is 62% leased, and stabilized operations are expected by the first quarter of 2010.

Studio 40-41, a 149-unit property owned by Essex Apartment Value Fund II in Studio City, Calif., is 88% leased, the company said.

During the quarter, framing, exterior masonry and roof construction were under way at Joule Broadway, a 295-unit development in the Capital Hill neighborhood of Seattle. The community will include 29,100 square feet of ground floor retail. Construction is expected to be completed in September 2010 and stabilized operations in May 2011.

Additionally, the company ceased further development efforts and recorded impairment charges totaling $6.7 million related to two land parcels, Citiplace in San Diego and View Pointe in Newcastle, Wash.

In the third quarter, the company completed the exterior renovation of its 388-unit Foothill Commons community near downtown Bellevue, Wash. Also, the company completed and leased 28 newly constructed apartment homes. The total cost of the Foothill Commons project, including the addition of 28 new apartment homes and apartment interior renovation, is expected to be $36.3 million, of which $19.7 million has been expended.

Also in the third quarter, the company completed the first phase of its redevelopment of Highridge Apartments, a 255-unit apartment community in Ranchos Palos Verdes, Calif.

During the quarter, the company repurchased $81.9 million of its series G cumulative convertible preferred stock at a $23.9 million discount to its carrying value. In 2009, the company repurchased substantially all the series G stock at a $49.6 million discount to its carrying value.

Further, the company said it elected to cancel the outperformance plan for senior officers and nonemployee directors and wrote off $3.8 million in unamortized costs related to the plan.

During the quarter, the company obtained a fixed-rate mortgage loan secured by Huntington Breakers totaling $40.5 million at a fixed rate of 5.4%. It matures in October 2019. Also, the company paid off a $5.6 million mortgage loan secured by Mt. Sutro at a fixed rate of 7.7%.