|
|
|
|
|
|
(State or Other Jurisdiction of Incorporation)
|
(I.R.S. Employer Identification No.)
|
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
|
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
|
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
|
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
|
Title of each class
|
Trading
Symbol(s)
|
Name of each exchange on which registered
|
||
Essex Property Trust, Inc.
|
Emerging growth company
|
|
Essex Portfolio, L.P.
|
Emerging growth company
|
|
Item 2.02. |
Results of Operations and Financial Condition.
|
Item 9.01. |
Financial Statements and Exhibits.
|
Exhibit No.
|
Description
|
|
Press Release and Supplemental Information for the three months ended March 31, 2023.
|
||
104
|
Cover Page Interactive Data File - the cover page XBRL tags are embedded within the Inline XBRL document.
|
Date: April 27, 2023
|
ESSEX PROPERTY TRUST, INC.
|
|
/s/ Barbara Pak
|
||
Name:
|
Barbara Pak
|
|
Title:
|
Executive Vice President and Chief Financial Officer
|
|
ESSEX PORTFOLIO, L.P.
|
||
By:
|
Essex Property Trust, Inc.
|
|
Its:
|
General Partner
|
|
/s/ Barbara Pak
|
||
Name:
|
Barbara Pak
|
|
Title:
|
Executive Vice President and Chief Financial Officer
|
Earnings Press Release
|
Pages 1 - 9
|
Consolidated Operating Results
|
S-1 & S-2
|
Consolidated Funds from Operations
|
S-3
|
Consolidated Balance Sheets
|
S-4
|
Debt Summary
|
S-5
|
Capitalization Data, Public Bond Covenants, Credit Ratings, and Selected Credit Ratios
|
S-6
|
Portfolio Summary by County
|
S-7
|
Operating Income by Quarter
|
S-8
|
Same-Property Revenue Results by County, Quarter-to-Date
|
S-9
|
Same-Property Operating Expenses, Quarter-to-Date
|
S-10
|
Development Pipeline
|
S-11
|
Capital Expenditures
|
S-12
|
Co-Investments and Preferred Equity Investments
|
S-13
|
Assumptions for 2023 FFO Guidance Range
|
S-14
|
Reconciliation of Projected EPS, FFO and Core FFO per diluted share
|
S-14.1
|
Summary of Apartment Community Acquisitions and Dispositions Activity
|
S-15
|
Delinquencies, Operating Statistics, and Same-Property Revenue Growth on a GAAP basis
|
S-16
|
2023 MSA Level Forecast: Supply, Jobs, and Apartment Market Conditions
|
S-17
|
Reconciliations of Non-GAAP Financial Measures and Other Terms
|
S-18.1 – S-18.4
|
Three Months Ended
March 31,
|
%
|
|||||||||||
2023
|
2022
|
Change
|
||||||||||
Per Diluted Share
|
||||||||||||
Net Income
|
$2.38
|
$1.12
|
112.5%
|
|||||||||
Total FFO
|
$3.80
|
$3.36
|
13.1%
|
|||||||||
Core FFO
|
$3.65
|
$3.37
|
8.3%
|
• |
Reported Net Income per diluted share for the first quarter of 2023 of $2.38, compared to $1.12 in the first quarter of 2022. The increase is largely attributable to the gain on
sale of real estate and land recognized in the first quarter of 2023.
|
• |
Grew Core FFO per diluted share by 8.3% compared to the first quarter of 2022, exceeding the midpoint of the guidance range by $0.08 primarily due to favorable same-property
revenues.
|
• |
Achieved same-property revenue and net operating income (“NOI”) growth of 7.6% and 9.2%, respectively, compared to the first quarter of 2022.
|
• |
Sold one apartment community in a non-core market for a total contract price of $91.7 million.
|
• |
Repurchased 437,026 shares of common stock in the first quarter, totaling $95.7 million, including commissions, at an average price per share of $218.88.
|
• |
Increased the dividend by 5.0% to an annual distribution of $9.24 per common share, the Company’s 29th consecutive annual increase.
|
• |
Increased full-year Net Income per diluted share guidance by $0.98 at the midpoint to a range of $6.36 to $6.74.
|
• |
Increased full-year Core FFO per diluted share guidance by $0.03 at the midpoint to a range of $14.59 to $14.97.
|
• |
Reaffirmed full-year guidance ranges for same-property revenue, expense, and NOI growth.
|
Q1 2023 vs.
Q1 2022
|
Q1 2023 vs.
Q4 2022
|
% of
Total
|
||||||||||
Revenue
Change
|
Revenue
Change
|
Q1 2023 Revenues
|
||||||||||
Southern California
|
||||||||||||
Los Angeles County
|
5.2%
|
-1.7%
|
18.7%
|
|||||||||
Orange County
|
10.2%
|
-0.5%
|
10.5%
|
|||||||||
San Diego County
|
10.5%
|
2.2%
|
8.8%
|
|||||||||
Ventura County
|
11.4%
|
1.7%
|
4.0%
|
|||||||||
Total Southern California
|
8.1%
|
-0.3%
|
42.0%
|
|||||||||
Northern California
|
||||||||||||
Santa Clara County
|
8.2%
|
0.8%
|
19.6%
|
|||||||||
Alameda County
|
3.8%
|
0.7%
|
7.9%
|
|||||||||
San Mateo County
|
6.4%
|
-0.3%
|
4.5%
|
|||||||||
Contra Costa County
|
6.8%
|
-0.1%
|
5.4%
|
|||||||||
San Francisco
|
1.4%
|
-1.4%
|
2.6%
|
|||||||||
Total Northern California
|
6.4%
|
0.4%
|
40.0%
|
|||||||||
Seattle Metro
|
9.1%
|
-0.4%
|
18.0%
|
|||||||||
Same-Property Portfolio
|
7.6%
|
0.0%
|
100.0%
|
Same-Property Revenue Components
|
Q1 2023
vs. Q1 2022
|
Q1 2023
vs. Q4 2022
|
||||||
Scheduled Rents
|
6.8%
|
0.3%
|
||||||
Delinquencies
|
-0.1%
|
-0.9%
|
||||||
Cash Concessions
|
0.3%
|
0.3%
|
||||||
Vacancy
|
0.2%
|
0.7%
|
||||||
Other Income
|
0.4%
|
-0.4%
|
||||||
Q1 2023 Same-Property Revenue Growth
|
7.6%
|
0.0%
|
Year-Over-Year Change
|
||||||||||||
Q1 2023 compared to Q1 2022
|
||||||||||||
Revenues
|
Operating
Expenses
|
NOI
|
||||||||||
Southern California
|
8.1%
|
|
9.2%
|
7.6%
|
||||||||
Northern California
|
6.4%
|
2.4%
|
8.2%
|
|||||||||
Seattle Metro
|
9.1%
|
-3.6%
|
15.2%
|
|||||||||
Same-Property Portfolio
|
7.6%
|
4.0%
|
9.2%
|
Sequential Change
|
||||||||||||
Q1 2023 compared to Q4 2022
|
||||||||||||
Revenues
|
Operating
Expenses
|
NOI
|
||||||||||
Southern California
|
-0.3%
|
6.0%
|
-2.7%
|
|||||||||
Northern California
|
0.4%
|
1.1%
|
0.1%
|
|||||||||
Seattle Metro
|
-0.4%
|
-0.2%
|
-0.4%
|
|||||||||
Same-Property Portfolio
|
0.0%
|
2.9%
|
-1.2%
|
Financial Occupancies
|
||||||||||||
Quarter Ended
|
||||||||||||
3/31/2023
|
12/31/2022
|
3/31/2022
|
||||||||||
Southern California
|
96.8%
|
96.4%
|
96.3%
|
|||||||||
Northern California
|
96.6%
|
95.8%
|
96.4%
|
|||||||||
Seattle Metro
|
96.6%
|
95.8%
|
95.9%
|
|||||||||
Same-Property Portfolio
|
96.7%
|
96.0%
|
96.3%
|
Per Diluted
Share
|
||||
Guidance midpoint of Core FFO per diluted share for Q1 2023
|
$
|
3.57
|
||
NOI from consolidated communities
|
0.07
|
|||
FFO from Co-Investments
|
0.01
|
|||
Interest Expense (Consolidated) and Other Income
|
0.01
|
|||
G&A
|
(0.02
|
)
|
||
Impact from Weighted Average Shares Outstanding
|
0.01
|
|||
Core FFO per diluted share for Q1 2023 reported
|
$
|
3.65
|
Previous
Range
|
Previous
Midpoint
|
Revised
Range
|
Revised Midpoint
|
Change at the Midpoint
|
||||||||||||||||
Per Diluted Share
|
||||||||||||||||||||
Net Income
|
|
$5.35 - $5.79
|
|
$5.57
|
|
$6.36 - $6.74
|
|
$6.55
|
|
$0.98
|
||||||||||
Total FFO
|
|
$14.53 - $14.97
|
|
$14.75
|
|
$14.74 - $15.12
|
|
$14.93
|
|
$0.18
|
||||||||||
Core FFO
|
|
$14.53 - $14.97
|
|
$14.75
|
|
$14.59 - $14.97
|
|
$14.78
|
|
$0.03
|
||||||||||
Q2 2023 Core FFO
|
-
|
-
|
|
$3.63 - $3.75
|
|
$3.69
|
-
|
|||||||||||||
Same-Property Growth on a Cash-Basis(1)
|
||||||||||||||||||||
Revenues
|
3.25% to 4.75%
|
4.00%
|
|
No Change
|
-
|
-
|
||||||||||||||
Operating Expenses
|
4.50% to 5.50%
|
5.00%
|
|
No Change
|
-
|
-
|
||||||||||||||
NOI
|
2.30% to 4.90%
|
3.60%
|
|
No Change
|
-
|
-
|
||||||||||||||
(1)
|
The midpoint of the Company’s same-property revenues and NOI on a GAAP basis remain unchanged since the Company’s fourth quarter 2022 earnings release at
4.40% and 4.10%, respectively.
|
Three Months Ended
March 31,
|
||||||||
Funds from Operations attributable to common stockholders and unitholders
|
2023
|
2022
|
||||||
Net income available to common stockholders
|
$
|
153,532
|
$
|
73,254
|
||||
Adjustments:
|
||||||||
Depreciation and amortization
|
136,347
|
133,533
|
||||||
Gains on sale of real estate and land not included in FFO
|
(59,238
|
)
|
-
|
|||||
Casualty loss
|
433
|
-
|
||||||
Depreciation and amortization from unconsolidated co-investments
|
17,609
|
18,115
|
||||||
Noncontrolling interest related to Operating Partnership units
|
5,404
|
2,563
|
||||||
Depreciation attributable to third party ownership and other
|
(359
|
)
|
(353
|
)
|
||||
Funds from Operations attributable to common stockholders and unitholders
|
$
|
253,728
|
$
|
227,112
|
||||
FFO per share – diluted
|
$
|
3.80
|
$
|
3.36
|
||||
Expensed acquisition and investment related costs
|
$
|
339
|
$
|
8
|
||||
Deferred tax benefit on unconsolidated co-investments(1)
|
(900
|
)
|
(2,754
|
)
|
||||
Gain on sale of marketable securities
|
(912
|
)
|
(12,171
|
)
|
||||
Change in unrealized (gains) losses on marketable securities, net
|
(368
|
)
|
24,585
|
|||||
Provision for credit losses
|
18
|
(62
|
)
|
|||||
Equity loss from non-core co-investments(2)
|
94
|
8,844
|
||||||
Loss on early retirement of debt from unconsolidated co-investment
|
-
|
86
|
||||||
Co-investment promote income
|
-
|
(17,076
|
)
|
|||||
Income from early redemption of preferred equity investments and notes receivable
|
-
|
(858
|
)
|
|||||
General and administrative and other, net
|
266
|
448
|
||||||
Insurance reimbursements, legal settlements, and other, net
|
(8,504
|
)
|
-
|
|||||
Core Funds from Operations attributable to common stockholders and unitholders
|
$
|
243,761
|
$
|
228,162
|
||||
Core FFO per share – diluted
|
$
|
3.65
|
$
|
3.37
|
||||
Weighted average number of shares outstanding diluted (3)
|
66,725,582
|
67,621,842
|
(1) |
Represents deferred tax benefit related to net unrealized gains or losses on technology co-investments.
|
(2) |
Represents the Company’s share of co-investment loss from technology co-investments.
|
(3) |
Assumes conversion of all outstanding limited partnership units in Essex Portfolio, L.P. (the “Operating Partnership”) into shares of the Company’s common stock
and excludes DownREIT limited partnership units.
|
Three Months Ended
March 31,
|
||||||||
2023
|
2022
|
|||||||
Earnings from operations
|
$
|
187,385
|
$
|
109,850
|
||||
Adjustments:
|
||||||||
Corporate-level property management expenses
|
11,432
|
10,172
|
||||||
Depreciation and amortization
|
136,347
|
133,533
|
||||||
Management and other fees from affiliates
|
(2,765
|
)
|
(2,689
|
)
|
||||
General and administrative
|
15,311
|
12,242
|
||||||
Expensed acquisition and investment related costs
|
339
|
8
|
||||||
Casualty loss
|
433
|
-
|
||||||
Gain on sale of real estate and land
|
(59,238
|
)
|
-
|
|||||
NOI
|
289,244
|
263,116
|
||||||
Less: Non-same property NOI
|
(15,145
|
)
|
(12,088
|
)
|
||||
Same-Property NOI
|
$
|
274,099
|
$
|
251,028
|
Three Months Ended
March 31,
|
||||||||
2023
|
2022
|
|||||||
Revenues:
|
||||||||
Rental and other property
|
$
|
409,656
|
$
|
379,216
|
||||
Management and other fees from affiliates
|
2,765
|
2,689
|
||||||
412,421
|
381,905
|
|||||||
Expenses:
|
||||||||
Property operating
|
120,412
|
116,100
|
||||||
Corporate-level property management expenses
|
11,432
|
10,172
|
||||||
Depreciation and amortization
|
136,347
|
133,533
|
||||||
General and administrative
|
15,311
|
12,242
|
||||||
Expensed acquisition and investment related costs
|
339
|
8
|
||||||
Casualty loss
|
433
|
-
|
||||||
284,274
|
272,055
|
|||||||
Gain on sale of real estate and land
|
59,238
|
-
|
||||||
Earnings from operations
|
187,385
|
109,850
|
||||||
Interest expense, net (1)
|
(50,012
|
)
|
(47,833
|
)
|
||||
Interest and other income (loss)
|
12,450
|
(7,567
|
)
|
|||||
Equity income from co-investments
|
10,871
|
21,171
|
||||||
Deferred tax benefit on unconsolidated co-investments
|
900
|
2,754
|
||||||
Net income
|
161,594
|
78,375
|
||||||
Net income attributable to noncontrolling interest
|
(8,062
|
)
|
(5,121
|
)
|
||||
Net income available to common stockholders
|
$
|
153,532
|
$
|
73,254
|
||||
Net income per share - basic
|
$
|
2.38
|
$
|
1.12
|
||||
Shares used in income per share - basic
|
64,458,535
|
65,275,775
|
||||||
Net income per share - diluted
|
$
|
2.38
|
$
|
1.12
|
||||
Shares used in income per share - diluted
|
64,459,689
|
65,339,378
|
(1) |
Refer to page S-18.2, the section titled "Interest Expense, Net" for additional information.
|
Three Months Ended
March 31,
|
||||||||
2023
|
2022
|
|||||||
Rental and other property
|
||||||||
Rental income
|
$
|
404,635
|
$
|
373,425
|
||||
Other property
|
5,021
|
5,791
|
||||||
Rental and other property
|
$
|
409,656
|
$
|
379,216
|
||||
Property operating expenses
|
||||||||
Real estate taxes
|
$
|
46,530
|
$
|
47,242
|
||||
Administrative
|
22,891
|
22,089
|
||||||
Maintenance and repairs
|
26,757
|
22,964
|
||||||
Utilities
|
24,234
|
23,805
|
||||||
Property operating expenses
|
$
|
120,412
|
$
|
116,100
|
||||
Interest and other income (loss)
|
||||||||
Marketable securities and other income
|
$
|
3,283
|
$
|
4,785
|
||||
Gain on sale of marketable securities
|
912
|
12,171
|
||||||
Provision for credit losses
|
(18
|
)
|
62
|
|||||
Change in unrealized gains (losses) on marketable securities, net
|
368
|
(24,585
|
)
|
|||||
Insurance reimbursements, legal settlements, and other, net
|
7,905
|
-
|
||||||
Interest and other income (loss)
|
$
|
12,450
|
$
|
(7,567
|
)
|
|||
Equity income from co-investments
|
||||||||
Equity loss from co-investments
|
$
|
(2,951
|
)
|
$
|
(1,332
|
)
|
||
Income from preferred equity investments
|
13,317
|
13,499
|
||||||
Equity loss from non-core co-investments
|
(94
|
)
|
(8,844
|
)
|
||||
Insurance reimbursements, legal settlements, and other, net
|
599
|
-
|
||||||
Loss on early retirement of debt from unconsolidated co-investments
|
-
|
(86
|
)
|
|||||
Co-investment promote income
|
-
|
17,076
|
||||||
Income from early redemption of preferred equity investments
|
-
|
858
|
||||||
Equity income from co-investments
|
$
|
10,871
|
$
|
21,171
|
||||
|
||||||||
Noncontrolling interest
|
||||||||
Limited partners of Essex Portfolio, L.P.
|
$
|
5,404
|
$
|
2,563
|
||||
DownREIT limited partners' distributions
|
2,168
|
2,154
|
||||||
Third-party ownership interest
|
490
|
404
|
||||||
Noncontrolling interest
|
$
|
8,062
|
$
|
5,121
|
Three Months Ended
March 31,
|
||||||||||||
2023
|
2022
|
% Change
|
||||||||||
Funds from operations attributable to common stockholders and unitholders (FFO)
|
||||||||||||
Net income available to common stockholders
|
$
|
153,532
|
$
|
73,254
|
||||||||
Adjustments:
|
||||||||||||
Depreciation and amortization
|
136,347
|
133,533
|
||||||||||
Gains on sale of real estate and land not included in FFO
|
(59,238
|
)
|
-
|
|||||||||
Casualty loss
|
433
|
-
|
||||||||||
Depreciation and amortization from unconsolidated co-investments
|
17,609
|
18,115
|
||||||||||
Noncontrolling interest related to Operating Partnership units
|
5,404
|
2,563
|
||||||||||
Depreciation attributable to third party ownership and other (2)
|
(359
|
)
|
(353
|
)
|
||||||||
Funds from operations attributable to common stockholders and unitholders
|
$
|
253,728
|
$
|
227,112
|
||||||||
FFO per share-diluted
|
$
|
3.80
|
$
|
3.36
|
13.1%
|
|
||||||
Components of the change in FFO
|
||||||||||||
Non-core items:
|
||||||||||||
Expensed acquisition and investment related costs
|
$
|
339
|
$
|
8
|
||||||||
Deferred tax benefit on unconsolidated co-investments (3)
|
(900
|
)
|
(2,754
|
)
|
||||||||
Gain on sale of marketable securities
|
(912
|
)
|
(12,171
|
)
|
||||||||
Change in unrealized (gains) losses on marketable securities, net
|
(368
|
)
|
24,585
|
|||||||||
Provision for credit losses
|
18
|
(62
|
)
|
|||||||||
Equity loss from non-core co-investments (4)
|
94
|
8,844
|
||||||||||
Loss on early retirement of debt from unconsolidated co-investments
|
-
|
86
|
||||||||||
Co-investment promote income
|
-
|
(17,076
|
)
|
|||||||||
Income from early redemption of preferred equity investments and notes receivable
|
-
|
(858
|
)
|
|||||||||
General and administrative and other, net
|
266
|
448
|
||||||||||
Insurance reimbursements, legal settlements, and other, net
|
(8,504
|
)
|
-
|
|||||||||
Core funds from operations attributable to common stockholders and unitholders
|
$
|
243,761
|
$
|
228,162
|
||||||||
Core FFO per share-diluted
|
$
|
3.65
|
$
|
3.37
|
8.3%
|
|
||||||
Weighted average number of shares outstanding diluted (5)
|
66,725,582
|
67,621,842
|
(1) |
Refer to page S-18.2, the section titled "Funds from Operations ("FFO") and Core FFO" for additional information on the Company's definition and use of FFO and Core FFO.
|
(2) |
The Company consolidates certain co-investments. The noncontrolling interest's share of net operating income in these investments for the three months ended March 31, 2023 was $0.8
million.
|
(3) |
Represents deferred tax benefit related to net unrealized gains or losses on technology co-investments.
|
(4) |
Represents the Company's share of co-investment loss from technology co-investments.
|
(5) |
Assumes conversion of all outstanding limited partnership units in the Operating Partnership into shares of the Company's common stock and excludes DownREIT limited partnership
units.
|
March 31, 2023
|
December 31, 2022
|
|||||||
Real Estate:
|
||||||||
Land and land improvements
|
$
|
3,031,415
|
$
|
3,043,321
|
||||
Buildings and improvements
|
12,910,492
|
12,922,906
|
||||||
|
15,941,907
|
15,966,227
|
||||||
Less: accumulated depreciation
|
(5,254,874
|
)
|
(5,152,133
|
)
|
||||
10,687,033
|
10,814,094
|
|||||||
Real estate under development
|
21,909
|
24,857
|
||||||
Co-investments
|
1,131,183
|
1,127,491
|
||||||
11,840,125
|
11,966,442
|
|||||||
Cash and cash equivalents, including restricted cash
|
77,158
|
42,681
|
||||||
Marketable securities
|
107,002
|
112,743
|
||||||
Notes and other receivables
|
120,586
|
103,045
|
||||||
Operating lease right-of-use assets
|
66,373
|
67,239
|
||||||
Prepaid expenses and other assets
|
68,530
|
80,755
|
||||||
Total assets
|
$
|
12,279,774
|
$
|
12,372,905
|
||||
Unsecured debt, net
|
$
|
5,313,701
|
$
|
5,312,168
|
||||
Mortgage notes payable, net
|
593,147
|
593,943
|
||||||
Lines of credit
|
457
|
52,073
|
||||||
Distributions in excess of investments in co-investments
|
50,309
|
42,532
|
||||||
Operating lease liabilities
|
67,772
|
68,696
|
||||||
Other liabilities
|
427,323
|
381,227
|
||||||
Total liabilities
|
6,452,709
|
6,450,639
|
||||||
Redeemable noncontrolling interest
|
30,208
|
27,150
|
||||||
Equity:
|
||||||||
Common stock
|
6
|
6
|
||||||
Additional paid-in capital
|
6,657,183
|
6,750,076
|
||||||
Distributions in excess of accumulated earnings
|
(1,074,930
|
)
|
(1,080,176
|
)
|
||||
Accumulated other comprehensive income, net
|
36,522
|
46,466
|
||||||
Total stockholders' equity
|
5,618,781
|
5,716,372
|
||||||
Noncontrolling interest
|
178,076
|
178,744
|
||||||
Total equity
|
5,796,857
|
5,895,116
|
||||||
Total liabilities and equity
|
$
|
12,279,774
|
$
|
12,372,905
|
Scheduled principal payments, unamortized premiums (discounts) and (debt issuance costs) are as follows - excludes lines of credit:
|
|||||||||||||||||||||||||||||||||||
Unsecured
|
Secured
|
Total
|
Weighted
Average
Interest
Rate
|
Percentage
of Total
Debt
|
|||||||||||||||||||||||||||||||
Weighted Average
|
|||||||||||||||||||||||||||||||||||
Balance
Outstanding
|
Interest
Rate
|
Maturity
in Years
|
|||||||||||||||||||||||||||||||||
Unsecured Debt, net
|
|||||||||||||||||||||||||||||||||||
Bonds public - fixed rate
|
$
|
5,350,000
|
3.3
|
%
|
7.4
|
2023 (4)
|
|
$
|
300,000
|
$
|
2,223
|
$
|
302,223
|
3.4
|
%
|
5.1
|
%
|
||||||||||||||||||
Unamortized discounts and debt issuance costs, net
|
(36,299
|
) |
-
|
-
|
2024
|
400,000
|
3,109
|
403,109
|
4.0
|
%
|
6.8
|
%
|
|||||||||||||||||||||||
Total unsecured debt, net
|
5,313,701
|
|
3.3 | % |
7.4
|
2025
|
500,000
|
133,054
|
633,054
|
3.5
|
%
|
10.7
|
%
|
||||||||||||||||||||||
|
|
|
|
|
2026
|
450,000
|
99,405
|
549,405
|
3.5
|
%
|
9.2
|
%
|
|||||||||||||||||||||||
Mortgage Notes Payable, net
|
2027
|
350,000
|
153,955
|
503,955
|
3.8
|
%
|
8.5
|
%
|
|||||||||||||||||||||||||||
Fixed rate - secured
|
370,638
|
3.6
|
%
|
3.5
|
2028
|
450,000
|
68,332
|
518,332
|
2.2
|
%
|
8.7
|
%
|
|||||||||||||||||||||||
Variable rate - secured (1)
|
223,377
|
3.8
|
%
|
14.9
|
2029
|
500,000
|
1,456
|
501,456
|
4.1
|
%
|
8.4
|
%
|
|||||||||||||||||||||||
Unamortized premiums and debt issuance costs, net
|
(868 |
) |
- | - |
2030
|
550,000
|
1,592
|
551,592
|
3.1
|
%
|
9.3
|
%
|
|||||||||||||||||||||||
Total mortgage notes payable, net
|
593,147
|
|
3.7
|
% |
7.8
|
2031
|
600,000
|
1,740
|
601,740
|
2.3
|
%
|
10.1
|
%
|
||||||||||||||||||||||
|
|
|
|
|
2032
|
650,000
|
1,903
|
651,903
|
2.6
|
%
|
11.0
|
%
|
|||||||||||||||||||||||
Unsecured Lines of Credit
|
2033
|
-
|
32,126
|
32,126
|
3.6
|
%
|
0.5
|
%
|
|||||||||||||||||||||||||||
Line of credit (2)
|
-
|
5.3
|
%
|
N/A
|
Thereafter
|
600,000
|
95,120
|
695,120
|
3.7
|
%
|
11.7
|
%
|
|||||||||||||||||||||||
Line of credit (3)
|
457
|
5.3
|
%
|
N/A
|
Subtotal
|
5,350,000
|
594,015
|
5,944,015
|
3.3
|
%
|
100.0
|
%
|
|||||||||||||||||||||||
Total lines of credit
|
457
|
5.3
|
%
|
N/A
|
Debt Issuance Costs
|
(28,875
|
)
|
(1,911
|
)
|
(30,786
|
)
|
N/A
|
N/A
|
||||||||||||||||||||||
|
(Discounts)/Premiums
|
(7,424
|
)
|
1,043
|
(6,381
|
)
|
N/A
|
N/A
|
|||||||||||||||||||||||||||
Total debt, net
|
$
|
5,907,305
|
3.3
|
%
|
7.5
|
Total
|
$
|
5,313,701
|
$
|
593,147
|
$
|
5,906,848
|
3.3
|
%
|
100.0
|
%
|
|||||||||||||||||||
(1) |
$223.4 million of variable rate debt is tax exempt to the note holders.
|
(2) |
This unsecured line of credit facility has a capacity of $1.2 billion, a scheduled maturity date in January 2027 and two 6-month extension options, exercisable at the Company’s
option. The underlying interest rate on this line is Adjusted SOFR plus 0.75%, which is based on a tiered rate structure tied to the Company's corporate ratings and further adjusted by the facility's Sustainability Metric Grid.
|
(3) |
This unsecured line of credit facility has a capacity of $35 million and a scheduled maturity date in July 2024. The underlying interest rate on this line is Adjusted SOFR plus
0.75%, which is based on a tiered rate structure tied to the Company's corporate ratings and further adjusted by the facility's Sustainability Metric Grid.
|
(4) |
In October 2022, the Company obtained a new $300.0 million unsecured term loan priced at Adjusted SOFR plus 0.85%. The loan has been swapped to an all-in fixed rate of 4.2% and
matures in October 2024 with three 12-month extension options, exercisable at the Company’s option. The loan includes a 6-month delayed draw feature and the proceeds were drawn in April 2023 and are expected to be used to repay the
Company’s $300.0 million unsecured notes due in May 2023. As a result, the Company currently anticipates no refinancing needs until 2024.
|
Capitalization Data
|
Public Bond Covenants (1)
|
Actual
|
Requirement
|
|||||||||
Total debt, net
|
$
|
5,907,305
|
||||||||||
Common stock and potentially dilutive securities
|
Debt to Total Assets:
|
34%
|
< 65%
|
|||||||||
Common stock outstanding
|
64,182
|
|||||||||||
Limited partnership units (1)
|
2,261
|
Secured Debt to Total Assets:
|
3%
|
< 40%
|
||||||||
Options-treasury method
|
1
|
|||||||||||
Total shares of common stock and potentially dilutive securities
|
66,444
|
Interest Coverage:
|
585%
|
> 150%
|
||||||||
Common stock price per share as of March 31, 2023
|
$
|
209.14
|
Unsecured Debt Ratio (2):
|
289%
|
> 150%
|
|||||||
Total equity capitalization
|
$
|
13,896,098
|
|
|
||||||||
Total market capitalization
|
$
|
19,803,403
|
Selected Credit Ratios (3)
|
Actual | ||||||||
|
|
|||||||||||
Ratio of debt to total market capitalization
|
29.8
|
%
|
Net Indebtedness Divided by Adjusted EBITDAre, normalized and annualized: | 5.7 | ||||||||
Credit Ratings
|
Unencumbered NOI to Adjusted Total NOI:
|
95%
|
|
|||||||||
Rating Agency
|
Rating
|
Outlook
|
||||||||||
Moody's
|
Baa1
|
Stable
|
(1) Refer to page S-18.4 for additional information on the Company's Public Bond Covenants.
|
|||||||||
Standard & Poor's
|
BBB+
|
Stable
|
(2) Unsecured Debt Ratio is unsecured assets (excluding investments in co-investments) divided by
unsecured indebtedness.
|
|||||||||
(1) Assumes conversion of all outstanding limited partnership units in the Operating Partnership into
shares of the Company's common stock.
|
(3) Refer to pages S-18.1 to S-18.4, the section titled "Reconciliations of Non-GAAP Financial
Measures and Other Terms" for additional information on the Company's Selected Credit Ratios.
|
|||||||||||
Apartment Homes
|
Average Monthly Rental Rate (1)
|
Percent of NOI (2)
|
||||||||||||||||||||||||||||||||||||||
Region - County
|
Consolidated
|
Unconsolidated
Co-investments
|
Apartment
Homes in
Development (3)
|
Total
|
Consolidated
|
Unconsolidated
Co-investments (4)
|
Total (5)
|
Consolidated
|
Unconsolidated
Co-investments (4)
|
Total (5)
|
||||||||||||||||||||||||||||||
Southern California
|
||||||||||||||||||||||||||||||||||||||||
Los Angeles County
|
9,538
|
1,586
|
-
|
11,124
|
$
|
2,642
|
$
|
2,532
|
$
|
2,632
|
17.3
|
%
|
14.5
|
%
|
17.1
|
%
|
||||||||||||||||||||||||
Orange County
|
5,189
|
1,149
|
-
|
6,338
|
2,638
|
2,351
|
2,609
|
10.4
|
%
|
10.3
|
%
|
10.4
|
%
|
|||||||||||||||||||||||||||
San Diego County
|
4,824
|
795
|
264
|
5,883
|
2,462
|
2,428
|
2,459
|
9.5
|
%
|
7.4
|
%
|
9.3
|
%
|
|||||||||||||||||||||||||||
Ventura County and Other
|
2,362
|
693
|
-
|
3,055
|
2,248
|
2,622
|
2,300
|
4.4
|
%
|
7.4
|
%
|
4.6
|
%
|
|||||||||||||||||||||||||||
Total Southern California
|
21,913
|
4,223
|
264
|
26,400
|
2,559
|
2,483
|
2,552
|
41.6
|
%
|
39.6
|
%
|
41.4
|
%
|
|||||||||||||||||||||||||||
Northern California
|
||||||||||||||||||||||||||||||||||||||||
Santa Clara County (6)
|
8,749
|
1,774
|
-
|
10,523
|
2,929
|
2,891
|
2,925
|
20.0
|
%
|
17.6
|
%
|
19.8
|
%
|
|||||||||||||||||||||||||||
Alameda County
|
3,959
|
1,512
|
-
|
5,471
|
2,592
|
2,563
|
2,587
|
7.4
|
%
|
16.4
|
%
|
8.2
|
%
|
|||||||||||||||||||||||||||
San Mateo County
|
2,561
|
195
|
-
|
2,756
|
3,029
|
3,623
|
3,051
|
5.4
|
%
|
1.8
|
%
|
5.1
|
%
|
|||||||||||||||||||||||||||
Contra Costa County
|
2,619
|
-
|
-
|
2,619
|
2,642
|
-
|
2,642
|
5.4
|
%
|
0.0
|
%
|
4.9
|
%
|
|||||||||||||||||||||||||||
San Francisco
|
1,357
|
537
|
-
|
1,894
|
2,859
|
3,323
|
2,936
|
2.5
|
%
|
6.1
|
%
|
2.8
|
%
|
|||||||||||||||||||||||||||
Total Northern California
|
19,245
|
4,018
|
-
|
23,263
|
2,829
|
2,848
|
2,831
|
40.7
|
%
|
41.9
|
%
|
40.8
|
%
|
|||||||||||||||||||||||||||
Seattle Metro
|
10,341
|
2,184
|
-
|
12,525
|
2,157
|
2,071
|
2,148
|
17.7
|
%
|
18.5
|
%
|
17.8
|
%
|
|||||||||||||||||||||||||||
Total
|
51,499
|
10,425
|
264
|
62,188
|
$
|
2,579
|
$
|
2,537
|
$
|
2,575
|
100.0
|
%
|
100.0
|
%
|
100.0
|
%
|
(1) |
Average monthly rental rate is defined as the total scheduled monthly rental income (actual rent for occupied apartment homes plus market rent for vacant apartment homes) for the
quarter ended March 31, 2023, divided by the number of apartment homes as of March 31, 2023.
|
(2) |
Represents the percentage of actual NOI for the quarter ended March 31, 2023. See the section titled "Net Operating Income ("NOI") and Same-Property NOI Reconciliations" on page
S-18.3.
|
(3) |
Includes development communities with no rental income.
|
(4) |
Co-investment amounts weighted for Company's pro rata share.
|
(5) |
At Company's pro rata share.
|
(6) |
Includes all communities in Santa Clara County and one community in Santa Cruz County.
|
Apartment Homes
|
Q1 '23
|
Q4 '22
|
Q3 '22
|
Q2 '22
|
Q1 '22
|
|||||||||||||||||||
Rental and other property revenues:
|
||||||||||||||||||||||||
Same-property
|
50,064
|
$
|
388,895
|
$
|
389,016
|
$
|
386,200
|
$
|
378,874
|
$
|
361,415
|
|||||||||||||
Acquisitions (2)
|
211
|
1,021
|
886
|
675
|
-
|
-
|
||||||||||||||||||
Development (3)
|
599
|
5,500
|
5,417
|
5,410
|
5,371
|
4,227
|
||||||||||||||||||
Redevelopment
|
179
|
1,537
|
1,418
|
1,422
|
1,491
|
1,435
|
||||||||||||||||||
Non-residential/other, net (4)
|
446
|
12,127
|
13,573
|
14,783
|
14,597
|
15,023
|
||||||||||||||||||
Straight-line rent concessions (5)
|
-
|
576
|
2,047
|
(1,628
|
)
|
(3,093
|
)
|
(2,884
|
)
|
|||||||||||||||
Total rental and other property revenues
|
51,499
|
409,656
|
412,357
|
406,862
|
397,240
|
379,216
|
||||||||||||||||||
Property operating expenses:
|
||||||||||||||||||||||||
Same-property
|
114,796
|
111,568
|
113,489
|
107,713
|
110,387
|
|||||||||||||||||||
Acquisitions (2)
|
430
|
536
|
288
|
-
|
-
|
|||||||||||||||||||
Development (3)
|
2,316
|
2,360
|
2,336
|
2,139
|
1,933
|
|||||||||||||||||||
Redevelopment
|
788
|
654
|
662
|
600
|
687
|
|||||||||||||||||||
Non-residential/other, net (4) (6)
|
2,082
|
2,488
|
3,268
|
3,068
|
3,093
|
|||||||||||||||||||
Total property operating expenses
|
120,412
|
117,606
|
120,043
|
113,520
|
116,100
|
|||||||||||||||||||
Net operating income (NOI):
|
||||||||||||||||||||||||
Same-property
|
274,099
|
277,448
|
272,711
|
271,161
|
251,028
|
|||||||||||||||||||
Acquisitions (2)
|
591
|
350
|
387
|
-
|
-
|
|||||||||||||||||||
Development (3)
|
3,184
|
3,057
|
3,074
|
3,232
|
2,294
|
|||||||||||||||||||
Redevelopment
|
749
|
764
|
760
|
891
|
748
|
|||||||||||||||||||
Non-residential/other, net (4)
|
10,045
|
11,085
|
11,515
|
11,529
|
11,930
|
|||||||||||||||||||
Straight-line rent concessions (5)
|
576
|
2,047
|
(1,628
|
)
|
(3,093
|
)
|
(2,884
|
)
|
||||||||||||||||
Total NOI
|
$
|
289,244
|
$
|
294,751
|
$
|
286,819
|
$
|
283,720
|
$
|
263,116
|
||||||||||||||
Same-property metrics
|
||||||||||||||||||||||||
Operating margin
|
70
|
%
|
71
|
%
|
71
|
%
|
72
|
%
|
69
|
%
|
||||||||||||||
Annualized turnover (7)
|
38
|
%
|
42
|
%
|
49
|
%
|
42
|
%
|
34
|
%
|
||||||||||||||
Financial occupancy (8)
|
96.7
|
%
|
96.0
|
%
|
96.0
|
%
|
96.1
|
%
|
96.3
|
%
|
(1) |
Includes consolidated communities only.
|
(2) |
Acquisitions include properties acquired which did not have comparable stabilized results as of January 1, 2022.
|
(3) |
Development includes properties developed which did not have comparable stabilized results as of January 1, 2022.
|
(4) |
Non-residential/other, net consists of revenues generated from retail space, commercial properties, held for sale properties, disposition properties, student housing, properties
undergoing significant construction activities that do not meet our redevelopment criteria and two communities located in the California counties of Santa Barbara and Santa Cruz, which the Company does not consider its core markets.
|
(5) |
Represents straight-line concessions for residential operating communities. Same-property revenues reflect concessions on a cash basis. Total Rental and Other Property Revenues
reflect concessions on a straight-line basis in accordance with U.S. GAAP.
|
(6) |
Includes other expenses and intercompany eliminations pertaining to self-insurance.
|
(7) |
Annualized turnover is defined as the number of apartment homes turned over during the quarter, annualized, divided by the total number of apartment homes.
|
(8) |
Financial occupancy is defined as the percentage resulting from dividing actual rental income by total scheduled rental income (actual rent for occupied apartment homes plus market
rent for vacant apartment homes).
|
Average Monthly Rental Rate
|
Financial Occupancy
|
Gross Revenues
|
Sequential Gross
Revenues
|
|||||||||||||||||||||||||||||||||||||||||||||||||
Region - County
|
Apartment
Homes
|
Q1 '23 % of
Actual NOI
|
Q1 '23
|
Q1 '22
|
% Change
|
Q1 '23
|
Q1 '22
|
% Change
|
Q1 '23
|
Q1 '22
|
% Change
|
Q4 '22
|
% Change
|
|||||||||||||||||||||||||||||||||||||||
Southern California
|
||||||||||||||||||||||||||||||||||||||||||||||||||||
Los Angeles County
|
9,327
|
17.6
|
%
|
$
|
2,660
|
$
|
2,511
|
5.9
|
%
|
96.6
|
%
|
96.2
|
%
|
0.4
|
%
|
$
|
72,608
|
$
|
69,023
|
5.2
|
%
|
$
|
73,855
|
-1.7
|
%
|
|||||||||||||||||||||||||||
Orange County
|
5,189
|
10.6
|
%
|
2,638
|
2,426
|
8.7
|
%
|
96.7
|
%
|
96.2
|
%
|
0.5
|
%
|
40,842
|
37,061
|
10.2
|
%
|
41,056
|
-0.5
|
%
|
||||||||||||||||||||||||||||||||
San Diego County
|
4,582
|
9.3
|
%
|
2,458
|
2,210
|
11.2
|
%
|
97.5
|
%
|
96.7
|
%
|
0.8
|
%
|
34,257
|
30,998
|
10.5
|
%
|
33,513
|
2.2
|
%
|
||||||||||||||||||||||||||||||||
Ventura County
|
2,254
|
4.3
|
%
|
2,244
|
2,052
|
9.4
|
%
|
96.8
|
%
|
96.0
|
%
|
0.8
|
%
|
15,558
|
13,962
|
11.4
|
%
|
15,304
|
1.7
|
%
|
||||||||||||||||||||||||||||||||
Total Southern California
|
21,352
|
41.8
|
%
|
2,567
|
2,377
|
8.0
|
%
|
96.8
|
%
|
96.3
|
%
|
0.5
|
%
|
163,265
|
151,044
|
8.1
|
%
|
163,728
|
-0.3
|
%
|
||||||||||||||||||||||||||||||||
Northern California
|
||||||||||||||||||||||||||||||||||||||||||||||||||||
Santa Clara County
|
8,653
|
20.2
|
%
|
2,921
|
2,742
|
6.5
|
%
|
96.7
|
%
|
96.6
|
%
|
0.1
|
%
|
76,135
|
70,376
|
8.2
|
%
|
75,542
|
0.8
|
%
|
||||||||||||||||||||||||||||||||
Alameda County
|
3,959
|
7.6
|
%
|
2,592
|
2,502
|
3.6
|
%
|
96.9
|
%
|
96.1
|
%
|
0.8
|
%
|
30,699
|
29,570
|
3.8
|
%
|
30,496
|
0.7
|
%
|
||||||||||||||||||||||||||||||||
San Mateo County
|
1,962
|
4.4
|
%
|
2,976
|
2,860
|
4.1
|
%
|
96.1
|
%
|
96.1
|
%
|
0.0
|
%
|
17,632
|
16,575
|
6.4
|
%
|
17,684
|
-0.3
|
%
|
||||||||||||||||||||||||||||||||
Contra Costa County
|
2,619
|
5.5
|
%
|
2,642
|
2,520
|
4.8
|
%
|
96.9
|
%
|
96.6
|
%
|
0.3
|
%
|
21,080
|
19,735
|
6.8
|
%
|
21,096
|
-0.1
|
%
|
||||||||||||||||||||||||||||||||
San Francisco
|
1,178
|
2.3
|
%
|
2,817
|
2,710
|
3.9
|
%
|
95.7
|
%
|
96.6
|
%
|
-0.9
|
%
|
10,046
|
9,912
|
1.4
|
%
|
10,186
|
-1.4
|
%
|
||||||||||||||||||||||||||||||||
Total Northern California
|
18,371
|
40.0
|
%
|
2,810
|
2,669
|
5.3
|
%
|
96.6
|
%
|
96.4
|
%
|
0.2
|
%
|
155,592
|
146,168
|
6.4
|
%
|
155,004
|
0.4
|
%
|
||||||||||||||||||||||||||||||||
Seattle Metro
|
10,341
|
18.2
|
%
|
2,157
|
2,002
|
7.7
|
%
|
96.6
|
%
|
95.9
|
%
|
0.7
|
%
|
70,038
|
64,203
|
9.1
|
%
|
70,284
|
-0.4
|
%
|
||||||||||||||||||||||||||||||||
Total Same-Property
|
50,064
|
100.0
|
%
|
$
|
2,571
|
$
|
2,407
|
6.8
|
%
|
96.7
|
%
|
96.3
|
%
|
0.4
|
%
|
$
|
388,895
|
$
|
361,415
|
7.6
|
%
|
$
|
389,016
|
0.0
|
%
|
Based on 50,064 apartment homes
|
||||||||||||||||
Q1 '23
|
Q1 '22
|
% Change
|
% of Op. Ex.
|
|||||||||||||
Same-property operating expenses:
|
||||||||||||||||
Real estate taxes
|
$
|
42,987
|
$
|
43,689
|
-1.6
|
%
|
37.5
|
%
|
||||||||
Utilities
|
23,178
|
22,550
|
2.8
|
%
|
20.2
|
%
|
||||||||||
Personnel costs
|
21,847
|
21,498
|
1.6
|
%
|
19.0
|
%
|
||||||||||
Maintenance and repairs
|
13,920
|
11,181
|
24.5
|
% (1)
|
12.1
|
%
|
||||||||||
Administrative
|
6,524
|
6,206
|
5.1
|
%
|
5.7
|
%
|
||||||||||
Insurance and other
|
6,340
|
5,263
|
20.5
|
%
|
5.5
|
%
|
||||||||||
Total same-property operating expenses
|
$
|
114,796
|
$
|
110,387
|
4.0
|
%
|
100.0
|
%
|
(1) |
The increase in maintenance and repairs expense is primarily due to higher than average turnover and costs associated with flood damage clean-up.
|
Project Name – Location
|
Ownership
% |
Estimated
Apartment
Homes
|
Estimated
Commercial
sq. feet
|
Incurred to
Date
|
Remaining
Costs
|
Estimated
Total Cost
|
Essex Est.
Total Cost (1)
|
Cost per
Apartment
Home (2)
|
Average
%
Occupied
|
%
Leased as of
3/31/23 (3)
|
%
Leased as of
4/26/23 (3)
|
Construction
Start
|
Initial
Occupancy
|
Stabilized
Operations
|
||||||||||||||||||||||||||||||||||||||||||
Land Held for Future Development - Consolidated
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other Projects - Various
|
100%
|
|
-
|
-
|
$
|
22
|
$
|
-
|
$
|
22
|
$
|
22
|
||||||||||||||||||||||||||||||||||||||||||||
Total Development Pipeline - Consolidated
|
-
|
-
|
22
|
-
|
22
|
22
|
||||||||||||||||||||||||||||||||||||||||||||||||||
Development Projects - Joint Venture (4)
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||
LIVIA (fka Scripps Mesa Apartments) (5) - San Diego, CA
|
51%
|
|
264
|
2,000
|
79
|
23
|
102
|
52
|
383
|
0%
|
|
0%
|
|
0%
|
|
Q3 2020
|
Q2 2023
|
Q1 2024
|
||||||||||||||||||||||||||||||||||||||
Total Development Projects - Joint Venture
|
264
|
2,000
|
79
|
23
|
102
|
52
|
$
|
383
|
||||||||||||||||||||||||||||||||||||||||||||||||
Grand Total - Development Pipeline
|
264
|
2,000
|
$
|
101
|
$
|
23
|
$
|
124
|
74
|
|||||||||||||||||||||||||||||||||||||||||||||||
Essex Cost Incurred to Date - Pro Rata
|
(62
|
)
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||
Essex Remaining Commitment
|
$
|
12
|
(1) |
The Company's share of the estimated total cost of the project.
|
(2) |
Net of the estimated allocation to the retail component of the project, as applicable.
|
(3) |
Calculations are based on multifamily operations only.
|
(4) |
For the first quarter of 2023, the Company's cost includes $0.2 million of capitalized interest, $0.9 million of capitalized overhead and $0.2 million of development fees (such
development fees reduced G&A expenses).
|
(5) |
Cost incurred to date and estimated total cost are net of a projected value for low income housing tax credit proceeds and the value of the tax exempt bond structure.
|
Revenue Generating Capital Expenditures (2)
|
Q1 '23
|
Trailing 4
Quarters
|
||||||
Same-property portfolio
|
$
|
17,973
|
$
|
75,595
|
||||
Non-same property portfolio
|
371
|
1,093
|
||||||
Total revenue generating capital expenditures
|
$
|
18,344
|
$
|
76,688
|
||||
Number of same-property interior renovations
|
647
|
3,638
|
||||||
Number of total consolidated interior renovations
|
649
|
3,726
|
||||||
Non-Revenue Generating Capital Expenditures (3)
|
Q1 '23
|
Trailing 4
Quarters
|
||||||
Non-revenue generating capital expenditures
|
$
|
16,888
|
$
|
130,935
|
||||
Average apartment homes in quarter
|
51,611
|
51,772
|
||||||
Capital expenditures per apartment homes in the quarter
|
$
|
327
|
$
|
2,529
|
(1) |
The Company incurred $0.1 million of capitalized interest, $3.6 million of capitalized overhead and $0.3 million of co-investment fees related to redevelopment in Q1 2023.
|
(2) |
Represents revenue generating or expense saving expenditures, such as full-scale redevelopments, interior unit turn renovations, enhanced amenities and certain resource management
initiatives. Excludes costs related to smart home automation.
|
(3) |
Represents roof replacements, paving, building and mechanical systems, exterior painting, siding, etc. Non-revenue generating capital expenditures does not include costs related to
retail, furniture and fixtures, expenditures in which the Company expects to be reimbursed, and expenditures incurred due to changes in governmental regulation that the Company would not have incurred otherwise.
|
Weighted
Average
Essex
Ownership
Percentage
|
Apartment
Homes
|
Total
Undepreciated
Book Value
|
Debt Amount
|
Essex Book Value
|
Weighted
Average
Borrowing
Rate (1)
|
Remaining
Term of Debt
(in Years)
|
Three
Months
Ended
March 31, 2023
|
|||||||||||||||||||||||||
Operating and Other Non-Consolidated Joint Ventures
|
NOI
|
|||||||||||||||||||||||||||||||
Wesco I, III, IV, V, VI (2)
|
54%
|
|
5,975
|
$
|
2,134,026
|
$
|
1,439,317
|
$
|
166,941
|
3.4
|
%
|
3.6
|
$
|
28,236
|
||||||||||||||||||
BEXAEW, BEX II, BEX IV, and 500 Folsom
|
50%
|
3,083
|
1,247,595
|
548,449
|
235,559
|
4.3
|
%
|
8.1
|
(5)
|
15,697
|
||||||||||||||||||||||
Other (3)
|
52%
|
1,367
|
559,576
|
408,294
|
66,282
|
4.6
|
%
|
2.1
|
7,019
|
|||||||||||||||||||||||
Total Operating and Other Non-Consolidated Joint Ventures
|
10,425
|
$
|
3,941,197
|
$
|
2,396,060
|
$
|
468,782
|
3.8
|
%
|
4.4
|
$
|
50,952
|
||||||||||||||||||||
Development Non-Consolidated Joint Ventures (4)
|
51%
|
264
|
78,807
|
89,250
|
13,345
|
3.7
|
%
|
37.2
|
(6)
|
-
|
||||||||||||||||||||||
Total Non-Consolidated Joint Ventures
|
10,689
|
$
|
4,020,004
|
$
|
2,485,310
|
$
|
482,127
|
3.8
|
%
|
5.5
|
$
|
50,952
|
||||||||||||||||||||
Essex Portion
of NOI and
Expenses
|
||||||||||||||||||||||||||||||||
NOI
|
$
|
27,273
|
||||||||||||||||||||||||||||||
Depreciation
|
(17,609
|
)
|
||||||||||||||||||||||||||||||
Interest expense and other
|
(12,615
|
)
|
||||||||||||||||||||||||||||||
Equity loss from non-core co-investments
|
(94
|
)
|
||||||||||||||||||||||||||||||
Insurance reimbursements, legal settlements, and other, net
|
599
|
|||||||||||||||||||||||||||||||
Net loss from operating and other co-investments
|
$
|
(2,446
|
)
|
|||||||||||||||||||||||||||||
Weighted
Average
Preferred
Return
|
Weighted
Average
Expected
Term
|
Income from
Preferred
Equity
Investments
|
||||||||||||||||||||||||||||||
Income from preferred equity investments
|
$
|
13,317
|
||||||||||||||||||||||||||||||
Preferred Equity Investments (7)
|
$
|
598,747
|
9.7
|
%
|
2.3
|
$
|
13,317
|
|||||||||||||||||||||||||
Total Co-investments
|
$
|
1,080,874
|
$
|
10,871
|
(1) |
Represents the year-to-date annual weighted average borrowing rate.
|
(2) |
As of March 31, 2023, the Company’s investments in Wesco I, Wesco III, and Wesco IV were classified as a liability of $49.0 million due to distributions received in excess of the
Company's investment.
|
(3) |
As of March 31, 2023, the Company’s investments in Expo and Century Towers were classified as a liability of $1.3 million due to distributions received in excess of the Company's
investment. The weighted average Essex ownership percentage excludes our investments in non-core technology co-investments which are carried at fair value.
|
(4) |
The Company has ownership interests in development co-investments, which are detailed on page S-11.
|
(5) |
$132.0 million of the debt related to 500 Folsom, one of the Company's co-investments, is financed by tax exempt bonds with a maturity date of January 2052.
|
(6) |
LIVIA (fka Scripps Mesa Apartments) has $89.3 million of long-term tax-exempt bond debt that is subject to a total return swap that matures in 2025.
|
(7) |
As of March 31, 2023, the Company has invested in 25 preferred equity investments.
|
Three Months
Ended March 31,
|
2023 Full-Year Guidance Range
|
||||||||||||
2023 (1)
|
Low End
|
High End
|
Comments about 2023 Full-Year Guidance
|
||||||||||
Total NOI from Consolidated Communities - Excluding
Straight-Line Rent Concessions
|
$
|
288,668
|
$
|
1,151,000
|
$
|
1,178,000
|
Includes guidance range for same-property NOI growth of 2.3% to 4.9% and reflects sale of one community in Q1 '23
|
||||||
Straight-Line Rent Concessions from Consolidated Communities
|
576
|
2,100
|
(3,900
|
)
|
Reflects the non-cash impact of recording lease concessions on a straight-line basis
|
||||||||
Management Fees
|
2,765
|
10,700
|
11,700
|
||||||||||
Interest Expense
|
|||||||||||||
Interest expense, before capitalized interest
|
(50,288
|
)
|
(206,100
|
)
|
(203,800
|
)
|
|||||||
Interest capitalized
|
276
|
400
|
900
|
||||||||||
Net interest expense
|
(50,012
|
)
|
(205,700
|
)
|
(202,900
|
)
|
|||||||
Recurring Income and Expenses
|
|||||||||||||
Interest and other income
|
3,283
|
17,600
|
18,600
|
||||||||||
FFO from co-investments
|
27,975
|
108,900
|
111,000
|
Reflects updated preferred equity redemption expectations and includes investment activity completed through April
|
|||||||||
General and administrative
|
(15,045
|
)
|
(55,500
|
)
|
(57,500
|
)
|
|||||||
Corporate-level property management expenses
|
(11,432
|
)
|
(45,200
|
)
|
(46,200
|
)
|
|||||||
Non-controlling interest
|
(3,017
|
)
|
(12,500
|
)
|
(11,500
|
)
|
|||||||
Total recurring income and expenses
|
1,764
|
13,300
|
14,400
|
||||||||||
Non-Core Income and Expenses
|
|||||||||||||
Expensed acquisition and investment related costs
|
(339
|
)
|
(339
|
)
|
(339
|
)
|
|||||||
Deferred tax benefit on unconsolidated co-investments
|
900
|
900
|
900
|
||||||||||
Gain on sale of marketable securities
|
912
|
912
|
912
|
||||||||||
Change in unrealized gains on marketable securities, net
|
368
|
368
|
368
|
||||||||||
Provision for credit losses
|
(18
|
)
|
(18
|
)
|
(18
|
)
|
|||||||
Equity loss from non-core co-investments
|
(94
|
)
|
(94
|
)
|
(94
|
)
|
|||||||
Loss on early retirement of debt from unconsolidated
co-investments
|
-
|
-
|
-
|
||||||||||
Co-investment promote income
|
-
|
-
|
-
|
||||||||||
Income from early redemption of preferred equity investments
|
-
|
-
|
-
|
||||||||||
General and administrative and other, net
|
(266
|
)
|
(266
|
)
|
(266
|
)
|
|||||||
Insurance reimbursements, legal settlements, and other, net
|
8,504
|
8,504
|
8,504
|
||||||||||
Total non-core income and expenses
|
9,967
|
9,967
|
9,967
|
||||||||||
Funds from Operations (2)
|
$
|
253,728
|
$
|
981,367
|
$
|
1,007,267
|
|||||||
Funds from Operations per diluted Share
|
$
|
3.80
|
$
|
14.74
|
$
|
15.12
|
|||||||
% Change - Funds from Operations
|
13.1
|
%
|
7.6
|
%
|
10.4
|
%
|
|||||||
Core Funds from Operations (excludes non-core items)
|
$
|
243,761
|
$
|
971,400
|
$
|
997,300
|
|||||||
Core Funds from Operations per diluted Share
|
$
|
3.65
|
$
|
14.59
|
$
|
14.97
|
|||||||
% Change - Core Funds from Operations
|
8.3
|
%
|
0.6
|
%
|
3.2
|
%
|
|||||||
EPS - Diluted
|
$
|
2.38
|
$
|
6.36
|
$
|
6.74
|
|||||||
Weighted average shares outstanding - FFO calculation
|
66,726
|
66,600
|
66,600
|
(1) |
All non-core items are excluded from the 2023 actuals and included in the non-core income and expense section of the FFO reconciliation.
|
(2) |
2023 guidance excludes inestimable projected gain on sale of marketable securities, loss on early retirement of debt, political/legislative costs, and promote income until they are
realized within the reporting period presented in the report.
|
Three Months
Ended March 31,
2023
|
2023 Guidance Range (1)
|
|||||||||||||||||||
2nd Quarter 2023
|
Full-Year 2023
|
|||||||||||||||||||
Low
|
High
|
Low
|
High
|
|||||||||||||||||
EPS - diluted
|
$
|
2.38
|
$
|
1.32
|
$
|
1.44
|
$
|
6.36
|
$
|
6.74
|
||||||||||
Conversion from GAAP share count
|
(0.08
|
)
|
(0.05
|
)
|
(0.05
|
)
|
(0.22
|
)
|
(0.22
|
)
|
||||||||||
Casualty loss
|
0.01
|
-
|
-
|
0.01
|
0.01
|
|||||||||||||||
Depreciation and amortization
|
2.30
|
2.32
|
2.32
|
9.27
|
9.27
|
|||||||||||||||
Noncontrolling interest related to Operating Partnership units
|
0.08
|
0.04
|
0.04
|
0.21
|
0.21
|
|||||||||||||||
Gain on sale of real estate and land
|
(0.89
|
)
|
-
|
-
|
(0.89
|
)
|
(0.89
|
)
|
||||||||||||
FFO per share - diluted
|
$
|
3.80
|
$
|
3.63
|
$
|
3.75
|
$
|
14.74
|
$
|
15.12
|
||||||||||
Expensed acquisition and investment related costs
|
0.01
|
-
|
-
|
0.01
|
0.01
|
|||||||||||||||
Deferred tax benefit on unconsolidated co-investments
|
(0.01
|
)
|
-
|
-
|
(0.01
|
)
|
(0.01
|
)
|
||||||||||||
Gain on sale of marketable securities
|
(0.01
|
)
|
-
|
-
|
(0.01
|
)
|
(0.01
|
)
|
||||||||||||
Change in unrealized gains on marketable securities, net
|
(0.01
|
)
|
-
|
-
|
(0.01
|
)
|
(0.01
|
)
|
||||||||||||
Provision for credit losses
|
-
|
-
|
-
|
-
|
-
|
|||||||||||||||
Equity loss from non-core co-investments
|
-
|
-
|
-
|
-
|
-
|
|||||||||||||||
Loss on early retirement of debt from unconsolidated co-investments
|
-
|
-
|
-
|
-
|
-
|
|||||||||||||||
Co-investment promote income
|
-
|
-
|
-
|
-
|
-
|
|||||||||||||||
Income from early redemption of preferred equity investments
|
-
|
-
|
-
|
-
|
-
|
|||||||||||||||
General and administrative and other, net
|
-
|
-
|
-
|
-
|
-
|
|||||||||||||||
Insurance reimbursements, legal settlements, and other, net
|
(0.13
|
)
|
-
|
-
|
(0.13
|
)
|
(0.13
|
)
|
||||||||||||
Core FFO per share - diluted
|
$
|
3.65
|
$
|
3.63
|
$
|
3.75
|
$
|
14.59
|
$
|
14.97
|
(1) |
2023 guidance excludes inestimable projected gain on sale of real estate and land, gain on sale of marketable securities, loss on early retirement of debt, political/legislative
costs, and promote income until they are realized within the reporting period presented in the report.
|
Acquisitions
Property Name
|
Location
|
Apartment
Homes
|
Essex
Ownership Percentage
|
Entity
|
Date
|
Total
Contract
Price
|
Price per
Apartment Home
|
Average
Rent
|
||||||||||||||
Neither Essex nor its unconsolidated joint ventures acquired any apartment communities during the first quarter of 2023.
|
||||||||||||||||||||||
Dispositions
|
Essex
|
|||||||||||||||||||||
Apartment
|
Ownership
|
Total Sale
|
Price per
|
|||||||||||||||||||
Property Name
|
Location
|
Homes
|
Percentage
|
Entity
|
Date
|
Price
|
Apartment Home
|
|||||||||||||||
CBC and The Sweeps
|
Goleta, CA
|
239
|
100%
|
|
EPLP
|
Mar-23
|
$
|
91,675
|
$
|
384
|
||||||||||||
|
Q1 2023
|
|
239
|
|
$
|
91,675
|
$ |
384
|
||||||||||||||
|
2023 Total
|
|
239 |
|
$
|
91,675
|
|
$ |
384
|
Delinquencies for First Quarter 2023
|
Same-Property
|
Non-Same
Property and
Co-investments |
|
|
Total Operating
Communities
|
Commercial
|
Total
|
||||||||||||||
Operating apartment community units
|
50,064
|
11,261
|
61,325
|
N/A
|
N/A
|
||||||||||||||||
|
|||||||||||||||||||||
Cash delinquencies as % of scheduled rent
|
2.1
|
%
|
2.6
|
%
|
2.2
|
%
|
N/A
|
N/A
|
|||||||||||||
Reported delinquencies as % of scheduled rent (1)
|
2.1
|
%
|
2.6
|
%
|
2.2
|
%
|
N/A
|
N/A
|
|||||||||||||
Reported delinquencies in 1Q 2023 (2) (3)
|
$
|
(8.2
|
)
|
$
|
(1.2
|
)
|
$
|
(9.4
|
)
|
$
|
(0.4
|
)
|
$
|
(9.8
|
)
|
||||||
Reported delinquencies in 1Q 2022 (2)
|
$
|
(8.0
|
)
|
$
|
(1.3
|
)
|
$
|
(9.3
|
)
|
$
|
0.6
|
$
|
(8.7
|
)
|
|||||||
|
|||||||||||||||||||||
YoY impact to 1Q 2023 Core FFO per share
|
$
|
(0.00
|
)
|
$
|
0.00
|
$
|
(0.00
|
)
|
$
|
(0.01
|
)
|
$
|
(0.02
|
)
|
|||||||
YoY impact to Core FFO per share growth
|
-0.1
|
%
|
0.0
|
%
|
0.0
|
%
|
-0.4
|
%
|
-0.5
|
%
|
|||||||||||
|
|||||||||||||||||||||
Total cumulative cash delinquencies (4) (5)
|
$
|
(88.3
|
)
|
$
|
(11.9
|
)
|
$
|
(100.2
|
)
|
N/A
|
N/A
|
||||||||||
Net accounts receivable balance
|
$
|
3.4
|
$
|
-
|
$
|
3.4
|
N/A
|
N/A
|
(1) |
Represents total residential portfolio delinquencies as a percentage of scheduled rent reflected in the financial statements for the three months ended March 31, 2023.
|
(2) |
Excludes sold communities and co-investment delinquencies reported at the Company's pro rata share.
|
(3) |
Commercial delinquencies in 1Q 2023 includes an increase of the straight-line rent reserve of $0.2 million and includes co-investment amounts at the Company's pro rata share.
|
(4) |
Represents cash delinquencies from the period of April 1, 2020 to March 31, 2023. This includes $3.4 million of the net accounts receivable balance.
|
(5) |
The Company, including its co-investments, has received Emergency Rental Assistance payments of $2.5 million and $66.8 million for the three months ended March 31, 2023 and the
period from April 1, 2020 to March 31, 2023, respectively.
|
Operating Statistics
|
Same-Property Revenue Growth with Concessions on a GAAP basis
|
||||||||||||||
Same-Property Portfolio
|
Preliminary
Estimate
April 2023
|
1Q 2023
|
1Q 2023
|
1Q 2022
|
|||||||||||
Cash delinquencies as % of scheduled rent (1)
|
2.3%
|
2.1%
|
|
Reported rental revenue (cash basis concessions)
|
$
|
388.9
|
$
|
361.4
|
|||||||
|
Straight-line rent impact to rental revenue
|
0.7
|
(3.0
|
)
|
|||||||||||
New lease rates (2)
|
1.2%
|
1.2%
|
GAAP rental revenue
|
$
|
389.6
|
$
|
358.4
|
||||||||
Renewal rates (2)
|
4.2%
|
4.7%
|
|||||||||||||
Blended rates
|
2.7%
|
2.9%
|
% change - reported rental revenue
|
7.6
|
%
|
||||||||||
|
% change - GAAP rental revenue
|
8.7
|
%
|
||||||||||||
Financial occupancy
|
96.4%
|
96.7%
|
|||||||||||||
(1) The Company's same-property portfolio has received Emergency Rental Assistance payments of $0.1 million and $1.3 million
in April 2023 and for the three months ended March 31, 2023, respectively.
|
|||||||||||||||
(2) Represents % change in similar term lease tradeouts, including the impact of leasing incentives.
|
|||||||||||||||
Forecast Summary:
|
Forecast Assumptions:
|
||||||||||||||||||||||||||
2023 GDP Growth = +0.4%
|
Fed policy spurs weaker job growth into mid-2023, and decelerating rent growth
|
||||||||||||||||||||||||||
Dec-23 unemployment rate = 4.7%, US Job Growth = -0.2% (TTM avg)
|
High mortgage rates shift rent/buy equation, supporting rental demand
|
||||||||||||||||||||||||||
2023 Supply growth in ESS markets remains below 1%
|
Macro uncertainty remains elevated near-term, with inflation a key catalyst
|
||||||||||||||||||||||||||
Residential Supply (1)
|
Job Forecast (2)
|
Rent Forecast (3)
|
|||||||||||||||||||||||||
Market
|
New MF
Supply
|
New SF
Supply
|
Total
Supply
|
MF Supply
as % of MF Stock
|
Total Supply
as % of Stock |
Q4 YOY
New Jobs
|
Q4 YOY
Growth
|
TTM YOY
Growth
|
TTM YOY
Growth
|
||||||||||||||||||
Los Angeles
|
10,700
|
6,450
|
17,150
|
0.7%
|
0.5%
|
|
0
|
0.0%
|
|
0.4%
|
2.4%
|
||||||||||||||||
Orange County
|
2,500
|
3,300
|
5,800
|
0.6%
|
0.5%
|
0
|
0.0%
|
0.3%
|
2.0%
|
||||||||||||||||||
San Diego
|
3,300
|
2,950
|
6,250
|
0.7%
|
0.5%
|
2,000
|
0.1%
|
0.2%
|
1.9%
|
||||||||||||||||||
Ventura
|
900
|
200
|
1,100
|
1.4%
|
0.4%
|
0
|
0.0%
|
0.4%
|
1.6%
|
||||||||||||||||||
So. Cal.
|
17,400
|
12,900
|
30,300
|
0.7%
|
0.5%
|
2,000
|
0.0%
|
0.3%
|
2.1%
|
||||||||||||||||||
San Francisco
|
2,150
|
550
|
2,700
|
0.6%
|
0.4%
|
2,000
|
0.2%
|
1.2%
|
2.3%
|
||||||||||||||||||
Oakland
|
2,500
|
3,050
|
5,550
|
0.7%
|
0.5%
|
500
|
0.0%
|
0.3%
|
1.2%
|
||||||||||||||||||
San Jose
|
2,300
|
2,200
|
4,500
|
0.9%
|
0.6%
|
2,000
|
0.2%
|
0.5%
|
2.6%
|
||||||||||||||||||
No. Cal.
|
6,950
|
5,800
|
12,750
|
0.7%
|
0.5%
|
4,500
|
0.1%
|
0.7%
|
2.1%
|
||||||||||||||||||
Seattle
|
9,550
|
4,900
|
14,450
|
1.9%
|
1.1%
|
3,000
|
0.2%
|
0.4%
|
1.3%
|
||||||||||||||||||
Total/Weighted Avg. (4)
|
33,900
|
23,600
|
57,500
|
0.8%
|
0.6%
|
9,500
|
0.1%
|
0.4%
|
2.0%
|
%
|
(1) |
Residential Supply: Total supply includes the Company's estimate of
multifamily deliveries of properties with 50+ units and excludes student, senior and 100% affordable housing communities. Single-family estimates are based on trailing single-family permits. Multifamily estimates incorporate a
methodological enhancement ("delay-adjusted supply") to reflect the anticipated impact of continued construction delays in Essex markets.
|
(2) |
Job Forecast: Refers to the difference between total non-farm industry employment (not seasonally adjusted) projected 4Q23 over 4Q22, expressed as total new jobs and growth rates, and trailing 12-month 2023 vs 2022 growth rates.
|
(3) |
Rent Forecast: The estimated rent growth represents the forecasted
change in economic rents for trailing 12-month 2023 vs 2022, and excludes submarkets not targeted by Essex.
|
(4) |
Weighted Average: Rent growth rates are weighted by scheduled rent in
the Company's Portfolio.
|
(Dollars in thousands)
|
Three
Months Ended
March 31,
2023
|
|||
Net income available to common stockholders
|
$
|
153,532
|
||
Adjustments:
|
||||
Net income attributable to noncontrolling interest
|
8,062
|
|||
Interest expense, net (1)
|
50,012
|
|||
Depreciation and amortization
|
136,347
|
|||
Income tax provision
|
90
|
|||
Gain on sale of real estate and land
|
(59,238
|
)
|
||
Casualty loss
|
433
|
|||
Co-investment EBITDAre adjustments
|
29,127
|
|||
EBITDAre
|
318,365
|
|||
|
||||
Gain on sale of marketable securities
|
(912
|
)
|
||
Change in unrealized gains (losses) on marketable securities, net
|
(368
|
)
|
||
Provision for credit losses
|
18
|
|||
Equity loss from non-core co-investments
|
94
|
|||
Deferred tax benefit on unconsolidated co-investments
|
(900
|
)
|
||
General and administrative and other, net
|
266
|
|||
Insurance reimbursements and legal settlements, net
|
(8,504
|
)
|
||
Expensed acquisition and investment related costs
|
339
|
|||
Adjusted EBITDAre
|
$
|
308,398
|
(1) |
Interest expense, net includes items such as gains on derivatives and the amortization of deferred charges.
|
(Dollars in thousands)
|
Three
Months Ended
March 31,
2023
|
|||
Interest expense
|
$
|
51,045
|
||
Adjustments:
|
||||
Total return swap income
|
(1,033
|
)
|
||
Interest expense, net
|
$
|
50,012
|
(Dollars in millions)
|
April 26,
2023
|
|||
Unsecured credit facility - committed
|
$
|
1,235
|
||
Balance outstanding
|
2 | |||
Undrawn portion of line of credit
|
$
|
1,233
|
||
Cash, cash equivalents & marketable securities
|
226
|
|||
Total liquidity
|
$
|
1,459
|
(Dollars in thousands)
|
March 31,
2023
|
|||
Total consolidated debt, net
|
$
|
5,907,305
|
||
Total debt from co-investments at pro rata share
|
1,327,980
|
|||
Adjustments:
|
||||
Consolidated unamortized premiums, discounts, and debt issuance costs
|
37,167
|
|||
Pro rata co-investments unamortized premiums, discounts, and debt issuance costs
|
6,141
|
|||
Consolidated cash and cash equivalents-unrestricted
|
(67,712
|
)
|
||
Pro rata co-investment cash and cash equivalents-unrestricted
|
(45,076
|
)
|
||
Marketable securities
|
(118,887
|
)
|
||
Net Indebtedness
|
$
|
7,046,918
|
||
Adjusted EBITDAre, annualized (1)
|
$
|
1,233,592
|
||
Other EBITDAre normalization adjustments, net, annualized (2)
|
(3,262
|
)
|
||
Adjusted EBITDAre, normalized and annualized
|
$
|
1,230,330
|
||
Net Indebtedness Divided by Adjusted EBITDAre, normalized and annualized
|
5.7
|
(1) |
Based on the amount for the most recent quarter, multiplied by four.
|
(2) |
Adjustments made for properties in lease-up, acquired, or disposed during the most recent quarter and other partial quarter activity, multiplied by four.
|
Three Months Ended
|
||||||||
(Dollars in thousands)
|
March 31,
2023
|
March 31,
2022
|
||||||
Earnings from operations
|
$
|
187,385
|
$
|
109,850
|
||||
Adjustments:
|
||||||||
Corporate-level property management expenses
|
11,432
|
10,172
|
||||||
Depreciation and amortization
|
136,347
|
133,533
|
||||||
Management and other fees from affiliates
|
(2,765
|
)
|
(2,689
|
)
|
||||
General and administrative
|
15,311
|
12,242
|
||||||
Expensed acquisition and investment related costs
|
339
|
8
|
||||||
Casualty loss
|
433
|
-
|
||||||
Gain on sale of real estate and land
|
(59,238
|
)
|
-
|
|||||
NOI
|
289,244
|
263,116
|
||||||
Less: Non-same property NOI
|
(15,145
|
)
|
(12,088
|
)
|
||||
Same-Property NOI
|
$
|
274,099
|
$
|
251,028
|
(Dollars in thousands)
|
Annualized
Q1'23 (1)
|
|||
NOI
|
$
|
1,156,976
|
||
Adjustments:
|
||||
NOI from real estate assets sold or held for sale
|
(3,802
|
)
|
||
Other, net (2)
|
(6,171
|
)
|
||
Adjusted Total NOI
|
1,147,003
|
|||
Less: Encumbered NOI
|
(59,695
|
)
|
||
Unencumbered NOI
|
$
|
1,087,308
|
||
Encumbered NOI
|
$
|
59,695
|
||
Unencumbered NOI
|
1,087,308
|
|||
Adjusted Total NOI
|
$
|
1,147,003
|
||
Unencumbered NOI to Adjusted Total NOI
|
95
|
%
|
(1) |
This table is based on the amounts for the most recent quarter, multiplied by four.
|
(2) |
Includes intercompany eliminations pertaining to self-insurance and other expenses.
|
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