8-KOther EventsExhibits & Filings

ESSEX PROPERTY TRUST, INC. 8-K Report, Corporate Update (Jan 20, 2006)

Filed January 20, 2006For Securities:ESS

Summary

Essex Property Trust, Inc. (ESS) filed this Form 8-K on January 20, 2006, primarily to update its historical financial statements in accordance with Statement of Financial Accounting Standards (SFAS) No. 144. This reclassification pertains to properties sold during the first nine months of 2005, which are now reported as a component of discontinued operations in their previously filed quarterly reports and now in their annual reports for 2004, 2003, and 2002. This adjustment is a technical accounting requirement and does not impact the company's previously reported net income available to common shares or funds from operations (FFO).

Key Highlights

  • 1Reclassification of sold properties as discontinued operations in annual financial statements for 2004, 2003, and 2002, aligning with SFAS No. 144.
  • 2This reclassification follows previous adjustments made in the first, second, and third quarter 2005 Form 10-Q filings.
  • 3The accounting change has no effect on previously reported net income available to common shares.
  • 4The accounting change has no effect on previously reported Funds from Operations (FFO).
  • 5Results for the 2000 and 2001 periods have not been reclassified and may not be directly comparable to the later periods.
  • 6The filing updates specific items (6, 7, 8, and Exhibit 12.1 of Item 15) from the company's Form 10-K for the years ended December 31, 2004, 2003, and 2002.
  • 7The CFO, Michael T. Dance, signed the filing.

Frequently Asked Questions

The main purpose of this 8-K filing is to reclassify certain historical financial data to comply with SFAS No. 144 regarding the accounting for impaired or disposed of long-lived assets. Specifically, properties sold in the first nine months of 2005 are now reported as discontinued operations in the company's annual financial statements for 2004, 2003, and 2002.

No, the filing explicitly states that these reclassifications have no effect on Essex Property Trust's previously reported net income available to common shares or its Funds from Operations (FFO). This is a technical accounting adjustment to the presentation of results, not a change in underlying operational performance.

No, only specific items within the annual reports for the years ended December 31, 2004, 2003, and 2002 are being updated to reflect the discontinued operations treatment for properties sold in 2005. The financial results for the years 2000 and 2001 have not been reclassified, meaning they may not be directly comparable to the later periods.

In this context, 'discontinued operations' refers to the financial results of properties that Essex Property Trust has sold during the first nine months of 2005. SFAS No. 144 requires that the operating results and any gain or loss from the sale of these assets be presented separately from the company's continuing operations.