8-KMaterial AgreementsExhibits & Filings

ESSEX PROPERTY TRUST, INC. 8-K Report, Material Agreement (Jan 19, 2011)

Filed January 19, 2011For Securities:ESS

Summary

Essex Property Trust, Inc. (ESS) has filed an 8-K report detailing the entry into six new equity distribution agreements on January 18, 2011. These agreements, with Cantor Fitzgerald & Co., KeyBanc Capital Markets Inc., Barclays Capital Inc., BMO Capital Markets Corp., Liquidnet, Inc., and Mitsubishi UFJ Securities (USA), Inc., are designed to facilitate "at-the-market" offerings and negotiated transactions of the company's common stock. These agreements allow Essex to potentially issue up to an aggregate of 2,936,300 shares of common stock. Notably, the agreements with Cantor Fitzgerald and KeyBanc Capital Markets supersede prior agreements from March 2010. This strategic move indicates Essex's intent to access capital markets for potential future needs, providing flexibility in managing its equity structure.

Key Highlights

  • 1Essex Property Trust entered into six new equity distribution agreements on January 18, 2011.
  • 2The agreements are with Cantor Fitzgerald & Co., KeyBanc Capital Markets Inc., Barclays Capital Inc., BMO Capital Markets Corp., Liquidnet, Inc., and Mitsubishi UFJ Securities (USA), Inc.
  • 3These agreements allow for 'at-the-market' offerings and negotiated transactions of common stock.
  • 4Essex may offer up to an aggregate of 2,936,300 shares of common stock under these agreements.
  • 5Agreements with Cantor Fitzgerald and KeyBanc Capital Markets supersede prior agreements from March 2010.
  • 6The filing indicates Essex's proactive approach to managing its capital structure and accessing equity markets.

Frequently Asked Questions

The primary purpose is to allow Essex Property Trust to sell shares of its common stock through 'at-the-market' offerings or negotiated transactions. This provides the company with flexibility to raise capital as needed.

Essex can offer up to an aggregate of 2,936,300 shares of common stock pursuant to all of these new Equity Distribution Agreements.

No, while new agreements were entered into, the agreements with Cantor Fitzgerald & Co. and KeyBanc Capital Markets Inc. supersede previous agreements that Essex had with these same firms, originally dated March 25, 2010.

An 'at-the-market' offering allows a company to sell its stock over time at prevailing market prices, typically through a financial institution acting as an agent. For investors, this can mean a continuous, albeit potentially small, supply of shares entering the market, which could influence stock price dynamics.