8-KOther EventsExhibits & Filings

ESSEX PROPERTY TRUST, INC. 8-K Report, Corporate Update (Mar 12, 2013)

Filed March 12, 2013For Securities:ESS

Summary

Essex Property Trust, Inc. (ESS) filed this 8-K on March 12, 2013, to provide updated financial information regarding two significant multifamily property acquisitions made in 2012: Montebello Apartments in Kirkland, Washington, and Willow Lake Apartments in San Jose, California. These filings include statements of revenue and certain expenses for these acquired properties, prepared in accordance with SEC Regulation S-X Rule 3-14, which focuses on operations relevant to future performance. Investors should note that these statements exclude certain expenses such as depreciation, amortization, income taxes, and management fees, and therefore do not represent a full GAAP presentation of the properties' financial performance. The acquisitions represent strategic expansion for Essex in key West Coast markets. Montebello Apartments, a 248-unit property, was acquired for $52.0 million plus closing costs, with an assumed mortgage of $26.5 million at a 5.6% fixed rate. Willow Lake, a larger 508-unit property, was acquired for $148.0 million plus closing costs. The inclusion of these properties enhances Essex's portfolio and is expected to contribute to its ongoing revenue growth and market position in the multifamily sector.

Key Highlights

  • 1Essex Property Trust (ESS) filed an 8-K on March 12, 2013, to disclose financial information for two acquired multifamily properties.
  • 2The acquired properties are Montebello Apartments (Kirkland, WA) and Willow Lake Apartments (San Jose, CA).
  • 3Financial statements provided are for revenue and certain expenses, prepared to comply with SEC Rule 3-14, and are not full GAAP financial statements.
  • 4Key operating expenses excluded from these statements include depreciation, amortization, income taxes, and management fees.
  • 5Montebello Apartments (248 units) was acquired for $52.0 million, including assumption of a $26.5 million mortgage at 5.6% fixed rate.
  • 6Willow Lake Apartments (508 units) was acquired for $148.0 million.
  • 7The acquisitions are considered significant and indicative of Essex's strategy to expand its multifamily portfolio in key West Coast markets.

Frequently Asked Questions

This 8-K filing is to provide the financial statements of revenue and certain expenses for two multifamily properties, Montebello Apartments and Willow Lake Apartments, which Essex Property Trust, Inc. acquired. These statements are required by SEC Regulation S-X Rule 3-14 for significant acquisitions.

No, the provided financial statements are prepared specifically for SEC Rule 3-14 compliance and present only revenue and certain operating expenses. They exclude significant items like depreciation, amortization, income taxes, and management fees, so they are not a complete representation of the properties' profitability under Generally Accepted Accounting Principles (GAAP).

Montebello Apartments, a 248-unit property in Kirkland, WA, was acquired for $52.0 million plus closing costs, with Essex assuming a $26.5 million mortgage at a 5.6% fixed interest rate for eight years. Willow Lake Apartments, a 508-unit property in San Jose, CA, was acquired for $148.0 million plus closing costs.

This figure represents the total revenue generated by the property minus the specific expenses listed in the filing (property operating expenses excluding real estate taxes, and real estate taxes for Willow Lake; and property operating expenses excluding real estate taxes, real estate taxes, and interest expense for Montebello Apartments). It is a measure of operational performance before accounting for the excluded items like depreciation, financing costs, and taxes.