PALO ALTO, CA--(Marketwire - Jan 12, 2012) - Essex Property Trust, Inc. (NYSE: [ ESS ]) announced today 2012 estimates for Earnings per Share ("EPS") and Core Funds from Operations ("FFO") per diluted share. For the year ended December 31, 2012, the Company estimates that EPS will range from $1.55 to $1.85 per diluted share, and Core FFO will range from $6.50 to $6.80 per diluted share. Core FFO excludes estimated 2012 acquisitions costs of $1.2 million, or $.03 per diluted share, which is the only non Core item included in 2012 guidance.

Preliminary Fourth Quarter and Year-to-Date Same-Property Results
For the fourth quarter 2011, same-property revenues and net operating income ("NOI") growth exceeded the Company's guidance provided in the third quarter supplemental and press release. The table below summarizes the percentage change in same-property operating results for the three and twelve months ended December 31, 2011 which is preliminary and unaudited:

2012 Guidance
Assumptions regarding the 2012 economic outlook which are used for our property operating expectations are outlined below.

U.S. Economic Assumptions

• Market rent growth of 7.4%.
• U.S. GDP growth of 2.6%.

Essex Market Economic Assumptions

• Job growth of 1.4%.
• U.S. job growth of 1.3%.

Michael J. Schall, President and Chief Executive Officer, commented, "Our 2012 guidance assumes the continuation of a tepid US economic recovery and high volatility driven by global uncertainty. The west coast apartment markets are expected to continue generating strong rental rate growth, particularly in the tech-heavy Northern California and Seattle metro areas. Southern California, one of the last metros in the nation to recover, will continue to build momentum throughout 2012 and is expected to be fully recovered in 2013. The continuing contribution of our 2011 committed investments, which exceeded $1 billion, supports our expectation of Core FFO per diluted share at the midpoint of $6.65 in 2012, which is significantly in excess of analyst consensus estimates."

2012 Estimated Same-Property Growth
Overall portfolio assumptions are based on the following projected changes in same-property operations, expressed as a percentage change compared to expected 2011 results:

2012 Investment Activity Assumptions

• Acquisitions of $400 million to be financed by $100 million in dispositions, joint venture capital, as well as a combination of equity and debt are expected to net approximately $1 million in net accretion over the cost of capital.
• Five communities are currently under construction. The company expects to spend $100 million related to these projects during 2012. The company anticipates starting two new communities during the year with expected total costs of $150 million.
• Approximately $30 to 40 million will be invested in redevelopment properties during 2012. The average return on redevelopment properties is expected to be 10%, but will have little impact on 2012 NOI as additional rental revenues will be offset by an increased number of units under renovation during the year compared to 2011.

Other estimates used in providing 2012 guidance include:

• Interest cost (including amortization of deferred financing cost) of approximately $110 million, net of capitalized interest of approximately $8 million. LIBOR is assumed to increase 10 basis points each quarter throughout the year.
• Included in net interest cost is $2 million of higher interest expense attributable to the debt refinancing announced on November 15, 2011. The Company terminated the secured facility with an unsecured term loan and swapped $150 million in variable rate debt to a fixed interest rate of 2.66% for 5 years.
• Development properties that were in lease up and consolidated acquisitions completed in 2011 will contribute approximately $11 million of incremental NOI in 2012.
• Corporate general and administrative ("G&A") expenses of approximately $27 million, including $1.2 million of acquisition costs.
• Interest and other income of approximately $10 million.
• Management fee revenue of approximately $9 million.
• Co-investment income is expected to range from $27 to $28 million, an increase of roughly $16 million from 2011 anticipated results. The majority of the increase in co-investment income relates to the full year effects of the Wesco I and II joint venture investment activity made during 2011, including the preferred equity investment described in our press release on January 5, 2012.
• Weighted average shares of common stock outstanding estimated at 36.5 million shares. The company expects to use the at-the-market ("ATM") program currently in place to issue equity to fund external growth activity.

The Company will provide further details of fourth quarter and year to date 2011 operating results and 2012 guidance during its fourth quarter earnings conference call scheduled for February 2, 2012 at 11:30 am Pacific Time.

Funds from Operations ("FFO") Reconciliation

FFO, as defined by the National Association of Real Estate Investment Trusts ("NAREIT"), is generally considered by industry analysts as an appropriate measure of performance of an equity REIT. Generally, FFO adjusts the net income of equity REITs for non-cash charges such as depreciation and amortization of rental properties, gains/losses on sales of real estate and extraordinary items. Management considers FFO to be a useful financial performance measurement of an equity REIT because, together with net income and cash flows, FFO provides investors with an additional basis to evaluate the operating performance and ability of a REIT to incur and service debt and to fund acquisitions and other capital expenditures and ability to pay dividends.

FFO does not represent net income or cash flows from operations as defined by generally accepted accounting principles ("GAAP") and is not intended to indicate whether cash flows will be sufficient to fund cash needs. It should not be considered as an alternative to net income as an indicator of the REIT's operating performance or to cash flows as a measure of liquidity. FFO does not measure whether cash flow is sufficient to fund all cash needs including principal amortization, capital improvements and distributions to shareholders. FFO also does not represent cash flows generated from operating, investing or financing activities as defined under GAAP. Management has consistently applied the NAREIT definition of FFO to all periods presented. However, there is judgment involved and other REITs' calculation of FFO may vary from the NAREIT definition for this measure, and thus their disclosures of FFO may not be comparable to the Company's calculation.

Essex Property Trust, Inc., located in Palo Alto, California and traded on the New York Stock Exchange ("ESS"), is a fully integrated real estate investment trust (REIT) that acquires, develops, redevelops, and manages multifamily residential properties in selected West Coast markets. Essex currently has ownership interests in 155 apartment communities with 5 communities under construction. Additional information about Essex can be found on the Company's web site at [ www.essexpropertytrust.com ]

Forward-Looking Statements: The statements, which are not historical facts, contained in this release are forward-looking statements including statements regarding the Company's beliefs and expectations relating to 2012 annual per diluted share GAAP earnings and Core FFO; 2012 same- property net operating income; 2012 interest expense; apartment market conditions; 2012 same- property operations; 2012 operating expenses; 2012 non-revenue generating capital expenditures; 2012 disposition activities; 2012 equity capital transactions; 2012 development and redevelopment activities, costs and yields and their contribution to net operating income; 2012 G&A expenses; 2012 management fee revenue; 2012 co-investment income; 2012 interest and other income; U.S. economic and Essex Market economic assumptions; the weighted average shares outstanding; growth in GDP and non-farm employment. These forward-looking statements involve risks and uncertainties which could cause actual results to differ materially from such forward-looking statements including, but not limited to, change in the Company's strategy, downturns in the real estate markets in which the Company owns properties, the effect of changes in economic conditions, the effect of changes in interest rates, the impact of competition and competitive pricing, the results of financing efforts, and other risks detailed in the Company's SEC filings. All forward-looking statements and reasons why results may differ included in this press release are made as of the date hereof, and we assume no obligation to update any such forward-looking statement or reason why actual results may differ. For more details relating to risks and uncertainties that could actual results to differ materially from those anticipated in our forward-looking statements, please refer to our SEC filings, including our Report on Form 10-K for the year ended December 31, 2010.