Essex Announces Second Quarter 2005 Earnings Results

5 August 2005

Essex Property Trust, Inc., a Real Estate Investment Trust (REIT) with ownership
interests in apartment communities located in targeted West Coast markets,
today reported second quarter operating results for the period ended June 30,
2005.

Net income available to common stockholders for the quarter ended June 30,
2005 totaled $38.4 million, or $1.64 per diluted share, compared to net income
available to common stockholders of $5.2 million, or $0.23 per diluted share,
for the quarter ended June 30, 2004. Funds From Operations (FFO) per diluted
share increased 10.3 percent to $27.5 million, or $1.07 per diluted share for
the quarter ended June 30, 2005, from $24.6 million, or $0.97 per diluted
share for the quarter ended June 30, 2004.

Summarizing the second quarter results, Keith R. Guericke, President and
Chief Executive Officer of Essex Property Trust, Inc., stated, "Essex's
financial results continue to reflect improving multifamily fundamentals.
Occupancies are up from a year ago, which gives the Company the ability to
increase rents and ultimately produce positive same store results." Mr.
Guericke continued, "Opportunistic sales of apartment communities to condo
converters, and redevelopment projects are creating additional value,
contributing to the Company's positive quarterly results. We are pleased with
our second quarter results, and remain focused on seizing real estate
opportunities within supply-constrained markets along the West Coast."

FFO is a supplemental financial measurement defined by the National
Association of Real Estate Investment Trusts (NAREIT) to measure and compare
operating performance of equity REITs. A reconciliation of FFO to net income
(the most directly comparable measure in accordance with U.S. generally
accepted accounting principles) is included in the Company's supplemental
financial information, which can be obtained on the Company's web site. For a
more comprehensive definition of FFO, and an explanation as to why Essex
believes this is a useful measure of the Company's operating performance,
please refer to the last page of this press release.

The following one-time items impacted the Company's second quarter
results:

* The Company's gain resulting from the sale of Eastridge totaled
$28.5 million (not included in FFO).
* Recognition of a deferred gain in the amount of $3.9 million (not
included in FFO) representing payments received on the $5.0 million
participating loan that the Company originated in connection with
the prior-year sale of The Essex on Lake Merritt.
* Income generated by the Company's Taxable REIT Subsidiaries (TRS),
net of taxes and allocated expenses, totaled $1.8 million (included
in FFO). Allocated expenses include bonuses that are consistent with
original guidance.
* A charge of $1.5 million resulting from an employee-related
litigation settlement (included in FFO).

QUARTERLY RESULTS SUMMARY

Quarter Ended June 30,
2005 2004 Percent
Change
Property Revenues $78,896 $70,953 11.2%
Net Income Available to
Common Stockholders $38,390 $5,212 636.6%
Funds From Operations (FFO) $27,540 $24,604 11.9%

Per Diluted Share:
Net Income Per Share $1.64 $0.23 613.0%
FFO Per Share $1.07 $.97 10.3%

PORTFOLIO COMPOSITION

The following table compares Essex's regional concentrations for its
multifamily portfolio as of June 30, 2005 and June 30, 2004, which includes
all properties that are partially or wholly owned by the Company.

As of As of
June 30, 2005 June 30, 2004
Number of Number of
Apartment Homes % Apartment Homes %
Southern California 13,322 52 15,855 59
San Francisco Bay Area 6,170 24 4,605 17
Seattle Metro. Area 5,129 20 4,582 17
Portland Metro. Area 875 3 1,371 5
Other 302 1 578 2
Total 25,798 100 26,991 100

PROPERTY OPERATIONS

The following operating results are presented for the Company's same-
property portfolio, which excludes properties that do not have comparable
results for the second quarter of both 2005 and 2004. Comparable results may
not be available for properties that have been recently developed or
redeveloped and properties that have not been owned for both periods
presented.
The table below illustrates the percentage change in same-property
revenue, operating expenses, and net operating income for the quarter ended
June 30, 2005, compared to the quarter ended June 30, 2004, for the Company's
multifamily properties:

For the Quarter Ended 06/30/05
Operating
Revenue Expenses NOI
Southern California 5.5% 6.5% 5.1%
San Francisco Bay Area 0.6% -0.9% 1.2%
Pacific Northwest 2.4% -4.3% 6.2%
Same-Property Average 3.7% 2.2% 4.4%

A breakdown of the same-property financial occupancies for Essex's
multifamily properties is as follows:

For the Quarter Ended
6/30/05 3/31/05 6/30/04
Southern California 96.5% 96.2% 95.3%
San Francisco Bay Area 97.2% 96.9% 96.9%
Pacific Northwest 96.8% 96.7% 95.6%
Same-Property Average 96.7% 96.4% 95.7%

A breakdown of same-property concessions for Essex's multifamily
properties is as follows:

For the Quarter Ended
(in thousands)
6/30/05 3/31/05 6/30/04
Southern California $127.3 $143.4 $176.8
San Francisco Bay Area 116.2 256.0 100.2
Pacific Northwest 104.6 102.2 162.2
Same-Property Total 348.1 501.5 439.2

Concessions for the Company's consolidated portfolio were $472.7 for the
quarter ended June 30, 2005, compared to $799.3 for the quarter ended March
31, 2005, and $649.2 for the quarter ended June 30, 2004. Average same-
property concessions totaled $132 per turn for the quarter ended June, 2005,
compared to $238 per turn for the quarter ended March 31, 2005, and $163 per
turn for the quarter ended June 30, 2004.
The following is the sequential percentage change in same-property
revenues and expenses for the quarter ended June 30, 2005 versus the quarter
ended March 31, 2005:

Revenues Expenses
Southern California 1.2% -1.8%
San Francisco Bay Area 1.6% 2.2%
Pacific Northwest 0.3% -2.4%
All Same-Property 1.1% -1.1%

ACQUISITIONS

On June 17, 2005, the Company acquired Mission Hills Apartments, a 282-
unit apartment community located in Oceanside, California, for approximately
$50.5 million. Proceeds from the sale of Eastridge, a 188-unit apartment
community located in San Ramon, California, were utilized to fund the
transaction. The property is unencumbered.

DISPOSITIONS

On June 15, 2005 the Company sold Eastridge Apartments, a 188-unit garden-
style, suburban apartment community located in San Ramon, California for a
contract price of approximately $47.5 million. Essex acquired Eastridge in
1996 for $19.2 million. In conjunction with the sale, a taxable REIT
subsidiary (TRS) of Essex originated a participating loan to the buyer in the
amount of approximately $2.2 million, which allows the Company to financially
participate in the buyer's condominium conversion plan.
The company anticipates seeking out opportunities to sell select apartment
communities within its portfolio to condominium conversion buyers. During the
quarter the Company began a marketing process on five communities to these
types of buyers. Any sales resulting from these marketing efforts will be
disclosed at a later date via a public press release.

DEVELOPMENT

During the quarter, the Company had two development projects in various
stages of construction with combined estimated costs of $124.3 million. This
amount excludes development projects owned by the Essex Apartment Value Fund
II, L.P.

* Northwest Gateway is a proposed 5-story apartment building
aggregating 275 apartment homes, which is located in downtown Los
Angeles. Upon completion, the luxury apartment community will offer
220 market-rate units and 55 affordable-rate units. As of June 30,
2005, the development costs incurred to-date totaled $15.0 million
with estimated remaining costs totaling $56.1 million. The project
is a joint venture between Essex and Meta Housing Corporation, which
has obtained $47.0 million of tax-exempt bond financing, which will
be drawn to fund future construction costs. The Company originated a
$7.4 million mezzanine loan to the joint venture, which bears an
interest rate of 14.0 percent. The loan is subject to various
conditions and matures in December 2009. The Company has also
contributed approximately $3.2 million for its limited partnership
interest, which entitles the Company to 75 percent of the cash flow
up to a 22.67 percent priority return, and 50 percent of the cash
flow thereafter. The Company has provided a construction completion
guarantee in the amount of $4.8 million. Pursuant to FIN46(R), the
Company has consolidated this joint venture.
* Moorpark is a proposed 200-unit, Mediterranean-style apartment
building, located in Moorpark, California. The site is adjacent to
City Hall and is approximately a three-minute walk to the town
center area and the Metrolink train station, which provides direct
access to the greater Los Angeles basin and downtown employment
areas. Upon completion, this apartment community will offer a
combination of three story garden-style apartment homes with
attached garages as well as three-story podium buildings with
covered garage parking. As of June 30, 2005, estimated costs to
develop this community totaled $43.2 million, of which $4.3 million
has been expended. Construction is anticipated to begin in the
second quarter of 2006.

The Company does not anticipate any material contributions to Funds From
Operations (FFO) from development transactions in 2005. The Company's
development pipeline and stabilization assumptions can be found in the
Company's Second Quarter 2005 Supplemental Financial Reporting Package, on the
"Development Communities" page, which is available at
http://www.essexpropertytrust.com.

REDEVELOPMENT

The Company defines redevelopment communities as existing properties owned
or recently acquired, which have been targeted for additional investment by
the Company with the expectation of increased financial returns through
property improvement. Redevelopment communities typically have apartment
units that are not available for rent and, as a result, may have less than
stabilized operations. As of June 30, 2005, the Company had ownership
interests in six redevelopment communities aggregating 1,905 apartment units
with estimated redevelopment costs of $33.9 million, of which approximately
$23.1 million remains to be expended. These amounts exclude redevelopment
projects owned by the Essex Apartment Value Fund II, L.P.

* Hillcrest Park is a 608-unit apartment community located in Newbury
Park, California (Ventura County). During the quarter, the second
phase renovation involving the common amenities and certain unit
interiors was completed. This redevelopment plan has a potential
third, and final, phase that is currently in the municipal
entitlement stage. Once, and if approved, the Company would have the
option to construct up to 62 additional units.
* Kings Road is a 196-unit apartment community located in Los Angeles,
California that was built in 1971 and purchased by Essex in 1997.
During the quarter, upgrades to the property's leasing office were
well underway, which included an expanded clubroom and a new fitness
center. Other common amenity upgrades included a pool renovation and
the addition of a new spa. Interior renovations, which include new
cabinetry, flooring, appliances and fixtures, continued during the
quarter. More than half of the apartment units have been upgraded,
and the remaining units will be redeveloped as apartments become
vacant in the normal course of turnover. The common area amenities
and clubhouse upgrades are anticipated to be completed in the fourth
quarter of this year.
* Mira Woods is a 355-unit apartment community located in Mira Mesa,
California (San Diego County), which was built in 1982, and acquired
by Essex 2002. During the quarter, exterior enhancements began on
the building's fagade, as well as common hallways, which were
augmented with new carpet, lighting and re-designed doorframes to
individual units. Interior unit renovations commenced during the
quarter with upgraded appliances, new fixtures, resurfaced
countertops and kitchen cabinet upgrades. Completion of these
improvements is anticipated to occur during the fourth quarter of
this year. The existing leasing office and fitness center will be
remodeled, and carports are being erected where open parking
currently exists. These renovations are expected to be finished in
early 2006.
* Palisades is a 192-unit apartment community located in Bellevue,
Washington, which was built in 1977 and acquired by Essex in 1990.
During the quarter, the business center and fitness room renovation
was completed. Significant progress was made on the exterior and
roof renovations. Interior renovations commenced, and will include
countertop and cabinetry upgrades, new appliances and fixtures. This
project is anticipated to be complete in the third quarter of 2005.
* Avondale at Warner Center is a 446-unit apartment community located
in Woodland Hills, California. This property was built in 1970 and
acquired by Essex in 1999. During the quarter, upgrades to the
exteriors continued, and should be completed during the third
quarter. Common area hallway improvements included new entry doors,
carpeting, lighting, as well as elevator upgrades. The current
leasing office/community room space is being renovated, creating a
state-of-the-art fitness center, and a combination business
center/lounge, which will offer wireless high-speed Internet access
and three workstations with computers. Interior renovations include
cabinet re-facing, countertop replacements, new kitchen appliances
and new plumbing and electrical fixtures. Walk-in closets may be
upgraded with mirrored doors and built-in closet organizers.
* Bridle Trails is a 92-unit apartment community located in Kirkland,
Washington. This property was built in 1986 and acquired by Essex
in 1997. During the quarter, interior renovations commenced, and
will include cabinet re-facing, countertop replacements, new kitchen
appliances and new plumbing and electrical fixtures. Other upgrades
will include the renovation of the existing leasing office and
adding a new fitness center. The Company is in the process of
obtaining the entitlements necessary to construct 16 additional
units -- 4, 1-bedroom, 1-bath units, totaling approximately 750
square feet, and 12, 2-bedroom, 2-bath units totaling approximately
1,000 square feet.

FINANCING ACTIVITIES

During the quarter, the Company originated two mortgage loans totaling
$32.9, with interest rates of 5.44 percent that mature on May 1, 2014. Three
additional loans, secured by second deeds of trust, were obtained during the
quarter, totaling $12.9 million, with an average interest rate of 5.32% and
maturity dates ranging from May 1, 2009 to January 1, 2013.
Subsequent to June 30, 2005, the Company originated a mortgage loan
secured by Esplanade Apartments in the amount of $40.3 million, with an
interest rate of 4.93 percent, which matures on August 1, 2015.

ESSEX APARTMENT VALUE FUND, L.P.

Essex and several institutional partners formed the Essex Apartment Value
Fund ("Fund I") and ("Fund II") to broaden the Company's capital alternatives.
The Company's co-investment activities enhance its financial flexibility by
providing an alternative source of capital to fund new acquisition and
development transactions. Listed below are the Fund I and Fund II activities
that occurred during the quarter.

* FUND I: To-date, the Company has sold all sixteen apartment
communities, aggregating 4,646 units, which were provided for in the
purchase and sale agreement with United Dominion Realty Trust, Inc.
(UDR), for the agreed upon contract price of approximately $756
million. Fund I owns one remaining asset that is currently being
marketed for sale -- Kelvin Avenue, a land parcel, which is
permitted for the development of a 132-unit multifamily community,
located in Irvine, California.
* FUND II: On June 2, 2005, Fund II acquired a 173-unit high-rise
apartment community located in Seattle, Washington, for a contract
price of approximately $31.85 million. Tower @ 801 is a 25-story
apartment community with a subterranean parking structure that was
developed in 1970. The building's unique circular design boasts
magnificent views of Seattle's downtown skyline, Puget Sound, Lake
Union, the Cascade and Olympic Mountain Ranges, as well as views of
Mount Baker and Mount Rainier.

During the quarter, Fund II amended its revolving credit facility,
increasing its committed availability to $115 million.

OTHER COMPANY INFORMATION

Essex's total market capitalization as of June 30, 2005 was approximately
$3.6 billion. A detailed calculation of such market capitalization is included
in the Company's supplemental financial information, which can be obtained
from the Company's web site. The Company's mortgage notes payable had an
average maturity of 9.0 years and an average interest rate of 6.1 percent. As
of June 30, 2005, the Company's debt-to-total-market-capitalization ratio was
36.5 percent.
On May 10, 2005, the Company's Board of Directors declared a regular
quarterly cash dividend of $.81 per common share, payable July 15, 2005, to
shareholders of record as of June 30, 2005. On an annualized basis, the
dividend represents a distribution of $3.24 per common share.
In addition, the Board of Directors declared a quarterly distribution of
$0.48828 per share, which represents an annual distribution of $1.9531 per
share, on its 7.8125% Series F Cumulative Redeemable Preferred Shares.
Distributions are payable on September 1, 2005 to shareholders of record as of
August 17, 2005. The Series F Preferred Stock is listed on the Pacific Stock
Exchange under ticker symbol ESS-F.

GUIDANCE

The Company reaffirms its 2005 FFO range of $4.47 to $4.53 per diluted
share, which was increased in its first quarter earnings press release, dated
May 4, 2005, from a press release dated December 17, 2004, where the Company
estimated that 2005 Funds From Operations (FFO) would range from $4.37 to
$4.45 per diluted share.
Property operations continue to perform better than the estimated range of
its May 4, 2005 guidance. However, this positive impact was offset by the non-
recurring employee-related litigation settlement of $1.5 million, which was
not included in previous FFO estimates.

CONFERENCE CALL WITH MANAGEMENT

The Company will host an earnings conference call with management on
Thursday, August 4, 2005, at 10:00 a.m. PDT - 1:00 p.m. EDT, which will be
broadcast live via the Internet at http://www.essexpropertytrust.com, and accessible
via phone by dialing 800-811-0667 -- a pass code is not required.
A rebroadcast of the live call will be available online for 90 days and
digitally for 7 days. To access the replay online, go to
http://www.essexpropertytrust.com and select the second quarter earnings link. To
access the replay digitally, dial 888-203-1112 using the passcode, 148717. If
you are unable to access the information via the Company's Web site, please
contact the Investor Relations department at investors@essexpropertytrust.com
or by calling 650-494-3700.

COMPANY PROFILE

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 communities. Essex
currently has ownership interests in 122 multifamily properties (25,548
units), and has 607 units in various stages of development.

This press release and accompanying supplemental financial information has
been filed electronically on Form 8-K with the Securities and Exchange
Commission and can be accessed from the Company's Web site at
http://www.essexpropertytrust.com. If you are unable to obtain the information via
the Web, please contact the Investor Relations Department at (650) 494-3700.

Funds from Operations
Funds from Operations, 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 performance and ability of a REIT to incur and service
debt and to fund acquisitions and other capital expenditures. 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 Funds from Operations to all periods presented, however,
Funds from Operations as disclosed by other REITs may not be comparable to the
Company's calculation of FFO.

Safe Harbor Statement under the Private Securities Litigation Reform Act
of 1995:
This press release includes "forward-looking statements" within the
meaning of Section 27A of the Securities Act of 1933, as amended, and Section
21E of the Securities Exchange Act of 1934, as amended. Such forward-looking
statements include statements regarding 2005 FFO per share estimates, trends
in apartment fundamentals, future improvements in our operating results and
our same store results, anticipated timing and costs of the completion and
stabilization of property developments and redevelopments, the Company's
projected development projects in 2005, potential sales of our properties to
condominium conversion buyers, the anticipated closing date of the sale of our
River Terrace property, and future construction costs. The Company's actual
results may differ materially from those projected in such forward-looking
statements. Factors that might cause such a difference include, but are not
limited to, changes in market demand for rental units and the impact of
competition and competitive pricing, changes in economic conditions,
unexpected delays in the development and stabilization of development and
redevelopment projects, unexpected difficulties in leasing of development and
redevelopment projects, total costs of renovation and development investments
exceeding our projections and other risks detailed in the Company's filings
with the Securities and Exchange Commission (SEC). All forward-looking
statements are made as of today, and the Company assumes no obligation to
update this information. For more details relating to risk and uncertainties
that could cause actual results to differ materially from those anticipated in
our forward-looking statements, and risks to our business in general, please
refer to our SEC filings, including our most recent Report on Form 10-K for
the year ended December 31, 2004.

Mary C. Jensen
Director of Investor Relations
650-849-1656