Essex Announces Stock Offering

Essex Property Trust, Palo Alto, Calif., has announced an agreement to sell 1 million shares of series F cumulative redeemable preferred shares to institutional investors advised by Lend Lease Rosen Real Estate Securities LLC.The stock is being offered at a fixed price of $24.664 per share, a discount from its $25-per-share liquidation value. The preferred shares will pay quarterly distributions at an annual interest rate of 7.8125% and will be redeemable by the company on or after Sept. 23, 2008. The shares are not convertible into common stock. "This transaction may well be the first of several preferred unit redemption transactions that could occur within the next year," said Michael J. Schall, Essex's chief financial officer. "These transactions, if and when completed, have the potential to significantly lower the company's cost of equity capital." Essex is a real estate investment trust that buys, develops, and manages West Coast multifamily residential properties. It can be found online at http://www.essexproperties.com.