ESSEX PROPERTY TRUST, INC. (ESS) Risk Factors

Recent key developments

Concrete developments — dated events, named agreements and instruments, legal proceedings — that ESSEX PROPERTY TRUST, INC. surfaced in its latest filing.

• Purported anti-trust class actions were filed against RealPage, Inc. and various lessors of multifamily housing, including the Company, alleging collusion to artificially increase rents.
• The Company is subject to legal and regulatory proceedings including class actions and PAGA claims.
• The Board irrevocably exempted business combinations with Mr. Marcus, MMC, or entities owned or controlled by them from the Maryland Business Combination Act restrictions.
• The Company has a commercial paper program and an unsecured line of credit with a diversified bank group.
• The Company uses interest rate swaps and interest rate caps to manage interest rate risks.
• The Company manages its debt under unsecured bank facilities and senior unsecured bonds.
• The Company self-insures certain earthquake and property losses through its wholly owned insurance subsidiary, Pacific Western Insurance LLC.
• The Company has elected to be taxed as a REIT.
• Multiple subsidiaries have elected to be taxed as REITs.
• Disposals of real properties in transactions intended to qualify as like-kind exchanges under Section 1031.
• Partnership tax audit rules apply to Essex Portfolio, L.P. and its subsidiaries.
• Tax-exempt bond financing documents require a guarantee from a financial institution.