PALO ALTO, Calif., Sept. 30 /PRNewswire-FirstCall/ -- Essex Property
Trust, Inc., (NYSE: ESS) a real estate investment trust (REIT) with apartment
communities located in targeted West Coast markets, announced today that it
has agreed to sell 1.6 million shares of common stock to Banc of America
Securities, LLC. All shares were offered by the Company.
Banc of America Securities, LLC will act as sole bookrunning underwriter
for the offering. The Company has also granted Banc of America Securities,
LLC an over-allotment option to purchase an additional 240,000 shares of its
common stock.
The net proceeds from this offering will be largely used for the
acquisition of multifamily communities located in the Company's targeted
West Coast markets -- primarily Southern California and the Seattle,
Washington metropolitan area. The Company has multifamily communities under
contract or subject to non-binding letters of intent containing 917 apartment
homes and having an anticipated aggregate contract price of approximately
$95.6 million. Assuming satisfactory resolution of all contingencies,
including the completion of Essex's due diligence, the Company anticipates
completing these acquisitions during the fourth quarter of 2003. However,
there can be no assurance that such acquisitions will be completed as
expected. In the event that such acquisitions are not completed, the Company
will use the net proceeds from this offering for general corporate purposes,
which may include the repayment of debt, the acquisition of other multifamily
communities, and development activities. Pending such uses, the Company may
reduce outstanding indebtedness under its line of credit facilities, or invest
in short-term, interest-bearing instruments.
The shares will be issued pursuant to an effective shelf registration
statement that was previously filed with the Securities and Exchange
Commission. This announcement shall not constitute an offer to sell or the
solicitation of an offer to buy nor shall there be any sale of these
securities in any state or other jurisdiction in which such offer,
solicitation or sale would be unlawful prior to registration or qualification
under the securities laws of any such state or other jurisdiction. Copies of
the prospectus relating to these securities may be obtained, when available,
from Banc of America Securities LLC, 9 West 57th Street, New York, New York
10019 or via e-mail at dlprospectusdistribution@bofasecurities.com.
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 117 multifamily properties
(25,095 units), and has 1,368 units in various stages of development.
The statements which are not historical facts contained in this release
such as the Company's beliefs and expectations regarding the Company's
financing transactions, the Company's expectations regarding the use of
proceeds, including the timing of future acquisitions of apartment properties
and the impact of such acquisitions on the Company's financial results and
funds from operations, are forward-looking statements that involve risks and
uncertainties which could cause actual results to be different than such
forward-looking statements including, but not limited to, market demand, the
effect of changes in economic conditions, the effect of changes in interest
rates and the demand for the Company's securities, the impact of competition
and competitive pricing, the results of financing efforts, the effect of the
Company's accounting policies and other risks detailed in the Company's
Securities and Exchange Commission 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.
CONTACT: Michael J. Schall, Chief Financial Officer, +1-650-849-1600, or
Mary C. Jensen, Director of Investor Relations, +1-650-849-1656, both of
Essex Property Trust, Inc.
SOURCE Essex Property Trust, Inc.
-0- 09/30/2003
/CONTACT: Michael J. Schall, Chief Financial Officer, +1-650-849-1600, or
Mary C. Jensen, Director of Investor Relations, +1-650-849-1656, both of
Essex Property Trust, Inc./
/Web site: http://www.essexpropertytrust.com /
(ESS)
CO: Essex Property Trust, Inc.; Banc of America Securities, LLC
ST: California
IN: FIN RLT
SU:
MP-JO
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3263 09/30/200316:21 EDThttp://www.prnewswire.com