Since its founding in 1971, Essex has developed a clearly defined approach for creating value and managing risk. Essex's approach has three components-a strong financial condition, a sound real estate strategy, and an experienced management team. These three factors have contributed to the company's historical results and future growth potential.
Financial Condition
The company's balance sheet is among the strongest in the real estate industry. This strength is demonstrated by low leverage, a preference for long-term and fixed rate debt, and conservative coverage of interest and dividend payments. Because of its solid financial condition, Essex is able to draw upon a wide range of capital alternatives for financing the external component of its growth strategy. A flexible capital structure enhances the company to lower the cost of capital, thereby increasing the returns from real estate investments.
Real Estate Strategy
Essex's real estate strategy is different from, and we believe better than, that of other REIT's. Developed long before Essex became a public company in 1994, the strategy has been tested in various market cycles and conditions. Essex's real estate strategy relies on extensive market research underlying the company's market selection process and comprehensive acquisitions, development and redevelopment, management and capabilities.
Experienced Management
Essex's management team consists of dedicated professionals responsible for executing a focused investment strategy. The company's senior executives have worked together at Essex for 18 years. From offices located in Palo Alto, Woodland Hills, and Irvine, California and Bellevue, Washington, Essex employees cover all major functional areas essential to a successful real estate organization.
