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|        California                                                                | 77-0369575                                   |
|---------------------------------------------------------------------------------------|----------------------------------------------|
|        (State or Other Jurisdiction of Incorporation or      Organization)  | (I.R.S.      Employer Identification Number) |

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| Large      accelerated filer [X] | Accelerated      filer [   ] | Non-accelerated      filer [   ](Do      not check if a smaller reporting company) | Smaller      reporting company [  ] |
|----------------------------------|----------------------------------------|----------------------------------------------------------------------------------------------|-----------------------------------------------|

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| Part      I.   |                                                                                                                   | Page   |
|----------------|------------------------------------------------------------------------------------------------------------------------|--------|
| Item      1.   | Business                                                                                                               | 1      |
| Item      1A.  | Risk      Factors                                                                                                      | 8      |
| Item      1B.  | Unresolved      Staff Comments                                                                                         | 18     |
| Item      2.   | Properties                                                                                                             | 18     |
| Item      3.   | Legal      Proceedings                                                                                                 | 24     |
| Item      4.   | Submission      of Matters to a Vote of Security Holders                                                               | 24     |
| Part      II.  |                                                                                                                   |   |
| Item      5.   | Market      for Registrant's Common Equity, Related Stockholder Matters and Issuer      Purchases of Equity Securities | 25     |
| Item      6.   | Selected      Financial Data                                                                                           | 26     |
| Item      7.   | Management's      Discussion and Analysis of Financial Condition and Results of      Operations                        | 29     |
| Item      7A.  | Quantitative      and Qualitative Disclosures About Market Risks                                                       | 39     |
| Item      8.   | Financial      Statements and Supplementary Data                                                                       | 40     |
| Item      9.   | Changes      in and Disagreements with Accountants on Accounting and Financial      Disclosure                         | 40     |
| Item      9A.  | Controls      and Procedures                                                                                           | 40     |
| Item      9B.  | Other      Information                                                                                                 | 40     |
| Part      III. |                                                                                                                   |   |
| Item      10.  | Directors,      Executive Officers and Corporate Governance                                                            | 41     |
| Item      11.  | Executive      Compensation                                                                                            | 41     |
| Item      12.  | Security      Ownership of Certain Beneficial Owners and Management and Related      Stockholder Matters               | 41     |
| Item      13.  | Certain      Relationships and Related Transactions , and Director      Independence                                   | 41     |
| Item      14.  | Principal      Accounting Fees and Services                                                                            | 41     |
| Part      IV.  |                                                                                                                   |   |
| Item      15.  | Exhibits      and Financial Statement Schedules                                                                        | 42     |
| Signatures     |                                                                                                                   | S-1    |

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| ·   | Maximizing      property income by maintaining a high level of occupancy while increasing      rental income; |
|--------------------|---------------------------------------------------------------------------------------------------------------|

| ·   | Expanding      our Portfolio through acquisitions, development and, when appropriate,      redevelopment of  apartment communities in selected major      metropolitan areas; |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Optimizing      financial performance through a portfolio asset allocation program, and to      increase or decrease investments in a market based on projected changes in      regional economic and local market conditions;  and |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Maintaining      a strong balance sheet by identifying and utilizing capital resources that      provide positive leverage (i.e. investment yield that exceeds capital      cost). |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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| ·   | Markets      in major metropolitan areas that have regional population primarily in      excess of one million,  thereby creating liquidity, which is an      important element when modifying the geographic concentration of the      Operating Partnership’s portfolio in response to changing market      conditions; |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Constraints      on new supply driven by: (i) low availability of developable land sites      where competing housing could be built; (ii) political growth barriers,      such as protected land, urban growth boundaries, and potential lengthy and      expensive development permit processes; and (iii) natural limitations to      development, such as mountains orwaterways; |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Rental      demand is enhanced by affordability of rents compared to expensive      for-sale housing; and |
|--------------------|-----------------------------------------------------------------------------------------------------------|

| ·   | Housing      demand that is based on proximity to jobs, high quality of life and      related commuting factors, as well as potential job  growth. |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Property Management– The Chief      Operating Officer, Divisional Managers, Regional Portfolio Managers and      Area Managers are accountable for the performance and maintenance of the      Properties. They supervise, provide training for the on-site managers,      manage budgeted expectations against performance, monitor market trends      and prepare operating and capitalbudgets. |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Capital Preservation –      The Capital and Maintenance department is responsible for the planning,      budgeting and completion of major deferred maintenance and capital      improvement projects at ourProperties. |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Business Planning and Control      – Comprehensive business plans are implemented in conjunction with      every investment decision.  These plans include benchmarks for      future financial performance, based on collaborative discussions between      on-site managers and seniormanagement. |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Development and Redevelopment  - We focus on acquiring and developing apartment      communities in supply constrained markets, and redeveloping our existing      communities to improve the financial and physical aspects of our      communities. |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | In      March 2007, the Operating Partnership acquired two adjacent apartment      communities aggregating 108 units located in Santa Barbara, California for      approximately $21.2 million. Lucero Village, built in 1973, consists of      70-units and The Continental, built in 1965, consists of      38-units. |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | In      April 2007, the Operating Partnership acquired Cardiff by the Sea      Apartments located in Cardiff, California for $72.0 million. The      community, which is in Northern San Diego County, consists of 300-units      and was built in 1986. |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | In      May 2007, the Operating Partnership acquired Coldwater Canyon apartments      for $8.3 million.  Built in 1979, the property consists of      39-units located in Studio City,California. |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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| ·   | In      March 2007, the Operating Partnership acquired Harvest Park apartments,      built in 2004 with a condominium map for $22.5 million. This apartment      community has 104-units and is located in Santa Rosa,      California. |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | In      May 2007, the Operating Partnership acquired Canyon Oaks apartments,      located in San Ramon, California, for $64.3 million.  Built in      2005 and consisting of 250-units, the property is within Windermere, a      master planned community, and is the sister property to Mill Creek at      Windermere, acquired in September2007. |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | In      June 2007, the Operating Partnership acquired Magnolia Lane, built in      2001, for $5.4 million.  The property is a 32-unit community      subject to a ground lease that expires in 64 years and is adjacent to      Thomas Jefferson, another Essex community, purchased in September      2007. |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | In      September 2007, the Operating Partnership acquired Mill Creek at      Windermere, a 400-unit community located in San Ramon, California, for      $100.5 million. Built in 2005, the property is located within Windermere,      a master planned community, and is the sister property to Canyon Oaks,      acquired during the second quarter of2007. |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | The      Operating Partnership also acquired Thomas Jefferson Apartments in      September 2007 for $28.0 million in a DownREIT transaction that included      issuing 7,006 DownREIT units to a related party. The community, which was      managed by Essex before the acquisition, is a 156-unit apartment complex      located in Sunnyvale, California. Built in 1963, the property is located      adjacent to Magnolia Lane, another Essex community, purchased in June      2007. |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | In      June 2007, the Operating Partnership acquired The Cairns, a 100-unit      property built in 2005 and located in the Lake Union area of Seattle, for      $28.1 million. |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | In      February 2007, the Operating Partnership sold the joint venture property      City Heights Apartments, a 687-unit community located in Los Angeles,      California for $120.0 million. The Operating Partnership’s share of the      proceeds from the sale totaled $33.9 million, resulting in a $13.7 million      gain on sale to the Operating Partnership, and an additional $10.3 million      for fees from the joint venture partner, both of which are included in      income from discontinuedoperations. |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | The      Operating Partnership sold the 21 remaining condominium units at Peregrine      Point during the first three quarters of 2007, resulting in a gain of $1.0      million net of taxes and expenses. |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | In      December 2007, the Operating Partnership sold four communities (875-units)      in the Portland metropolitan area for $97.5 million, resulting in a gain      of $47.6 million net of minority interest.  The proceeds from      the sale were used in a tax-free reverse exchange for the purchase of Mill      Creek at Windermere in September2007. |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | In      January 2008, the Operating Partnership collected $7.5 million and      recognized income of $6.3 million from the sale of its preferred interest      in Waterstone at Fremont Apartments, located in Fremont,      California. |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|                                                                                   |   |                 |   |   |   |   | As      of 12/31/07 ($ in millions) |   |   |
|----------------------------------------------------------------------------------------|--------|----------------------|--------|--------|--------|--------|-------------------------------------|--------|--------|
|                                                                                   |   |                 |   |   |   |   | Estimated                           |   |   | Incurred |   | Projected |
| Development      Pipeline                                                              |   | Location             |   | Units  |   |   | Project      Cost(1)                |   |   | Project      Cost |   | Stabilization |
| Development      Projects                                                              |   |                 |   |   |   |   |                                |   |   |   |   |   |
|     Belmont      Station                                           |   | Los      Angeles, CA |   | 275    |   | $      | 71.1                                |   | $      | 55.5 |   | Dec-08 |
|     The      Grand                                                 |   | Oakland,      CA     |   | 238    |   |   | 96.2                                |   |   | 42.0 |   | May-09 |
|     Fourth      Street                                             |   | Berkeley,      CA    |   | 171    |   |   | 69.4                                |   |   | 13.4 |   | Aug-10 |
|                                                                                   |   |                 |   | 684    |   |   | 236.7                               |   |   | 110.9 |   |   |
| Predevelopment      projects                                                           |   | various              |   | 1,658  |   |   | 508.4                               |   |   | 97.1 |   | Nov-10      to Jul-14 |
| Land      held for future development                                                  |   | various              |   | 434    |   |   | 25.5                                |   |   | 25.5 |   |       - |
|         Consolidated      Development Pipeline |   |                 |   | 2,776  |   | $      | 770.6                               |   | $      | 233.5 |   |   |

|                                                                                                      |   |                        |   |   |   |   | As      of 12/31/07 ($ in thousands) |
|-----------------------------------------------------------------------------------------------------------|--------|-----------------------------|--------|--------|--------|--------|--------------------------------------|
|                                                                                                      |   |                        |   |   |   |   | Estimated                            |   |   | Incurred |
| Redevelopment      Pipeline                                                                               |   | Location                    |   | Units  |   |   | Renovation      Cost(1)              |   | Project      Cost |
| Southern      California                                                                                  |   |                        |   |   |   |   |                                 |   |   |   |
|     Avondale      at Warner Center                                                    |   | Woodland      Hills, CA     |   | 446    |   | $      | 14,070                               |   | $ | 11,188 |
|     Highridge                                                                         |   | Rancho      Palos Verde, CA |   | 255    |   |   | 16,063                               |   |   | 1,976 |
|     Mira      Monte                                                                   |   | Mira      Mesa, CA          |   | 355    |   |   | 6,060                                |   |   | 5,900 |
|     Pathways                                                                          |   | Long      Beach, CA         |   | 296    |   |   | 10,721                               |   |   | 5,788 |
| Northern      California                                                                                  |   |                        |   |   |   |   |                                 |   |   |   |
|     Boulevard      (Treetops)                                                         |   | Fremont,      CA            |   | 172    |   |   | 8,387                                |   |   | 5,757 |
|     Bridgeport      (Summerhill Commons)                                              |   | Newark,      CA             |   | 184    |   |   | 4,586                                |   |   | 3,869 |
|     Marina      Cove                                                                  |   | Santa      Clara, CA        |   | 292    |   |   | 9,858                                |   |   | 805 |
|     Montclaire      (Oak Pointe) - Phase I-III                                        |   | Sunnyvale,      CA          |   | 390    |   |   | 15,106                               |   |   | 5,688 |
|     Wimbledon      Woods                                                              |   | Hayward,      CA            |   | 560    |   |   | 9,350                                |   |   | 7,195 |
| Seattle      Metro                                                                                        |   |                        |   |   |   |   |                                 |   |   |   |
|     Palisades      - Phase I and II                                                   |   | Bellevue,      WA           |   | 192    |   |   | 6,951                                |   |   | 6,461 |
|     Sammamish      View(2)                                                            |   | Bellevue,      WA           |   | 153    |   |   | 3,875                                |   |   | 3,875 |
|     Woodland      Commons                                                             |   | Bellevue,      WA           |   | 236    |   |   | 11,779                               |   |   | 1,240 |
|     Foothill      Commons                                                             |   | Bellevue,      WA           |   | 360    |   |   | 18,804                               |   |   | 1,298 |
|             Total      Redevelopment Pipeline |   |                        |   | 3,891  |   | $      | 135,610                              |   | $ | 61,040 |

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|                                                                                              |   |                 |   |   |   |   | As      of 12/31/07 ($ in millions) |   |   |
|---------------------------------------------------------------------------------------------------|--------|----------------------|--------|--------|--------|--------|-------------------------------------|--------|--------|
|                                                                                              |   |                 |   |   |   |   | Estimated                           |   |   | Incurred |   | Projected |
| Development      Pipeline - Fund II                                                               |   | Location             |   | Units  |   |   | Project      Cost(1)                |   |   | Project      Cost |   | Stabilization |
| Development      Projects                                                                         |   |                 |   |   |   |   |                                |   |   |   |   |   |
|     Eastlake      2851 on Lake Union                                          |   | Seattle,      WA     |   | 127    |   | $      | 35.4                                |   | $      | 24.7 |   | Jul-08 |
|     Studio      40-41                                                         |   | Studio      City, CA |   | 149    |   |   | 60.6                                |   |   | 30.7 |   | Aug-09 |
|     Cielo                                                                     |   | Chatsworth,      CA  |   | 119    |   |   | 39.4                                |   |   | 12.3 |   | Sep-09 |
|           Fund      II - Development Pipeline   |   |                 |   | 395    |   | $      | 135.4                               |   | $      | 67.7 |   |   |
| Redevelopment      Pipeline - Fund II                                                             |   |                 |   |   |   |   |                                |   |   |   |   |   |
| Redevelopment      Projects                                                                       |   |                 |   |   |   |   |                                |   |   |   |   |   |
|     Regency      Tower - Phase I - II                                         |   | Oakland,      CA     |   | 178    |   | $      | 4.5                                 |   | $      | 3.7 |   |   |
|     The      Renaissance                                                      |   | Los      Angeles, CA |   | 168    |   |   | 5.0                                 |   |   | 3.6 |   |   |
|           Fund      II - Redevelopment Pipeline |   |                 |   | 346    |   | $      | 9.5                                 |   | $      | 7.3 |   |   |
|                                                                                              |   |                 |   |   |   |   |                                |   |   |   |   |   |

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| ·   | cash      flow may not be sufficient to meet required payments of principal and      interest; |
|--------------------|------------------------------------------------------------------------------------------------|

| ·   | inability      to refinance maturing indebtedness on encumbered    properties; |
|--------------------|--------------------------------------------------------------------------------|

| ·   | the      terms of any refinancing may not be as favorable as the terms of existing      indebtedness; |
|--------------------|-------------------------------------------------------------------------------------------------------|

| ·   | inability      to comply with debt covenants could cause an acceleration of the maturity      date; and |
|--------------------|---------------------------------------------------------------------------------------------------------|

| ·   | repaying      debt before the scheduled maturity date could result in prepayment      penalties. |
|--------------------|--------------------------------------------------------------------------------------------------|

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| ·   | the      general economic climate; |
|--------------------|------------------------------------|

| ·   | local      economic conditions in which the Properties are located, such as      oversupply of housing or a reduction in demand for rental      housing; |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | the      attractiveness of the properties totenants; |
|--------------------|------------------------------------------------------|

| ·   | competition      from other available space; and |
|--------------------|--------------------------------------------------|

| ·   | the      Operating Partnership’s ability to provide for adequate maintenance and      insurance. |
|--------------------|--------------------------------------------------------------------------------------------------------|

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| ·   | funds      may be expended and management's time devoted to projects that may not be      completed; |
|--------------------|------------------------------------------------------------------------------------------------------|

| ·   | construction      costs of a project may exceed original estimates possibly making the      project economically unfeasible; |
|--------------------|------------------------------------------------------------------------------------------------------------------------------|

| ·   | projects      may be delayed due to, without limitation, adverse weather conditions,      entitlement and government regulations, labor shortages, or unforeseen      complications; |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | occupancy      rates and rents at a completed project may be less than anticipated;      and |
|--------------------|----------------------------------------------------------------------------------------------|

| ·   | expenses      at projects may be higher thananticipated. |
|--------------------|----------------------------------------------------------|

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| ·   | we      would not be able to pay our indebtedness as it becomes due in the usual      course of business; or |
|--------------------|--------------------------------------------------------------------------------------------------------------|

| ·   | our      total assets would be less than our total liabilities, including the      liquidation preference on our Series B, Series D, Series F, and Series G      preferred stock. |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | A      registration statement, declared effective in 2003, which covers the      resale of certain shares, including (i) up to 2,270,490 shares of common      stock that are issuable upon exchange of limited partnership interests in      the Operating Partnership and (ii) up to 1,473,125 shares that are      issuable upon exchange of limited partnership interests in certain other      real estate partnerships; |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Registration      statements, declared effective in 2006, that cover (i) the resale of up to      142,076 shares issuable in connection with our Waterford and Vista      Belvedere acquisitions and (ii) the resale of shares issuable in      connection with the exchange rights of our 3.625% Exchangeable Senior      Notes, as to which there is a principal amount of $225 million      outstanding. |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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| ·   | authorize      or create any class or series of stock that ranks senior to such preferred      stock with respect to the payment of dividends, rights upon liquidation,      dissolution or winding-up of ourbusiness; |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | amend,      alter or repeal the provisions of the Company’s Charter or Bylaws,      including by merger or consolidation, that would materially and adversely      affect the rights of such series of preferred stock;  or |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | in      the case of the preferred stock into which our preferred units are      exchangeable, merge or consolidate with another entity or transfer      substantially all of its assets to another entity, except if such      preferred stock remains outstanding with the surviving entity and has the      same terms and in certain othercircumstances. |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | the      Company completes a “going private” transaction and its common stock is no      longer registered under the Securities Exchange Act of 1934, as      amended; |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | the      Company completes a consolidation or merger or sale of substantially all      of its assets and the surviving entity’s debt securities do not possess an      investment grade rating; |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | the      Company fails to qualify as a REIT;or |
|--------------------|------------------------------------------------|

| ·   | in      the case of Series G preferred stock, The Company common stock is not      traded on a major exchange. |
|--------------------|----------------------------------------------------------------------------------------------------------------|

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| ·   | 80%      of the votes entitled to be cast by holders of outstanding voting shares;      and |
|--------------------|---------------------------------------------------------------------------------------------|

| ·   | Two-thirds      of the votes entitled to be cast by holders of outstanding voting shares      other than shares held by the interested stockholder with whom the      business combination is to beeffected. |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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| ·   | our      partners in Fund II might remove the Operating Partnership as the general      partner of Fund II; |
|--------------------|-------------------------------------------------------------------------------------------------------------|

| ·   | our      partners in Fund II might become bankrupt (in which event we might become      generally liable for the liabilities of Fund  II); |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | our      partners in Fund II might have economic or business interests or goals      that are inconsistent with our business interests or  goals; |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | our      partners in Fund II might fail to fund capital commitments as      contractually required; or |
|--------------------|--------------------------------------------------------------------------------------------------------|

| ·   | our      partners in Fund II might fail to approve decisions regarding Fund II that      are in the Operating Partnership’s  best    interest. |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------|

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| ·   | that      the value of mortgaged property may be less than the amounts owed, causing      realized or unrealized losses; |
|--------------------|--------------------------------------------------------------------------------------------------------------------------|

| ·   | the      borrower may not pay indebtedness under the mortgage when due, requiring      us to foreclose, and the amount recovered in connection with the      foreclosure may be less than the amountowed; |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | that      interest rates payable on the mortgages may be lower than our cost of      funds; and |
|--------------------|-------------------------------------------------------------------------------------------------|

| ·   | in      the case of junior mortgages, that foreclosure of a senior mortgage would      eliminate the junior mortgage. |
|--------------------|-----------------------------------------------------------------------------------------------------------------------|

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| ·   | located      near employment centers |
|--------------------|--------------------------------------|

| ·   | well      built communities that have been well maintained since acquisition;      and |
|--------------------|----------------------------------------------------------------------------------------|

| ·   | proactive      customer service approach. |
|--------------------|-------------------------------------------|

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|                           |   |                      |   |   |    | Rentable |   |         |   |     |   |         |
|--------------------------------|--------|---------------------------|--------|--------|---------|----------|--------|--------------|--------|----------|--------|--------------|
|                           |   |                      |   |   |    | Square   |   | Year         |   | Year     |   |         |
| Apartment      Communities (1) |   | Location                  |   | Units  |    | Footage  |   | Built        |   | Acquired |   | Occupancy(2) |
| Southern      California       |   |                      |   |   |    |     |   |         |   |     |   |         |
| Alpine      Country            |   | Alpine,      CA           |   | 108    |    | 81,900   |   | 1986         |   | 2002     |   | 94%          |
| Alpine      Village            |   | Alpine,      CA           |   | 306    |    | 254,400  |   | 1971         |   | 2002     |   | 96%          |
| Barkley,      The(3)(4)        |   | Anaheim,      CA          |   | 161    |    | 139,800  |   | 1984         |   | 2000     |   | 97%          |
| Bonita      Cedars             |   | Bonita,      CA           |   | 120    |    | 120,800  |   | 1983         |   | 2002     |   | 98%          |
| Camarillo      Oaks            |   | Camarillo,      CA        |   | 564    |    | 459,000  |   | 1985         |   | 1996     |   | 96%          |
| Camino      Ruiz Square        |   | Camarillo,      CA        |   | 160    |    | 105,448  |   | 1990         |   | 2006     |   | 97%          |
| Mountain      View             |   | Camarillo,      CA        |   | 106    |    | 83,900   |   | 1980         |   | 2004     |   | 98%          |
| Cardiff      by the Sea        |   | Cardiff,      CA          |   | 300    |    | 284,460  |   | 1986         |   | 2007     |   | 97%          |
| Cambridge                      |   | Chula      Vista, CA      |   | 40     |    | 22,100   |   | 1965         |   | 2002     |   | 96%          |
| Woodlawn      Colonial         |   | Chula      Vista, CA      |   | 159    |    | 104,500  |   | 1974         |   | 2002     |   | 93%          |
| Mesa      Village              |   | Clairemont,      CA       |   | 133    |    | 43,600   |   | 1963         |   | 2002     |   | 99%          |
| Parcwood(5)                    |   | Corona,      CA           |   | 312    |    | 270,000  |   | 1989         |   | 2004     |   | 95%          |
| Coral      Gardens             |   | El      Cajon, CA         |   | 200    |    | 182,000  |   | 1976         |   | 2002     |   | 94%          |
| Tierra      del Sol/Norte      |   | El      Cajon, CA         |   | 156    |    | 117,000  |   | 1969         |   | 2002     |   | 97%          |
| Grand      Regency             |   | Escondido,      CA        |   | 60     |    | 42,400   |   | 1967         |   | 2002     |   | 98%          |
| Valley      Park(6)            |   | Fountain      Valley, CA  |   | 160    |    | 169,700  |   | 1969         |   | 2001     |   | 96%          |
| Capri      at Sunny Hills(6)   |   | Fullerton,      CA        |   | 100    |    | 128,100  |   | 1961         |   | 2001     |   | 97%          |
| Wilshire      Promenade        |   | Fullerton,      CA        |   | 149    |    | 128,000  |   | 1992(7)      |   | 1997     |   | 94%          |
| Montejo(6)                     |   | Garden      Grove, CA     |   | 124    |    | 103,200  |   | 1974         |   | 2001     |   | 97%          |
| CBC      Apartments            |   | Goleta,      CA           |   | 148    |    | 91,538   |   | 1962         |   | 2006     |   | 98%          |
| Chimney      Sweep Apartments  |   | Goleta,      CA           |   | 91     |    | 88,370   |   | 1967         |   | 2006     |   | 95%          |
| Hampton      Court (Columbus)  |   | Glendale,      CA         |   | 83     |    | 71,500   |   | 1974(8)      |   | 1999     |   | 94%          |
| Hampton      Place (Lorraine)  |   | Glendale,      CA         |   | 132    |    | 141,500  |   | 1970(9)      |   | 1999     |   | 95%          |
| Devonshire                     |   | Hemet,      CA            |   | 276    |    | 207,200  |   | 1988         |   | 2002     |   | 92%          |
| Huntington      Breakers       |   | Huntington      Beach, CA | 342    |   | 241,700 |     | 1984   |         | 1997   |     | 97%    |
| Hillsborough      Park         |   | La      Habra, CA         |   | 235    |    | 215,500  |   | 1999         |   | 1999     |   | 96%          |
| Trabuco      Villas            |   | Lake      Forest, CA      |   | 132    |    | 131,000  |   | 1985         |   | 1997     |   | 98%          |
| Marbrisa                       |   | Long      Beach, CA       |   | 202    |    | 122,800  |   | 1987         |   | 2002     |   | 97%          |
| Pathways                       |   | Long      Beach, CA       |   | 296    |    | 197,700  |   | 1975(10)     |   | 1991     |   | 85%          |
| Bunker      Hill               |   | Los      Angeles, CA      |   | 456    |    | 346,600  |   | 1968         |   | 1998     |   | 96%          |
| Cochran      Apartments        |   | Los      Angeles, CA      |   | 58     |    | 51,400   |   | 1989         |   | 1998     |   | 93%          |
| Kings      Road                |   | Los      Angeles, CA      |   | 196    |    | 132,100  |   | 1979(11)     |   | 1997     |   | 96%          |
| Marbella,      The             |   | Los      Angeles, CA      |   | 60     |    | 50,108   |   | 1991         |   | 2005     |   | 90%          |
| Marina      City Club(12)      |   | Los      Angeles, CA      |   | 101    |    | 127,200  |   | 1971         |   | 2004     |   | 95%          |
| Park      Place                |   | Los      Angeles, CA      |   | 60     |    | 48,000   |   | 1988         |   | 1997     |   | 93%          |
| Renaissance,      The(5)       |   | Los      Angeles, CA      |   | 168    |    | 154,268  |   | 1990(13)     |   | 2006     |   | 84%          |
| Windsor      Court             |   | Los      Angeles, CA      |   | 58     |    | 46,600   |   | 1988         |   | 1997     |   | 93%          |
| Mirabella(14)                  |   | Marina      Del Rey, CA   |   | 188    |    | 176,800  |   | 2000         |   | 2000     |   | 98%          |
| Mira      Monte                |   | Mira      Mesa, CA        |   | 355    |    | 262,600  |   | 1982(15)     |   | 2002     |   | 96%          |
| Hillcrest      Park            |   | Newbury      Park, CA     |   | 608    |    | 521,900  |   | 1973(16)(17) | 1998   |     | 96%    |
| Fairways(18)                   |   | Newport      Beach, CA    |   | 74     |    | 107,100  |   | 1972         |   | 1999     |   | 90%          |
| Country      Villas            |   | Oceanside,      CA        |   | 180    |    | 179,700  |   | 1976         |   | 2002     |   | 97%          |
| Mission      Hills             |   | Oceanside,      CA        |   | 282    |    | 244,000  |   | 1984         |   | 2005     |   | 97%          |
| Mariner's      Place           |   | Oxnard,      CA           |   | 105    |    | 77,200   |   | 1987         |   | 2000     |   | 98%          |
| Monterey      Villas           |   | Oxnard,      CA           |   | 122    |    | 122,100  |   | 1974(19)     |   | 1997     |   | 98%          |
| Tierra      Vista              |   | Oxnard,      CA           |   | 404    |    | 387,100  |   | 2001         |   | 2001     |   | 96%          |
| Monterra      del Mar          |   | Pasadena,      CA         |   | 123    |    | 74,400   |   | 1972(20)     |   | 1997     |   | 94%          |
| Monterra      del Rey          |   | Pasadena,      CA         |   | 84     |    | 73,100   |   | 1972(21)     |   | 1999     |   | 92%          |
| Monterra      del Sol          |   | Pasadena,      CA         |   | 85     |    | 69,200   |   | 1972(22)     |   | 1999     |   | 96%          |
| Villa      Angelina(6)         |   | Placentia,      CA        |   | 256    |    | 217,600  |   | 1970         |   | 2001     |   | 97%          |
|                           |   |                      |   |   |    |     |   |         |   |     |   | (continued)  |

----

|                                            |   |                         |   |   |    | Rentable   |     |                       |   |     |   |         |
|-------------------------------------------------|--------|------------------------------|--------|--------|---------|------------|----------|----------------------------|--------|----------|--------|--------------|
|                                            |   |                         |   |   |    | Square     |     | Year                       |   | Year     |   |         |
| Apartment      Communities (1)                  |   | Location                     |   | Units  |    | Footage    |     | Built                      |   | Acquired |   | Occupancy(2) |
| Southern      California (continued)            |   |                         |   |   |    |       |     |                       |   |     |   |         |
| Fountain      Park                              |   | Playa      Vista, CA         |   | 705    |    | 608,900    |     | 2002                       |   | 2004     |   | 96%          |
| Highridge(6)                                    |   | Rancho      Palos Verdes, CA | 255    |   | 290,200 |       | 1972(23) |                       | 1997   |     | 92%    |
| Bluffs      II, The(24)                         |   | San      Diego, CA           |   | 224    |    | 126,700    |     | 1974                       |   | 1997     |   | 98%          |
| Summit      Park                                |   | San      Diego, CA           |   | 300    |    | 229,400    |     | 1972                       |   | 2002     |   | 97%          |
| Vista      Capri - North                        |   | San      Diego, CA           |   | 106    |    | 51,800     |     | 1975                       |   | 2002     |   | 98%          |
| Brentwood      (Hearthstone)(6)                 |   | Santa      Ana, CA           |   | 140    |    | 154,800    |     | 1970                       |   | 2001     |   | 96%          |
| Treehouse(6)                                    |   | Santa      Ana, CA           |   | 164    |    | 135,700    |     | 1970                       |   | 2001     |   | 95%          |
| Hope      Ranch Collection                      |   | Santa      Barbara, CA       |   | 108    |    | 126,700    |     | 1965&73                |   | 2007     |   | 95%          |
| Carlton      Heights                            |   | Santee,      CA              |   | 70     |    | 48,400     |     | 1979                       |   | 2002     |   | 94%          |
| Hidden      Valley (Parker Ranch)(25)           |   | Simi      Valley, CA         |   | 324    |    | 310,900    |     | 2004                       |   | 2004     |   | 94%          |
| Meadowood                                       |   | Simi      Valley, CA         |   | 320    |    | 264,500    |     | 1986                       |   | 1996     |   | 91%          |
| Shadow      Point                               |   | Spring      Valley, CA       |   | 172    |    | 131,200    |     | 1983                       |   | 2002     |   | 97%          |
| Coldwater      Canyon                           |   | Studio      City, CA         |   | 39     |    | 34,125     |     | 1979                       |   | 2007     |   | 70%          |
| Lofts      at Pinehurst, The                    |   | Ventura,      CA             |   | 118    |    | 71,100     |     | 1971(26)                   |   | 1997     |   | 97%          |
| Pinehurst(27)                                   |   | Ventura,      CA             |   | 28     |    | 21,200     |     | 1973                       |   | 2004     |   | 98%          |
| Woodside      Village                           |   | Ventura,      CA             |   | 145    |    | 136,500    |     | 1987                       |   | 2004     |   | 96%          |
| Walnut      Heights                             |   | Walnut,      CA              |   | 163    |    | 146,700    |     | 1964                       |   | 2003     |   | 94%          |
| Avondale      at Warner Center                  |   | Woodland      Hills, CA      |   | 446    |    | 331,000    |     | 1970(28)                   |   | 1997     |   | 92%          |
|                                            |   |                         |   | 13,205 |    | 11,038,017 |     |                       |   |     |   | 95%          |
| Northern      California                        |   |                         |   |   |    |       |     |                       |   |     |   |         |
| Belmont      Terrace                            |   | Belmont,      CA             |   | 71     |    | 72,951     |     | 1974                       |   | 2006     |   | 96%          |
| Carlmont      Woods(5)                          |   | Belmont,      CA             |   | 195    |    | 107,200    |     | 1971                       |   | 2004     |   | 98%          |
| Davey      Glen(5)                              |   | Belmont,      CA             |   | 69     |    | 65,974     |     | 1962                       |   | 2006     |   | 92%          |
| Pointe      at Cupertino, The                   |   | Cupertino,      CA           |   | 116    |    | 135,200    |     | 1963(29)                   |   | 1998     |   | 98%          |
| Harbor      Cove(5)                             |   | Foster      City, CA         |   | 400    |    | 306,600    |     | 1971                       |   | 2004     |   | 97%          |
| Stevenson      Place                            |   | Fremont,      CA             |   | 200    |    | 146,200    |     |    1971(30) |   | 1983     |   | 95%          |
| Boulevard      (Treetops)                       |   | Fremont,      CA             |   | 172    |    | 131,200    |     | 1978(31)                   |   | 1996     |   | 87%          |
| Waterstone      at Fremont (Mountain Vista)(32) |   | Fremont,      CA             |   | 526    |    | 433,100    |     | 1975                       |   | 2000     |   | 94%          |
| City      View (Wimbledon Woods)                |   | Hayward,      CA             |   | 560    |    | 462,400    |     | 1975(33)                   |   | 1998     |   | 95%          |
| Alderwood      Park(5)                          |   | Newark,      CA              |   | 96     |    | 74,624     |     | 1987                       |   | 2006     |   | 97%          |
| Bridgeport      (Summerhill Commons)            |   | Newark,      CA              |   | 184    |    | 139,000    |     | 1987(34)                   |   | 1987     |   | 96%          |
| Regency      Towers(5)                          |   | Oakland,      CA             |   | 178    |    | 140,900    |     | 1975(35)                   |   | 2005     |   | 92%          |
| San      Marcos (Vista del Mar)                 |   | Richmond,      CA            |   | 432    |    | 407,600    |     | 2003                       |   | 2003     |   | 96%          |
| Mt.      Sutro                                  |   | San      Francisco, CA       |   | 99     |    | 64,000     |     | 1973                       |   | 2001     |   | 98%          |
| Carlyle,      The                               |   | San      Jose, CA            |   | 132    |    | 129,200    |     | 2000                       |   | 2000     |   | 97%          |
| Enclave,      The(5)                            |   | San      Jose, CA            |   | 637    |    | 525,463    |     | 1998                       |   | 2005     |   | 96%          |
| Esplanade                                       |   | San      Jose, CA            |   | 278    |    | 279,000    |     | 2002                       |   | 2004     |   | 97%          |
| Waterford,      The                             |   | San      Jose, CA            |   | 238    |    | 219,600    |     | 2000                       |   | 2000     |   | 98%          |
| Hillsdale      Garden Apartments(36)            |   | San      Mateo, CA           |   | 697    |    | 611,505    |     | 1948                       |   | 2006     |   | 96%          |
| Bel      Air                                    |   | San      Ramon, CA           |   | 462    |    | 391,000    |     | 1988(37)                   |   | 1997     |   | 96%          |
| Canyon      Oaks                                |   | San      Ramon, CA           |   | 250    |    | 237,894    |     | 2005                       |   | 2007     |   | 94%          |
| Foothill      Gardens                           |   | San      Ramon, CA           |   | 132    |    | 155,100    |     | 1985                       |   | 1997     |   | 94%          |
| Mill      Creek at Windermere                   |   | San      Ramon, CA           |   | 400    |    | 381,060    |     | 2005                       |   | 2007     |   | 93%          |
| Twin      Creeks                                |   | San      Ramon, CA           |   | 44     |    | 51,700     |     | 1985                       |   | 1997     |   | 94%          |
| Le      Parc Luxury Apartments                  |   | Santa      Clara, CA         |   | 140    |    | 113,200    |     | 1975(38)                   |   | 1994     |   | 98%          |
| Marina      Cove(39)                            |   | Santa      Clara, CA         |   | 292    |    | 250,200    |     | 1974(40)                   |   | 1994     |   | 98%          |
| Harvest      Park                               |   | Santa      Rosa, CA          |   | 104    |    | 116,628    |     | 2004                       |   | 2007     |   | 95%          |
| Bristol      Commons                            |   | Sunnyvale,      CA           |   | 188    |    | 142,600    |     | 1989                       |   | 1997     |   | 97%          |
| Brookside      Oaks(6)                          |   | Sunnyvale,      CA           |   | 170    |    | 119,900    |     | 1973                       |   | 2000     |   | 99%          |
| Magnolia      Lane(41)                          |   | Sunnyvale,      CA           |   | 32     |    | 31,541     |     | 2001                       |   | 2007     |   | 97%          |
| Montclaire,      The (Oak Pointe)               |   | Sunnyvale,      CA           |   | 390    |    | 294,100    |     | 1973(42)                   |   | 1988     |   | 90%          |
| Summerhill      Park                            |   | Sunnyvale,      CA           |   | 100    |    | 78,500     |     | 1988                       |   | 1988     |   | 98%          |
| Thomas      Jefferson(6)                        |   | Sunnyvale,      CA           |   | 156    |    | 110,824    |     | 1969                       |   | 2007     |   | 100%         |
| Windsor      Ridge                              |   | Sunnyvale,      CA           |   | 216    |    | 161,800    |     | 1989                       |   | 1989     |   | 96%          |
| Vista      Belvedere                            |   | Tiburon,      CA             |   | 76     |    | 78,300     |     | 1963                       |   | 2004     |   | 94%          |
| Tuscana                                         |   | Tracy,      CA               |   | 30     |    | 29,088     |     | 2007                       |   | 2007     |   | 84%          |
|                                            |   |                         |   | 8,462  |    | 7,195,152  |     |                       |   |     |   | 96%          |
|                                            |   |                         |   |   |    |       |     |                       |   |     |   | (continued)  |

----

|                                                                        |   |                |   |   |   |        Rentable |   |     |   |     |   |         |
|-----------------------------------------------------------------------------|--------|---------------------|--------|--------|--------|----------------------|--------|----------|--------|----------|--------|--------------|
|                                                                        |   |                |   |   |   | Square               |   | Year     |   | Year     |   |         |
| Apartment      Communities (1)                                              |   | Location            |   | Units  |   | Footage              |   | Built    |   | Acquired |   | Occupancy(2) |
| Seattle,      Washington Metropolitan Area                                  |   |                |   |   |   |                 |   |     |   |     |   |         |
| Cedar      Terrace                                                          |   | Bellevue,      WA   |   | 180    |   | 174,200              |   | 1984     |   | 2005     |   | 95%          |
| Emerald      Ridge-North                                                    |   | Bellevue,      WA   |   | 180    |   | 144,000              |   | 1987     |   | 1994     |   | 95%          |
| Foothill      Commons                                                       |   | Bellevue,      WA   |   | 360    |   | 288,300              |   | 1978(43) |   | 1990     |   | 99%          |
| Palisades,      The                                                         |   | Bellevue,      WA   |   | 192    |   | 159,700              |   | 1977(44) |   | 1990     |   | 94%          |
| Sammamish      View                                                         |   | Bellevue,      WA   |   | 153    |   | 133,500              |   | 1986(45) |   | 1994     |   | 87%          |
| Woodland      Commons                                                       |   | Bellevue,      WA   |   | 236    |   | 172,300              |   | 1978(43) |   | 1990     |   | 99%          |
| Canyon      Pointe                                                          |   | Bothell,      WA    |   | 250    |   | 210,400              |   | 1990     |   | 2003     |   | 97%          |
| Inglenook      Court                                                        |   | Bothell,      WA    |   | 224    |   | 183,600              |   | 1985     |   | 1994     |   | 94%          |
| Salmon      Run at Perry Creek                                              |   | Bothell,      WA    |   | 132    |   | 117,100              |   | 2000     |   | 2000     |   | 97%          |
| Stonehedge      Village                                                     |   | Bothell,      WA    |   | 196    |   | 214,800              |   | 1986     |   | 1997     |   | 95%          |
| Park      Hill at Issaquah                                                  |   | Issaquah,      WA   |   | 245    |   | 277,700              |   | 1999     |   | 1999     |   | 96%          |
| Wandering      Creek                                                        |   | Kent,      WA       |   | 156    |   | 124,300              |   | 1986     |   | 1995     |   | 98%          |
| Bridle      Trails                                                          |   | Kirkland,      WA   |   | 108    |   | 73,400               |   | 1986(46) |   | 1997     |   | 97%          |
| Evergreen      Heights                                                      |   | Kirkland,      WA   |   | 200    |   | 188,300              |   | 1990     |   | 1997     |   | 96%          |
| Laurels      at Mill Creek, The                                             |   | Mill      Creek, WA |   | 164    |   | 134,300              |   | 1981     |   | 1996     |   | 97%          |
| Morning      Run(5)                                                         |   | Monroe,      WA     |   | 222    |   | 221,786              |   | 1991     |   | 2005     |   | 97%          |
| Anchor      Village(6)                                                      |   | Mukilteo,      WA   |   | 301    |   | 245,900              |   | 1981     |   | 1997     |   | 96%          |
| Castle      Creek                                                           |   | Newcastle,      WA  |   | 216    |   | 191,900              |   | 1997     |   | 1997     |   | 95%          |
| Brighton      Ridge                                                         |   | Renton,      WA     |   | 264    |   | 201,300              |   | 1986     |   | 1996     |   | 96%          |
| Fairwood      Pond                                                          |   | Renton,      WA     |   | 194    |   | 189,200              |   | 1997     |   | 2004     |   | 95%          |
| Forest      View                                                            |   | Renton,      WA     |   | 192    |   | 182,500              |   | 1998     |   | 2003     |   | 96%          |
| Cairns,      The                                                            |   | Seattle,      WA    |   | 100    |   | 70,806               |   | 2006     |   | 2007     |   | 95%          |
| Fountain      Court                                                         |   | Seattle,      WA    |   | 320    |   | 207,000              |   | 2000     |   | 2000     |   | 96%          |
| Linden      Square                                                          |   | Seattle,      WA    |   | 183    |   | 142,200              |   | 1994     |   | 2000     |   | 97%          |
| Maple      Leaf                                                             |   | Seattle,      WA    |   | 48     |   | 35,500               |   | 1986     |   | 1997     |   | 99%          |
| Spring      Lake                                                            |   | Seattle,      WA    |   | 69     |   | 42,300               |   | 1986     |   | 1997     |   | 99%          |
| Tower      @ 801(5)                                                         |   | Seattle,      WA    |   | 173    |   | 118,500              |   | 1970     |   | 2005     |   | 97%          |
| Wharfside      Pointe                                                       |   | Seattle,      WA    |   | 142    |   | 119,200              |   | 1990     |   | 1994     |   | 97%          |
| Echo      Ridge(5)                                                          |   | Snoqualmie,      WA |   | 120    |   | 124,539              |   | 2000     |   | 2005     |   | 97%          |
|                                                                        |   |                |   | 5,520  |   | 4,688,531            |   |     |   |     |   | 96%          |
| Other      Region                                                           |   |                |   |   |   |                 |   |     |   |     |   |         |
| St.      Cloud                                                              |   | Houston,      TX    |   | 302    |   | 306,800              |   | 1968     |   | 2002     |   | 93%          |
|                                                                        |   |                |   |   |   |                 |   |     |   |     |   |         |
|                                                                        |   |                |   | 302    |   | 306,800              |   |     |   |     |   | 93%          |
|         Total/Weighted      Average |   |                |   | 27,489 |   | 23,228,500           |   |     |   |     |   | 96%          |

|                                                              |   |                    |   |            |   | Rentable |   |   |   |             |   |         |
|-------------------------------------------------------------------|--------|-------------------------|--------|-----------------|--------|----------|--------|--------|--------|------------------|--------|--------------|
|                                                              |   |                    |   |            |   | Square   |   | Year   |   | Year             |   |         |
| Other      real estate assets(1)                                  |   | Location                |   | Tenants         |   | Footage  |   | Built  |   | Acquired         |   | Occupancy(2) |
| Office      Buildings                                             |   |                    |   |            |   |     |   |   |   |             |   |         |
| 535      - 575 River Oaks(47)                                |   | San      Jose, CA       |   | 1               |   | 262,500  |   | 1990   |   | 2007             |   | 100%         |
| 925      East Meadow Drive(48)                                    |   | Palo      Alto, CA      |   | 1               |   | 17,400   |   | 1988   |   | 1997             |   | 100%         |
| 935      East Meadow Drive(49)                                    |   | Palo      Alto, CA      |   | -               |   | 14,500   |   | 1962   |   | 2007             |   | 0%           |
| 6230      Sunset Blvd(47)                                         |   | Los      Angeles, CA    |   | 1               |   | 35,000   |   | 1938   |   | 2006             |   | 100%         |
| 17461      Derian Ave(50)                                         |   | Irvine,      CA         |   | 3               |   | 110,000  |   | 1983   |   | 2000             |   | 100%         |
| 22110-22120      Clarendon Street(51)                             |   | Woodland      Hills, CA |   | 9               |   | 38,940   |   | 1982   |   | 2001             |   | 100%         |
|     Total      Office Buildings               |   |                    |   | 15              |   | 478,340  |   |   |   |             |   | 100%         |
|                                                              |   |                    |   |            |   |     |   |   |   |             |   |         |
| Recreational      Vehicle Parks                                   |   |                    |   |            |   |     |   |   |   |             |   |         |
| Circle      RV                                                    |   | El      Cajon, CA       |   | 179      spaces |   |     |   | 1977   |   |   2002 |   |  (52)   |
| Vacationer                                                        |   | El      Cajon, CA       |   | 159      spaces |   |     |   | 1973   |   |   2002 |   |  (52)   |
|     Total      Recreational Vehicle Parks     |   |                    |   | 338      spaces |   |     |   |   |   |             |   |         |
|                                                              |   |                    |   |            |   |     |   |   |   |             |   |         |
| Manufactured      Housing Community                               |   |                    |   |            |   |     |   |   |   |             |   |         |
| Green      Valley                                                 |   | Vista,      CA          |   | 157      sites  |   |     |   | 1973   |   |   2002 |   |  (52)   |
|     Total      Manufactured Housing Community |   |                    |   | 157      sites  |   |     |   |   |   |             |   |         |

----

|   | (1) | Unless      otherwise specified, the Operating Partnership has a 100% ownership      interest in each Property. |
|--------|-----|-----------------------------------------------------------------------------------------------------------------|

|   | (2) |  For      apartment communities, occupancy rates are based on financial occupancy      for the year ended December 31, 2007; for the office buildings,      recreational vehicle parks, manufactured housing communities or properties      which have not yet stabilized or have insufficient operating history,      occupancy rates are based on physical occupancy as of December 31, 2007.      For an explanation of how financial occupancy and physical occupancy are      calculated, see “Properties-Occupancy Rates” in this Item    2.                                                                                                          |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   | (3) | The      Operating Partnership has a 30% special limited partnership interest in      the entity that owns this apartment community. This investment was made      under arrangements whereby the Essex Management Corporation (“EMC”) became      the general partner and the existing partners were granted the right to      require the applicable partnership to redeem their interest for cash.      Subject to certain conditions, the Operating Partnership may, however,      elect to deliver an equivalent number of shares of the Company’s common      stock in satisfaction of the applicable partnership's cash redemption      obligation. |
|   | (4) | The      community is subject to a ground lease, which, unless extended, will      expire in 2082.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |

| (5)   | This      community is owned by Fund II. The Operating Partnership has a 28.2%      interest in Fund II which is accounted for using the equity method of      accounting. |
|-----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (6)   | The      Operating Partnership holds a 1% special limited partner interest in the      partnerships which own these apartment communities. These investments were      made under arrangements whereby EMC became the 1% sole general partner and      the other limited partners were granted the right to require the      applicable partnership to redeem their interest for cash. Subject to      certain conditions, the Operating Partnership may, however, elect to      deliver an equivalent number of shares of the Company’s common stock in      satisfaction of the applicable partnership’s cash redemption      obligation. |
|-----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (7)   | In      2002 the Operating Partnership purchased an additional 21 units adjacent      to this apartment community for $3 million. This property was built in      1992. |
|-----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (8)   | The      Operating Partnership completed a $1.6 million redevelopment in      2000. |
|-----------------|-------------------------------------------------------------------------------------|

| (9)   | The      Operating Partnership completed a $2.3 million redevelopment in      2000. |
|-----------------|-------------------------------------------------------------------------------------|

| (10)   | The      Operating Partnership is in the process of performing a $10.7 million      redevelopment. |
|------------------|----------------------------------------------------------------------------------------------------|

| (11)   | The      Operating Partnership completed a $6.2 million redevelopment in      2007.  . |
|------------------|--------------------------------------------------------------------------------------------------|

| (12)   | This      community is subject to a ground lease, which, unless extended, will      expire in 2067. |
|------------------|-----------------------------------------------------------------------------------------------------|

| (13)   | Fund      II is in the process of performing a $5.0 million      redevelopment. |
|------------------|---------------------------------------------------------------------------------|

| (14)   | During      the third quarter of 2007, the Operating Partnership acquired full      ownership by purchasing the general contractor's interest for $9      million. |
|------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (15)   | The      Operating Partnership is in the process of performing a $6.1 million      redevelopment. |
|------------------|---------------------------------------------------------------------------------------------------|

| (16)   | The      Operating Partnership completed an $11.0 million redevelopment in      2001. |
|------------------|---------------------------------------------------------------------------------------|

| (17)   | The      Operating Partnership completed an additional $3.6 million redevelopment      in 2005. |
|------------------|-------------------------------------------------------------------------------------------------|

| (18)   | This      community is subject to a ground lease, which, unless extended, will      expire in 2027. |
|------------------|-----------------------------------------------------------------------------------------------------|

| (19)   | The      Operating Partnership completed a $3.2 million redevelopment in      2002. |
|------------------|-------------------------------------------------------------------------------------|

| (20)   | The      Operating Partnership completed a $1.9 million redevelopment in      2000. |
|------------------|-------------------------------------------------------------------------------------|

| (21)   | The      Operating Partnership completed a $1.9 million redevelopment in      2001. |
|------------------|-------------------------------------------------------------------------------------|

| (22)   | The      Operating Partnership completed a $1.7 million redevelopment in      2001. |
|------------------|-------------------------------------------------------------------------------------|

| (23)   | The      Operating Partnership is in the process of performing a $16.1 million      redevelopment. |
|------------------|----------------------------------------------------------------------------------------------------|

| (24)   | The      Operating Partnership had an 85% controlling limited partnership interest      as of December 31, 2006, and during January 2007 the      Operating Partnership acquired the remaining 15% partnership      interest. |
|------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (25)   | The      Operating Partnership and EMC have a 74.0% and 1% member interests,      respectively. |
|------------------|-------------------------------------------------------------------------------------------------|

| (26)   | The      Operating Partnership completed a $3.5 million redevelopment in      2002. |
|------------------|-------------------------------------------------------------------------------------|

| (27)   | The      community is subject to a ground lease, which, unless extended, will      expire in 2028. |
|------------------|----------------------------------------------------------------------------------------------------|

| (28)   | The      Operating Partnership is in the process of performing a $14.1 million      redevelopment. |
|------------------|----------------------------------------------------------------------------------------------------|

| (29)   | The      Operating Partnership completed a $2.7 million redevelopment in      2001. |
|------------------|-------------------------------------------------------------------------------------|

| (30)   | The      Operating Partnership completed a $4.5 million redevelopment in      1998. |
|------------------|-------------------------------------------------------------------------------------|

| (31)   | The      Operating Partnership is in the process of performing an $8.4 million      redevelopment. |
|------------------|----------------------------------------------------------------------------------------------------|

| (32)   | The      Operating Partnership had a preferred limited partnership interest. In      March 2007, the Operating Partnership sold part of its limited partnership      interest, and in January 2008, the Operating Partnership sold its      remaining interest. |
|------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (33)   | The      Operating Partnership is in the process of performing a $9.4 million      redevelopment. |
|------------------|---------------------------------------------------------------------------------------------------|

| (34)   | The      Operating Partnership is in the process of performing a $4.6 million      redevelopment |
|------------------|--------------------------------------------------------------------------------------------------|

| (35)   | Fund      II is in the process of performing a $4.5 million      redevelopment. |
|------------------|---------------------------------------------------------------------------------|

| (36)   | The      community was subject to a ground lease, which, unless extended, would      expire in 2047.  In the second quarter of 2007, the Operating      Partnership entered into a joint venture partnership with a third-party,      and the Operating Partnership contributed the improvements for an 81.5%      interest and the joint venture partner contributed the title to the land      for an 18.5% interest in thepartnership. |
|------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| (37)   | The      Operating Partnership completed construction of 114 units of the 462 total      units in 2000. |
|------------------|---------------------------------------------------------------------------------------------------------|

| (38)   | The      Operating Partnership completed a $3.4 million redevelopment in      2002. |
|------------------|-------------------------------------------------------------------------------------|

| (39)   | A      portion of this community on which 84 units are presently located is      subject to a ground lease, which, unless extended, will expire in      2028. |
|------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (40)   | The      Operating Partnership is in the process of performing a $9.9 million      redevelopment. |
|------------------|---------------------------------------------------------------------------------------------------|

| (41)   | The      community is subject to a ground lease, which, unless extended, will      expire in 2070. |
|------------------|----------------------------------------------------------------------------------------------------|

| (42)   | The      Operating Partnership is in the process of performing a $15.1 million      redevelopment. |
|------------------|----------------------------------------------------------------------------------------------------|

| (43)   | The      Operating Partnership is in the process of performing a joint $30.6      million redevelopment at thesecommunities. |
|------------------|------------------------------------------------------------------------------------------------------------------------------|

| (44)   | The      Operating Partnership is in the process of performing a $7.0 million      redevelopment |
|------------------|--------------------------------------------------------------------------------------------------|

| (45)   | The      Operating Partnership is in the process of performing a $3.9 million      redevelopment. |
|------------------|---------------------------------------------------------------------------------------------------|

| (46)   | The      Operating Partnership is in the process of performing a $5.1 million      redevelopment and completed construction of 16 units of the community’s      108 units in 2006.  Operations were restabilized in the second      quarter of 2006. |
|------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (47)   | The      property is leased to a single tenant on a short-term basis, and is      included in the Operating Partnership’s predevelopment      pipeline. |
|------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (48)   | The      Operating Partnership occupies 100% of this  property. |
|------------------|-----------------------------------------------------------------|

| (49)   | The      property is currently vacant and under a $2.0 million redevelopment. The      Operating Partnership expects to occupy 100% of this property upon      completion of the redevelopment in approximately the third quarter of      2008. |
|------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (50)   | The      Operating Partnership has a mortgage receivable, and consolidates this      property in accordance with GAAP. The Operating Partnership occupies 4.6%      of this property. |
|------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (51)   | The      Operating Partnership occupies 30% of this  property. |
|------------------|----------------------------------------------------------------|

| (52)   | The      Operating Partnership leased these three properties in 2003 to an      unrelated third party for approximately 5 years with an option to purchase      the property in approximately2008. |
|------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

Recently there has been an increasing number of lawsuits againstowners and managers of apartment communities alleging personal injury andproperty damage caused by the presence of mold in residential realestate.  Some of these lawsuits have resulted in substantial monetaryjudgments or settlements.  The Operating Partnership has been sued formold related matters and has settled some, but not all, of suchmatters.  Insurance carriers have reacted to mold related liabilityawards by excluding mold related claims from standard policies and pricing moldendorsements at prohibitively high rates.  The Operating Partnershiphas, however, purchased pollution liability insurance, which includes somecoverage for mold.  The Operating Partnership has adopted programsdesigned to manage the existence of mold in its properties as well as guidelinesfor promptly addressing and resolving reports of mold to minimize any impactmold might have on residents or property.  Liabilities resulting fromsuch mold related matters are not expected to have a material adverse effect onthe Operating Partnership’s financial condition, results of operations or cashflows.

----

Item 5. Market for Registrant’s Common Equity, Related StockholderMatters and Issuer Purchases of Equity Securities

| Period                |      | Total      Number of Shares Sold |    | Average      Price per Share |         | Proceeds      (net of fees and commissions) |
|-----------------------|-----------|----------------------------------|---------|------------------------------|--------------|---------------------------------------------|
| 4/5/07      to 5/6/07 | 1,670,500 |                             | $127.91 |                         | $213,672,000 |

| Period                    |    | Total      Number of Shares Purchased |    | Average      Price Paid per Share |    | Total      Number of Shares Purchased as Part of Publicly Announced Plans or      Programs |         | Total      Amount that May Yet be  Purchased Under the Plans or      Programs |
|---------------------------|---------|---------------------------------------|---------|-----------------------------------|---------|--------------------------------------------------------------------------------------------|--------------|-----------------------------------------------------------------------------------------|
| 9/12/07      to 9/17/07   | 12,600  |                                  | $111.60 |                              | 12,600  |                                                                                       | $198,593,456 |                                                                                    |
| 11/13/07      to 11/31/07 | 196,059 |                                  | $101.90 |                              | 208,659 |                                                                                       | $178,615,425 |                                                                                    |
| 12/4/07      to 12/21/07  | 114,600 |                                  | $98.20  |                              | 323,259 |                                                                                       | $167,358,504 |                                                                                    |
| Total                     | 323,259 |                                  | $100.90 |                              | 323,259 |                                                                                       | $167,358,504 |                                                                                    |

----

|                                                                                  |   |   |            Years      Ended December 31,               |
|---------------------------------------------------------------------------------------|--------|--------|---------------------------------------------------------------------------------|
|                                                                                  |   |   | 2007                                                                            |   |   | 2006(1) | 2005(1) | 2004(1) | 2003(1) |
|                                                                                  |   |   |     (In      thousands, except  per unit amounts) |
| OPERATING      DATA:                                                                  |   |   |                                                                            |   |   |   |   |   |   |   |   |   |   |   |   |
| REVENUES                                                                              |   |   |                                                                            |   |   |   |   |   |   |   |   |   |   |   |   |
|    Rental      and other property                                      |   | $      | 383,433                                                                         |   | $ | 334,770 |   | $ | 303,235 |   | $ | 266,722 |   | $ | 233,800 |
|    Management      and other fees from affiliates                      |   |   | 5,090                                                                           |   |   | 5,030 |   |   | 10,951 |   |   | 23,146 |   |   | 6,027 |
|                                                                                  |   |   | 388,523                                                                         |   |   | 339,800 |   |   | 314,186 |   |   | 289,868 |   |   | 239,827 |
| EXPENSES                                                                              |   |   |                                                                            |   |   |   |   |   |   |   |   |   |   |   |   |
|    Property      operating expenses, excluding depreciation            |   |   |                                                                            |   |   |   |   |   |   |   |   |   |   |   |   |
|      and      amortization                                   |   |   | 128,424                                                                         |   |   | 114,398 |   |   | 104,479 |   |   | 93,666 |   |   | 77,307 |
|    Depreciation      and amortization                                  |   |   | 100,389                                                                         |   |   | 78,094 |   |   | 74,849 |   |   | 66,414 |   |   | 51,814 |
|    Amortization      of deferred financing costs                       |   |   | 3,071                                                                           |   |   | 2,745 |   |   | 1,947 |   |   | 1,560 |   |   | 1,187 |
|    General      and administrative                                     |   |   | 26,273                                                                          |   |   | 22,234 |   |   | 19,148 |   |   | 18,042 |   |   | 9,549 |
|    Interest                                                            |   |   | 80,995                                                                          |   |   | 72,898 |   |   | 70,784 |   |   | 60,709 |   |   | 49,985 |
|    Other      expenses                                                 |   |   | 800                                                                             |   |   | 1,770 |   |   | 5,827 |   |   |              - |   |   |               - |
|                                                                                  |   |   | 339,952                                                                         |   |   | 292,139 |   |   | 277,034 |   |   | 240,391 |   |   | 189,842 |
|    Earnings      from operations                                       |   |   | 48,571                                                                          |   |   | 47,661 |   |   | 37,152 |   |   | 49,477 |   |   | 49,985 |
|                                                                                  |   |   |                                                                            |   |   |   |   |   |   |   |   |   |   |   |   |
|    Gain      on the sales of real estate                               |   |   |             -       |   |   |             - |   |   |        6,391 |   |   |       7,909 |   |   |             - |
|    Interest      and other income                                      |   |   |      10,310                                            |   |   |        6,176 |   |   |        8,524 |   |   |       3,077 |   |   |          668 |
|    Equity      income (loss) in co-investments                         |   |   |        3,120                                 |   |   |      (1,503) |   |   |      18,553 |   |   |     40,683 |   |   |       2,349 |
|    Minority      interests                                             |   |   |      (4,847)                                           |   |   |      (4,977) |   |   |      (5,340) |   |   |     (4,550) |   |   |      (4,696) |
|    Income      from continuing operations before income tax provision  |   |   | 57,154                                                                          |   |   | 47,357 |   |   | 65,280 |   |   | 96,596 |   |   | 48,306 |
|    Income      tax provision                                           |   |   |         (400)                           |   |   |         (525) |   |   |      (2,538) |   |   |        (257) |   |   |             - |
|    Income      from continuing operations                              |   |   | 56,754                                                                          |   |   | 46,832 |   |   | 62,742 |   |   | 96,339 |   |   | 48,306 |
|                                                                                  |   |   |                                                                            |   |   |   |   |   |   |   |   |   |   |   |   |
|    Income      from discontinued operations (net of minority interests |   |   | 80,546                                                                          |   |   | 33,015 |   |   | 35,558 |   |   | 7,469 |   |   | 8,660 |
| Net      income                                                                       |   |   | 137,300                                                                         |   |   | 79,847 |   |   | 98,300 |   |   | 103,808 |   |   | 56,966 |
| Write      off of Series C preferred units offering costs                             |   |   |             -       |   |   |             - |   |   |             - |   |   |            - |   |   |         (625) |
| Write      off of Series E preferred units offering costs                             |   |   |             -       |   |   |             - |   |   |             - |   |   |     (1,575) |   |   |             - |
| Amortization      of discount on Series F preferred equity                            |   |   |             -       |   |   |             - |   |   |             - |   |   |            - |   |   |         (336) |
| Distributions      on preferred units - Series F & G                              |   |   |      (9,174)                                           |   |   |      (5,145) |   |   |      (1,953) |   |   |     (1,952) |   |   |         (195) |
| Distributions      on preferred units - limited partners                              |   |   |    (10,238)                                                      |   |   |    (10,238) |   |   |    (10,238) |   |   |   (14,175) |   |   |    (17,996) |
| Net      income available to common units                                             |   | $      |    117,888                                                       |   |  $ |      64,464 |   |  $ |      86,109 |   |  $ |     86,106 |   |  $ |     37,814 |
| Per      unit data:                                                                   |   |   |                                                                            |   |   |   |   |   |   |   |   |   |   |   |   |
|   Basic:                                                                    |   |   |                                                                            |   |   |   |   |   |   |   |   |   |   |   |   |
|     Net      income from continuing operations available to       |   |   |                                                                            |   |   |   |
|       common      units                                 |   | $      | 1.38                                                                            |   | $ | 1.23 |   | $ | 2.00 |   | $ | 3.11 |   | $ | 1.23 |
|     Net      income available to common units                     |   | $      | 4.36                                                                            |   | $ | 2.52 |   | $ | 3.40 |   | $ | 3.41 |   | $ | 1.59 |
|     Weighted      average common units outstanding                |   |   | 27,044                                                                          |   |   | 25,560 |   |   | 25,344 |   |   | 25,255 |   |   | 23,737 |
|   Diluted:                                                                  |   |   |                                                                            |   |   |   |   |   |   |   |   |   |   |   |   |
|     Net      income from continuing operations available to       |   |   |                                                                            |   |   |   |
|       common      units                                 |   | $      | 1.35                                                                            |   | $ | 1.21 |   | $ | 1.97 |   | $ | 3.09 |   | $ | 1.22 |
|     Net      income available to common units                     |   | $      | 4.27                                                                            |   | $ | 2.48 |   | $ | 3.35 |   | $ | 3.38 |   | $ | 1.58 |
|     Weighted      average common units outstanding                |   |   | 27,597                                                                          |   |   | 26,030 |   |   | 25,694 |   |   | 25,490 |   |   | 23,948 |
| Cash      dividend per common unit                                                    |   | $      | 3.72                                                                            |   | $ | 3.36 |   | $ | 3.24 |   | $ | 3.16 |   | $ | 3.12 |

----

|                                                                        |   |   | As      of December 31,                         |
|-----------------------------------------------------------------------------|--------|--------|-------------------------------------------------|
|                                                                        |   |   | 2007                                            |   |   | 2006(1) | 2005(1) | 2004(1) | 2003(1) |
| BALANCE      SHEET DATA:                                                    |   |   |                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |
|    Investment      in rental properties (before accumulated  |   |   |                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |
|      depreciation)                                 |   | $      | 3,117,759                                       |   | $ | 2,669,187 |   | $ | 2,431,629 |   | $ | 2,371,194 |   | $ | 1,984,122 |   |
|    Net      investment in rental proerties                   |   |   | 2,575,772                                       |   |   | 2,204,172 |   |   | 2,042,589 |   |   | 2,041,542 |   |   | 1,718,359 |   |
|    Real      estate under development                        |   |   | 233,445                                         |   |   | 107,620 |   |   | 54,416 |   |   | 38,320 |   |   | 55,183 |   |
|    Total      assets                                         |   |   | 2,980,323                                       |   |   | 2,485,840 |   |   | 2,239,290 |   |   | 2,217,217 |   |   | 1,916,811 |   |
|    Total      secured indebtedness                           |   |   | 1,362,873                                       |   |   | 1,186,554 |   |   | 1,129,918 |   |   | 1,161,184 |   |   | 976,545 |   |
|    Total      unsecured indebtedness                         |   |   | 294,818                                         |   |   | 225,000 |   |   | 225,000 |   |   | 155,800 |   |   | 12,500 |   |
|    Cumulative      convertible preferred equity              |   |   | 145,912                                         |   |   | 145,912 |   |   |               - |   |  - |              - |   |   |               - |   |
|    Cumulative      redeemable preferred equity               |   |   | 24,412                                          |   |   | 24,412 |   |   | 24,412 |   |   | 24,412 |   |   | 24,412 |   |
|    Partners'      capital (less redeemable preferred equity) |   |   | 972,769                                         |   |   | 774,217 |   |   | 737,497 |   |   | 752,991 |   |   | 787,396 |   |
|                                                                        |   |   |                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                        |   |   |                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                        |   |   | As      of and for the years ended December 31, |
|                                                                        |   |   | 2007                                            |   |   | 2006(1) | 2005(1) | 2004(1) | 2003(1) |
| OTHER      DATA:                                                            |   |   |                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest      coverage ratio(2)                                             |   |   | 3.0                                             | X | 2.8 | X | 2.7 | X | 3.0 | X | 3.1 | X |
| Same-property      gross operating margin(3)(4)                             |   |   | 67%                                             |   |   | 67% |   |   | 66% |   |   | 65% |   |   | 66% |   |
| Average      same-property monthly rental rate per                          |   |   |                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   apartment      unit(4)(5)                                       |   | $      | 1,314                                           |   | $ | 1,225 |   | $ | 1,149 |   | $ | 1,055 |   | $ | 1,088 |   |
| Average      same-property monthly operating expenses                       |   |   |                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   per      apartment unit(4)(6)                                   |   | $      | 437                                             |   | $ | 421 |   | $ | 395 |   | $ | 331 |   | $ | 325 |   |
| Total      apartment units (at end of period)                               |   |   | 27,489                                          |   |   | 27,553 |   |   | 26,587 |   |   | 25,518 |   |   | 26,012 |   |
| Same-property      occupancy rate(7)                                        |   |   | 96%                                             |   |   | 96% |   |   | 97% |   |   | 96% |   |   | 96% |   |
| Total      Properties (at end of period)                                    |   |   | 134                                             |   |   | 130 |   |   | 126 |   |   | 131 |   |   | 132 |   |

|                                                                |   |   | Years      Ended December 31,                                                         |
|---------------------------------------------------------------------|--------|--------|---------------------------------------------------------------------------------------|
|                                                                |   |   | 2007                                                                                  |   |   | 2006(1) | 2005(1) | 2004(1) | 2003(1) |
|                                                                |   |   |        (Dollars      in thousands)                                               |
| RECONCILIATION      OF NET INCOME TO                                |   |   |                                                                                  |   |   |   |   |   |   |   |
|    ADJUSTED      EBITDA (2):                         |   |   |                                                                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net      income                                                     |   | $      | 137,300                                                                               |   | $ | 79,847 |   | $ | 98,300 |   | $ | 103,808 |   | $ | 56,966 |   |
| Interest      expense                                               |   |   | 80,995                                                                                |   |   | 72,898 |   |   | 70,784 |   |   | 60,709 |   |   | 49,985 |   |
| Tax      expense                                                    |   |   | 400                                                                                   |   |   | 525 |   |   | 2,538 |   |   | 257 |   |   |               - |   |
| Depreciation      and amortization                                  |   |   | 100,389                                                                               |   |   | 78,094 |   |   | 74,849 |   |   | 66,414 |   |   | 51,814 |   |
| Amortization      of deferred financing costs                       |   |   | 3,071                                                                                 |   |   | 2,745 |   |   | 1,947 |   |   | 1,560 |   |   | 1,187 |   |
| Gain      on the sales of real estate                               |   |   |               - |   |   |               - |   |   | (6,391) |   |   |     (7,909) |   |   |               - |   |
| Gain      on the sales of co-investment activities, net             |   |   |      (2,046)                                                 |   |   |               - |   |   |    (18,116) |   |   |   (39,242) |   |   |               - |   |
| Minority      interests                                             |   |   | 4,847                                                                                 |   |   | 4,977 |   |   | 5,340 |   |   | 4,550 |   |   | 4,696 |   |
| Income      from discontinued operations (net of minority interest) |   |   | (80,546)                                                                              |   |   | (33,015) |   |   | (35,558) |   |   | (7,469) |   |   | (8,660) |   |
| Adjusted      EBITDA(2)                                             |   |   | 244,410                                                                               |   |   | 206,071 |   |   | 193,693 |   |   | 182,678 |   |   | 155,988 |   |
| Interest      expense                                               |   |   | 80,995                                                                                |   |   | 72,898 |   |   | 70,784 |   |   | 60,709 |   |   | 49,985 |   |
| Interest      coverage ratio(2)                                     |   |   | 3.0                                                                                   | X | 2.8 | X | 2.7 | X | 3.0 | X | 3.1 | X |

| (1)   | The      above financial and operating information from January 1 through December      31, 2003 reflect the retroactive adoption of FIN 46R and SFAS No.      123.  The results of operations for 2006, 2005, 2004 and 2003      have been reclassified to reflect discontinued operations for properties      sold subsequent to December 31,2006. |
|-----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (2)   | Interest      coverage ratio represents earnings before minority interests, gain on      sales of real estate, interest expense, taxes, depreciation and      amortization (“adjusted EBITDA”) divided by interest      expense.  The Operating Partnership believes that the interest      coverage ratio is useful to readers because it is frequently used by      investors, lenders, security analysts and other interested parties in the      evaluation of companies in our industry.  In addition, the      Operating Partnership believes that this ratio is useful in evaluating our      performance compared to that of other companies in our industry because      the calculation of the adjusted EBITDA component of the interest coverage      ratio generally eliminates the effects of financing costs, income taxes,      and depreciation and amortization, which items may vary for different      companies for reasons unrelated to operating  performance. |
|-----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|          (3) | Gross      operating margin represents rental revenues and other property income less      property operating expenses, exclusive of depreciation and amortization,      divided by rental revenues and other property  income. |
|-----------------------------------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|               (4) | A      stabilized apartment community, or “Same-Property” apartment units (as      defined in Item 7), are those units in properties that the Operating      Partnership has consolidated for the entire two years as of the end of the      period set forth. The number of apartment units in such properties may      vary at each year-end. Percentage changes in averages per unit do not      correspond to total Same-Property revenues and expense percentage changes      which are discussed in Item 7—Management’s Discussion and Analysis of      Financial Condition and Results ofOperations. |
|-----------------------------------------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (5)  | Average      Same-Property monthly rental rate per apartment unit represents total      scheduled rent for the same property apartment units for the period      (actual rental rates on occupied apartment units plus market rental rates      on vacant apartment units) divided by the number of such apartment units      and further divided by the number of months in the  period. |
|-----------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (6)  | Average      Same-Property monthly expenses per apartment unit represents total monthly      operating expenses, exclusive of depreciation and amortization, for the      same property apartment units for the period divided by the total number      of such apartment units and further divided by the number of months in the      period. |
|-----------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (7)  | Occupancy      rates are based on financial occupancy. For an explanation of how      financial occupancy is calculated, see Item 7 – Management’s Discussion      and Analysis of Financial Condition and Results of    Operations. |
|-----------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

Item 7. Management’s Discussion and Analysis of Financial Conditionand Results of Operations

----

|                     | As      of December 31, 2007 |   | As      of December 31, 2006 |
|--------------------------|------------------------------|--------|------------------------------|
|                     | Apartment      Units         | %      |                         | Apartment      Units | % |
| Southern      California | 12,725                       | 52%    |                         | 12,965 | 55% |
| Northern      California | 6,361                        | 26%    |                         | 5,389 | 23% |
| Seattle      Metro       | 5,005                        | 21%    |                         | 4,905 | 21% |
| Other      Regions       | 302                          | 1%     |                         | 302 | 1% |
| Total                    | 24,393                       | 100%   |                         | 23,561 | 100% |

|                     | Years      ended  |
|--------------------------|-------------------|
|                     | December      31, |
|                     | 2007              |   | 2006 |
| Southern      California | 95.6%             |   | 96.3% |
| Northern      California | 96.8%             |   | 96.7% |
| Seattle      Metro       | 96.3%             |   | 96.8% |
| Other      Regions       | 92.5%             |   | 90.6% |

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |           |   |   | Years      Ended  |   |   |    |   |       |   |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|----------------|--------|--------|-------------------|--------|--------|---------|--------|------------|--------|
|                                                                                      |   | Number      of |   |   | December      31, |   |   | Dollar  |   | Percentage |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   | Properties     |   |   | 2007              |   |   | 2006    |   |       | Change |   | Change |   |
| Property      Revenues (dollars in      thousands)                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |   |           |   |   |              |   |   |    |   |       |   |   |   |   |
|    2007/2006      Same-Properties:                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   |           |   |   |              |   |   |    |   |       |   |   |   |   |
|        Southern      California                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   | 56             |   | $      | 185,060           |   | $      | 177,336 |   | $          | 7,724  |   | 4.4 | % |
|        Northern      California                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   | 16             |   |   | 60,024            |   |   | 54,887  |   |       | 5,137  |   | 9.4 |   |
|        Seattle      Metro                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   | 22             |   |   | 56,427            |   |   | 50,852  |   |       | 5,575  |   | 11.0 |   |
|        Other      Regions                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   | 1              |   |   | 2,015             |   |   | 1,980   |   |       | 35     |   | 1.8 |   |
|             Total      2007/2006 Same-Property revenues                                                                                                                                                                                                                                                                                                                                                                                                      |   | 95             |   |   | 303,526           |   |   | 285,055 |   |       | 18,471 |   | 6.5 |   |
|    2007/2006      Non-Same Property Revenues (1)                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   |           |   |   | 79,907            |   |   | 49,715  |   |       | 30,192 |   | 60.7 |   |
|           Total      property revenues                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |           |   | $      | 383,433           |   | $      | 334,770 |   | $          | 48,663 |   | 14.5 | % |

----

----

|                     | Years      ended  |
|--------------------------|-------------------|
|                     | December      31, |
|                     | 2006              |   | 2005 |
| Southern      California | 96.3%             |   | 96.5% |
| Northern      California | 96.7%             |   | 97.1% |
| Seattle      Metro       | 96.9%             |   | 96.7% |
| Other      Regions       | 90.6%             |   | 88.1% |

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |           |   |                                 | Years      Ended  |                           |                     |    |   |                           |   |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|----------------|--------|--------------------------------------|-------------------|--------------------------------|--------------------------|---------|--------|--------------------------------|--------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   | Number      of |   |                                 | December      31, |                           |                     | Dollar  |   | Percentage                     |   |
|                                                                                            |   | Properties     |   |             | 2006              |       |           | 2005    |   |       | Change |      | Change |   |
| Property      Revenues (dollars in      thousands)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |   |           |   |        |              |                           |                     |    |   |                           |   |   |   |   |
|    2006/2005      Same-Properties:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   |           |   |                                 |              |                           |      |    |   |                           |   |   |   |   |
|        Southern      California                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |   | 53             |   | $                                    | 174,156           |                           | $                        | 164,550 |   | $                              | 9,606  |   | 5.8 | % |
|        Northern      California                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |   | 16             |   |                                 | 54,887            |                           |                     | 50,625  |   |                           | 4,262  |   | 8.4 |   |
|        Seattle      Metro                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   | 21             |   |                                 | 48,663            |                           |                     | 44,551  |   |                           | 4,112  |   | 9.2 |   |
|        Other      Regions                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   | 1              |   |                                 | 1,980             |                           |                     | 1,843   |   |                           | 137    |   | 7.4 |   |
|             Total      2006/2005 Same-Property revenues                                                                                                                                                                                                                                                                                                                                                                                                                                          |   | 91             |   |                                 | 279,686           |                           |                     | 261,569 |   |                           | 18,117 |   | 6.9 |   |
|      2006/2005      Non-Same Property Revenues (1)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |   |           |   |                                 | 55,084            |                           |                     | 41,666  |   |                           | 13,418 |   | 32.2 |   |
|           Total      property revenues                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |           |   | $                                    | 334,770           |                           | $                        | 303,235 |   | $                              | 31,535 |   | 10.4 | % |

----

----

----

----

|                                      |   |   |                                                                            |   |   | 2009      and                                                                         |   |   | 2011      and                                                                   |   |   |                                                                                                    |   |   |      |
|-------------------------------------------|--------|--------|---------------------------------------------------------------------------------|--------|--------|---------------------------------------------------------------------------------------|--------|--------|---------------------------------------------------------------------------------|--------|--------|---------------------------------------------------------------------------------------------------------|--------|--------|-----------|
| (In      thousands)                       |   |   | 2008                                                                            |   |   | 2010                                                                                  |   |   | 2012                                                                            |   |   | Thereafter                                                                                              |   |   | Total     |
| Mortgage      notes payable               |   | $      | 116,357                                                                         |   | $      | 179,502                                                                               |   | $      | 198,728                                                                         |   | $      | 768,286                                                                                                 |   | $      | 1,262,873 |
| Exchangeable      bonds                   |   |   |              - |   |   |               - |   |   |              - |   |   | 225,000                                                                                                 |   |   | 225,000   |
| Lines      of credit                      |   |   | 8,818                                                                           |   |   | 161,000                                                                               |   |   |              - |   |   |                  - |   |   | 169,818   |
| Interest      on indebtedness             |   |   | 87,000                                                                          |   |   | 93,100                                                                                |   |   | 57,900                                                                          |   |   | 204,800                                                                                                 |   |   | 442,800   |
| Development      commitments              |   |   | 153,000                                                                         |   |   | 260,600                                                                               |   |   | 89,800                                                                          |   |   | 33,700                                                                                                  |   |   | 537,100   |
| Redevelopment      commitments            |   |   | 42,700                                                                          |   |   | 31,900                                                                                |   |   |              - |   |   |                  - |   |   | 74,600    |
| Essex      Apartment Value Fund II, L.P.  |   |   |                                                                            |   |   |                                                                                  |   |   |                                                                            |   |   |                                                                                                    |   |   |      |
|    capital      commitment |   |   | 13,383                                                                          |   |   |               - |   |   |              - |   |   |                  - |   |   | 13,383    |
|                                      |   | $      | 421,258                                                                         |   | $      | 726,102                                                                               |   | $      | 346,428                                                                         |   | $      | 1,231,786                                                                                               |   | $      | 2,725,574 |

----

----

| · funds      may be expended and management's time devoted to projects that may not be      completed;                         |
|------------------------------------------------------------------------------------------------------------------------------------------|
| · construction      costs of a project may exceed original estimates possibly making the      project economically unfeasible; |
| · projects      may be delayed due to, among other things, adverse weather      conditions;                                    |
| · occupancy      rates and rents at a completed project may be less than anticipated;      and                                 |
| · expenses      at a completed development project may be higher than      anticipated.                                        |

----

Item 7A. Quantitative and Qualitative Disclosures About MarketRisks

|                                                  |   |    |     |            |     |   |                                                                             |        Carrying      and |                                                                                   |      |                                                                                                                      |      |
|-------------------------------------------------------|--------|---------|----------|-----------------|----------|--------|----------------------------------------------------------------------------------|-------------------------------|----------------------------------------------------------------------------------------|-----------|---------------------------------------------------------------------------------------------------------------------------|-----------|
|                                                  |   |    | Notional |            | Maturity |   |                                                                             | Estimate      Fair            |                                                                                   | +      50 |                                                                                                                      | -      50 |
| (Dollars      in thousands)                           |   | Amount  |     | Date      Range |     |   | Value                                                                            |                          | Basis      Points                                                                      |      | Basis      Points                                                                                                         |
| Cash      flow hedges:                                |   |    |     |            |     |   |                                                                             |                          |                                                                                   |      |                                                                                                                      |
|   Interest      rate forward-starting swaps | $      | 450,000 |     | 2008-2011       |     | $      |      (10,240)                                           | $                             |          5,828                            | $         |          (27,504)                                                            |
|   Interest      rate caps                   |   | 152,749 |     | 2008-2011       |     |   |              13 |                          |               42 |      |                     3 |
|     Total      cash flow hedges   | $      | 602,749 |     | 2008-2011       |     | $      |      (10,227)                                           | $                             |          5,870                            | $         |          (27,501)                                                            |

|                          |   |   | For      the Years Ended December 31 |
|-------------------------------|--------|--------|--------------------------------------|
|                          |   |   | 2008(1)                              |   |   | 2009 |   |   | 2010(2) |   |   | 2011(3) |   |   | 2012 |   |   | Thereafter |   |   | Total |   |   | Fair      value |
| (In      thousands)           |   |   |                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |          |   |   |   |   |   |
| Fixed      rate debt          |   | $      | 116,357                              |   | $ | 24,689 |   | $ | 154,813 |   | $ | 166,545 |   | $ | 32,183 |   | $ | 760,148 |   | $ | 1,254,735 |   | $ | 1,301,938 |
| Average      interest rate    |   |   | 6.8%                                 |   |   | 7.2% |   |   | 8.0% |   |   | 6.3% |   |   | 5.2% |   |   | 5.2% |   |   |   |   |   |   |
| Variable      rate LIBOR debt |   | $      | 8,818                                |   | $ | 173,150 |   | $ |               - |   | $ |             - |   | $ |            - |   | $ | 220,988 | (4) | $ | 402,956 |   | $ | 402,956 |
| Average      interest rate    |   |   | 5.6%                                 |   |   | 5.7% |   |   |               - |   |   |             - |   |   |            - |   |   | 4.5% |   |   |   |   |   |   |

----

The table incorporates only those exposures that exist as of December31, 2007; it does not consider those exposures or positions that could ariseafter that date. As a result, our ultimate realized gain or loss, with respectto interest rate fluctuations, would depend on the exposures that arise duringthe period, our hedging strategies at the time, and interestrates.

Item 9. Changes in and Disagreements with Accountants on Accountingand Financial Disclosure

----

Item 11. Executive Compensation

Item 12. Security Ownership of Certain Beneficial Owners andManagement and Related Stockholder Matters

Item 13. Certain Relationships and Related Transactions and DirectorIndependence

Item 14. Principal Accounting Fees and Services

----

| (1)   Consolidated      Financial Statements                                                                                                                                             | Page       |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|------------|
| Reports      of Independent Registered Public Accounting Firm                                                                                                                                           | F-1        |
| Consolidated      Balance Sheets:As      of December 31, 2007 and 2006                                                                                                                                  |  F-4  |
| Consolidated      Statements of Operations:Years      ended December 31, 2007, 2006 and 2005                                                                                                            |  F-5  |
| Consolidated      Statements of Partners’ Capital:Years      ended December 31, 2007, 2006 and 2005                                                                                               |  F-6  |
| Consolidated      Statements of Cash Flows:Years      ended December 31, 2007, 2006 and 2005                                                                                                            |  F-7  |
| Notes      to the Consolidated Financial Statements                                                                                                                                                     | F-9        |
| (2)  Financial      Statement Schedule - Schedule III - Real Estate and Accumulated      Depreciation as of December 31, 2007                                                                 |  F-31 |
| (3)   See      the Exhibit Index immediately following the signature page and      certifications for a list of exhibits filed or incorporated by reference      as part of this report. |       |

----

----

----

----

ESSEX PORTFOLIO, L.P. AND SUBSIDIARIES

|                                                                                                     |   |   | 2007                                                                                                    |   |    | 2006                                                                                                    |
|----------------------------------------------------------------------------------------------------------|--------|--------|---------------------------------------------------------------------------------------------------------|--------|---------|---------------------------------------------------------------------------------------------------------|
| ASSETS                                                                                                   |   |   |                                                                                                    |   |    |                                                                                                    |
| Real      estate:                                                                                        |   |   |                                                                                                    |   |    |                                                                                                    |
|    Rental      properties:                                                                |   |   |                                                                                                    |   |    |                                                                                                    |
|        Land      and land improvements                                |   | $      |        670,494                                                       |   |  $ |        560,880                                                       |
|        Buildings      and improvements                                |   |   |     2,447,265                                                                       |   |    |     2,108,307                                                                       |
|                                                                                                     |   |   |     3,117,759                                                                       |   |    |     2,669,187                                                                       |
|    Less      accumulated depreciation                                                     |   |   |       (541,987)                                                           |   |    |      (465,015)                                                                 |
|                                                                                                     |   |   |     2,575,772                                                                       |   |    |     2,204,172                                                                       |
|                                                                                                     |   |   |                                                                                                    |   |    |                                                                                                    |
|    Real      estate - held for sale, net                                                  |   |   |                  - |   |    |         41,221                                                  |
|    Real      estate under development                                                     |   |   |        233,445                                                       |   |    |        107,620                                                       |
|    Co-investments                                                                         |   |   |          64,191                                            |   |    |         56,318                                                  |
|                                                                                                     |   |   |     2,873,408                                                                       |   |    |     2,409,331                                                                       |
| Cash      and cash equivalents-unrestricted                                                              |   |   |            9,956                                 |   |    |           9,662                                       |
| Cash      and cash equivalents-restricted                                                                |   |   |          12,527                                            |   |    |         13,948                                                  |
| Marketable      securities                                                                               |   |   |            2,017                                 |   |    |                  - |
| Notes      receivable and other receivables from related parties                                         |   |   |              904                       |   |    |           1,209                                       |
| Notes      and other receivables                                                                         |   |   |          49,632                                            |   |    |         18,195                                                  |
| Prepaid      expenses and other assets                                                                   |   |   |          20,286                                            |   |    |         20,632                                                  |
| Deferred      charges, net                                                                               |   |   |          11,593                                            |   |    |         12,863                                                  |
|           Total      assets                            |   | $      |     2,980,323                                                                       |   |  $ |     2,485,840                                                                       |
|                                                                                                     |   |   |                                                                                                    |   |    |                                                                                                    |
|                                                                                                     |   |   |                                                                                                    |   |    |                                                                                                    |
| LIABILITIES AND      PARTNERS' CAPITAL                                                                   |   |   |                                                                                                    |   |    |                                                                                                    |
| Mortgage      notes payable                                                                              |   | $      |     1,262,873                                                                       |   |  $ |     1,060,704                                                                       |
| Mortgage      notes payable - held for sale                                                              |   |   |                  - |   |    |         32,850                                                  |
| Exchangeable      bonds                                                                                  |   |   |        225,000                                                       |   |    |        225,000                                                       |
| Lines      of credit                                                                                     |   |   |        169,818                                                       |   |    |         93,000                                                  |
| Accounts      payable and accrued liabilities                                                            |   |   |          58,148                                            |   |    |         38,614                                                  |
| Dividends      payable                                                                                   |   |   |          28,521                                            |   |    |         24,910                                                  |
| Other      liabilities                                                                                   |   |   |          15,580                                            |   |    |         14,328                                                  |
| Deferred      gain                                                                                       |   |   |            2,193                                 |   |    |           2,193                                       |
|           Total      liabilities                       |   |   |     1,762,133                                                                       |   |    |     1,491,599                                                                       |
| Commitments      and contingencies                                                                       |   |   |                                                                                                    |   |    |                                                                                                    |
| Minority      interests                                                                                  |   |   |          70,347                                            |   |    |         44,950                                                  |
| Redeemable      convertible limited partnership units                                                    |   |   |            4,750                                 |   |    |           4,750                                       |
| Cumulative      convertible preferred equity (liquidation value of    $149,500)                          |   |   |        145,912                                                       |   |    |        145,912                                                       |
| Partners'      Capital:                                                                                  |   |   |                                                                                                    |   |    |                                                                                                    |
|    General      Partner:                                                                  |   |   |                                                                                                    |   |    |                                                                                                    |
|         Common      equity                                       |   |   |        774,894                                                       |   |    |        590,070                                                       |
|         Preferred      equity (liquidation value of $25,000)     |   |   |          24,412                                            |   |    |         24,412                                                  |
|                                                                                                     |   |   |        799,306                                                       |   |    |        614,482                                                       |
|    Limited      Partners:                                                                 |   |   |                                                                                                    |   |    |                                                                                                    |
|         Common      equity                                       |   |   |          80,173                                            |   |    |         59,730                                                  |
|         Preferred      equity (liquidation value of $130,000)    |   |   |        126,690                                                       |   |    |        126,690                                                       |
|                                                                                                     |   |   |        206,863                                                       |   |    |        186,420                                                       |
|    Accumulated      other comprehensive (loss) income                                     |   |   |          (8,988)                                           |   |    |          (2,273)                                           |
|           Total      partners' capital                 |   |   |        997,181                                                       |   |    |        798,629                                                       |
|                                                                                                     |   |   |                                                                                                    |   |    |                                                                                                    |
|           Total      liabilities and partners' capital |   | $      |     2,980,323                                                                       |   |  $ |     2,485,840                                                                       |

----

ESSEX PORTFOLIO, L.P. AND SUBSIDIARIES

|                                                                                                     |   |                                                                                                          |  2007                                                                         |   |                                                                                                          | 2006                                                                               |   |                                                                               | 2005                                                                               |
|----------------------------------------------------------------------------------------------------------|--------|---------------------------------------------------------------------------------------------------------------|------------------------------------------------------------------------------------|--------|---------------------------------------------------------------------------------------------------------------|------------------------------------------------------------------------------------|--------|------------------------------------------------------------------------------------|------------------------------------------------------------------------------------|
|  Revenues:                                                                                          |   |                                                                                                          |                                                                               |   |                                                                                                          |                                                                               |   |                                                                               |                                                                               |
|     Rental      and other property                                                   |   |  $                                                                                                       |         383,433                            |   |  $                                                                                                       |         334,770                            |   |  $                                                                            |         303,235                            |
|     Management      and other fees from affiliates                                   |   |            5,090                                       |                                                                               |   |            5,030                                       |                                                                               |   |           10,951                 |
|                                                                                                     |   |         388,523                                                       |                                                                               |   |         339,800                                                       |                                                                               |   |         314,186                            |
|  Expenses:                                                                                          |   |                                                                                                          |                                                                               |   |                                                                                                          |                                                                               |   |                                                                               |
|     Property      operating, excluding real estate taxes                             |   |           95,849                                            |                                                                               |   |           85,811                                            |                                                                               |   |           78,715                 |
|     Real      estate taxes                                                           |   |           32,575                                            |                                                                               |   |           28,587                                            |                                                                               |   |           25,764                 |
|     Depreciation      and amortization                                               |   |         100,389                                                       |                                                                               |   |           78,094                                            |                                                                               |   |           74,849                 |
|     Interest                                                                         |   |           80,995                                            |                                                                               |   |           72,898                                            |                                                                               |   |           70,784                 |
|     Amortization      of deferred financing costs                                    |   |            3,071                                       |                                                                               |   |            2,745                                       |                                                                               |   |            1,947            |
|     General      and administrative                                                  |   |           26,273                                            |                                                                               |   |           22,234                                            |                                                                               |   |           19,148                 |
|     Other      expenses                                                              |   |               800                       |                                                                               |   |            1,770                                       |                                                                               |   |            5,827            |
|                                                                                                     |   |         339,952                                                       |                                                                               |   |         292,139                                                       |                                                                               |   |         277,034                            |
|  Earnings      from operations                                                                      |   |                                                                                                          |           48,571                 |   |                                                                                                          |           47,661                 |   |                                                                               |           37,152                 |
|                                                                                                     |   |                                                                                                          |                                                                               |   |                                                                                                          |                                                                               |   |                                                                               |                                                                               |
|  Gain      on sale of real estate                                                                   |   |                   - |                                                                               |   |                   - |                                                                               |   |            6,391            |
|  Interest      and other income                                                                     |   |           10,310                                            |                                                                               |   |            6,176                                       |                                                                               |   |            8,524            |
|  Equity      income (loss) in co-investments                                                        |   |            3,120                                       |                                                                               |   |           (1,503)                                           |                                                                               |   |           18,553                 |
|  Minority      interests                                                                            |   |           (4,847)                                           |                                                                               |   |           (4,977)                                           |                                                                               |   |           (5,340)                |
|        Income      before discontinued operations and tax provision   |   |           57,154                                            |                                                                               |   |           47,357                                            |                                                                               |   |           65,280                 |
|  Income      tax provision                                                                          |   |              (400)                           |                                                                               |   |              (525)                           |                                                                               |   |           (2,538)                |
|  Income      before discontinued operations                                                         |   |           56,754                                            |                                                                               |   |           46,832                                            |                                                                               |   |           62,742                 |
|                                                                                                     |   |                                                                                                          |                                                                               |   |                                                                                                          |                                                                               |   |                                                                               |                                                                               |
|  Income      from discontinued operations (net of minority interests)                               |   |           80,546                                            |                                                                               |   |           33,015                                            |                                                                               |   |           35,558                 |
|        Net      income                                                |   |         137,300                                                       |                                                                               |   |           79,847                                            |                                                                               |   |           98,300                 |
|  Distribution      on preferred units - Series F & G                                            |   |           (9,174)                                           |                                                                               |   |           (5,145)                                           |                                                                               |   |           (1,953)                |
|  Distribution      on preferred units - limited partners                                            |   |         (10,238)                                                      |                                                                               |   |         (10,238)                                                      |                                                                               |   |         (10,238)                           |
|        Net      income available to common units                      |   |  $                                                                                                       |         117,888                            |   |  $                                                                                                       |           64,464                 |   |  $                                                                            |           86,109                 |
|  Per      unit data:                                                                                |   |                                                                                                          |                                                                               |   |                                                                                                          |                                                                               |   |                                                                               |
|     Basic:                                                                           |   |                                                                                                          |                                                                               |   |                                                                                                          |                                                                               |   |                                                                               |
|       Income      before discontinued operations available to common units |   |  $                                                                                                       |              1.38 |   |  $                                                                                                       |              1.23 |   |  $                                                                            |              2.00 |
|       Income      from discontinued operations                             |   |              2.98                            |                                                                               |   |              1.29                            |                                                                               |   |              1.40 |
|         Net      income available to common units                |   |  $                                                                                                       |              4.36 |   |  $                                                                                                       |              2.52 |   |  $                                                                            |              3.40 |
|                                                                                                     |   |                                                                                                          |                                                                               |   |                                                                                                          |                                                                               |   |                                                                               |
|     Weighted      average number of units outstanding during the year                |   |    27,043,697                                                                                  |                                                                               |   |    25,560,415                                                                                  |                                                                               |   |    25,343,695                                                       |
|     Diluted:                                                                         |   |                                                                                                          |                                                                               |   |                                                                                                          |                                                                               |   |                                                                               |
|       Income      before discontinued operations available to common units |   |  $                                                                                                       |              1.35 |   |  $                                                                                                       |              1.21 |   |  $                                                                            |              1.97 |
|       Income      from discontinued operations                             |   |              2.92                            |                                                                               |   |              1.27                            |                                                                               |   |              1.38 |
|         Net      income available to common units                |   |  $                                                                                                       |              4.27 |   |  $                                                                                                       |              2.48 |   |  $                                                                            |              3.35 |
|                                                                                                     |   |                                                                                                          |                                                                               |   |                                                                                                          |                                                                               |   |                                                                               |                                                                               |
|     Weighted      average number of units outstanding during the year                |   |    27,596,668                                                                                  |                                                                               |   |    26,029,775                                                                                  |                                                                               |   |    25,693,637                                                       |

----

ESSEX PORTFOLIO, L.P. AND SUBSIDIARIES

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |                                                                                                    | General      Partner                       |    |  Limited      Partners                                                                                                                 |                                                          | Accumulated |                                                                                                                                              |                                                                           |                                                                                                          |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------|--------------------------------------------|--------------|---------------------------------------------------------------------------------------------------------------------------------------------|---------------------------------------------------------------|-------------|---------------------------------------------------------------------------------------------------------------------------------------------------|--------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |                                                                                                    |                                       |         |                                                                                                                                        |                                                          |        |                                                                                                                                              | Preferred                                                                      |                                                                                                          |   |   |   |   |   |   | Preferred |   |   | other |   |   |   |
|                                                                                            |                                                                                                    | Common      Equity                         |         |                                                                                                                                        | Equity                                                        |        | Common      Equity                                                                                                                                |                                                                           |                                                                                                          | Equity |   |   | comprehensive |   |   |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |                                                                                                    | Units                                      |         |                                                                                                                                        | Amount                                                        |        |                                                                                                                                              | Amount                                                                         |                                                                                                          | Units |   |   | Amount |   |   | Amount |   |   | (loss)      income |   |   | Total |
| Balances      at December 31, 2004                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |                                                                                                    |       23,041 |         |  $                                                                                                                                     |          566,865 |        |  $                                                                                                                                           |             24,412 |                                                                                                          |         2,478 |   |  $ |            59,436 |   |  $ |           126,690 |   |  $ |                                  - |   |  $ |                    777,403 |
| Comprehensive      income:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |                                                                                                    |                                       |         |                                                                                                                                        |                                                          |        |                                                                                                                                              |                                                                           |                                                                                                          |   |   |   |   |   |   |   |   |   |   |   |   |   |
|    Net      income                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |                  - |                                       |         |            77,763                                                                    |                                                          |        |                1,953                                                   |                                                                           |                  -       |   |   |               8,346 |   |   |             10,238 |   |   |                                  - |   |   |                      98,300 |
|    Change      in fair value of cash flow hedges                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |                  - |                                       |         |                        - |                                                          |        |                        -       |                                                                           |                  -       |   |   |                        - |   |   |                        - |   |   |                            660 |   |   |                            660 |
| Comprehensive      income                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |                                                                                                    |                                       |         |                                                                                                                                        |                                                          |        |                                                                                                                                              |                                                                           |                                                                                                          |   |   |   |   |   |   |   |   |   |   |   |   |                      98,960 |
| Issuance      of common units under                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |                                                                                                    |                                       |         |                                                                                                                                        |                                                          |        |                                                                                                                                              |                                                                           |                                                                                                          |   |   |   |   |   |   |   |   |   |   |   |   |   |
|    stock-based      compensation plans                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |             103                             |                                       |         |               5,767                                                   |                                                          |        |                        -       |                                                                           |                  -       |   |   |                        - |   |   |                        - |   |   |                                  - |   |   |                         5,767 |
| Retirement      of Essex Property Trust, Inc.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |                                                                                                    |                                       |         |                                                                                                                                        |                                                          |        |                                                                                                                                              |                                                                           |                                                                                                          |   |   |   |   |   |   |   |   |   |   |   |   |   |
|    common      stock                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |          (286)                                             |                                       |         |          (25,000)                                                                              |                                                          |        |                        -       |                                                                           |                  -       |   |   |                        - |   |   |                        - |   |   |                                  - |   |   |                    (25,000) |
| Redemption      of limited partner common units                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |                  - |                                       |         |                        - |                                                          |        |                        -       |                                                                           |             (89)                                  |   |   |              (2,861) |   |   |                        - |   |   |                                  - |   |   |                        (2,861) |
| Vested      series Z and Z-1 incentive units                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |                  - |                                       |         |                        - |                                                          |        |                        -       |                                                                           |               48                        |   |   |                2,351 |   |   |                        - |   |   |                                  - |   |   |                          2,351 |
| Reallocation      of partners' capital                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |                  - |                                       |         |                5,135                                             |                                                          |        |                        -       |                                                                           |                  -       |   |   |              (5,135) |   |   |                        - |   |   |                                  - |   |   |                                  - |
| Partners'      distributions                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |                  - |                                       |         |          (74,635)                                                                              |                                                          |        |              (1,953)                                                             |                                                                           |                  -       |   |   |             (7,885) |   |   |           (10,238) |   |   |                                  - |   |   |                      (94,711) |
| Balances      at December 31, 2005                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |      22,858                                                                    |                                       |  $      |          555,895                                                                               |                                                          |  $     |             24,412                                                                    |                                                                           |         2,437                                                         |   |  $ |            54,252 |   |  $ |           126,690 |   |  $ |                            660 |   |  $ |                     761,909 |
| Comprehensive      income:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |                                                                                                    |                                       |         |                                                                                                                                        |                                                          |        |                                                                                                                                              |                                                                           |                                                                                                          |   |   |   |   |   |   |   |   |   |   |   |   |   |
|    Net      income                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |                  - |                                       |         |            57,603                                                                    |                                                          |        |                5,145                                                   |                                                                           |                  -       |   |   |                6,861 |   |   |             10,238 |   |   |                                  - |   |   |                      79,847 |
|    Change      in fair value of cash flow hedges                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |                  - |                                       |         |                        - |                                                          |        |                        -       |                                                                           |                  -       |   |   |                        - |   |   |                        - |   |   |                       (2,933) |   |   |                       (2,933) |
| Comprehensive      income                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |                                                                                                    |                                       |         |                                                                                                                                        |                                                          |        |                                                                                                                                              |                                                                           |                                                                                                          |   |   |   |   |   |   |   |   |   |   |   |   |                       76,914 |
| Issuance      of common units under                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |                                                                                                    |                                       |         |                                                                                                                                        |                                                          |        |                                                                                                                                              |                                                                           |                                                                                                          |   |   |   |   |   |   |   |   |   |   |   |   |   |
|    Stock-based      compensation plans                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |               92                  |                                       |         |               5,575                                                   |                                                          |        |                        -       |                                                                           |                  -       |   |   |                        - |   |   |                        - |   |   |                                  - |   |   |                         5,575 |
|    Sale      of common stock                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  | 427                                                                                                     |                                       |         |            48,273                                                                    |                                                          |        |                        -       |                                                                           |                  -       |   |   |                        - |   |   |                        - |   |   |                                  - |   |   |                      48,273 |
| Issuance      of general partner common units                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                | 39                                                                                                      |                                       |         |                  443                                   |                                                          |        |                        -       |                                                                           |                  -       |   |   |                        - |   |   |                        - |   |   |                                  - |   |   |                            443 |
| Issuance      of limited partners' common units                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |                  - |                                       |         |                        - |                                                          |        |                        -       |                                                                           |               73                        |   |   |               7,704 |   |   |                        - |   |   |                                  - |   |   |                         7,704 |
| Redemption      of limited partner common units                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |                  - |                                       |         |                        - |                                                          |        |                        -       |                                                                           |             (57)                                  |   |   |             (2,863) |   |   |                        - |   |   |                                  - |   |   |                       (2,863) |
| Vested      series Z and Z-1 incentive units                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |                  - |                                       |         |                        - |                                                          |        |                        -       |                                                                           |               42                        |   |   |                1,759 |   |   |                        - |   |   |                                  - |   |   |                          1,759 |
| Reallocation      of partners' capital                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |                  - |                                       |         |                        - |                                                          |        |                        -       |                                                                           |                  -       |   |   |                  307 |   |   |                        - |   |   |                                  - |   |   |                            307 |
| Partners'      distributions                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |                  - |                                       |         |           (77,719)                                                                        |                                                          |        |              (5,145)                                                             |                                                                           |                  -       |   |   |             (8,290) |   |   |           (10,238) |   |   |                                  - |   |   |                    (101,392) |
| Balances      at December 31, 2006                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |       23,416                                                              |                                       |  $      |          590,070                                                                               |                                                          |  $     |             24,412                                                                    |                                                                           |         2,495                                                         |   |  $ |            59,730 |   |  $ |           126,690 |   |  $ |                       (2,273) |   |  $ |                    798,629 |
| Comprehensive      income:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |                                                                                                    |                                       |         |                                                                                                                                        |                                                          |        |                                                                                                                                              |                                                                           |                                                                                                          |   |   |   |   |   |   |   |   |   |   |   |   |   |
|    Net      income                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |                  - |                                       |         |           106,464                                                                         |                                                          |        |                9,174                                                   |                                                                           |                  -       |   |   |              11,424 |   |   |             10,238 |   |   |                                  - |   |   |                     137,300 |
|    Settlement      of forward-starting swap                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |                  - |                                       |         |                        - |                                                          |        |                        -       |                                                                           |                  -       |   |   |                        - |   |   |                        - |   |   |                            1,311 |   |   |                            1,311 |
|    Change      in fair value of cash flow hedges and                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |                                                                                                    |                                       |         |                                                                                                                                        |                                                          |        |                                                                                                                                              |                                                                           |                                                                                                          |   |   |   |   |   |   |   |   |   |   |   |   |
|    amortization      of gain on settlement of swap                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |                  - |                                       |         |                        - |                                                          |        |                        -       |                                                                           |                  -       |   |   |                        - |   |   |                        - |   |   |                       (8,026) |   |   |                       (8,026) |
| Comprehensive      income                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |                                                                                                    |                                       |         |                                                                                                                                        |                                                          |        |                                                                                                                                              |                                                                           |                                                                                                          |   |   |   |   |   |   |   |   |   |   |   |   |                     130,585 |
| Issuance      of common units under                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |                                                                                                    |                                       |         |                                                                                                                                        |                                                          |        |                                                                                                                                              |                                                                           |                                                                                                          |   |   |   |   |   |   |   |   |   |   |   |   |   |
|    Stock-based      compensation plans                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |               87                  |                                       |         |               5,648                                                   |                                                          |        |                        -       |                                                                           |                  -       |   |   |                        - |   |   |                        - |   |   |                                  - |   |   |                         5,648 |
|    Sale      of common stock                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |           1,671                                       |                                       |         |           213,672                                                                         |                                                          |        |                        -       |                                                                           |                  -       |   |   |                        - |   |   |                        - |   |   |                                  - |   |   |                     213,672 |
| Retirement      of common units from retirement of            common stock                                                                                                                                                                                                                                                                                                                                                                                                                                                          |          (323)                                             |                                       |         |          (32,644)                                                                              |                                                          |        |                        -       |                                                                           |                  -       |   |   |                        - |   |   |                        - |   |   |                                  - |   |   |                    (32,644) |
| Issuance      of general partner common units and          reallocation between general partner and limited         partners                                                                                                                                                                                                                                                                                                                                                                                                        |                26            |                                       |         |            (16,504)                                                                  |                                                          |        |                         - |                                                                           |                   - |   |   |                         18,767 |   |   |                         - |   |   |                                   - |   |   |                      2,263 |
| Issuance      of limited partners' common units                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |                  - |                                       |         |                        - |                                                          |        |                        -       |                                                                           |                  -       |   |   |                        - |   |   |                        - |   |   |                                  - |   |   |                                  - |
| Redemption      of limited partner common units                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |                  - |                                       |         |                        - |                                                          |        |                        -       |                                                                           |             (37)                                  |   |   |             (2,088) |   |   |                        - |   |   |                                  - |   |   |                       (2,088) |
| Vested      series Z and Z-1 incentive units                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |                  - |                                       |         |                        - |                                                          |        |                        -       |                                                                           |               29                        |   |   |                1,595 |   |   |                        - |   |   |                                  - |   |   |                          1,595 |
| Partners'      distributions                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |                  - |                                       |         |            (91,812)                                                                  |                                                          |        |              (9,174)                                                             |                                                                           |                  -       |   |   |             (9,255) |   |   |           (10,238) |   |   |                                  - |   |   |                   (120,479) |
| Balances      at December 31, 2007                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |      24,877                                                                    |                                       |  $      |          774,894                                                                               |                                                          |  $     |             24,412                                                                    |                                                                           |         2,487                                                         |   |  $ |             80,173 |   |  $ |           126,690 |   |  $ |                       (8,988) |   |  $ |                      997,181 |

----

ESSEX PORTFOLIO, L.P. AND SUBSIDIARIES

|                                                                                                                       |   |                     | 2007                                                                                        |   |    | 2006                                                                                  |   |    | 2005                                                                                        |
|----------------------------------------------------------------------------------------------------------------------------|--------|--------------------------|---------------------------------------------------------------------------------------------|--------|---------|---------------------------------------------------------------------------------------|--------|---------|---------------------------------------------------------------------------------------------|
| Cash      flows from operating activities:                                                                                 |   |                     |                                                                                        |   |    |                                                                                  |   |    |                                                                                        |
|    Net      income                                                                                          |   | $                        |    137,300                                                                   |   |  $ |      79,847                                                  |   |  $ |      98,300                                                        |
|    Minority      interests                                                                                  |   |                     |        4,847                                             |   |    |        5,639                                       |   |    |        5,687                                             |
|    Adjustments      to reconcile net income to net                                                          |   |                     |                                                                                        |   |    |                                                                                  |   |    |                                                                                        |
|     cash      provided by operating activities:                                                        |   |                     |                                                                                        |   |    |                                                                                  |   |    |                                                                                        |
|      Gain      on the sales of real estate                                                        |   |      |     (66,559)                                                            |   |    |    (22,096)                                                            |   |    |    (37,802)                                                                  |
|      The      Operating Partnership's share of gain on the sales of                               |   |                     |                                                                                        |   |    |                                                                                  |   |    |                                                                                        |
|        co-investments      assets                                                       |   |                     |       (2,046)                                                 |   |    |               - |   |    |    (18,115)                                                                  |
|      Impairment      loss and reserve for loan loss                                               |   |                     |           500                             |   |    |           800                       |   |    |        1,300                                             |
|      Equity      (income) loss of co-investments                                                  |   |                     |          (320)                                 |   |    |        1,503                                       |   |    |      (7,420)                                                       |
|      Depreciation      and amortization                                                           |   |                     |    100,389                                                                   |   |    |      83,036                                                  |   |    |      80,075                                                        |
|      Amortization      of deferred financing costs                                                |   |                     |        3,071                                             |   |    |        2,743                                       |   |    |        1,970                                             |
|      Changes      in operating assets and liabilities:                                            |   |                     |                                                                                        |   |    |                                                                                  |   |    |                                                                                        |
|         Prepaid      expenses and other assets                                     |   |                     |        2,458                                             |   |    |           493                       |   |    |      (4,762)                                                       |
|         Accounts      payable and accrued liabilities                              |   |                     |        9,984                                             |   |    |        6,162                                       |   |    |        4,709                                             |
|         Other      liabilities                                                     |   |                     |        1,254                                             |   |    |        1,808                                       |   |    |           667                             |
|            Net      cash provided by operating activities           |   |                     |    190,878                                                                   |   |    |    159,935                                                             |   |    |    124,609                                                                   |
| Cash      flows used in investing activities:                                                                              |   |                     |                                                                                        |   |    |                                                                                  |   |    |                                                                                        |
|    Additions      to real estate:                                                                           |   |                     |                                                                                        |   |    |                                                                                  |   |    |                                                                                        |
|         Acquisitions      of real estate                                           |   |                     |   (336,312)                                                                       |   |    |  (199,107)                                                                       |   |    |    (91,496)                                                                  |
|         Improvements      to recent acquisitions                                   |   |                     |       (5,145)                                                 |   |    |      (5,238)                                                 |   |    |      (5,009)                                                       |
|         Redevelopment                                                              |   |                     |     (38,618)                                                            |   |    |    (25,609)                                                            |   |    |    (14,229)                                                                  |
|         Revenue      generating capital expenditures                               |   |                     |     (11,044)                                                            |   |    |      (4,788)                                                 |   |    |      (2,933)                                                       |
|         Non-revenue      generating capital expenditures                           |   |                     |     (22,620)                                                            |   |    |    (19,120)                                                            |   |    |    (14,568)                                                                  |
|    Additions      to real estate under development                                                          |   |                     |   (142,968)                                                                       |   |    |    (68,362)                                                            |   |    |    (24,861)                                                                  |
|    Dispositions      of real estate                                                                         |   |                     |    218,069                                                                   |   |    |      38,092                                                  |   |    |      68,585                                                        |
|    Changes      in restricted cash and refundable deposits                                                  |   |                     |           467                             |   |    |        4,371                                       |   |    |        7,318                                             |
|    Purchases      of marketable securities                                                                  |   |                     |       (7,776)                                                 |   |    |               - |   |    |                - |
|    Sales      of marketable securities                                                                      |   |                     |        5,759                                             |   |    |               - |   |    |                - |
|    Advances      under notes and other receivables                                                          |   |                     |     (36,145)                                                            |   |    |    (26,125)                                                            |   |    |      (3,220)                                                       |
|    Collections      of notes and other receivables                                                          |   |                     |        3,724                                             |   |    |      21,234                                                  |   |    |        4,880                                             |
|    Contributions      to co-investments                                                                     |   |                     |     (21,647)                                                            |   |    |    (38,395)                                                            |   |    |      (4,799)                                                       |
|    Distributions      from co-investments                                                                   |   |                     |      16,385                                                        |   |    |      10,171                                                  |   |    |      49,489                                                        |
|            Net      cash used in investing activities               |   |                     |   (377,871)                                                                       |   |    |  (312,876)                                                                       |   |    |    (30,843)                                                                  |
| Cash      flows from financing activities:                                                                                 |   |                     |                                                                                        |   |    |                                                                                  |   |    |                                                                                        |
|    Borrowings      under mortgage and other notes payable and lines of credit                               |   |                     |    866,397                                                                   |   |    |    324,228                                                             |   |    |    205,096                                                                   |
|    Repayment      of mortgage and other notes payable and lines of credit                                   |   |                     |   (678,383)                                                                       |   |    |  (266,965)                                                                       |   |    |  (389,363)                                                                             |
|    Additions      to deferred charges                                                                       |   |                     |       (1,800)                                                 |   |    |         (587)                                 |   |    |      (6,339)                                                       |
|    Proceeds      from settlement of derivative instruments                                                  |   |                     |        1,311                                             |   |    |               - |   |    |                - |
|    Proceeds      from exchangeable bonds                                                                    |   |                     |                - |   |    |               - |   |    |    225,000                                                                   |
|    Retirement      of Essex Property Trust, Inc. common stock                                               |   |                     |     (32,644)                                                            |   |    |               - |   |    |    (25,000)                                                                  |
|    Net      proceeds from stock options exercised                                                           |   |                     |        4,321                                             |   |    |        4,287                                       |   |    |        4,489                                             |
|    Net      proceeds from issuance of common units to general partners                                      |   |                     |    213,672                                                                   |   |    |      48,273                                                  |   |    |                - |
|    Net      proceeds from issuance of preferred equity, Series G                                            |   |                     |                - |   |    |    145,912                                                             |   |    |                - |
|    Contributions      from minority interest partner                                                        |   |                     |        4,000                                             |   |    |               - |   |    |                - |
|    Distributions      to limited partners and minority interest partners                                    |   |                     |     (82,715)                                                            |   |    |    (21,657)                                                            |   |    |    (23,165)                                                                  |
|    Redemption      of limited partner units and minority interests                                          |   |                     |       (9,233)                                                 |   |    |      (4,779)                                                 |   |    |      (4,528)                                                       |
|    Distributions      to general partner                                                                    |   |                     |     (97,639)                                                            |   |    |    (80,446)                                                            |   |    |    (76,263)                                                                  |
|            Net      cash provided by (used in) financing activities |   |                     |    187,287                                                                   |   |    |    148,266                                                             |   |    |    (90,073)                                                                  |
| Net      increase (decrease) in cash and cash equivalents                                                                  |   |                     |           294                             |   |    |      (4,675)                                                 |   |    |        3,693                                             |
| Cash      and cash equivalents at beginning of year                                                                        |   |                     |        9,662                                             |   |    |      14,337                                                  |   |    |      10,644                                                        |
| Cash      and cash equivalents at end of year                                                                              |   | $                        |        9,956                                             |   |  $ |        9,662                                       |   |  $ |      14,337                                                        |

----

|                                                                                                       |   |   | 2007                                                                                        |   |    | 2006                                                                                  |   |    | 2005                                                                                        |
|------------------------------------------------------------------------------------------------------------|--------|--------|---------------------------------------------------------------------------------------------|--------|---------|---------------------------------------------------------------------------------------|--------|---------|---------------------------------------------------------------------------------------------|
| Supplemental      disclosure of cash flow information:                                                     |   |   |                                                                                        |   |    |                                                                                  |   |    |                                                                                        |
|    Cash      paid for interest, net of $5,100, $3,900 and $1,100                            |   |   |                                                                                        |   |    |                                                                                  |   |    |                                                                                        |
|     capitalized      in 2007, 2006 and 2005, respectively                              |   | $      |      74,397                                                        |   |  $ |      68,686                                                  |   |  $ |      71,619                                                        |
| Supplemental      disclosure of noncash investing and                                                      |   |   |                                                                                        |   |    |                                                                                  |   |    |                                                                                        |
|  financing      activities:                                                                           |   |   |                                                                                        |   |    |                                                                                  |   |    |                                                                                        |
|    Mortgage      notes assumed in connection with purchases                                 |   |   |                                                                                        |   |    |                                                                                  |   |    |                                                                                        |
|      of      real estate                                                          |   | $      |      43,839                                                        |   |    |               - |   |    |                - |
|    Land      contributed by a partner in a consolidated joint venture                       |   | $      |      22,200                                                        |   |    |               - |   |    |                - |
|    Issuance      of DownREIT units in connection with                                       |   |   |                                                                                        |   |    |                                                                                  |   |    |                                                                                        |
|      purchase      of real estate                                                 |   | $      |        7,067                                             |   |    |               - |   |    |                - |
|    Issuance      of Operating Partnership units in                                          |   |   |                                                                                        |   |    |                                                                                  |   |    |                                                                                        |
|      connection      with the purchase of real estate                             |   |   |                - |   |  $ |        7,704                                       |   |    |                - |
|    Land      contributed by a partner in a consolidated joint venture                       |   |   |                                                                                        |   |    |                                                                                  |   |    |                                                                                        |
|    Accrual      of distributions                                                            |   | $      |      28,521                                                        |   |  $ |      24,910                                                  |   |  $ |      22,496                                                        |
|    Change      in value of cash flow hedges and amortization of swap      settlement        |   |   |                                                                                        |   |    |                                                                                  |   |    |                                                                                        |
|        included      in other liabilities or other assets as applicable |   | $      |       (8,026)                                                 |   |  $ |      (2,933)                                                 |   |  $ |           660                             |
|    Accruals      for capital expenditures included in the year-end balance    of            |   |   |                                                                                        |   |    |                                                                                  |   |    |                                                                                        |
|        accounts      payable and accrued liabilities                    |   | $      |        8,703                                             |   |  $ |        4,804                                       |   |  $ |        4,636                                             |

----

ESSEX PORTFOLIO, L.P. AND SUBSIDIARIES

----

|  Computer      software and equipment                                 |  3 -      5 years                                                                             |
|----------------------------------------------------------------------------|----------------------------------------------------------------------------------------------------|
| Interior      unit improvements                                            | 5      years                                                                                       |
| Land      improvements and certain exterior components of real    property |                     10 years |
| Real      estate structures                                                | 30      years                                                                                      |

| (1)   | estimate the value of the real      estate “as if vacant” as of the acquisition date;        |
|-----------------|---------------------------------------------------------------------------------------------------------------|

| (2)   | allocate that value among land      and building and determine the associated asset life for each;            |
|-----------------|----------------------------------------------------------------------------------------------------------------------------------------|

| (3)   | compute the value of the      difference between the “as if vacant” value and the purchase price, which      will represent the total intangible assets;    |
|-----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (4)   | allocate the value of the above      and below market leases to the intangible assets and determine the      associated life of the above market/ below market      leases; |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (5)   | allocate      the remaining intangible value to the at-market in-place leases or      customer relationships, if any, and the associated lives of these      assets. |
|-----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

----

----

----

----

----

|                                                                                                                                          |   | 2007                                                                        |    | 2006                                                                        |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-----------------------------------------------------------------------------|---------|-----------------------------------------------------------------------------|
| Investments      in joint ventures accounted for under the equity                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
|      method      of accounting:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   |                                                                        |    |                                                                        |
|    Limited      partnership interest of 27.2% and general partner                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |                                                                        |    |
|      interest      of 1% in Essex Apartment Value Fund II, L.P (Fund II)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                | $      |        58,419                            |  $ |        45,598                            |
|    Preferred      limited partnership interest in Mountain Vista                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |   |                                                                        |    |
|      Apartments      LLC (A)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   |          1,182                 |    |          6,806                 |
|    Development      joint venture                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |          4,090                 |    |          3,414                 |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   |        63,691                            |    |        55,818                            |
| Investments      accounted for under the cost method of accounting:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   |                                                                        |    |                                                                        |
|    Series      A Preferred Stock interest in Multifamily Technology Solutions,      Inc                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |   |             500 |    |             500 |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   |                                                                        |    |                                                                        |
|        Total      investments                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 | $      |        64,191                            | $       |        56,318                            |

|   | (A)  The      investment is held in an entity that includes an affiliate of The Marcus      & Millichap Company (“TMMC”), and is the general      partner.  TMMC’s Chairman is also the Chairman of the      Company |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                                                                                                |   |  December      31,                                                                           |   |    |
|-----------------------------------------------------------------------------------------------------|--------|---------------------------------------------------------------------------------------------------|--------|---------|
|                                                                                                |   | 2007                                                                                              |   |    | 2006 |   |   |   |
|  Balance      sheets:                                                                          |
|     Rental      properties and real estate under development                    | $      |      614,266                                                             |   | $       |      576,134 |   |   |   |
|     Other      assets                                                           |   |        16,184                                                  |   |    |        20,681 |   |   |   |
|         Total      assets                                   | $      |      630,450                                                             |   | $       |      596,815 |   |   |   |
|                                                                                                |   |                                                                                              |   |    |   |   |   |   |
|     Mortgage      notes payable                                                 | $      |      322,615                                                             |   | $       |      301,665 |   |   |   |
|     Other      liabilities                                                      |   |        24,014                                                  |   |    |        74,793 |   |   |   |
|     Partners'      capital                                                      |   |      283,821                                                             |   |    |      220,357 |   |   |   |
|         Total      liabilities and partners' capital        | $      |      630,450                                                             |   | $       |      596,815 |   |   |   |
|                                                                                                |   |                                                                                              |   |    |   |   |   |   |
|  Operating      Partnership's share of capital                                                 | $      |        63,691                                                  |   | $       |        55,818 |   |   |   |
|                                                                                                |   |                                                                                              |   |    |   |   |   |
|                                                                                                |   | Years      ended                                                                                  |
|                                                                                                |   | December      31,                                                                                 |
|                                                                                                |   | 2007                                                                                              |   |    | 2006 |   |   | 2005 |
|   Statements      of operations:                                                          |
|      Property      revenues                                                | $      |        46,559                                                  |   |  $ |        43,031 |   |  $ |     28,156 |
|      Property      operating expenses                                      |   |      (18,551)                                                            |   |    |       (20,464) |   |   |   (11,761) |
|        Net      operating income                                 |   |        28,008                                                  |   |    |        22,567 |   |   |     16,395 |
|      Gain      on the sale of real estate                                  |   |                 - |   |    |                  - |   |   |     41,985 |
|      Interest      expense                                                 |   |      (13,888)                                                            |   |    |       (17,000) |   |   |   (11,042) |
|      Depreciation      and amortization                                    |   |      (14,116)                                                            |   |    |       (12,395) |   |   |     (7,037) |
|          Net      income (loss)                        | $      |                 4 |   |  $ |         (6,828) |   |  $ |     40,301 |
|                                                                                                |   |                                                                                              |   |    |   |   |   |   |
|      Operating      Partnership's share of co-investment net income (loss) |   |          1,074                                       |   |    |         (1,503) |   |   |     18,553 |
|      Operating      Partnership's gain on partial sale of its interest     |   |          2,046                                       |   |    |                  - |   |   |               - |
|                                                                                                |   |                                                                                              |   |    |   |   |   |   |
|      Income      (loss) for co-investments                                 | $      |          3,120                                       |   |  $ |         (1,503) |   |  $ |     18,553 |

----

|                                                                                                         |   | 2007                                                                                              |   |   | 2006                                                                        |
|--------------------------------------------------------------------------------------------------------------|--------|---------------------------------------------------------------------------------------------------|--------|--------|-----------------------------------------------------------------------------|
|                                                                                                         |   |                                                                                              |   |   |                                                                        |
| Related      party receivables, unsecured:                                                                   |   |                                                                                              |   |   |
|           Loans to officers made prior to July 31, 2002, secured,                        |   |                                                                                              |   |   |
|                bearing interest of 8%, due beginning April 2007 | $      |                 - |   | $      |             375 |
|           Other related party receivables, substantially due on    demand                |   |             904                       |   |   |             834 |
|           Total notes and other receivable from related parties                          | $      |             904                       |   | $      |          1,209                 |
|                                                                                                         |   |                                                                                              |   |   |                                                                        |

|                                                                                     |   | 2007                                                        |   |   | 2006                                                                                                    |
|------------------------------------------------------------------------------------------|--------|-------------------------------------------------------------|--------|--------|---------------------------------------------------------------------------------------------------------|
|                                                                                     |   |                                                        |   |   |                                                                                                    |
| Note      receivable, secured, bearing interest at 12%, due June2008                     | $      |          2,193 |   | $      |          2,193                                             |
| Note      receivable, secured, bearing interest at LIBOR + 3.69%, due June      2009     |   |          7,346 |   |   |          7,309                                             |
| Note      receivable, secured, bearing interest at LIBOR + 4.65%, due January      2008  |   |          5,448 |   |   |          7,807                                             |
| Note      receivable, secured, bearing interest at LIBOR + 3.38%, due February      2009 |   |          7,128 |   |   |                  - |
| Note      receivable, secured, bearing interest at LIBOR + 4.75%, due March      2011    |   |        10,999            |   |   |                  - |
| Note      receivable, secured, bearing interest at LIBOR + 2.95%, due April      2009    |   |        14,010            |   |   |                  - |
| Other      receivables                                                                   |   |          2,508 |   |   |             886                             |
|                                                                                     | $      |        49,632            |   | $      |        18,195                                                        |

----

----

|                                            |   |    | 2007                                                                                                                                  |   |    | 2006                                                                                                                                  |   |    | 2005                                                                                                                                  |
|-------------------------------------------------|--------|---------|---------------------------------------------------------------------------------------------------------------------------------------|--------|---------|---------------------------------------------------------------------------------------------------------------------------------------|--------|---------|---------------------------------------------------------------------------------------------------------------------------------------|
|                                            |   |    |                                                                                                                                  |   |    |                                                                                                                                  |   |    |                                                                                                                                  |
| Rental      revenues                            |   |  $ |                9,466                                       |   |  $ |              19,537                                                  |   |  $ |              21,267                                                  |
| Interest      and other income                  |   |    |                   290                       |   |    |                     41            |   |    |                1,231                                       |
| Equity      income co-investments               |   |    |                       - |   |    |                   238                       |   |    |                   477                       |
| Revenues                                        |   |    |                9,756                                       |   |    |              19,816                                                  |   |    |              22,975                                                  |
|                                            |   |    |                                                                                                                                  |   |    |                                                                                                                                  |   |    |                                                                                                                                  |
| Property      operating expenses                |   |    |              (3,779)                                                 |   |    |              (7,611)                                                 |   |    |              (8,159)                                                 |
| Interest      expense                           |   |    |                 (416)                                 |   |    |              (2,314)                                                 |   |    |              (2,830)                                                 |
| Depreciation      and amortization              |   |    |              (1,861)                                                 |   |    |              (4,940)                                                 |   |    |              (5,300)                                                 |
| Minority      interests                         |   |    |                       - |   |    |                 (660)                                 |   |    |                 (347)                                 |
| Expenses                                        |   |    |              (6,056)                                                 |   |    |            (15,525)                                                            |   |    |            (16,636)                                                            |
|                                            |   |    |                                                                                                                                  |   |    |                                                                                                                                  |   |    |                                                                                                                                  |
| Income      from real estate sold               |   |    |                3,700                                       |   |    |                4,291                                       |   |    |                6,339                                       |
|                                            |   |    |                                                                                                                                  |   |    |                                                                                                                                  |   |    |                                                                                                                                  |
| Gain      on sale of real estate                |   |    |              52,874                                                  |   |    |              20,503                                                  |   |    |              29,219                                                  |
| Gain      on sale of real estate - City Heights |   |    |              78,306                                                  |   |    |                       - |   |    |                       - |
| Promote      interest and fees                  |   |    |              10,290                                                  |   |    |                8,221                                       |   |    |                       - |
| Minority      interests - City Heights          |   |    |            (64,624)                                                            |   |    |                       - |   |    |                       - |
|                                            |   |    |              76,846                                                  |   |    |              28,724                                                  |   |    |              29,219                                                  |
|                                            |   |    |                                                                                                                                  |   |    |                                                                                                                                  |   |    |                                                                                                                                  |
| Income      from discontinued operations        |   |  $ |              80,546                                                  |   |  $ |              33,015                                                  |   |  $ |              35,558                                                  |

----

|                                                                                                                |   |                                                                                              | 2007                                  |   |                                             | 2006                                  |
|---------------------------------------------------------------------------------------------------------------------|--------|---------------------------------------------------------------------------------------------------|---------------------------------------|--------|--------------------------------------------------|---------------------------------------|
|                                                                                                                |   |                                                                                              |                                  |   |                                             |                                  |
| Mortgage      notes payable to a pension fund, secured by deeds of trust, bearing      interest                     |
|   at      rates ranging from 6.62% to 8.18%, principal and interest payments due      monthly,            |
|   and      maturity dates ranging from October 2008 through October 2010. Under      certain              |
|   conditions      a portion of these loans can be converted to an unsecured note      payable.            |
|   Three      loans are cross-collateralized by a total of 13 properties                                   |   | $                                                                                                 |      224,876 |   |  $                                          |      228,663 |
|                                                                                                                |   |                                                                                              |                                  |   |                                             |                                  |
| Mortgage      notes payable, secured by deeds of trust, bearing interest at      ranges                             |   |                                                                                              |                                  |   |
|   ranging      from 4.86% to 7.90%, principal and interest payments due      monthly,                     |   |                                                                                              |                                  |   |
|   and      maturity dates ranging from March 2008 through June 2018                                       |   |      804,859                                                             |                                  |   |      645,702            |
| Mortgage      notes payable - held for sale, secured by deed of trust, bearing      interest                        |
|   at      6.90%, principal and interest payments due monthly, and maturity date      of                   |
|   January      2008. Repaid in February 2007                                                              |   |                 - |                                  |   |        32,850 |
|                                                                                                                |   |                                                                                              |                                  |   |                                             |                                  |
| Multifamily      housing mortgage revenue bonds secured by deeds of truston                                         |   |                                                                                              |                                  |   |
|   rental      properties and guaranteed by collateral pledge agreements,      payable                     |   |                                                                                              |                                  |   |
|   monthly      at a variable rate as defined in the Loan Agreement                                        |   |                                                                                              |                                  |   |
|   (approximately      4.50% at December 2007 and 4.60% at December 2006),                                 |   |                                                                                              |                                  |   |
|   plus      credit enhancement and underwriting fees ranging from      approximately                      |   |                                                                                              |                                  |   |
|   1.2%      to 1.9%. The bonds are primarily convertible to a fixed rate at the      Operating            |   |                                                                                              |                                  |   |
|   Partnership's      option. Among the terms imposed on the properties, which are security      for       |
|   the      bonds, is a requirement that 20% of the units are subject to tenant      income                |   |                                                                                              |                                  |   |
|   criteria.      Principal balances are due in full at various maturity dates from      December          |   |                                                                                              |                                  |   |
|   2009      through December 2039.  $152.7 million of these bonds are      subject to various   |   |                                                                                              |                                  |   |
|   interest      rate cap agreements which limit the maximum interest rate to such      bonds              |   |                                                                                              |      233,138 |   |                                             |      186,339 |
|                                                                                                                |   |                                                                                              |                                  |   |                                             |                                  |
| Exchangeable      bonds, unsecured obligations of the Operating Partnership and      guaranteed                     |
|   by      the Company, bearing interest at 3.625% per year, payable November 1 and      May 1             |
|   of      each year, which mature on November 1, 2025.  The bonds are      exchangeable at the  |
|   option      of the holder into cash and, in certain circumstances at the Operating      Partnership's   |
|   option,      shares of the Company's common stock at an initial exchange price      of                  |
|   $103.25      per share subject to certain adjustments. These bonds will also be      exchangeable       |
|   prior      to November 1, 2020 under certain circumstances.  The bonds are      redeemable at |
|   the      Operating Partnership's option for cash at any time on or after November      4,               |
|   2010      and are subject to repurchase for cash at the option of the holder on      November 1st       |
|   in      years 2010, 2015, and 2020 or upon the occurrence of certain      events                        |   |                                                                                              |      225,000 |   |                                             |      225,000 |
|                                                                                                                |   |                                                                                              |                                  |   |                                             |                                  |
|                                                                                                                |   | $                                                                                                 |   1,487,873                 |   |  $                                          |   1,318,554                 |

|    2008       | $      |      116,357            |
|------------------------------|--------|--------------------------------------------------|
|    2009       |   |        24,689 |
|    2010       |   |      154,813            |
|    2011       |   |      166,545            |
|    2012       |   |        32,183 |
|    Thereafter |   |      993,286            |
|                         | $      |   1,487,873                            |

----

----

|                                                                                                                                                                                                               |   | Future                                                                                                                      |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-----------------------------------------------------------------------------------------------------------------------------|
|                                                                                                                                                                                                               |   | Minimum                                                                                                                     |
|                                     |   | Rent                                                                                                                        |
| 2008                                                                                                                                                                                                               | $      |                  6,184                 |
| 2009                                                                                                                                                                                                               |   |                  4,149                 |
| 2010                                                                                                                                                                                                               |   |                  1,439                 |
| 2011                                                                                                                                                                                                               |   |                     695 |
| 2012                                                                                                                                                                                                               |   |                     183 |
| 2013      and thereafter                                                                                                                                                                                           |   |                     474 |
|                                                                                                                                                                                                               | $      |                13,124                            |

|                        |                     |                      |                           | Liquidation                                                         |
|-----------------------------|--------------------------|---------------------------|--------------------------------|---------------------------------------------------------------------|
|  Description           |      |  Issue      Date     |                           | Preference                                                          |
|  7.875%      Series B  |                |  February      1998  | 1,200,000      units           |  $         60,000 |
|  7.875%      Series B  |                |  April      1998     |   400,000      units |  $         20,000 |
|  7.875%      Series D  |                     |  July      1999      | 2,000,000      units           |  $         50,000 |
|  7.8125%      Series F |                |  September      2003 | 1,000,000      shares          |  $         25,000 |
| 4.875%      Series G        |                     |  July      2006      | 5,980,000      shares          |  $       149,500            |

----

----

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   |                                                                                  | 2007                           |                                                    |                         | 2006                                                 |                                                 |   | 2005                                                                                              |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|---------------------------------------------------------------------------------------|--------------------------------|---------------------------------------------------------|------------------------------|------------------------------------------------------|------------------------------------------------------|--------|---------------------------------------------------------------------------------------------------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   |                                                                                  |                           |                                                    |  Weighted-              |                                                 | Per                                                  |   |                                                                                              |   |   | Weighted- |   | Per |   |   |   |   | Weighted- |   | Per |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   |                                                                                  |                           |                                                    |  average                |                                                 | Common                                               |   |                                                                                              |   |   | average |   | Common |   |   |   |   | average |   | Common |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   |                                                                                  |                           |                                                    | Common                       |                                                 | Unit                                                 |   |                                                                                              |   |   | Common |   | Unit |   |   |   |   | Common |   | Unit |
|                                                                                       |   |                                                                                  | Income                         |                                          | Units                        |                                                 | Amount                                               |   |                                                                                                   | Income |  | Units |  | Amount |  |   |  Income |   | Units |   | Amount |
| Basic:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |   |                                                                                  |                           |                                                    |                         |                                                 |                                                 |   |                                                                                              |   |   |   |   |   |   |   |   |   |   |
|   Income      from continuing operations                                                                                                                                                                                                                                                                                                                                                                                                                                               |
|     available      to common units                                                                                                                                                                                                                                                                                                                                                                                                                                           |   | $                                                                                     |     37,342 |                                                    |    27,043,697 | $                                                    |         1.38 |   | $                                                                                                 |        31,449 |   |    25,560,415 | $ |         1.23 |   | $ | 50,551 |   |    25,343,695 | $ |         2.00 |
|   Income      from discontinued operations                                                                                                                                                                                                                                                                                                                                                                                                                                             |   |     80,546                                                        |                           |    27,043,697                            |                         |         2.98 |                                                 |   |        33,015                                                  |   |    25,560,415 |   |         1.29 |   |   | 35,558 |   |    25,343,695 |   |         1.40 |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   |                                                                                  |   117,888            |                                                    |                         |                                                 |         4.36 |   |                                                                                              |        64,464 |   |   |   |         2.52 |   |   | 86,109 |   |   |   |         3.40 |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   |                                                                                  |                           |                                                    |                         |                                                 |                                                 |   |                                                                                              |   |   |   |   |   |   |   |   |   |   |   |   |
|   Effect      of Dilutive Securities (1)                                                                                                                                                                                                                                                                                                                                                                                                                                               |   |               - |                           |         552,971 |                         |                                                 |                                                 |   |                 - |   |         469,360 |   |   |   |   |                 - |   |         349,942 |   |   |
|  Diluted:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   |                                                                                  |                           |                                                    |                         |                                                 |                                                 |   |                                                                                              |   |   |   |   |   |   |   |   |   |   |
|   Income      from continuing operations                                                                                                                                                                                                                                                                                                                                                                                                                                               |
|     available      to common units                                                                                                                                                                                                                                                                                                                                                                                                                                           |   |     37,342                                                        |                           |    27,596,668                            |                         |         1.35 |                                                 |   |        31,449                                                  |   |    26,029,775 |   |         1.21 |   |   | 50,551 |   |    25,693,637 |   |         1.97 |
|   Income      from discontinued operations                                                                                                                                                                                                                                                                                                                                                                                                                                             |   |     80,546                                                        |                           |    27,596,668                            |                         |         2.92 |                                                 |   |        33,015                                                  |   |    26,029,775 |   |         1.27 |   |   | 35,558 |   |    25,693,637 |   |         1.38 |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   | $                                                                                     |   117,888            |                                                    |                         | $                                                    |         4.27 |   | $                                                                                                 |        64,464 |   |   | $ |         2.48 |   | $ | 86,109 |   |   | $ |         3.35 |

| (1)   | On      or after November 1, 2020, the holders of the $225 million exchangeable      notes may exchange, at the then applicable exchange rate, the notes for      cash and, at Essex’s option, a portion of the notes may be exchanged for      Essex common stock; the current exchange rate is $103.25 per share of      Essex common stock.  The exchangeable notes will also be      exchangeable prior to November 1, 2020, but only upon the occurrence of      certain specified events.  During 2007, the weighted average      common stock price exceeded the $103.25 strike price and therefore common      stock issuable upon exchange of the exchangeable notes was included in the      diluted share count.  The treasury method was used to determine      the shares to be added to the denominator for the calculation of earnings      per diluted unit. |
|-----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|                          |          |  2007           |   |  2006            |   |  2005     |
|-------------------------------|--------------------|----------------------|--------|-----------------------|--------|----------------|
| Stock      price              |               |  $95.34-$126.73 |   |  $101.01-$132.62 |   | $69.11-$91.88  |
| Risk-free      interest rates |               | 3.52%-4.58%          |   |  4.45%-5.15%     |   | 3.64%-4.50%    |
| Expected      lives           |               | 7-9      years       |   |  4-7      years  |   | 5-6      years |
| Volatility                    |               | 18.52%-20.31%        |   |  18.44%-18.54%   |   | 18.09%-18.54%  |
| Dividend      yield           |               | 3.99%-5.26%          |   | 3.12%-4.29%           |   | 4.22%-5.13%    |

|                                                                                                                                                                                                                                                                                                                                                               |   | 2007                           |                                 | 2006   |   | 2005            |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------------------------------|--------------------------------------|--------|--------|-----------------|
|                                                                                                                                                                                                                                                                                                                                                               |   |                           |             |   |   |  Weighted- |   |   |   |   |        Weighted- |   |   |   |   |  Weighted- |
|                                                                                                                                                                                                                                                                                                                                                               |   |                           |                                 |   |   |  average   |   |   |   |   |  average |   |   |   |   | average |
|                                                             |   |                           |                                 |   |   |  exercise  |   |   |   |   |  exercise |   |   |   |   | exercise |
|                                                                                                          |   |  Shares                   |                                 |   |   |  price     |   |  Shares |   |   |  price |   |  Shares |   |   | price |
| Outstanding      at beginning of year                                                                                                                                                                                                                                                                                                                              |   |   570,542            |                                 | $      |   | 72.60           |   |   530,375 |   | $ | 57.73 |   |    463,376 |   | $ | 47.07 |
| Granted                                                                                                                                                                                                                                                                                                                                                            |   |     29,250 |                                 |   |   | 119.98          |   |   170,350 |   |   | 106.63 |   |    188,800 |   |   | 78.01 |
| Exercised                                                                                                                                                                                                                                                                                                                                                          |   |   (86,056)           |                                 |   |   | 50.23           |   |   (90,633) |   |   | 47.57 |   |   (103,201) |   |   | 43.47 |
| Forfeited      and canceled                                                                                                                                                                                                                                                                                                                                        |   |   (20,033)           |                                 |   |   | 94.29           |   |   (39,550) |   |   | 80.85 |   |     (18,600) |   |   | 76.70 |
| Outstanding      at end of year                                                                                                                                                                                                                                                                                                                                    |   |   493,703            |                                 |   |   | 79.83           |   |   570,542 |   |   | 72.60 |   |    530,375 |   |   | 57.73 |
|                                                                                                                                                                                                                                                                                                                                                               |   |                           |                                 |   |   |            |   |   |   |   |   |   |   |   |
| Options      exercisable at year end                                                                                                                                                                                                                                                                                                                               |   |   288,889            |                                 |   |   | 64.69           |   |   272,074 |   |   | 52.42 |   |    248,015 |   |   | 43.77 |

|                      |   |                    |                               |                                             |                                 |           |                |                    |
|---------------------------|--------|-------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------------------------------------------------|--------------------------------------|----------------|--------------------------------------------------------------------------------------|-------------------------|
|                      |   |                    |  Options      outstanding                                                                                                                                                 |          |   Options      exercisable |
|                      |   |                    | Number                                                                                                                                                                         |                                             |  Weighted-                      |           |   Number                                                                   |                    |   |
|                      |   |                    | outstanding                                                                                                                                                                    |                                             |  average                        |           |  Weighted-                                                                      |                    |  exercisable |   | Weighted- |
|                      |   |                    |  as      of                                                                                                                                                               |                                             |  remaining                      |           |  average                                                                        |                    |  as      of |   | average |
| Range      of             |   |  December      31, |                                                                                                                                                                           |  contractual                                |                                 |  exercise |                                                                                 |  December      31, |   | exercise |
| exercise      prices      |   | 2007                    |                                                                                                                                                                      |  life                                       |                                 |  price    |                                                                                 | 2007                    |   |   | price |
|  $13.26-26.52        |   | 600                     |                                                                                                                                                                           |  0.1      years                             |                                 | $              | 19.08                                                                                |                    | 600 |   | $ | 19.08 |
|   26.52-39.79   |   | 41,547                  |                                                                                                                                                                           |  1.4      years                             |                                 | 32.64          |                                                                                 | 41,547                  |   |   | 32.64 |
|   39.78-53.05   |   | 90,027                  |                                                                                                                                                                           |  3.8      years                             |                                 | 49.33          |                                                                                 | 87,427                  |   |   | 49.28 |
|   53.05-66.31   |   | 40,680                  |                                                                                                                                                                           |  5.7      years                             |                                 | 59.10          |                                                                                 | 38,230                  |   |   | 59.37 |
|   66.31-79.57   |   | 90,775                  |                                                                                                                                                                           |  7.2      years                             |                                 | 75.69          |                                                                                 | 52,795                  |   |   | 76.37 |
|   79.57-92.83   |   | 58,704                  |                                                                                                                                                                           |  7.5      years                             |                                 | 83.18          |                                                                                 | 25,170                  |   |   | 82.95 |
|   92.83-106.10  |   | 39,620                  |                                                                                                                                                                           |  8.3      years                             |                                 | 101.51         |                                                                                 | 7,720                   |   |   | 102.63 |
|   106.10-119.36 |   | 103,500                 |                                                                                                                                                                           |  8.4      years                             |                                 | 107.36         |                                                                                 | 34,100                  |   |   | 107.42 |
|   119.36-132.62 |   | 28,250                  |                                                                                                                                                                           |  9.3      years                             |                                 | 125.27         |                                                                                 | 1,300                   |   |   | 128.02 |
|                      |   |                    | 493,703                                                                                                                                                                        |                                             |  6.6      years                 |           | 79.83                                                                                |                    | 288,889 |   |   | 64.69 |

----

----

----

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   |                                                                                                    |      Years      Ended December 31, |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|---------------------------------------------------------------------------------------------------------|-------------------------------------------------------------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   |                                                                                                    | 2007                                                        |   |   | 2006 |   |   | 2005 |
| Revenues:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
|    Southern      California                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   | $                                                                                                       |      215,090                       |   |  $ |      198,929 |   |  $ |      181,048 |
|    Northern      California                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |        99,734                                                        |                                                        |   |        75,624 |   |   |        67,099 |
|    Seattle      Metro                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   |        64,079                                                        |                                                        |   |        55,721 |   |   |        50,936 |
|    Other      Regions                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   |          4,530                                             |                                                        |   |          4,496 |   |   |          4,152 |
|        Total      property revenues                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   | $                                                                                                       |      383,433                       |   |  $ |      334,770 |   |  $ |      303,235 |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   |                                                                                                    |                                                        |   |   |   |   |
| Net      operating income:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |                                                                                                    |                                                        |   |   |   |   |
|    Southern      California                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   | $                                                                                                       |      147,340                       |   |  $ |      135,969 |   |  $ |      122,551 |
|    Northern      California                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |        65,143                                                        |                                                        |   |        49,907 |   |   |        44,528 |
|    Seattle      Metro                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   |        42,137                                                        |                                                        |   |        35,138 |   |   |        31,792 |
|    Other      Regions                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   |             389                             |                                                        |   |           (642) |   |   |           (115) |
|        Total      net operating income                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |   |      255,009                                                                   |                                                        |   |      220,372 |   |   |      198,756 |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   |                                                                                                    |                                                        |   |   |   |   |   |   |
| Depreciation      and amortization:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   |                                                                                                    |                                                        |   |   |   |   |
|    Southern      California                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |      (49,551)                                                                  |                                                        |   |      (43,017) |   |   |      (39,219) |
|    Northern      California                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |      (27,892)                                                                  |                                                        |   |      (17,568) |   |   |      (15,984) |
|    Seattle      Metro                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   |      (15,491)                                                                  |                                                        |   |      (13,170) |   |   |      (12,343) |
|    Other      Regions                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   |        (7,455)                                                       |                                                        |   |        (4,339) |   |   |        (7,303) |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   |                                                                                                    |    (100,389)                                 |   |   |      (78,094) |   |   |      (74,849) |
| Interest:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |   |                                                                                                    |                                                        |   |   |   |   |
|    Southern      California                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |      (31,626)                                                                  |                                                        |   |      (26,432) |   |   |      (27,690) |
|    Northern      California                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |      (18,741)                                                                  |                                                        |   |      (18,295) |   |   |      (17,201) |
|    Seattle      Metro                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   |        (6,892)                                                       |                                                        |   |        (6,904) |   |   |        (6,508) |
|    Other      Regions                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   |      (23,736)                                                                  |                                                        |   |      (21,267) |   |   |      (19,385) |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   |                                                                                                    |      (80,995)                      |   |   |      (72,898) |   |   |      (70,784) |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   |                                                                                                    |                                                        |   |   |   |   |   |   |
| Amortization      of deferred financing costs                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   |        (3,071)                                                       |                                                        |   |        (2,745) |   |   |        (1,947) |
| General      and administrative                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   |      (26,273)                                                                  |                                                        |   |      (22,234) |   |   |      (19,148) |
| Other      expenses                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   |           (800)                                       |                                                        |   |        (1,770) |   |   |        (5,827) |
| Management      and other fees from affiliates                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   |          5,090                                             |                                                        |   |          5,030 |   |   |        10,951 |
| Gain      on sale or real estate                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |   |                  - |                                                        |   |                  - |   |   |          6,391 |
| Interest      and other income                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   |        10,310                                                        |                                                        |   |          6,176 |   |   |          8,524 |
| Equity      income in co-investments                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   |          3,120                                             |                                                        |   |        (1,503) |   |   |        18,553 |
| Minority      interests                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   |        (4,847)                                                       |                                                        |   |        (4,977) |   |   |        (5,340) |
| Income      tax provision                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |   |           (400)                                       |                                                        |   |           (525) |   |   |        (2,538) |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   |                                                                                                    |                                                        |   |   |   |   |
| Income      from continuing operations                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   | $                                                                                                       |        56,754            |   |  $ |        46,832 |   |  $ |        62,742 |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   |                                                                                                    |                                                        |   |   |   |   |
|                                                                                                         |   |                                                                                                    |                                                        |   |   |   |   |
| Assets:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   |                                                                                                    |                                                        |   |   |   |   |
|    Southern      California                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   | $                                                                                                       |   1,354,818                                       |   |  $ |   1,244,037 |   |   |   |
|    Northern      California                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |      829,879                                                                   |                                                        |   |      565,405 |   |   |   |
|    Pacific      Northwest                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   |      353,737                                                                   |                                                        |   |      317,848 |   |   |   |
|    Other      Regions                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   |        37,338                                                        |                                                        |   |        76,882 |   |   |   |
|        Net      reportable operating segments - real estate assets                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |   |   2,575,772                                                                                   |                                                        |   |   2,204,172 |   |   |   |
| Real      estate - held for sale, net                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |   |                  - |                                                        |   |        41,221 |   |   |   |
| Real      estate under development                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |      233,445                                                                   |                                                        |   |      107,620 |   |   |   |
| Co-investments                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   |        64,191                                                        |                                                        |   |        56,318 |   |   |   |
| Notes      and other receivables                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |   |        50,536                                                        |                                                        |   |        19,404 |   |   |   |
| Other      non-segment assets                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   |        56,379                                                        |                                                        |   |        57,105 |   |   |   |
|        Total      assets                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   | $                                                                                                       |   2,980,323                                       |   |  $ |   2,485,840 |   |   |   |

----

----

|                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |   |        Quarter      ended |   |   |  Quarter      ended   |   |   |  Quarter      ended |   |   |  Quarter      ended |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|--------------------------------|--------|--------|----------------------------|--------|--------|--------------------------|--------|--------|--------------------------|
|                                                                        |   |   |  December      31(1)      |   |   |  September      30(1) |   |   |  June      30(1)    |   |   | March      31(1)         |
| 2007:                                                                                                                                                                                                                                                                                                                                                                                                                                |   |   |                           |   |   |                       |   |   |                     |   |   |                     |
| Total      property revenues                                                                                                                                                                                                                                                                                                                                                                                                         |   | $      | 101,138                        |   | $      | 97,780                     |   | $      | 94,508                   |   | $      | 90,007                   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |   |                           |   |   |                       |   |   |                     |   |   |                     |
| Income      before discontinued operations                                                                                                                                                                                                                                                                                                                                                                                           |   | $      | 8,384                          |   | $      | 15,454                     |   | $      | 15,010                   |   | $      | 17,906                   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |   |                           |   |   |                       |   |   |                     |   |   |                     |
|        Net      income                                                                                                                                                                                                                                                                                                                                                                            |   | $      | 61,175                         |   | $      | 16,164                     |   | $      | 16,085                   |   | $      | 43,876                   |
|        Net      income available to common                                                                                                                                                                                                                                                                                                                                                        |
|        units                                                                                                                                                                                                                                                                                                                                                                                      |   | $      | 56,304                         |   | $      | 11,294                     |   | $      | 11,216                   |   | $      | 39,074                   |
| Per      unit data:                                                                                                                                                                                                                                                                                                                                                                                                                  |
|  Net      income:                                                                                                                                                                                                                                                                                                                                                                                                               |
|    Basic                                                                                                                                                                                                                                                                                                                                                                                                              |   | $      | 2.04                           |   | $      | 0.41                       |   | $      | 0.42                     |   | $      | 1.51                     |
|                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |   |                           |   |   |                       |   |   |                     |   |   |                     |
|    Diluted                                                                                                                                                                                                                                                                                                                                                                                                            |   | $      | 2.02                           |   | $      | 0.40                       |   | $      | 0.41                     |   | $      | 1.46                     |
|                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |   |                           |   |   |                       |   |   |                     |   |   |                     |
|  Distributions      per common unit                                                                                                                                                                                                                                                                                                                                                                                             |   | $      | 0.93                           |   | $      | 0.93                       |   | $      | 0.93                     |   | $      | 0.93                     |
|                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |   |                           |   |   |                       |   |   |                     |   |   |                     |
| 2006:                                                                                                                                                                                                                                                                                                                                                                                                                                |   |   |                           |   |   |                       |   |   |                     |
| Total      property revenues                                                                                                                                                                                                                                                                                                                                                                                                         |   | $      | 88,118                         |   | $      | 84,740                     |   | $      | 81,665                   |   | $      | 80,247                   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |   |                           |   |   |                       |   |   |                     |   |   |                     |
| Income      before discontinued operations                                                                                                                                                                                                                                                                                                                                                                                           |   | $      | 13,440                         |   | $      | 14,281                     |   | $      | 9,215                    |   | $      | 9,896                    |
|                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |   |                           |   |   |                       |   |   |                     |   |   |                     |
|        Net      income                                                                                                                                                                                                                                                                                                                                                                            |   | $      | 21,926                         |   | $      | 16,412                     |   | $      | 27,450                   |   | $      | 14,059                   |
|        Net      income available to common                                                                                                                                                                                                                                                                                                                                                        |
|        units                                                                                                                                                                                                                                                                                                                                                                                      |   | $      | 16,988                         |   | $      | 12,062                     |   | $      | 24,402                   |   | $      | 11,012                   |
| Per      unit data:                                                                                                                                                                                                                                                                                                                                                                                                                  |
|  Net      income:                                                                                                                                                                                                                                                                                                                                                                                                               |
|    Basic                                                                                                                                                                                                                                                                                                                                                                                                              |   | $      | 0.65                           |   | $      | 0.47                       |   | $      | 0.97                     |   | $      | 0.44                     |
|                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |   |                           |   |   |                       |   |   |                     |   |   |                     |
|    Diluted                                                                                                                                                                                                                                                                                                                                                                                                            |   | $      | 0.64                           |   | $      | 0.46                       |   | $      | 0.95                     |   | $      | 0.43                     |
|                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |   |                           |   |   |                       |   |   |                     |   |   |                     |
|  Distributions      per common unit                                                                                                                                                                                                                                                                                                                                                                                             |   | $      | 0.84                           |   | $      | 0.84                       |   | $      | 0.84                     |   | $      | 0.84                     |
|                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |   |                           |   |   |                       |   |   |                     |   |   |                     |

| (1)   | Net      earnings from discontinued operations have been reclassified for all      periods presented. |
|-----------------|-------------------------------------------------------------------------------------------------------|

----

|                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |   |                     |                  |                                                                                                                                                                                       |                                                                           |    |   |                    |         |                                                                                                                                                         |        |                                |                |   |                           |                                           |      |    |                    |         |                           |        |                   |                   |                   |        |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|--------------------------|-----------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------------------------------------------------------------------------------|---------|--------|-------------------------|--------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------|-------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|---------------------|--------|--------------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------------------------|---------|-------------------------|--------------|--------------------------------|-------------|------------------------|------------------------|------------------------|-------------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |   |                     |                  |                                                                                                                                                                                       |                                                                           |    |   |                    |         |                            |        |                                                                                                                                                                                 |                |   |                           |                                                                                                                                                                                                                                                   |                     |    |                    |         |                           |        |                   |                   |                   |        |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |   |                     |                  |                                                                                                                                                                                       |                                                                           |    |   |  Initial      cost |         |  Costs                                                                                                                                                  |        |  Gross      amount carried at close of period                                                                                                                                   |                |   |                           |                                                                                                                                                                                                                                                   |                     |    |                    |         |
|                                                                            |   |   |           |                  |                                 |                                                                           |    |   |                    |         |        Buildings      and                                                                                                                               |        | capitalizedsubsequent      to                                                                                                                                                        |  Land      and |   |        Buildings      and |                                                                                                                                                                                                                                              |                     |    |        Accumulated |    |  Date      of             |        |  Date             |                   |  Lives            |
| Property                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   | Units  |                     | Location              |                                                                                                                                                                                       |  Encumbrance                                                              |    | Land   |                    | improvements |                                                                                                                                                         | acquisition |                                                                                                                                                                                 |  improvements  |   |  improvements             |                                                                                                                                                                                                                                                   | Total(1)                 |    |  depreciation      |         | construction                   |        |  acquired         |                   | (years)                |
| Encumbered      apartment communities                                                                                                                                                                                                                                                                                                                                                                                                                        |   |   |                     |                  |                                                                                                                                                                                       |                                                                           |    |   |                    |         |                                                                                                                                                         |        |                                                                                                                                                                                 |                |   |                           |                                                                                                                                                                                                                                                   |                     |    |                    |         |                           |        |                   |
|  Foothill      Commons                                                                                                                                                                                                                                                                                                                                                                                                                                  |   | 360    |                     | Bellevue,      WA     | $                                                                                                                                                                                          |                                                                           | $       | 2,435  | $                       | 9,821        | $                                                                                                                                                            | 6,074       | $                                                                                                                                                                                    | 2,440               | $      | 15,890                         | $                                                                                                                                                                                                                                                      | 18,330                   | $       | 9,298                   |         | 1978                           |        |  03/90            |                   |    3-30 |
|  Montclaire,      The (Oak Pointe)                                                                                                                                                                                                                                                                                                                                                                                                                      | 390    |   | Sunnyvale,      CA       |                  |                                                                                                                                                                                       |                                                                           | 4,842   |   | 19,776                  |         | 12,774                                                                                                                                                       |        | 4,847                                                                                                                                                                                |                | 32,545 |                           | 37,392                                                                                                                                                                                                                                                 |                     | 17,967  |                    | 1973         |                           |  12/88 |                   |    3-30 |
|  Palisades,      The                                                                                                                                                                                                                                                                                                                                                                                                                                    |   | 192    |                     | Bellevue,      WA     |                                                                                                                                                                                       |                                                                           |    | 1,560  |                    | 6,242        |                                                                                                                                                         | 9,421       |                                                                                                                                                                                 | 1,565               |   | 15,658                         |                                                                                                                                                                                                                                                   | 17,223                   |    | 6,617                   |         |    1969/1977(2) |  05/90 |                   |    3-30 |
|  Pathways                                                                                                                                                                                                                                                                                                                                                                                                                                               |   | 296    |                     | Long      Beach, CA   |                                                                                                                                                                                       |                                                                           |    | 4,083  |                    | 16,757       |                                                                                                                                                         | 15,174      |                                                                                                                                                                                 | 6,239               |   | 29,775                         |                                                                                                                                                                                                                                                   | 36,014                   |    | 13,093                  |         | 1975                           |        |  02/91            |                   |    3-30 |
|  Stevenson      Place                                                                                                                                                                                                                                                                                                                                                                                                                                   |   | 200    |                     | Fremont,      CA      |                                                                                                                                                                                       |                                                                           |    | 996    |                    | 5,582        |                                                                                                                                                         | 7,879       |                                                                                                                                                                                 | 1,001               |   | 13,456                         |                                                                                                                                                                                                                                                   | 14,457                   |    | 8,763                   |         | 1971                           |        |  04/83            |                   |    3-30 |
|  Bridgeport      (Summerhill Commons)                                                                                                                                                                                                                                                                                                                                                                                                                   | 184    |   | Newark,      CA          |                  |                                                                                                                                                                                       |                                                                           | 1,608   |   | 7,582                   |         | 5,984                                                                                                                                                        |        | 1,525                                                                                                                                                                                |                | 13,649 |                           | 15,174                                                                                                                                                                                                                                                 |                     | 7,019   |                    | 1987         |                           |  07/87 |                   |    3-30 |
|  Summerhill      Park                                                                                                                                                                                                                                                                                                                                                                                                                                   |   | 100    |                     | Sunnyvale,      CA    |                                                                                                                                                                                       |                                                                           |    | 2,654  |                    | 4,918        |                                                                                                                                                         | 1,149       |                                                                                                                                                                                 | 2,656               |   | 6,065                          |                                                                                                                                                                                                                                                   | 8,721                    |    | 3,978                   |         | 1988                           |        |  09/88            |                   |    3-30 |
|  Woodland      Commons                                                                                                                                                                                                                                                                                                                                                                                                                                  |   | 236    |                     | Bellevue,      WA     |                                                                                                                                                                                       |                                                                           |    | 2,040  |                    | 8,727        |                                                                                                                                                         | 4,293       |                                                                                                                                                                                 | 2,044               |   | 13,016                         |                                                                                                                                                                                                                                                   | 15,060                   |    | 7,236                   |         | 1978                           |        |  03/90            |                   |    3-30 |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |   |                     |                  |                                                                                                                                                                                       |                                                                           | 90,005  |   | 20,218                  |         | 79,405                                                                                                                                                       |        | 62,748                                                                                                                                                                               |                | 22,317 |                           | 140,054                                                                                                                                                                                                                                                |                     | 162,371 |                    | 73,972       |                           |        |                   |                   |                   |        |
|  Fountain      Court                                                                                                                                                                                                                                                                                                                                                                                                                                    |   | 320    |                     | Seattle,      WA      |                                                                                                                                                                                       |                                                                           |    | 6,702  |                    | 27,306       |                                                                                                                                                         | 1,691       |                                                                                                                                                                                 | 6,985               |   | 28,714                         |                                                                                                                                                                                                                                                   | 35,699                   |    | 7,679                   |         | 2000                           |        |  03/00            |                   |    3-30 |
|  Hillcrest      Park                                                                                                                                                                                                                                                                                                                                                                                                                                    |   | 608    |                     | Newbury      Park, CA |                                                                                                                                                                                       | 15,318                                                                         |    | 40,601 |                    | 12,353       |                                                                                                                                                         | 15,755      |                                                                                                                                                                                 | 52,517              |   | 68,272                         |                                                                                                                                                                                                                                                   | 16,713                   |    | 1973                    |         |  03/98                    |        |    3-30 |
|  Hillsborough      Park                                                                                                                                                                                                                                                                                                                                                                                                                                 |   | 235    |                     | La      Habra, CA     |                                                                                                                                                                                       |                                                                           |    | 6,291  |                    | 15,455       |                                                                                                                                                         | 827         |                                                                                                                                                                                 | 6,272               |   | 16,302                         |                                                                                                                                                                                                                                                   | 22,573                   |    | 4,728                   |         | 1999                           |        |  09/99            |                   |    3-30 |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |   |                     |                  |                                                                                                                                                                                       |                                                                           | 76,732  |   | 28,311                  |         | 83,362                                                                                                                                                       |        | 14,871                                                                                                                                                                               |                | 29,012 |                           | 97,532                                                                                                                                                                                                                                                 |                     | 126,544 |                    | 29,120       |                           |        |                   |                   |                   |        |
|  Bel      Air                                                                                                                                                                                                                                                                                                                                                                                                                                           |   | 462    |                     | San      Ramon, CA    |                                                                                                                                                                                       |                                                                           |    | 12,105 |                    | 18,252       |                                                                                                                                                         | 18,642      |                                                                                                                                                                                 | 12,682              |   | 36,317                         |                                                                                                                                                                                                                                                   | 48,999                   |    | 12,687                  |         | 1988                           |        |  01/97            |                   |    3-30 |
|  Waterford,      The                                                                                                                                                                                                                                                                                                                                                                                                                                    |   | 238    |                     | San      Jose, CA     |                                                                                                                                                                                       |                                                                           |    | 11,808 |                    | 24,500       |                                                                                                                                                         | 11,688      |                                                                                                                                                                                 | 15,165              |   | 32,831                         |                                                                                                                                                                                                                                                   | 47,996                   |    | 7,659                   |         | 2000                           |        |  06/00            |                   |    3-30 |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |   |                     |                  |                                                                                                                                                                                       |                                                                           | 58,139  |   | 23,913                  |         | 42,752                                                                                                                                                       |        | 30,329                                                                                                                                                                               |                | 27,847 |                           | 69,147                                                                                                                                                                                                                                                 |                     | 96,994  |                    | 20,346       |                           |        |                   |                   |                   |        |
|  Bonita      Cedars                                                                                                                                                                                                                                                                                                                                                                                                                                     |   | 120    |                     | Bonita,      CA       |                                                                                                                                                                                       |                                                                           |    | 2,496  |                    | 9,913        |                                                                                                                                                         | 977         |                                                                                                                                                                                 | 2,503               |   | 10,883                         |                                                                                                                                                                                                                                                   | 13,386                   |    | 1,983                   |         | 1983                           |        |  12/02            |                   |    3-30 |
|  Bristol      Commons                                                                                                                                                                                                                                                                                                                                                                                                                                   |   | 188    |                     | Sunnyvale,      CA    |                                                                                                                                                                                       |                                                                           |    | 5,278  |                    | 11,853       |                                                                                                                                                         | 2,447       |                                                                                                                                                                                 | 5,293               |   | 14,285                         |                                                                                                                                                                                                                                                   | 19,578                   |    | 5,889                   |         | 1989                           |        |  01/97            |                   |    3-30 |
|  Castle      Creek                                                                                                                                                                                                                                                                                                                                                                                                                                      |   | 216    |                     | Newcastle,      WA    |                                                                                                                                                                                       |                                                                           |    | 4,149  |                    | 16,028       |                                                                                                                                                         | 2,020       |                                                                                                                                                                                 | 4,833               |   | 17,364                         |                                                                                                                                                                                                                                                   | 22,197                   |    | 6,593                   |         | 1997                           |        |  12/97            |                   |    3-30 |
|  Forest      View                                                                                                                                                                                                                                                                                                                                                                                                                                       |   | 192    |                     | Renton,      WA       |                                                                                                                                                                                       |                                                                           |    | 3,731  |                    | 14,530       |                                                                                                                                                         | 689         |                                                                                                                                                                                 | 3,731               |   | 15,219                         |                                                                                                                                                                                                                                                   | 18,950                   |    | 2,233                   |         | 1998                           |        |  10/03            |                   |    3-30 |
|  Mira      Monte                                                                                                                                                                                                                                                                                                                                                                                                                                        |   | 355    |                     | Mira      Mesa, CA    |                                                                                                                                                                                       |                                                                           |    | 7,165  |                    | 28,459       |                                                                                                                                                         | 6,909       |                                                                                                                                                                                 | 7,186               |   | 35,347                         |                                                                                                                                                                                                                                                   | 42,533                   |    | 6,243                   |         | 1982                           |        |  12/02            |                   |    3-30 |
|  Mission      Hills                                                                                                                                                                                                                                                                                                                                                                                                                                     |   | 282    |                     | Oceanside,      CA    |                                                                                                                                                                                       |                                                                           |    | 10,099 |                    | 38,778       |                                                                                                                                                         | 1,920       |                                                                                                                                                                                 | 10,167              |   | 40,630                         |                                                                                                                                                                                                                                                   | 50,797                   |    | 3,611                   |         | 1984                           |        |  7/05             |                   |    3-30 |
|  Walnut      Heights                                                                                                                                                                                                                                                                                                                                                                                                                                    |   | 163    |                     | Walnut,      CA       |                                                                                                                                                                                       |                                                                           |    | 4,858  |                    | 19,168       |                                                                                                                                                         | 1,140       |                                                                                                                                                                                 | 4,887               |   | 20,280                         |                                                                                                                                                                                                                                                   | 25,166                   |    | 2,927                   |         | 1964                           |        |  10/03            |                   |    3-30 |
|  Windsor      Ridge                                                                                                                                                                                                                                                                                                                                                                                                                                     |   | 216    |                     | Sunnyvale,      CA    |                                                                                                                                                                                       |                                                                           |    | 4,017  |                    | 10,315       |                                                                                                                                                         | 3,855       |                                                                                                                                                                                 | 4,021               |   | 14,167                         |                                                                                                                                                                                                                                                   | 18,187                   |    | 8,183                   |         | 1989                           |        |  03/89            |                   |    3-30 |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |   |                     |                  |                                                                                                                                                                                       |                                                                           | 100,000 |   | 41,793                  |         | 149,044                                                                                                                                                      |        | 19,959                                                                                                                                                                               |                | 42,621 |                           | 168,174                                                                                                                                                                                                                                                |                     | 210,796 |                    | 37,662       |                           |        |                   |                   |                   |        |
|  Alpine      Village                                                                                                                                                                                                                                                                                                                                                                                                                                    |   | 306    |                     | Alpine,      CA       |                                                                                                                                                                                       | 17,016                                                                         |    | 4,967  |                    | 19,728       |                                                                                                                                                         | 1,994       |                                                                                                                                                                                 | 4,982               |   | 21,707                         |                                                                                                                                                                                                                                                   | 26,689                   |    | 3,845                   |         | 1971                           |        |  12/02            |                   |    3-30 |
|  Anchor      Village                                                                                                                                                                                                                                                                                                                                                                                                                                    |   | 301    |                     | Mukilteo,      WA     |                                                                                                                                                                                       | 10,750                                                                         |    | 2,498  |                    | 10,595       |                                                                                                                                                         | 5,433       |                                                                                                                                                                                 | 2,681               |   | 15,845                         |                                                                                                                                                                                                                                                   | 18,526                   |    | 7,092                   |         | 1981                           |        |  01/97            |                   |    3-30 |
|  Barkley,      The                                                                                                                                                                                                                                                                                                                                                                                                                                      |   | 161    |                     | Anaheim,      CA      |                                                                                                                                                                                       | 4,883                                                                          |    | 2,272  |                    | 8,520        |                                                                                                                                                         | 1,705       |                                                                                                                                                                                 | 2,353               |   | 10,144                         |                                                                                                                                                                                                                                                   | 12,497                   |    | 3,253                   |         | 1984                           |        | 04/00                  |                   |    3-30 |
|  Bluffs      II, The                                                                                                                                                                                                                                                                                                                                                                                                                                    |   | 224    |                     | San      Diego, CA    |                                                                                                                                                                                       | 12,137                                                                         |    | 3,405  |                    | 7,743        |                                                                                                                                                         | 5,979       |                                                                                                                                                                                 | 3,442               |   | 13,685                         |                                                                                                                                                                                                                                                   | 17,127                   |    | 3,756                   |         | 1974                           |        |  06/97(3)         |    3-30 |
|  Brentwood      (Hearthstone)                                                                                                                                                                                                                                                                                                                                                                                                                           |   | 140    |                     | Santa      Ana, CA    |                                                                                                                                                                                       | 9,333                                                                          |    | 2,833  |                    | 11,303       |                                                                                                                                                         | 4,341       |                                                                                                                                                                                 | 3,502               |   | 14,975                         |                                                                                                                                                                                                                                                   | 18,477                   |    | 2,798                   |         | 1970                           |        |  11/01            |                   |    3-30 |
|  Brighton      Ridge                                                                                                                                                                                                                                                                                                                                                                                                                                    |   | 264    |                     | Renton,      WA       |                                                                                                                                                                                       | 16,013                                                                         |    | 2,623  |                    | 10,800       |                                                                                                                                                         | 3,789       |                                                                                                                                                                                 | 2,656               |   | 14,555                         |                                                                                                                                                                                                                                                   | 17,212                   |    | 6,030                   |         | 1986                           |        |  12/96            |                   |    3-30 |
|  Brookside      Oaks                                                                                                                                                                                                                                                                                                                                                                                                                                    |   | 170    |                     | Sunnyvale,      CA    |                                                                                                                                                                                       | 14,130                                                                         |    | 7,301  |                    | 16,310       |                                                                                                                                                         | 16,792      |                                                                                                                                                                                 | 10,301              |   | 30,102                         |                                                                                                                                                                                                                                                   | 40,403                   |    | 5,312                   |         | 1973                           |        |  06/00            |                   |    3-30 |
|  Cairns,      The                                                                                                                                                                                                                                                                                                                                                                                                                                       |   | 100    |                     | Seattle,      WA      |                                                                                                                                                                                       | 11,552                                                                         |    | 6,937  |                    | 20,679       |                                                                                                                                                         | 62          |                                                                                                                                                                                 | 6,939               |   | 20,739                         |                                                                                                                                                                                                                                                   | 27,678                   |    | 396                     |         | 2006                           |        | 06/07                  |                   |    3-30 |
|  Camarillo      Oaks                                                                                                                                                                                                                                                                                                                                                                                                                                    |   | 564    |                     | Camarillo,      CA    |                                                                                                                                                                                       | 53,052                                                                         |    | 10,953 |                    | 25,254       |                                                                                                                                                         | 5,109       |                                                                                                                                                                                 | 11,075              |   | 30,241                         |                                                                                                                                                                                                                                                   | 41,316                   |    | 13,871                  |         | 1985                           |        |  07/96            |                   |    3-30 |
|  Camino      Ruiz Square                                                                                                                                                                                                                                                                                                                                                                                                                                |   | 160    |                     | Camarillo,      CA    |                                                                                                                                                                                       |             21,110 |    | 6,871  |                    | 26,119       |                                                                                                                                                         | 64          |                                                                                                                                                                                 | 6,878               |   | 26,176                         |                                                                                                                                                                                                                                                   | 33,054                   |    | 876                     |         | 1990                           |        |  12/06            |                   |    3-30 |
|  Canyon      Point                                                                                                                                                                                                                                                                                                                                                                                                                                      |   | 250    |                     | Bothell,      WA      |                                                                                                                                                                                       | 15,736                                                                         |    | 4,692  |                    | 18,288       |                                                                                                                                                         | 1,082       |                                                                                                                                                                                 | 4,693               |   | 19,370                         |                                                                                                                                                                                                                                                   | 24,062                   |    | 2,785                   |         | 1990                           |        |  10/03            |                   |    3-30 |
|  Capri      at Sunny Hills                                                                                                                                                                                                                                                                                                                                                                                                                              |   | 100    |                     | Fullerton,      CA    |                                                                                                                                                                                       | 19,150                                                                         |    | 3,337  |                    | 13,320       |                                                                                                                                                         | 3,962       |                                                                                                                                                                                 | 3,867               |   | 16,752                         |                                                                                                                                                                                                                                                   | 20,619                   |    | 3,444                   |         | 1961                           |        |  09/01            |                   |    3-30 |
|  Cardiff      by the Sea                                                                                                                                                                                                                                                                                                                                                                                                                                |   | 300    |                     | Cardiff,      CA      |                                                                                                                                                                                       | 42,200                                                                         |    | 13,724 |                    | 57,395       |                                                                                                                                                         | 439         |                                                                                                                                                                                 | 14,224              |   | 57,881                         |                                                                                                                                                                                                                                                   | 72,105                   |    | 1,355                   |         | 1986                           |        | 04/07                  |                   |    3-30 |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |   |                     |                  |                                                                                                                                                                                       |                                                                           |    |   |                    |         |                                                                                                                                                         |        |                                                                                                                                                                                 |                |   |                           |                                                                                                                                                                                                                                                   |                     |    |                    |         |                           |        |                   |                   |                   | (Continued) |

----

|                                                                                                                                                                                                                                                                                                                                                   |   |   |                     |                        |                                                                                                                                                                           |                                                                           |      |   |                    |               |                           |        |                            |                |    |                           |      |     |      |                    |    |               |        |           |                   |                   |        |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|--------------------------|-----------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------------------------------------------------------------------------------|-----------|--------|-------------------------|--------------------|--------------------------------|-------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------|---------------------|---------|--------------------------------|-----------|----------|-----------|-------------------------|---------|--------------------|-------------|----------------|------------------------|------------------------|-------------|
|                                                                                                                                                                                                                                                                                                                                                   |   |   |                     |                        |                                                                                                                                                                           |                                                                           |      |   |  Initial      cost |               |  Costs                    |        |  Gross      amount carried at close of period                                                                                                           |                |    |                           |      |     |      |                    |    |
|                                                           |   |   |           |                        |                               |                                                                           |      |   |                    |               |        Buildings      and |        | capitalizedsubsequent      to                                                                                                                                |  Land      and |    |        Buildings      and |      |     |      |        Accumulated |    |  Date      of |        |  Date     |                   |  Lives            |
| Property                                                                                                                                                                                                                                                                                                                                               |   | Units  |                     | Location                    |                                                                                                                                                                           |  Encumbrance                                                              |      | Land   |                    |  improvements |                           | acquisition |                                                                                                                                                         |  improvements  |    |  improvements             |      | Total(1) |      |  depreciation      |    |  construction |        |  acquired |                   | (years)                |
| Encumbered      apartment communities (continued)                                                                                                                                                                                                                                                                                                      |   |   |                     |                        |                                                                                                                                                                           |                                                                           |      |   |                    |               |                           |        |                                                                                                                                                         |                |    |                           |      |     |      |                    |    |               |
|  Carlyle,      The                                                                                                                                                                                                                                                                                                                                |   | 132    |                     | San      Jose, CA           |                                                                                                                                                                           | 15,424                                                                         |      | 3,954  |                    | 15,277             |                           | 9,270       |                                                                                                                                                         | 5,801               |    | 22,701                         |      | 28,501   |      | 5,266                   |    | 2000               |        |  04/00    |                   |    3-30 |
|  City      View (Wimbledon Woods)                                                                                                                                                                                                                                                                                                                 | 560    |   | Hayward,      CA         |                        | 51,600                                                                                                                                                                         |                                                                           | 9,883     |   | 37,670                  |               | 15,069                         |        | 10,350                                                                                                                                                       |                | 52,272  |                           | 62,622    |     | 15,861    |                    | 1975    |               |  03/98 |           |    3-30 |
|  Coldwater      Canyon                                                                                                                                                                                                                                                                                                                            |   | 39     |                     | Studio      City, CA        |                                                                                                                                                                           | 5,919                                                                          |      | 1,674  |                    | 6,640              |                           | 367         |                                                                                                                                                         | 1,676               |    | 7,005                          |      | 8,681    |      | 143                     |    | 1979               |        | 05/07          |                   |    3-30 |
|  Coral      Gardens                                                                                                                                                                                                                                                                                                                               |   | 200    |                     | El      Cajon, CA           |                                                                                                                                                                           | 10,943                                                                         |      | 3,638  |                    | 14,452             |                           | 936         |                                                                                                                                                         | 3,649               |    | 15,377                         |      | 19,026   |      | 2,770                   |    | 1976               |        |  12/02    |                   |    3-30 |
|  Devonshire                                                                                                                                                                                                                                                                                                                                       |   | 276    |                     | Hemet,      CA              |                                                                                                                                                                           | 11,078                                                                         |      | 3,470  |                    | 13,786             |                           | 1,548       |                                                                                                                                                         | 3,482               |    | 15,322                         |      | 18,804   |      | 2,905                   |    | 1988               |        |  12/02    |                   |    3-30 |
|  Emerald      Ridge - North                                                                                                                                                                                                                                                                                                                       |   | 180    |                     | Bellevue,      WA           |                                                                                                                                                                           | 10,721                                                                         |      | 3,449  |                    | 7,801              |                           | 3,036       |                                                                                                                                                         | 3,449               |    | 10,837                         |      | 14,286   |      | 5,018                   |    | 1987               |        |  11/94    |                   |    3-30 |
|  Esplanade                                                                                                                                                                                                                                                                                                                                        |   | 278    |                     | San      Jose, CA           |                                                                                                                                                                           | 38,956                                                                         |      | 18,170 |                    | 40,086             |                           | 2,946       |                                                                                                                                                         | 18,425              |    | 42,777                         |      | 61,202   |      | 4,635                   |    | 2002               |        |  11/04    |                   |    3-30 |
|  Evergreen      Heights                                                                                                                                                                                                                                                                                                                           |   | 200    |                     | Kirkland,      WA           |                                                                                                                                                                           | 10,910                                                                         |      | 3,566  |                    | 13,395             |                           | 2,134       |                                                                                                                                                         | 3,649               |    | 15,446                         |      | 19,095   |      | 5,847                   |    | 1990               |        |  06/97    |                   |    3-30 |
|  Fairwood      Pond                                                                                                                                                                                                                                                                                                                               |   | 194    |                     | Renton,      WA             |                                                                                                                                                                           |             14,514 |      | 5,296  |                    | 15,564             |                           | 709         |                                                                                                                                                         | 5,300               |    | 16,269                         |      | 21,569   |      | 1,755                   |    | 1997               |        |  10/04    |                   |    3-30 |
|  Fountain      Park                                                                                                                                                                                                                                                                                                                               |   | 705    |                     | Playa      Vista, CA        |                                                                                                                                                                           | 98,665                                                                         |      | 25,073 |                    | 94,980             |                           | 17,327      |                                                                                                                                                         | 25,208              |    | 112,173                        |      | 137,380  |      | 13,407                  |    | 2002               |        |  02/04    |                   |    3-30 |
|  Harvest      Park                                                                                                                                                                                                                                                                                                                                |   | 104    |                     | Santa      Rosa, CA         |                                                                                                                                                                           | 11,603                                                                         |      | 6,700  |                    | 15,479             |                           | 192         |                                                                                                                                                         | 6,690               |    | 15,681                         |      | 22,371   |      | 413                     |    | 2004               |        | 03/07          |                   |    3-30 |
|  Hidden      Valley (Parker Ranch)                                                                                                                                                                                                                                                                                                                | 324    |   | Simi      Valley, CA     |                        | 33,303                                                                                                                                                                         |                                                                           | 14,174    |   | 34,065                  |               | 287                            |        | 11,724                                                                                                                                                       |                | 36,802  |                           | 48,526    |     | 4,334     |                    | 2004    |               |  12/04 |           |    3-30 |
|  Highridge                                                                                                                                                                                                                                                                                                                                        |   | 255    |                     | Rancho      Palos Verde, CA | 44,807                                                                                                                                                                         |                                                                           | 5,419     |   | 18,347                  |               | 8,220                          |        | 5,841                                                                                                                                                        |                | 26,145  |                           | 31,986    |     | 9,376     |                    | 1972    |               |  05/97 |           |    3-30 |
|  Huntington      Breakers                                                                                                                                                                                                                                                                                                                         |   | 342    |                     | Huntington      Beach, CA   | 20,962                                                                                                                                                                         |                                                                           | 9,306     |   | 22,720                  |               | 3,882                          |        | 9,315                                                                                                                                                        |                | 26,593  |                           | 35,908    |     | 9,494     |                    | 1984    |               |  10/97 |           |    3-30 |
|  Inglenook      Court                                                                                                                                                                                                                                                                                                                             |   | 224    |                     | Bothell,      WA            |                                                                                                                                                                           | 8,300                                                                          |      | 3,467  |                    | 7,881              |                           | 6,502       |                                                                                                                                                         | 3,474               |    | 14,375                         |      | 17,850   |      | 5,757                   |    | 1985               |        |  10/94    |                   |    3-30 |
|  Kings      Road                                                                                                                                                                                                                                                                                                                                  |   | 196    |                     | Los      Angeles, CA        |                                                                                                                                                                           | 14,618                                                                         |      | 4,023  |                    | 9,527              |                           | 5,675       |                                                                                                                                                         | 4,031               |    | 15,194                         |      | 19,225   |      | 4,932                   |    | 1979               |        |  06/97    |                   |    3-30 |
|  Le      Pac Luxury Apartments                                                                                                                                                                                                                                                                                                                    | 140    |   | Santa      Clara, CA     |                        | 13,713                                                                                                                                                                         |                                                                           | 3,090     |   | 7,421                   |               | 4,768                          |        | 3,092                                                                                                                                                        |                | 12,187  |                           | 15,279    |     | 4,889     |                    | 1975    |               |  02/94 |           |    3-30 |
|  Marbrisa                                                                                                                                                                                                                                                                                                                                         |   | 202    |                     | Long      Beach, CA         |                                                                                                                                                                           | 20,923                                                                         |      | 4,700  |                    | 18,605             |                           | 1,323       |                                                                                                                                                         | 4,760               |    | 19,869                         |      | 24,628   |      | 3,806                   |    | 1987               |        |  09/02    |                   |    3-30 |
|  Mariners      Place                                                                                                                                                                                                                                                                                                                              |   | 105    |                     | Oxnard,      CA             |                                                                                                                                                                           | 3,872                                                                          |      | 1,555  |                    | 6,103              |                           | 1,029       |                                                                                                                                                         | 1,562               |    | 7,126                          |      | 8,687    |      | 2,166                   |    | 1987               |        |  05/00    |                   |    3-30 |
|  Montejo                                                                                                                                                                                                                                                                                                                                          |   | 124    |                     | Garden      Grove, CA       | 5,812                                                                                                                                                                          |                                                                           | 1,925     |   | 7,685                   |               | 1,332                          |        | 2,110                                                                                                                                                        |                | 8,833   |                           | 10,942    |     | 1,959     |                    | 1974    |               |  11/01 |           |    3-30 |
|  Monterey      Villas                                                                                                                                                                                                                                                                                                                             |   | 122    |                     | Oxnard,      CA             |                                                                                                                                                                           | 13,802                                                                         |      | 2,349  |                    | 5,579              |                           | 4,395       |                                                                                                                                                         | 2,424               |    | 9,900                          |      | 12,323   |      | 3,206                   |    | 1974               |        |  07/97    |                   |    3-30 |
|  Monterra      del Rey                                                                                                                                                                                                                                                                                                                            |   | 84     |                     | Pasadena,      CA           |                                                                                                                                                                           | 10,130                                                                         |      | 2,312  |                    | 4,923              |                           | 4,292       |                                                                                                                                                         | 2,825               |    | 8,702                          |      | 11,527   |      | 2,494                   |    | 1972               |        |  04/99    |                   |    3-30 |
|  Mt.      Sutro                                                                                                                                                                                                                                                                                                                                   |   | 99     |                     | San      Francisco, CA      | 5,725                                                                                                                                                                          |                                                                           | 2,334     |   | 8,507                   |               | 1,850                          |        | 2,810                                                                                                                                                        |                | 9,881   |                           | 12,691    |     | 2,942     |                    | 1973    |               |  06/01 |           |    3-30 |
|  Park      Place/Windsor Court/Cochran                                                                                                                                                                                                                                                                                                            | 176    |   | Los      Angeles, CA     |                        | 21,964                                                                                                                                                                         |                                                                           | 4,965     |   | 11,806                  |               | 5,090                          |        | 5,015                                                                                                                                                        |                | 16,846  |                           | 21,861    |     | 5,682     |                    | 1988    |               |  08/97 |           |    3-30 |
|  Pointe      at Cupertino, The                                                                                                                                                                                                                                                                                                                    |   | 116    |                     | Cupertino,      CA          |                                                                                                                                                                           | 13,033                                                                         |      | 4,505  |                    | 17,605             |                           | 606         |                                                                                                                                                         | 4,505               |    | 18,211                         |      | 22,716   |      | 2,282                   |    | 1963               |        |  08/98(4) |    3-30 |
|  Sammamish      View                                                                                                                                                                                                                                                                                                                              |   | 153    |                     | Bellevue,      WA           |                                                                                                                                                                           | 10,778                                                                         |      | 3,324  |                    | 7,501              |                           | 5,942       |                                                                                                                                                         | 3,331               |    | 13,436                         |      | 16,767   |      | 4,724                   |    | 1986               |        |  11/94    |                   |    3-30 |
|  San      Marcos                                                                                                                                                                                                                                                                                                                                  |   | 432    |                     | Richmond,      CA           |                                                                                                                                                                           | 49,225                                                                         |      | 15,563 |                    | 36,204             |                           | 24,269      |                                                                                                                                                         | 22,866              |    | 53,170                         |      | 76,036   |      | 7,372                   |    | 2003               |        |  11/03    |                   |    3-30 |
|  Stonehedge      Village                                                                                                                                                                                                                                                                                                                          |   | 196    |                     | Bothell,      WA            |                                                                                                                                                                           | 13,786                                                                         |      | 3,167  |                    | 12,603             |                           | 3,198       |                                                                                                                                                         | 3,201               |    | 15,767                         |      | 18,968   |      | 5,363                   |    | 1986               |        |  10/97    |                   |    3-30 |
|  Summit      Park                                                                                                                                                                                                                                                                                                                                 |   | 300    |                     | San      Diego, CA          |                                                                                                                                                                           | 21,100                                                                         |      | 5,959  |                    | 23,670             |                           | 2,011       |                                                                                                                                                         | 5,977               |    | 25,663                         |      | 31,640   |      | 4,773                   |    | 1972               |        |  12/02    |                   |    3-30 |
|  Thomas      Jefferson                                                                                                                                                                                                                                                                                                                            |   | 156    |                     | Sunnyvale,      CA          |                                                                                                                                                                           | 19,529                                                                         |      | 8,190  |                    | 19,306             |                           | 91          |                                                                                                                                                         | 8,195               |    | 19,392                         |      | 27,587   |      | 340                     |    | 1969               |        | 09/07          |                   |    3-30 |
|  Tierra      Vista                                                                                                                                                                                                                                                                                                                                |   | 404    |                     | Oxnard,      CA             |                                                                                                                                                                           | 62,037                                                                         |      | 13,652 |                    | 53,336             |                           | 669         |                                                                                                                                                         | 13,661              |    | 53,997                         |      | 67,657   |      | 6,665                   |    | 2001               |        |  01/01(4) |    3-30 |
|  Treehouse                                                                                                                                                                                                                                                                                                                                        |   | 164    |                     | Santa      Ana, CA          |                                                                                                                                                                           | 7,825                                                                          |      | 2,626  |                    | 10,485             |                           | 1,440       |                                                                                                                                                         | 2,843               |    | 11,708                         |      | 14,551   |      | 2,706                   |    | 1970               |        |  11/01    |                   |    3-30 |
|  Boulevard      (Treetops)                                                                                                                                                                                                                                                                                                                        |   | 172    |                     | Fremont,      CA            |                                                                                                                                                                           | 9,800                                                                          |      | 3,520  |                    | 8,182              |                           | 7,717       |                                                                                                                                                         | 3,580               |    | 15,839                         |      | 19,419   |      | 4,925                   |    | 1978               |        |  01/96    |                   |    3-30 |
|  Valley      Park                                                                                                                                                                                                                                                                                                                                 |   | 160    |                     | Fountain      Valley, CA    | 9,913                                                                                                                                                                          |                                                                           | 3,361     |   | 13,420                  |               | 3,001                          |        | 3,761                                                                                                                                                        |                | 16,021  |                           | 19,782    |     | 3,458     |                    | 1969    |               |  11/01 |           |    3-30 |
|  Villa      Angelina                                                                                                                                                                                                                                                                                                                              |   | 256    |                     | Placentia,      CA          |                                                                                                                                                                           | 13,405                                                                         |      | 4,498  |                    | 17,962             |                           | 2,860       |                                                                                                                                                         | 4,962               |    | 20,359                         |      | 25,320   |      | 4,282                   |    | 1970               |        |  11/01    |                   |    3-30 |
|  Vista      Belvedere                                                                                                                                                                                                                                                                                                                             |   | 76     |                     | Tiburon,      CA            |                                                                                                                                                                           | 11,297                                                                         |      | 5,573  |                    | 11,901             |                           | 1,973       |                                                                                                                                                         | 5,573               |    | 13,874                         |      | 19,447   |      | 1,520                   |    | 1963               |        |  08/04    |                   |    3-30 |
|  Wandering      Creek                                                                                                                                                                                                                                                                                                                             |   | 156    |                     | Kent,      WA               |                                                                                                                                                                           | 5,300                                                                          |      | 1,285  |                    | 4,980              |                           | 3,762       |                                                                                                                                                         | 1,296               |    | 8,731                          |      | 10,027   |      | 3,615                   |    | 1986               |        |  11/95    |                   |    3-30 |
|  Wharfside      Pointe                                                                                                                                                                                                                                                                                                                            |   | 142    |                     | Seattle,      WA            |                                                                                                                                                                           | 7,827                                                                          |      | 2,245  |                    | 7,020              |                           | 4,180       |                                                                                                                                                         | 2,256               |    | 11,189                         |      | 13,445   |      | 4,645                   |    | 1990               |        |  06/94    |                   |    3-30 |
|                                                                                                                                                                                                                                                                                                                                                   |   |   |                     |                        |                                                                                                                                                                           |                                                                           | 1,325,057 |   | 408,608                 |               | 1,283,091                      |        | 342,554                                                                                                                                                      |                | 432,055 |                           | 1,602,745 |     | 2,034,800 |                    | 391,640 |               |        |           |                   |                   | (Continued) |
|                                                                                                                                                                                                                                                                                                                                                   |   |   |                     |                        |                                                                                                                                                                           |                                                                           |      |   |                    |               |                           |        |                                                                                                                                                         |                |    |                           |      |     |      |                    |    |               |        |           |                   |                   |        |

----

|                                                                                                                                                                                                                                                                                                                                                                                                   |   |                                                                                                               |                      |                    |                                                                                                                                                                                                               |                                                                                  |        |                                                                                  |                    |               |                           |                                                                                                                                  |                              |                |    |                           |                                  |   |     |                    |               |                   |                   |                   |                   |                   |        |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------------------------------------------------------------------------------------------------------------------|---------------------------|-------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------|-------------|---------------------------------------------------------------------------------------|-------------------------|--------------------|--------------------------------|---------------------------------------------------------------------------------------------------------------------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------|---------------------|---------|--------------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|----------|-------------------------|--------------------|------------------------|------------------------|------------------------|------------------------|------------------------|-------------|
|                                                                                                                                                                                                                                                                                                                                                                                                   |   |                                                                                                               |                      |                    |                                                                                                                                                                                                               |                                                                                  |        |                                                                                  |                    |               |                           |                                                                                                                                  |                                                                                                                                                                     |                |    |                           |                                                                                                                                                                                             |   |     |                    |               |                   |                   |                   |                   |                   |        |
|                                                                                                                                                                                                                                                                                                                                                                                                   |   |                                                                                                               |                      |                    |                                                                                                                                                                                                               |                                                                                  |        |                                                                                  |  Initial      cost |               |  Costs                    |                                                                                                                                  |  Gross      amount carried at close of period                                                                                                                       |                |    |                           |                                                                                                                                                                                             |   |     |                    |               |
|                                                                   |   |                     |            |                    |                                     |                                                                                  |        |                                                                                  |                    |               |        Buildings      and |                                                                                                                                  | capitalizedsubsequent      to                                                                                                                                            |  Land      and |    |        Buildings      and |                                                                                                                                                                                        |   |     |        Accumulated |          |  Date      of     |                   |  Date             |                   |  Lives            |
| Property                                                                                                                                                                                                                                                                                                                                                                                               |   | Units                                                                                                              |                      | Location                |                                                                                                                                                                                                               |                                                                                  | Encumbrance | Land                                                                                  |                    |  improvements |                           | acquisition                                                                                                                           |                                                                                                                                                                     |  improvements  |    | improvements                   |                                                                                                                                                                                             |   | Total(1) |                    |  depreciation |                   |  construction     |                   |  acquired         |                   | (years)     |
| Unencumbered      apartment communities                                                                                                                                                                                                                                                                                                                                                                |   |                                                                                                               |                      |                    |                                                                                                                                                                                                               |                                                                                  |        |                                                                                  |                    |               |                           |                                                                                                                                  |                                                                                                                                                                     |                |    |                           |                                                                                                                                                                                             |   |     |                    |               |                   |                   |
|  Alpine      Country                                                                                                                                                                                                                                                                                                                                                                              |   | 108                                                                                                                |                      | Alpine,      CA         |                                                                                                                                                                                                               |                                                                                  |        | 1,741                                                                                 |                    | 6,914              |                           | 456                                                                                                                                   |                                                                                                                                                                     | 1,746               |    | 7,364                          |                                                                                                                                                                                             | 9,111  |     | 1,335                   |               | 1986                   |                   |  12/02            |                   |    3-30 |
|  Avondale      at Warner Center                                                                                                                                                                                                                                                                                                                                                                   | 446    |                                                                                                               | Woodland      Hills, CA   |                    | 10,536                                                                                                                                                                                                             |                                                                                  | 24,522      |                                                                                  | 14,962                  |               | 10,601                         |                                                                                                                                  | 39,419                                                                                                                                                                   |                | 50,020  |                           | 12,858                                                                                                                                                                                           |   | 1970     |                    |  01/97        |                   |    3-30 |
|  Belmont      Terrace                                                                                                                                                                                                                                                                                                                                                                             |   | 71                                                                                                                 |                      | Belmont,      CA        |                                                                                                                                                                                                               |                                                                                  |        | 4,446                                                                                 |                    | 10,290             |                           | 647                                                                                                                                   |                                                                                                                                                                     | 4,474               |    | 10,909                         |                                                                                                                                                                                             | 15,383 |     | 433                     |               | 1974                   |                   |  10/06            |                   |    3-30 |
|  Bridle      Trails                                                                                                                                                                                                                                                                                                                                                                               |   | 108                                                                                                                |                      | Kirkland,      WA       |                                                                                                                                                                                                               |                                                                                  |        | 1,500                                                                                 |                    | 5,930              |                           | 4,982                                                                                                                                 |                                                                                                                                                                     | 1,531               |    | 10,881                         |                                                                                                                                                                                             | 12,412 |     | 3,182                   |               | 1986                   |                   |  10/97            |                   |    3-30 |
|  Bunker      Hill                                                                                                                                                                                                                                                                                                                                                                                 |   | 456                                                                                                                |                      | Los      Angeles, CA    |                                                                                                                                                                                                               |                                                                                  |        | 11,498                                                                                |                    | 27,871             |                           | 3,350                                                                                                                                 |                                                                                                                                                                     | 11,639              |    | 31,080                         |                                                                                                                                                                                             | 42,719 |     | 11,324                  |               | 1968                   |                   |  03/98            |                   |    3-30 |
|  Cambridge                                                                                                                                                                                                                                                                                                                                                                                        |   | 40                                                                                                                 |                      | Chula      Vista, CA    |                                                                                                                                                                                                               |                                                                                  |        | 497                                                                                   |                    | 1,973              |                           | 214                                                                                                                                   |                                                                                                                                                                     | 498                 |    | 2,186                          |                                                                                                                                                                                             | 2,684  |     | 387                     |               | 1965                   |                   |  12/02            |                   |    3-30 |
|  Canyon      Oaks                                                                                                                                                                                                                                                                                                                                                                                 |   | 250                                                                                                                |                      | San      Ramon, CA      |                                                                                                                                                                                                               |                                                                                  |        | 19,088                                                                                |                    | 44,473             |                           | 119                                                                                                                                   |                                                                                                                                                                     | 19,088              |    | 44,591                         |                                                                                                                                                                                             | 63,680 |     | 934                     |               | 2005                   |                   | 05/07                  |                   |    3-30 |
|  Carlton      Heights                                                                                                                                                                                                                                                                                                                                                                             |   | 70                                                                                                                 |                      | Santee,      CA         |                                                                                                                                                                                                               |                                                                                  |        | 1,099                                                                                 |                    | 4,368              |                           | 318                                                                                                                                   |                                                                                                                                                                     | 1,103               |    | 4,682                          |                                                                                                                                                                                             | 5,785  |     | 855                     |               | 1979                   |                   |  12/02            |                   |    3-30 |
|  CBC      Apartments                                                                                                                                                                                                                                                                                                                                                                              |   | 148                                                                                                                |                      | Goleta,      CA         |                                                                                                                                                                                                               |                                                                                  |        | 6,283                                                                                 |                    | 24,000             |                           | 96                                                                                                                                    |                                                                                                                                                                     | 6,288               |    | 24,091                         |                                                                                                                                                                                             | 30,379 |     | 1,587                   |               | 1962                   |                   |  01/06            |                   |    3-30 |
|  Cedar      Terrace                                                                                                                                                                                                                                                                                                                                                                               |   | 180                                                                                                                |                      | Bellevue,      WA       |                                                                                                                                                                                                               |                                                                                  |        | 5,543                                                                                 |                    | 16,442             |                           | 2,077                                                                                                                                 |                                                                                                                                                                     | 5,652               |    | 18,410                         |                                                                                                                                                                                             | 24,062 |     | 1,857                   |               | 1984                   |                   |  01/05            |                   |    3-30 |
|  Chimney      Sweep Apartments                                                                                                                                                                                                                                                                                                                                                                    | 91     |                                                                                                               | Goleta,      CA           |                    |                                                                                                                                                                                                               |                                                                                  | 5,558       |                                                                                  | 21,320                  |               | 1,561                          |                                                                                                                                  | 5,618                                                                                                                                                                    |                | 22,820  |                           | 28,439                                                                                                                                                                                           |   | 1,670    |                    | 1967               |                   |  01/06            |                   |    3-30 |
|  Country      Villas                                                                                                                                                                                                                                                                                                                                                                              |   | 180                                                                                                                |                      | Oceanside,      CA      |                                                                                                                                                                                                               |                                                                                  |        | 4,174                                                                                 |                    | 16,583             |                           | 2,180                                                                                                                                 |                                                                                                                                                                     | 4,187               |    | 18,750                         |                                                                                                                                                                                             | 22,937 |     | 3,404                   |               | 1976                   |                   |  12/02            |                   |    3-30 |
|  Monterra      del Sol (Euclid)                                                                                                                                                                                                                                                                                                                                                                   |   | 85                                                                                                                 |                      | Pasadena,      CA       |                                                                                                                                                                                                               |                                                                                  |        | 2,202                                                                                 |                    | 4,794              |                           | 4,364                                                                                                                                 |                                                                                                                                                                     | 2,824               |    | 8,536                          |                                                                                                                                                                                             | 11,360 |     | 2,274                   |               | 1972                   |                   |  04/99            |                   |    3-30 |
|  Fairways(5)                                                                                                                                                                                                                                                                                                                                                                                      |   | 74                                                                                                                 |                      | Newport      Beach, CA  |                                                                                                                                                                                                               |               - |        | 7,850                                                                                 |                    | 2,876              |                           | 9                                                                                                                                     |                                                                                                                                                                     | 10,717              |    | 10,726                         |                                                                                                                                                                                             | 3,877  |     | 1972                    |               |  06/99            |                   |    3-30 |
|  Foothill      Gardens/Twin Creeks                                                                                                                                                                                                                                                                                                                                                                | 176    |                                                                                                               | San      Ramon, CA        |                    |                                                                                                                                                                                                               |                                                                                  | 5,875       |                                                                                  | 13,992                  |               | 3,435                          |                                                                                                                                  | 5,964                                                                                                                                                                    |                | 17,339  |                           | 23,302                                                                                                                                                                                           |   | 6,957    |                    | 1985               |                   |  02/97            |                   |    3-30 |
|  Grand      Regency                                                                                                                                                                                                                                                                                                                                                                               |   | 60                                                                                                                 |                      | Escondido,      CA      |                                                                                                                                                                                                               |                                                                                  |        | 881                                                                                   |                    | 3,498              |                           | 217                                                                                                                                   |                                                                                                                                                                     | 883                 |    | 3,713                          |                                                                                                                                                                                             | 4,596  |     | 669                     |               | 1967                   |                   |  12/02            |                   |    3-30 |
|  Hampton      Park                                                                                                                                                                                                                                                                                                                                                                                |   | 83                                                                                                                 |                      | Glendale,      CA       |                                                                                                                                                                                                               |                                                                                  |        | 2,407                                                                                 |                    | 5,672              |                           | 1,563                                                                                                                                 |                                                                                                                                                                     | 2,426               |    | 7,216                          |                                                                                                                                                                                             | 9,642  |     | 2,055                   |               | 1974                   |                   |  06/99            |                   |    3-30 |
|  Hampton      Place                                                                                                                                                                                                                                                                                                                                                                               |   | 132                                                                                                                |                      | Glendale,      CA       |                                                                                                                                                                                                               |                                                                                  |        | 4,288                                                                                 |                    | 11,081             |                           | 2,323                                                                                                                                 |                                                                                                                                                                     | 4,307               |    | 13,385                         |                                                                                                                                                                                             | 17,692 |     | 3,817                   |               | 1970                   |                   |  06/99            |                   |    3-30 |
|  Hillsdale      Garden Apartments                                                                                                                                                                                                                                                                                                                                                                 | 697    |                                                                                                               | Hillsdale      Garden, CA |                    |     22,000                                                                                                                                                                                     |                                                                                  | 94,681      |                                                                                  | 1,976                   |               | 22,325                         |                                                                                                                                  | 97,184                                                                                                                                                                   |                | 119,509 |                           | 3,971                                                                                                                                                                                            |   | 1948     |                    |  09/06(6)     |    3-30 |
|  Hope      Ranch Collection                                                                                                                                                                                                                                                                                                                                                                       |   | 108                                                                                                                |                      | Santa      Barbara, CA  |                                                                                                                                                                                                               |                                                                                  | 16,877      |                                                                                  | 4,078                   |               | 122                            |                                                                                                                                  | 4,208                                                                                                                                                                    |                | 16,869  |                           | 21,077                                                                                                                                                                                           |   | 384      |                    | 1965               |                   | 03/07                  |                   |    3-30 |
|  Linden      Square                                                                                                                                                                                                                                                                                                                                                                               |   | 183                                                                                                                |                      | Seattle,      WA        |                                                                                                                                                                                                               |                                                                                  |        | 4,374                                                                                 |                    | 11,588             |                           | 931                                                                                                                                   |                                                                                                                                                                     | 4,202               |    | 12,691                         |                                                                                                                                                                                             | 16,893 |     | 3,464                   |               | 1994                   |                   |  06/00            |                   |    3-30 |
|  Pinehurst                                                                                                                                                                                                                                                                                                                                                                                        |   | 118                                                                                                                |                      | Ventura,      CA        |                                                                                                                                                                                                               |                                                                                  |        | 1,570                                                                                 |                    | 3,912              |                           | 3,962                                                                                                                                 |                                                                                                                                                                     | 1,618               |    | 7,826                          |                                                                                                                                                                                             | 9,444  |     | 2,546                   |               | 1971                   |                   |  06/97            |                   |    3-30 |
|  Magnonlia      Lane(7)                                                                                                                                                                                                                                                                                                                                                                           |   | 32                                                                                                                 |                      | Sunnyvale,      CA      |                                                                                                                                                                                                               |                                                                                  |        |               - |                    | 5,430              |                           | 8                                                                                                                                     |                                                                                                                                                                     | 3                   |    | 5,434                          |                                                                                                                                                                                             | 5,438  |     | 98                      |               | 2001                   |                   | 06/07                  |                   |    3-30 |
|  Maple      Leaf                                                                                                                                                                                                                                                                                                                                                                                  |   | 48                                                                                                                 |                      | Seattle,      WA        |                                                                                                                                                                                                               |                                                                                  |        | 805                                                                                   |                    | 3,283              |                           | 749                                                                                                                                   |                                                                                                                                                                     | 828                 |    | 4,010                          |                                                                                                                                                                                             | 4,837  |     | 1,376                   |               | 1986                   |                   |  10/97            |                   |    3-30 |
|  Marbella,      The                                                                                                                                                                                                                                                                                                                                                                               |   | 60                                                                                                                 |                      | Los      Angeles, CA    |                                                                                                                                                                                                               |                                                                                  |        | 2,826                                                                                 |                    | 11,269             |                           | 147                                                                                                                                   |                                                                                                                                                                     | 2,871               |    | 11,371                         |                                                                                                                                                                                             | 14,242 |     | 865                     |               | 1991                   |                   |  09/05            |                   |    3-30 |
|  Marina      City Club(8)                                                                                                                                                                                                                                                                                                                                                                         |   | 101                                                                                                                |                      | Marina      Del Rey, CA |                                                                                                                                                                                                               |               - |        | 28,167                                                                                |                    | 2,669              |                           |                       - |                                                                                                                                                                     | 30,836              |    | 30,836                         |                                                                                                                                                                                             | 4,070  |     | 1971                    |               |  01/04            |                   |    3-30 |
|  Marina      Cove(9)                                                                                                                                                                                                                                                                                                                                                                              |   | 292                                                                                                                |                      | Santa      Clara, CA    |                                                                                                                                                                                                               |                                                                                  |        | 5,320                                                                                 |                    | 16,431             |                           | 4,136                                                                                                                                 |                                                                                                                                                                     | 5,324               |    | 20,563                         |                                                                                                                                                                                             | 25,887 |     | 10,377                  |               | 1974                   |                   |  06/94            |                   |    3-30 |
|  Meadowood                                                                                                                                                                                                                                                                                                                                                                                        |   | 320                                                                                                                |                      | Simi      Valley, CA    |                                                                                                                                                                                                               |                                                                                  |        | 7,852                                                                                 |                    | 18,592             |                           | 3,829                                                                                                                                 |                                                                                                                                                                     | 7,898               |    | 22,375                         |                                                                                                                                                                                             | 30,273 |     | 9,088                   |               | 1986                   |                   |  11/96            |                   |    3-30 |
|  Mesa      Village                                                                                                                                                                                                                                                                                                                                                                                |   | 133                                                                                                                |                      | Clairemont,      CA     |                                                                                                                                                                                                               |                                                                                  |        | 1,888                                                                                 |                    | 7,498              |                           | 494                                                                                                                                   |                                                                                                                                                                     | 1,894               |    | 7,986                          |                                                                                                                                                                                             | 9,880  |     | 1,382                   |               | 1963                   |                   |  12/02            |                   |    3-30 |
|  Mill      Creek at Windermere                                                                                                                                                                                                                                                                                                                                                                    | 400    |                                                                                                               | San      Ramon, CA        |                    |                                                                                                                                                                                                               |                                                                                  | 29,551      |                                                                                  | 70,430                  |               | 37                             |                                                                                                                                  | 29,551                                                                                                                                                                   |                | 69,070  |                           | 98,620                                                                                                                                                                                           |   | 671      |                    | 1974               |                   | 09/07                  |                   |    3-30 |
|  Mirabella                                                                                                                                                                                                                                                                                                                                                                                        |   | 188                                                                                                                |                      | Marina      Del Rey, CA |                                                                                                                                                                                                               | 6,180                                                                                 |        | 26,673                                                                                |                    | 10,264             |                           | 6,270                                                                                                                                 |                                                                                                                                                                     | 36,847              |    | 43,117                         |                                                                                                                                                                                             | 7,557  |     | 2000                    |               |  05/00            |                   |    3-30 |
|  Monterra      del Mar (Windsor Terrace)                                                                                                                                                                                                                                                                                                                                                          | 123    |                                                                                                               | Pasadena,      CA         |                    |                                                                                                                                                                                                               |                                                                                  | 2,188       |                                                                                  | 5,263                   |               | 3,951                          |                                                                                                                                  | 2,735                                                                                                                                                                    |                | 8,666   |                           | 11,402                                                                                                                                                                                           |   | 3,016    |                    | 1972               |                   |  09/97            |                   |    3-30 |
|  Mountain      View                                                                                                                                                                                                                                                                                                                                                                               |   | 106                                                                                                                |                      | Camarillo,      CA      |                                                                                                                                                                                                               |                                                                                  |        | 3,167                                                                                 |                    | 11,106             |                           | 667                                                                                                                                   |                                                                                                                                                                     | 3,117               |    | 11,823                         |                                                                                                                                                                                             | 14,940 |     | 1,581                   |               | 1980                   |                   |  01/04            |                   |    3-30 |
|  Park      Hill at Issaquah                                                                                                                                                                                                                                                                                                                                                                       |   | 245                                                                                                                |                      | Issaquah,      CA       |                                                                                                                                                                                                               |                                                                                  |        | 7,284                                                                                 |                    | 21,937             |                           | 810                                                                                                                                   |                                                                                                                                                                     | 7,284               |    | 22,747                         |                                                                                                                                                                                             | 30,031 |     | 2,530                   |               | 1999                   |                   |  02/99(10)        |    3-30 |
|  Pinehurst                                                                                                                                                                                                                                                                                                                                                                                        |   | 28                                                                                                                 |                      | Ventura,      CA        |                                                                                                                                                                                                               |                                                                                  |        | 355                                                                                   |                    | 1,356              |                           | 269                                                                                                                                   |                                                                                                                                                                     | 6                   |    | 1,975                          |                                                                                                                                                                                             | 1,980  |     | 252                     |               | 1973                   |                   |  12/04            |                   |    3-30 |
|  Salmon      Run at Perry Creek                                                                                                                                                                                                                                                                                                                                                                   | 132    |                                                                                                               | Bothell,      WA          |                    |                                                                                                                                                                                                               |                                                                                  | 3,717       |                                                                                  | 11,483                  |               | 501                            |                                                                                                                                  | 3,801                                                                                                                                                                    |                | 11,900  |                           | 15,701                                                                                                                                                                                           |   | 2,877    |                    | 2000               |                   |  10/00            |                   |    3-30 |
|  Shadow      Point                                                                                                                                                                                                                                                                                                                                                                                |   | 172                                                                                                                |                      | Spring      Valley, CA  |                                                                                                                                                                                                               |                                                                                  | 2,812       |                                                                                  | 11,170                  |               | 1,386                          |                                                                                                                                  | 2,820                                                                                                                                                                    |                | 12,548  |                           | 15,368                                                                                                                                                                                           |   | 2,373    |                    | 1983               |                   |  12/02            |                   |    3-30 |
|  Spring      Lake                                                                                                                                                                                                                                                                                                                                                                                 |   | 69                                                                                                                 |                      | Seattle,      WA        |                                                                                                                                                                                                               |                                                                                  |        | 838                                                                                   |                    | 3,399              |                           | 359                                                                                                                                   |                                                                                                                                                                     | 859                 |    | 3,737                          |                                                                                                                                                                                             | 4,596  |     | 1,441                   |               | 1986                   |                   |  10/97            |                   |    3-30 |
|  St.      Cloud                                                                                                                                                                                                                                                                                                                                                                                   |   | 302                                                                                                                |                      | Houston,      TX        |                                                                                                                                                                                                               |                                                                                  |        | 2,140                                                                                 |                    | 7,782              |                           | 247                                                                                                                                   |                                                                                                                                                                     | 2,146               |    | 8,022                          |                                                                                                                                                                                             | 10,169 |     | 1,915                   |               | 1968                   |                   |  12/02            |                   |    3-30 |
|                                                                                                                                                                                                                                                                                                                                                                                                   |   |                                                                                                               |                      |                    |                                                                                                                                                                                                               |                                                                                  |        |                                                                                  |                    |               |                           |                                                                                                                                  |                                                                                                                                                                     |                |    |                           |                                                                                                                                                                                             |   |     |                    |               |                   |                   |                   |                   |                   | (Continued) |

----

|                                                                                                                                                                                                                                                                                                               |   |                                                |    |                    |                                                                                                                                                                                                                                                                     |                                                                                                                            |                                                      |                                                                                  |                                                                                                  |                                                                                                  |                     |                                                            |                                                                                      |                                                                                      |                                                                                                  |                                                                                                  |                                                                    |                                                                    |                                                                                |                                                                                                                      |              |               |         |           |                   |                   |   |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-----------------------------------------------------|---------|-------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------------------------|-----------------------------------------------------------|---------------------------------------------------------------------------------------|-------------------------------------------------------------------------------------------------------|-------------------------------------------------------------------------------------------------------|--------------------------|-----------------------------------------------------------------|-------------------------------------------------------------------------------------------|-------------------------------------------------------------------------------------------|-------------------------------------------------------------------------------------------------------|-------------------------------------------------------------------------------------------------------|-------------------------------------------------------------------------|-------------------------------------------------------------------------|-------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------------------|-------------------|--------------------|--------------|----------------|------------------------|------------------------|--------|
|                                                     |   |                                                |    |                    |                                                                                                                              |                                                                                                                            |                                                      |                                                                                  |  Initial      cost                                                                               |                                                                                                  | Costscapitalized         |                                                            |  Gross      amount carried at close of period                                        |                                                                                      |                                                                                                  |                                                                                                  |                                                                    |                                                                    |                                                                                |                                                                                                                      |              |
|                                                                                                                                                                                                                                                                                                               |   |                                                |    |                    |                                                                                                                                                                                                                                                                     |                                                                                                                            |                                                      |                                                                                  |                                                                                                  |                                                                                                  |  Buildings      and |                                                            | subsequent      to                                                                        |                                                                                      | Land      and                                                                                         |                                                                                                  |  Buildings      and                                                |                                                                    |                                                                                |                                                                                                                      |  Accumulated |               | Date      of |           | Date                   |                   | Lives  |
| Property                                                                                                                                                                                                                                                                                                           |   | Units                                               |    | Location                |                                                                                                                                                                                                                                                                     |  Encumbrance                                                                                                               |                                                      | Land                                                                                  |                                                                                                  |  improvements                                                                                    |                     | acquisition                                                     |                                                                                      |  improvements                                                                        |                                                                                                  |  improvements                                                                                    |                                                                    | Total(1)                                                                |                                                                                |  depreciation                                                                                                        |              |  construction |         |  acquired |                   | (years)                |
| Unencumbered      apartment communities (continued)                                                                                                                                                                                                                                                                |   |                                                |    |                    |                                                                                                                                                                                                                                                                     |                                                                                                                            |                                                      |                                                                                  |                                                                                                  |                                                                                                  |                     |                                                            |                                                                                      |                                                                                      |                                                                                                  |                                                                                                  |                                                                    |                                                                    |                                                                                |                                                                                                                      |              |               |
|  The      Laurels                                                                                                                                                                                                                                                                                             |   | 164                                                 |    | Mill      Creek, WA     |                                                                                                                                                                                                                                                                     |                                                                                                                            |                                                      | 1,559                                                                                 |                                                                                                  | 6,430                                                                                                 |                     | 1,916                                                           |                                                                                      | 1,595                                                                                     |                                                                                                  | 8,309                                                                                                 |                                                                    | 9,905                                                                   |                                                                                | 3,435                                                                                                                     |              | 1981               |         |  12/96    |                   |    3-30 |
|  Tierra      del Sol/Norte                                                                                                                                                                                                                                                                                    |   | 156                                                 |    | El      Cajon, CA       |                                                                                                                                                                                                                                                                     |                                                                                                                            |                                                      | 2,455                                                                                 |                                                                                                  | 9,753                                                                                                 |                     | 654                                                             |                                                                                      | 2,463                                                                                     |                                                                                                  | 10,399                                                                                                |                                                                    | 12,862                                                                  |                                                                                | 1,881                                                                                                                     |              | 1969               |         |  12/02    |                   |    3-30 |
|  Trabucco      Villas                                                                                                                                                                                                                                                                                         |   | 132                                                 |    | Lake      Forest, CA    |                                                                                                                                                                                                                                                                     |                                                                                                                            |                                                      | 3,638                                                                                 |                                                                                                  | 8,640                                                                                                 |                     | 1,548                                                           |                                                                                      | 3,890                                                                                     |                                                                                                  | 9,936                                                                                                 |                                                                    | 13,826                                                                  |                                                                                | 4,011                                                                                                                     |              | 1985               |         |  10/97    |                   |    3-30 |
|  Tuscana                                                                                                                                                                                                                                                                                                      |   | 30                                                  |    | Tracy,      CA          |                                                                                                                                                                                                                                                                     |                                                                                                                            |                                                      | 2,828                                                                                 |                                                                                                  | 6,599                                                                                                 |                     | 153                                                             |                                                                                      | 2,870                                                                                     |                                                                                                  | 6,710                                                                                                 |                                                                    | 9,580                                                                   |                                                                                | 140                                                                                                                       |              | 2007               |         | 02/07          |                   |    3-30 |
|  Vista      Capri - North                                                                                                                                                                                                                                                                                     |   | 106                                                 |    | San      Diego, CA      |                                                                                                                                                                                                                                                                     |                                                                                                                            |                                                      | 1,663                                                                                 |                                                                                                  | 6,609                                                                                                 |                     | 489                                                             |                                                                                      | 1,668                                                                                     |                                                                                                  | 7,093                                                                                                 |                                                                    | 8,761                                                                   |                                                                                | 1,192                                                                                                                     |              | 1975               |         |  12/02    |                   |    3-30 |
|  Wilshire      Promenade                                                                                                                                                                                                                                                                                      |   | 149                                                 |    | Fullerton,      CA      |                                                                                                                                                                                                                                                                     |                                                                                                                            |                                                      | 3,118                                                                                 |                                                                                                  | 7,385                                                                                                 |                     | 5,215                                                           |                                                                                      | 3,797                                                                                     |                                                                                                  | 11,921                                                                                                |                                                                    | 15,718                                                                  |                                                                                | 4,572                                                                                                                     |              | 1992               |         |  01/97    |                   |    3-30 |
|  Woodlawn      Colonial                                                                                                                                                                                                                                                                                       |   | 159                                                 |    | Chula      Vista, CA    |                                                                                                                                                                                                                                                                     |                                                                                                                            |                                                      | 2,344                                                                                 |                                                                                                  | 9,311                                                                                                 |                     | 943                                                             |                                                                                      | 2,351                                                                                     |                                                                                                  | 10,248                                                                                                |                                                                    | 12,598                                                                  |                                                                                | 1,923                                                                                                                     |              | 1974               |         |  12/02    |                   |    3-30 |
|  Woodside      Village                                                                                                                                                                                                                                                                                        |   | 145                                                 |    | Ventura,      CA        |                                                                                                                                                                                                                                                                     |                                                                                                                            |                                                      | 5,331                                                                                 |                                                                                                  | 21,036                                                                                                |                     | 1,145                                                           |                                                                                      | 5,342                                                                                     |                                                                                                  | 22,170                                                                                                |                                                                    | 27,512                                                                  |                                                                                | 2,221                                                                                                                     |              | 1987               |         |  12/04    |                   |    3-30 |
|                                                                                                                                                                                                                                                                                                               |   | 24,393                                              |    |                    |                                                                                                                                                                                                                                                                     |                                                                                                                            | 1,325,057                                                 |                                                                                  | 640,904                                                                                               |                                                                                                  | 1,985,955                |                                                            | 437,870                                                                                   |                                                                                      | 654,629                                                                                               |                                                                                                  | 2,410,099                                                               |                                                                    | 3,064,729                                                                           |                                                                                                                      | 532,323           |               |         |           |                   |                   |   |
|                                                                                                                                                                                                                                                                                                               |   |                                                |    |                    |                                                                                                                                                                                                                                                                     |                                                                                                                            |                                                      |                                                                                  |                                                                                                  |                                                                                                  |                     |                                                            |                                                                                      |                                                                                      |                                                                                                  |                                                                                                  |                                                                    |                                                                    |                                                                                |                                                                                                                      |              |               |         |           |                   |                   |   |
|                                                                                                                                                                                                                                                                                                               |   |                                                |    |                    |                                                                                                                                                                                                                                                                     |                                                                                                                            |                                                      |                                                                                  |                                                                                                  |                                                                                                  |                     |                                                            |                                                                                      |                                                                                      |                                                                                                  |                                                                                                  |                                                                    |                                                                    |                                                                                |                                                                                                                      |              |               |         |           |                   |                   |   |
|                                                                                                                                                                                                                                                                                                               |   |                                                |    |                    |                                                                                                                                                                                                                                                                     |                                                                                                                            |                                                      |                                                                                  |                                                                                                  |                                                                                                  |                     |                                                            |                                                                                      |                                                                                      |                                                                                                  |                                                                                                  |                                                                    |                                                                    |                                                                                |                                                                                                                      |              |               |         |           |                   |                   |   |
|                                                                                                                                                                                                                                                                                                               |   |                                                |    |                    |                                                   |                                                                                                                            |                                                      |                                                                                  |  Initial      cost                                                                               |                                                                                                  | Costscapitalized         |                                                            |  Gross      amount carried at close of period                                        |                                                                                      |                                                                                                  |                                                                                                  |                                                                    |                                                                    |                                                                                |                                                                                                                      |              |
|                                                                                                                                                                                                                                                                                                               |   |                                                |    |                    |                                                                                                                                                                                                                                                                     |                                                                                                                            |                                                      |                                                                                  |                                                                                                  |                                                                                                  |  Buildings      and |                                                            | subsequent      to                                                                        | Land      and                                                                             |                                                                                                  |  Buildings      and                                                                              |                                                                    |                                                                    |                                                                                | Accumulated                                                                                                               |              | Date      of       |         | Date           |                   | Lives                  |
| Property                                                                                                                                                                                                                                                                                                           |   | Units                                               |    | Location                |                                                                                                                                                                                                                                                                     |  Encumbrance                                                                                                               |                                                      | Land                                                                                  |                                                                                                  |  improvements                                                                                    |                     | acquisition                                                     |                                                                                      |  improvements                                                                        |                                                                                                  |  improvements                                                                                    |                                                                    | Total(1)                                                                |                                                                                | depreciation                                                                                                              |              | construction       |         | acquired       |                   | (years)                |
| Other      real estate assets                                                                                                                                                                                                                                                                                      |   |                                                |    |                    |                                                                                                                                                                                                                                                                     |                                                                                                                            |                                                      |                                                                                  |                                                                                                  |                                                                                                  |                     |                                                            |                                                                                      |                                                                                      |                                                                                                  |                                                                                                  |                                                                    |                                                                    |                                                                                |                                                                                                                      |              |               |         |           |                   |                   |   |
| Office      Buildings                                                                                                                                                                                                                                                                                              |   |                                                |    |                    |                                                                                                                                                                                                                                                                     |                                                                                                                            |                                                      |                                                                                  |                                                                                                  |                                                                                                  |                     |                                                            |                                                                                      |                                                                                      |                                                                                                  |                                                                                                  |                                                                    |                                                                    |                                                                                |                                                                                                                      |              |               |         |           |                   |                   |   |
|    925      East Meadow                                                                                                                                                                                                                                                                             |   |                                                |    | Palo      Alto, CA      |                                                                                                                                                                                                                                                                     |                      - |                                                      |       1,401                                             |                                                                                                  |                 3,172 |                     | 1,105                                                           |                                                                                      |               1,857 |                                                                                                  |                 3,822 |                                                                    |            5,678 |                                                                                |              2,211                                       |              | 1988               |         |  11/97    |                   |    3-30 |
|    935      East Meadow(11)                                                                                                                                                                                                                                                                         |   |                                                |    | Palo      Alto, CA      |                                                                                                                                                                                                                                                                     |                      - |                                                      |       1,290                                             |                                                                                                  |                 3,078 |                     | 0                                                               |                                                                                      |               1,290 |                                                                                                  |                 3,078 |                                                                    |            4,368 |                                                                                |                     - |              | 1962               |         |  12/07    |                   |    3-30 |
|    17461      Derian                                                                                                                                                                                                                                                                                |   |                                                |    | Irvine,      CA         |                                                                                                                                                                                                                                                                     |                      - |                                                      |       3,079                                             |                                                                                                  |               12,315            |                     | 5,220                                                           |                                                                                      |               3,105 |                                                                                                  |               17,509            |                                                                    |          20,614            |                                                                                |              4,527                                       |              | 1983               |         | 07/00          |                   |    3-30 |
|    22120      Clarendon                                                                                                                                                                                                                                                                             |   |                                                |    | Woodland      Hills, CA |                      -                                                                                                                                          |                                                                                                                            |          903 |                                                                                  |                 3,600 |                                                                                                  | 1,205                    |                                                            |               1,014 |                                                                                      |                 4,694 |                                                                                                  |            5,708 |                                                                    |              1,538 |                                                                                                                      | 1982              |               |  03/01  |           |    3-30 |
|                                                                                                                                                                                                                                                                                                               |   |                                                |    |                    |                                                                                                                                                                                                                                                                     |                                                                                                                            |                                                      |                                                                                  |                                                                                                  |                                                                                                  |                     |                                                            |                                                                                      |                                                                                      |                                                                                                  |                                                                                                  |                                                                    |                                                                    |                                                                                |                                                                                                                      |              |               |         |           |                   |                   |   |
| Recreational      vehicle parks                                                                                                                                                                                                                                                                                    |   |                                                |    |                    |                                                                                                                                                                                                                                                                     |                                                                                                                            |                                                      |                                                                                  |                                                                                                  |                                                                                                  |                     |                                                            |                                                                                      |                                                                                      |                                                                                                  |                                                                                                  |                                                                    |                                                                    |                                                                                |                                                                                                                      |              |               |         |           |                   |                   |   |
|    Circle      RV                                                                                                                                                                                                                                                                                   |   |                                                |    | El      Cajon, CA       |                                                                                                                                                                                                                                                                     |                      - |                                                      |       2,375                                             |                                                                                                  |                 2,347 |                     | 140                                                             |                                                                                      |               2,505 |                                                                                                  |                 2,357 |                                                                    |            4,862 |                                                                                |                 400                       |              | 1977               |         |  12/02    |                   |    3-30 |
|    Vacationer                                                                                                                                                                                                                                                                                       |   |                                                |    | El      Cajon, CA       |                                                                                                                                                                                                                                                                     |                      - |                                                      |       1,975                                             |                                                                                                  |                 1,951 |                     | 138                                                             |                                                                                      |               2,100 |                                                                                                  |                 1,964 |                                                                    |            4,064 |                                                                                |                 338                       |              | 1973               |         |  12/02    |                   |    3-30 |
| Manufactured      housing communities                                                                                                                                                                                                                                                                              |   |                                                |    |                    |                                                                                                                                                                                                                                                                     |                                                                                                                            |                                                      |                                                                                  |                                                                                                  |                                                                                                  |                     |                                                            |                                                                                      |                                                                                      |                                                                                                  |                                                                                                  |                                                                    |                                                                    |                                                                                |                                                                                                                      |              |               |
|    Green      Valley                                                                                                                                                                                                                                                                                |   |                                                |    | Vista,      CA          |                                                                                                                                                                                                                                                                     |               6,216                                       |                                                      |       3,750                                             |                                                                                                  |                 3,710 |                     | 275                                                             |                                                                                      |               3,993 |                                                                                                  |                 3,742 |                                                                    |            7,735 |                                                                                |                 650                       |              | 1973               |         |  12/02    |                   |    3-30 |
|                                                                                                                                                                                                                                                                                                               |   |                                                |    |                    |                                                                                                                                                                                                                                                                     |                                                                                                                            |                                                      |                                                                                  |                                                                                                  |                                                                                                  |                     |                                                            |                                                                                      |                                                                                      |                                                                                                  |                                                                                                  |                                                                    |                                                                    |                                                                                |                                                                                                                      |              |               |         |           |                   |                   |   |
| Total      apartment communities and other real estate assets                                                                                                                                                                                                                                                      | $      |        1,331,273 |  $ |   655,677     |  $                                                                                                                                                                                                                                                                  |          2,016,128                                                                 |  $                                                   |              445,954 |  $                                                                                               |           670,494                                   |  $                  |          2,447,265 |  $                                                                                   |     3,117,759                                                         |  $                                                                                               |          541,987                                         |                                                                    |                                                                    |                                                                                |                                                                                                                      |              | (Continued)        |

----

|                                                                                                                                                                                                                                                                                                                                                                                                                             |                                            |                                                                                 |    |                 |                                                                                                                                                                                 |                                                                                                                            |                                                                                  |                                      |                                                                                                                                              |                                                                                                                                              |                                                                                                        |                                                                                                        |                             |                                                                           |                                                                                                                                              |                                                                                                                                              |                                                         |                                                         |                                                                                                                      |                                                                                                                      |                                                                                                                |                                                                                                                |               |        |                                                                      |                                                                      |    |   |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-------------------------------------------------|--------------------------------------------------------------------------------------|---------|----------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------|-------------------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------|-------------------------------------------------------------------------------------------------------------|-------------------------------------------------------------------------------------------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------|--------------------------------------------------------------|--------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------------|--------------------|-------------|---------------------------------------------------------------------------|---------------------------------------------------------------------------|---------|--------|
|                                                                                                                                                                                                                                                                                                                                                                                                                             |                                            |                                                                                 |    |                 |                                                                                                                                                                                 |                                                                                                                            |                                                                                  |                                      |                                                                                                                                              |                                                                                                                                              |                                                                                                        |                                                                                                        |  Costs                                                                                                                                                        |                                                                           |                                                                                                                                              |                                                                                                                                              |                                                         |                                                         |                                                                                                                      |                                                                                                                      |                                                                                                 |                                                                                                                |               |        |                                                                      |                                                                      |    |   |
|                                                                                                       |                                            |                                                                                 |    |                 |                                                                                                                                                                                 |                                                                                                                            |                                                                                  |                                      | Initial      cost                                                                                                                                 |                                                                                                                                              |  capitalized                                                                                           |                                                                                                        |                                                                                                                                           | Gross      amount carried at close of period                                   |                                                                                                                                              |                                                                                                                                              |                                                         |                                                         |                                                                                                                      |                                                                                                                      |                                                                                                                |                                                                                                                |
|                                                                                                                                                                                                                                                                                                                                                                                                                             |                                            |                |    |                 |                                |                                                                                                                            |                                                                                  |                                      |                                                                                                                                              |                                                                                                                                              |  Buildings      and                                                                                    |                                                                                                        |  subsequent      to                                                                                                                                           |                                                                           | Land      and                                                                                                                                     |                                                                                                                                              |  Buildings      and                                     |                                                         |                                                                                                                      |                                                                                                                      |  Accumulated                                                                                                   |                                                                                                                | Date      of       |        | Date                                                                      |                                                                      | Lives   |
| Property                                                                                                                                                                                                                                                                                                                                                                                                                         |                                            | Units                                                                                |    | Location             |                                                                                                                                                                                 |  Encumbrance                                                                                                               |                                                                                  | Land                                      |                                                                                                                                              |  improvements                                                                                                                                |                                                                                                        |  acquisition                                                                                           |                                                                                                                                                               |                                                                           |  improvements                                                                                                                                |                                                                                                                                              |  improvements                                           |                                                         | Total(1)                                                                                                                  |                                                                                                                      |  depreciation                                                                                                  |                                                                                                                |  construction |        |  acquired                                                            |                                                                      | (years) |
| Other      real estate assets (continued)                                                                                                                                                                                                                                                                                                                                                                                        |                                            |                                                                                 |    |                 |                                                                                                                                                                                 |                                                                                                                            |                                                                                  |                                      |                                                                                                                                              |                                                                                                                                              |                                                                                                        |                                                                                                        |                                                                                                                                                               |                                                                           |                                                                                                                                              |                                                                                                                                              |                                                         |                                                         |                                                                                                                      |                                                                                                                      |                                                                                                                |                                                                                                                |               |        |                                                                      |
|  Development      Projects(12)                                                                                                                                                                                                                                                                                                                                                                                              |                                            |                                                                                 |    |                 |                                                                                                                                                                                 |                                                                                                                            |                                                                                  |                                      |                                                                                                                                              |                                                                                                                                              |                                                                                                        |                                                                                                        |                                                                                                                                                               |                                                                           |                                                                                                                                              |                                                                                                                                              |                                                         |                                                         |                                                                                                                      |                                                                                                                      |                                                                                                                |                                                                                                                |               |        |                                                                      |                                                                      |
|      Belmont      Station                                                                                                                                                                                                                                                                                                                                                                               |                                            | 275                                                                                  |    | Los      Angeles, CA | $                                                                                                                                                                                    |             19,450                                                  |  $                                                                               |       8,100 |  $                                                                                                                                           |                         - |  $                                                                                                     |                47,378            | $                                                                                                                                                                  |             55,478 |  $                                                                                                                                           |                         - |  $                                                      |          55,478 |  $                                                                                                                   |                     - |                                                                                                                |                    - |               |  12/04 |                                                                      |             - |
|      The      Grand                                                                                                                                                                                                                                                                                                                                                                                     |                                            | 238                                                                                  |    | Oakland,      CA     |                                                                                                                                                                                 |                      - |                                                                                  |       4,838 |                                                                                                                                              |                         - |                                                                                                        |                37,211            |                                                                                                                                                               |             42,049 |                                                                                                                                              |                         - |                                                         |          42,049 |                                                                                                                      |                     - |                                                                                                                |                    - |               | 08/05       |                                                                      |             - |
|      Fourth      Street                                                                                                                                                                                                                                                                                                                                                                                 |                                            | 171                                                                                  |    | Berkeley,      CA    |                                                                                                                                                                                 |                      - |                                                                                  | 8,772                                     |                                                                                                                                              |                                                                                                                                              |                                                                                                        |                  4,601 |                                                                                                                                                               | 13,373                                                                         |                                                                                                                                              |                         - |                                                         |          13,373 |                                                                                                                      |                     - |                                                                                                                |                    - |               | 12/07       |                                                                      |             - |
|                                                                                                                                                                                                                                                                                                                                                                                                                             |                                            |                                                                                 |    |                 |                                                                                                                                                                                 |                                                                                                                            |                                                                                  |                                      |                                                                                                                                              |                                                                                                                                              |                                                                                                        |                                                                                                        |                                                                                                                                                               |                                                                           |                                                                                                                                              |                                                                                                                                              |                                                         |                                                         |                                                                                                                      |                                                                                                                      |                                                                                                                |                                                                                                                |               |        |                                                                      |                                                                      |    |
|  Predevelopment      Projects(13)                                                                                                                                                                                                                                                                                                                                                                                           | 1,658                                           |                                                                                 | various |                 |             12,150                                                                                                       |                                                                                                                            |     87,845                                                        |                                      |                         - |                                                                                                                                              |                  9,248 |                                                                                                        |             97,093                                                                                     |                                                                           |                         - |                                                                                                                                              |          97,093 |                                                         |                     - |                                                                                                                      |                    - |                                                                                                                |               |        |             - |
|  Land      held for future development                                                                                                                                                                                                                                                                                                                                                                                      | 434                                             |                                                                                 | various |                 |                      -                                                      |                                                                                                                            |               - |                                      |                         - |                                                                                                                                              |                25,452            |                                                                                                        |             25,452                                                                                     |                                                                           |                         - |                                                                                                                                              |          25,452 |                                                         |                     - |                                                                                                                      |                    - |                                                                                                                |               |        |             - |
|                                                                                                                                                                                                                                                                                                                                                                                                                             |                                            |                                                                                 |    |                 |                                                                                                                                                                                 |                                                                                                                            |                                                                                  |                                      |                                                                                                                                              |                                                                                                                                              |                                                                                                        |                                                                                                        |                                                                                                                                                               |                                                                           |                                                                                                                                              |                                                                                                                                              |                                                         |                                                         |                                                                                                                      |                                                                                                                      |                                                                                                                |                                                                                                                |               |        |                                                                      |                                                                      |    |
| Consolidated      Development Pipeline                                                                                                                                                                                                                                                                                                                                                                                           |        2,776 |                                                                                 |    |                 | $                                                                                                                                                                                    |             31,600                                                  |  $                                                                               |   109,555                       |  $                                                                                                                                           |                         - |  $                                                                                                     |              123,890                       | $                                                                                                                                                                  |           233,445            |  $                                                                                                                                           |                         - |  $                                                      |        233,445            |  $                                                                                                                   |                     - |                                                                                                                |                                                                                                                |               |        |                                                                      |                                                                      |
|                                                                                                                                                                                                                                                                                                                                                                                                                             |                                            |                                                                                 |    |                 |                                                                                                                                                                                 |                                                                                                                            |                                                                                  |                                      |                                                                                                                                              |                                                                                                                                              |                                                                                                        |                                                                                                        |                                                                                                                                                               |                                                                           |                                                                                                                                              |                                                                                                                                              |                                                         |                                                         |                                                                                                                      |                                                                                                                      |                                                                                                                |                                                                                                                |               |        |                                                                      |                                                                      |    |
| (1)   The      aggregate cost for federal income tax purposes is approximately      $2,379,000,000 (unaudited).                                                                                                                                                                                                                                                                                                   |                                            |                                                                                 |    |                 |                                                                                                                                                                                 |                                                                                                                            |                                                                                  |                                      |                                                                                                                                              |                                                                                                                                              |
| (2)   Phase      I was built in 1969 and Phase II was built in 1977.                                                                                                                                                                                                                                                                                                                                              |                                            |                                                                                 |    |                 |                                                                                                                                                                                 |                                                                                                                            |                                                                                  |                                      |                                                                                                                                              |                                                                                                                                              |                                                                                                        |                                                                                                        |                                                                                                                                                               |                                                                           |                                                                                                                                              |                                                                                                                                              |                                                         |                                                         |                                                                                                                      |                                                                                                                      |
| (3)   The      Operating Partnership's initial ownership was 85%, and the remaining 15%      interest was acquired in 2007.                                                                                                                                                                                                                                                                                       |                                            |                                                                                 |    |                 |                                                                                                                                                                                 |                                                                                                                            |                                                                                  |                                      |                                                                                                                                              |                                                                                                                                              |                                                                                                        |                                                                                                        |                                                                                                                                                               |                                                                           |
| (4)   The      Operating Partnership's initial ownership was 20%, and the remaining 80%      interest was acquired in 2004.                                                                                                                                                                                                                                                                                       |                                            |                                                                                 |    |                 |                                                                                                                                                                                 |                                                                                                                            |                                                                                  |                                      |                                                                                                                                              |                                                                                                                                              |                                                                                                        |                                                                                                        |                                                                                                                                                               |                                                                           |
| (5)   The      land is leased pursuant to a ground lease expiring 2027.                                                                                                                                                                                                                                                                                                                                           |                                            |                                                                                 |    |                 |                                                                                                                                                                                 |                                                                                                                            |                                                                                  |                                      |                                                                                                                                              |                                                                                                                                              |                                                                                                        |                                                                                                        |                                                                                                                                                               |                                                                           |                                                                                                                                              |                                                                                                                                              |                                                         |                                                         |                                                                                                                      |                                                                                                                      |
| (6)  The      land was subject to a ground lease that would have expired in      2047.  In the second quarter of 2007, the Operating Partnership      entered into a joint venture with a third-party, and the Operating      Partnership contributed the improvements for an 81.5% interest and the      joint venture partner contributed title to the land for an 18.5% interest      in the partnership. |
| (7)   The      land is leased pursuant to a ground lease expiring 2070.                                                                                                                                                                                                                                                                                                                                           |                                            |                                                                                 |    |                 |                                                                                                                                                                                 |                                                                                                                            |                                                                                  |                                      |                                                                                                                                              |                                                                                                                                              |                                                                                                        |                                                                                                        |                                                                                                                                                               |                                                                           |                                                                                                                                              |                                                                                                                                              |                                                         |                                                         |                                                                                                                      |                                                                                                                      |
| (8)   The      land is leased pursuant to a ground lease expiring 2067.                                                                                                                                                                                                                                                                                                                                           |                                            |                                                                                 |    |                 |                                                                                                                                                                                 |                                                                                                                            |                                                                                  |                                      |                                                                                                                                              |                                                                                                                                              |                                                                                                        |                                                                                                        |                                                                                                                                                               |                                                                           |                                                                                                                                              |                                                                                                                                              |                                                         |                                                         |                                                                                                                      |                                                                                                                      |
| (9)   A      portion of land is leased pursuant to a ground lease expiring in      2028.                                                                                                                                                                                                                                                                                                                          |                                            |                                                                                 |    |                 |                                                                                                                                                                                 |                                                                                                                            |                                                                                  |                                      |                                                                                                                                              |                                                                                                                                              |                                                                                                        |                                                                                                        |                                                                                                                                                               |                                                                           |
| (10)      The Operating Partnership's initial ownership was 45%, and the remaining      55% interest was acquired in 2004.                                                                                                                                                                                                                                                                                                       |                                            |                                                                                 |    |                 |                                                                                                                                                                                 |                                                                                                                            |                                                                                  |                                      |                                                                                                                                              |                                                                                                                                              |                                                                                                        |                                                                                                        |                                                                                                                                                               |                                                                           |
| (11)      The office building is currently under renovation through approximately      the third quarter of 2008.                                                                                                                                                                                                                                                                                                                |                                            |                                                                                 |    |                 |                                                                                                                                                                                 |                                                                                                                            |                                                                                  |                                      |                                                                                                                                              |                                                                                                                                              |                                                                                                        |                                                                                                        |                                                                                                                                                               |                                                                           |
| (12)      All construction costs are reflected as real estate under development in      the Operating Partnership's consolidated balance sheets until the project      reaches stabilization.                                                                                                                                                                                                                                    |                                            |                                                                                 |    |                 |                                                                                                                                                                                 |                                                                                                                            |
| (13)      The 535 - 575 River Oaks and 6230 Sunset Blvd. commercial buildings are      accounted as part of predevelopment projects for the year ended December      31, 2007.                                                                                                                                                                                                                                                   |                                            |                                                                                 |    |                 |                                                                                                                                                                                 |                                                                                                                            |

| A      summary of activity for rental properties and accumulated depreciation is      as follows: |   |   |                                                                                                          |                                                                                                          |   |                                                                                                    |                                                                                                    |   |                                         |                                             |   |
|---------------------------------------------------------------------------------------------------|--------|--------|---------------------------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------|--------|---------------------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------|--------|----------------------------------------------|--------------------------------------------------|--------|
|                                                                                              |   |   |                                                                                                          |                                                                                                          |   |                                                                                                    |                                                                                                    |   |                                         |                                             |   |   |   |   |                                                                                |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                              |   |   |                                                                                                          | 2007                                                                                                          |   |                                                                                                    | 2006                                                                                                    |   |                                         | 2005                                             |   |   |   |   |   |   |   |   |   | 2007 |   |   | 2006 |   |   | 2005 |
| Rental      properties:                                                                           |   |   |                                                                                                          |                                                                                                          |   |                                                                                                    |                                                                                                    |   |                                         |                                             |   |   |   | Accumulated      depreciation: |   |   |   |   |   |   |   |   |
| Balance      at beginning of year                                                                 |   |   | $                                                                                                             | 2,669,187                                                                                                     |   | $                                                                                                       | 2,431,629                                                                                               |   | $                                            | 2,371,194                                        |   |   |   | Balance      at beginning of year | $ | 465,015 |   | $ | 389,040 |   | $ | 329,652 |
| Improvements                                                                                      |   |   |                                                                                                          |       105,673                                                                   |   |                                                                                                    |         40,885                                                  |   |                                         | 24,000                                           |   |   |   | Depreciation      expense - Acquisitions |   |          4,838 |   |   |          2,314 |   |   | 1,406 |
| Acquisition      of real estate                                                                   |   |   |                                                                                                          |       397,605                                                                   |   |                                                                                                    |       202,459                                                             |   |                                         | 90,065                                           |   |   |   | Depreciation      expense - Development |   |          5,540 |   |   |                  - |   |   |                  - |
| Development      of real estate                                                                   |   |   |                                                                                                          |                   - |   |                                                                                                    |                  - |   |                                         |        20,460 |   |   |   | Depreciation      expense - Discontinued operations |          1,820 |   |   |          4,941 |   |   |          5,777 |
| Disposition      of real estate                                                                   |   |   |                                                                                                          |        (54,706)                                                            |   |                                                                                                    |         (5,786)                                                 |   |                                         |       (22,473)     |   |   |   | Depreciation      and amortization expense - Rental properties |   |        83,274 |   |   |        73,241 |   |   | 66,409 |
| Real      estate investment held for sale                                                         |   |   |                   - |                                                                                                          |   |                  - |                                                                                                    |   |       (51,617) |                                             |   |   | Dispositions |   |   |   |   |       (18,500) |   |   |         (2,362) |   |   |         (4,768) |
| Balance      at the end of year                                                                   |   |   | $                                                                                                             | 3,117,759                                                                                                     |   | $                                                                                                       | 2,669,187                                                                                               |   | $                                            | 2,431,629                                        |   |   |   | Real      estate investment held for sale |   |   |   |   |         - |   |   |         (2,159) |   |   |         (9,436) |
|                                                                                              |   |   |                                                                                                          |                                                                                                          |   |                                                                                                    |                                                                                                    |   |                                         |                                             |   |   |   | Balance      at the end of year |   | $ | 541,987 |   | $ | 465,015 |   | $ | 389,040 |
|                                                                                              |   |   |                                                                                                          |                                                                                                          |   |                                                                                                    |                                                                                                    |   |                                         |                                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |

----

SIGNATURES

|   | ESSEX      PORTFOLIO, L.P.                                                                                   |
|--------|--------------------------------------------------------------------------------------------------------------|
|   | (Registrant)                                                                                                 |
|   |                                                                                                         |
|   |                                                                                                         |
|   | Date:      February 29, 2008                                                                                 |
|   |                                                                                                         |
|   |                                                                                                         |
|   | By:  /S/      MICHAEL T. DANCE                                                                     |
|   |                                                                                                         |
|   |                                                                                                         |
|   | Michael      T. Dance                                                                                        |
|   | Executive      Vice President, Chief Financial Officer(Authorized      Officer, Principal Financial Officer) |
|   |                                                                                                         |
|   |                                                                                                         |
|   | By:  /S/      BRYAN HUNT                                                                           |
|   |                                                                                                         |
|   |                                                                                                         |
|   | Bryan      Hunt                                                                                              |
|   | Vice      President, Chief Accounting Officer                                                                |

| Signature                                              | Title                                                                                                                        | Date                   |
|--------------------------------------------------------|------------------------------------------------------------------------------------------------------------------------------|------------------------|
| /S/ KEITH R.      GUERICKEKeith      R. Guericke       | Chief      Executive Officer and President, Director, and Vice      Chairman of the Board (Principal      Executive Officer) | February      29, 2008 |
| /S/ MICHAEL T.      DANCEMichael      T. Dance         | Executive      Vice President and Chief Financial Officer (Principal      Financial Officer)                                 | February      29, 2008 |
| /S/ MICHAEL J.      SCHALLMichael      J. Schall       | Senior      Executive Vice President, Director, and Chief Operating      Officer                                             | February      29, 2008 |
| /S/ GEORGE M.      MARCUSGeorge      M. Marcus         | Director      and Chairman of the Board                                                                                      | February      29, 2008 |
| /S/ WILLIAM A.      MILLICHAPWilliam      A. Millichap | Director                                                                                                                     | February      29, 2008 |
| /S/ DAVID W.      BRADYDavid      W. Brady             | Director                                                                                                                     | February      29, 2008 |

----

| Signature                                                | Title    | Date                   |
|----------------------------------------------------------|----------|------------------------|
| /S/ ROBERT E.      LARSONRobert      E. Larson           | Director | February      29, 2008 |
| /S/ GARY P.      MARTINGary      P. Martin               | Director | February      29, 2008 |
| /S/ ISSIE N.      RABINOVITCHIssie      N. Rabinovitch   | Director | February      29, 2008 |
| /S/ THOMAS E.      RANDLETTThomas      E. Randlett       | Director | February      29, 2008 |
| /S/ WILLARD H. SMITH,      JR.Willard      H. Smith, Jr. | Director | February      29, 2008 |

----

EXHIBIT INDEX

| Exhibit      No. | Document                                                                                                                                                                                                                                                                                                                                                                               | Note           |
|------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|----------------|
| 3.1              | Articles      of Amendment and Restatement of Essex dated June 22, 1995, attached as      Exhibit 3.1 to the Company’s Quarterly Report on Form 10-Q for the quarter      ended June 30, 1995, and incorporated herein by reference.                                                                                                                                             | --             |
| 3.2              | Articles      Supplementary of Essex Property Trust, Inc. for the 8.75% Convertible      Preferred Stock, Series 1996A, attached as Exhibit 3.1 to the Company’s      Current Report on Form 8-K, filed August 13, 1996, and incorporated herein      by reference.                                                                                                              | --             |
| 3.3              | First      Amendment to Articles of Amendment and Restatement of Essex Property      Trust, Inc., attached as Exhibit 3.1 to the Company’s 10-Q for the quarter      ended September 30, 1996, and incorporated herein by      reference.                                                                                                                                        | --             |
| 3.4              | Certificate      of Correction to Exhibit 3.2 dated December 20, 1996; attached as Exhibit      3.4 to the Company’s Annual Report on Form 10-K for the year ended      December 31, 1996, and incorporated herein by reference.                                                                                                                                                 | --             |
| 3.5              | Amended      and Restated Bylaws of Essex Property Trust, Inc., with amendments      thereto, dated December 17, 1996 and December 4, 2007.                                                                                                                                                                                                                                            | --             |
| 3.6              | Articles      Supplementary reclassifying 2,000,000 shares of Common Stock as 2,000,000      shares of 7.875% Series B Cumulative Redeemable Preferred Stock, filed      with the State of Maryland on February 10, 1998, attached as Exhibit 3.1      to the Company’s Current Report on Form 8-K, filed March 3, 1998, and      incorporated herein by reference.              | --             |
| 3.7              | Articles      Supplementary reclassifying 500,000 shares of Common Stock as 500,000      shares of 9 1/8% Series C Cumulative Redeemable Preferred Stock, filed      with the State of Maryland on November 25, 1998, attached as Exhibit 3.8      to the Company’s Current Report on Form 10-K for the year ended December      31, 1998, and incorporated herein by reference. | --             |
| 3.8              | Certificate      of Correction to Exhibit 3.2 dated February 12, 1999, attached as Exhibit      3.9 to the Company’s Current Report on Form 10-K for the year ended      December 31, 1998, and incorporated herein by reference.                                                                                                                                                | --             |
| 3.9              | Articles      Supplementary reclassifying 6,617,822 shares of Common Stock as 6,617,822      shares of Series A Junior Participating Preferred Stock, filed with the      State of Maryland on November 13, 1998, attached as Exhibit 4.0 to the      Company’s Annual Report on Form 10-K for the year ended December 31, 1998,      and incorporated herein by reference.      | --             |
| 3.10             | Articles      Supplementary reclassifying 2,000,000 shares of Common Stock as 2,000,000      shares of 9.30% Series D Cumulative Redeemable Preferred Stock, filed with      the State of Maryland on July 30, 1999, attached as Exhibit 3.1 to the      Company’s 10-Q for the quarter ended June 30, 1999 and incorporated herein      by reference.                           | --             |
| 3.11             | Articles      Supplementary reclassifying 2,200,000 shares of Common Stock as 2,200,000      shares of 9.25% Series E Cumulative Redeemable Preferred Stock, filed with      the State of Maryland on September 9, 1999, attached as Exhibit 3.1 to the      Company’s 10-Q for the quarter ended September 30, 1999 and incorporated      herein by reference.                  |   -- |
| 3.12             | Certificate      of Correction to Articles Supplementary reclassifying 2,000,000 shares of      Common Stock as 2,000,000 shares of 9.30% Series D Cumulative Redeemable      Preferred Stock, attached as Exhibit 3.1 to the Company’s Form 10-Q for      the quarter ended March 31, 2000, and incorporated herein by      reference.                                          |  --       |
| 3.13             | Certificate      of Amendment of the Bylaws of Essex Property Trust, Inc. dated February      14, 2000, attached as Exhibit 3.2 to the Company’s Form 10-Q for the      quarter ended March 31, 2000, and incorporated herein by      reference.                                                                                                                                 | --             |
| 3.14             | Articles      Supplementary relating to the 7.8125% Series F Cumulative Redeemable      Preferred Stock, attached as Exhibit 3.1 to the Company's Current Report      on Form 8-K, dated September 19, 2003, and incorporated herein by      reference.                                                                                                                                | --             |

----

| 3.15       | Articles      Supplementary reclassifying 2,000,000 shares of 7.875% Series B Cumulative      Redeemable Preferred Stock as 2,000,000 shares of Series B Cumulative      Redeemable Preferred Stock, filed with the State of Maryland on January      14, 2004, attached as Exhibit 3.16 to the Company’s Form 10-K for the year      ended December 31, 2003, and incorporated herein by    reference. | --       |
|------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|----------|
| 3.16       | Articles      Supplementary reclassifying 2,000,000 shares of 9.30% Series D Cumulative      Redeemable Preferred Stock as 2,000,000 shares of Series D Cumulative      Redeemable Preferred Stock, filed with the State of Maryland on January      14, 2004, attached as Exhibit 3.16 to the Company’s Form 10-K for the year      ended December 31, 2003, and incorporated herein by    reference.  | --       |
| 3.17  | Articles      Supplementary of Essex Property Trust, Inc. reclassifying 5,980,000 shares      of Common Stock as 5,980,000 shares of 4.875% Series G Cumulative      Convertible Preferred Stock, attached as Exhibit 3.1 to the Company’s      Current Report on Form 8-K, Filed July 27, 2006, and incorporated herein      by reference.                                                             | --       |
| 4.1        | Rights      Agreement, dated as of November 11, 1998, between Essex Property Trust,      Inc., and BankBoston, N.A., as Rights Agent, including all exhibits      thereto, attached as Exhibit 1 to the Company’s Registration Statement      filed on Form 8-A dated November 12, 1998, and incorporated herein by      reference.                                                                     | --       |
| 4.2        | Amendment      to Rights Agreement, dated as of December 13, 2000, attached as Exhibit      4.1 to the Company’s Form 10-Q for the quarter ended March 31, 2001 and      incorporated herein by reference.                                                                                                                                                                                              | --       |
| 4.3        | Amendment      to Rights Agreement, dated as of February 28, 2002, attached as Exhibit      4.3 to the Company’s Form 10-K for the year ended December 31, 2001 and      incorporated herein by reference.                                                                                                                                                                                              | --       |
| 4.4        | Form      of 4.875% Series G Cumulative Convertible Preferred Stock Certificate,      attached as Exhibit 4.1 to the Company’s Current Report on Form 8-K, filed      July 27, 2006, and incorporated herein by reference.                                                                                                                                                                              | --       |
| 10.1       | Essex      Property Trust, Inc. 1994 Stock Incentive Plan, (amended and restated),      attached as Exhibit 10.1 to the Company’s Form 10-Q for the quarter ended      June 30, 2000 and incorporated herein by reference.*                                                                                                                                                                             | --       |
| 10.2       | First      Amended and Restated Agreement of Limited Partnership of Essex Portfolio,      L.P. attached as Exhibit 10.1 to the Company’s Quarterly Report on Form      10-Q for the quarter ended September 30, 1997, and incorporated herein by      reference.                                                                                                                                        | --       |
| 10.3       | First      Amendment to the First Amended and Restated Agreement of Limited      Partnership of Essex Portfolio, L.P. dated February 6, 1998, attached as      Exhibit 10.1 to the Company’s Current Report on Form 8-K, filed March 3,      1998, and incorporated herein by reference.                                                                                                                | --       |
| 10.4       | Second      Amendment to the First Amended and Restated Agreement of Limited      Partnership of Essex Portfolio, L.P. dated April 20, 1998, attached as      Exhibit 10.1 to the Company’s Current Report on Form 8-K, filed April 23,      1998, and incorporated herein by reference.                                                                                                                | --       |
| 10.5       | Third      Amendment to the First Amended and Restated Agreement of Limited      Partnership of Essex Portfolio, L.P. dated November 24, 1998, attached as      Exhibit 10.5 to the Company’s Form 10-K for the year ended December 31,      2003, and incorporated herein by reference.                                                                                                                | --       |
| 10.6       | Fourth      Amendment to the First Amended and Restated Agreement of Limited      Partnership of Essex Portfolio, L.P., dated July 28, 1999, attached as      Exhibit 10.1 to the Company’s 10-Q for the quarter ended June 30, 1999 and      incorporated herein by reference.                                                                                                                         | --       |
| 10.7       | Fifth      Amendment to the First Amended and Restated Agreement of Limited      Partnership of Essex Portfolio, L.P., dated September 3, 1999, attached as      Exhibit 10.1 to the Company’s 10-Q for the quarter ended September 30,      1999 and incorporated herein by reference.                                                                                                                 | --       |
| 10.8       | Form      of Essex Property Trust, Inc. 1994 Non-Employee and Director Stock      Incentive Plan, attached as Exhibit 10.3 to the Company’s Registration      Statement on Form S-11 (Registration No. 33-76578), which became effective      on June 6, 1994, and incorporated herein by reference.*                                                                                                   |  -- |
| 10.9       | Form      of Indemnification Agreement between Essex and its directors and officers,      attached as Exhibit 10.7 to the Company’s Registration Statement on Form      S-11 (Registration No. 33-76578), which became effective on June 6, 1994,      and incorporated herein by reference.                                                                                                            | --       |

----

| 10.10 | First      Amendment to Investor Rights Agreement dated July 1, 1996 by and between      George M. Marcus and The Marcus & Millichap Company, attached as      Exhibit 10.3 to the Company’s Current Report on Form 8-K, filed July 16,      1996, and incorporated herein by reference.                                              | --       |
|-------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|----------|
| 10.11 | Sixth      Amendment to the First Amended and Restated Agreement of Limited      Partnership of Essex Portfolio, L.P. dated as of June 28, 2001, attached      as Exhibit 10.1 to the Company’s 10-Q for the quarter ended June 30, 2001      and incorporated herein by reference.*                                                      |  -- |
| 10.12 | Executive      Severance Plan attached as Exhibit 10.31 to the Company’s Form 10-K for      the year ended December 31, 2001 and incorporated herein by      reference.*                                                                                                                                                                  | --       |
| 10.13 | Agreement      between Essex Property Trust, Inc. and George M. Marcus dated March 27,      2003 attached as Exhibit 10.32 to the Company’s Form 10-K for the year      ended December 31, 2002 and incorporated herein by    reference.                                                                                                  | --       |
| 10.14 | Seventh      Amendment to the First Amended and Restated Agreement of Limited      Partnership of Essex Portfolio, L.P. dated as of June 26, 2003, attached      as Exhibit 10.1 to the Company’s 10-Q for the quarter ended June 30, 2003      and incorporated herein by reference.*                                                    |  -- |
| 10.15 | Eighth      Amendment to the First Amended and Restated Agreement of Limited      Partnership of Essex Portfolio, L.P. dated as of September 23, 2003,      attached as Exhibit 10.2 to the Company’s 10-Q for the quarter ended      September 30, 2003 and incorporated herein by reference.                                            | --       |
| 10.16 | Ninth      Amendment to the First Amended and Restated Agreement of Limited      Partnership of Essex Portfolio, L.P. dated as of January 8, 2004, attached      as Exhibit 10.36 to the Company’s 10-K for the year ended December 31,      2003, and incorporated herein by reference.                                                  | --       |
| 10.17 | Tenth      Amendment to the First Amended and Restated Agreement of Limited      Partnership of Essex Portfolio, L.P. dated as of January 8, 2004, attached      as Exhibit 10.37 to the Company’s 10-K for the year ended December 31,      2003, and incorporated herein by reference.                                                  | --       |
| 10.18 | Eleventh      Amendment to the First Amended and Restated Agreement of Limited      Partnership of Essex Portfolio, L.P. dated as of March 29, 2004, attached      as Exhibit 10.1 to the Company’s 10-Q for the quarter ended March 31,      2004, and incorporated herein by reference. *                                               | --       |
| 10.19 | Essex      Property Trust, Inc. 2004 Stock Incentive Plan, attached as Exhibit 10.1      to the Company's Quarterly Report on Form 10-Q for the quarter ended June      30, 2004, and incorporated herein by reference. *                                                                                                                       | --       |
| 10.20 | Indenture,      dated October 28, 2005, by and among Essex Property Trust, Inc., as      Guarantor, Essex Portfolio, L.P., as the Issuer, and Wells Fargo Bank,      N.A., attached as Exhibit 10.1 to the Company’s current report on Form      8-K, filed November 2, 2005, and incorporated herein by      reference.                  | --       |
| 10.21 | Fourth      Amended and Restated Revolving Credit Agreement, dated as of March 24,      2006, among Essex Portfolio L.P., Bank of America and other lenders as      specified therein, attached as Exhibit 10.1 to the Company’s Current      Report on Form 8-K, filed March 31, 2006, and incorporated herein by      reference.        | --       |
| 10.22 | Twelfth      Amendment to the First Amended and Restated Agreement of Limited      Partnership of Essex Portfolio, L.P., dated as of July 26, 2006, attached      as Exhibit 10.1 to the Company’s Current Report on Form 8-K, filed August      1, 2006, and incorporated herein by reference.                                           |  -- |
| 10.23 | Thirteenth      Amendment to the First Amended and Restated Agreement of Limited      Partnership of Essex Portfolio, L.P., dated as of October 26, 2006,      attached as Exhibit 10.2 to the Company’s Current Report on Form 10-Q for      the quarter ended  September 30, 2006, and incorporated herein      by reference. | --       |
| 10.24 | Supplemental      Indenture, dated November 1, 2006, to the Indenture, dated October 28,      2005, by and among Essex Portfolio, L.P., Essex Property Trust, Inc. and      Wells Fargo Bank, N.A.                                                                                                                                              | --       |

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| 10.25 | First      Amendment to Fourth Amended and Restated Revolving Credit Agreement, dated      as of September 28, 2007, among Essex Portfolio L.P., Bank of America and      other lenders as specified therein, attached as Exhibit 10.1 to the      Company’s Quarterly Report on Form 10-Q for the quarter ended September      30, 2007, and incorporated herein by reference.                                                                                                                                                                                                                                                                                                                                                                                                                                       | -- |
|-------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|----|
| 10.26 | Agreement      to Restructure Partnership Between Western-Mountain View II Investors, a      California Limited Partnership and Essex Portfolio, L.P., a California      Limited Partnership and Essex Property Trust, Inc., a Maryland Corporation      and Essex Management Corporation, a California Corporation and General      Partners of the Partnership, attached as Exhibit 10.2 to the Company’s      Quarterly Report on Form 10-Q for the quarter ended September 30, 2007,      and incorporated herein by reference.  (The related agreement to      restructure the Western-San Jose IV Investors Limited Partnership, a      California Limited Partnership, has basically the same terms as the      exhibit and is not being filed, but will be furnished to the SEC upon      request.) | -- |
| 10.27 | Fourteenth      Amendment to the First Amended and Restated Agreement of Limited      Partnership of Essex Portfolio, L.P., dated as of December 26, 2007,      attached as Exhibit 10.2 to the Company’s Current Report on Form 8-K,      filed December 28, 2007, and incorporated herein by      reference.*                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       | -- |
| 10.28 | Form      of Awards Agreement under the Essex Property Trust, Inc. 2007      Outperformance Plan, attached as Exhibit 10.1 to the Company’s Current      Report on Form 8-K, filed December 28, 2007, and incorporated herein by      reference.*                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     | -- |
| 12.1  | Schedule      of Computation of Ratio of Earnings to Fixed Charges and Preferred Stock      Dividends.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      | -- |
| 14.1  | Code      of Business Conduct and Ethics                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    | -- |
| 21.1  | List      of Subsidiaries of Essex Property Trust, Inc.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     | -- |
| 23.1  | Consent      of KPMG LLP, Independent Registered Public AccountingFirm.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     | -- |
| 24.1  | Power      of Attorney (see signature page)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 | -- |
| 31.1  | Certification      of Keith R. Guericke, Principal Executive Officer, pursuant to Section 302      of the Sarbanes-Oxley Act of 2002.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       | -- |
| 31.2  | Certification      of Michael T. Dance, Principal Financial Officer, pursuant to Section 302      of the Sarbanes-Oxley Act of 2002.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        | -- |
| 32.1  | Certification      of Keith R. Guericke, Principal Executive Officer, pursuant to Section 906      of the Sarbanes-Oxley Act of 2002.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       | -- |
| 32.2  | Certification      of Michael T. Dance, Principal Financial Officer, pursuant to Section 906      of the Sarbanes-Oxley Act of 2002.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        | -- |

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