Net Income Per Common Share and Net Income Per Common Unit

12 Months Ended

Dec. 31, 2025

Net Income Per Common Share and Net Income Per Common Unit

Essex Property Trust, Inc.

Basic and diluted income per share was calculated as follows ($ in thousands, except per share amounts):


	Year Ended December 31,
	2025					2024					2023
	Income		Weighted- average Common Shares	Per Common Share Amount		Income		Weighted- average Common Shares	Per Common Share Amount		Income		Weighted- average Common Shares	Per Common Share Amount
Basic:
Net income available to common stockholders	$	669,666	64,379,418	$	10.40	$	741,522	64,228,356	$	11.55	$	405,825	64,252,232	$	6.32
Effect of dilutive securities
Stock options	—		20,041			—		22,878			—		1,153

Diluted:
Net income available to common stockholders	$	669,666	64,399,459	$	10.40	$	741,522	64,251,234	$	11.54	$	405,825	64,253,385	$	6.32

The table above excludes from the calculations of diluted earnings per share weighted average convertible OP Units of 2,270,190, 2,282,675 and 2,261,071, which include vested 2014 Long-Term Incentive Plan Units and 2015 Long-Term Incentive Plan Units, for the years ended December 31, 2025, 2024 and 2023, respectively, because they were anti-dilutive. The related income allocated to these convertible OP Units aggregated $23.6 million, $26.4 million and $14.3 million for the years ended December 31, 2025, 2024 and 2023, respectively.

Stock options of 253,048, 265,378, and 508,276 for the years ended December 31, 2025, 2024 and 2023, respectively, were excluded from the calculation of diluted earnings per share because the assumed proceeds per share of such options plus the average unearned compensation were greater than the average market price of the common stock for those years ended and, therefore, were anti-dilutive.

Essex Portfolio, L.P.

Basic and diluted income per unit was calculated as follows ($ in thousands, except per unit amounts):


	Year Ended December 31,
	2025					2024					2023
	Income		Weighted- average Common Units	Per Common Unit Amount		Income		Weighted- average Common Units	Per Common Unit Amount		Income		Weighted- average Common Units	Per Common Unit Amount
Basic:
Net income available to common unitholders	$	693,315	66,649,608	$	10.40	$	767,936	66,511,030	$	11.55	$	420,109	66,513,303	$	6.32
Effect of dilutive securities
Stock options	—		20,041			—		22,878			—		1,153

Diluted:
Net income available to common unitholders	$	693,315	66,669,649	$	10.40	$	767,936	66,533,908	$	11.54	$	420,109	66,514,456	$	6.32

Stock options of 253,048, 265,378, and 508,276, for the years ended December 31, 2025, 2024 and 2023, respectively, were excluded from the calculation of diluted earnings per unit because the assumed proceeds per unit of these options plus the average unearned compensation were greater than the average market price of the common unit for those years ended and, therefore, were anti-dilutive.