Real Estate Investments (Tables)

12 Months Ended

Dec. 31, 2025

Real Estate Investments, Net [Abstract]

The table below summarizes acquisition activity for the year ended December 31, 2025 ($ in millions):


Property Name	Location	Date	Apartment Homes	Contract Price at Pro Rata Share
The Plaza	CA	Jan-25	307	$	161.4
One Hundred Grand	CA	Feb-25	166	105.3		(1)
ROEN Menlo Park	CA	Feb-25	146	78.8
Revere Campbell	CA	May-25	168	118.0		(1)
The Parc at Pruneyard	CA	May-25	252	122.5
ViO	CA	Sep-25	234	100.0
1250 Lakeside	CA	Nov-25	250	143.5

Total acquisitions			1,523	$	829.5

(1)One Hundred Grand and Revere Campbell replaced Highridge, an apartment home community owned by DownREIT entities that are consolidated by the Company, within the DownREIT structures of those entities pursuant to the like-kind exchange rules under Section 1031 of the Internal Revenue Code of 1986, as amended (“Section 1031 Exchange”).

Schedule of Disposition Activity

The table below summarizes disposition activity for the year ended December 31, 2025 ($ in millions):


Property Name	Location	Date	Apartment Homes	Sale Price at Pro Rata Share
Highridge	CA	Feb-25	255	$	127.0	(1)
Essex Skyline	CA	Apr-25	350	239.6		(2)
The Grand	CA	Jul-25	243	97.5		(3)
Fourth & U	CA	Sep-25	171	52.3		(4)
Total dispositions			1,019	$	516.4

(1)Highridge, an apartment home community owned by DownREIT entities that are consolidated by the Company, was replaced by One Hundred Grand and Revere Campbell within the DownREIT structures of those entities pursuant to a Section 1031 Exchange. The Company recognized a $111.0 million gain on sale of real estate and land in the consolidated statements of income. In conjunction with the sale, $69.6 million in debt associated with the property was paid off and the Company recorded a $0.8 million loss on early extinguishment of debt.

(2)The Company recognized a $126.2 million gain on sale of real estate and land in the consolidated statements of income.

(3)The Company recognized a $47.8 million gain on sale of real estate and land in the consolidated statements of income.

(4)The Company recognized a $14.5 million gain on sale of real estate and land in the consolidated statements of income.

Schedule of Co-Investment

The carrying values of the Company’s co-investments as of December 31, 2025 and 2024 were as follows ($ in thousands, except in parenthetical):


	Weighted Average Essex Ownership Percentage (1)	December 31,
		2025		2024
Ownership interest in:
Wesco I, Wesco III, Wesco IV, Wesco V and Wesco VI (2)	54%	$	73,002	$	147,232
BEX IV and 500 Folsom	50%	135,518		146,142
Other (2)	53%	95,851		86,089
Total operating and other co-investments, net		304,371		379,463

Total preferred equity co-investments (3) (includes related party investments of $52.8 million and $48.1 million as of December 31, 2025 and 2024, respectively. See Note 6, Related Party Transactions, for further discussion)		227,342		476,278
Total co-investments, net		$	531,713	$	855,741

(1)Weighted average Company ownership percentages are as of December 31, 2025.

(2)As of December 31, 2025 and 2024, the Company’s investments in Wesco I, Wesco III, Wesco IV, and Expo were classified as a liability of $98.8 million and $79.3 million, respectively, due to distributions received in excess of the Company’s investment. The weighted average Essex ownership percentage excludes the Company’s investments in non-core technology co-investments which are carried at fair value.

(3)Includes one preferred equity investment held by Wesco VII, LLC.

Schedule of Financial Information of Co-Investments

The combined summarized financial information of co-investments was as follows ($ in thousands):


	December 31,
	2025		2024
Combined balance sheets: (1)
Rental properties and real estate under development	$	3,220,390	$	4,094,826
Other assets	194,413		277,420
Total assets	$	3,414,803	$	4,372,246
Debt	$	2,412,106	$	3,001,303
Other liabilities	163,358		235,111
Equity	839,339		1,135,832
Total liabilities and equity	$	3,414,803	$	4,372,246


	Year Ended December 31,
	2025		2024		2023
Combined statements of income: (1)
Property revenues	$	332,330	$	390,850	$	409,910
Property operating expenses	(124,504)		(154,245)		(158,520)
Net operating income	207,826		236,605		251,390
Gain on sale of real estate	10,378		—		—
Interest expense	(104,097)		(142,601)		(154,038)
General and administrative	(17,237)		(21,157)		(20,594)

Depreciation and amortization	(138,729)		(167,875)		(174,028)
Net loss	$	(41,859)	$	(95,028)	$	(97,270)
Company’s share of net income (2)	$	35,464	$	48,206	$	10,561

(1)Includes preferred equity investments held by the Company and excludes investments in technology co-investments.

(2)Includes the Company’s share of equity income from joint ventures and preferred equity investments, gain on sales of co-investments, co-investment promote income and income from early redemption of preferred equity investments. Includes related party income of $5.1 million, $4.6 million and $7.6 million for the years ended December 31, 2025, 2024 and 2023, respectively.