Net Income Per Common Share and Net Income Per Common Unit

6 Months Ended

Jun. 30, 2024

Net Income Per Common Share and Net Income Per Common Unit

($ in thousands, except share and unit data):

Essex Property Trust, Inc.


	Three Months Ended June 30, 2024					Three Months Ended June 30, 2023
	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	$	92,914	64,209,878	$	1.45	$	99,620	64,182,555	$	1.55
Effect of Dilutive Securities:
Stock options	—		17,773			—		1,120

Diluted:
Net income available to common stockholders	$	92,914	64,227,651	$	1.45	$	99,620	64,183,675	$	1.55


	Six Months Ended June 30, 2024					Six Months Ended June 30, 2023
	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	$	365,645	64,207,482	$	5.69	$	253,152	64,319,783	$	3.94
Effect of Dilutive Securities:
Stock options	—		11,429			—		1,115

Diluted:
Net income available to common stockholders	$	365,645	64,218,911	$	5.69	$	253,152	64,320,898	$	3.94

The table above excludes from the calculations of diluted earnings per share weighted average convertible OP Units of 2,258,812 and 2,260,439, which include vested 2014 Long-Term Incentive Plan Units and 2015 Long-Term Incentive Plan Units, for the three months ended June 30, 2024 and 2023, respectively, and 2,258,812 and 2,263,151 for the six months ended June 30, 2024 and 2023, respectively, because they were anti-dilutive. The related income allocated to these convertible OP Units aggregated $3.3 million and $3.5 million for the three months ended June 30, 2024 and 2023, respectively, and $12.9 million and $8.9 million for the six months ended June 30, 2024 and 2023, respectively.

Stock options of 326,199 and 505,037 for the three months ended June 30, 2024 and 2023, respectively, and 396,519 and 490,970 for the six months ended June 30, 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 the periods ended and, therefore, were anti-dilutive.

Essex Portfolio, L.P.


	Three Months Ended June 30, 2024					Three Months Ended June 30, 2023
	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	$	96,184	66,468,691	$	1.45	$	103,126	66,442,994	$	1.55
Effect of Dilutive Securities:
Stock options	—		17,773			—		1,120

Diluted:
Net income available to common unitholders	$	96,184	66,486,464	$	1.45	$	103,126	66,444,114	$	1.55


	Six Months Ended June 30, 2024					Six Months Ended June 30, 2023
	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	$	378,514	66,466,295	$	5.69	$	262,062	66,582,934	$	3.94
Effect of Dilutive Securities:
Stock options	—		11,429			—		1,115
Diluted:
Net income available to common stockholders	$	378,514	66,477,724	$	5.69	$	262,062	66,584,049	$	3.94

Stock options of 326,199 and 505,037 for the three months ended June 30, 2024 and 2023, respectively, and 396,519 and 490,970 for the six months ended June 30, 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 the periods ended and, therefore, were anti-dilutive.