Net Income Per Common Share and Net Income Per Common Unit

9 Months Ended

Sep. 30, 2024

Net Income Per Common Share and Net Income Per Common Unit

Essex Property Trust, Inc.

Basic and diluted income per share is calculated as follows for the three and nine months ended September 30, 2024 and 2023 ($ in thousands, except share and per share amounts):


	Three Months Ended September 30, 2024					Three Months Ended September 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	$	118,424	64,227,662	$	1.84	$	87,282	64,184,180	$	1.36
Effect of Dilutive Securities:
Stock options	—		43,797			—		1,840

Diluted:
Net income available to common stockholders	$	118,424	64,271,459	$	1.84	$	87,282	64,186,020	$	1.36


	Nine Months Ended September 30, 2024					Nine Months Ended September 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	$	484,069	64,214,258	$	7.54	$	340,434	64,274,085	$	5.30
Effect of Dilutive Securities:
Stock options	—		20,100			—		1,194

Diluted:
Net income available to common stockholders	$	484,069	64,234,358	$	7.54	$	340,434	64,275,279	$	5.30

The table above excludes from the calculations of diluted earnings per share weighted average convertible OP Units of 2,280,379 and 2,259,236, which include vested 2014 Long-Term Incentive Plan Units and 2015 Long-Term Incentive Plan Units, for the three months ended September 30, 2024 and 2023, respectively, and 2,266,054 and 2,261,832 for the nine months ended September 30, 2024 and 2023, respectively, because they were anti-dilutive. The related income allocated to these convertible OP Units aggregated $4.2 million and $3.1 million for the three months ended September 30, 2024 and 2023, respectively, and $17.1 million and $12.0 million for the nine months ended September 30, 2024 and 2023, respectively.

Stock options of 197,474 and 461,873 for the three months ended September 30, 2024 and 2023, respectively, and 327,048 and 501,187 for the nine months ended September 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.

Basic and diluted income per unit is calculated as follows for the three and nine months ended September 30, 2024 and 2023 ($ in thousands, except unit and per unit amounts):


	Three Months Ended September 30, 2024					Three Months Ended September 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	$	122,630	66,508,041	$	1.84	$	90,354	66,443,416	$	1.36
Effect of Dilutive Securities:
Stock options	—		43,797			—		1,840

Diluted:
Net income available to common unitholders	$	122,630	66,551,838	$	1.84	$	90,354	66,445,256	$	1.36


	Nine Months Ended September 30, 2024					Nine Months Ended September 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	$	501,144	66,480,312	$	7.54	$	352,416	66,535,917	$	5.30
Effect of Dilutive Securities:
Stock options	—		20,100			—		1,115
Diluted:
Net income available to common stockholders	$	501,144	66,500,412	$	7.54	$	352,416	66,537,111	$	5.30

Stock options of 197,474 and 461,873 for the three months ended September 30, 2024 and 2023, respectively, and 327,048 and 501,187 for the nine months ended September 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.