Net Income Per Common Share and Net Income Per Common Unit

12 Months Ended

Dec. 31, 2024

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 share and per share amounts):


	Year Ended December 31,
	2024					2023					2022
	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	$	741,522	64,228,356	$	11.55	$	405,825	64,252,232	$	6.32	$	408,315	65,079,764	$	6.27
Effect of dilutive securities
Stock options	—		22,878			—		1,153			—		18,422

Diluted:
Net income available to common stockholders	$	741,522	64,251,234	$	11.54	$	405,825	64,253,385	$	6.32	$	408,315	65,098,186	$	6.27

The table above excludes from the calculations of diluted earnings per share weighted average convertible OP Units of 2,282,675, 2,261,071 and 2,276,341, which include vested 2014 Long-Term Incentive Plan Units and 2015 Long-Term Incentive Plan Units, for the years ended December 31, 2024, 2023 and 2022, respectively, because they were anti-dilutive. The related income allocated to these convertible OP Units aggregated $26.4 million, $14.3 million and $14.3 million for the years ended December 31, 2024, 2023 and 2022, respectively.

Stock options of 265,378, 508,276, and 253,845 for the years ended December 31, 2024, 2023 and 2022, 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 years ended and, therefore, were anti-dilutive.

Essex Portfolio, L.P.

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


	Year Ended December 31,
	2024					2023					2022
	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	$	767,936	66,511,030	$	11.55	$	420,109	66,513,303	$	6.32	$	422,612	67,356,105	$	6.27
Effect of dilutive securities
Stock options	—		22,878			—		1,153			—		18,422

Diluted:
Net income available to common unitholders	$	767,936	66,533,908	$	11.54	$	420,109	66,514,456	$	6.32	$	422,612	67,374,527	$	6.27

Stock options of 265,378, 508,276, and 253,845, for the years ended December 31, 2024, 2023 and 2022, 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 years ended and, therefore, were anti-dilutive.