Net Income Per Common Share and Net Income Per Common Unit

3 Months Ended

Mar. 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 for the periods presented ($ in thousands, except per share amounts):


	Three Months Ended March 31, 2025					Three Months Ended March 31, 2024
	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	$	203,110	64,314,899	$	3.16	$	272,731	64,205,086	$	4.25
Effect of Dilutive Securities:
Stock options	—		35,000			—		6,920


Diluted:
Net income available to common stockholders	$	203,110	64,349,899	$	3.16	$	272,731	64,212,006	$	4.25

The table above excludes from the calculations of diluted earnings per share weighted average convertible OP Units of 2,306,953 and 2,258,812, which include vested 2014 Long-Term Incentive Plan Units and 2015 Long-Term Incentive Plan Units, for the three months ended March 31, 2025 and 2024, respectively because they were anti-dilutive. The related income allocated to these convertible OP Units aggregated $7.3 million and $9.6 million for the three months ended March 31, 2025 and 2024, respectively.

Stock options of 177,196 and 395,585 for the three months ended March 31, 2025 and 2024, 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 was calculated as follows for the periods presented ($ in thousands, except per unit amounts):


	Three Months Ended March 31, 2025					Three Months Ended March 31, 2024
	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	$	210,389	66,621,852	$	3.16	$	282,330	66,463,899	$	4.25
Effect of Dilutive Securities:
Stock options	—		35,000			—		6,920


Diluted:
Net income available to common unitholders	$	210,389	66,656,852	$	3.16	$	282,330	66,470,819	$	4.25

Stock options of 177,196 and 395,585 for the three months ended March 31, 2025 and 2024, 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.