Net Income Per Common Share and Net Income Per Common Unit

6 Months Ended

Jun. 30, 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 June 30,
	2025					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	$	221,362	64,385,988	$	3.44	$	92,914	64,209,878	$	1.45
Effect of Dilutive Securities:
Stock options	—		21,625			—		17,773


Diluted:
Net income available to common stockholders	$	221,362	64,407,613	$	3.44	$	92,914	64,227,651	$	1.45


	Six Months Ended June 30,
	2025					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	$	424,472	64,350,640	$	6.60	$	365,645	64,207,482	$	5.69
Effect of Dilutive Securities:
Stock options	—		28,313			—		11,429


Diluted:
Net income available to common stockholders	$	424,472	64,378,953	$	6.59	$	365,645	64,218,911	$	5.69

The table above excludes from the calculations of diluted earnings per share weighted average convertible OP Units of 2,263,171 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 June 30, 2025 and 2024, respectively, and 2,284,941 and 2,258,812 for the six months ended June 30, 2025 and 2024, respectively, because they were anti-dilutive. The related income allocated to these convertible OP Units aggregated $7.8 million and $3.3 million for the three months ended June 30, 2025 and 2024, respectively, and $15.1 million and $12.9 million for the six months ended June 30, 2025 and 2024, respectively.

Stock options of 250,512 and 326,199 for the three months ended June 30, 2025 and 2024, respectively, and 234,727 and 396,519 for the six months ended June 30, 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 June 30,
	2025					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	$	229,143	66,649,159	$	3.44	$	96,184	66,468,691	$	1.45
Effect of Dilutive Securities:
Stock options	—		21,625			—		17,773


Diluted:
Net income available to common unitholders	$	229,143	66,670,784	$	3.44	$	96,184	66,486,464	$	1.45


	Six Months Ended June 30,
	2025					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	$	439,532	66,635,581	$	6.60	$	378,514	66,466,295	$	5.69
Effect of Dilutive Securities:
Stock options	—		28,313			—		11,429


Diluted:
Net income available to common unitholders	$	439,532	66,663,894	$	6.59	$	378,514	66,477,724	$	5.69

Stock options of 250,512 and 326,199 for the three months ended June 30, 2025 and 2024, respectively, and 234,727 and 396,519 for the six months ended June 30, 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.