Net Income Per Common Share and Net Income Per Common Unit

9 Months Ended

Sep. 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 September 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	$	164,621	64,404,008	$	2.56	$	118,424	64,227,662	$	1.84
Effect of Dilutive Securities:
Stock options	—		14,232			—		43,797


Diluted:
Net income available to common stockholders	$	164,621	64,418,240	$	2.56	$	118,424	64,271,459	$	1.84


	Nine Months Ended September 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	$	589,093	64,368,625	$	9.15	$	484,069	64,214,258	$	7.54
Effect of Dilutive Securities:
Stock options	—		23,619			—		20,100


Diluted:
Net income available to common stockholders	$	589,093	64,392,244	$	9.15	$	484,069	64,234,358	$	7.54

The table above excludes from the calculations of diluted earnings per share weighted average convertible OP Units of 2,256,415 and 2,280,379, which include vested 2014 Long-Term Incentive Plan Units and 2015 Long-Term Incentive Plan Units, for the three months ended September 30, 2025 and 2024, respectively, and 2,275,327 and 2,266,054 for the nine months ended September 30, 2025 and 2024, respectively, because they were anti-dilutive. The related income allocated to these convertible OP Units aggregated $5.8 million and $4.2 million for the three months ended September 30, 2025 and 2024, respectively, and $20.8 million and $17.1 million for the nine months ended September 30, 2025 and 2024, respectively.

Stock options of 250,512 and 197,474 for the three months ended September 30, 2025 and 2024, respectively, and 253,903 and 327,048 for the nine months ended September 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 September 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	$	170,388	66,660,423	$	2.56	$	122,630	66,508,041	$	1.84
Effect of Dilutive Securities:
Stock options	—		14,232			—		43,797


Diluted:
Net income available to common unitholders	$	170,388	66,674,655	$	2.56	$	122,630	66,551,838	$	1.84


	Nine Months Ended September 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	$	609,920	66,643,952	$	9.15	$	501,144	66,480,312	$	7.54
Effect of Dilutive Securities:
Stock options	—		23,619			—		20,100


Diluted:
Net income available to common unitholders	$	609,920	66,667,571	$	9.15	$	501,144	66,500,412	$	7.54

Stock options of 250,512 and 197,474 for the three months ended September 30, 2025 and 2024, respectively, and 253,903 and 327,048 for the nine months ended September 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.