Net Income Per Common Share and Net Income Per Common Unit

6 Months Ended

Jun. 30, 2026

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 per share amounts):


	Three Months Ended June 30,
	2026					2025
	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	$	62,462	64,265,835	$	0.97	$	221,362	64,385,988	$	3.44
Effect of Dilutive Securities:
Stock options	—		13,177			—		21,625


Diluted:
Net income available to common stockholders	$	62,462	64,279,012	$	0.97	$	221,362	64,407,613	$	3.44


	Six Months Ended June 30,
	2026					2025
	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	$	168,648	64,359,851	$	2.62	$	424,472	64,350,640	$	6.60
Effect of Dilutive Securities:
Stock options	—		9,943			—		28,313


Diluted:
Net income available to common stockholders	$	168,648	64,369,794	$	2.62	$	424,472	64,378,953	$	6.59

Excluded from the calculations of diluted earnings per share above were weighted average convertible OP Units of 2,183,962 and 2,263,171, which include vested 2014 Long-Term Incentive Plan Units and 2015 Long-Term Incentive Plan Units, for the three months ended June 30, 2026 and 2025, respectively, and 2,205,360 and 2,284,941 for the six months ended June 30, 2026 and 2025, respectively, because they were anti-dilutive. The related income allocated to these convertible OP Units aggregated $2.1 million and $7.8 million for the three months ended June 30, 2026 and 2025, respectively, and $5.8 million and $15.1 million for the six months ended June 30, 2026 and 2025, respectively.

Stock options of 250,512 for both of the three months ended June 30, 2026 and 2025, and 316,883 and 234,727 for the six months ended June 30, 2026 and 2025, 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 ($ in thousands, except per unit amounts):


	Three Months Ended June 30,
	2026					2025
	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	$	64,585	66,449,797	$	0.97	$	229,143	66,649,159	$	3.44
Effect of Dilutive Securities:
Stock options	—		13,177			—		21,625


Diluted:
Net income available to common unitholders	$	64,585	66,462,974	$	0.97	$	229,143	66,670,784	$	3.44


	Six Months Ended June 30,
	2026					2025
	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	$	174,440	66,565,211	$	2.62	$	439,532	66,635,581	$	6.60
Effect of Dilutive Securities:
Stock options	—		9,943			—		28,313


Diluted:
Net income available to common unitholders	$	174,440	66,575,154	$	2.62	$	439,532	66,663,894	$	6.59

Stock options of 250,512 for both of the three months ended June 30, 2026 and 2025, and 316,883 and 234,727 for the six months ended June 30, 2026 and 2025, 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.