Net Income Per Common Share and Net Income Per Common Unit

9 Months Ended

Sep. 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 September 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	$	98,069	64,290,878	$	1.53	$	164,621	64,404,008	$	2.56
Effect of Dilutive Securities:
Stock options	—		21,115			—		14,232


Diluted:
Net income available to common stockholders	$	98,069	64,311,993	$	1.52	$	164,621	64,418,240	$	2.56


	Nine Months Ended September 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	$	266,717	64,336,608	$	4.15	$	589,093	64,368,625	$	9.15
Effect of Dilutive Securities:
Stock options	—		13,667			—		23,619


Diluted:
Net income available to common stockholders	$	266,717	64,350,275	$	4.14	$	589,093	64,392,244	$	9.15

Excluded from the calculations of diluted earnings per share above were weighted average convertible OP Units of 2,183,944 and 2,256,415, which include vested 2014 Long-Term Incentive Plan Units and 2015 Long-Term Incentive Plan Units, for the three months ended September 30, 2026 and 2025, respectively, and 2,198,142 and 2,275,327 for the nine months ended September 30, 2026 and 2025, respectively, because they were anti-dilutive. The related income allocated to these convertible OP Units aggregated $3.3 million and $5.8 million for the three months ended September 30, 2026 and 2025, respectively, and $9.1 million and $20.8 million for the nine months ended September 30, 2026 and 2025, respectively.

Stock options of 202,881 and 250,512 for the three months ended September 30, 2026 and 2025, respectively, and 232,135 and 253,903 for the nine months ended September 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 September 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	$	101,399	66,474,822	$	1.53	$	170,388	66,660,423	$	2.56
Effect of Dilutive Securities:
Stock options	—		21,115			—		14,232


Diluted:
Net income available to common unitholders	$	101,399	66,495,937	$	1.52	$	170,388	66,674,655	$	2.56


	Nine Months Ended September 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	$	275,839	66,534,750	$	4.15	$	609,920	66,643,952	$	9.15
Effect of Dilutive Securities:
Stock options	—		13,667			—		23,619


Diluted:
Net income available to common unitholders	$	275,839	66,548,417	$	4.14	$	609,920	66,667,571	$	9.15

Stock options of 202,881 and 250,512 for the three months ended September 30, 2026 and 2025, respectively, and 232,135 and 253,903 for the nine months ended September 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.