EX-99.1 2 ef20052550_ex99-1.htm EXHIBIT 99.1
Exhibit 99.1

 SECOND QUARTER 2025  EARNINGS RELEASE &  SUPPLEMENTAL DATA  One Hundred Grand | Foster City, CA 
 

Second Quarter 2025
Earnings Release and Supplemental Data

Table of Contents
  
   
Pages 1 - 9
   
S-1 & S-2
   
S-3
   
S-4
   
S-5
   
S-6
   
S-7
   
S-8
   
S-9
   
S-9.1
   
S-10
   
S-11
   
S-12
   
S-13
   
S-14
   
S-15
   
S-15.1
   
S-16
   
S-17.1 – S-17.4

1100 Park Place Suite 200 San Mateo California 94403 telephone 650 655 7800 facsimile 650 655 7810
www.essex.com



Essex Announces Second Quarter 2025 Results
and Raises Full-Year 2025 Guidance

San Mateo, California—July 29, 2025—Essex Property Trust, Inc. (NYSE: ESS) (the “Company”) announced today its second quarter 2025 earnings results and related business activities.

Net Income, Funds from Operations (“FFO”), and Core FFO per diluted share for the three and six-month periods ended June 30, 2025 are detailed below.

                         
   
Three Months Ended
June 30,
    
%
    
Six Months Ended
June 30,
    
%
  
   
2025
    
2024
    
Change
    
2025
    
2024
    
Change
  
Per Diluted Share
                                    
Net Income
  
$3.44
    
$1.45
    
137.2%

 
$6.59
    
$5.69
    
15.8%

Total FFO
  
$4.03
    
$3.89
    
3.6%
 
$8.00
    
$8.49
    
-5.8%

Core FFO
  
$4.03
    
$3.94
    
2.3%
 
$8.00
    
$7.77
    
3.0%

 
                                    

Second Quarter 2025 Highlights:


 •
Reported Net Income per diluted share for the second quarter of 2025 of $3.44, compared to $1.45 in the second quarter of 2024. The increase was primarily driven by a gain on sale of real estate.


•
Grew Core FFO per diluted share by 2.3% compared to the second quarter of 2024, exceeding the midpoint of the Company’s guidance range by $0.07. The outperformance was primarily driven by higher same-property revenue growth and favorable property taxes in Washington.


•
Achieved same-property revenue and net operating income (“NOI”) growth of 3.2% and 3.3%, respectively, compared to the second quarter of 2024. On a sequential basis, same-property revenue and NOI improved 1.0% and 2.5%, respectively.


•
Acquired two apartment home communities located in Northern California for a total contract price of $240.5 million. Disposed of one apartment home community located in Southern California for a contract price of $239.6 million.


•
Raised full-year 2025 guidance range as detailed in the table below:

Full-Year 2025 Revised Guidance
    
Revised
Range
      
Revised
Midpoint
      
Change at
Midpoint
  
Net Income per diluted share
  
$10.05 - $10.29
    
$10.17
    
+$0.73
  
Core FFO per diluted share
  
$15.80 - $16.02
    
$15.91
    
+$0.10
  
Same-Property Revenues
  
2.90% to 3.40%
    
3.15%
    
+0.15%
  
Same-Property Operating Expenses
  
3.00% to 3.50%
    
3.25%
    
(0.50%)
  
Same-Property NOI
  
2.70% to 3.50%
    
3.10%
    
+0.40%
  

1100 Park Place Suite 200 San Mateo California 94403 telephone 650 655 7800 facsimile 650 655 7810
www.essex.com

Same-Property Operations

Same-property operating results exclude any properties that are not comparable for the periods presented. The table below illustrates the percentage change in same-property revenue on a year-over-year basis for the three and six-month periods ended June 30, 2025 and on a sequential basis for the three-month period ended June 30, 2025:

   
Revenue Change
        
   
Q2 2025
vs. Q2 2024
    
YTD 2025
vs. YTD 2024
    
Q2 2025
vs. Q1 2025
    
% of Total Q2
2025 Revenues
  
Southern California
                        
Los Angeles County
    
2.8%

   
3.5%
   
0.0%
   
18.4%
Orange County
    
3.5%
   
3.6%
   
0.9%
   
9.2%
San Diego County
    
3.3%
   
3.1%
   
1.6%
   
9.3%
Ventura County
    
3.2%
   
4.2%
   
-0.6%
   
4.3%
Total Southern California
    
3.1%
   
3.5%
   
0.5%
   
41.2%
Northern California
      
     
     
     
Santa Clara County
    
3.4%
   
3.4%
   
1.6%
   
20.1%
Alameda County
    
2.8%
   
2.8%
   
1.0%
   
7.3%
San Mateo County
    
4.2%
   
4.7%
   
1.8%
   
4.7%
Contra Costa County
    
1.9%
   
2.5%
   
0.0%
   
5.5%
San Francisco
    
6.5%
   
6.6%
   
0.7%
   
3.1%
Total Northern California
    
3.4%
   
3.5%
   
1.2%
   
40.7%
Seattle Metro
    
2.8%
   
2.5%
   
1.5%
   
18.1%
Same-Property Portfolio
    
3.2%
   
3.3%
   
1.0%
   
100.0%

The table below illustrates the components that drove the change in same-property revenue on a year-over-year basis for the three and six-month periods ended June 30, 2025 and on a sequential basis for the three-month period ended June 30, 2025:

Same-Property Revenue Components
  
Q2 2025
vs. Q2 2024
    
YTD 2025
vs. YTD 2024
    
Q2 2025
vs. Q1 2025
  
Scheduled Rents
    
2.3%
   
2.2%
   
0.9%
Delinquency(1)
    
0.5%
   
0.7%
   
0.1%
Cash Concessions
    
0.0%
   
0.1%
   
-0.1%
Vacancy
    
-0.2%
   
-0.1%
   
-0.1%
Other Income
    
0.6%
   
0.4%
   
0.2%
Q2 2025 Same-Property Revenue Growth
    
3.2%
   
3.3%
   
1.0%

(1)
Same-Property delinquency as a percentage of scheduled rent was 0.5% and 1.0% in the three-month periods ended June 30, 2025 and 2024, respectively, and 0.5% and 1.1% in the six-month periods ended June 30, 2025 and 2024, respectively.

- 2 -
   
Year-Over-Year Change
    
Year-Over-Year Change
  
   
Q2 2025 compared to Q2 2024
    
YTD 2025 compared to YTD 2024
  
   
Revenues
    
Operating
Expenses
    
NOI
    
Revenues
    
Operating
Expenses
    
NOI
  
Southern California
  
3.1%
 
5.5%
 
2.1%
 
3.5%
 
4.8%
 
2.9%
Northern California
  
3.4%

 
5.7%
 
2.5%
 
3.5%
 
3.7%
 
3.4%
Seattle Metro
  
2.8%
 
-9.2%
 
7.8%
 
2.5%
 
-0.8%
 
3.9%
Same-Property Portfolio
  
3.2%
 
2.9%
 
3.3%
 
3.3%
 
3.3%
 
3.3%

   
Sequential Change
  
   
Q2 2025 compared to Q1 2025
  
   
Revenues
    
Operating
Expenses
    
NOI
  
Southern California
  
0.5%
 
0.6%

0.5%
Northern California
  
1.2%
 
-0.7%

2.0%
Seattle Metro
  
1.5%
 
-14.1%

8.5%
Same-Property Portfolio
  
1.0%
 
-2.6%

2.5%

   
Financial Occupancies
  
   
Quarter Ended
  
   
6/30/2025
    
3/31/2025
    
6/30/2024
  
Southern California
  
95.7%
 
95.8%
 
95.8%
Northern California
  
96.6%
 
96.8%
 
96.3%
Seattle Metro
  
96.5%
 
96.3%
 
97.1%
Same-Property Portfolio
  
96.2%
 
96.3%
 
96.2%

Investment Activity

Acquisitions

In May, the Company acquired two apartment home communities comprising 420 apartment homes located in Santa Clara County for a total contract price of $240.5 million.

Dispositions

In April, the Company sold a 350-unit apartment home community located in Santa Ana, CA for a contract price of $239.6 million. The Company recorded a gain on sale of real estate of $126.2 million in the second quarter, which has been excluded from Total and Core FFO.

Subsequent to quarter end, the Company sold a 243-unit apartment home community located in Oakland, CA for a contract price of $97.5 million.

- 3 -
Other Investments

Subsequent to quarter end, the Company formed a new joint venture, Wesco VII LLC (“Wesco VII”), with the State of Wisconsin Investment Board with a total commitment from each partner of $50.0 million to fund new structured finance investments. Essex has a 50% ownership interest in the venture. In July, Wesco VII originated a $42.6 million preferred equity investment for the development of a 480-unit apartment home community located in South San Francisco, CA. The investment has an initial preferred return of 13.5% and is expected to be fully funded by the fourth quarter of 2025.

Balance Sheet and Liquidity

Balance Sheet

In May, the Company obtained a $300.0 million unsecured term loan which is scheduled to mature in May 2028 with two one-year extension options, exercisable at the Company’s option. The loan is priced at SOFR plus 0.850%, with $150.0 million of the loan swapped to an all-in fixed rate of 4.1% through April 2030. The loan includes a 12-month delayed draw feature with $150.0 million in proceeds drawn as of June 30, 2025. The remaining portion will be drawn based on the Company’s future financing needs.

In May, the Company established a commercial paper program which allows the issuance, from time to time, of unsecured commercial paper notes up to a maximum aggregate principal amount outstanding of $750.0 million. The Company’s unsecured line of credit facilities will serve as a liquidity backstop for issuances under the program, and the proceeds will be utilized for general corporate and working capital purposes. As of June 30, 2025, an aggregate of $365.0 million was outstanding under the commercial paper program.

Subsequent to quarter end, the Company increased its unsecured credit facility from $1.2 billion to $1.5 billion and extended the maturity date to January 2030 with two six-month extension options, exercisable at the Company’s option. Pricing on the credit facility is SOFR plus 0.775%.

Common Stock and Liquidity

During the second quarter, the Company did not issue any shares of common stock through its equity distribution program, exercise any of its previously disclosed forward sale agreements, or repurchase any shares through its stock repurchase plan.

As of July 25, 2025, the Company had approximately $1.5 billion in liquidity via available capacity on its unsecured credit facilities, cash and cash equivalents, and marketable securities.

- 4 -
Guidance

For the second quarter of 2025, the Company exceeded the midpoint of the guidance range provided in its first quarter 2025 earnings release for Core FFO by $0.07 per diluted share. The outperformance was primarily driven by higher same-property revenue growth and favorable property taxes in Washington.

The following table provides a reconciliation of second quarter 2025 Core FFO per diluted share to the midpoint of the guidance provided in the Company’s first quarter 2025 earnings release.

   
Per Diluted
Share
  
Guidance midpoint of Core FFO per diluted share for Q2 2025
  
$
3.96
  
Consolidated NOI
    
0.05
  
G&A and Other
    
0.02
  
Core FFO per diluted share for Q2 2025 reported
  
$
4.03
  

2025 Full-Year and Third Quarter Guidance

Per Diluted Share
  
Previous
Range
    
Revised
Range
    
Revised
Midpoint
    
Change at
Midpoint
  
Net Income
    
$9.19 - $9.69
      
$10.05 - $10.29
      
$10.17
      
+$0.73
  
Total FFO
    
$15.56 - $16.06
      
$15.77 - $16.01
      
$15.89
      
+$0.08
  
Core FFO
    
$15.56 - $16.06
      
$15.80 - $16.02
      
$15.91
      
+$0.10
  
Q3 2025 Core FFO
    
N/A
      
$3.89 - $3.99
      
$3.94
      
N/A
  
                                 
Same-Property Portfolio Growth(1)
                                
Revenues
    
2.25% to 3.75%
      
2.90% to 3.40%
      
3.15%
      
+0.15%
  
Operating Expenses
    
3.25% to 4.25%
      
3.00% to 3.50%
      
3.25%
      
(0.50%)
  
Net Operating Income
    
1.40% to 4.00%
      
2.70% to 3.50%
      
3.10%
      
+0.40%
  
2025 Blended Rate Growth
    
2.50% to 3.50%
        2.60% to 3.00%        2.80%      
(0.20%)
  
Excluding Los Angeles County
      N/A        2.80% to 3.20%        3.00%        N/A  

(1)
Reflects guidance on a cash basis. On a GAAP basis, the midpoints of the Company’s same-property revenue and NOI guidance are 3.20% and 3.20%, respectively.

Sequential Components to 2025 Third Quarter Core FFO Guidance Midpoint

   
Per Diluted
Share
  
Core FFO per diluted share for Q2 2025 reported
  
$
4.03
  
Consolidated Revenues
    
0.05
  
Consolidated Operating Expenses
    
(0.11)
Structured Finance Investments
    
(0.02)
G&A and Other
    
(0.01)
Guidance midpoint of Core FFO per diluted share for Q3 2025
  
$
3.94
  

For additional details regarding the Company’s 2025 FFO guidance range, see page S-15 of the supplemental financial information.

- 5 -
Conference Call with Management

The Company will host an earnings conference call with management to discuss its quarterly results on Wednesday, July 30, 2025 at 9 a.m. PT (12 p.m. ET), which will be broadcast live via the Internet at www.essex.com, and accessible via phone by dialing toll-free, (877) 407-0784, or toll/international, (201) 689-8560. No passcode is necessary.

A rebroadcast of the live call will be available online for 30 days and digitally for 7 days. To access the replay online, go to www.essex.com and select the second quarter 2025 earnings link. To access the replay, dial (844) 512-2921 using the replay pin number 13754643. If you are unable to access the information via the Company’s website, please contact the Investor Relations Department at investors@essex.com or calling (650) 655-7800.

Corporate Profile

Essex Property Trust, Inc., an S&P 500 company, is a fully integrated real estate investment trust (REIT) that acquires, develops, redevelops, and manages multifamily residential properties in selected West Coast markets. Essex currently has ownership interests in 258 apartment communities comprising over 62,000 apartment homes with an additional property in active development. Additional information about the Company can be found on the Company’s website at www.essex.com.

This press release and accompanying supplemental financial information has been furnished to the Securities and Exchange Commission electronically on Form 8-K and can be accessed from the Company’s website at www.essex.com. If you are unable to obtain the information via the Web, please contact the Investor Relations Department at (650) 655-7800.

FFO Reconciliation

FFO, as defined by the National Association of Real Estate Investment Trusts (“Nareit”), is generally considered by industry analysts as an appropriate measure of performance of an equity REIT. Generally, FFO adjusts the net income of equity REITs for non-cash charges such as depreciation and amortization of rental properties, impairment charges, gains on sales of real estate and extraordinary items. Management considers FFO and FFO which excludes non-core items, which is referred to as “Core FFO,” to be useful supplemental operating performance measures of an equity REIT because, together with net income and cash flows, FFO and Core FFO provide investors with additional bases to evaluate the operating performance and ability of a REIT to incur and service debt and to fund acquisitions and other capital expenditures and to pay dividends. By excluding gains or losses related to sales of depreciated operating properties and land and excluding real estate depreciation (which can vary among owners of identical assets in similar condition based on historical cost accounting and useful life estimates), FFO can help investors compare the operating performance of a real estate company between periods or as compared to different companies. By further adjusting for items that are not considered part of the Company’s core business operations, Core FFO allows investors to compare the core operating performance of the Company to its performance in prior reporting periods and to the operating performance of other real estate companies without the effect of items that by their nature are not comparable from period to period and tend to obscure the Company’s actual operating results. FFO and Core FFO do not represent net income or cash flows from operations as defined by U.S. generally accepted accounting principles (“GAAP”) and are not intended to indicate whether cash flows will be sufficient to fund cash needs. These measures should not be considered as alternatives to net income as an indicator of the REIT's operating performance or to cash flows as a measure of liquidity. FFO and Core FFO do not measure whether cash flow is sufficient to fund all cash needs including principal amortization, capital improvements and distributions to stockholders. FFO and Core FFO also do not represent cash flows generated from operating, investing or financing activities as defined under GAAP. Management has consistently applied the Nareit definition of FFO to all periods presented. However, there is judgment involved and other REITs’ calculation of FFO may vary from the Nareit definition for this measure, and thus their disclosures of FFO may not be comparable to the Company’s calculation.

- 6 -
The following table sets forth the Company’s calculation of FFO and Core FFO per diluted share for the three and six-month periods ended June 30, 2025 and 2024 (dollars in thousands, except for share and per share amounts):

   
Three Months Ended
June 30,
    
Six Months Ended
June 30,
  
   
2025
    
2024
    
2025
    
2024
  
Net income available to common stockholders
  
$
221,362
    
$
92,914
    
$
424,472
    
$
365,645
  
Adjustments:
                                
Depreciation and amortization
    
151,501
      
145,613
      
302,788
      
285,346
  
Gains not included in FFO
    
(126,174
)
    
-
      
(237,534
)
    
(138,326
)
Impairment loss from unconsolidated co-investments
    
-
      
-
      
-
      
3,726
  
Depreciation and amortization from unconsolidated co-investments
    
14,406
      
17,380
      
28,784
      
35,850
  
Noncontrolling interest related to Operating Partnership units
    
7,781
      
3,270
      
15,060
      
12,869
  
Depreciation attributable to third party ownership and other
    
(38
)
    
(390
)
    
(84
)
    
(779
)
FFO attributable to common stockholders and unitholders
  
$
268,838
    
$
258,787
    
$
533,486
    
$
564,331
  
FFO per share – diluted
  
$
4.03
    
$
3.89
    
$
8.00
    
$
8.49
  
Expensed acquisition and investment related costs
  
$
-
    
$
-
    
$
-
    
$
68
  
Tax benefit on unconsolidated technology co-investments
    
(232
)
    
(807
)
    
(395
)
    
(758
)
Realized and unrealized gains on marketable securities, net
    
(2,492
)
    
(1,597
)
    
(2,401
)
    
(4,948
)
Provision for credit losses
    
14
      
19
      
11
      
66
  
Equity loss (income) from unconsolidated technology co-investments
    
104
      
143
      
(1,612
)
    
(5,727
)
Loss on early retirement of debt
    
-
      
-
      
762
      
-
  
Co-investment promote income
    
-
      
-
      
-
      
(1,531
)
General and administrative and other, net (1)
    
2,661
      
5,906
      
3,937
      
8,447
  
Insurance reimbursements, legal settlements, and other, net (2)
    
(339
)
    
(486
)
    
(700
)
    
(43,300
)
Core FFO attributable to common stockholders and unitholders
  
$
268,554
    
$
261,965
    
$
533,088
    
$
516,648
  
Core FFO per share – diluted
  
$
4.03
    
$
3.94
    
$
8.00
    
$
7.77
  
Weighted average number of shares outstanding diluted (3)
    
66,670,784
      
66,486,464
      
66,663,894
      
66,477,724
  

(1)
Includes political advocacy costs of $0.3 million and $0.4 million for the three and six months ended June 30, 2025, respectively, and $5.3 million and $7.2 million for the three and six months ended June 30, 2024, respectively.
(2)
There were no material gains from legal settlements during the three and six months ended June 30, 2025 and the three months ended June 30, 2024. During the six months ended June 30, 2024, the Company settled two lawsuits related to construction defects at two communities and received cash recoveries of $42.5 million. The Company determined that all uncertainties were resolved upon receipt of cash and recorded a gain which was excluded from Core FFO.
(3)
Assumes conversion of all outstanding limited partnership units in Essex Portfolio, L.P. (the “Operating Partnership”) into shares of the Company’s common stock and excludes DownREIT limited partnership units.
 
- 7 -
Net Operating Income (“NOI”) and Same-Property NOI Reconciliations

NOI and Same-Property NOI are considered by management to be important supplemental performance measures to earnings from operations included in the Company’s consolidated statements of income. The presentation of same-property NOI assists with the presentation of the Company’s operations prior to the allocation of depreciation and any corporate-level or financing-related costs. NOI reflects the operating performance of a community and allows for an easy comparison of the operating performance of individual communities or groups of communities. In addition, because prospective buyers of real estate have different financing and overhead structures, with varying marginal impacts to overhead by acquiring real estate, NOI is considered by many in the real estate industry to be a useful measure for determining the value of a real estate asset or group of assets. The Company defines same-property NOI as same-property revenues less same-property operating expenses, including property taxes. Please see the reconciliation of earnings from operations to NOI and same-property NOI, which in the table below is the NOI for stabilized properties consolidated by the Company for the periods presented (dollars in thousands):

 
Three Months Ended
June 30,

Six Months Ended
June 30,
  
   
2025
    
2024
    
2025
    
2024
  
Earnings from operations
  
$
279,700
    
$
137,450
    
$
536,781
    
$
269,809
  
Adjustments:
                                
Corporate-level property management expenses
    
12,220
      
11,622
      
24,552
      
22,721
  
Depreciation and amortization
    
151,501
      
145,613
      
302,788
      
285,346
  
Management and other fees from affiliates
    
(2,223
)
    
(2,573
)
    
(4,717
)
    
(5,286
)
General and administrative
    
17,157
      
21,136
      
33,449
      
38,307
  
Expensed acquisition and investment related costs
    
-
      
-
      
-
      
68
  
Gain on sale of real estate and land
    
(126,174
)
    
-
      
(237,204
)
    
-
  
NOI
    
332,181
      
313,248
      
655,649
      
610,965
  
Less: Non-same property NOI
    
(41,325
)
    
(31,667
)
    
(81,130
)
    
(54,858
)
Same-Property NOI
  
$
290,856
    
$
281,581
    
$
574,519
    
$
556,107
  

Safe Harbor Statement Under The Private Litigation Reform Act of 1995:

This press release includes “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements are statements which are not historical facts, including statements regarding the Company's expectations, estimates, assumptions, hopes, intentions, beliefs and strategies regarding the future. Words such as “expects,” “assumes,” “anticipates,” “may,” “will,” “intends,” “plans,” “projects,” “believes,” “seeks,” “future,” “estimates,” and variations of such words and similar expressions are intended to identify such forward-looking statements. Such forward-looking statements include, among other things, statements regarding the Company’s third quarter and full-year 2025 guidance (including net income, Total FFO and Core FFO, same-property growth and related assumptions) and anticipated yield on certain investments. While the Company's management believes the assumptions underlying its forward-looking statements are reasonable, such forward-looking statements involve known and unknown risks, uncertainties and other factors, many of which are beyond the Company’s control, which could cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. The Company cannot assure the future results or outcome of the matters described in these statements; rather, these statements merely reflect the Company’s current expectations of the approximate outcomes of the matters discussed.

- 8 -
Factors that might cause the Company’s actual results, performance or achievements to differ materially from those expressed or implied by these forward-looking statements include, but are not limited to, the following:   assumptions related to our third quarter and full-year 2025 guidance; occupancy rates and rental demand may be adversely affected by competition and local economic and market conditions; there may be increased interest rates, inflation, escalated operating costs and possible recessionary impacts; tariffs, geopolitical tensions and regional conflicts, and the related impacts on macroeconomic conditions, including, among other things, interest rates and inflation; the terms of any refinancing may not be as favorable as the terms of existing indebtedness; the Company’s inability to maintain its investment grade credit rating with the rating agencies; the Company may be unsuccessful in the management of its relationships with its co-investment partners; the Company may fail to achieve its business objectives; time of actual completion and/or stabilization of development and redevelopment projects; estimates of future income from an acquired property may prove to be inaccurate; future cash flows may be inadequate to meet operating requirements and/or may be insufficient to provide for dividend payments in accordance with REIT requirements; changes in laws or regulations and the anticipated or actual impact of future changes in laws or regulations; unexpected difficulties in leasing of future development projects; volatility in financial and securities markets; the Company’s failure to successfully operate acquired properties; unforeseen consequences from cyber-intrusion; government approvals, actions and initiatives, including the need for compliance with environmental requirements; and those further risks, special considerations, and other factors referred to in the Company’s annual report on Form 10-K for the year ended December 31, 2024, quarterly reports on Form 10-Q, and those risk factors and special considerations set forth in the Company's other filings with the SEC which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. All forward-looking statements are made as of the date hereof, the Company assumes no obligation to update or supplement this information for any reason, and therefore, they may not represent the Company’s estimates and assumptions after the date of this press release.

Definitions and Reconciliations

Non-GAAP financial measures and certain other capitalized terms, as used in this earnings release and supplemental financial information, are defined and further explained on pages S-17.1 through S-17.4, "Reconciliations of Non-GAAP Financial Measures and Other Terms," of the accompanying supplemental financial information. The supplemental financial information is available on the Company's website at www.essex.com.

Contact Information
Loren Rainey
Sr. Director, Investor Relations
(650) 655-7800
lrainey@essex.com

- 9 -
ESSEX  PROPERTY  TRUST, INC.

Consolidated Operating Results
(Dollars in thousands, except share and per share amounts)
  
Three Months Ended
June 30,

Six Months Ended
June 30,
 
2025

2024

2025
    
2024
                         
Revenues:
                        
Rental and other property
  
$
467,610
    
$
439,782
    
$
929,699
    
$
863,997
  
Management and other fees from affiliates
    
2,223
      
2,573
      
4,717
      
5,286
  
     
469,833
      
442,355
      
934,416
      
869,283
  
                                 
Expenses:
                                
Property operating
    
135,429
      
126,534
      
274,050
      
253,032
  
Corporate-level property management expenses
    
12,220
      
11,622
      
24,552
      
22,721
  
Depreciation and amortization
    
151,501
      
145,613
      
302,788
      
285,346
  
General and administrative
    
17,157
      
21,136
      
33,449
      
38,307
  
Expensed acquisition and investment related costs
    
-
      
-
      
-
      
68
  
     
316,307
      
304,905
      
634,839
      
599,474
  
Gain on sale of real estate and land
    
126,174
      
-
      
237,204
      
-
  
Earnings from operations
    
279,700
      
137,450
      
536,781
      
269,809
  
Interest expense, net (1)
    
(64,191
)
    
(58,491
)
    
(125,723
)
    
(113,628
)
Interest and other income
    
6,808
      
9,568
      
11,097
      
66,843
  
Equity income from co-investments
    
8,977
      
9,652
      
22,186
      
22,018
  
Tax benefit on unconsolidated technology co-investments
    
232
      
807
      
395
      
758
  
Loss on early retirement of debt
    
-
      
-
      
(762
)
    
-
  
Gain on remeasurement of co-investment
    
-
      
-
      
330
      
138,326
  
Net income
    
231,526
      
98,986
      
444,304
      
384,126
  
Net income attributable to noncontrolling interest
    
(10,164
)
    
(6,072
)
    
(19,832
)
    
(18,481
)
Net income available to common stockholders
  
$
221,362
    
$
92,914
    
$
424,472
    
$
365,645
  
Net income per share - basic
  
$
3.44
    
$
1.45
    
$
6.60
    
$
5.69
  
Shares used in income per share - basic
    
64,385,988
      
64,209,878
      
64,350,640
      
64,207,482
  
Net income per share - diluted
  
$
3.44
    
$
1.45
    
$
6.59
    
$
5.69
  
Shares used in income per share - diluted
    
64,407,613
      
64,227,651
      
64,378,953
      
64,218,911
  

(1)
Refer to page S-17.2, the section titled "Interest Expense, Net" for additional information.


See Company's Form 10-K and Form 10-Qs filed with the SEC for additional information

S-1
ESSEX  PROPERTY  TRUST, INC.

Consolidated Operating Results - Selected Line Item Detail
(Dollars in thousands)
    
Three Months Ended
June 30,

Six Months Ended
June 30,
  
 
2025
    
2024

2025
    
2024
                         
Rental and other property
                        
Rental income
  
$
460,686
    
$
432,141
    
$
916,546
    
$
849,377
  
Other property
    
6,924
      
7,641
      
13,153
      
14,620
  
Rental and other property
  
$
467,610
    
$
439,782
    
$
929,699
    
$
863,997
  
                                 
Property operating expenses
                                
Real estate taxes
  
$
49,035
    
$
47,312
    
$
101,629
    
$
94,232
  
Administrative
    
14,932
      
15,290
      
30,192
      
29,099
  
Maintenance and repairs
    
16,130
      
13,940
      
30,872
      
28,790
  
Personnel costs
    
26,744
      
24,536
      
52,995
      
48,960
  
Utilities
    
28,588
      
25,456
      
58,362
      
51,951
  
Property operating expenses
  
$
135,429
    
$
126,534
    
$
274,050
    
$
253,032
  
                                 
Interest and other income
                                
Marketable securities and other income
  
$
3,976
    
$
7,510
    
$
7,992
    
$
18,685
  
Realized and unrealized gains on marketable securities, net
    
2,492
      
1,597
      
2,401
      
4,948
  
Provision for credit losses
    
(14
)
    
(19
)
    
(11
)
    
(66
)
Insurance reimbursements, legal settlements, and other, net
    
354
      
480
      
715
      
43,276
  
Interest and other income
  
$
6,808
    
$
9,568
    
$
11,097
    
$
66,843
  
                                 
Equity income from co-investments
                                
Equity loss from co-investments
  
$
(221
)
  
$
(2,322
)
  
$
(523
)
  
$
(5,874
)
Income from preferred equity investments
    
9,317
      
12,111
      
21,112
      
24,336
  
Equity (loss) income from unconsolidated technology co-investments
    
(104
)
    
(143
)
    
1,612
      
5,727
  
Insurance reimbursements, legal settlements, and other, net
    
(15
)
    
6
      
(15
)
    
24
  
Impairment loss from unconsolidated co-investment
    
-
      
-
      
-
      
(3,726
)
Co-investment promote income
    
-
      
-
      
-
      
1,531
  
Equity income from co-investments
  
$
8,977
    
$
9,652
    
$
22,186
    
$
22,018
  
                                 
Noncontrolling interest
                                
Limited partners of Essex Portfolio, L.P.
  
$
7,781
    
$
3,270
    
$
15,060
    
$
12,869
  
DownREIT limited partners' distributions
    
2,339
      
2,291
      
4,678
      
4,583
  
Third-party ownership interest
    
44
      
511
      
94
      
1,029
  
Noncontrolling interest
  
$
10,164
    
$
6,072
    
$
19,832
    
$
18,481
  


See Company's Form 10-K and Form 10-Qs filed with the SEC for additional information

S-2
ESSEX  PROPERTY  TRUST, INC.

Consolidated Funds from Operations (1)
(Dollars in thousands, except share and per share amounts and in footnotes)
    
Three Months Ended
June 30,

  

Six Months Ended
June 30,

    
   
2025
    
2024

% Change

2025
    
2024

% Change
                                     
Funds from operations attributable to common stockholders and unitholders (FFO)
                                    
Net income available to common stockholders
  
$
221,362
    
$
92,914
          
$
424,472
    
$
365,645
        
Adjustments:
                                            
Depreciation and amortization
    
151,501
      
145,613
            
302,788
      
285,346
        
Gains not included in FFO
    
(126,174
)
    
-
            
(237,534
)
    
(138,326
)
      
Impairment loss from unconsolidated co-investments
    
-
      
-
            
-
      
3,726
        
Depreciation and amortization from unconsolidated co-investments
    
14,406
      
17,380
            
28,784
      
35,850
        
Noncontrolling interest related to Operating Partnership units
    
7,781
      
3,270
            
15,060
      
12,869
        
Depreciation attributable to third party ownership and other
    
(38
)
    
(390
)
          
(84
)
    
(779
)
      
Funds from operations attributable to common stockholders and unitholders
  
$
268,838
    
$
258,787
          
$
533,486
    
$
564,331
        
FFO per share-diluted
  
$
4.03
    
$
3.89
    
3.6%

 
$
8.00
    
$
8.49
    
-5.8%

                                             
Components of the change in FFO
                                            
Non-core items:
                                            
Expensed acquisition and investment related costs
  
$
-
    
$
-
          
$
-
    
$
68
        
Tax benefit on unconsolidated technology co-investments
    
(232
)
    
(807
)
          
(395
)
    
(758
)
      
Realized and unrealized gains on marketable securities, net
    
(2,492
)
    
(1,597
)
          
(2,401
)
    
(4,948
)
      
Provision for credit losses
    
14
      
19
            
11
      
66
        
Equity loss (income) from unconsolidated technology co-investments
    
104
      
143
            
(1,612
)
    
(5,727
)
      
Loss on early retirement of debt
    
-
      
-
            
762
      
-
        
Co-investment promote income
    
-
      
-
            
-
      
(1,531
)
      
General and administrative and other, net (2)
    
2,661
      
5,906
            
3,937
      
8,447
        
Insurance reimbursements, legal settlements, and other, net (3)
    
(339
)
    
(486
)
          
(700
)
    
(43,300
)
      
Core funds from operations attributable to common stockholders and unitholders
  
$
268,554
    
$
261,965
          
$
533,088
    
$
516,648
        
Core FFO per share-diluted
  
$
4.03
    
$
3.94
    
2.3%

 
$
8.00
    
$
7.77
    
3.0%

Weighted average number of shares outstanding diluted (4)
    
66,670,784
      
66,486,464
            
66,663,894
      
66,477,724
        

(1)
Refer to page S-17.2, the section titled "Funds from Operations ("FFO") and Core FFO" for additional information on the Company's definition and use of FFO and Core FFO.
(2)
Includes political advocacy costs of $0.3 million and $0.4 million for the three and six months ended June 30, 2025, respectively, and $5.3 million and $7.2 million for the three and six months ended June 30, 2024, respectively.
(3)
There were no material gains from legal settlements during the three and six months ended June 30, 2025 and the three months ended June 30, 2024. During the six months ended June 30, 2024, the Company settled two lawsuits related to construction defects at two communities and received cash recoveries of $42.5 million. The Company determined that all uncertainties were resolved upon receipt of cash and recorded a gain which was excluded from Core FFO.
(4)
Assumes conversion of all outstanding limited partnership units in the Operating Partnership into shares of the Company's common stock and excludes DownREIT limited partnership units.
 
 
See Company's Form 10-K and Form 10-Qs filed with the SEC for additional information

S-3
ESSEX  PROPERTY  TRUST, INC.

Consolidated Balance Sheets
(Dollars in thousands)
   
June 30, 2025
    
December 31, 2024
  
Real estate investments:
            
Land and land improvements
  
$
3,320,696
    
$
3,246,789
  
Buildings and improvements
    
14,652,727
      
14,342,729
  
     
17,973,423
      
17,589,518
  
Less: accumulated depreciation
    
(6,263,819
)
    
(6,150,618
)
     
11,709,604
      
11,438,900
  
Real estate under development
    
105,591
      
52,682
  
Co-investments
    
895,821
      
935,014
  
Real estate held for sale
    
47,653
      
-
  
     
12,758,669
      
12,426,596
  
Cash and cash equivalents, including restricted cash
    
67,884
      
75,846
  
Marketable securities
    
82,162
      
69,794
  
Notes and other receivables
    
138,096
      
206,706
  
Operating lease right-of-use assets
    
52,519
      
51,556
  
Prepaid expenses and other assets
    
82,160
      
96,861
  
Total assets
  
$
13,181,490
    
$
12,927,359
  
                 
Unsecured debt, net
  
$
5,519,922
    
$
5,473,788
  
Mortgage notes payable, net
    
874,532
      
989,884
  
Lines of credit and commercial paper
    
365,000
      
137,945
  
Distributions in excess of investments in co-investments
    
89,389
      
79,273
  
Operating lease liabilities
    
53,266
      
52,473
  
Other liabilities
    
440,545
      
442,757
  
Total liabilities
    
7,342,654
      
7,176,120
  
Redeemable noncontrolling interest
    
32,922
      
30,849
  
Equity:
                
Common stock
    
6
      
6
  
Additional paid-in capital
    
6,685,714
      
6,668,047
  
Distributions in excess of accumulated earnings
    
(1,062,146
)
    
(1,155,662
)
Accumulated other comprehensive income, net
    
11,675
      
24,655
  
Total stockholders' equity
    
5,635,249
      
5,537,046
  
Noncontrolling interest
    
170,665
      
183,344
  
Total equity
    
5,805,914
      
5,720,390
  
Total liabilities and equity
  
$
13,181,490
    
$
12,927,359
  


See Company's Form 10-K and Form 10-Qs filed with the SEC for additional information

S-4
ESSEX  PROPERTY  TRUST, INC.

Debt Summary - June 30, 2025
(Dollars in thousands, except in footnotes)


    
Scheduled principal payments, unamortized premiums (discounts) and (debt issuance costs) are as follows - excludes lines of credit and commercial paper:
  

 
 


Unsecured
    
Secured
    
Total
    
Weighted Average Interest Rate
    
Percentage of Total Debt
  
         
Weighted Average
   
Balance Outstanding
    
Interest Rate
    
Maturity
in Years
 
Unsecured Debt, net
                                                    
Bonds public - fixed rate
  
$
5,100,000
      
3.6
%
    
7.4
    
2025
  
$
-
    
$
98,110
    
$
98,110
      
3.3
%
    
1.5
%
Term loan (1)
    
450,000
      
4.2
%
    
3.2
    
2026
    
450,000
      
194,405
      
644,405
      
3.6
%
    
10.0
%
Unamortized discounts and debt
                          
2027
   
650,000
      
84,397
      
734,397
      
3.9
%
    
11.4
%
issuance costs, net
    
(30,078
)
    
-
      
-
    
2028
    
450,000
      
68,332
      
518,332
      
2.2
%
    
8.1
%
Total unsecured debt, net
    
5,519,922
      
3.6
%
    
7.0
    
2029
    
500,000
      
1,456
      
501,456
      
4.1
%
    
7.8
%
Mortgage Notes Payable, net
                          
2030
    
700,000
      
1,592
      
701,592
      
3.4
%
    
10.9
%
Fixed rate - secured
    
560,880
      
4.4
%
    
5.0
    
2031
    
600,000
      
1,740
      
601,740
      
2.3
%
    
9.4
%
Variable rate - secured (2)
    
316,301
      
3.8
%
    
9.0
    
2032
    
650,000
      
1,903
      
651,903
      
2.6
%
    
10.2
%
Unamortized premiums and debt
                          
2033
    
-
      
330,126
      
330,126
      
5.0
%
    
5.1
%
issuance costs, net
    
(2,649
)
    
-
      
-
    
2034
    
550,000
      
2,275
      
552,275
      
5.5
%
    
8.6
%
Total mortgage notes payable, net
    
874,532
      
4.2
%
    
6.4
    
2035
    
400,000
      
2,487
      
402,487
      
5.5
%
    
6.3
%
Unsecured Lines of Credit and Commercial Paper
                          
Thereafter
    
600,000
      
90,358
      
690,358
      
3.6
%
    
10.7
%
Line of credit (3)
    
-
      
5.3
%
    
N/A
    
Subtotal
    
5,550,000
      
877,181
      
6,427,181
      
3.7
%
    
100.0
%
Line of credit (4)
    
-
      
5.3
%
    
N/A
    
Debt Issuance Costs
    
(29,117
)
    
(2,293
)
    
(31,410
)
    
-
      
-
  
Commercial paper (5)
    
365,000
      
4.6
%
    
N/A
    
(Discounts)/Premiums
    
(961
)
    
(356
)
    
(1,317
)
    
-
      
-
  
Total lines of credit and commercial paper
    
365,000
      
4.6
%
    
N/A
    
Total
  
$
5,519,922
    
$
874,532
    
$
6,394,454
      
3.7
%
    
100.0
%
Total debt, net
  
$
6,759,454
      
3.7
%
    
6.6
                                              
                                                                     

Capitalized interest for the three and six months ended June 30, 2025 was approximately $0.7 million and $1.4 million, respectively.

(1)
In May 2025, the Company obtained a new $300.0 million unsecured term loan priced at SOFR plus 0.85% with a 12-month delayed draw feature. The term loan matures in May 2028 with two 12-month extension options, exercisable at the Company's option. In April 2025, the Company entered into floating-to-fixed interest rate swaps to fix the interest rate for $150.0 million of the new term loan facility to an all-in fixed rate of 4.1% through April 2030. The Company also has a $300.0 million unsecured term loan outstanding with a variable interest rate of Adjusted SOFR plus 0.85% which matures in October 2025 with two remaining 12-month extension options, exercisable at the Company’s option. This loan has been swapped to an all-in fixed rate of 4.2% through October 2026.
(2)
$220.4 million of variable rate debt is tax exempt to the note holders. $47.5 million of SOFR-based variable rate debt is swapped at a fixed rate of 2.83% through March 2026.
(3)
In July 2025, the Company amended its revolving credit facility increasing the borrowing capacity to $1.5 billion from the existing $1.2 billion and extended its maturity from January 2029 to January 2030 with two 6-month extension options, exercisable at the Company's option. The underlying interest rate on this new line of credit facility is SOFR plus 0.775% which is based on a tiered rate structure tied to the Company's long-term unsecured credit ratings.
(4)
The unsecured line of credit facility has a capacity of $75.0 million and a scheduled maturity date in July 2026. The underlying interest rate on this line is Adjusted SOFR plus 0.775%, which is based on a tiered rate structure tied to the Company's corporate ratings.
(5)
In May 2025, the Company entered into a commercial paper program under which it can issue unsecured short-term notes, up to $750 million, which are backstopped by and reduce the borrowing capacity of the Company's unsecured line of credit facilities.

See Company's Form 10-K and Form 10-Qs filed with the SEC for additional information

S-5
ESSEX  PROPERTY  TRUST, INC.

Capitalization Data, Public Bond Covenants, Credit Ratings and Selected Credit Ratios - June 30, 2025
(Dollars and shares in thousands, except per share amounts)

Capitalization Data
        
Public Bond Covenants (1)
  
Actual
  
Requirement
Total debt, net
  
$
6,759,454
                
Common stock and potentially dilutive securities
          
Debt to Total Assets:
  
35%

< 65%
Common stock outstanding
    
64,404
          
   
Limited partnership units (1)
    
2,256
    
Secured Debt to Total Assets:
  
4%
< 40%
Options-treasury method
    
22
          
   
Total shares of common stock and potentially dilutive securities
    
66,682
    
Interest Coverage:
  
524%
> 150%
                 
      
Common stock price per share as of June 30, 2025
  
$
283.40
    
Unsecured Debt Ratio (2):
  
288%
> 150%
                          
Total equity capitalization
  
$
18,897,679
    
Selected Credit Ratios (3)
  
Actual
    
                          
Total market capitalization
  
$
25,657,133
    
Net Indebtedness Divided by Adjusted EBITDAre, normalized and annualized:
    
5.5
     
           
 

   
Ratio of debt to total market capitalization
    
26.3
%
  
Unencumbered NOI to Adjusted Total NOI:
  
93%
      
                          
Credit Ratings
              

 


 
Rating Agency
Rating
Outlook
                        
Moody's
Baa1
Stable
          
(1)    Refer to page S-17.4 for additional information on the Company's Public Bond Covenants.
Standard & Poor's
BBB+
Stable
          
(2)    Unsecured Debt Ratio is unsecured assets (excluding investments in co-investments) divided by unsecured indebtedness.
(1)    Assumes conversion of all outstanding limited partnership units in the Operating Partnership into shares of the Company's common stock.
    
(3)    Refer to pages S-17.1 to S-17.4, the section titled "Reconciliations of Non-GAAP Financial Measures and Other Terms" for additional information on the Company's Selected Credit Ratios.

See Company's Form 10-K and Form 10-Qs filed with the SEC for additional information

S-6
ESSEX  PROPERTY  TRUST, INC.

Portfolio Summary by County as of June 30, 2025

   
Apartment Homes
    
Average Monthly Rental Rate (1)
    
Percent of NOI (2)
  
                                                             
Region - County
  
Consolidated
    
Unconsolidated
Co-investments
    
Apartment
Homes in
Development (3)
    
Total
    
Consolidated
    
Unconsolidated
Co-investments (4)
    
Total (4)
    
Consolidated
    
Unconsolidated
Co-investments (4)
    
Total (4)
  
                                                             
Southern California
                                                            
Los Angeles County
    
9,288
      
1,586
      
-
      
10,874
    
$
2,684
    
$
2,569
    
$
2,674
      
15.1
%
    
19.1
%
    
15.4
%
Orange County
    
5,734
      
265
      
-
      
5,999
      
2,693
      
2,488
      
2,688
      
10.8
%
    
3.2
%
    
10.3
%
San Diego County
    
5,444
      
443
      
-
      
5,887
      
2,688
      
3,066
      
2,703
      
10.3
%
    
6.1
%
    
10.0
%
Ventura County and Other
    
2,756
      
373
      
-
      
3,129
      
2,511
      
3,207
      
2,562
      
5.1
%
    
6.4
%
    
5.1
%
Total Southern California
    
23,222
      
2,667
      
-
      
25,889
      
2,667
      
2,729
      
2,670
      
41.3
%
    
34.8
%
    
40.8
%
                                                                                 
Northern California
                                                                                
Santa Clara County (5)
    
10,185
      
997
      
-
      
11,182
      
3,129
      
3,062
      
3,125
      
21.4
%
    
13.6
%
    
20.9
%
Alameda County
    
4,384
      
1,328
      
-
      
5,712
      
2,611
      
2,603
      
2,610
      
7.1
%
    
16.5
%
    
7.7
%
San Mateo County
    
2,483
      
195
      
543
      
3,221
      
3,371
      
3,863
      
3,390
      
5.5
%
    
4.3
%
    
5.4
%
Contra Costa County
    
2,619
      
-
      
-
      
2,619
      
2,758
      
-
      
2,758
      
4.7
%
    
0.0
%
    
4.4
%
San Francisco
    
1,356
      
537
      
-
      
1,893
      
2,927
      
3,351
      
2,997
      
2.3
%
    
7.7
%
    
2.7
%
Total Northern California
    
21,027
      
3,057
      
543
      
24,627
      
2,990
      
2,945
      
2,987
      
41.0
%
    
42.1
%
    
41.1
%
                                                                                 
Seattle Metro
    
10,899
      
1,970
      
-
      
12,869
      
2,258
      
2,181
      
2,251
      
17.7
%
    
23.1
%
    
18.1
%
                                                                                 
Total
    
55,148
      
7,694
      
543
      
63,385
    
$
2,709
    
$
2,677
    
$
2,707
      
100.0
%
    
100.0
%
    
100.0
%

(1)
Average monthly rental rate is defined as the total scheduled monthly rental income (actual rent for occupied apartment homes plus market rent for vacant apartment homes) for the quarter ended June 30, 2025, divided by the number of apartment homes as of June 30, 2025.
(2)
Represents the percentage of actual NOI for the quarter ended June 30, 2025. See section titled "Net Operating Income ("NOI") and Same-Property NOI Reconciliations" on page S-17.3.
(3)
Includes development communities with no rental income.
(4)
At Company's pro rata share.
(5)
Includes all communities in Santa Clara County and one community in Santa Cruz County.

See Company's Form 10-K and Form 10-Qs filed with the SEC for additional information

S-7
ESSEX  PROPERTY  TRUST, INC.

Operating Income by Quarter (1)
(Dollars in thousands)
   
Apartment
Homes
    
Q2 '25
    
Q1 '25
    
Q4 '24
    
Q3 '24
    
Q2 '24
  
                                     
Rental and other property revenues:
                                    
Same-property
    
49,203
    
$
410,948
    
$
406,986
    
$
400,756
    
$
402,999
    
$
398,293
  
Acquisitions (2)
    
4,930
      
41,784
      
34,770
      
26,772
      
16,964
      
12,824
  
Non-residential/other, net (3)
    
1,015
      
14,711
      
20,721
      
23,745
      
28,399
      
29,176
  
Straight-line rent concessions (4)
    
-
      
167
      
(388
)
    
780
      
(227
)
    
(511
)
Total rental and other property revenues
    
55,148
      
467,610
      
462,089
      
452,053
      
448,135
      
439,782
  
                                                 
Property operating expenses:
                                                
Same-property
            
120,092
      
123,323
      
119,681
      
123,078
      
116,712
  
Acquisitions (2)
            
12,365
      
10,393
      
7,848
      
4,870
      
3,585
  
Non-residential/other, net (3) (5)
            
2,972
      
4,905
      
6,183
      
6,844
      
6,237
  
Total property operating expenses
            
135,429
      
138,621
      
133,712
      
134,792
      
126,534
  
                                                 
Net operating income (NOI):
                                                
Same-property
            
290,856
      
283,663
      
281,075
      
279,921
      
281,581
  
Acquisitions (2)
            
29,419
      
24,377
      
18,924
      
12,094
      
9,239
  
Non-residential/other, net (3) (5)
            
11,739
      
15,816
      
17,562
      
21,555
      
22,939
  
Straight-line rent concessions (4)
            
167
      
(388
)
    
780
      
(227
)
    
(511
)
Total NOI
          
$
332,181
    
$
323,468
    
$
318,341
    
$
313,343
    
$
313,248
  
                                                 
Same-property metrics
                                                
Operating margin
            
71
%
    
70
%
    
70
%
    
69
%
    
71
%
Annualized turnover
            
39
%
    
35
%
    
36
%
    
45
%
    
41
%
Financial occupancy
            
96.2
%
    
96.3
%
    
95.9
%
    
96.2
%
    
96.2
%
Delinquency as a % of scheduled rent (6)
            
0.5
%
    
0.5
%
    
1.3
%
    
0.7
%
    
1.0
%
                                                 
Same-property net effective rate growth (7)
                                                
New lease
            
0.7
%
    
1.0
%
    
-1.9
%
    
0.6
%
    
1.6
%
Excluding Los Angeles County
             1.4
 %     1.2
 %     -1.8
 %     1.6
 %     2.8
 %
Renewal
            
4.2
%
    
3.8
%
    
3.8
%
    
3.8
%
    
4.6
%
Excluding Los Angeles County
             4.4
 %     3.9
 %     4.1
 %     4.1
 %     4.9
 %
Blended
            
3.0
%
    
2.8
%
    
1.6
%
    
2.5
%
    
3.4
%
Excluding Los Angeles County





3.3
 %

2.9
 %

1.9
 %

3.2
 %

4.1
 %

(1)
Includes consolidated communities only.
(2)
Acquisitions include properties acquired which did not have comparable stabilized results as of January 1, 2024.
(3)
Non-residential/other, net consists of revenues generated from retail space, commercial properties, held for sale properties, disposition properties, properties undergoing significant construction activities that do not meet our redevelopment criteria and two communities located in the California counties of Santa Barbara and Santa Cruz, which the Company does not consider its core markets.
(4)
Represents straight-line concessions for residential operating communities. Same-property revenues reflect concessions on a cash basis. Total Rental and Other Property Revenues reflect concessions on a straight-line basis in accordance with U.S. GAAP.
(5)
Includes other expenses and intercompany eliminations pertaining to self-insurance.
(6)
In the fourth quarter of 2024, the Company recorded a non-cash charge to fully eliminate its remaining $2.8 million residential accounts receivable balance. Excluding this adjustment, reported delinquency would have been 0.6% for the fourth quarter of 2024. There were no non-cash charges recorded for all other periods.
(7)
Represents the percentage change in similar term lease tradeouts, including the impact of leasing incentives.


See Company's Form 10-K and Form 10-Qs filed with the SEC for additional information

S-8
ESSEX  PROPERTY  TRUST, INC.

Same-Property Revenue Results by County - Second Quarter 2025 vs. Second Quarter 2024 and First Quarter 2025
(Dollars in thousands, except average monthly rental rates)
               
Average Monthly Rental Rate
    
Financial Occupancy
    
Gross Revenues
    
Sequential Gross
Revenues
  
Region - County
  
Apartment Homes
    
Q2 '25
% of
Actual NOI
    
Q2 '25
    
Q2 '24
    
%
Change
    
Q2 '25
    
Q2 '24
    
%
Change
    
Q2 '25
    
Q2 '24
    
%
Change
    
Q1 '25
    
%
Change
  
                                                                               
Southern California
                                                                              
Los Angeles County
    
9,288
      
17.0
%
  
$
2,684
    
$
2,654
      
1.1
%
    
95.1
%
    
95.0
%
    
0.1
%
  
$
75,787
    
$
73,729
      
2.8
%
  
$
75,770
      
0.0
%
Orange County
    
4,523
      
9.6
%
    
2,719
      
2,635
      
3.2
%
    
96.3
%
    
96.5
%
    
-0.2
%
    
37,677
      
36,401
      
3.5
%
    
37,340
      
0.9
%
San Diego County
    
4,588
      
9.8
%
    
2,710
      
2,637
      
2.8
%
    
96.1
%
    
96.2
%
    
-0.1
%
    
38,360
      
37,129
      
3.3
%
    
37,743
      
1.6
%
Ventura County
    
2,255
      
4.6
%
    
2,486
      
2,398
      
3.7
%
    
96.0
%
    
96.7
%
    
-0.7
%
    
17,458
      
16,918
      
3.2
%
    
17,570
      
-0.6
%
Total Southern California
    
20,654
      
41.0
%
    
2,676
      
2,618
      
2.2
%
    
95.7
%
    
95.8
%
    
-0.1
%
    
169,282
      
164,177
      
3.1
%
    
168,423
      
0.5
%
                                                                                                         
Northern California
                                                                                                        
Santa Clara County
    
8,653
      
20.8
%
    
3,092
      
3,003
      
3.0
%
    
96.7
%
    
96.7
%
    
0.0
%
    
82,743
      
80,006
      
3.4
%
    
81,480
      
1.6
%
Alameda County
    
3,716
      
6.9
%
    
2,584
      
2,569
      
0.6
%
    
96.3
%
    
95.7
%
    
0.6
%
    
30,059
      
29,235
      
2.8
%
    
29,757
      
1.0
%
San Mateo County
    
1,864
      
4.5
%
    
3,293
      
3,202
      
2.8
%
    
96.8
%
    
96.3
%
    
0.5
%
    
19,283
      
18,512
      
4.2
%
    
18,947
      
1.8
%
Contra Costa County
    
2,619
      
5.3
%
    
2,758
      
2,725
      
1.2
%
    
96.2
%
    
96.2
%
    
0.0
%
    
22,398
      
21,974
      
1.9
%
    
22,408
      
0.0
%
San Francisco
    
1,356
      
2.6
%
    
2,927
      
2,884
      
1.5
%
    
96.8
%
    
95.1
%
    
1.8
%
    
12,646
      
11,871
      
6.5
%
    
12,561
      
0.7
%
Total Northern California
    
18,208
      
40.1
%
    
2,949
      
2,886
      
2.2
%
    
96.6
%
    
96.3
%
    
0.3
%
    
167,129
      
161,598
      
3.4
%
    
165,153
      
1.2
%
                                                                                                         
Seattle Metro
    
10,341
      
18.9
%
    
2,265
      
2,193
      
3.3
%
    
96.5
%
    
97.1
%
    
-0.6
%
    
74,537
      
72,518
      
2.8
%
    
73,410
      
1.5
%
                                                                                                         
Total Same-Property
    
49,203
      
100.0
%
  
$
2,690
    
$
2,628
      
2.4
%
    
96.2
%
    
96.2
%
    
0.0
%
  
$
410,948
    
$
398,293
      
3.2
%
  
$
406,986
      
1.0
%

See Company's Form 10-K and Form 10-Qs filed with the SEC for additional information

S-9
ESSEX  PROPERTY  TRUST, INC.

Same-Property Revenue Results by County - Six months ended June 30, 2025 vs. Six months ended June 30, 2024
(Dollars in thousands, except average monthly rental rates)

               
Average Monthly Rental Rate
    
Financial Occupancy
    
Gross Revenues
  
Region - County
  
Apartment Homes
    
YTD 2025
% of
Actual NOI
    
YTD 2025
    
YTD 2024
    
%
Change
    
YTD 2025
    
YTD 2024
    
%
Change
    
YTD 2025
    
YTD 2024
    
%
Change
  
                                                                   
Southern California
                                                                  
Los Angeles County
    
9,288
      
17.3
%
  
$
2,679
    
$
2,656
      
0.9
%
    
95.2
%
    
95.3
%
    
-0.1
%
  
$
151,557
    
$
146,498
      
3.5
%
Orange County
    
4,523
      
9.7
%
    
2,711
      
2,622
      
3.4
%
    
96.2
%
    
96.5
%
    
-0.3
%
    
75,017
      
72,444
      
3.6
%
San Diego County
    
4,588
      
9.8
%
    
2,701
      
2,621
      
3.1
%
    
96.0
%
    
96.4
%
    
-0.4
%
    
76,103
      
73,842
      
3.1
%
Ventura County
    
2,255
      
4.7
%
    
2,476
      
2,382
      
3.9
%
    
96.5
%
    
96.7
%
    
-0.2
%
    
35,028
      
33,621
      
4.2
%
Total Southern California
    
20,654
      
41.5
%
    
2,669
      
2,611
      
2.2
%
    
95.7
%
    
95.9
%
    
-0.2
%
    
337,705
      
326,405
      
3.5
%
                                                                                         
Northern California
                                                                                        
Santa Clara County
    
8,653
      
20.7
%
    
3,072
      
2,990
      
2.7
%
    
96.7
%
    
96.7
%
    
0.0
%
    
164,223
      
158,899
      
3.4
%
Alameda County
    
3,716
      
6.8
%
    
2,575
      
2,569
      
0.2
%
    
96.4
%
    
95.6
%
    
0.8
%
    
59,816
      
58,180
      
2.8
%
San Mateo County
    
1,864
      
4.5
%
    
3,264
      
3,190
      
2.3
%
    
97.1
%
    
96.0
%
    
1.1
%
    
38,230
      
36,516
      
4.7
%
Contra Costa County
    
2,619
      
5.5
%
    
2,751
      
2,713
      
1.4
%
    
96.5
%
    
96.3
%
    
0.2
%
    
44,806
      
43,709
      
2.5
%
San Francisco
    
1,356
      
2.6
%
    
2,916
      
2,876
      
1.4
%
    
96.9
%
    
95.1
%
    
1.9
%
    
25,207
      
23,650
      
6.6
%
Total Northern California
    
18,208
      
40.1
%
    
2,933
      
2,876
      
2.0
%
    
96.7
%
    
96.3
%
    
0.4
%
    
332,282
      
320,954
      
3.5
%
                                                                                         
Seattle Metro
    
10,341
      
18.4
%
    
2,252
      
2,182
      
3.2
%
    
96.4
%
    
97.1
%
    
-0.7
%
    
147,947
      
144,302
      
2.5
%
                                                                                         
Total Same-Property
    
49,203
      
100.0
%
  
$
2,679
    
$
2,619
      
2.3
%
    
96.2
%
    
96.3
%
    
-0.1
%
  
$
817,934
    
$
791,661
      
3.3
%

See Company's Form 10-K and Form 10-Qs filed with the SEC for additional information

S-9.1
ESSEX  PROPERTY  TRUST, INC.

Same-Property Operating Expenses - Quarter to Date and Year to Date as of June 30, 2025 and 2024
(Dollars in thousands)

Based on 49,203 apartment homes
  
   
Q2 '25
    
Q2 '24
    
% Change
    
% of
Operating
Expense
  
                         
Same-property operating expenses:
                        
Real estate taxes
  
$
42,192
    
$
43,792
      
-3.7
%
    
35.1
%
Utilities
    
24,900
      
22,648
      
9.9
%
    
20.7
%
Personnel costs
    
23,637
      
22,274
      
6.1
%
    
19.7
%
Maintenance and repairs
    
14,363
      
12,636
      
13.7
%
    
12.0
%
Administrative
    
6,566
      
6,880
      
-4.6
%
    
5.5
%
Insurance and other
    
8,434
      
8,482
      
-0.6
%
    
7.0
%
Total same-property operating expenses
  
$
120,092
    
$
116,712
      
2.9
%
    
100.0
%

   
YTD 2025
    
YTD 2024
    
% Change
    
% of
Operating
Expense
  
                         
Same-property operating expenses:
                        
Real estate taxes
  
$
88,114
    
$
87,528
      
0.7
%
    
36.2
%
Utilities
    
50,959
      
46,859
      
8.7
%
    
20.9
%
Personnel costs
    
46,756
      
44,759
      
4.5
%
    
19.2
%
Maintenance and repairs
    
27,257
      
26,192
      
4.1
%
    
11.2
%
Administrative
    
13,286
      
13,560
      
-2.0
%
    
5.5
%
Insurance and other
    
17,043
      
16,656
      
2.3
%
    
7.0
%
Total same-property operating expenses
  
$
243,415
    
$
235,554
      
3.3
%
    
100.0
%


See Company's Form 10-K and Form 10-Qs filed with the SEC for additional information

S-10
ESSEX  PROPERTY  TRUST, INC.

Development Pipeline - June 30, 2025
(Dollars in millions, except per apartment home amounts in thousands)
Project Name - Location
  
Ownership
%
    
Estimated
Apartment
Homes
    
Estimated
Commercial
sq. feet
    
Incurred to
Date (1)
    
Remaining
Costs
    
Estimated
Total Cost
    
Cost per
Apartment
Home (2)
    
Construction
Start
    
Initial
Occupancy
    
Stabilized
Operations
  
                                                             
Development Projects - Consolidated
                                                            
7 South Linden - South San Francisco, CA
  
100%

   
543
      
-
    
$
61
    
$
250
    
$
311
    
$
573
      
Q1 2025
      
Q2 2028
      
Q1 2030
  
Total Development Projects - Consolidated
          
543
      
-
      
61
      
250
      
311
      
573
                          
                                                                               
Land Held for Future Development - Consolidated
                                                                              
Other Projects - Various
  
100%

   
-
      
-
      
45
      
-
      
45
                                  
Total Development Pipeline - Consolidated
          
543
      
-
    
$
106
    
$
250
    
$
356
                                  

(1)
For the second quarter of 2025, the Company's cost includes $0.7 million of capitalized interest and $0.6 million of capitalized overhead.
(2)
Net of the estimated allocation to the retail component of the project, as applicable.

See Company's Form 10-K and Form 10-Qs filed with the SEC for additional information

S-11
ESSEX  PROPERTY  TRUST, INC.

Capital Expenditures - June 30, 2025 (1)
(Dollars in thousands, except in footnotes and per apartment home amounts)
Revenue Generating Capital Expenditures (2)
  
Q2 '25
    
Trailing 4 Quarters
  
             
Same-property portfolio
  
$
18,181
    
$
73,077
  
Non-same property portfolio
    
1,836
      
7,882
  
Total revenue generating capital expenditures
  
$
20,017
    
$
80,959
  
                 
Number of same-property interior renovations
    
872
      
2,997
  
Number of total consolidated interior renovations
    
980
      
3,258
  
                 
Non-Revenue Generating Capital Expenditures (3)
  
Q2 '25
    
Trailing 4 Quarters
  
                 
Non-revenue generating capital expenditures
  
$
35,822
    
$
118,674
  
Average apartment homes in quarter
    
55,113
      
54,428
  
Capital expenditures per apartment home
  
$
650
    
$
2,180
  

(1)
The Company incurred less than $0.1 million of capitalized interest, $4.7 million of capitalized overhead and less than $0.1 million of co-investment fees related to redevelopment in Q2 2025.
(2)
Represents revenue generating expenditures, such as full-scale redevelopments, interior unit turn renovations, enhanced amenities and certain sustainability initiatives that generate higher revenues or expense savings.
(3)
Represents roof replacements, paving, building and mechanical systems, exterior painting, siding, etc. Non-revenue generating capital expenditures does not include costs related to retail, furniture and fixtures, expenditures in which the Company has been reimbursed or expects to be reimbursed, and expenditures incurred due to changes in governmental regulation that the Company would not have incurred otherwise.

See Company's Form 10-K and Form 10-Qs filed with the SEC for additional information

S-12
ESSEX  PROPERTY  TRUST, INC.

Co-investments and Preferred Equity Investments - June 30, 2025
(Dollars in thousands, except in footnotes)

   
Weighted
Average Essex Ownership Percentage
    
Apartment Homes
    
Total
Undepreciated
Book Value
    
Debt
Amount
    
Essex
Book Value
    
Weighted
Average Borrowing
Rate (1)
    
Remaining
Term of Debt
(in Years)
    
Three Months
Ended June 30,
2025
  
Six Months
Ended June 30,
2025
  
 
                                                      
Operating and Other Unconsolidated Joint Ventures
                                            
NOI
  
Wesco I, III, IV, V, VI (2)
  
54%

   
5,976
    
$
2,180,074
    
$
1,374,618
    
$
127,826
      
3.3
%
    
1.4
    
$
30,828
    
$
61,029
  
BEX IV, 500 Folsom
  
50%

   
732
      
616,652
      
176,400
      
141,712
      
3.7
%
    
21.0
      
5,308
      
10,988
  
Other (3)
  
53%

   
986
      
385,837
      
291,476
      
91,383
      
3.7
%
    
12.0
      
5,699
      
11,099
  
Total Operating and Other Unconsolidated Joint Ventures
          
7,694
    
$
3,182,563
    
$
1,842,494
    
$
360,921
      
3.4
%
    
5.0
    
$
41,835
    
$
83,116
  
 
                                                                      
 
                                                        
Essex Portion of NOI and
Expenses
  
NOI
                                                        
$
22,831
    
$
45,359
  
Depreciation
                                                          
(14,406
)
    
(28,784
)
Interest expense and other, net
                                                          
(8,646
)
    
(17,098
)
Equity (loss) income from unconsolidated technology co-investments
                                                          
(104
)
    
1,612
  
Insurance reimbursements, legal settlements, and other, net
                                                          
(15
)
    
(15
)
Net income from operating and other co-investments
                                                        
$
(340
)
  
$
1,074
  
 
                                                                      
 
                                        
Weighted
Average
Preferred
Return
    
Weighted
Average
Expected
Term
    
Income from Preferred Equity Investments
  
Income from preferred equity investments
                                                        
$
9,317
    
$
21,112
  
Preferred Equity Investments (4)
                                
$
445,511
      
9.2
%
    
1.4
    
$
9,317
    
$
21,112
  
 
                                                                      
Total Co-investments
                                
$
806,432
                    
$
8,977
    
$
22,186
  

(1)
Represents the year-to-date annual weighted average borrowing rate.
(2)
As of June 30, 2025, the Company’s investments in Wesco I, Wesco III, and Wesco IV were classified as a liability of $86.9 million due to distributions received in excess of the Company's investment.
(3)
As of June 30, 2025, the Company’s investment in Expo was classified as a liability of $2.5 million due to distributions received in excess of the Company's investment. The weighted average Essex ownership percentage excludes our investments in unconsolidated technology co-investments.
(4)
As of June 30, 2025, the Company is invested in 16 preferred equity investments.

See Company's Form 10-K and Form 10-Qs filed with the SEC for additional information

S-13
ESSEX  PROPERTY  TRUST, INC.

Summary of Apartment Community Acquisitions and Dispositions Activity - Year to date as of June 30, 2025
(Dollars in thousands, except for average monthly rent)
Acquisitions
                                          
Property Name
  
Location
  
Apartment
Homes
  
Year Built
  
Essex
Ownership
Percentage
  
Entity
  
Date
  
Total Contract
Price at
Pro Rata Share
    
Price per
Apartment Home (1)
    
Average
Monthly Rent
  
                                           
The Plaza
  
Foster City, CA
  
307
  
2013
  
100%

EPLP
  
Jan-25
  
$
161,375
    
$
512
    
$
3,310
  
One Hundred Grand (2)
  
Foster City, CA
  
166
  
2016
  
N/A
  
EPLP
  
Feb-25
    
105,250
      
615
      
3,881
  
ROEN Menlo Park
  
Menlo Park, CA
  
146
  
2017
  
100%
EPLP
  
Feb-25
    
78,750
      
539
      
3,647
  
   
Q1 2025
  
619
              
 
$
345,375
    
$
546
          
                                                 
Revere Campbell (2)
  
Campbell, CA
  
168
  
2015
  
N/A
  
EPLP
  
May-25
  
$
118,000
    
$
664
    
$
4,014
  
The Parc at Pruneyard
  
Campbell, CA
  
252
  
1968
  
100%
EPLP
  
May-25
    
122,500
      
486
      
3,104
  
   
Q2 2025
  
420
              
 
$
240,500
    
$
573
          
                                                 
   
2025 Total
  
1,039
              
 
$
585,875
    
$
551
          
                                                 
                                             
Dispositions
                                            

                                           
Property Name
  
Location
  
Apartment
Homes
  
Year Built
  
Essex
Ownership
Percentage
  
Entity
  
Date
  
Total Contract
Price at
Pro Rata Share
    
Price per
Apartment Home (1)
          
                                             
Highridge (2)
  
Rancho Palos Verdes, CA
  
255
  
1972
  
N/A
  
EPLP
  
Feb-25
  
$
127,000
    
$
498
          
   
Q1 2025
  
255
              
 
$
127,000
    
$
498
          
                                                 
Essex Skyline
  
Santa Ana, CA
  
350
  
2008
  
100%

EPLP
  
Apr-25
  
$
239,580
    
$
685
          
   
Q2 2025
  
350
              
 
$
239,580
    
$
685
          
                                                 
   
2025 Total
  
605
              
 
$
366,580
    
$
606
          

(1)
Price per apartment home excludes value allocated to retail space.
(2)
The noncontrolling members’ ownership interest in Highridge, a community owned by consolidated DownREIT entities prior to its disposition, were transferred to One Hundred Grand and Revere Campbell pursuant to the like-kind exchange rules under Section 1031 of the Internal Revenue Code of 1986, as amended.

See Company's Form 10-K and Form 10-Qs filed with the SEC for additional information

S-14
ESSEX  PROPERTY  TRUST, INC.

Assumptions for 2025 FFO Guidance Range
(Dollars in thousands,except per share data)
 
 
The guidance projections below are based on current expectations and are forward-looking. The guidance on this page is given for Net Operating Income ("NOI") and Total and Core FFO. See pages S-17.1 to S-17.4 for the definitions of non-GAAP financial measures and other terms.

   
Six Months Ended
    
2025 Full-Year Guidance Range
    
   
June 30, 2025 (1)
    
Low End
    
High End
  
Comments about 2025 Full-Year Guidance
                         
Total NOI from Consolidated Communities
  
$
655,649
    
$
1,311,400
    
$
1,322,400
  
Includes a range of same-property NOI growth of 2.7% to 3.5%.  Reflects investment activity through July
                               
Management Fees
  
$
4,717
      
9,000
      
9,600
    
                               
Interest Expense
                             
Interest expense, before capitalized interest
    
(127,220
)
    
(257,400
)
    
(256,000
)
 Updated to reflect investment activity through July
Interest capitalized
    
1,497
      
3,400
      
4,000
    
  Net interest expense
    
(125,723
)
    
(254,000
)
    
(252,000
)
  
Recurring Income and Expenses
                             
Interest and other income
    
7,992
      
16,400
      
17,400
    
FFO from co-investments
    
49,373
      
90,700
      
92,700
  
 Guidance assumes $200M in preferred equity redemptions for the full year, of which $27M has occured through July
General and administrative
    
(29,512
)
    
(61,000
)
    
(63,000
)
  
Corporate-level property management expenses
    
(24,552
)
    
(48,600
)
    
(49,400
)
  
Non-controlling interest
    
(4,856
)
    
(10,000
)
    
(9,400
)
  
  Total recurring income and expenses
    
(1,555
)
    
(12,500
)
    
(11,700
)
  
Non-Core Income and Expenses
                             
Tax benefit on unconsolidated technology co-investments
    
395
      
395
      
395
    
Realized and unrealized gains on marketable securities, net
    
2,401
      
2,401
      
2,401
    
Provision for credit losses
    
(11
)
    
(11
)
    
(11
)
  
Equity income from unconsolidated technology co-investments
    
1,612
      
1,612
      
1,612
    
Loss on early retirement of debt, net
    
(762
)
    
(762
)
    
(762
)
  
General and administrative and other, net
    
(3,937
)
    
(6,500
)
    
(5,000
)
  
Insurance reimbursements, legal settlements, and other, net
    
700
      
700
      
700
    
  Total non-core income and expenses
    
398
      
(2,165
)
    
(665
)
  
Funds from Operations (2)
  
$
533,486
    
$
1,051,735
    
$
1,067,635
    
                               
Funds from Operations per diluted Share
  
$
8.00
    
$
15.77
    
$
16.01
    
                               
% Change - Funds from Operations
    
-5.8
%
    
-1.4
%
    
0.1
%
  
                               
Core Funds from Operations (excludes non-core items)
  
$
533,088
    
$
1,053,900
    
$
1,068,300
    
                               
Core Funds from Operations per diluted Share
  
$
8.00
    
$
15.80
    
$
16.02
    
                               
% Change - Core Funds from Operations
    
3.0
%
    
1.3
%
    
2.7
%
  
                               
EPS - Diluted
  
$
6.59
    
$
10.05
    
$
10.29
    
                               
Weighted average shares outstanding - FFO calculation
    
66,664
      
66,700
      
66,700
    

(1)
All non-core items are excluded from the 2025 actuals and included in the non-core income and expense section of the FFO reconciliation.
(2)
2025 guidance excludes inestimable projected gain on sale of marketable securities, loss on early retirement of debt, political/legislative costs, and promote income until they are realized within the reporting period presented in the report.

See Company's Form 10-K and Form 10-Qs filed with the SEC for additional information

S-15
ESSEX  PROPERTY  TRUST, INC.

Reconciliation of Projected EPS, FFO and Core FFO per diluted share
 
With respect to the Company's guidance regarding its projected FFO and Core FFO, which guidance is set forth in the earnings release and on page S-15 of this supplement, a reconciliation of projected net income per share to projected FFO per share and projected Core FFO per share, as set forth in such guidance, is presented in the table below.

         
2025 Guidance Range (1)
  
   
Six Months
                          
   
Ended June 30,
    
3rd Quarter 2025
    
Full-Year 2025
  
   
2025
    
Low
    
High
    
Low
    
High
  
                               
EPS - diluted
  
$
6.59
    
$
2.05
    
$
2.15
    
$
10.05
    
$
10.29
  
Conversion from GAAP share count
    
(0.23
)
    
(0.07
)
    
(0.07
)
    
(0.35
)
    
(0.35
)
Depreciation and amortization
    
4.97
      
2.49
      
2.49
      
9.95
      
9.95
  
Noncontrolling interest related to Operating Partnership units
    
0.23
      
0.07
      
0.07
      
0.34
      
0.34
  
Gain on sale of real estate and land
    
(3.56
)
    
(0.66
)
    
(0.66
)
    
(4.22
)
    
(4.22
)
FFO per share - diluted
  
$
8.00
    
$
3.88
    
$
3.98
    
$
15.77
    
$
16.01
  
                                         
Tax benefit on unconsolidated technology co-investments
    
(0.01
)
    
-
      
-
      
(0.01
)
    
(0.01
)
Realized and unrealized gains on marketable securities, net
    
(0.04
)
    
-
      
-
      
(0.04
)
    
(0.04
)
Equity income from unconsolidated technology co-investments
    
(0.01
)
    
-
      
-
      
(0.02
)
    
(0.02
)
Loss on early retirement of debt, net
    
0.01
      
-
      
-
      
0.01
      
0.01
  
General and administrative and other, net
    
0.06
      
0.01
      
0.01
      
0.10
      
0.08
  
Insurance reimbursements, legal settlements, and other, net
    
(0.01
)
    
-
      
-
      
(0.01
)
    
(0.01
)
Core FFO per share - diluted
  
$
8.00
    
$
3.89
    
$
3.99
    
$
15.80
    
$
16.02
  

(1)
2025 guidance excludes inestimable projected gain on sale of real estate and land, gain on sale of marketable securities, loss on early retirement of debt, political/legislative costs, and promote income until they are realized within the reporting period presented in the report.

See Company's Form 10-K and Form 10-Qs filed with the SEC for additional information

S-15.1
anchor
 Data based on Essex Data Analytics forecasts and third-party projections.  Residential Supply: Total supply includes the Company's estimate of multifamily (“MF”) deliveries of properties with 50+ units and excludes student, senior and 100% affordable housing communities. Multifamily estimates incorporate a methodological enhancement ("delay-adjusted supply") to reflect the anticipated impact of continued construction delays in Essex markets. Single-family (“SF”) estimates are based on trailing single-family permits.                                         Residential Supply Forecast (1)         Residential Supply Forecast (1)           2025E     2026E  Market     Multifamily   Supply  Total MF/SF  Supply  Total Supply as a   % of Stock     Multifamily   Supply  Total MF/SF  Supply  Total Supply as a   % of Stock                       Los Angeles     8,900  15,300  0.4%  5,900  11,700  0.3%  Orange County     1,800  4,300  0.4%  2,600  5,400  0.5%  San Diego     5,100  7,900  0.6%  4,700  7,400  0.6%  Ventura     300  600  0.2%  800  1,200  0.4%  Southern California     16,100  28,100  0.4%  14,000  25,700  0.4%           San Francisco     1,300  1,700  0.2%  1,200  1,700  0.2%  Oakland     1,200  3,200  0.3%  800  3,400  0.3%  San Jose     3,800  5,800  0.8%  1,100  3,000  0.4%  Northern California      6,300  10,700  0.4%  3,100  8,100  0.3%           Seattle     10,200  14,300  1.0%  4,300  8,800  0.6%           Total        32,600  53,100  0.5%  21,400  42,600  0.4%  ESSEX PROPERTY TRUST, INC.                                MSA Level Supply Forecast: 2025E – 2026E                                                        See Company’s Form 10-K and Form 10-Qs filed with the SEC for additional information  S-16 

ESSEX  PROPERTY  TRUST, INC.

Reconciliations of Non-GAAP Financial Measures and Other Terms

Adjusted EBITDAre Reconciliation

The National Association of Real Estate Investment Trusts ("Nareit”) defines earnings before interest, taxes, depreciation and amortization for real estate ("EBITDAre") (September 2017 White Paper) as net income (computed in accordance with U.S. generally accepted accounting principles ("U.S. GAAP")) before interest expense, income taxes, depreciation and amortization expense, and further adjusted for gains and losses from sales of depreciated operating properties, impairment write-downs of depreciated operating properties, impairment write-downs of investments in unconsolidated entities caused by a decrease in value of depreciated operating properties within the joint venture and adjustments to reflect the Company’s share of EBITDAre of investments in unconsolidated entities.

The Company believes that EBITDAre is useful to investors, creditors and rating agencies as a supplemental measure of the Company’s ability to incur and service debt because it is a recognized measure of performance by the real estate industry, and by excluding gains or losses related to sales or impairment of depreciated operating properties, EBITDAre can help compare the Company’s credit strength between periods or as compared to different companies.

Adjusted EBITDAre represents EBITDAre further adjusted for non-comparable items and is a component of the credit ratio, "Net Indebtedness Divided by Adjusted EBITDAre, normalized and annualized," presented on page S-6, in the section titled "Selected Credit Ratios," and it is not intended to be a measure of free cash flow for management’s discretionary use, as it does not consider certain cash requirements such as income tax payments, debt service requirements, capital expenditures and other fixed charges.

Adjusted EBITDAre is an important metric in evaluating the credit strength of the Company and its ability to service its debt obligations.  The Company believes that Adjusted EBITDAre is useful to investors, creditors and rating agencies because it allows investors to compare the Company’s credit strength to prior reporting periods and to other companies without the effect of items that by their nature are not comparable from period to period and tend to obscure the Company’s actual credit quality.

EBITDAre and Adjusted EBITDAre are not recognized measurements under U.S. GAAP. Because not all companies use identical calculations, the Company's presentation of EBITDAre and Adjusted EBITDAre may not be comparable to similarly titled measures of other companies.

The reconciliations of Net Income available to common stockholders to EBITDAre and Adjusted EBITDAre are presented in the table below:

(Dollars in thousands)
Three
Months Ended
June 30,
2025
 
 
Net income available to common stockholders
$
221,362
Adjustments:

 
Net income attributable to noncontrolling interest

10,164
Interest expense, net (1)

64,191
Depreciation and amortization

151,501
  
Income tax provision

(684
)
Gain on sale of real estate and land

(126,174
)
Co-investment EBITDAre adjustments

22,896
  
EBITDAre

343,256
  
 

   
Realized and unrealized gains on marketable securities, net

(2,492
)
Provision for credit losses

14
  
Equity loss from unconsolidated technology co-investments

104
  
Tax benefit on unconsolidated technology co-investments

(232
)
General and administrative and other, net

2,661
  
Insurance reimbursements, legal settlements, and other, net

(339
)
Adjusted EBITDAre
$
342,972
  

(1)
Interest expense, net includes items such as gains on derivatives and the amortization of deferred charges.


See Company's Form 10-K and Form 10-Qs filed with the SEC for additional information

S-17.1
ESSEX  PROPERTY  TRUST, INC.

Reconciliations of Non-GAAP Financial Measures and Other Terms

Annualized Turnover

Annualized turnover is defined as the number of apartment homes turned over during the quarter, annualized, divided by the total number of apartment homes.

Financial Occupancy

Financial occupancy is defined as the percentage resulting from dividing actual rental income by total scheduled rental income. Actual rental income represents contractual rental income pursuant to leases without considering delinquency and concessions. Total scheduled rental income represents the value of all apartment homes, with occupied apartment homes valued at contractual rental rates pursuant to leases and vacant apartment homes valued at estimated market rents.

New Lease Net Effective Rate Growth and Renewal Net Effective Rate Growth

New lease net effective rate growth and renewal net effective rate growth represent the percentage change in similar term lease tradeouts, including the impact of leasing incentives.

Disposition Yield

Net operating income that the Company anticipates giving up in the next 12 months less an estimate of property management costs allocated to the project divided by the gross sales price of the asset.

Acquisition Yield

Net operating income that the Company expects to achieve in the next 12 months less an estimate of property management costs allocated to the project and less an estimate for capital expenditures per unit divided by the gross sales price of the asset.

Encumbered

Encumbered means any mortgage, deed of trust, lien, charge, pledge, security interest, security agreement or other encumbrance of any kind.

Funds From Operations ("FFO") and Core FFO

FFO, as defined by Nareit, is generally considered by industry analysts as an appropriate measure of performance of an equity REIT. Generally, FFO adjusts the net income of equity REITs for non-cash charges such as depreciation and amortization of rental properties, impairment charges, gains on sales of real estate and extraordinary items. Management considers FFO and FFO which excludes non-core items, which is referred to as “Core FFO,” to be useful supplemental operating performance measures of an equity REIT because, together with net income and cash flows, FFO and Core FFO provide investors with additional bases to evaluate the operating performance and ability of a REIT to incur and service debt and to fund acquisitions and other capital expenditures and to pay dividends. By excluding gains or losses related to sales of depreciated operating properties and land and excluding real estate depreciation (which can vary among owners of identical assets in similar condition based on historical cost accounting and useful life estimates), FFO can help investors compare the operating performance of a real estate company between periods or as compared to different companies. By further adjusting for items that are not considered part of the Company’s core business operations, Core FFO allows investors to compare the core operating performance of the Company to its performance in prior reporting periods and to the operating performance of other real estate companies without the effect of items that by their nature are not comparable from period to period and tend to obscure the Company’s actual operating results.

FFO and Core FFO do not represent net income or cash flows from operations as defined by U.S. GAAP and are not intended to indicate whether cash flows will be sufficient to fund cash needs. These measures should not be considered as alternatives to net income as an indicator of the REIT's operating performance or to cash flows as a measure of liquidity. FFO and Core FFO do not measure whether cash flow is sufficient to fund all cash needs including principal amortization, capital improvements and distributions to stockholders. FFO and Core FFO also do not represent cash flows generated from operating, investing or financing activities as defined under GAAP. Management has consistently applied the Nareit definition of FFO to all periods presented. However, there is judgment involved and other REITs’ calculation of FFO may vary from the Nareit definition for this measure, and thus their disclosures of FFO may not be comparable to the Company’s calculation.

The reconciliations of FFO and Core FFO per diluted share are detailed on page S-3 in the section titled "Consolidated Funds From Operations".

Interest Expense, Net

Interest expense, net is presented on page S-1 in the section titled "Consolidated Operating Results". Interest expense, net includes items such as gains on derivatives and the amortization of deferred charges and is presented in the table below:

(Dollars in thousands)
Three Months Ended
    
Six Months Ended
June 30,
2025
      
June 30,
2024

June 30,
2025
      
June 30,
2024
                       
Interest expense
  
$
65,262
    
$
59,120
    
$
127,994
    
$
115,053
  
Adjustments:
                                
Total return swap income
    
(1,071
)
    
(629
)
    
(2,271
)
    
(1,425
)
Interest expense, net
  
$
64,191
    
$
58,491
    
$
125,723
    
$
113,628
  


See Company's Form 10-K and Form 10-Qs filed with the SEC for additional information

S-17.2
ESSEX  PROPERTY  TRUST, INC.

Reconciliations of Non-GAAP Financial Measures and Other Terms

Net Indebtedness Divided by Adjusted EBITDAre

This credit ratio is presented on page S-6 in the section titled "Selected Credit Ratios." This credit ratio is calculated by dividing net indebtedness by Adjusted EBITDAre, as annualized based on the most recent quarter, and adjusted for estimated net operating income from properties acquired or disposed of during the quarter. This ratio is presented by the Company because it provides rating agencies and investors an additional means of comparing the Company's ability to service debt obligations to that of other companies. Net indebtedness is total debt, net less unamortized premiums, discounts, debt issuance costs, unrestricted cash and cash equivalents, and marketable securities. The reconciliation of Adjusted EBITDAre is set forth in "Adjusted EBITDAre Reconciliation" on page S-17.1 The calculation of this credit ratio and a reconciliation of net indebtedness to total debt at pro rata share for co-investments, net is presented in the table below:

(Dollars in thousands)
June 30,
2025
       
Total consolidated debt, net
  
$
6,759,454
  
Total debt from co-investments at pro rata share
    
1,005,851
  
Adjustments:
        
Consolidated unamortized premiums, discounts, and debt issuance costs
    
32,727
  
Pro rata co-investments unamortized premiums, discounts,
        
and debt issuance costs
    
3,332
  
Consolidated cash and cash equivalents-unrestricted
    
(58,679
)
Pro rata co-investment cash and cash equivalents-unrestricted
    
(35,599
)
Marketable securities
    
(82,162
)
Net Indebtedness
  
$
7,624,924
  
         
Adjusted EBITDAre, annualized (1)
  
$
1,371,888
  
Other EBITDAre normalization adjustments, net, annualized (2)
    
5,602
  
Adjusted EBITDAre, normalized and annualized
  
$
1,377,490
  
         
Net Indebtedness Divided by Adjusted EBITDAre, normalized and annualized
    
5.5
  

(1)
Based on the amount for the most recent quarter, multiplied by four.
(2)
Adjustments made for properties in lease-up, acquired, or disposed during the most recent quarter and other partial quarter activity, multiplied by four.

Net Operating Income ("NOI") and Same-Property NOI Reconciliations

NOI and same-property NOI are considered by management to be important supplemental performance measures to earnings from operations included in the Company’s consolidated statements of income. The presentation of same-property NOI assists with the presentation of the Company’s operations prior to the allocation of depreciation and any corporate-level or financing-related costs. NOI reflects the operating performance of a community and allows for an easy comparison of the operating performance of individual communities or groups of communities.

In addition, because prospective buyers of real estate have different financing and overhead structures, with varying marginal impacts to overhead by acquiring real estate, NOI is considered by many in the real estate industry to be a useful measure for determining the value of a real estate asset or group of assets. The Company defines same-property NOI as same-property revenues less same-property operating expenses, including property taxes. Please see the reconciliation of earnings from operations to NOI and same-property NOI, which in the table below is the NOI for stabilized properties consolidated by the Company for the periods presented:

  
(Dollars in thousands)
  
Three Months Ended
 
Six Months Ended
  

June 30,
2025
     
June 30,
2024
June 30,
2025
    
June 30,
2024
  
                         
Earnings from operations
  
$
279,700
    
$
137,450
    
$
536,781
    
$
269,809
  
Adjustments:
                                
Corporate-level property management expenses
    
12,220
      
11,622
      
24,552
      
22,721
  
Depreciation and amortization
    
151,501
      
145,613
      
302,788
      
285,346
  
Management and other fees from affiliates
    
(2,223
)
    
(2,573
)
    
(4,717
)
    
(5,286
)
General and administrative
    
17,157
      
21,136
      
33,449
      
38,307
  
Expensed acquisition and investment related costs
    
-
      
-
      
-
      
68
  
Gain on sale of real estate and land
    
(126,174
)
    
-
      
(237,204
)
    
-
  
NOI
    
332,181
      
313,248
      
655,649
      
610,965
  
Less: Non-same property NOI
    
(41,325
)
    
(31,667
)
    
(81,130
)
    
(54,858
)
Same-Property NOI
  
$
290,856
    
$
281,581
    
$
574,519
    
$
556,107
  


See Company's Form 10-K and Form 10-Qs filed with the SEC for additional information

S-17.3
ESSEX  PROPERTY  TRUST, INC.

Reconciliations of Non-GAAP Financial Measures and Other Terms

Public Bond Covenants

Public Bond Covenants refer to certain covenants set forth in instruments governing the Company's unsecured indebtedness. These instruments require the Company to meet specified financial covenants, including covenants relating to net worth, fixed charge coverage, debt service coverage, the amounts of total indebtedness and secured indebtedness, leverage and certain investment limitations. These covenants may restrict the Company's ability to expand or fully pursue its business strategies. The Company's ability to comply with these covenants may be affected by changes in the Company's operating and financial performance, changes in general business and economic conditions, adverse regulatory developments or other events adversely impacting it. The breach of any of these covenants could result in a default under the Company's indebtedness, which could cause those and other obligations to become due and payable. If any of the Company's indebtedness is accelerated, the Company may not be able to repay it. For risks related to failure to comply with these covenants, see "Item 1A: Risk Factors - Risks Related to Our Indebtedness and Financings" in the Company's annual report on Form 10-K and other reports filed by the Company with the Securities and Exchange Commission ("SEC").

The ratios set forth on page S-6 in the section titled "Public Bond Covenants" are provided only to show the Company's compliance with certain specified covenants that are contained in indentures related to the Company's issuance of Senior Notes, which indentures are filed by the Company with the SEC. See, for example, the indenture and supplemental indenture dated February 18, 2025, filed by the Company as Exhibit 4.1 and Exhibit 4.2 to the Company's Form 8-K, filed on February 18, 2025. These ratios should not be used for any other purpose, including without limitation to evaluate the Company's financial condition or results of operations, nor do they indicate the Company's covenant compliance as of any other date or for any other period. The capitalized terms in the disclosure are defined in the indentures filed by the Company with the SEC and may differ materially from similar terms used by other companies that present information about their covenant compliance.

Same-Property Revenue Growth with Concessions on a GAAP basis

(Dollars in millions)
Three Months Ended

Six Months Ended
June 30,
2025
  
June 30,
2024
June 30,
2025
      
June 30,
2024
Reported rental revenue (1)
  
$
410.9
    
$
398.3
    
$
818.0
    
$
791.6
  
Straight-line rent impact to rental revenue
    
0.2
      
(0.5
)
    
(0.3
)
    
(0.5
)
GAAP rental revenue
  
$
411.1
    
$
397.8
    
$
817.7
    
$
791.1
  
                                 
% change - reported rental revenue
    
3.2
%
            
3.3
%
        
% change - GAAP rental revenue
    
3.4
%
            
3.4
%
        

(1)
Same-property rental revenue reflects concessions on a cash basis.

Secured Debt

Secured Debt means debt of the Company or any of its subsidiaries which is secured by an encumbrance on any property or assets of the Company or any of its subsidiaries. The Company's total amount of Secured Debt is set forth on page S-5.

Unencumbered NOI to Adjusted Total NOI

This ratio is presented on page S-6 in the section titled "Selected Credit Ratios". Unencumbered NOI means the sum of NOI for those real estate assets which are not subject to an encumbrance securing debt. The ratio of Unencumbered NOI to Adjusted Total NOI for the three months ended June 30, 2025, annualized, is calculated by dividing Unencumbered NOI, annualized for the three months ended June 30, 2025 and as further adjusted for pro forma NOI for properties acquired or sold during the recent quarter, by Adjusted Total NOI as annualized. The calculation and reconciliation of NOI is set forth in "Net Operating Income ("NOI") and Same-Property NOI Reconciliations" above. This ratio is presented by the Company because it provides rating agencies and investors an additional means of comparing the Company's ability to service debt obligations to that of other companies.

The calculation of this ratio is presented in the table below:

(Dollars in thousands)
Annualized
Q2 '25 (1)
       
NOI
  
$
1,328,724
  
Adjustments:
        
Pro forma NOI from real estate assets sold and/or acquired
    
6,007
  
Other, net (2)
    
(11,064
)
Adjusted Total NOI
    
1,323,667
  
Less: Encumbered NOI
    
(96,058
)
Unencumbered NOI
  
$
1,227,609
  
         
Encumbered NOI
  
$
96,058
  
Unencumbered NOI
    
1,227,609
  
Adjusted Total NOI
  
$
1,323,667
  
         
Unencumbered NOI to Adjusted Total NOI
    
93
%

(1)
This table is based on the amounts for the most recent quarter, multiplied by four.
(2)
Includes intercompany eliminations pertaining to self-insurance and other expenses.


See Company's Form 10-K and Form 10-Qs filed with the SEC for additional information


S-17.4