Net Income Per Common Share and Net Income Per Common Unit

Essex Property Trust, Inc.

Basic and diluted income from continuing and discontinued operations per share is calculated as follows for the years ended December 31 ($ in thousands, except share and per share amounts):



	2015					2014					2013
	Income		Weighted- average Common Shares	Per Common Share Amount		Income		Weighted- average Common Shares	Per Common Share Amount		Income		Weighted- average Common Shares	Per Common Share Amount
Basic:
Income from continuing operations available to common stockholders	$	226,865	64,871,717	$	3.50	$	116,859	56,546,959	$	2.07	$	121,324	37,248,960	$	3.26
Income from discontinued operations available to common stockholders	—		64,871,717	—		—		56,546,959	—		29,487		37,248,960	0.79
	$	226,865		$	3.50	$	116,859		$	2.07	$	150,811		$	4.05
Effect of Dilutive Securities ⁽¹⁾	—		189,968			—		149,566			—		86,335
Diluted:
Income from continuing operations available to common stockholders ⁽¹⁾	$	226,865	65,061,685	$	3.49	$	116,859	56,696,525	$	2.06	$	121,324	37,335,295	$	3.25
Income from discontinued operations available to common stockholders	—		65,061,685	—		—		56,696,525	—		29,487		37,335,295	0.79
	$	226,865		$	3.49	$	116,859		$	2.06	$	150,811		$	4.04

⁽¹⁾

Weighted average convertible limited partnership units of 2,182,467, 2,224,707, and 2,131,425, which include vested Series Z Incentive Units, Series Z-1 Incentive Units, 2014 Long-Term Incentive Plan Units, and 2015 Long-Term Incentive Plan Units, for the years ended December 31, 2015, 2014 and 2013, respectively, were not included in the determination of diluted earnings per share calculation because they were anti-dilutive. Additionally, excludes 963,172 DownREIT units as they are anti-dilutive.

Stock options of 54,100, 10,843, and 168,325, for the years ended December 31, 2015, 2014, and 2013, respectively, were not included in the diluted earnings per share calculation because the assumed proceeds per share of these options plus the average unearned compensation were greater than the average market price of the common stock for the years ended and, therefore, were anti-dilutive.

All shares of cumulative convertible Series H preferred interest have been excluded from diluted earnings per unit for the years ended 2015, 2014, and 2013 respectively, as the effect was anti-dilutive. All shares of cumulative convertible Series G preferred interest have been excluded from diluted earnings per unit for the years ended 2014 and 2013 respectively, as the effect was anti-dilutive.

Essex Portfolio, L.P.

Basic and diluted income from continuing and discontinued operations per unit is calculated as follows for the years ended December 31 ($ in thousands, except unit and per unit amounts):



	2015					2014					2013
	Income		Weighted- average Common Units	Per Common Unit Amount		Income		Weighted- average Common Units	Per Common Unit Amount		Income		Weighted- average Common Units	Per Common Unit Amount
Basic:
Income from continuing operations available to common unitholders	$	234,689	67,054,184	$	3.50	$	121,726	58,771,666	$	2.07	$	128,576	39,380,385	$	3.27
Income from discontinued operations	—		67,054,184	—		—		58,771,666	—		31,173		39,380,385	0.79
Income available to common unitholders	$	234,689		$	3.50	$	121,726		$	2.07	$	159,749		$	4.06
Effect of Dilutive Securities ⁽¹⁾	—		189,968			—		149,566			—		86,335
Diluted:
Income from continuing operations available to common unitholders ⁽¹⁾	$	234,689	67,244,152	$	3.49	$	121,726	58,921,232	$	2.07	$	128,576	39,466,720	$	3.26
Income from discontinued operations	—		67,244,152	—		—		58,921,232	—		31,173		39,466,720	0.79
Income available to common unitholders	$	234,689		$	3.49	$	121,726		$	2.07	$	159,749		$	4.05

⁽¹⁾

Stock options of 54,100, 10,843, and 168,325, for the years ended December 31, 2015, 2014, and 2013, respectively, were not included in the diluted earnings per unit calculation because the assumed proceeds per share of these options plus the average unearned compensation were greater than the average market price of the common shares for the years ended and, therefore, were anti-dilutive. Additionally, excludes 963,172 DownREIT units as they are anti-dilutive.

The cumulative convertible Series H preferred interest have been excluded from diluted earnings per unit for the years ended 2015, 2014, and 2013 respectively, as the effect was anti-dilutive. The cumulative convertible Series G preferred interest have been excluded from diluted earnings per unit for the years ended 2014 and 2013 respectively, as the effect was anti-dilutive.