Net Income Per Common Share and Net Income Per Common Unit

(Amounts in thousands, except share and unit data)

Essex Property Trust, Inc.



	Three Months Ended June 30, 2016					Three Months Ended June 30, 2015
	Income		Weighted- average Common Shares	Per Common Share Amount		Income		Weighted- average Common Shares	Per Common Share Amount
Basic:
Net income available to common stockholders	$	72,013	65,451,110	$	1.10	$	45,555	64,810,184	$	0.70
Effect of Dilutive Securities	—		124,268			—		162,668
Diluted:
Net income available to common stockholders	$	72,013	65,575,378	$	1.10	$	45,555	64,972,852	$	0.70



	Six Months Ended June 30, 2016					Six Months Ended June 30, 2015
	Income		Weighted- average Common Shares	Per Common Share Amount		Income		Weighted- average Common Shares	Per Common Share Amount
Basic:
Net income available to common stockholders	$	149,994	65,428,382	$	2.29	$	104,918	64,499,545	$	1.63
Effect of Dilutive Securities	—		130,429			—		177,976
Diluted:
Net income available to common stockholders	$	149,994	65,558,811	$	2.29	$	104,918	64,677,521	$	1.62

Weighted average convertible limited partnership units of 2,223,928 and 2,182,025, 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 three months ended June 30, 2016 and 2015, respectively, and 2,225,897 and 2,183,163 for the six months ended June 30, 2016, and 2015, respectively, were excluded from the calculation of diluted EPS because they were anti-dilutive. The related income allocated to these convertible limited partnership units aggregated $2.4 million and $1.6 million for the three months ended June 30, 2016 and 2015, respectively, and $5.2 million and $3.6 million for the six months ended June 30, 2016 and 2015, respectively. Additionally, excludes 953,006 DownREIT units as they are anti-dilutive.

Stock options of 87,954 and 24,500 for the three months ended June 30, 2016 and 2015, respectively, and 87,954 and 36,956 for the six months ended June 30, 2016 and 2015, respectively, were excluded from the calculation of diluted earnings per share 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 periods ended and, therefore, were anti-dilutive.

Essex Portfolio, L.P.



	Three Months Ended June 30, 2016					Three Months Ended June 30, 2015
	Income		Weighted- average Common Units	Per Common Unit Amount		Income		Weighted- average Common Units	Per Common Unit Amount
Basic:
Net income available to common unitholders	$	74,463	67,675,038	$	1.10	$	47,088	66,992,209	$	0.70
Effect of Dilutive Securities	—		124,268			—		162,668
Diluted:
Net income available to common unitholders	$	74,463	67,799,306	$	1.10	$	47,088	67,154,877	$	0.70



	Six Months Ended June 30, 2016					Six Months Ended June 30, 2015
	Income		Weighted- average Common Units	Per Common Unit Amount		Income		Weighted- average Common Units	Per Common Unit Amount
Basic:
Net income available to common unitholders	$	155,228	67,654,279	$	2.29	$	108,514	66,682,708	$	1.63
Effect of Dilutive Securities	—		130,429			—		177,976
Diluted:
Net income available to common unitholders	$	155,228	67,784,708	$	2.29	$	108,514	66,860,684	$	1.62

Stock options of 87,954 and 24,500 for the three months ended June 30, 2016 and 2015, respectively, and 87,954 and 36,956 for the six months ended June 30, 2016 and 2015, respectively, were excluded from the calculation of diluted earnings per unit because the assumed proceeds per unit of these options plus the average unearned compensation were greater than the average market price of the common unit for the periods ended and, therefore, were anti-dilutive. Additionally, excludes 953,006 DownREIT units as they are anti-dilutive.