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 September 30, 2016					Three Months Ended September 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	$	65,561	65,507,669	$	1.00	$	42,323	65,138,868	$	0.65
Effect of Dilutive Securities	—		109,882			—		158,682
Diluted:
Net income available to common stockholders	$	65,561	65,617,551	$	1.00	$	42,323	65,297,550	$	0.65



	Nine Months Ended September 30, 2016					Nine Months Ended September 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	$	215,555	65,455,004	$	3.29	$	147,241	64,714,994	$	2.28
Effect of Dilutive Securities	—		123,657			—		177,776
Diluted:
Net income available to common stockholders	$	215,555	65,578,661	$	3.29	$	147,241	64,892,770	$	2.27

The tables above exclude from the calculations of diluted EPS weighted average convertible limited partnership units of 2,220,952 and 2,177,630, 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 September 30, 2016 and 2015, respectively, and 2,224,236 and 2,181,299 for the nine months ended September 30, 2016, and 2015, respectively, because they were anti-dilutive. The related income allocated to these convertible limited partnership units aggregated $2.2 million and $1.5 million for the three months ended September 30, 2016 and 2015, respectively, and $7.5 million and $5.1 million for the nine months ended September 30, 2016 and 2015, respectively. Additionally, excludes all DownREIT units as they are anti-dilutive.

Stock options of 40,900 and 24,500 for the three months ended September 30, 2016 and 2015, respectively, and 76,054 and 24,500 for the nine months ended September 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 September 30, 2016					Three Months Ended September 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	$	67,784	67,728,621	$	1.00	$	43,794	67,316,498	$	0.65
Effect of Dilutive Securities	—		109,882			—		158,682
Diluted:
Net income available to common unitholders	$	67,784	67,838,503	$	1.00	$	43,794	67,475,180	$	0.65



	Nine Months Ended September 30, 2016					Nine Months Ended September 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	$	223,012	67,679,240	$	3.30	$	152,356	66,896,293	$	2.28
Effect of Dilutive Securities	—		123,657			—		177,776
Diluted:
Net income available to common unitholders	$	223,012	67,802,897	$	3.29	$	152,356	67,074,069	$	2.27

Stock options of 40,900 and 24,500 for the three months ended September 30, 2016 and 2015, respectively, and 76,054 and 24,500 for the nine months ended September 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 all DownREIT units as they are anti-dilutive.