Organization and Basis of Presentation (Tables)

9 Months Ended

Sep. 30, 2020

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Components of marketable securities

As of September 30, 2020 and December 31, 2019, marketable securities consist of the following ($ in thousands):

	September 30, 2020
	Amortized Cost/Cost		Gross Unrealized Gain (Loss)		Carrying Value		Allowance for Credit Losses
Equity securities:
Investment funds - debt securities	$	31,127	$	1,135	$	32,262
Common stock and stock funds	67,636		4,551		72,187
Debt securities:
Available for sale
Investment-grade unsecured debt	1,049		(105)		944		—
Held to maturity
Mortgage backed security	29,578		—		29,578		13,644
Total - Marketable securities	$	129,390	$	5,581	$	134,971	$	13,644

	December 31, 2019
	Amortized Cost/Cost		Gross Unrealized Gain (Loss)		Carrying Value
Equity securities:
Investment funds - debt securities	$	29,588	$	544	$	30,132
Common stock and stock funds	34,941		2,927		37,868
Debt securities:
Available for sale
U.S. treasury securities	2,421		13		2,434
Investment-grade unsecured bonds	1,048		60		1,108
Held to maturity
Mortgage backed securities	72,651		—		72,651
Total - Marketable securities	$	140,649	$	3,544	$	144,193

Schedule of allowance for credit loss

The following table presents the allowance for credit losses rollforward for the mortgage backed security ($ in thousands):

Balance at December 31, 2019	$	—
Impact of adoption ASC 326 (1)	13,644
Provision for credit losses	—
Balance at September 30, 2020	$	13,644

(1) As part of the adoption of ASC 326, effective January 1, 2020, the Company recorded a gross up of the mortgage backed security and related allowance for credit losses of $13.6 million. This gross up had no effect on the Company's consolidated results of operations or financial position.

The following table presents the activity in the allowance for credit losses for notes and other receivables by loan type ($ in thousands):

	Mezzanine Loans		Bridge Loans		Total
Balance at December 31, 2019	$	—	$	—	$	—
Impact of adoption ASC 326	147		43		190
Provision for credit losses	25		(43)		(18)
Balance at September 30, 2020	$	172	$	—	$	172

Changes in accumulated other comprehensive income (loss)

Changes in Accumulated Other Comprehensive Loss, Net by Component

Essex Property Trust, Inc.

($ in thousands):

	Change in fair value and amortization of swap settlements		Unrealized gain/(loss) on available for sale securities		Total
Balance at December 31, 2019	$	(13,989)	$	101	$	(13,888)
Other comprehensive loss before reclassification	2,263		(172)		2,091
Amounts reclassified from accumulated other comprehensive loss	(5,003)		—		(5,003)
Other comprehensive loss	(2,740)		(172)		(2,912)
Balance at September 30, 2020	$	(16,729)	$	(71)	$	(16,800)

Changes in Accumulated Other Comprehensive Loss, by Component

Essex Portfolio, L.P.

($ in thousands):

	Change in fair value and amortization of swap settlements		Unrealized gain/(loss) on available for sale securities		Total
Balance at December 31, 2019	$	(10,536)	$	104	$	(10,432)
Other comprehensive loss before reclassification	2,341		(178)		2,163
Amounts reclassified from accumulated other comprehensive loss	(5,178)		—		(5,178)
Other comprehensive loss	(2,837)		(178)		(3,015)
Balance at September 30, 2020	$	(13,373)	$	(74)	$	(13,447)

Schedule of changes to the redemption value of noncontrolling interests

The changes to the redemption value of redeemable noncontrolling interests for the nine months ended September 30, 2020 is as follows ($ in thousands):

Balance at December 31, 2019	$	37,410
Reclassification due to change in redemption value and other	(6,691)
Redemptions	—
Balance at September 30, 2020	$	30,719

Schedule of cash and cash equivalents

The following table provides a reconciliation of cash, cash equivalents, and restricted cash reported within the condensed consolidated balance sheets that sum to the total of the same such amounts shown in the condensed consolidated statements of cash flows ($ in thousands):

	September 30, 2020		December 31, 2019		September 30, 2019		December 31, 2018
Cash and cash equivalents - unrestricted	$	558,446	$	70,087	$	74,031	$	134,465
Cash and cash equivalents - restricted	10,629		11,007		17,695		16,930
Total unrestricted and restricted cash and cash equivalents shown in the condensed consolidated statement of cash flows	$	569,075	$	81,094	$	91,726	$	151,395

Schedule of restricted cash and cash equivalents

The following table provides a reconciliation of cash, cash equivalents, and restricted cash reported within the condensed consolidated balance sheets that sum to the total of the same such amounts shown in the condensed consolidated statements of cash flows ($ in thousands):

	September 30, 2020		December 31, 2019		September 30, 2019		December 31, 2018
Cash and cash equivalents - unrestricted	$	558,446	$	70,087	$	74,031	$	134,465
Cash and cash equivalents - restricted	10,629		11,007		17,695		16,930
Total unrestricted and restricted cash and cash equivalents shown in the condensed consolidated statement of cash flows	$	569,075	$	81,094	$	91,726	$	151,395