Net Income Per Common Share and Net Income Per Common Unit

12 Months Ended

Dec. 31, 2020

Net Income Per Common Share and Net Income Per Unit [Abstract]

Net Income Per Common Share and Net Income Per Common Unit

Essex Property Trust, Inc.

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


	2020					2019					2018
	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:
Net income available to common stockholders	$	568,870	65,454,057	$	8.69	$	439,286	65,840,422	$	6.67	$	390,153	66,041,058	$	5.91
Effect of Dilutive Securities
Stock options	—		16,678			—		99,033			—		44,031
DownREIT units	783		94,247			—		—			—		—
Diluted:
Net income available to common stockholders	$	569,653	65,564,982	$	8.69	$	439,286	65,939,455	$	6.66	$	390,153	66,085,089	$	5.90

The table above excludes from the calculations of diluted earnings per share weighted average convertible OP Units of 2,296,608, 2,300,478, and 2,274,941, which include vested Series Z-1 Incentive Units, 2014 Long-Term Incentive Plan Units, and 2015 Long-Term Incentive Plan Units, for the years ended December 31, 2020, 2019 and 2018, respectively, because they were anti-dilutive. The related income allocated to these convertible OP Units aggregated $20.0 million, $15.3 million, and $13.5 million for the years ended December 31, 2020, 2019 and 2018, respectively. Additionally, the table excludes all DownREIT units for which the Operating Partnership has the ability and intention to redeem the units for cash and does not consider them to be common stock equivalents.

Stock options of 403,458, 115,066, and 160,039, for the years ended December 31, 2020, 2019, and 2018, respectively, were excluded from the calculation of diluted earnings per share because the assumed proceeds per share of such 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.

Essex Portfolio, L.P.

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


	2020					2019					2018
	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:
Net income available to common unitholders	$	588,782	67,750,665	$	8.69	$	454,629	68,140,900	$	6.67	$	403,605	68,315,999	$	5.91
Effect of Dilutive Securities
Stock options	—		16,678			—		99,033			—		44,031
DownREIT units	783		94,247			—		—			—		—
Diluted:
Net income available to common unitholders	$	589,565	67,861,590	$	8.69	$	454,629	68,239,933	$	6.66	$	403,605	68,360,030	$	5.90

Stock options of 403,458, 115,066, and 160,039, for the years ended December 31, 2020, 2019, and 2018, 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 years ended and, therefore, were anti-dilutive. Additionally, the table excludes all DownREIT units for which the Operating Partnership has the ability and intention to redeem the units for cash and does not consider them to be common stock equivalents.