Net Income Per Common Share and Net Income Per Common Unit

6 Months Ended

Jun. 30, 2022

Net Income Per Common Share and Net Income Per Common Unit

($ in thousands, except share and unit data):

Essex Property Trust, Inc.


	Three Months Ended June 30, 2022					Three Months Ended June 30, 2021
	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	$	57,054	65,262,517	$	0.87	$	64,846	65,001,677	$	1.00
Effect of Dilutive Securities:
Stock options	—		27,086			—		79,069

Diluted:
Net income available to common stockholders	$	57,054	65,289,603	$	0.87	$	64,846	65,080,746	$	1.00


	Six Months Ended June 30, 2022					Six Months Ended June 30, 2021
	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	$	130,308	65,269,109	$	2.00	$	233,290	64,995,682	$	3.59
Effect of Dilutive Securities:
Stock options	—		38,463			—		52,334

Diluted:
Net income available to common stockholders	$	130,308	65,307,572	$	2.00	$	233,290	65,048,016	$	3.59

The table above excludes from the calculations of diluted earnings per share weighted average convertible OP Units of 2,277,145 and 2,293,760, which include vested 2014 Long-Term Incentive Plan Units, and 2015 Long-Term Incentive Plan Units, for the three months ended June 30, 2022 and 2021, respectively, and 2,279,790 and 2,293,782 for the six months ended June 30, 2022 and 2021, respectively, because they were anti-dilutive. The related income allocated to these convertible OP Units aggregated $2.0 million and $2.3 million for the three months ended June 30, 2022 and 2021, respectively, and $4.6 million and $8.2 million for the six months ended June 30, 2022 and 2021, respectively.

Stock options of 230,326 and 136,172 for the three months ended June 30, 2022 and 2021, respectively, and 124,892 and zero for the six months ended June 30, 2022 and 2021, 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 periods ended and, therefore, were anti-dilutive.

Essex Portfolio, L.P.


	Three Months Ended June 30, 2022					Three Months Ended June 30, 2021
	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	$	59,044	67,539,662	$	0.87	$	67,134	67,295,437	$	1.00
Effect of Dilutive Securities:
Stock options	—		27,086			—		79,069

Diluted:
Net income available to common unitholders	$	59,044	67,566,748	$	0.87	$	67,134	67,374,506	$	1.00


	Six Months Ended June 30, 2022					Six Months Ended June 30, 2021
	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	$	134,861	67,548,899	$	2.00	$	241,525	67,289,464	$	3.59
Effect of Dilutive Securities:
Stock options	—		38,463			—		52,334

Diluted:
Net income available to common unitholders	$	134,861	67,587,362	$	2.00	$	241,525	67,341,798	$	3.59

Stock options of 230,326 and 136,172 for the three months ended June 30, 2022 and 2021, respectively, and 124,892 and zero for the six months ended June 30, 2022 and 2021, 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.