Real Estate Investments (Tables)

12 Months Ended

Dec. 31, 2022

Real Estate Investments, Net [Abstract]

The table below summarizes acquisition activity for the year ended December 31, 2022 ($ in millions):

For the year ended December 31, 2022, the Company purchased two communities consisting of 211 apartment homes for approximately $32.9 million.


Property Name	Location	Apartment Homes	Essex Ownership Percentage		Quarter in 2022	Purchase Price
Regency Palm Court and Windsor Court (1)	Los Angeles, CA	211	100	%	Q3	$	32.9

Total 2022		211				$	32.9

(1) In July 2022, the Company acquired its joint venture partner's 49.8% minority interest in two apartment communities, consisting of 211 apartment homes located in Los Angeles, CA, for a contract price of $32.9 million. As a result of this acquisition, the Company realized a gain on remeasurement of co-investment of $17.4 million upon consolidation.

Sales of Real Estate Investments

The table below summarizes the disposition activity for the year ended December 31, 2022 ($ in millions):

Property Name

Location

Apartment Homes

Ownership

Quarter in 2022

Sales Price

Anavia

Anaheim, CA

250

EPLP

160.0

(1)

Total 2022

250

160.0

(1) The Company recognized a $94.4 million gain on sale.

Summary of Co-Investment

The carrying values of the Company’s co-investments as of December 31, 2022 and 2021 are as follows ($ in thousands, except in parenthetical):


	Weighted Average Essex Ownership		December 31,
	Percentage (1)		2022		2021
Ownership interest in:
Wesco I, Wesco III, Wesco IV, Wesco V and Wesco VI (2)	54	%	$	178,552	$	168,198
BEXAEW, BEX II, BEX IV and 500 Folsom	50	%	238,537		270,550
Other (3)	52	%	74,742		126,503
Total operating and other co-investments, net			491,831		565,251
Total development co-investments	51	%	12,994		11,076
Total preferred interest co-investments (includes related party investments of $87.1 million and $71.1 million as of December 31, 2022 and December 31, 2021, respectively - Note 6 - Related Party Transactions for further discussion)			580,134		565,930
Total co-investments, net			$	1,084,959	$	1,142,257

(1)Weighted average Company ownership percentages are as of December 31, 2022.

(2)As of December 31, 2022, the Company's investments in Wesco I, Wesco III, and Wesco IV were classified as a liability of $41.7 million due to distributions received in excess of the Company's investment. As of December 31, 2021, the Company's investment in Wesco I was classified as a liability of $35.3 million due to distributions received in excess of the Company's investment.

(3)As of December 31, 2022, the Company's investments in Expo and Century Towers were classified as a liability of $0.8 million due to distributions received in excess of the Company's investment. As of December 31, 2021, the Company's investment in Expo was classified as a liability of $0.2 million due to distributions received in excess of the Company's investment. The weighted average Essex ownership percentage excludes our investments in non-core technology co-investments which are carried at fair value.

Summarized Financial Statement for Co-Investment Accounted for Under the Equity Method

The combined summarized financial information of co-investments is as follows ($ in thousands):


	December 31,
	2022		2021
Combined balance sheets: (1)
Rental properties and real estate under development	$	4,955,051	$	4,603,465
Other assets	294,663		278,411
Total assets	$	5,249,714	$	4,881,876
Debt	$	3,397,113	$	3,046,765
Other liabilities	264,872		200,129
Equity	1,587,729		1,634,982
Total liabilities and equity	$	5,249,714	$	4,881,876
Company's share of equity	$	1,084,959	$	1,142,257


	Years ended December 31,
	2022		2021		2020
Combined statements of income: (1)
Property revenues	$	373,074	$	289,680	$	300,624
Property operating expenses	(140,175)		(115,023)		(108,682)
Net operating income	232,899		174,657		191,942

Interest expense	(100,913)		(65,172)		(78,962)
General and administrative	(20,579)		(17,885)		(17,079)

Depreciation and amortization	(164,186)		(133,787)		(117,836)
Net income	$	(52,779)	$	(42,187)	$	(21,935)
Company's share of net income (2)	$	26,030	$	111,721	$	66,512

(1)Includes preferred equity investments held by the Company.

(2)Includes the Company's share of equity income from joint ventures and preferred equity investments, gain on sales of co-investments, co-investment promote income and income from early redemption of preferred equity investments. Includes related party income of $7.4 million, $9.1 million, and $8.6 million for the years ended December 31, 2022, 2021, and 2020, respectively.