Net Income Per Common Share and Net Income Per Common Unit

9 Months Ended

Sep. 30, 2023

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 September 30, 2023					Three Months Ended September 30, 2022
	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	$	87,282	64,184,180	$	1.36	$	92,842	65,059,678	$	1.43
Effect of Dilutive Securities:
Stock options	—		1,840			—		8,112

Diluted:
Net income available to common stockholders	$	87,282	64,186,020	$	1.36	$	92,842	65,067,790	$	1.43


	Nine Months Ended September 30, 2023					Nine Months Ended September 30, 2022
	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	$	340,434	64,274,085	$	5.30	$	223,150	65,198,532	$	3.42
Effect of Dilutive Securities:
Stock options	—		1,194			—		27,235

Diluted:
Net income available to common unitholders	$	340,434	64,275,279	$	5.30	$	223,150	65,225,767	$	3.42

The table above excludes from the calculations of diluted earnings per share weighted average convertible OP Units of 2,259,236 and 2,273,399, which include vested 2014 Long-Term Incentive Plan Units and 2015 Long-Term Incentive Plan Units, for the three months ended September 30, 2023 and 2022, respectively, and 2,261,832 and 2,277,636 for the nine months ended September 30, 2023 and 2022, respectively, because they were anti-dilutive. The related income allocated to these convertible OP Units aggregated $3.1 million and $3.2 million for the three months ended September 30, 2023 and 2022, respectively, and $12.0 million and $7.8 million for the nine months ended September 30, 2023 and 2022, respectively.

Stock options of 461,873 and 271,018 for the three months ended September 30, 2023 and 2022, respectively, and 501,187 and 230,326 for the nine months ended September 30, 2023 and 2022, 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 September 30, 2023					Three Months Ended September 30, 2022
	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	$	90,354	66,443,416	$	1.36	$	96,089	67,333,077	$	1.43
Effect of Dilutive Securities:
Stock options	—		1,840			—		8,112

Diluted:
Net income available to common unitholders	$	90,354	66,445,256	$	1.36	$	96,089	67,341,189	$	1.43


	Nine Months Ended September 30, 2023					Nine Months Ended September 30, 2022
	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	$	352,416	66,535,917	$	5.30	$	230,950	67,476,168	$	3.42
Effect of Dilutive Securities:
Stock options	—		1,115			—		27,235

Diluted:
Net income available to common unitholders	$	352,416	66,537,111	$	5.30	$	230,950	67,503,403	$	3.42

Stock options of 461,873 and 271,018 for the three months ended September 30, 2023 and 2022, respectively, and 501,187 and 230,326 for the nine months ended September 30, 2023 and 2022, 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.