Net Income Per Common Share and Net Income Per Common Unit

12 Months Ended

Dec. 31, 2023

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):


	2023					2022					2021
	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	$	405,825	64,252,232	$	6.32	$	408,315	65,079,764	$	6.27	$	488,554	65,051,465	$	7.51
Effect of dilutive securities
Stock options	—		1,153			—		18,422			—		37,409

Diluted:
Net income available to common stockholders	$	405,825	64,253,385	$	6.32	$	408,315	65,098,186	$	6.27	$	488,554	65,088,874	$	7.51

The table above excludes from the calculations of diluted earnings per share weighted average convertible OP Units of 2,261,071, 2,276,341 and 2,289,391, which include 2014 Long-Term Incentive Plan Units and 2015 Long-Term Incentive Plan Units, for the years ended December 31, 2023, 2022 and 2021, respectively, because they were anti-dilutive. The related income allocated to these convertible OP Units aggregated $14.3 million, $14.3 million and $17.2 million for the years ended December 31, 2023, 2022 and 2021, respectively.

Stock options of 508,276, 253,845, and 116,380 for the years ended December 31, 2023, 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 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):


	2023					2022					2021
	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	$	420,109	66,513,303	$	6.32	$	422,612	67,356,105	$	6.27	$	505,745	67,340,856	$	7.51
Effect of dilutive securities
Stock options	—		1,153			—		18,422			—		37,409

Diluted:
Net income available to common unitholders	$	420,109	66,514,456	$	6.32	$	422,612	67,374,527	$	6.27	$	505,745	67,378,265	$	7.51

Stock options of 508,276, 253,845, and 116,380, for the years ended December 31, 2023, 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 years ended and, therefore, were anti-dilutive.