Real Estate Investments (Tables)

12 Months Ended

Dec. 31, 2023

Real Estate Investments, Net [Abstract]

Schedule of Real Estate Properties

The table below summarizes acquisition activity for the year ended December 31, 2023 ($ in millions):

Property Name	Location	Apartment Homes	Essex Ownership Percentage		Quarter in 2023	Purchase Price
Hacienda at Camarillo Oaks	Camarillo, CA	73	100	%	Q2	$	23.1
Total 2023		73				$	23.1

Sales of Real Estate Investments

The table below summarizes the disposition activity for the year ended December 31, 2023 ($ in millions):

Property Name (1)	Location	Apartment Homes	Ownership	Quarter in 2023	Sales Price
CBC and The Sweeps	Goleta, CA	239	EPLP	Q1	$	91.7	(2)
Total 2023		239			$	91.7

(1) In March 2023, the Company sold a land parcel located in Moorpark, CA, that had been held for future development, for $8.7 million and recognized a gain on sale of $4.7 million.

(2) The Company recognized a $54.5 million gain on sale.

Summary of Co-Investment

The carrying values of the Company’s co-investments as of December 31, 2023 and 2022 are as follows ($ in thousands, except in parenthetical):

	Weighted Average Essex Ownership Percentage (1)		December 31,
			2023		2022
Ownership interest in:
Wesco I, Wesco III, Wesco IV, Wesco V and Wesco VI (2)	54	%	$	144,766	$	178,552
BEXAEW, BEX II, BEX IV and 500 Folsom	50	%	224,119		238,537
Other (3)	52	%	68,493		74,742
Total operating and other co-investments, net			437,378		491,831
Total development co-investments	51	%	14,605		12,994
Total preferred interest co-investments (includes related party investments of $42.7 million and $87.1 million as of December 31, 2023 and 2022, respectively - Note 6 - Related Party Transactions for further discussion)			544,262		580,134
Total co-investments, net			$	996,245	$	1,084,959

(1)Weighted average Company ownership percentages are as of December 31, 2023.

(2)As of December 31, 2023 and 2022, the Company's investments in Wesco I, Wesco III, and Wesco IV were classified as a liability of $61.8 million and $41.7 million, respectively, due to distributions received in excess of the Company's investment.

(3)As of December 31, 2023 and 2022, the Company's investments in Expo and Century Towers were classified as a liability of $3.7 million and $0.8 million, respectively, 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,
	2023		2022
Combined balance sheets: (1)
Rental properties and real estate under development	$	5,123,164	$	4,955,051
Other assets	279,237		294,663
Total assets	$	5,402,401	$	5,249,714
Debt	$	3,622,609	$	3,397,113
Other liabilities	317,208		264,872
Equity	1,462,584		1,587,729
Total liabilities and equity	$	5,402,401	$	5,249,714
Company's share of equity	$	996,245	$	1,084,959

	Years ended December 31,
	2023		2022		2021
Combined statements of income: (1)
Property revenues	$	409,910	$	373,074	$	289,680
Property operating expenses	(158,520)		(140,175)		(115,023)
Net operating income	251,390		232,899		174,657
Interest expense	(154,038)		(100,913)		(65,172)
General and administrative	(20,594)		(20,579)		(17,885)
Depreciation and amortization	(174,028)		(164,186)		(133,787)
Net income	$	(97,270)	$	(52,779)	$	(42,187)
Company's share of net income (2)	$	10,561	$	26,030	$	111,721

(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 $7.6 million, $7.4 million, and $9.1 million for the years ended December 31, 2023, 2022, and 2021, respectively.