Exhibit 99.1

FOURTH QUARTER 2022

EARNINGS RELEASE AND SUPPLEMENTAL FINANCIAL INFORMATION

Table of Contents

Earnings Press Release	Pages 1 - 10

Consolidated Operating Results	S-1 & S-2

Consolidated Funds from Operations	S-3

Consolidated Balance Sheets	S-4

Debt Summary	S-5

Capitalization Data, Public Bond Covenants, Credit Ratings, and Selected Credit Ratios	S-6

Portfolio Summary by County	S-7

Operating Income by Quarter	S-8

Same-Property Operating Results by County, Quarter-to-Date	S-9

Same-Property Operating Results by County, Year-to-Date	S-9.1

Same-Property Operating Expenses, Quarter and Year-to-Date	S-10

Development Pipeline	S-11

Capital Expenditures	S-12

Co-Investments and Preferred Equity Investments	S-13

Assumptions for 2023 FFO Guidance Range.	S-14

Reconciliation of Projected EPS, FFO and Core FFO per diluted share	S-14.1

Summary of Apartment Community Acquisitions and Dispositions Activity	S-15

Delinquencies, Operating Statistics, and Same-Property Revenue Growth on a GAAP basis	S-16

2023 MSA Level Forecast: Supply, Jobs, and Apartment Market Conditions	S-17

Divergent Supply Trends in 2023 are Set to Benefit Essex's Relative Market Fundamentals	S-17.1

Reconciliations of Non-GAAP Financial Measure and Other Terms	S-18.1 – S-18.4

Essex Announces Fourth Quarter and Full-Year 2022

Results and 2023 Guidance

San Mateo, California—February 7, 2023—Essex Property Trust, Inc. (NYSE: ESS) (the “Company”) announced today its fourth quarter and full-year 2022 earnings results and related business activities.

Net Income, Funds from Operations (“FFO”), and Core FFO per diluted share for the three and twelve months ended December 31, 2022 are detailed below.

	Three Months Ended December 31,		%	Twelve Months Ended December 31,			%
	2022	2021	Change	2022		2021	Change
Per Diluted Share
Net Income	$2.86	$2.10	36.2%		$6.27	$7.51		-16.5%
Total FFO	$3.77	$4.30	-12.3%		$13.70	$13.98		-2.0%
Core FFO	$3.77	$3.25	16.0%		$14.51	$12.49		16.2%

Fourth Quarter and Full-Year 2022 Highlights:

•	Reported Net Income per diluted share for the fourth quarter of 2022 of $2.86, compared to $2.10 in the fourth quarter of 2021. For the full year, the Company reported Net Income per diluted share of $6.27 compared to $7.51 in 2021.

•	Grew Core FFO per diluted share by 16.0% compared to the fourth quarter of 2021 and 16.2% for full-year 2022, exceeding the high-end of the Company’s original guidance range.

•

Achieved same-property revenue and net operating income (“NOI”) growth of 10.5% and 13.3%, respectively, compared to the fourth quarter of 2021. For the full year, same-property revenue and NOI grew by 10.3% and 13.2%, respectively both exceeding the high-end of the Company’s original guidance range.

•	For the full year, the Company acquired or increased its ownership interest in three apartment communities for a total contract price of $215.9 million and disposed of one apartment community for a total contract price of $160.0 million.

•	For the full year, the Company committed $127.0 million to nine structured finance investments at a weighted average return of 10.2% and received $243.1 million in redemption proceeds from seven investments at a weighted average return of 10.4%.

•	Repurchased 149,209 shares of common stock in the fourth quarter, totaling $31.8 million at an average price per share of $212.95. For the full year, the Company repurchased 740,053 shares of its common stock, totaling $189.7 million at an average price per share of $256.37.

•	As of February 6, 2023, the Company had approximately $1.3 billion in liquidity via undrawn capacity on its unsecured credit facilities, cash, and marketable securities.

1100 Park Place Suite 200 San Mateo California 94403 telephone 650 655 7800 facsimile 650 655 7810

www.essex.com

“Essex posted solid results in 2022, exceeding our expectations and continuing our recovery from the severe economic disruption from the COVID-19 pandemic. Strong job growth on the West Coast contributed to our positive results, driving demand in support of one of the largest increases to Core FFO in the Company’s history. The West Coast housing markets will soon be fully recovered from debilitating regulations established in the initial phases of the COVID-19 pandemic, setting the stage for results that are more consistent with our long-term track record of outperformance”, stated Michael J. Schall, President and CEO. Mr. Schall continued, “In connection with my planned retirement as CEO, I am highly confident that the Company’s culture of disciplined capital allocation and value creation is in capable hands with Angela Kleiman and her leadership team, which I believe will drive shareholder returns for many years to come.”

Same-Property Operations

Same-property operating results exclude any properties that are not comparable for the periods presented. The table below illustrates the percentage change in same-property gross revenues for the quarter ended December 31, 2022 compared to the quarter ended December 31, 2021, and the sequential percentage change for the quarter ended December 31, 2022 compared to the quarter ended September 30, 2022, by submarket for the Company:

	Q4 2022 vs. Q4 2021	Q4 2022 vs. Q3 2022	% of Total
	Revenue Change	Revenue Change	Q4 2022 Revenue
Southern California
Los Angeles County	9.9%	1.1%	18.7%
Orange County	10.5%	2.0%	10.9%
San Diego County	14.2%	1.7%	8.8%
Ventura County	8.7%	-0.9%	4.0%
Total Southern California	10.8%	1.3%	42.4%
Northern California
Santa Clara County	10.8%	0.7%	18.6%
Alameda County	5.3%	-0.7%	8.0%
San Mateo County	11.5%	-2.2%	4.6%
Contra Costa County	7.3%	-0.5%	5.5%
San Francisco	8.5%	0.4%	2.7%
Total Northern California	9.0%	-0.1%	39.4%
Seattle Metro	12.9%	1.8%	18.2%
Same-Property Portfolio	10.5%	0.8%	100.0%

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The table below illustrates the components that drove the change in same-property revenues on a year-over-year basis for the three and twelve months ended December 31, 2022, and on a sequential basis for the three months ended December 31, 2022.

Same-Property Revenue Components	Q4 2022 vs. Q4 2021	YTD 2022 vs. YTD 2021	Q4 2022 vs. Q3 2022
Scheduled Rents	8.2%	7.2%	1.0%
Delinquencies	0.7%	0.7%	0.3%
Cash Concessions	1.0%	2.3%	-0.8%
Vacancy⁽¹⁾	-0.3%	-0.6%	0.0%
Other Income	0.9%	0.7%	0.3%
2022 Same-Property Revenue Growth	10.5%	10.3%	0.8%

(1)	Higher vacancy in Q4 2022 and full-year 2022 is primarily attributable to above-average turnover related to delinquency.

	Year-Over-Year Change			Year-Over-Year Change
	Q4 2022 compared to Q4 2021			YTD 2022 compared to YTD 2021
	Revenue	Operating Expenses	NOI	Revenue	Operating Expenses	NOI
Southern California	10.8%	4.9%	13.3%	11.3%	4.6%	14.3%
Northern California	9.0%	4.4%	11.1%	8.4%	4.8%	10.1%
Seattle Metro	12.9%	1.0%	18.5%	12.0%	-0.1%	17.9%
Same-Property Portfolio	10.5%	4.0%	13.3%	10.3%	3.8%	13.2%

	Sequential Change
	Q4 2022 compared to Q3 2022
	Revenue	Operating Expenses	NOI
Southern California	1.3%	-0.8%	2.1%
Northern California	-0.1%	-2.6%	0.9%
Seattle Metro	1.8%	-0.3%	2.7%
Same-Property Portfolio	0.8%	-1.5%	1.8%

	Financial Occupancies
	Quarter Ended
	12/31/2022	9/30/2022	12/31/2021
Southern California	96.4%	96.2%	96.2%
Northern California	95.8%	96.0%	96.1%
Seattle Metro	95.8%	95.4%	95.7%
Same-Property Portfolio	96.0%	96.0%	96.1%

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Investment Activity

Dispositions

In November 2022, the Company sold a community located in Anaheim, CA, containing 250 apartment homes, for a total contract price of $160.0 million, or $640,000 per apartment home at a 4.3% disposition yield. The Company recognized a $94.4 million gain on sale during the quarter, which has been excluded from Total and Core FFO.

Other Investments

In October 2022, the Company originated a subordinated loan investment for the development of a multifamily community totaling $32.1 million at a return of 11.3%. The investment is expected to be fully funded by the second quarter of 2023. For the full year, the Company committed $127.0 million to seven preferred equity investments and two subordinated loan investments at a weighted average return of 10.2%.

In the fourth quarter of 2022, the Company received cash proceeds of $124.7 million from the full redemption of one preferred equity investment and two subordinated loan investments at a weighted average return of 10.1%. For the full year, the Company received cash proceeds of $243.1 million from the full redemption of three preferred equity investments and two subordinated loan investments and the partial redemption of two preferred equity investments at a weighted average return of 10.4%.

liquidity and balance sheet

Common Stock

In the fourth quarter of 2022, the Company repurchased 149,209 shares of its common stock totaling $31.8 million, including commissions, at an average price per share of $212.95. For the full year, the Company repurchased 740,053 shares of its common stock totaling $189.7 million, including commissions, at an average price per share of $256.37.

Subsequent to quarter end through February 6, 2023, the Company repurchased 63,700 shares of its common stock totaling $13.4 million, including commissions, at an average price per share of $210.98. As of February 6, 2023, the Company had $384.9 million of purchase authority remaining under the Company’s stock repurchase plan.

Balance Sheet

In October 2022, the Company obtained a new $300.0 million unsecured term loan priced at Adjusted SOFR plus 0.85%. The loan has been swapped to an all-in fixed rate of 4.2% and matures in October 2024 with three 12-month extension options, exercisable at the Company’s option. The loan includes a 6-month delayed draw feature with the proceeds expected to be drawn in April 2023 to repay the Company’s $300.0 million unsecured notes due in May 2023. As a result, the Company currently anticipates no refinancing needs until 2024.

As of February 6, 2023, the Company had approximately $1.3 billion in liquidity via undrawn capacity on its unsecured credit facilities, cash, and marketable securities.

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2023 Full-Year Guidance and Key Assumptions

Per Diluted Share	Range	Midpoint
Net Income	$5.35 - $5.79	$5.57
Total FFO	$14.53 - $14.97	$14.75
Core FFO	$14.53 - $14.97	$14.75
Q1 2023 Core FFO	$3.51 - $3.63	$3.57

U.S. Economic Assumptions
GDP Growth	0.4%
Job Growth	-0.2%

ESS Markets Economic Assumptions
Job Growth	0.4%
Market Rent Growth	2.0%

Estimated Same-Property Portfolio Growth based on 50,064 Apartment Homes		Midpoint Cash-Basis	Midpoint GAAP-Basis
Revenues	3.25% to 4.75%	4.00%	4.40%
Operating Expenses	4.50% to 5.50%	5.00%	5.00%
Net Operating Income	2.30% to 4.90%	3.60%	4.10%

Other Key Assumptions

•

Acquisition and disposition investment activities will be subject to market conditions and cost of capital, consistent with the Company’s historical practice of creating NAV and FFO per share.

•

Structured finance redemptions are expected to be approximately $100 million, the proceeds of which will be reinvested back into structured finance investments or other new investments, subject to market conditions and cost of capital.

•

Total development spending in 2023 for one existing project under construction is expected to be approximately $15 million at the Company’s pro rata share. The Company does not currently plan to start any new developments during 2023.

•

Revenue generating capital expenditures are expected to be approximately $50 - $100 million at the Company’s pro rata share.

2023 Core FFO Per Diluted Share Guidance Midpoint versus Full-Year 2022

The table below provides a summary of income statement changes between the Company’s 2022 Core FFO per diluted share and its 2023 Core FFO per diluted share guidance midpoint.

2023 Core FFO Per Diluted Share Guidance Midpoint versus 2022	Midpoint
2022 Core FFO Per Diluted Share	$	14.51
NOI from Consolidated Communities		0.58
Net Interest Expense (Consolidated)		(0.12	)
Interest and Other Income		(0.06	)
FFO from Co-Investments		(0.15	)
G&A and Other		(0.10	)
Impact from Weighted Average Shares Outstanding		0.09
2023 Core FFO Per Diluted Share Guidance Midpoint	$	14.75

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Notable Impacts to The Midpoint of 2023 and Q1 2023 Core FFO Per Diluted Share

	Full-Year 2023 vs. 2022	Q1 2023 vs. Q4 2022	Commentary
Net Delinquency⁽¹⁾	($0.18)	($0.12)	Anticipated to be worse in 2023 due to majority of government reimbursements processed in 2022 and uncertainty regarding timing of evictions in Los Angeles. Net delinquency is forecasted to reduce same-property revenue growth by 70 basis points in 2023. The Company has cumulative uncollected cash delinquencies of $89.9M since the start of COVID which it continues to work to collect.
Total Interest Expense (at Pro Rata)	($0.32)	($0.02)	Attributed to increases in short-term interest rates by the Federal Reserve and higher borrowing costs on refinancing. Essex has low variable rate exposure with approximately 4% on a consolidated basis and approximately 8% including its pro rata share in co-investments.
Structured Finance Income	($0.07)	($0.03)	Due to the timing of redemptions in the fourth quarter of 2022 as well as a preferred equity investment in Oakland for which the Company is no longer accruing income. The remainder of the Company's structured finance portfolio continues to perform as expected.
Total Impact ($)	($0.57)	($0.17)⁽²⁾
Total Impact (%)	3.9%	4.5%

(1)

For additional details regarding the Company’s net delinquency, please see page S-16 of the supplemental financial information.

(2)

The remaining $0.03 of sequential decline compared to Q4 2022 is primarily attributable to increases in operating expenses.

For additional details regarding the Company’s 2023 FFO guidance range, please see page S-14 of the supplemental financial information.

Conference Call with Management

The Company will host an earnings conference call with management to discuss its quarterly results on Wednesday, February 8, 2023 at 10:00 a.m. PT (1:00 p.m. ET), which will be broadcast live via the Internet at www.essex.com, and accessible via phone by dialing toll-free, (877) 407-0784, or toll/international, (201) 689-8560. No passcode is necessary.

A rebroadcast of the live call will be available online for 30 days and digitally for 7 days. To access the replay online, go to www.essex.com and select the fourth quarter 2022 earnings link. To access the replay, dial (844) 512-2921 using the replay pin number 13735125. If you are unable to access the information via the Company’s website, please contact the Investor Relations Department at investors@essex.com or by calling (650) 655-7800.

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Corporate Profile

Essex Property Trust, Inc., an S&P 500 company, is a fully integrated real estate investment trust (REIT) that acquires, develops, redevelops, and manages multifamily residential properties in selected West Coast markets. Essex currently has ownership interests in 252 apartment communities comprising approximately 62,000 apartment homes with an additional property in active development. Additional information about the Company can be found on the Company’s website at www.essex.com.

This press release and accompanying supplemental financial information has been furnished to the Securities and Exchange Commission electronically on Form 8-K and can be accessed from the Company’s website at www.essex.com. If you are unable to obtain the information via the Web, please contact the Investor Relations Department at (650) 655-7800.

FFO RECONCILIATION

FFO, as defined by the National Association of Real Estate Investment Trusts (“NAREIT”), is generally considered by industry analysts as an appropriate measure of performance of an equity REIT. Generally, FFO adjusts the net income of equity REITs for non-cash charges such as depreciation and amortization of rental properties, impairment charges, gains on sales of real estate and extraordinary items. Management considers FFO and FFO which excludes non-core items, which is referred to as “Core FFO,” to be useful supplemental operating performance measures of an equity REIT because, together with net income and cash flows, FFO and Core FFO provide investors with additional bases to evaluate the operating performance and ability of a REIT to incur and service debt and to fund acquisitions and other capital expenditures and to pay dividends. By excluding gains or losses related to sales of depreciated operating properties and excluding real estate depreciation (which can vary among owners of identical assets in similar condition based on historical cost accounting and useful life estimates), FFO can help investors compare the operating performance of a real estate company between periods or as compared to different companies. By further adjusting for items that are not considered part of the Company’s core business operations, Core FFO allows investors to compare the core operating performance of the Company to its performance in prior reporting periods and to the operating performance of other real estate companies without the effect of items that by their nature are not comparable from period to period and tend to obscure the Company’s actual operating results. FFO and Core FFO do not represent net income or cash flows from operations as defined by U.S. generally accepted accounting principles (“GAAP”) and are not intended to indicate whether cash flows will be sufficient to fund cash needs. These measures should not be considered as alternatives to net income as an indicator of the REIT's operating performance or to cash flows as a measure of liquidity. FFO and Core FFO do not measure whether cash flow is sufficient to fund all cash needs including principal amortization, capital improvements and distributions to stockholders. FFO and Core FFO also do not represent cash flows generated from operating, investing or financing activities as defined under GAAP. Management has consistently applied the NAREIT definition of FFO to all periods presented. However, there is judgment involved and other REITs’ calculation of FFO may vary from the NAREIT definition for this measure, and thus their disclosures of FFO may not be comparable to the Company’s calculation.

The following table sets forth the Company’s calculation of diluted FFO and Core FFO for the three and twelve months ended December 31, 2022 and 2021 (in thousands, except for share and per share amounts):

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	Three Months Ended December 31,						Twelve Months Ended December 31,
Funds from Operations attributable to common stockholders and unitholders	2022			2021			2022			2021
Net income available to common stockholders	$	185,165		$	136,874		$	408,315		$	488,554
Adjustments:
Depreciation and amortization		135,758			132,179			539,319			520,066
Gains not included in FFO		(94,416	)		-			(111,839	)		(145,253	)
Impairment loss from unconsolidated co-investments		2,105			-			2,105			-
Depreciation and amortization from unconsolidated co-investments		18,053			16,467			72,585			61,059
Noncontrolling interest related to Operating Partnership units		6,497			4,788			14,297			17,191
Depreciation attributable to third party ownership and other		(357	)		(159	)		(1,421	)		(571	)
Funds from Operations attributable to common stockholders and unitholders	$	252,805		$	290,149		$	923,361		$	941,046
FFO per share – diluted	$	3.77		$	4.30		$	13.70		$	13.98
Expensed acquisition and investment related costs	$	1,884		$	39		$	2,132		$	203
Deferred tax (benefit) expense on unconsolidated co-investments ⁽¹⁾		(2,373	)		10,277			(10,236	)		15,668
Gain on sale of marketable securities		(6	)		(901	)		(12,436	)		(3,400	)
Change in unrealized (gains) losses on marketable securities, net		(5,573	)		(9,332	)		57,983			(33,104	)
Provision for credit losses		(317	)		251			(381	)		141
Equity loss (income) from non-core co-investments ⁽²⁾		6,928			(36,336	)		38,045			(55,602	)
Loss on early retirement of debt, net		-			28			2			19,010
Loss on early retirement of debt from unconsolidated co-investments		-			7			988			25
Co-investment promote income		-			-			(17,076	)		-
Income from early redemption of preferred equity investments and notes receivable		(811	)		(209	)		(1,669	)		(8,469	)
General and administrative and other, net		209			261			2,536			1,026
Insurance reimbursements, legal settlements, and other, net		(315	)		(35,044	)		(5,392	)		(35,234	)
Core Funds from Operations attributable to common stockholders and unitholders	$	252,431		$	219,190		$	977,857		$	841,310
Core FFO per share – diluted	$	3.77		$	3.25		$	14.51		$	12.49
Weighted average number of shares outstanding diluted ⁽³⁾		67,003,718			67,480,346			67,374,526			67,335,261

(1)	Represents deferred tax (benefit) expense related to net unrealized gains or losses on technology co-investments.

(2)	Represents the Company's share of co-investment loss (income) from technology co-investments.

(3)	Assumes conversion of all outstanding limited partnership units in Essex Portfolio, L.P. (the “Operating Partnership”) into shares of the Company’s common stock and excludes DownREIT limited partnership units.

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Net Operating Income (“NOI”) and Same-Property NOI Reconciliations

NOI and Same-Property NOI are considered by management to be important supplemental performance measures to earnings from operations included in the Company’s consolidated statements of income. The presentation of same-property NOI assists with the presentation of the Company’s operations prior to the allocation of depreciation and any corporate-level or financing-related costs. NOI reflects the operating performance of a community and allows for an easy comparison of the operating performance of individual communities or groups of communities. In addition, because prospective buyers of real estate have different financing and overhead structures, with varying marginal impacts to overhead by acquiring real estate, NOI is considered by many in the real estate industry to be a useful measure for determining the value of a real estate asset or group of assets. The Company defines same-property NOI as same-property revenues less same-property operating expenses, including property taxes. Please see the reconciliation of earnings from operations to NOI and same-property NOI, which in the table below is the NOI for stabilized properties consolidated by the Company for the periods presented (dollars in thousands):

	Three Months Ended December 31,						Twelve Months Ended December 31,
	2022			2021			2022			2021
Earnings from operations	$	228,143		$	101,262		$	595,229		$	529,995
Adjustments:
Corporate-level property management expenses		10,172			9,076			40,704			36,211
Depreciation and amortization		135,758			132,179			539,319			520,066
Management and other fees from affiliates		(2,826	)		(2,431	)		(11,139	)		(9,138	)
General and administrative		16,036			17,092			56,577			51,838
Expensed acquisition and investment related costs		1,884			39			2,132			203
Gain on sale of real estate and land		(94,416	)		-			(94,416	)		(142,993	)
NOI		294,751			257,217			1,128,406			986,182
Less: Non-same property NOI		(22,437	)		(16,854	)		(76,027	)		(56,267	)
Same-Property NOI	$	272,314		$	240,363		$	1,052,379		$	929,915

Safe Harbor Statement Under The Private Litigation Reform Act of 1995:

This press release includes “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements are statements which are not historical facts, including statements regarding the Company's expectations, estimates, assumptions, hopes, intentions, beliefs and strategies regarding the future. Words such as “expects,” “assumes,” “anticipates,” “may,” “will,” “intends,” “plans,” “projects,” “believes,” “seeks,” “future,” “estimates,” and variations of such words and similar expressions are intended to identify such forward-looking statements. Such forward-looking statements include, among other things, statements regarding the Company’s expectations related to the continued evolution of the work-from-home trend as well as other impacts on the Company’s financials and operating results in light of the COVID-19 pandemic, the Company’s intent, beliefs or expectations with respect to the timing of completion of current development and redevelopment projects and the stabilization of such projects, the timing of lease-up and occupancy of its apartment communities, the anticipated operating performance of its apartment communities, the total projected costs of development and redevelopment projects, co-investment activities, qualification as a REIT under the Internal Revenue Code of 1986, as amended, the real estate markets in the geographies in which the Company’s properties are located and in the United States in general, the adequacy of future cash flows to meet anticipated cash needs, its financing activities and the use of proceeds from such activities, the availability of debt and equity financing, general economic conditions including the potential impacts from such economic conditions, inflation, the labor market, supply chain impacts and ongoing hostilities between

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Russia and Ukraine, trends affecting the Company’s financial condition or results of operations, changes to U.S. tax laws and regulations in general or specifically related to REITs or real estate, changes to laws and regulations in jurisdictions in which communities the Company owns are located, and other information that is not historical information. While the Company's management believes the assumptions underlying its forward-looking statements are reasonable, such forward-looking statements involve known and unknown risks, uncertainties and other factors, many of which are beyond the Company’s control, which could cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. The Company cannot assure the future results or outcome of the matters described in these statements; rather, these statements merely reflect the Company’s current expectations of the approximate outcomes of the matters discussed. Factors that might cause the Company’s actual results, performance or achievements to differ materially from those expressed or implied by these forward-looking statements include, but are not limited to, the following: potential future outbreaks of infectious diseases or other health concerns, which could adversely affect the Company’s business and its tenants, and cause a significant downturn in general economic conditions, the real estate industry, and the markets in which the Company's communities are located; the Company may fail to achieve its business objectives; the actual completion of development and redevelopment projects may be subject to delays; the stabilization dates of such projects may be delayed; the Company may abandon or defer development or redevelopment projects for a number of reasons, including changes in local market conditions which make development less desirable, increases in costs of development, increases in the cost of capital or lack of capital availability, resulting in losses; the total projected costs of current development and redevelopment projects may exceed expectations; such development and redevelopment projects may not be completed; development and redevelopment projects and acquisitions may fail to meet expectations; estimates of future income from an acquired property may prove to be inaccurate; occupancy rates and rental demand may be adversely affected by competition and local economic and market conditions; there may be increased interest rates, inflation, escalated operating costs and possible recessionary impacts; as well as uncertainties regarding hostilities between Russia and the Ukraine and the related impacts on macroeconomic conditions, including, among other things, interest rates and inflation; the Company may be unsuccessful in the management of its relationships with its co-investment partners; future cash flows may be inadequate to meet operating requirements and/or may be insufficient to provide for dividend payments in accordance with REIT requirements; changes in laws or regulations; the terms of any refinancing may not be as favorable as the terms of existing indebtedness; unexpected difficulties in leasing of development projects; volatility in financial and securities markets; the Company’s failure to successfully operate acquired properties; unforeseen consequences from cyber-intrusion; the Company’s inability to maintain our investment grade credit rating with the rating agencies; government approvals, actions and initiatives, including the need for compliance with environmental requirements; and those further risks, special considerations, and other factors referred to in the Company’s annual report on Form 10-K, quarterly reports on Form 10-Q, and other reports that the Company files with the SEC from time to time. All forward-looking statements are made as of the date hereof, the Company assumes no obligation to update or supplement this information for any reason, and therefore, they may not represent the Company’s estimates and assumptions after the date of this press release.

Definitions and Reconciliations

Non-GAAP financial measures and certain other capitalized terms, as used in this earnings release, are defined and further explained on pages S-18.1 through S-18.4, "Reconciliations of Non-GAAP Financial Measures and Other Terms," of the accompanying supplemental financial information. The supplemental financial information is available on the Company's website at www.essex.com.

Contact Information

Rylan Burns

Group Vice President of Private Equity & Finance

(650) 655-7800

rburns@essex.com

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E S S E X P R O P E R T Y T R U S T, I N C.

Consolidated Operating Results (Dollars in thousands, except share and per share amounts)	Three Months Ended December 31,						Twelve Months Ended December 31,
	2022			2021			2022			2021

Revenues:
Rental and other property	$	412,357		$	369,165		$	1,595,675		$	1,431,418
Management and other fees from affiliates		2,826			2,431			11,139			9,138
		415,183			371,596			1,606,814			1,440,556

Expenses:
Property operating		117,606			111,948			467,269			445,236
Corporate-level property management expenses		10,172			9,076			40,704			36,211
Depreciation and amortization		135,758			132,179			539,319			520,066
General and administrative		16,036			17,092			56,577			51,838
Expensed acquisition and investment related costs		1,884			39			2,132			203
		281,456			270,334			1,106,001			1,053,554
Gain on sale of real estate and land		94,416			-			94,416			142,993
Earnings from operations		228,143			101,262			595,229			529,995
Interest expense, net ⁽¹⁾		(51,101	)		(47,849	)		(196,891	)		(192,351	)
Interest and other income (loss)		12,531			49,988			(19,040	)		98,744
Equity income from co-investments		2,274			51,029			26,030			111,721
Deferred tax benefit (expense) on unconsolidated co-investments		2,373			(10,277	)		10,236			(15,668	)
Loss on early retirement of debt, net		-			(28	)		(2	)		(19,010	)
Gain on remeasurement of co-investment		-			-			17,423			2,260
Net income		194,220			144,125			432,985			515,691
Net income attributable to noncontrolling interest		(9,055	)		(7,251	)		(24,670	)		(27,137	)
Net income available to common stockholders	$	185,165		$	136,874		$	408,315		$	488,554

Net income per share - basic	$	2.86		$	2.10		$	6.27		$	7.51

Shares used in income per share - basic		64,727,333			65,164,191			65,079,764			65,051,465

Net income per share - diluted	$	2.86		$	2.10		$	6.27		$	7.51

Shares used in income per share - diluted		64,731,222			65,331,744			65,098,186			65,088,874

⁽¹⁾	Refer to page S-18.2, the section titled "Interest Expense, Net" for additional information.

See Company’s Form 10-K and Form 10-Qs filed with the SEC for additional information

S-1

E S S E X P R O P E R T Y T R U S T, I N C.

Consolidated Operating Results Selected Line Item Detail	Three Months Ended December 31,						Twelve Months Ended December 31,
(Dollars in thousands)	2022			2021			2022			2021

Rental and other property
Rental income	$	406,698		$	363,979		$	1,573,368		$	1,410,197
Other property		5,659			5,186			22,307			21,221
Rental and other property	$	412,357		$	369,165		$	1,595,675		$	1,431,418

Property operating expenses
Real estate taxes	$	46,324		$	44,959		$	183,918		$	180,367
Administrative		21,931			21,541			89,234			87,253
Maintenance and repairs		24,912			23,836			98,650			91,298
Utilities		24,439			21,612			95,467			86,318
Property operating expenses	$	117,606		$	111,948		$	467,269		$	445,236

Interest and other income (loss)
Marketable securities and other income	$	5,488		$	5,627		$	20,119		$	23,065
Gain on sale of marketable securities		6			901			12,436			3,400
Income from early redemption of notes receivable		811			192			811			4,939
Provision for credit losses		317			(251	)		381			(141	)
Change in unrealized gains (losses) on marketable securities, net		5,573			9,332			(57,983	)		33,104
Insurance reimbursements, legal settlements, and other, net		336			34,187			5,196			34,377
Interest and other income (loss)	$	12,531		$	49,988		$	(19,040	)	$	98,744

Equity income from co-investments
Equity loss from co-investments	$	(1,930	)	$	(1,343	)	$	(4,908	)	$	(4,832	)
Income from preferred equity investments		13,258			15,169			53,946			56,589
Equity (loss) income from non-core co-investments		(6,928	)		36,336			(38,045	)		55,602
Non-core (loss) gain from unconsolidated co-investments		(21	)		-			196			-
Impairment loss from unconsolidated co-investment		(2,105	)		-			(2,105	)		-
Legal settlement from unconsolidated co-investment		-			857			-			857
Loss on early retirement of debt from unconsolidated co-investments		-			(7	)		(988	)		(25	)
Co-investment promote income		-			-			17,076			-
Income from early redemption of preferred equity investments		-			17			858			3,530
Equity income from co-investments	$	2,274		$	51,029		$	26,030		$	111,721

Noncontrolling interest
Limited partners of Essex Portfolio, L.P.	$	6,497		$	4,788		$	14,297		$	17,191
DownREIT limited partners' distributions		2,065			2,046			8,427			8,301
Third-party ownership interest		493			417			1,946			1,645
Noncontrolling interest	$	9,055		$	7,251		$	24,670		$	27,137

See Company’s Form 10-K and Form 10-Qs filed with the SEC for additional information

S-2

E S S E X P R O P E R T Y T R U S T, I N C.

Consolidated Funds From Operations ⁽¹⁾ (Dollars in thousands, except share and per share amounts and in footnotes)	Three Months Ended December 31,								Twelve Months Ended December 31,
	Three Months Ended December 31,								Twelve Months Ended December 31,
	2022			2021			% Change		2022			2021			% Change

Funds from operations attributable to common stockholders and unitholders (FFO)
Net income available to common stockholders	$	185,165		$	136,874				$	408,315		$	488,554
Adjustments:
Depreciation and amortization		135,758			132,179					539,319			520,066
Gains not included in FFO		(94,416	)		-					(111,839	)		(145,253	)
Impairment loss from unconsolidated co-investments		2,105			-					2,105			-
Depreciation and amortization from unconsolidated co-investments		18,053			16,467					72,585			61,059
Noncontrolling interest related to Operating Partnership units		6,497			4,788					14,297			17,191
Depreciation attributable to third party ownership and other ⁽²⁾		(357	)		(159	)				(1,421	)		(571	)
Funds from operations attributable to common stockholders and unitholders	$	252,805		$	290,149				$	923,361		$	941,046
FFO per share-diluted	$	3.77		$	4.30			-12.3%	$	13.70		$	13.98			-2.0%

Components of the change in FFO
Non-core items:
Expensed acquisition and investment related costs	$	1,884		$	39				$	2,132		$	203
Deferred tax (benefit) expense on unconsolidated co-investments ⁽³⁾		(2,373	)		10,277					(10,236	)		15,668
Gain on sale of marketable securities		(6	)		(901	)				(12,436	)		(3,400	)
Change in unrealized (gains) losses on marketable securities, net		(5,573	)		(9,332	)				57,983			(33,104	)
Provision for credit losses		(317	)		251					(381	)		141
Equity loss (income) from non-core co-investments ⁽⁴⁾		6,928			(36,336	)				38,045			(55,602	)
Loss on early retirement of debt, net		-			28					2			19,010
Loss on early retirement of debt from unconsolidated co-investments		-			7					988			25
Co-investment promote income		-			-					(17,076	)		-
Income from early redemption of preferred equity investments and notes receivable		(811	)		(209	)				(1,669	)		(8,469	)
General and administrative and other, net		209			261					2,536			1,026
Insurance reimbursements, legal settlements, and other, net		(315	)		(35,044	)				(5,392	)		(35,234	)
Core funds from operations attributable to common stockholders and unitholders	$	252,431		$	219,190				$	977,857		$	841,310
Core FFO per share-diluted	$	3.77		$	3.25			16.0%	$	14.51		$	12.49			16.2%

Weighted average number of shares outstanding diluted ⁽⁵⁾		67,003,718			67,480,346					67,374,526			67,335,261

⁽¹⁾	Refer to page S-18.2, the section titled "Funds from Operations ("FFO") and Core FFO" for additional information on the Company's definition and use of FFO and Core FFO.

⁽²⁾	The Company consolidates certain co-investments. The noncontrolling interest's share of net operating income in these investments for the three and twelve months ended December 31, 2022 was $0.8 million and $3.3 million, respectively.

⁽³⁾	Represents deferred tax expense (benefit) related to net unrealized gains or losses on technology co-investments.

⁽⁴⁾	Represents the Company's share of co-investment loss (income) from technology co-investments.

⁽⁵⁾	Assumes conversion of all outstanding limited partnership units in the Operating Partnership into shares of the Company's common stock and excludes DownREIT limited partnership units.

See Company’s Form 10-K and Form 10-Qs filed with the SEC for additional information

S-3

E S S E X P R O P E R T Y T R U S T, I N C.

Consolidated Balance Sheets (Dollars in thousands)
	December 31, 2022			December 31, 2021

Real Estate:
Land and land improvements	$	3,043,321		$	3,032,678
Buildings and improvements		12,922,906			12,597,249
		15,966,227			15,629,927
Less: accumulated depreciation		(5,152,133	)		(4,646,854	)
		10,814,094			10,983,073
Real estate under development		24,857			111,562
Co-investments		1,127,491			1,177,802
		11,966,442			12,272,437
Cash and cash equivalents, including restricted cash		42,681			58,638
Marketable securities		112,743			191,829
Notes and other receivables		103,045			341,033
Operating lease right-of-use assets		67,239			68,972
Prepaid expenses and other assets		80,755			64,964
Total assets	$	12,372,905		$	12,997,873

Unsecured debt, net	$	5,312,168		$	5,307,196
Mortgage notes payable, net		593,943			638,957
Lines of credit		52,073			341,257
Distributions in excess of investments in co-investments		42,532			35,545
Operating lease liabilities		68,696			70,675
Other liabilities		381,227			393,069
Total liabilities		6,450,639			6,786,699
Redeemable noncontrolling interest		27,150			34,666
Equity:
Common stock		6			7
Additional paid-in capital		6,750,076			6,915,981
Distributions in excess of accumulated earnings		(1,080,176	)		(916,833	)
Accumulated other comprehensive income (loss), net		46,466			(5,552	)
Total stockholders' equity		5,716,372			5,993,603
Noncontrolling interest		178,744			182,905
Total equity		5,895,116			6,176,508
Total liabilities and equity	$	12,372,905		$	12,997,873

See Company’s Form 10-K and Form 10-Qs filed with the SEC for additional information

S-4

E S S E X P R O P E R T Y T R U S T, I N C.

Debt Summary - December 31, 2022 (Dollars in thousands, except in footnotes)

									Scheduled principal payments, unamortized premiums (discounts) and (debt issuance costs) are as follows - excludes lines of credit:

				Weighted Average																Weighted Average Interest Rate			Percentage of Total Debt
	Balance Outstanding			Interest Rate			Maturity in Years				Unsecured			Secured			Total			Weighted Average Interest Rate			Percentage of Total Debt
Unsecured Debt, net
Bonds public - fixed rate	$	5,350,000			3.3	%		7.7		2023⁽⁴⁾	$	300,000		$	2,945		$	302,945			3.4	%		5.1	%
Unamortized net discounts and debt issuance costs		(37,832	)		-			-		2024		400,000			3,109			403,109			4.0	%		6.8	%
Total unsecured debt, net		5,312,168			3.3	%		7.7		2025		500,000			133,054			633,054			3.5	%		10.7	%
										2026		450,000			99,405			549,405			3.5	%		9.2	%
Mortgage Notes Payable, net										2027		350,000			153,955			503,955			3.7	%		8.5	%
Fixed rate - secured		371,154			3.6	%		3.7		2028		450,000			68,332			518,332			2.2	%		8.7	%
Variable rate - secured ⁽¹⁾		223,583			3.5	%		15.2		2029		500,000			1,456			501,456			4.1	%		8.4	%
Unamortized premiums and debt issuance costs, net		(794	)		-			-		2030		550,000			1,592			551,592			3.1	%		9.3	%
Total mortgage notes payable, net		593,943			3.5	%		8.0		2031		600,000			1,740			601,740			2.3	%		10.1	%
										2032		650,000			1,903			651,903			2.6	%		11.0	%
Unsecured Lines of Credit										2033		-			32,126			32,126			3.5	%		0.5	%
Line of credit ⁽²⁾		40,000			4.4	%		N/A	Thereafter			600,000			95,120			695,120			3.6	%		11.7	%
Line of credit ⁽³⁾		12,073			4.4	%		N/A	Subtotal			5,350,000			594,737			5,944,737			3.3	%		100.0	%
Total lines of credit		52,073			4.4	%		N/A	Debt Issuance Costs			(29,914	)		(2,020	)		(31,934	)	NA			NA
									(Discounts)/Premiums			(7,918	)		1,226			(6,692	)	NA			NA
Total debt, net	$	5,958,184			3.3	%		7.7	Total		$	5,312,168		$	593,943		$	5,906,111			3.3	%		100.0	%

Capitalized interest for the three and twelve months ended December 31, 2022 was approximately $0.4 million and $2.3 million, respectively.

⁽¹⁾	$223.6 million of variable rate debt is tax exempt to the note holders.

⁽²⁾

This unsecured line of credit facility has a capacity of $1.2 billion, a scheduled maturity date in January 2027 and two 6-month extension options, exercisable at the Company’s option. The underlying interest rate on this line is Adjusted SOFR plus 0.75%, which is based on a tiered rate structure tied to the Company's corporate ratings and further adjusted by the facility's Sustainability Metric Grid.

⁽³⁾

This unsecured line of credit facility has a capacity of $35 million and a scheduled maturity date in July 2024. The underlying interest rate on this line is Adjusted SOFR plus 0.75%, which is based on a tiered rate structure tied to the Company's corporate ratings and further adjusted by the facility's Sustainability Metric Grid.

⁽⁴⁾

See Company’s Form 10-K and Form 10-Qs filed with the SEC for additional information

S-5

E S S E X P R O P E R T Y T R U S T, I N C.

Capitalization Data, Public Bond Covenants, Credit Ratings and Selected Credit Ratios - December 31, 2022

(Dollars and shares in thousands, except per share amounts)

Capitalization Data

Public Bond Covenants ⁽¹⁾

Actual

Requirement

Total debt, net

5,958,184

Debt to Total Assets:

34%

< 65%

Common stock and potentially dilutive securities

Common stock outstanding

64,605

Limited partnership units ⁽¹⁾

2,272

Options-treasury method

Secured Debt to Total Assets:

< 40%

Total shares of common stock and potentially dilutive securities

66,881

Common stock price per share as of December 31, 2022

211.92

Interest Coverage:

579%

> 150%

Total equity capitalization

14,173,422

Total market capitalization

20,131,606

Unsecured Debt Ratio ⁽²⁾:

287%

> 150%

Ratio of debt to total market capitalization

29.6

Selected Credit Ratios ⁽³⁾

Actual

Credit Ratings

Rating Agency

Rating

Outlook

Net IndebtednessDivided by Adjusted EBITDAre, normalized and annualized:

5.6

Moody’s

Baa1

Stable

Standard & Poor’s

BBB+

Stable

Unencumbered NOI to Adjusted Total NOI:

95%

⁽¹⁾ Assumes conversion of all outstanding limited partnership units in the Operating Partnership into shares of the Company's common stock.

⁽¹⁾ Refer to page S-18.4 for additional information on the Company's Public Bond Covenants.

⁽²⁾ Unsecured Debt Ratio is unsecured assets (excluding investments in co-investments) divided by unsecured indebtedness.

⁽³⁾ Refer to pages S-18.1 to S-18.4, the section titled "Reconciliations of Non-GAAP Financial Measures and Other Terms" for additional information on the Company's Selected Credit Ratios.

See Company’s Form 10-K and Form 10-Qs filed with the SEC for additional information

S-6

E S S E X P R O P E R T Y T R U S T, I N C.

Portfolio Summary by County as of December 31, 2022

	Apartment Homes								Average Monthly Rental Rate ⁽¹⁾						Percent of NOI ⁽²⁾
Region - County	Consolidated		Unconsolidated Co-investments		Apartment Homes in Development ⁽³⁾		Total		Consolidated		Unconsolidated Co-investments⁽⁴⁾		Total ⁽⁵⁾		Consolidated			Unconsolidated Co-investments ⁽⁴⁾			Total ⁽⁵⁾

Southern California
Los Angeles County		9,538		1,586		-		11,124	$	2,634	$	2,531	$	2,626		18.0	%		13.9	%		17.6	%
Orange County		5,189		1,149		-		6,338		2,619		2,330		2,590		10.6	%		10.7	%		10.6	%
San Diego County		4,824		795		264		5,883		2,439		2,405		2,436		9.1	%		7.5	%		9.0	%
Ventura County and Other		2,600		693		-		3,293		2,247		2,604		2,292		4.7	%		7.5	%		5.0	%
Total Southern California		22,151		4,223		264		26,638		2,543		2,467		2,536		42.4	%		39.6	%		42.2	%

Northern California
Santa Clara County⁽⁶⁾		8,749		1,774		-		10,523		2,909		2,877		2,906		19.6	%		17.8	%		19.5	%
Alameda County		3,959		1,512		-		5,471		2,597		2,574		2,593		7.4	%		14.8	%		8.0	%
San Mateo County		2,561		195		-		2,756		3,024		3,673		3,048		5.2	%		2.1	%		5.0	%
Contra Costa County		2,619		-		-		2,619		2,639		-		2,639		5.3	%		0.0	%		4.8	%
San Francisco		1,342		537		-		1,879		2,885		3,327		2,959		2.5	%		5.9	%		2.8	%
Total Northern California		19,230		4,018		-		23,248		2,822		2,859		2,825		40.0	%		40.6	%		40.1	%

Seattle Metro		10,341		2,184		-		12,525		2,164		2,085		2,156		17.6	%		19.8	%		17.7	%

Total		51,722		10,425		264		62,411	$	2,571	$	2,535	$	2,567		100.0	%		100.0	%		100.0	%

⁽¹⁾	Average monthly rental rate is defined as the total scheduled monthly rental income (actual rent for occupied apartment homes plus market rent for vacant apartment homes) for the quarter ended December 31, 2022, divided by the number of apartment homes as of December 31, 2022.

⁽²⁾	Represents the percentage of actual NOI for the quarter ended December 31, 2022. See the section titled "Net Operating Income ("NOI") and Same-Property NOI Reconciliations" on page S-18.3.

⁽³⁾	Includes development communities with no rental income.

⁽⁴⁾	Co-investment amounts weighted for Company's pro rata share.

⁽⁵⁾	At Company's pro rata share.

⁽⁶⁾	Includes all communities in Santa Clara County and one community in Santa Cruz County.

See Company’s Form 10-K and Form 10-Qs filed with the SEC for additional information

S-7

E S S E X P R O P E R T Y T R U S T, I N C.

Operating Income by Quarter ⁽¹⁾

(Dollars in thousands)

	Apartment Homes		Q4 '22			Q3 '22			Q2 '22			Q1 '22			Q4 '21

Rental and other property revenues:
Same-property		49,119	$	381,383		$	378,299		$	371,140		$	354,154		$	345,271
Acquisitions⁽²⁾		479		2,723			2,570			1,753			1,747			916
Development ⁽³⁾		1,275		11,201			11,327			11,184			9,427			8,785
Redevelopment		164		1,418			1,422			1,491			1,435			1,498
Non-residential/other, net⁽⁴⁾		685		13,468			14,676			14,939			15,037			14,156
Straight-line rent concessions ⁽⁵⁾		-		2,164			(1,432	)		(3,267	)		(2,584	)		(1,461	)
Total rental and other property revenues		51,722		412,357			406,862			397,240			379,216			369,165

Property operating expenses:
Same-property				109,069			110,688			104,998			107,842			104,908
Acquisitions⁽²⁾				1,111			877			540			556			324
Development ⁽³⁾				4,285			4,550			4,313			3,922			3,571
Redevelopment				654			662			600			687			590
Non-residential/other, net^{(4) (6)}				2,487			3,266			3,069			3,093			2,555
Total property operating expenses				117,606			120,043			113,520			116,100			111,948

Net operating income (NOI):
Same-property				272,314			267,611			266,142			246,312			240,363
Acquisitions⁽²⁾				1,612			1,693			1,213			1,191			592
Development ⁽³⁾				6,916			6,777			6,871			5,505			5,214
Redevelopment				764			760			891			748			908
Non-residential/other, net⁽⁴⁾				10,981			11,410			11,870			11,944			11,601
Straight-line rent concessions ⁽⁵⁾				2,164			(1,432	)		(3,267	)		(2,584	)		(1,461	)
Total NOI			$	294,751		$	286,819		$	283,720		$	263,116		$	257,217

Same-property metrics
Operating margin				71	%		71	%		72	%		70	%		70	%
Annualized turnover ⁽⁷⁾				42	%		49	%		41	%		34	%		37	%
Financial occupancy ⁽⁸⁾				96.0	%		96.0	%		96.1	%		96.3	%		96.1	%

⁽¹⁾	Includes consolidated communities only.

⁽²⁾	Acquisitions include properties acquired which did not have comparable stabilized results as of January 1, 2021.

⁽³⁾	Development includes properties developed which did not have comparable stabilized results as of January 1, 2021.

⁽⁴⁾

Non-residential/other, net consists of revenues generated from retail space, commercial properties, held for sale properties, disposition properties, student housing, properties undergoing significant construction activities that do not meet our redevelopment criteria and two communities located in the California counties of Santa Barbara and Santa Cruz, which the Company does not consider its core markets.

⁽⁵⁾	Same-property revenues reflect concessions on a cash basis. Total Rental and Other Property Revenues reflect concessions on a straight-line basis in accordance with U.S. GAAP.

⁽⁶⁾	Includes other expenses and intercompany eliminations pertaining to self-insurance.

⁽⁷⁾	Annualized turnover is defined as the number of apartment homes turned over during the quarter, annualized, divided by the total number of apartment homes.

⁽⁸⁾	Financial occupancy is defined as the percentage resulting from dividing actual rental income by total scheduled rental income (actual rent for occupied apartment homes plus market rent for vacant apartment homes).

See Company’s Form 10-K and Form 10-Qs filed with the SEC for additional information

S-8

E S S E X P R O P E R T Y T R U S T, I N C.

Same-Property Revenue Results by County - Fourth Quarter 2022 vs. Fourth Quarter 2021 and Third Quarter 2022

(Dollars in thousands, except average monthly rental rates)

						Average Monthly Rental Rate							Financial Occupancy									Gross Revenues							Sequential Gross Revenues
Region - County	Apartment Homes		Q4 '22 % of Actual NOI			Q4 '22		Q4 '21		% Change			Q4 '22			Q4 '21			% Change			Q4 '22		Q4 '21		% Change			Q3 '22		% Change

Southern California
Los Angeles County		8,982		18.1	%	$	2,647	$	2,472		7.1	%		96.4	%		95.8	%		0.6	%	$	71,362	$	64,923		9.9	%	$	70,583		1.1	%
Orange County		5,189		11.2	%		2,619		2,377		10.2	%		96.5	%		96.4	%		0.1	%		41,056		37,163		10.5	%		40,253		2.0	%
San Diego County		4,582		9.1	%		2,434		2,153		13.1	%		96.4	%		96.7	%		-0.3	%		33,513		29,358		14.2	%		32,941		1.7	%
Ventura County		2,253		4.3	%		2,223		2,016		10.3	%		96.1	%		97.1	%		-1.0	%		15,304		14,084		8.7	%		15,439		-0.9	%
Total Southern California		21,006		42.7	%		2,548		2,330		9.4	%		96.4	%		96.2	%		0.2	%		161,235		145,528		10.8	%		159,216		1.3	%

Northern California
Santa Clara County		8,177		19.2	%		2,880		2,693		6.9	%		95.8	%		96.3	%		-0.5	%		71,126		64,214		10.8	%		70,616		0.7	%
Alameda County		3,959		7.8	%		2,597		2,481		4.7	%		95.9	%		96.0	%		-0.1	%		30,496		28,971		5.3	%		30,713		-0.7	%
San Mateo County		1,962		4.3	%		2,966		2,819		5.2	%		95.0	%		95.6	%		-0.6	%		17,684		15,860		11.5	%		18,088		-2.2	%
Contra Costa County		2,619		5.5	%		2,639		2,499		5.6	%		96.2	%		96.3	%		-0.1	%		21,096		19,668		7.3	%		21,210		-0.5	%
San Francisco		1,178		2.3	%		2,809		2,697		4.2	%		95.2	%		95.4	%		-0.2	%		10,186		9,391		8.5	%		10,141		0.4	%
Total Northern California		17,895		39.1	%		2,787		2,632		5.9	%		95.8	%		96.1	%		-0.3	%		150,588		138,104		9.0	%		150,768		-0.1	%

Seattle Metro		10,218		18.2	%		2,168		1,968		10.2	%		95.8	%		95.7	%		0.1	%		69,560		61,639		12.9	%		68,315		1.8	%

Total Same-Property		49,119		100.0	%	$	2,556	$	2,365		8.1	%		96.0	%		96.1	%		-0.1	%	$	381,383	$	345,271		10.5	%	$	378,299		0.8	%

See Company’s Form 10-K and Form 10-Qs filed with the SEC for additional information

S-9

E S S E X P R O P E R T Y T R U S T, I N C.

Same-Property Revenue Results by County - Twelve months ended December 31, 2022 vs. Twelve months ended December 31, 2021

(Dollars in thousands, except average monthly rental rates)

						Average Monthly Rental Rate							Financial Occupancy									Gross Revenues
Region - County	Apartment Homes		YTD 2022 % of Actual NOI			YTD 2022		YTD 2021		% Change			YTD 2022			YTD 2021			% Change			YTD 2022		YTD 2021		% Change

Southern California
Los Angeles County		8,982		18.3	%	$	2,581	$	2,434		6.0	%		96.2	%		96.1	%		0.1	%	$	279,271	$	248,392		12.4	%
Orange County		5,189		10.8	%		2,532		2,290		10.6	%		96.1	%		97.1	%		-1.0	%		156,870		142,399		10.2	%
San Diego County		4,582		9.0	%		2,332		2,071		12.6	%		96.4	%		97.3	%		-0.9	%		129,234		115,746		11.7	%
Ventura County		2,253		4.4	%		2,144		1,957		9.6	%		96.1	%		97.8	%		-1.7	%		59,532		54,789		8.7	%
Total Southern California		21,006		42.5	%		2,468		2,268		8.8	%		96.2	%		96.7	%		-0.5	%		624,907		561,326		11.3	%

Northern California
Santa Clara County		8,177		19.2	%		2,807		2,677		4.9	%		96.4	%		96.5	%		-0.1	%		277,484		252,555		9.9	%
Alameda County		3,959		7.9	%		2,555		2,458		3.9	%		96.0	%		96.2	%		-0.2	%		120,812		113,578		6.4	%
San Mateo County		1,962		4.5	%		2,922		2,818		3.7	%		95.8	%		95.2	%		0.6	%		69,950		63,620		9.9	%
Contra Costa County		2,619		5.5	%		2,589		2,471		4.8	%		96.1	%		96.6	%		-0.5	%		82,943		78,172		6.1	%
San Francisco		1,178		2.4	%		2,760		2,680		3.0	%		95.9	%		95.8	%		0.1	%		40,367		37,610		7.3	%
Total Northern California		17,895		39.5	%		2,729		2,614		4.4	%		96.1	%		96.2	%		-0.1	%		591,556		545,535		8.4	%

Seattle Metro		10,218		18.0	%		2,100		1,914		9.7	%		95.8	%		96.2	%		-0.4	%		268,512		239,819		12.0	%

Total Same-Property		49,119		100.0	%	$	2,486	$	2,320		7.2	%		96.1	%		96.4	%		-0.3	%	$	1,484,975	$	1,346,680		10.3	%

See Company’s Form 10-K and Form 10-Qs filed with the SEC for additional information

S-9.1

E S S E X P R O P E R T Y T R U S T, I N C.

Same-Property Operating Expenses - Quarter to Date and Year to Date as of December 31, 2022 and 2021

(Dollars in thousands)

	Based on 49,119 apartment homes
	Q4 '22		Q4 '21		% Change			% of Op. Ex.			YTD 2022		YTD 2021		% Change			% of Op. Ex.

Same-property operating expenses:
Real estate taxes	$	41,373	$	40,978		1.0	%		37.9	%	$	163,967	$	163,671		0.2	%		37.9	%
Maintenance and repairs ⁽¹⁾		23,228		22,480		3.3	%		21.3	%		92,154		85,995		7.2	%		21.3	%
Administrative		15,936		16,137		-1.2	%		14.6	%		66,131		65,641		0.7	%		15.3	%
Utilities		22,826		20,104		13.5	%		21.0	%		88,681		80,651		10.0	%		20.5	%
Insurance and other		5,706		5,209		9.5	%		5.2	%		21,664		20,807		4.1	%		5.0	%
Total same-property operating expenses	$	109,069	$	104,908		4.0	%		100.0	%	$	432,597	$	416,765		3.8	%		100.0	%

⁽¹⁾ Maintenance and repairs also includes compensation related costs.

See Company’s Form 10-K and Form 10-Qs filed with the SEC for additional information

S-10

E S S E X P R O P E R T Y T R U S T, I N C.

Development Pipeline - December 31, 2022

(Dollars in millions, except per apartment home amounts in thousands and except in footnotes)

Project Name	Location	Ownership %	Estimated Apartment Homes		Estimated Commercial sq. feet		Incurred to Date		Remaining Costs		Estimated Total Cost		Essex Est. Total Cost ⁽¹⁾			Cost per Apartment Home ⁽²⁾		Average % Occupied	% Leased as of 12/31/22 ⁽³⁾	% Leased as of 2/6/23 ⁽³⁾	Construction Start		Initial Occupancy		Stabilized Operations

Land Held for Future Development - Consolidated
Other Projects	Various	100%		-		-	$	25	$	-	$	25	$	25
Total Development Pipeline - Consolidated				-		-		25		-		25		25

Development Projects - Joint Venture ⁽⁴⁾
LIVIA (fka Scripps Mesa Apartments) ⁽⁵⁾	San Diego, CA	51%		264		2,000		77		25		102		52			383	0%	0%	0%		Q3 2020		Q2 2023		Q1 2024
Total Development Projects - Joint Venture				264		2,000		77		25		102		52		$	383

Grand Total - Development Pipeline				264		2,000	$	102	$	25	$	127		77
Essex Cost Incurred to Date - Pro Rata														(64	)
Essex Remaining Commitment													$	13

⁽¹⁾	The Company's share of the estimated total cost of the project.

⁽²⁾	Net of the estimated allocation to the retail component of the project, as applicable.

⁽³⁾	Calculations are based on multifamily operations only.

⁽⁴⁾	For the fourth quarter of 2022, the Company's cost includes $0.2 million of capitalized interest, $0.3 million of capitalized overhead and $0.7 million of development fees (such development fees reduced G&A expenses).

⁽⁵⁾	Cost incurred to date and estimated total cost are net of a projected value for low income housing tax credit proceeds and the value of the tax exempt bond structure.

See Company’s Form 10-K and Form 10-Qs filed with the SEC for additional information

S-11

E S S E X P R O P E R T Y T R U S T, I N C.

Capital Expenditures - December 31, 2022 ⁽¹⁾

(Dollars in thousands, except in footnotes and per apartment home amounts)

Revenue Generating Capital Expenditures⁽²⁾	Q4 '22		Trailing 4 Quarters
Same-property portfolio	$	24,140	$	67,811
Non-same property portfolio		472		1,169
Total revenue generating capital expenditures	$	24,612	$	68,980

Number of same-property interior renovations		816		3,697
Number of total consolidated interior renovations		836		3,818

Non-Revenue Generating Capital Expenditures ⁽³⁾	Q4 '22		Trailing 4 Quarters

Non-revenue generating capital expenditures	$	46,582	$	138,280
Average apartment homes in quarter		51,847		51,796
Capital expenditures per apartment homes in the quarter	$	898	$	2,670

⁽¹⁾	The Company incurred $0.1 million of capitalized interest, $3.8 million of capitalized overhead and $0.3 million of co-investment fees related to redevelopment in Q4 2022.

⁽²⁾	Represents revenue generating or expense saving expenditures, such as full-scale redevelopments, interior unit turn renovations, enhanced amenities and certain resource management initiatives. Excludes costs related to smart home automation.

⁽³⁾

Represents roof replacements, paving, building and mechanical systems, exterior painting, siding, etc. Non-revenue generating capital expenditures does not include costs related to retail, furniture and fixtures, expenditures in which the Company expects to be reimbursed, and expenditures incurred due to changes in governmental regulation that the Company would not have incurred otherwise.

See Company’s Form 10-K and Form 10-Qs filed with the SEC for additional information

S-12

E S S E X P R O P E R T Y T R U S T, I N C.

Co-investments and Preferred Equity Investments - December 31, 2022

(Dollars in thousands, except in footnotes)

	Weighted Average Essex Ownership Percentage	Apartment Homes		Total Undepreciated Book Value		Debt Amount		Essex Book Value		Weighted Average Borrowing Rate			Remaining Term of Debt (in Years)			Three Months Ended September 30, 2022			Nine Months Ended September 30, 2022

Operating and Other Non-Consolidated Joint Ventures																NOI
Wesco I, III, IV, V, VI, Essex JV, LLC ⁽¹⁾	54%		5,975	$	2,132,041	$	1,439,603	$	178,552		2.9	%		3.8		$	29,825		$	114,880
BEXAEW, BEX II, BEX IV, and 500 Folsom	50%		3,083		1,246,432		549,340		238,537		3.2	%		8.4	⁽⁴⁾		15,468			60,612
Other ⁽²⁾	52%		1,367		559,471		408,294		74,742		3.6	%		2.4			7,108			27,500
Total Operating and Other Non-Consolidated Joint Ventures			10,425	$	3,937,944	$	2,397,237	$	491,831		3.1	%		4.6		$	52,401		$	202,992
Development Non-Consolidated Joint Ventures ⁽³⁾	51%		264		76,624		89,250		12,994		1.9	%		37.4	⁽⁵⁾		-			-
Total Non-Consolidated Joint Ventures			10,689	$	4,014,568	$	2,486,487	$	504,825		3.1	%		5.8		$	52,401		$	202,992

																Essex Portion of NOI and Expenses
NOI																$	28,036		$	107,850
Depreciation																	(18,053	)		(72,585	)
Interest expense and other																	(11,934	)		(39,977	)
Equity loss from non-core co-investments																	(6,928	)		(38,045	)
Loss on early retirement of debt from unconsolidated co-investment																	-			(988	)
Impairment loss from unconsolidated co-investment																	(2,105	)		(2,105	)
Co-investment promote income																	-			17,076
Net income from operating and other co-investments																$	(10,984	)	$	(28,774	)

										Weighted Average Preferred Return			Weighted Average Expected Term
										Weighted Average Preferred Return			Weighted Average Expected Term			Income from Preferred Equity Investments
Income from preferred equity investments																$	13,258		$	53,946
Income from early redemption of preferred equity investments																	-			858
Preferred Equity Investments⁽⁶⁾								$	580,134		9.7	%		2.6		$	13,258		$	54,804

Total Co-investments								$	1,084,959							$	2,274		$	26,030

⁽¹⁾	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.

⁽²⁾

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. The weighted average Essex ownership percentage excludes our investments in non-core technology co-investments which are carried at fair value.

⁽³⁾	The Company has ownership interests in development co-investments, which are detailed on page S-11.

⁽⁴⁾	$132.0 million of the debt related to 500 Folsom, one of the Company's co-investments, is financed by tax exempt bonds with a maturity date of January 2052.

⁽⁵⁾	LIVIA (fka Scripps Mesa Apartments) has $89.3 million of long-term tax-exempt bond debt that is subject to a total return swap that matures in 2025.

⁽⁶⁾	As of December 31, 2022, the Company has invested in 25 preferred equity investments.

See Company’s Form 10-K and Form 10-Qs filed with the SEC for additional information

S-13

E S S E X P R O P E R T Y T R U S T, I N C.

Assumptions for 2023 FFO Guidance Range

The guidance projections below are based on current expectations and are forward-looking. The guidance on this page is given for Net Operating Income ("NOI") and Total and Core FFO. See pages S-18.1 to S-18.4 for the definitions of non-GAAP financial measures and other terms.

	2022			2023 Full-Year Guidance Range
($'s in thousands, except per share data)	Actuals ⁽¹⁾			Low End			High End			Comments About 2023 Full-Year Guidance

Total NOI from Consolidated Communities - Excluding Straight-Line Rent Concessions	$	1,133,525		$	1,154,500		$	1,181,500		Includes a range of same-property NOI growth of 2.3% to 4.9%

Straight-Line Rent Concessions from Consolidated Communities		(5,119	)		2,300			(3,700	)	Reflects the non-cash impact of recording lease concessions on a straight-line basis

Management Fees		11,139			10,700			11,700

Interest Expense
Interest expense, before capitalized interest		(199,180	)		(207,400	)		(203,800	)
Interest capitalized		2,289			100			700
Net interest expense		(196,891	)		(207,300	)		(203,100	)

Recurring Income and Expenses
Interest and other income		20,119			15,500			17,500
FFO from co-investments		121,623			109,600			113,100
General and administrative		(54,041	)		(55,500	)		(57,500	)
Corporate-level property management expenses		(40,704	)		(45,200	)		(46,200	)
Non-controlling interest		(11,794	)		(12,100	)		(11,100	)
Total recurring income and expenses		35,203			12,300			15,800

Non-Core Income and Expenses
Expensed acquisition and investment related costs		(2,132	)
Deferred tax benefit on unconsolidated co-investments		10,236
Gain on sale of marketable securities		12,436
Change in unrealized losses on marketable securities, net		(57,983	)
Provision for credit losses		381
Equity loss from non-core co-investments		(38,045	)
Loss on early retirement of debt, net		(2	)
Loss on early retirement of debt from unconsolidated co-investments		(988	)
Co-investment promote income		17,076
Income from early redemption of preferred equity investments		1,669
General and administrative and other, net		(2,536	)
Insurance reimbursements, legal settlements, and other, net		5,392
Total non-core income and expenses		(54,496	)		-			-

Funds from Operations ⁽²⁾	$	923,361		$	972,500		$	1,002,200

Funds from Operations per diluted Share	$	13.70		$	14.53		$	14.97

% Change - Funds from Operations		-2.0	%		6.1	%		9.3	%

Core Funds from Operations (excludes non-core items)	$	977,857		$	972,500		$	1,002,200

Core Funds from Operations per diluted Share	$	14.51		$	14.53		$	14.97

% Change - Core Funds from Operations		16.2	%		0.1	%		3.2	%

EPS - Diluted	$	6.27		$	5.35		$	5.79

Weighted average shares outstanding - FFO calculation		67,375			66,950			66,950

⁽¹⁾	All non-core items are excluded from the 2022 actuals and included in the non-core income and expense section of the FFO reconciliation.

⁽²⁾	2023 guidance excludes inestimable projected gain on sale of marketable securities, loss on early retirement of debt, political/legislative costs, and promote income until they are realized within the reporting period presented in the report.

See Company’s Form 10-K and Form 10-Qs filed with the SEC for additional information

S-14

E S S E X P R O P E R T Y T R U S T, I N C.

Reconciliation of Projected EPS, FFO and Core FFO per diluted share

With respect to the Company's guidance regarding its projected FFO and Core FFO, which guidance is set forth in the earnings release and on page S-14 of this supplement, a reconciliation of projected net income per share to projected FFO per share and projected Core FFO per share, as set forth in such guidance, is presented in the table below.

				2023 Guidance Range ⁽¹⁾
				1st Quarter 2023						Full-Year 2023
	2022
	Actuals			Low			High			Low			High
EPS - diluted	$	6.27		$	1.21		$	1.33		$	5.35		$	5.79
Conversion from GAAP share count		(0.21	)		(0.04	)		(0.04	)		(0.19	)		(0.19	)
Impairment Loss from unconsolidated co-investments		0.03			-			-			-			-
Depreciation and amortization		9.08			2.30			2.30			9.19			9.19
Noncontrolling interest related to Operating Partnership units		0.19			0.04			0.04			0.18			0.18
Gain on sale of real estate		(1.40	)		-			-			-			-
Gain on remeasurement of co-investment		(0.26	)		-			-			-			-
FFO per share - diluted	$	13.70		$	3.51		$	3.63		$	14.53		$	14.97
Expensed acquisition and investment related costs		0.03			-			-			-			-
Deferred tax benefit on unconsolidated co-investments		(0.15	)		-			-			-			-
Gain on sale of marketable securities		(0.18	)		-			-			-			-
Change in unrealized losses on marketable securities, net		0.86			-			-			-			-
Provision for credit losses		(0.01	)		-			-			-			-
Equity loss from non-core co-investments		0.56			-			-			-			-
Loss on early retirement of debt, net		-			-			-			-			-
Loss on early retirement of debt from unconsolidated co-investments		0.01			-			-			-			-
Co-investment promote income		(0.25	)		-			-			-			-
Income from early redemption of preferred equity investments		(0.02	)		-			-			-			-
General and administrative and other, net		0.04			-			-			-			-
Insurance reimbursements, legal settlements, and other, net		(0.08	)		-			-			-			-
Core FFO per share - diluted	$	14.51		$	3.51		$	3.63		$	14.53		$	14.97

⁽¹⁾	2023 guidance excludes inestimable projected gain on sale of real estate and land, gain on sale of marketable securities, loss on early retirement of debt, political/legislative costs, and promote income until they are realized within the reporting period presented in the report.

See Company’s Form 10-K and Form 10-Qs filed with the SEC for additional information

S-14.1

E S S E X P R O P E R T Y T R U S T, I N C.

Summary of Apartment Community Acquisitions and Dispositions Activity

Year to date as of December 31, 2022

(Dollars in thousands)

Acquisitions

Property Name	Location	Apartment Homes		Essex Ownership Percentage	Entity	Date	Total Contract Price			Price per Apartment Home		Average Rent

Vela	Woodland Hills, CA		379	50%	JV	Jan-22	$	183,000	⁽¹⁾	$	483	$	2,729
	Q1 2022		379				$	183,000		$	483

Regency Palm Court and Windsor Court ⁽²⁾	Los Angeles, CA		211	100%	EPLP	Jul-22	$	32,868		$	313	$	1,787
	Q3 2022		211				$	32,868		$	313

	2022 Total		590				$	215,868		$	366

Dispositions

	Location	Apartment Homes		Essex Ownership Percentage	Entity	Date	Total Sale Price		Price per Apartment Home

Anavia	Anaheim, CA		250	100%	EPLP	Nov-22	$	160,000	$	640
	Q4 2022		250				$	160,000	$	640

	2022 Total		250				$	160,000	$	640

⁽¹⁾	Represents the contract price for the entire property, not the Company’s share.

⁽²⁾	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.

See Company’s Form 10-K and Form 10-Qs filed with the SEC for additional information

S-15

E S S E X P R O P E R T Y T R U S T, I N C.

Delinquencies, Operating Statistics, and Same-Property Revenue Growth with Concessions on a GAAP basis

(Dollars in millions, except in footnotes and per share amounts)

Delinquencies for Fourth Quarter 2022	Same-Property			Non-Same Property and Co-investments			Total Operating Communities			Commercial			Total
Operating apartment community units		49,119			12,229			61,348			N/A			N/A

Cash delinquencies as % of scheduled rent		1.1	%		1.5	%		1.1	%		N/A			N/A
Reported delinquencies as % of scheduled rent ⁽¹⁾		1.1	%		1.5	%		1.1	%		N/A			N/A
Reported delinquencies in 4Q 2022 ^{(2) (3)}	$	(4.0	)	$	(0.9	)	$	(4.9	)	$	0.3		$	(4.6	)
Reported delinquencies in 4Q 2021 ⁽²⁾	$	(6.7	)	$	(1.4	)	$	(8.1	)	$	0.8		$	(7.3	)

YoY impact to 4Q 2022 Core FFO per share	$	0.04		$	0.01		$	0.05		$	(0.01	)	$	0.04
YoY impact to Core FFO per share growth		1.2	%		0.2	%		1.5	%		-0.2	%		1.2	%

Total cumulative cash delinquencies ⁽⁴⁾ ⁽⁵⁾	$	(77.9	)	$	(12.0	)	$	(89.9	)		N/A			N/A
Net accounts receivable balance	$	3.4		$	-		$	3.4			N/A			N/A

⁽¹⁾	Represents total residential portfolio delinquencies as a percentage of scheduled rent reflected in the financial statements for the three months ended December 31, 2022

⁽²⁾	Co-investment delinquencies reported at the Company's pro rata share.

⁽³⁾	Commercial delinquencies in 4Q 2022 co-investment amounts at the Company's pro rata share.

⁽⁴⁾	Represents cash delinquencies from the period of April 1, 2020 to December 31, 2022. This includes $3.4 million of the net accounts receivable balance.

⁽⁵⁾	The Company, including its co-investments, has received Emergency Rental Assistance payments of $3.7 million and $64.3 million for the three months ended December 31, 2022 and the period from April 1, 2020 to December 31, 2022, respectively

Operating Statistics					Same-Property Revenue Growth with Concessions on a GAAP basis
	Preliminary Estimate
Same-Property Portfolio	January 2023		4Q 2022			4Q 2022			4Q 2021			YTD 2022			YTD 2021
Cash delinquencies as % of scheduled rent ⁽¹⁾		3.1%		1.1%	Reported rental revenue (cash basis concessions)	$	381.4		$	345.3		$	1,485.0		$	1,346.7
					Straight-line rent impact to rental revenue		1.8			(1.6	)		(5.0	)		(10.6	)
New lease rates ⁽²⁾		-0.6%		0.8%	GAAP rental revenue	$	383.2		$	343.7		$	1,480.0		$	1,336.1
Renewal rates ⁽²⁾		5.5%		7.6%
Blended rates		2.2%		3.8%	% change - reported rental revenue		10.5	%					10.3	%
					% change - GAAP rental revenue		11.5	%					10.8	%
Financial occupancy		96.4%		96.0%

⁽¹⁾	The Company's same-property portfolio has received Emergency Rental Assistance payments of $0.3 million and $2.6 million in January 2023 and for the three months ended December 31, 2022, respectively.

⁽²⁾	Represents % change in similar term lease tradeouts, including the impact of leasing incentives.

See Company’s Form 10-K and Form 10-Qs filed with the SEC for additional information

S-16

See Company’s Form 10-K and Form 10-Qs filed with the SEC for additional information S-17 E S S E X P R O P E R T Y T R U S T, I N C 2023 MSA Level Forecast: Supply, Jobs, and Apartment Market Conditions Forecast Summary: Forecast Assumptions: 2023 GDP Growth = +0.4% Fed policy spurs weaker job growth into mid-2023, and decelerating rent growth Dec-23 unemployment rate = 4.7%, US Job Growth = -0.2% (TTM avg) High mortgage rates shift rent/buy equation, supporting rental demand 2023 Supply growth in ESS markets remains below 1% Macro uncertainty remains elevated near-term, with inflation a key catalyst Residential Supply (1) Job Forecast (2) Rent Forecast (3) Market New MF Supply New SF Supply Total Supply MF Supply as % of MF Stock Total Supply as % of Stock Q4 YOY New Jobs Q4 YOY Growth TTM YOY Growth TTM YOY Growth Los Angeles 10,700 6,450 17,150 0.7% 0.5% 0 0.0% 0.4% 2.4% Orange County 2,500 3,300 5,800 0.6% 0.5% 0 0.0% 0.3% 2.0% San Diego 3,300 2,950 6,250 0.7% 0.5% 2,000 0.1% 0.2% 1.9% Ventura 900 200 1,100 1.4% 0.4% 0 0.0% 0.4% 1.6% So. Cal. 17,400 12,900 30,300 0.7% 0.5% 2,000 0.0% 0.3% 2.1% San Francisco 2,150 550 2,700 0.6% 0.4% 2,000 0.2% 1.2% 2.3% Oakland 2,500 3,050 5,550 0.7% 0.5% 500 0.0% 0.3% 1.2% San Jose 2,300 2,200 4,500 0.9% 0.6% 2,000 0.2% 0.5% 2.6% No. Cal. 6,950 5,800 12,750 0.7% 0.5% 4,500 0.1% 0.7% 2.1% Seattle 9,550 4,900 14,450 1.9% 1.1% 3,000 0.2% 0.4% 1.3% Total/Weighted Avg. (4) 33,900 23,600 57,500 0.8% 0.6% 9,500 0.1% 0.4% 2.0% Data based on third-party macroeconomic projections and Essex Market Analytics forecasts. (1) Residential Supply: Total supply includes the Company's estimate of multifamily deliveries of properties with 50+ units and excludes student, senior and 100% affordable housing communities. Single-family estimates are based on trailing single-family permits. Multifamily estimates incorporate a methodological enhancement ("delay-adjusted supply") to reflect the anticipated impact of continued construction delays in Essex markets. (2) Job Forecast: Refers to the difference between total non-farm industry employment (not seasonally adjusted) projected 4Q23 over 4Q22, expressed as total new jobs and growth rates, and trailing 12-month 2023 vs 2022 growth rates. (3) Rent Forecast: The estimated rent growth represents the forecasted change in economic rents for trailing 1

2-month 2023 vs 2022, and excludes submarkets not targeted by Essex. (4) Weighted Average: Rent growth rates are weighted by scheduled rent in the Company's Portfolio.

See Company’s Form 10-K and Form 10-Qs filed with the SEC for additional information S-17.1 E S S E X P R O P E R T Y T R U S T, I N C Divergent Supply Trends in 2023 are Set to Benefit Essex’s Relative Market Fundamentals Contrary to the rest of the country where multifamily supply is increasing relative to their employed populations in 2023, Essex’s supply-constrained markets are expected to benefit from fewer apartment deliveries. 2023 Multifamily Supply Growth by Major Metro Trailing twelve months units as proportion of total nonfarm payrolls New Multifamily Supply relative to Employment Base Trailing twelve months expected deliveries relative to total nonfarm payrolls Source: Bureau of Labor Statistics (actuals), Oxford Economics (forecasts), RealPage, and Essex internal estimates. (1) Sunbelt markets include: Austin, Dallas, Houston, Charlotte, Raleigh, Atlanta, Nashville, Las Vegas, Phoenix, Miami, Orlando, and Tampa. Market 2023E Supply / Total Employment 2023E Supply 2023E Employment (in 000’s) Austin 2.0% 25,600 1,275 Charlotte 1.4% 18,600 1,334 Philadelphia 1.4% 13,500 981 Nashville 1.3% 14,400 1,131 Phoenix 1.2% 28,200 2,342 Denver 1.2% 19,200 1,596 Orlando 1.0% 13,300 1,387 Dallas 0.9% 26,800 2,990 Boston 0.8% 9,900 1,305 Atlanta 0.8% 22,900 3,014 Miami 0.8% 9,700 1,280 Washington D.C. 0.7% 18,200 2,754 Houston 0.6% 19,700 3,303 Tampa 0.5% 7,800 1,481 Seattle 0.5% 9,550 1,817 Ventura 0.3% 900 313 New York 0.3% 18,400 7,211 Los Angeles 0.2% 10,700 4,612 San Diego 0.2% 3,300 1,540 Oakland 0.2% 2,500 1,200 San Jose 0.2% 2,300 1,196 San Francisco 0.2% 2,150 1,225 Orange County 0.1% 2,500 1,682

E S S E X P R O P E R T Y T R U S T, I N C.

Reconciliations of Non-GAAP Financial Measures and Other Terms

Adjusted EBITDAre Reconciliation

The National Association of Real Estate Investment Trusts ("NAREIT”) defines earnings before interest, taxes, depreciation and amortization for real estate ("EBITDAre") (September 2017 White Paper) as net income (computed in accordance with U.S. generally accepted accounting principles ("U.S. GAAP")) before interest expense, income taxes, depreciation and amortization expense, and further adjusted for gains and losses from sales of depreciated operating properties, impairment write-downs of depreciated operating properties, impairment write-downs of investments in unconsolidated entities caused by a decrease in value of depreciated operating properties within the joint venture and adjustments to reflect the Company’s share of EBITDAre of investments in unconsolidated entities.

The Company believes that EBITDAre is useful to investors, creditors and rating agencies as a supplemental measure of the Company’s ability to incur and service debt because it is a recognized measure of performance by the real estate industry, and by excluding gains or losses related to sales or impairment of depreciated operating properties, EBITDAre can help compare the Company’s credit strength between periods or as compared to different companies.

Adjusted EBITDAre represents EBITDAre further adjusted for non-comparable items and is a component of the credit ratio, "Net Indebtedness Divided by Adjusted EBITDAre, normalized and annualized," presented on page S-6, in the section titled "Selected Credit Ratios," and it is not intended to be a measure of free cash flow for management’s discretionary use, as it does not consider certain cash requirements such as income tax payments, debt service requirements, capital expenditures and other fixed charges.

Adjusted EBITDAre is an important metric in evaluating the credit strength of the Company and its ability to service its debt obligations. The Company believes that Adjusted EBITDAre is useful to investors, creditors and rating agencies because it allows investors to compare the Company’s credit strength to prior reporting periods and to other companies without the effect of items that by their nature are not comparable from period to period and tend to obscure the Company’s actual credit quality.

EBITDAre and Adjusted EBITDAre are not recognized measurements under U.S. GAAP. Because not all companies use identical calculations, the Company's presentation of EBITDAre and Adjusted EBITDAre may not be comparable to similarly titled measures of other companies.

The reconciliations of Net Income available to common stockholders to EBITDAre and Adjusted EBITDAre are presented in the table below (Dollars in thousands):

	Three Months Ended December 31, 2022
Net income available to common stockholders	$	185,165
Adjustments:
Net income attributable to noncontrolling interest		9,055
Interest expense, net ⁽¹⁾		51,101
Depreciation and amortization		135,758
Income tax provision		78
Gain on sale of real estate and land		(94,416	)
Impairment loss from unconsolidated co-investments		2,105
Co-investment EBITDAre adjustments		29,859
EBITDAre		318,705

Gain on sale of marketable securities		(6	)
Change in unrealized gains (losses) on marketable securities, net		(5,573	)
Provision for credit losses		(317	)
Equity (loss) income from non-core co-investments		6,928
Deferred tax benefit (expense) on unconsolidated co-investments		(2,373	)
General and administrative and other, net		209
Insurance reimbursements and legal settlements, net		(315	)
Income from early redemption of preferred equity investments		(811	)
Expensed acquisition and investment related costs		1,884
Adjusted EBITDAre	$	318,331

⁽¹⁾

Interest expense, net includes items such as gains on derivatives and the amortization of deferred charges.

See Company’s Form 10-K and Form 10-Qs filed with the SEC for additional information

S-18.1

E S S E X P R O P E R T Y T R U S T, I N C.

Reconciliations of Non-GAAP Financial Measures and Other Terms

Disposition Yield

Net operating income that the Company anticipates giving up in the next 12 months less an estimate of property management costs allocated to the project divided by the gross sales price of the asset.

Encumbered

Encumbered means any mortgage, deed of trust, lien, charge, pledge, security interest, security agreement or other encumbrance of any kind.

Funds From Operations (“FFO”) and Core FFO

FFO, as defined by NAREIT, is generally considered by industry analysts as an appropriate measure of performance of an equity REIT. Generally, FFO adjusts the net income of equity REITs for non-cash charges such as depreciation and amortization of rental properties, impairment charges, gains on sales of real estate and extraordinary items. Management considers FFO and FFO which excludes non-core items, which is referred to as “Core FFO,” to be useful supplemental operating performance measures of an equity REIT because, together with net income and cash flows, FFO and Core FFO provide investors with additional bases to evaluate the operating performance and ability of a REIT to incur and service debt and to fund acquisitions and other capital expenditures and to pay dividends. By excluding gains or losses related to sales of depreciated operating properties and excluding real estate depreciation (which can vary among owners of identical assets in similar condition based on historical cost accounting and useful life estimates), FFO can help investors compare the operating performance of a real estate company between periods or as compared to different companies. By further adjusting for items that are not considered part of the Company’s core business operations, Core FFO allows investors to compare the core operating performance of the Company to its performance in prior reporting periods and to the operating performance of other real estate companies without the effect of items that by their nature are not comparable from period to period and tend to obscure the Company’s actual operating results.

FFO and Core FFO do not represent net income or cash flows from operations as defined by U.S. GAAP and are not intended to indicate whether cash flows will be sufficient to fund cash needs. These measures should not be considered as alternatives to net income as an indicator of the REIT’s operating performance or to cash flows as a measure of liquidity. FFO and Core FFO do not measure whether cash flow is sufficient to fund all cash needs including principal amortization, capital improvements and distributions to stockholders. FFO and Core FFO also do not represent cash flows generated from operating, investing or financing activities as defined under GAAP. Management has consistently applied the NAREIT definition of FFO to all periods presented. However, there is judgment involved and other REITs’ calculation of FFO may vary from the NAREIT definition for this measure, and thus their disclosures of FFO may not be comparable to the Company’s calculation.

The reconciliations of diluted FFO and Core FFO are detailed on page S-3 in the section titled “Consolidated Funds From Operations”.

Interest Expense, Net

Interest expense, net is presented on page S-1 in the section titled “Consolidated Operating Results”. Interest expense, net includes items such as gains on derivatives and the amortization of deferred charges and is presented in the table below (Dollars in thousands):

	Three Months Ended December 31, 2022			Twelve Months Ended December 31, 2022
Interest expense	$	52,298		$	204,798
Adjustments:
Total return swap income		(1,197	)		(7,907	)
Interest expense, net	$	51,101		$	196,891

Immediately Available Liquidity

The Company's immediately available liquidity as of February 6, 2023, consisted of the following (Dollars in millions):

	February 6, 2023
Unsecured credit facility - committed	$	1,235
Balance outstanding		113
Undrawn portion of line of credit	$	1,122
Cash, cash equivalents & marketable securities		140
Total liquidity	$	1,262

See Company’s Form 10-K and Form 10-Qs filed with the SEC for additional information

S-18.2

E S S E X P R O P E R T Y T R U S T, I N C.

Reconciliations of Non-GAAP Financial Measures and Other Terms

Net Indebtedness Divided by Adjusted EBITDAre

This credit ratio is presented on page S-6 in the section titled “Selected Credit Ratios.” This credit ratio is calculated by dividing net indebtedness by Adjusted EBITDAre, as annualized based on the most recent quarter, and adjusted for estimated net operating income from properties acquired or disposed of during the quarter. This ratio is presented by the Company because it provides rating agencies and investors an additional means of comparing the Company's ability to service debt obligations to that of other companies. Net indebtedness is total debt, net less unamortized premiums, discounts, debt issuance costs, unrestricted cash and cash equivalents, and marketable securities. The reconciliation of Adjusted EBITDAre is set forth in “Adjusted EBITDAre Reconciliation” on page S-18.1 The calculation of this credit ratio and a reconciliation of net indebtedness to total debt at pro rata share for co-investments, net is presented in the table below (Dollars in thousands):

Total consolidated debt, net	$	5,958,184
Total debt from co-investments at pro rata share		1,328,569
Adjustments:
Consolidated unamortized premiums, discounts, and debt issuance costs		38,626
Pro rata co-investments unamortized premiums, discounts, and debt issuance costs		6,545
Consolidated cash and cash equivalents-unrestricted		(33,295	)
Pro rata co-investment cash and cash equivalents-unrestricted		(32,767	)
Marketable securities		(128,026	)
Net Indebtedness	$	7,137,836

Adjusted EBITDAre, annualized ⁽¹⁾	$	1,273,324
Other EBITDAre normalization adjustments, net, annualized ⁽²⁾		(8,466	)
Adjusted EBITDAre, normalized and annualized	$	1,264,858

Net Indebtedness Divided by Adjusted EBITDAre, normalized and annualized		5.6

⁽¹⁾

Based on the amount for the most recent quarter, multiplied by four.

⁽²⁾

Adjustments made for properties in lease-up, acquired, or disposed during the most recent quarter and other partial quarter activity, multiplied by four.

Net Operating Income (“NOI”) and Same-Property NOI Reconciliations

NOI and same-property NOI are considered by management to be important supplemental performance measures to earnings from operations included in the Company’s consolidated statements of income. The presentation of same-property NOI assists with the presentation of the Company’s operations prior to the allocation of depreciation and any corporate-level or financing-related costs. NOI reflects the operating performance of a community and allows for an easy comparison of the operating performance of individual communities or groups of communities.

In addition, because prospective buyers of real estate have different financing and overhead structures, with varying marginal impacts to overhead by acquiring real estate, NOI is considered by many in the real estate industry to be a useful measure for determining the value of a real estate asset or group of assets. The Company defines same-property NOI as same-property revenues less same-property operating expenses, including property taxes. Please see the reconciliation of earnings from operations to NOI and same-property NOI, which in the table below is the NOI for stabilized properties consolidated by the Company for the periods presented (Dollars in thousands):

	Three Months Ended December 31, 2022			Three Months Ended December 31, 2021			Twelve Months Ended December 31, 2022			Twelve Months Ended December 31, 2021
Earnings from operations	$	228,143		$	101,262		$	595,229		$	529,995
Adjustments:
Corporate-level property management expenses		10,172			9,076			40,704			36,211
Depreciation and amortization		135,758			132,179			539,319			520,066
Management and other fees from affiliates		(2,826	)		(2,431	)		(11,139	)		(9,138	)
General and administrative		16,036			17,092			56,577			51,838
Expensed acquisition and investment related costs		1,884			39			2,132			203
Gain on sale of real estate and land		(94,416	)		-			(94,416	)		(142,993	)
NOI		294,751			257,217			1,128,406			986,182
Less: Non-same property NOI		(22,437	)		(16,854	)		(76,027	)		(56,267	)
Same-Property NOI	$	272,314		$	240,363		$	1,052,379		$	929,915

See Company’s Form 10-K and Form 10-Qs filed with the SEC for additional information

S-18.3

E S S E X P R O P E R T Y T R U S T, I N C.

Reconciliations of Non-GAAP Financial Measures and Other Terms

Public Bond Covenants

Public Bond Covenants refer to certain covenants set forth in instruments governing the Company's unsecured indebtedness. These instruments require the Company to meet specified financial covenants, including covenants relating to net worth, fixed charge coverage, debt service coverage, the amounts of total indebtedness and secured indebtedness, leverage and certain investment limitations. These covenants may restrict the Company's ability to expand or fully pursue its business strategies. The Company's ability to comply with these covenants may be affected by changes in the Company's operating and financial performance, changes in general business and economic conditions, adverse regulatory developments or other events adversely impacting it. The breach of any of these covenants could result in a default under the Company's indebtedness, which could cause those and other obligations to become due and payable. If any of the Company's indebtedness is accelerated, the Company may not be able to repay it. For risks related to failure to comply with these covenants, see “Item 1A: Risk Factors - Risks Related to Our Indebtedness and Financings” in the Company's annual report on Form 10-K and other reports filed by the Company with the Securities and Exchange Commission ("SEC").

The ratios set forth on page S-6 in the section titled “Public Bond Covenants” are provided only to show the Company's compliance with certain specified covenants that are contained in indentures related to the Company's issuance of Senior Notes, which indentures are filed by the Company with the SEC. See, for example, the Indenture dated March 1, 2021, filed by the Company as Exhibit 4.1 to the Company's Form 8-K, filed on March 1, 2021. These ratios should not be used for any other purpose, including without limitation to evaluate the Company's financial condition or results of operations, nor do they indicate the Company's covenant compliance as of any other date or for any other period. The capitalized terms in the disclosure are defined in the indentures filed by the Company with the SEC and may differ materially from similar terms used by other companies that present information about their covenant compliance.

Secured Debt

Secured Debt means debt of the Company or any of its subsidiaries which is secured by an encumbrance on any property or assets of the Company or any of its subsidiaries. The Company's total amount of Secured Debt is set forth on page S-5.

Unencumbered NOI to Adjusted Total NOI

This ratio is presented on page S-6 in the section titled "Selected Credit Ratios". Unencumbered NOI means the sum of NOI for those real estate assets which are not subject to an encumbrance securing debt. The ratio of Unencumbered NOI to Adjusted Total NOI for the three months ended December 31, 2022, annualized, is calculated by dividing Unencumbered NOI, annualized for the three months ended December 31, 2022 and as further adjusted for pro forma NOI for properties acquired or sold during the recent quarter, by Adjusted Total NOI as annualized. The calculation and reconciliation of NOI is set forth in “Net Operating Income ("NOI") and Same-Property NOI Reconciliations” above. This ratio is presented by the Company because it provides rating agencies and investors an additional means of comparing the Company's ability to service debt obligations to that of other companies. The calculation of this ratio is presented in the table below (Dollars in thousands):

	Annualized Q4'22 ⁽¹⁾
NOI	$	1,179,004
Adjustments:
NOI from real estate assets sold or held for sale		(3,109	)
Other, net⁽²⁾		(11,574	)
Adjusted Total NOI		1,164,321
Less: Encumbered NOI		(62,766	)
Unencumbered NOI	$	1,101,555

Encumbered NOI	$	62,766
Unencumbered NOI		1,101,555
Adjusted Total NOI	$	1,164,321

Unencumbered NOI to Adjusted Total NOI		95	%

⁽¹⁾

This table is based on the amounts for the most recent quarter, multiplied by four.

⁽²⁾

Includes intercompany eliminations pertaining to self-insurance and other expenses.

See Company’s Form 10-K and Form 10-Qs filed with the SEC for additional information

S-18.4