8-K - ESS - Equibles

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

Current Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Date of Report (Date of Earliest Event Reported): July 30, 2024

ESSEX PROPERTY TRUST, INC.

ESSEX PORTFOLIO, L.P.

(Exact Name of Registrant as Specified in Its Charter)

001-13106 (Essex Property Trust, Inc.)

333-44467-01 (Essex Portfolio, L.P.)

(Commission File Number)

Maryland (Essex Property Trust,<br> Inc.)	77-0369576 (Essex Property Trust,<br> Inc.)
California (Essex Portfolio, L.P.)	77-0369575 (Essex Portfolio, L.P.)
(State or Other Jurisdiction of Incorporation)	(I.R.S. Employer Identification No.)

1100 Park Place, Suite 200

San Mateo, CA 94403

(Address of principal executive offices, including zip code)

(650) 655-7800

(Registrant’s telephone number, including area code)

Not Applicable

(Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

☐	Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐	Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
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☐	Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
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☐	Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
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Securities registered pursuant to Section 12(b) of the Act:

Title of each class	Trading<br><br> <br>Symbol(s)	Name of each exchange on which registered
Common Stock, $.0001 par value (Essex Property Trust, Inc.)	ESS	New York Stock Exchange

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter):

Essex Property Trust, Inc.	Emerging growth company	☐
Essex Portfolio, L.P.	Emerging growth company	☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Item 2.02.	Results of Operations and Financial Condition.

On July 30, 2024, Essex Property Trust, Inc. (the “Company”) issued a press release and supplemental information announcing the Company’s financial results for the three and six months ended June 30, 2024. The Company has posted a copy of the press release and supplemental information on the Company’s website at www.essex.com. A copy of the press release and supplemental information is attached hereto as Exhibit 99.1 and incorporated by reference herein.

The information in this report (including Exhibit 99.1) is being furnished pursuant to Item 2.02 and shall not be deemed to be “filed” for purposes of Section 18 of the Securities Exchange Act of 1934 (the “Exchange Act”), or otherwise subject to the liabilities of that section, nor shall it be deemed to be incorporated by reference in any filing under the Securities Act of 1933 or the Exchange Act.

Item 9.01.	Financial Statements and Exhibits.

(d) Exhibits.

Exhibit No.	Description
99.1	Press Release and Supplemental Information for the three and six months ended June 30, 2024.
104	Cover Page Interactive Data File - the cover page XBRL tags are embedded within the Inline XBRL document.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the registrants have duly caused this report to be signed on their behalf by the undersigned, hereunto duly authorized.

Date: July 30, 2024	ESSEX PROPERTY TRUST, INC.
	/s/ Barbara Pak
	Name:	Barbara Pak
	Title:	Executive Vice President and Chief Financial Officer
	ESSEX PORTFOLIO, L.P.
	By:	Essex Property Trust, Inc.
	Its:	General Partner
	/s/ Barbara Pak
	Name:	Barbara Pak
	Title:	Executive Vice President and Chief Financial Officer

Exhibit 99.1

Second Quarter 2024

Earnings Release and Supplemental Data

Table of Contents
Earnings Press Release	Pages 1 - 9
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 Revenue Results by County, Quarter-to-Date	S-9
Same-Property Revenue Results by County, Year-to-Date	S-9.1
Same-Property Operating Expenses, Quarter and Year-to-Date	S-10
Capital Expenditures	S-11
Co-Investments and Preferred Equity Investments	S-12
Assumptions for 2024 FFO Guidance Range	S-13
Reconciliation of Projected EPS, FFO and Core FFO per diluted share	S-13.1
Components to Full-Year 2024E Same-Property Revenue Growth	S-13.2
Summary of Apartment Community Acquisitions and Dispositions Activity	S-14
Same-Property Delinquencies, Operating Statistics, and Revenue Growth on a GAAP basis	S-15
MSA Level Supply Forecast: 2023A – 2024E	S-16
Improving Net Domestic Migration Trends Support West Coast Housing Demand	S-16.1
Reconciliations of Non-GAAP Financial Measures and Other Terms	S-17.1 – S-17.4

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

www.essex.com

Essex Announces Second Quarter 2024 Results and

Raises Full-Year 2024 Guidance

San Mateo, California—July 30, 2024—Essex Property Trust, Inc. (NYSE: ESS) (the “Company”) announced today its second quarter 2024 earnings results and related business activities.

Net Income, Funds from Operations (“FFO”), and Core FFO per diluted share for the quarter ended June 30, 2024 are detailed below.

	Three Months Ended<br><br> <br>June 30,				Six Months Ended<br><br> <br>June 30,
	2024				2024
Per Diluted Share
Net Income		1.45	1.55	-6.5%		5.69	3.94	44.4%
Total FFO		3.89	3.87	0.5%		8.49	7.68	10.5%
Core FFO		3.94	3.77	4.5%		7.77	7.42	4.7%

All values are in US Dollars.

Second Quarter 2024 Highlights:

•	Reported Net Income per diluted share for the second quarter of 2024 of $1.45, compared to $1.55 in the second quarter of 2023.
•	Grew Core FFO per diluted share by 4.5% compared to the second quarter of 2023, exceeding the midpoint of the Company’s guidance range by $0.11. The outperformance was primarily driven by favorable<br> consolidated NOI growth.
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•	Achieved same-property revenue and net operating income (“NOI”) growth of 3.4% and 3.0%, respectively, compared to the second quarter of 2023. On a sequential basis, same-property revenues and NOI<br> improved 1.2% and 2.5%, respectively.
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•	Achieved year-over-year blended rate growth of 3.4% for the second quarter of 2024 as compared to 2.2% year-over-year blended rate growth achieved in the first quarter of 2024.
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•	Acquired two apartment home communities in Northern California at a combined valuation of $147.7 million.
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•	Raised full-year 2024 guidance range as detailed in the table below:
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Full-Year 2024 Revised Guidance	Revised<br> Range
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Net Income per diluted share	8.23 - 8.47	8.35	+$0.11
Core FFO per diluted share	15.38 - 15.62	15.50	+$0.27
Same-Property Revenues	2.70% to 3.30%	3.00%	+0.75%
Same-Property Operating Expenses	4.50% to 5.00%	4.75%	+0.50%
Same-Property NOI	1.80% to 2.80%	2.30%	+0.90%

All values are in US Dollars.

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

www.essex.com

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 June 30, 2024 compared to the quarter ended June 30, 2023, and the sequential percentage change for the quarter ended June 30, 2024 compared to the quarter ended March 31, 2024, by submarket for the Company:

	Q2 2024 vs.<br><br> <br>Q2 2023		Q2 2024 vs.<br><br> <br>Q1 2024		% of<br><br> <br>Total
	Revenue<br><br> <br>Change		Revenue<br><br> <br>Change		Q2 2024<br><br> <br>Revenues
Southern California
Los Angeles County		2.2%		1.3%		18.3%
Orange County		4.9%		0.8%		10.5%
San Diego County		6.3%		1.1%		9.0%
Ventura County		5.4%		1.3%		4.1%
Total Southern California		4.1%		1.1%		41.9%
Northern California
Santa Clara County		2.9%		1.4%		19.2%
Alameda County		1.5%		0.7%		7.6%
San Mateo County		4.6%		3.0%		6.0%
Contra Costa County		3.2%		1.1%		5.3%
San Francisco		2.1%		0.7%		2.5%
Total Northern California		2.9%		1.4%		40.6%
Seattle Metro		3.3%		1.0%		17.5%
Same-Property Portfolio		3.4%		1.2%		100.0%

The table below illustrates the components that drove the change in same-property revenue on a year-over-year basis for the three- and six-month periods ended June 30, 2024 and on a sequential basis for the quarter ended June 30, 2024.

Same-Property Revenue Components
Scheduled Rents	1.8%	2.0%	0.6%
Delinquencies	1.1%	0.9%	0.4%
Cash Concessions	0.1%	0.2%	0.1%
Vacancy	-0.5%	-0.5%	-0.1%
Other Income	0.9%	0.9%	0.2%
2024 Same-Property Revenue Growth	3.4%	3.5%	1.2%

	Year-Over-Year Change						Year-Over-Year Change
	Q2 2024 compared to Q2 2023						YTD 2024 compared to YTD 2023
	Revenues		Operating<br><br> <br>Expenses		NOI		Revenues		Operating<br><br> <br>Expenses		NOI
Southern California		4.1%		5.8%		3.4%		4.3%		3.9%		4.5%
Northern California		2.9%		1.9%		3.3%		3.0%		5.1%		2.1%
Seattle Metro		3.3%		7.8%		1.5%		2.9%		5.9%		1.7%
Same-Property Portfolio		3.4%		4.5%		3.0%		3.5%		4.8%		3.0%
	Sequential Change
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	Q2 2024 compared to Q1 2024
	Revenues		Operating<br><br> <br>Expenses		NOI
Southern California		1.1%		-1.0%		2.0%
Northern California		1.4%		-3.7%		3.8%
Seattle Metro		1.0%		2.0%		0.6%
Same-Property Portfolio		1.2%		-1.7%		2.5%
	Financial Occupancies
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	Quarter Ended
	6/30/2024		3/31/2024		6/30/2023
Southern California		95.7%		96.0%		96.4%
Northern California		96.3%		96.2%		96.6%
Seattle Metro		97.1%		97.0%		96.9%
Same-Property Portfolio		96.2%		96.3%		96.6%

Investment Activity

Real Estate

In April, the Company elected to accept the third-party sponsor’s common equity interest affiliated with its $14.7 million preferred equity investment in a stabilized community comprising 75 apartment homes located in Sunnyvale, CA. Concurrent with the closing, the Company unencumbered the property and consolidated the community on the Company’s financial statements at a $46.6 million valuation.

In May, the Company acquired ARLO Mountain View, a 164-unit apartment home community located in Mountain View, CA for a total contract price of $101.1 million. The property was built in 2018 and includes 10,725 square feet of fully leased retail space.

Subsequent to quarter end, the Company acquired its joint venture partner’s 49.9% common equity interest in Patina at Midtown, a 269-unit apartment home community built in 2021 and located in San Jose, CA, for a total purchase price of $117.0 million on a gross basis. Concurrent with the closing, the Company unencumbered the property and was fully redeemed on a preferred equity investment affiliated with the partnership.

Other Investments

Subsequent to quarter end, the Company received cash proceeds of $40.1 million from a full redemption of a subordinated loan investment yielding an 11.5% rate of return. Year-to-date through July, the Company has received cash proceeds of $50.4 million from redemptions of structured finance investments yielding an 11.2% weighted average rate of return.

Liquidity and Balance Sheet

Common Stock

Year-to-date through July 26, 2024, the Company has not issued any shares of common stock through its equity distribution program or repurchased any shares through its stock repurchase plan. As of July 26, 2024, the Company had $302.7 million of purchase authority remaining under its stock repurchase plan.

Balance Sheet

In May, the Company repaid its $400.0 million unsecured notes at maturity with proceeds from the $298.0 million 10-year secured loans financed in July 2023 and a portion of the $350.0 million unsecured bond issued in March 2024.

As of July 26, 2024, the Company had approximately $1.1 billion in liquidity via undrawn capacity on its unsecured credit facilities, cash and cash equivalents, and marketable securities.

Guidance

For the second quarter of 2024, the Company exceeded the midpoint of the guidance range provided in its first quarter 2024 earnings release for Core FFO by $0.11 per diluted share. The outperformance primarily relates to $0.09 per share of favorable consolidated NOI, of which $0.04 per share is timing related or one-time in nature.

The following table provides a reconciliation of second quarter 2024 Core FFO per diluted share to the midpoint of the guidance provided in the Company’s first quarter 2024 earnings release.

	Per Diluted<br><br> <br>Share
Guidance midpoint of Core FFO per diluted share for Q2 2024	$	3.83
Same-Property Revenues		0.05
Non-Same-Property Revenues (One-Time)		0.02
Consolidated Operating Expenses (Timing Related)		0.02
FFO from Co-Investments		0.02
Core FFO per diluted share for Q2 2024 reported	$	3.94

The table below provides key updates to the Company’s 2024 full-year assumptions for Net Income, Total FFO, Core FFO per diluted share, and same-property growth. For additional details regarding the Company’s 2024 Core FFO guidance range, please see page S-13 of the accompanying supplemental financial information.

2024 Full-Year and Third Quarter Guidance

	Previous<br> Range		Revised<br> Range
Per Diluted Share
Net Income	8.04 - 8.44	$8.24	8.23 - 8.47	8.35	+$0.11
Total FFO	15.53 - 15.93	$15.73	15.93 - 16.17	16.05	+$0.32
Core FFO	15.03 - 15.43	$15.23	15.38 - 15.62	15.50	+$0.27
Q3 2024 Core FFO	-	-	3.81 - 3.93	3.87	-
Same-Property Growth on a Cash-Basis^(1)^
Revenues	1.50% to 3.00%	2.25%	2.70% to 3.30%	3.00%	+0.75%
Operating Expenses	3.50% to 5.00%	4.25%	4.50% to 5.00%	4.75%	+0.50%
NOI	0.00% to 2.80%	1.40%	1.80% to 2.80%	2.30%	+0.90%

All values are in US Dollars.

^(1)^	The midpoint of the Company’s same-property revenues and NOI on a GAAP basis are 3.20% and 2.50%, respectively, representing a 0.80% and 0.90% increase to the Company’s previous guidance midpoints.

Conference Call with Management

The Company will host an earnings conference call with management to discuss its quarterly results on Wednesday, July 31, 2024 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 second quarter 2024 earnings link. To access the replay, dial (844) 512-2921 using the replay pin number 13747560. 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.

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 255 apartment communities comprising over 62,000 apartment homes. 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 land 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 six months ended June 30, 2024 and 2023 (in thousands, except for share and per share amounts):

	Three Months Ended<br><br> <br>June 30,						Six Months Ended<br><br> <br>June 30,
Funds from Operations attributable to common stockholders and unitholders	2024			2023			2024			2023
Net income available to common stockholders	$	92,914		$	99,620		$	365,645		$	253,152
Adjustments:
Depreciation and amortization		145,613			136,718			285,346			273,065
Gains not included in FFO		-			-			(138,326	)		(59,238	)
Casualty loss		-			-			-			433
Impairment loss from unconsolidated co-investments		-			-			3,726			-
Depreciation and amortization from unconsolidated co-investments		17,380			17,848			35,850			35,457
Noncontrolling interest related to Operating Partnership units		3,270			3,506			12,869			8,910
Depreciation attributable to third party ownership and other		(390	)		(365	)		(779	)		(724	)
Funds from Operations attributable to common stockholders and unitholders	$	258,787		$	257,327		$	564,331		$	511,055
FFO per share – diluted	$	3.89		$	3.87		$	8.49		$	7.68
Expensed acquisition and investment related costs	$	-		$	5		$	68		$	344
Tax (benefit) expense on unconsolidated co-investments ^(1)^		(807	)		1,733			(758	)		833
Realized and unrealized gains on marketable securities, net		(1,597	)		(7,591	)		(4,948	)		(8,871	)
Provision for credit losses		19			16			66			34
Equity loss (income) from non-core co-investments ^(2)^		143			(978	)		(5,727	)		(884	)
Co-investment promote income		-			-			(1,531	)		-
Income from early redemption of preferred equity investments and notes receivable		-			(285	)		-			(285	)
General and administrative and other, net		5,906			561			8,447			827
Insurance reimbursements, legal settlements, and other, net ^(3)^		(486	)		(295	)		(43,300	)		(8,799	)
Core Funds from Operations attributable to common stockholders and unitholders	$	261,965		$	250,493		$	516,648		$	494,254
Core FFO per share – diluted	$	3.94		$	3.77		$	7.77		$	7.42
Weighted average number of shares outstanding diluted ^(4)^		66,486,464			66,444,114			66,477,724			66,584,049
^(1)^	Represents tax related to net unrealized gains or losses on technology co-investments.
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^(2)^	Represents the Company's share of co-investment income or loss from technology co-investments.
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^(3)^	Includes legal settlement gains of $42.5 million and $7.7 million for the six months ended June 30, 2024 and 2023, respectively.
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^(4)^	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<br> 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<br><br> <br>June 30,						Six Months Ended<br><br> <br>June 30,
	2024			2023			2024			2023
Earnings from operations	$	137,450		$	134,832		$	269,809		$	322,217
Adjustments:
Corporate-level property management expenses		12,123			11,451			23,854			22,883
Depreciation and amortization		145,613			136,718			285,346			273,065
Management and other fees from affiliates		(2,573	)		(2,778	)		(5,286	)		(5,543	)
General and administrative		21,136			13,813			38,307			29,124
Expensed acquisition and investment related costs		-			5			68			344
Casualty loss		-			-			-			433
Gain on sale of real estate and land		-			-			-			(59,238	)
NOI		313,749			294,041			612,098			583,285
Less: Non-same property NOI		(20,325	)		(9,170	)		(32,315	)		(20,436	)
Same-Property NOI	$	293,424		$	284,871		$	579,783		$	562,849

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 third quarter and full-year 2024 guidance (including net income, Total FFO and Core FFO, same-property growth and related assumptions) and anticipated yield on certain investments. 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: assumptions related to our third quarter and full-year 2024 guidance; 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; geopolitical tensions and regional conflicts, and the related impacts on macroeconomic conditions, including, among other things, interest rates and inflation; the terms of any refinancing may not be as favorable as the terms of existing indebtedness; the Company’s inability to maintain our investment grade credit rating with the rating agencies; the Company may be unsuccessful in the management of its relationships with its co-investment partners; the Company may fail to achieve its business objectives; time of actual completion and/or stabilization of development and redevelopment projects; estimates of future income from an acquired property may prove to be inaccurate; 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; unexpected difficulties in leasing of future development projects; volatility in financial and securities markets; the Company’s failure to successfully operate acquired properties; unforeseen consequences from cyber-intrusion; 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 for the year ended December 31, 2023, quarterly reports on Form 10-Q, and those risk factors and special considerations set forth in the Company's other filings with the SEC which may 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. 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-17.1 through S-17.4, "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

Loren Rainey

Director, Investor Relations

(650) 655-7800

lrainey@essex.com

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<br><br> <br>June 30,						Six Months Ended<br><br> <br>June 30,
	2024			2023			2024			2023
Revenues:
Rental and other property	$	439,782		$	413,265		$	863,997		$	822,921
Management and other fees from affiliates		2,573			2,778			5,286			5,543
		442,355			416,043			869,283			828,464
Expenses:
Property operating		126,033			119,224			251,899			239,636
Corporate-level property management expenses		12,123			11,451			23,854			22,883
Depreciation and amortization		145,613			136,718			285,346			273,065
General and administrative		21,136			13,813			38,307			29,124
Expensed acquisition and investment related costs		-			5			68			344
Casualty loss		-			-			-			433
		304,905			281,211			599,474			565,485
Gain on sale of real estate and land		-			-			-			59,238
Earnings from operations		137,450			134,832			269,809			322,217
Interest expense, net ^(1)^		(58,491	)		(51,779	)		(113,628	)		(101,791	)
Interest and other income		9,568			12,199			66,843			24,649
Equity income from co-investments		9,652			12,237			22,018			23,108
Tax benefit (expense) on unconsolidated co-investments		807			(1,733	)		758			(833	)
Gain on remeasurement of co-investment		-			-			138,326			-
Net income		98,986			105,756			384,126			267,350
Net income attributable to noncontrolling interest		(6,072	)		(6,136	)		(18,481	)		(14,198	)
Net income available to common stockholders	$	92,914		$	99,620		$	365,645		$	253,152
Net income per share - basic	$	1.45		$	1.55		$	5.69		$	3.94
Shares used in income per share - basic		64,209,878			64,182,555			64,207,482			64,319,783
Net income per share - diluted	$	1.45		$	1.55		$	5.69		$	3.94
Shares used in income per share - diluted		64,227,651			64,183,675			64,218,911			64,320,898
^(1)^	Refer to page S-17.2, 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

(Dollars in thousands)

	Three Months Ended<br><br> <br>June 30,						Six Months Ended<br><br> <br>June 30,
	2024			2023			2024			2023
Rental and other property
Rental income	$	432,141		$	407,786		$	849,377		$	812,421
Other property		7,641			5,479			14,620			10,500
Rental and other property	$	439,782		$	413,265		$	863,997		$	822,921
Property operating expenses
Real estate taxes	$	47,312		$	45,381		$	94,232		$	91,911
Administrative		15,290			12,730			29,099			24,884
Maintenance and repairs		13,940			14,683			28,790			29,267
Personnel costs		24,035			22,944			47,827			45,854
Utilities		25,456			23,486			51,951			47,720
Property operating expenses	$	126,033		$	119,224		$	251,899		$	239,636
Interest and other income
Marketable securities and other income	$	7,510		$	4,468		$	18,685		$	7,751
Realized and unrealized gains on marketable securities, net		1,597			7,591			4,948			8,871
Provision for credit losses		(19	)		(16	)		(66	)		(34	)
Insurance reimbursements, legal settlements, and other, net		480			156			43,276			8,061
Interest and other income	$	9,568		$	12,199		$	66,843		$	24,649
Equity income from co-investments
Equity loss from co-investments	$	(2,322	)	$	(2,897	)	$	(5,874	)	$	(5,848	)
Income from preferred equity investments		12,111			13,732			24,336			27,049
Equity (loss) income from non-core co-investments		(143	)		978			5,727			884
Insurance reimbursements, legal settlements, and other, net		6			139			24			738
Impairment loss from unconsolidated co-investment		-			-			(3,726	)		-
Co-investment promote income		-			-			1,531			-
Income from early redemption of preferred equity investments		-			285			-			285
Equity income from co-investments	$	9,652		$	12,237		$	22,018		$	23,108
Noncontrolling interest
Limited partners of Essex Portfolio, L.P.	$	3,270		$	3,506		$	12,869		$	8,910
DownREIT limited partners' distributions		2,291			2,163			4,583			4,331
Third-party ownership interest		511			467			1,029			957
Noncontrolling interest	$	6,072		$	6,136		$	18,481		$	14,198

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<br><br> <br>June 30,								Six Months Ended<br><br> <br>June 30,
	2024			2023			% Change		2024			2023			% Change
Funds from operations attributable to common stockholders and<br> <br>unitholders (FFO)
Net income available to common stockholders	$	92,914		$	99,620				$	365,645		$	253,152
Adjustments:
Depreciation and amortization		145,613			136,718					285,346			273,065
Gains not included in FFO		-			-					(138,326	)		(59,238	)
Casualty loss		-			-					-			433
Impairment loss from unconsolidated co-investments		-			-					3,726			-
Depreciation and amortization from unconsolidated co-investments		17,380			17,848					35,850			35,457
Noncontrolling interest related to Operating Partnership units		3,270			3,506					12,869			8,910
Depreciation attributable to third party ownership and other ^(2)^		(390	)		(365	)				(779	)		(724	)
Funds from operations attributable to common stockholders and unitholders	$	258,787		$	257,327				$	564,331		$	511,055
FFO per share-diluted	$	3.89		$	3.87			0.5%	$	8.49		$	7.68			10.5%
Components of the change in FFO
Non-core items:
Expensed acquisition and investment related costs	$	-		$	5				$	68		$	344
Tax (benefit) expense on unconsolidated co-investments ^(3)^		(807	)		1,733					(758	)		833
Realized and unrealized gains on marketable securities, net		(1,597	)		(7,591	)				(4,948	)		(8,871	)
Provision for credit losses		19			16					66			34
Equity loss (income) from non-core co-investments ^(4)^		143			(978	)				(5,727	)		(884	)
Co-investment promote income		-			-					(1,531	)		-
Income from early redemption of preferred equity investments and notes receivable		-			(285	)				-			(285	)
General and administrative and other, net		5,906			561					8,447			827
Insurance reimbursements, legal settlements, and other, net ^(5)^		(486	)		(295	)				(43,300	)		(8,799	)
Core funds from operations attributable to common stockholders and unitholders	$	261,965		$	250,493				$	516,648		$	494,254
Core FFO per share-diluted	$	3.94		$	3.77			4.5%	$	7.77		$	7.42			4.7%
Weighted average number of shares outstanding diluted ^(6)^		66,486,464			66,444,114					66,477,724			66,584,049
^(1)^	Refer to page S-17.2, 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 six months ended June 30, 2024 was $0.8 million and $1.7 million, respectively.
---	---
^(3)^	Represents tax related to net unrealized gains or losses on technology co-investments.
---	---
^(4)^	Represents the Company's share of co-investment income or loss from technology co-investments.
---	---
^(5)^	Includes legal settlement gains of $42.5 million and $7.7 million for the six months ended June 30, 2024 and 2023, respectively.
---	---
^(6)^	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)

	June 30, 2024			December 31, 2023
Real Estate:
Land and land improvements	$	3,167,721		$	3,036,912
Buildings and improvements		13,701,217			13,098,311
		16,868,938			16,135,223
Less: accumulated depreciation		(5,946,440	)		(5,664,931	)
		10,922,498			10,470,292
Real estate under development		24,515			23,724
Co-investments		1,041,328			1,061,733
		11,988,341			11,555,749
Cash and cash equivalents, including restricted cash		64,151			400,334
Marketable securities		84,291			87,795
Notes and other receivables		233,776			174,621
Operating lease right-of-use assets		53,373			63,757
Prepaid expenses and other assets		85,528			79,171
Total assets	$	12,509,460		$	12,361,427
Unsecured debt, net	$	5,267,902		$	5,318,531
Mortgage notes payable, net		885,563			887,204
Lines of credit		129,391			-
Distributions in excess of investments in co-investments		68,295			65,488
Operating lease liabilities		54,513			65,091
Other liabilities		415,407			398,930
Total liabilities		6,821,071			6,735,244
Redeemable noncontrolling interest		33,889			32,205
Equity:
Common stock		6			6
Additional paid-in capital		6,659,313			6,656,720
Distributions in excess of accumulated earnings		(1,216,557	)		(1,267,536	)
Accumulated other comprehensive income, net		38,877			33,556
Total stockholders' equity		5,481,639			5,422,746
Noncontrolling interest		172,861			171,232
Total equity		5,654,500			5,593,978
Total liabilities and equity	$	12,509,460		$	12,361,427

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 - June 30, 2024

(Dollars in thousands, except in footnotes)

									Scheduled principal payments, unamortized premiums (discounts) and (debt issuance costs) are as follows - excludes lines of credit:
										Unsecured			Secured			Total			Weighted<br><br> <br>Average<br><br> <br>Interest<br><br> <br>Rate			Percentage<br><br> <br>of Total<br><br> <br>Debt
				Weighted Average
	Balance<br><br> <br>Outstanding			Interest<br><br> <br>Rate			Maturity<br><br> <br>in Years
Unsecured Debt, net
Bonds public - fixed rate	$	5,000,000			3.3	%		7.4	2024	$	-		$	1,576		$	1,576			3.7	%		0.0	%
Term loan ^(1)^		300,000			4.2	%		3.3	2025		500,000			133,054			633,054			3.5	%		10.2	%
Unamortized discounts and debt									2026		450,000			99,405			549,405			3.5	%		8.9	%
issuance costs, net		(32,098	)		-			-	2027 ^(1)^		650,000			153,955			803,955			4.0	%		13.0	%
Total unsecured debt, net		5,267,902			3.4	%		7.1	2028		450,000			68,332			518,332			2.2	%		8.4	%
Mortgage Notes Payable, net									2029		500,000			1,456			501,456			4.1	%		8.1	%
Fixed rate - secured		665,984			4.3	%		5.3	2030		550,000			1,592			551,592			3.1	%		8.9	%
Variable rate - secured ^(2)^		222,275			4.5	%		13.6	2031		600,000			1,740			601,740			2.3	%		9.7	%
Unamortized premiums and debt									2032		650,000			1,903			651,903			2.6	%		10.6	%
issuance costs, net		(2,696	)		-			-	2033		-			330,126			330,126			5.0	%		5.3	%
Total mortgage notes payable, net		885,563			4.3	%		7.4	2034		350,000			2,275			352,275			5.6	%		5.7	%
Unsecured Lines of Credit									Thereafter		600,000			92,845			692,845			3.8	%		11.2	%
Line of credit ^(3)^		105,000			6.4	%		N/A	Subtotal		5,300,000			888,259			6,188,259			3.5	%		100.0	%
Line of credit ^(4)^		24,391			6.4	%		N/A	Debt Issuance Costs		(25,930	)		(2,841	)		(28,771	)		-			-
Total lines of credit		129,391			6.4	%		N/A	(Discounts)/Premiums		(6,168	)		145			(6,023	)		-			-
Total debt, net	$	6,282,856			3.5	%		7.1	Total	$	5,267,902		$	885,563		$	6,153,465			3.5	%		100.0	%

Capitalized interest for both the three and six months ended June 30, 2024 was approximately $0.1 million.

^(1)^	The unsecured term loan has a variable interest rate of Adjusted SOFR plus 0.85% and matures in October 2024 with three 12-month extension options, exercisable at the Company’s option. This loan has been swapped to an all-in<br> fixed rate of 4.2% and the swap has a termination date of October 2026.
^(2)^	$222.3 million of variable rate debt is tax exempt to the note holders.
---	---
^(3)^	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<br> line is Adjusted SOFR plus 0.765%, 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)^	As of June 30, 2024, 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 0.765%, which is based on a<br> tiered rate structure tied to the Company's corporate ratings and further adjusted by the facility's Sustainability Metric Grid. In July 2024, prior to its maturity the line of credit facility was amended such that the line's<br> capacity increased to $75 million and the scheduled maturity date was extended to July 2026.
---	---

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 - June 30, 2024

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

Capitalization Data					Public Bond Covenants ^(1)^	Actual		Requirement
Total debt, net			$	6,282,856
Common stock and potentially dilutive securities					Debt to Total Assets:		34%	< 65%
Common stock outstanding				64,210
Limited partnership units ^(1)^				2,259	Secured Debt to Total Assets:		5%	< 40%
Options-treasury method				30
Total shares of common stock and potentially dilutive securities				66,499	Interest Coverage:		552%	> 150%
Common stock price per share as of June 28, 2024			$	272.20	Unsecured Debt Ratio ^(2)^:		293%	> 150%
Total equity capitalization			$	18,101,028
Total market capitalization			$	24,383,884	Selected Credit Ratios ^(3)^	Actual
Ratio of debt to total market capitalization				25.8%	Net Indebtedness Divided by Adjusted EBITDAre,<br><br> normalized and annualized		5.4
Credit Ratings					Unencumbered NOI to Adjusted Total NOI:		93%
Rating Agency	Rating	Outlook
Moody's	Baa1	Stable			^(1)^ Refer to page S-17.4 for additional information on the Company's Public Bond Covenants.
Standard & Poor's	BBB+	Stable			^(2)^ Unsecured Debt Ratio is unsecured assets (excluding investments in co-investments) divided by<br> unsecured indebtedness.
^(1)^ Assumes conversion of all outstanding limited partnership<br><br> <br>units in the Operating Partnership into shares of the<br><br> <br>Company's common stock.					^(3)^ Refer to pages S-17.1 to S-17.4, the section titled "Reconciliations of Non-GAAP Financial<br> 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 June 30, 2024

	Apartment Homes						Average Monthly Rental Rate ^(1)^						Percent of NOI ^(2)^
Region - County	Consolidated		Unconsolidated<br><br> <br>Co-investments		Total		Consolidated		Unconsolidated<br><br> <br>Co-investments^(3)^		Total ^(4)^		Consolidated			Unconsolidated<br><br> <br>Co-investments ^(3)^			Total ^(4)^
Southern California
Los Angeles County		9,542		1,586		11,128	$	2,670	$	2,558	$	2,661		16.7	%		17.0	%		16.7	%
Orange County		5,843		500		6,343		2,740		2,578		2,733		11.7	%		5.8	%		11.2	%
San Diego County		5,442		443		5,885		2,618		3,007		2,634		10.7	%		5.0	%		10.2	%
Ventura County and Other		2,435		693		3,128		2,405		2,814		2,460		4.4	%		9.1	%		4.9	%
Total Southern California		23,262		3,222		26,484		2,648		2,672		2,650		43.5	%		36.9	%		43.0	%
Northern California
Santa Clara County^(5)^		8,988		1,774		10,762		3,032		2,948		3,024		20.0	%		19.5	%		20.0	%
Alameda County		3,959		1,512		5,471		2,589		2,584		2,588		6.8	%		16.2	%		7.5	%
San Mateo County		2,561		195		2,756		3,112		3,753		3,135		5.4	%		2.4	%		5.1	%
Contra Costa County		2,619		-		2,619		2,725		-		2,725		5.1	%		0.0	%		4.7	%
San Francisco		1,356		537		1,893		2,884		3,265		2,947		2.2	%		5.8	%		2.6	%
Total Northern California		19,483		4,018		23,501		2,901		2,880		2,899		39.5	%		43.9	%		39.9	%
Seattle Metro		10,555		1,970		12,525		2,186		2,131		2,181		17.0	%		19.2	%		17.1	%
Total		53,300		9,210		62,510	$	2,649	$	2,647	$	2,649		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 June 30, 2024, divided by the number<br> of apartment homes as of June 30, 2024.
---	---
^(2)^	Represents the percentage of actual NOI for the quarter ended June 30, 2024. See the section titled "Net Operating Income ("NOI") and Same-Property NOI Reconciliations" on page S-17.3.
---	---
^(3)^	Co-investment amounts weighted at Company's pro rata share.
---	---
^(4)^	At Company's pro rata share.
---	---
^(5)^	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<br><br> <br>Homes		Q2 '24			Q1 '24			Q4 '23			Q3 '23			Q2 '23
Rental and other property revenues:
Same-property		50,884	$	414,845		$	409,819		$	407,335		$	405,412		$	401,065
Acquisitions^(2)^		1,792		12,824			1,598			429			383			225
Redevelopment		178		1,565			1,541			1,536			1,564			1,595
Non-residential/other, net^(3)^		446		11,059			11,320			10,695			10,433			11,055
Straight-line rent concessions ^(4)^		-		(511	)		(63	)		(1,050	)		(1,394	)		(675	)
Total rental and other property revenues		53,300		439,782			424,215			418,945			416,398			413,265
Property operating expenses:
Same-property				121,421			123,460			119,371			121,326			116,194
Acquisitions^(2)^				3,585			479			153			137			90
Redevelopment				731			718			742			634			674
Non-residential/other, net^(3) (5)^				296			1,209			1,681			1,799			2,266
Total property operating expenses				126,033			125,866			121,947			123,896			119,224
Net operating income (NOI):
Same-property				293,424			286,359			287,964			284,086			284,871
Acquisitions^(2)^				9,239			1,119			276			246			135
Redevelopment				834			823			794			930			921
Non-residential/other, net^(3)^				10,763			10,111			9,014			8,634			8,789
Straight-line rent concessions ^(4)^				(511	)		(63	)		(1,050	)		(1,394	)		(675	)
Total NOI			$	313,749		$	298,349		$	296,998		$	292,502		$	294,041
Same-property metrics
Operating margin				71	%		70	%		71	%		70	%		71	%
Annualized turnover ^(6)^				41	%		37	%		40	%		48	%		45	%
Financial occupancy ^(7)^				96.2	%		96.3	%		96.1	%		96.4	%		96.6	%
^(1)^	Includes consolidated communities only.
---	---
^(2)^	Acquisitions include properties acquired which did not have comparable stabilized results as of January 1, 2023.
---	---
^(3)^	Non-residential/other, net consists of revenues generated from retail space, commercial properties, held for sale properties, disposition properties, properties undergoing significant construction activities that do not meet<br> 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.
---	---
^(4)^	Represents straight-line concessions for residential operating communities. Same-property revenues reflect concessions on a cash basis. Total Rental and Other Property Revenues reflect concessions on a straight-line basis in<br> accordance with U.S. GAAP.
---	---
^(5)^	Includes other expenses and intercompany eliminations pertaining to self-insurance.
---	---
^(6)^	Annualized turnover is defined as the number of apartment homes turned over during the quarter, annualized, divided by the total number of apartment homes.
---	---
^(7)^	Financial occupancy is defined as the percentage resulting from dividing actual rental income by total scheduled rental income. Actual rental income represents contractual rental income pursuant to leases without considering<br> delinquency and concessions. Total scheduled rental income represents the value of all apartment homes, with occupied apartment homes valued at contractual rental rates pursuant to leases and vacant apartment homes valued at<br> estimated market rents.
---	---

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 - Second Quarter 2024 vs. Second Quarter 2023 and First Quarter 2024

(Dollars in thousands, except average monthly rental rates)

						Average Monthly Rental Rate							Financial Occupancy									Gross Revenues							Sequential Gross<br><br> <br>Revenues
Region - County	Apartment<br><br> <br>Homes		Q2 '24<br><br> <br>% of<br><br> <br>Actual NOI			Q2 '24		Q2 '23		%<br><br> <br>Change			Q2 '24			Q2 '23			%<br><br> <br>Change			Q2 '24		Q2 '23		%<br><br> <br>Change			Q1 '24		%<br><br> <br>Change
Southern California
Los Angeles County		9,542		17.4	%	$	2,670	$	2,666		0.2	%		95.1	%		96.5	%		-1.5	%	$	76,251	$	74,594		2.2	%	$	75,270		1.3	%
Orange County		5,193		10.9	%		2,777		2,683		3.5	%		95.9	%		95.7	%		0.2	%		43,464		41,417		4.9	%		43,136		0.8	%
San Diego County		4,584		9.5	%		2,637		2,517		4.8	%		96.2	%		96.6	%		-0.4	%		37,129		34,921		6.3	%		36,713		1.1	%
Ventura County		2,254		4.4	%		2,398		2,290		4.7	%		96.7	%		97.2	%		-0.5	%		16,918		16,054		5.4	%		16,703		1.3	%
Total Southern California		21,573		42.2	%		2,661		2,599		2.4	%		95.7	%		96.4	%		-0.7	%		173,762		166,986		4.1	%		171,822		1.1	%
Northern California
Santa Clara County		8,653		20.3	%		3,003		2,949		1.8	%		96.7	%		96.9	%		-0.2	%		80,006		77,773		2.9	%		78,893		1.4	%
Alameda County		3,959		7.1	%		2,589		2,598		-0.3	%		95.6	%		96.4	%		-0.8	%		31,374		30,899		1.5	%		31,161		0.7	%
San Mateo County		2,561		5.6	%		3,112		3,053		1.9	%		95.8	%		96.4	%		-0.6	%		24,905		23,809		4.6	%		24,186		3.0	%
Contra Costa County		2,619		5.3	%		2,725		2,668		2.1	%		96.2	%		96.8	%		-0.6	%		21,974		21,286		3.2	%		21,735		1.1	%
San Francisco		1,178		2.1	%		2,850		2,831		0.7	%		95.6	%		95.5	%		0.1	%		10,306		10,095		2.1	%		10,238		0.7	%
Total Northern California		18,970		40.4	%		2,883		2,844		1.4	%		96.3	%		96.6	%		-0.3	%		168,565		163,862		2.9	%		166,213		1.4	%
Seattle Metro		10,341		17.4	%		2,193		2,163		1.4	%		97.1	%		96.9	%		0.2	%		72,518		70,217		3.3	%		71,784		1.0	%
Total Same-Property		50,884		100.0	%	$	2,649	$	2,602		1.8	%		96.2	%		96.6	%		-0.4	%	$	414,845	$	401,065		3.4	%	$	409,819		1.2	%

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 - Six months ended June 30, 2024 vs. Six months ended June 30, 2023

(Dollars in thousands, except average monthly rental rates)

Region - County				Average Monthly Rental Rate														Gross Revenues
		YTD 2024				YTD 2023			%<br><br> <br>Change		YTD 2024		YTD 2023		%<br><br> Change		YTD 2024			YTD 2023			%<br><br> <br>Change
Southern California
Los Angeles County	9,542	17.4	%	$	2,673		$	2,654		0.7	%	95.3	%	96.5	%	-1.2	%	$	151,521		$	148,224		2.2	%
Orange County	5,193	11.0	%		2,767			2,660		4.0	%	96.0	%	96.2	%	-0.2	%		86,600			82,259		5.3	%
San Diego County	4,584	9.5	%		2,621			2,487		5.4	%	96.4	%	97.1	%	-0.7	%		73,842			69,178		6.7	%
Ventura County	2,254	4.4	%		2,382			2,267		5.1	%	96.7	%	97.0	%	-0.3	%		33,621			31,612		6.4	%
Total Southern California	21,573	42.3	%		2,654			2,579		2.9	%	95.8	%	96.6	%	-0.8	%		345,584			331,273		4.3	%
Northern California
Santa Clara County	8,653	20.2	%		2,990			2,935		1.9	%	96.7	%	96.8	%	-0.1	%		158,899			153,908		3.2	%
Alameda County	3,959	7.0	%		2,590			2,595		-0.2	%	95.5	%	96.7	%	-1.2	%		62,535			61,598		1.5	%
San Mateo County	2,561	5.5	%		3,099			3,041		1.9	%	95.8	%	96.3	%	-0.5	%		49,091			47,044		4.4	%
Contra Costa County	2,619	5.3	%		2,713			2,655		2.2	%	96.3	%	96.9	%	-0.6	%		43,709			42,366		3.2	%
San Francisco	1,178	2.1	%		2,841			2,824		0.6	%	95.8	%	95.6	%	0.2	%		20,544			20,141		2.0	%
Total Northern California	18,970	40.1	%		2,874			2,833		1.4	%	96.2	%	96.6	%	-0.4	%		334,778			325,057		3.0	%
Seattle Metro	10,341	17.6	%		2,182			2,160		1.0	%	97.1	%	96.7	%	0.4	%		144,302			140,255		2.9	%
Total Same-Property	50,884	100.0	%	$	2,640		$	2,589		2.0	%	96.2	%	96.6	%	-0.4	%	$	824,664		$	796,585		3.5	%

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 June 30, 2024 and 2023

(Dollars in thousands)

Based on 50,884 apartment homes
	Q2 '24		Q2 '23		% Change			% of Op. Ex.
Same-property operating expenses:
Real estate taxes	$	44,910	$	43,257		3.8	%		37.0	%
Utilities		24,186		22,887		5.7	%		19.9	%
Personnel costs		22,828		22,234		2.7	%		18.8	%
Maintenance and repairs		13,151		14,299		-8.0	%		10.8	%
Administrative		7,347		7,040		4.4	%		6.1	%
Insurance and other		8,999		6,477		38.9	%		7.4	%
Total same-property operating expenses	$	121,421	$	116,194		4.5	%		100.0	%
	YTD 2024		YTD 2023		% Change			% of Op. Ex.
---	---	---	---	---	---	---	---	---	---	---
Same-property operating expenses:
Real estate taxes	$	89,762	$	87,850		2.2	%		36.7	%
Utilities		49,885		46,426		7.5	%		20.4	%
Personnel costs		45,774		44,370		3.2	%		18.7	%
Maintenance and repairs		27,565		28,474		-3.2	%		11.3	%
Administrative		14,447		13,682		5.6	%		5.9	%
Insurance and other		17,448		12,934		34.9	%		7.0	%
Total same-property operating expenses	$	244,881	$	233,736		4.8	%		100.0	%

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.

Capital Expenditures - June 30, 2024 ^(1)^

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

Revenue Generating Capital Expenditures^(2)^	Q2 '24		Trailing 4<br><br> <br>Quarters
Same-property portfolio	$	11,293	$	49,185
Non-same property portfolio		153		1,108
Total revenue generating capital expenditures	$	11,446	$	50,293
Number of same-property interior renovations		200		1,352
Number of total consolidated interior renovations		203		1,374
Non-Revenue Generating Capital Expenditures ^(3)^	Q2 '24		Trailing 4<br><br> <br>Quarters
---	---	---	---	---
Non-revenue generating capital expenditures	$	34,079	$	137,064
Average apartment homes in quarter		53,181		52,160
Capital expenditures per apartment homes in the quarter	$	641	$	2,628
^(1)^	The Company incurred $0.1 million of capitalized interest, $4.9 million of capitalized overhead and $0.2 million of co-investment fees related to redevelopment in Q2 2024.
---	---
^(2)^	Represents revenue generating or expense saving expenditures, such as full-scale redevelopments, interior unit turn renovations, enhanced amenities and certain resource management<br> 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,<br> furniture and fixtures, expenditures in which the Company has been reimbursed or 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-11

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 - June 30, 2024

(Dollars in thousands, except in footnotes)

	Weighted<br><br> <br>Average<br><br> <br>Essex<br><br> <br>Ownership<br><br> <br>Percentage		Total<br><br> <br>Undepreciated<br><br> <br>Book<br><br> <br>Value		Debt<br><br> <br>Amount		Essex<br><br> <br>Book Value		Weighted<br><br> <br>Average<br><br> <br>Borrowing<br><br> <br>Rate^(1)^			Remaining<br><br> <br>Term of Debt<br><br> <br>(in Years)		Three Months<br><br> <br>Ended<br><br> <br>June 30,<br><br> <br>2024			Six Months<br><br> <br>Ended<br><br> <br>June 30,<br><br> <br>2024
Operating and Other Non-Consolidated Joint Ventures														NOI
Wesco I, III, IV, V, VI ^(2)^	54%	5,976	$	2,161,592	$	1,435,833	$	139,728		3.5	%		2.3	$	30,042		$	59,339
BEXAEW ^(3)^, BEX II, BEX IV, and 500 Folsom	50%	1,603		942,192		325,025		211,582		4.8	%		12.5		9,186			25,026
Other ^(4)^	51%	1,631		672,023		497,025		83,161		4.6	%		7.7		8,809			17,268
Total Operating and Other Non-Consolidated Joint Ventures		9,210	$	3,775,807	$	2,257,883	$	434,471		3.9	%		5.0	$	48,037		$	101,633
														Essex Portion of NOI and<br><br> <br>Expenses
NOI														$	25,914		$	54,551
Depreciation															(17,380	)		(35,850	)
Interest expense and other, net															(10,856	)		(24,575	)
Equity (loss) income from non-core co-investments															(143	)		5,727
Insurance reimbursements, legal settlements, and other, net															6			24
Co-investment promote income															-			1,531
Net income from operating and other co-investments														$	(2,459	)	$	1,408
									Weighted<br><br> <br>Average<br><br> <br>Preferred<br><br> <br>Return			Weighted<br><br> <br>Average<br><br> <br>Expected<br><br> <br>Term		Income from Preferred Equity<br><br> <br>Investments
Income from preferred equity investments														$	12,111		$	24,336
Impairment loss from unconsolidated co-investment															-			(3,726	)
Preferred Equity Investments^(5)^							$	538,562		9.7	%		1.7	$	12,111		$	20,610
Total Co-investments							$	973,033						$	9,652		$	22,018
^(1)^	Represents the year-to-date annual weighted average borrowing rate.
---	---
^(2)^	As of June 30, 2024, the Company’s investments in Wesco I, Wesco III, and Wesco IV were classified as a liability of $63.6 million due to distributions received in excess of the Company's<br> investment.
---	---
^(3)^	In March 2024, the Company acquired BEXAEW LLC's 49.9% interest in four communities totaling 1,480 apartment homes. The NOI included in the six months ended June 30, 2024 represents the<br> Company’s pro-rata share prior to the acquisition.
---	---
^(4)^	As of June 30, 2024, the Company’s investments in Expo and Century Towers were classified as a liability of $4.7 million due to distributions received in excess of the Company's investment.<br> The weighted average Essex ownership percentage excludes our investments in non-core technology co-investments which are carried at fair value.
---	---
^(5)^	As of June 30, 2024, the Company has invested in 23 preferred equity investments.
---	---

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.

Assumptions for 2024 FFO Guidance Range

(Dollars in thousands, except per share data)

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-17.1 to S-17.4 for the definitions of non-GAAP financial measures and other terms.

	Six Months Ended			2024 Full-Year Guidance Range
	June 30, 2024 ^(1)^			Low End			High End			Comments about 2024 Full-Year Guidance
Total NOI from Consolidated Communities	$	612,098		$	1,229,500		$	1,242,500		Includes a range of same-property NOI growth of 1.8% to 2.8%. Reflects acquisitions completed through July
Management Fees		5,286			10,100			10,700
Interest Expense
Interest expense, before capitalized interest		(113,735	)		(229,900	)		(228,900	)	Updated to reflect investment activity
Interest capitalized		107			100			300
Net interest expense		(113,628	)		(229,800	)		(228,600	)
Recurring Income and Expenses
Interest and other income		18,685			27,100			28,100
FFO from co-investments		54,312			105,100			106,300		Reflects updated timing of preferred equity redemptions and includes investment activity through July
General and administrative		(29,860	)		(58,100	)		(59,200	)
Corporate-level property management expenses		(23,854	)		(47,700	)		(48,300	)
Non-controlling interest		(6,391	)		(13,200	)		(12,600	)
Total recurring income and expenses		12,892			13,200			14,300
Non-Core Income and Expenses
Expensed acquisition and investment related costs		(68	)		(68	)		(68	)
Tax benefit on unconsolidated co-investments		758			758			758
Realized and unrealized gains on marketable securities, net		4,948			4,948			4,948
Provision for credit losses		(66	)		(66	)		(66	)
Equity income from non-core co-investments		5,727			5,727			5,727
Co-Investment promote income		1,531			1,531			1,531
General and administrative and other, net		(8,447	)		(20,000	)		(20,000	)
Insurance reimbursements, legal settlements, and other, net		43,300			43,300			43,300
Total non-core income and expenses		47,683			36,130			36,130
Funds from Operations ^(2)^	$	564,331		$	1,059,130		$	1,075,030
Funds from Operations per diluted Share	$	8.49		$	15.93		$	16.17
% Change - Funds from Operations		10.5	%		4.5	%		6.1	%
Core Funds from Operations (excludes non-core items)	$	516,648		$	1,023,000		$	1,038,900
Core Funds from Operations per diluted Share	$	7.77		$	15.38		$	15.62
% Change - Core Funds from Operations		4.7	%		2.3	%		3.9	%
EPS - Diluted	$	5.69		$	8.23		$	8.47
Weighted average shares outstanding - FFO calculation		66,478			66,500			66,500
^(1)^	All non-core items are excluded from the 2024 actuals and included in the non-core income and expense section of the FFO reconciliation.
---	---
^(2)^	2024 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<br> 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-13

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-13 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.

				2024 Guidance Range ^(1)^
	Six Months
	Ended June 30,			3rd Quarter 2024						Full-Year 2024
	2024			Low			High			Low			High
EPS - diluted	$	5.69		$	1.28		$	1.40		$	8.23		$	8.47
Conversion from GAAP share count		(0.19	)		(0.05	)		(0.05	)		(0.28	)		(0.28	)
Impairment loss from unconsolidated co-investments		0.06			-			-			0.06			0.06
Depreciation and amortization		4.83			2.45			2.45			9.73			9.73
Noncontrolling interest related to Operating Partnership units		0.18			0.04			0.04			0.27			0.27
Gain on remeasurement of co-investment		(2.08	)		-			-			(2.08	)		(2.08	)
FFO per share - diluted	$	8.49		$	3.72		$	3.84		$	15.93		$	16.17
Expensed acquisition and investment related costs		-			-			-			-			-
Tax benefit on unconsolidated co-investments		(0.01	)		-			-			(0.01	)		(0.01	)
Realized and unrealized gains on marketable securities, net		(0.07	)		-			-			(0.07	)		(0.07	)
Provision for credit losses		-			-			-			-			-
Equity income from non-core co-investments		(0.09	)		-			-			(0.09	)		(0.09	)
Co-Investment promote income		(0.02	)		-			-			(0.02	)		(0.02	)
General and administrative and other, net		0.12			0.09			0.09			0.29			0.29
Insurance reimbursements, legal settlements, and other, net		(0.65	)		-			-			(0.65	)		(0.65	)
Core FFO per share - diluted	$	7.77		$	3.81		$	3.93		$	15.38		$	15.62
^(1)^	2024 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<br> 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-13.1

ESSEX PROPERTY TRUST, INC. Components to Full-Year 2024E Same-Property Revenue Growth See Company’s Form 10-K and Form 10-Qs filed with the SEC for additional information S-13.2 Driven by better-than-expected blended rent growth Original Blended Rent Outlook 1.5% Revised Blended Rent Outlook 2.5% The Company increased the midpoint of its 2024 same-property revenue growth guidance by 75 basis points to 3.0%. The increase was primarily driven by better-than-expected blended rent growth year-to-date through July. As such, the Company increased its blended rent growth outlook by 100 basis points to 2.5%.

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 June 30, 2024

(Dollars in thousands, except for average monthly rent)

Acquisitions				Essex				Total
		Apartment		Ownership				Contract		Price per		Average
Property Name	Location	Homes		Percentage		Entity	Date	Price		Apartment Home ^(1)^		Monthly Rent
BEXAEW Portfolio ^(2)^	Various		1,480		100%	EPLP	Mar-24	$	251,995	$	341	$	2,375
	Q1 2024		1,480					$	251,995	$	341
Maxwell Sunnyvale ^(3)^	Sunnyvale, CA		75		100%	EPLP	Apr-24	$	46,600	$	621	$	3,712
ARLO Mountain View	Mountain View, CA		164		100%	EPLP	May-24		101,100	$	592	$	3,799
	Q2 2024		239					$	147,700	$	601
	2024 Total		1,719					$	399,695	$	377
^(1)^	Price per apartment home excludes value allocated to retail space.
---	---
^(2)^	In March 2024, the Company acquired its joint venture partner's 49.9% interest in the BEWAEW portfolio comprising four communities totaling 1,480 apartment homes, for a total purchase<br> price of $505.0 million on a gross basis.
---	---
^(3)^	In April 2024, the Company accepted the third-party sponsor’s common equity interest affiliated with its $14.7 million preferred equity investment and acquired Maxwell Sunnyvale based<br> on a property valuation of $46.6 million.
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Dispositions

Neither Essex nor its unconsolidated joint ventures sold any apartment communities during the first and second quarters of 2024.

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.

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

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

Same-Property Delinquencies - Second Quarter 2024 vs. 2023 and July 2024				Same-Property Cash Delinquencies as % of Scheduled Rent, by Region
	Preliminary<br><br> <br>July 2024	Q2<br><br> <br>2024	Q2<br><br> <br>2023		Preliminary<br><br> <br>July 2024	Q2<br><br> <br>2024
Gross delinquencies as % of scheduled rent, excluding rental assistance	0.8%	1.0%	2.1%	Southern California, excl. Los Angeles	0.9%	0.6%
				Northern California, excl. Alameda	0.2%	0.4%
Rental assistance funds as % of scheduled rent ^(1)^	0.0%	-0.1%	-0.1%	Seattle	0.7%	0.8%
				Los Angeles & Alameda Counties ^(3)^	1.3%	1.9%
Cash delinquencies as % of scheduled rent, including rental assistance ^(2)^	0.8%	0.9%	2.0%	Total Same-Property Portfolio ^(1)(2)^	0.8%	0.9%
(1)	The Company's same-property portfolio received Emergency Rental Assistance payments of less than $0.1 million and $0.5 million for preliminary July 2024 and the three months ended June 30,<br> 2024, respectively. This compares to $0.4 million for the three months ended June 30, 2023.
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^(2)^	Represents same-property portfolio delinquencies as a percentage of scheduled rent reflected in the financial statements.
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^(3)^	Eviction protections for the city and county of Los Angeles ended on April 1, 2023, and Alameda county protections ended on April 29, 2023.
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Same-Property Operating Statistics				Same-Property Revenue Growth with Concessions on a GAAP basis
---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---
	Preliminary<br><br> <br>July 2024		Q2<br><br> <br>2024			Q2<br><br> <br>2024			Q2<br><br> <br>2023		YTD<br><br> <br>2024			YTD<br><br> <br>2023
New lease rates ^(1)^		1.8%	1.7%	Reported rental revenue ^(1)^	$	414.8		$	401.1		$	824.7		$	796.6
Renewal rates ^(1)^		4.2%	4.6%	Straight-line rent impact to rental revenue		(0.5	)		(0.6	)		(0.6	)	-
Blended rates		3.2%	3.4%	GAAP rental revenue	$	414.3		$	400.5		$	824.1		$	796.6
Financial occupancy		96.2%	96.2%	% change - reported rental revenue		3.4	%					3.5	%
Same-Property Operating Statistics, Excl. Los<br> Angeles and Alameda Counties^(2)^				% change - GAAP rental revenue		3.5	%					3.5	%
	Preliminary<br><br> <br>July 2024		Q2<br><br> <br>2024
New lease rates ^(1)^		3.5%	3.6%
Renewal rates ^(1)^		4.8%	5.0%
Blended rates		4.2%	4.5%
Financial occupancy		96.7%	96.5%
^(1)^ Represents the percentage change in similar term lease tradeouts, including the<br><br> <br>impact of leasing incentives.				^(1)^ Same-property rental revenue reflects concessions on a cash basis.
^(2)^ Excludes Los Angeles and Alameda counties, which are most impacted by<br> elevated<br><br> <br>delinquency related turnover, to illustrate the Company's same-property portfolio performance<br><br> <br>outside of these regions.

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

S-15

Data based on Essex Data Analytics forecasts and third-party projections. Residential Supply: Total supply includes the Company's estimate of multifamily (“MF”) deliveries of properties with 50+ units and excludes student, senior and 100% affordable housing communities. Multifamily estimates incorporate a methodological enhancement ("delay-adjusted supply") to reflect the anticipated impact of continued construction delays in Essex markets. Single-family (“SF”) estimates are based on trailing single-family permits. Residential Supply Forecast (1) Residential Supply Forecast (1) 2023A 2024E Market Total MF/SF Supply Total Supply as a % of Stock Multifamily Supply Total MF/SF Supply Total Supply as a % of Stock Los Angeles 19,400 0.5% 8,100 16,300 0.4% Orange County 5,300 0.5% 1,400 3,700 0.3% San Diego 5,800 0.5% 4,200 6,900 0.6% Ventura 600 0.2% 800 1,100 0.4% Southern California 31,100 0.5% 14,500 28,000 0.4% San Francisco 2,200 0.3% 1,800 2,300 0.3% Oakland 5,300 0.5% 1,900 4,000 0.4% San Jose 3,900 0.5% 2,400 4,400 0.6% Northern California 11,400 0.4% 6,100 10,700 0.4% Seattle 9,700 0.7% 10,900 14,600 1.1% Total 52,200 0.5% 31,500 53,300 0.5% ESSEX PROPERTY TRUST, INC. MSA Level Supply Forecast: 2023A – 2024E See Company’s Form 10-K and Form 10-Qs filed with the SEC for additional information S-16

ESSEX PROPERTY TRUST, INC. Improving Net Domestic Migration Trends Support West Coast Housing Demand See Company’s Form 10-K and Form 10-Qs filed with the SEC for additional information S-16.1 Net domestic migration patterns in the Essex markets have reversed course from COVID-era trends and have steadily improved since 2021. Northern California has been a key benefactor of improving West Coast migration trends, with net domestic migration turning positive in March 2024. Source: Placer.ai East Coast markets include: Boston, New York, and Washington D.C. Sunbelt markets include: Atlanta, Austin, Charlotte, Dallas, Houston, Miami, Nashville, Orlando, Phoenix, Raleigh, and Tampa. (1) (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

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:

	Three
	Months Ended
	June 30,
(Dollars in thousands)	2024
Net income available to common stockholders	$	92,914
Adjustments:
Net income attributable to noncontrolling interest		6,072
Interest expense, net ^(1)^		58,491
Depreciation and amortization		145,613
Income tax provision		5
Co-investment EBITDAre adjustments		28,845
EBITDAre		331,940
Realized and unrealized gains on marketable securities, net		(1,597	)
Provision for credit losses		19
Equity loss from non-core co-investments		143
Tax benefit on unconsolidated co-investments		(807	)
General and administrative and other, net		5,906
Insurance reimbursements and legal settlements, and other, net		(486	)
Adjusted EBITDAre	$	335,118
^(1)^	Interest expense, net includes items such as gains on derivatives and the amortization of deferred charges.
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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.

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.

Acquisition Yield

Net operating income that the Company expects to achieve in the next 12 months less an estimate of property management costs allocated to the project and less an estimate for capital expenditures per unit 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 land 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:

	Three			Six
	Months Ended			Months Ended
	June 30,			June 30,
(Dollars in thousands)	2024			2024
Interest expense	$	59,120		$	115,053
Adjustments:
Total return swap income		(629	)		(1,425	)
Interest expense, net	$	58,491		$	113,628

Immediately Available Liquidity

The Company's immediately available liquidity as of July 26, 2024, consisted of the following:

	July 26,
(Dollars in millions)	2024
Unsecured credit facility - committed	$	1,275
Balance outstanding		264
Undrawn portion of line of credit	$	1,011
Cash, cash equivalents & marketable securities		115
Total liquidity	$	1,126

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

S-17.2

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-17.1 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:

	June 30,
(Dollars in thousands)	2024
Total consolidated debt, net	$	6,282,856
Total debt from co-investments at pro rata share		1,160,303
Adjustments:
Consolidated unamortized premiums, discounts, and debt issuance costs		34,794
Pro rata co-investments unamortized premiums, discounts, and debt issuance costs		4,466
Consolidated cash and cash equivalents-unrestricted		(55,223	)
Pro rata co-investment cash and cash equivalents-unrestricted		(35,644	)
Marketable securities		(84,291	)
Net Indebtedness	$	7,307,261
Adjusted EBITDAre, annualized ^(1)^	$	1,340,472
Other EBITDAre normalization adjustments, net, annualized ^(2)^		2,970
Adjusted EBITDAre, normalized and annualized	$	1,343,442
Net Indebtedness Divided by Adjusted EBITDAre, normalized and annualized		5.4
^(1)^	Based on the amount for the most recent quarter, multiplied by four.
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^(2)^	Adjustments made for properties in lease-up, acquired, or disposed during the most recent quarter and other partial quarter activity, multiplied by four.
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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:

	Three Months Ended						Six Months Ended
	June 30,			June 30,			June 30,			June 30,
(Dollars in thousands)	2024			2023			2024			2023
Earnings from operations	$	137,450		$	134,832		$	269,809		$	322,217
Adjustments:
Corporate-level property management expenses		12,123			11,451			23,854			22,883
Depreciation and amortization		145,613			136,718			285,346			273,065
Management and other fees from affiliates		(2,573	)		(2,778	)		(5,286	)		(5,543	)
General and administrative		21,136			13,813			38,307			29,124
Expensed acquisition and investment related costs		-			5			68			344
Casualty loss		-			-			-			433
Gain on sale of real estate and land		-			-			-			(59,238	)
NOI		313,749			294,041			612,098			583,285
Less: Non-same property NOI		(20,325	)		(9,170	)		(32,315	)		(20,436	)
Same-Property NOI	$	293,424		$	284,871		$	579,783		$	562,849

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

S-17.3

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 and supplemental indenture dated March 14, 2024, filed by the Company as Exhibit 4.1 and Exhibit 4.2 to the Company's Form 8-K, filed on March 14, 2024. 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 June 30, 2024, annualized, is calculated by dividing Unencumbered NOI, annualized for the three months ended June 30, 2024 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:

	Annualized
(Dollars in thousands)	Q2 '24 ^(1)^
NOI	$	1,254,996
Adjustments:
NOI from real estate assets sold or held for sale		-
Other, net^(2)^		(5,848	)
Adjusted Total NOI		1,249,148
Less: Encumbered NOI		(93,263	)
Unencumbered NOI	$	1,155,885
Encumbered NOI	$	93,263
Unencumbered NOI		1,155,885
Adjusted Total NOI	$	1,249,148
Unencumbered NOI to Adjusted Total NOI		93	%
^(1)^	This table is based on the amounts for the most recent quarter, multiplied by four.
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^(2)^	Includes intercompany eliminations pertaining to self-insurance and other expenses.
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See Company's Form 10-K and Form 10-Qs filed with the SEC for additional information

S-17.4