Equibles

8-K

ESSEX PROPERTY TRUST, INC. (ESS)

8-K 2025-04-29 For: 2025-04-29
View Original
Added on April 06, 2026

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): April 29, 2025

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, 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, California 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 April 29, 2025, Essex Property Trust, Inc. (the “Company”) issued a press release and supplemental information announcing the Company’s financial results for the three months ended March 31, 2025. 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 months ended March 31, 2025.
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: April<br> 29, 2025 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

FIRST QUARTER 2025 EARNINGS RELEASE & SUPPLEMENTAL DATA Beaumont Woodinville, WA

First Quarter 2025

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 Operating Expenses, Quarter-to-Date S-10
Development Pipeline S-11
Capital Expenditures S-12
Co-Investments and Preferred Equity Investments S-13
Summary of Apartment Community Acquisitions and Dispositions Activity S-14
Assumptions for 2025 FFO Guidance Range S-15
Reconciliation of Projected EPS, FFO and Core FFO per diluted share S-15.1
MSA Level Supply Forecast: 2024A - 2025E S-16
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 First Quarter 2025 Results

San Mateo, California—April 29, 2025—Essex Property Trust, Inc. (NYSE: ESS) (the “Company”) announced today its first quarter 2025 earnings results and related business activities.

Net Income, Funds from Operations (“FFO”), and Core FFO per diluted share for the three-month period ended March 31, 2025 are detailed below.

Three Months Ended<br><br> <br>March 31, %
2025 2024 Change
Per Diluted Share
Net Income $3.16 $4.25 -25.6%
Total FFO $3.97 $4.60 -13.7%
Core FFO $3.97 $3.83 3.7%

First Quarter 2025 Highlights:

• Reported Net Income per diluted share for the first quarter of 2025 of $3.16, compared to $4.25 in the first quarter of 2024. The decrease is largely attributable to gains on<br> remeasurement of co-investments and gains on legal settlements recognized in the first quarter of 2024.
• Grew Core FFO per diluted share by 3.7% compared to the first quarter of 2024, exceeding the midpoint of the Company’s guidance range by $0.05. The outperformance was primarily<br> driven by favorable same-property revenue growth, co-investment income, and interest expense.
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• Achieved same-property revenue and net operating income (“NOI”) growth of 3.4% and 3.3%, respectively, compared to the first quarter of 2024. On a sequential basis, same-property<br> revenues and NOI improved 1.6% and 0.9%, respectively.
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• Acquired three apartment home communities located in Northern California for a total contract price of $345.4 million.
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• Disposed of a 53-year-old apartment home community located in Southern California for a contract price of $127.0 million.
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• Issued $400.0 million of 10-year senior unsecured notes due in April 2035 bearing an interest rate of 5.375% per annum and an effective yield of 5.48%.
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• Increased the dividend by 4.9% to an annual distribution of $10.28 per common share, the Company’s 31^st^ consecutive annual increase.
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• Reaffirmed the full-year guidance ranges for Core FFO per diluted share, same-property revenues, expenses, and NOI.
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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 revenues on a year-over-year and sequential basis for the three-month period ended March 31, 2025:

Revenue Change
Q1 2025<br><br> <br>vs. Q1 2024 Q1 2025<br><br> <br>vs. Q4 2024 % of Total Q1<br><br> <br>2025 Revenues
Southern California
Los Angeles County 4.1% 2.6% 18.5%
Orange County 3.6% 1.5% 9.1%
San Diego County 2.8% 0.0% 9.2%
Ventura County 5.2% 1.7% 4.4%
Total Southern California 3.8% 1.7% 41.2%
Northern California
Santa Clara County 3.3% 1.8% 19.9%
Alameda County 2.4% 0.8% 7.8%
San Mateo County 5.2% 2.7% 4.6%
Contra Costa County 3.1% 1.6% 5.5%
San Francisco 6.6% 1.8% 3.1%
Total Northern California 3.6% 1.7% 40.9%
Seattle Metro 2.3% 1.0% 17.9%
Same-Property Portfolio 3.4% 1.6% 100.0%

The table below illustrates the components that drove the change in same-property revenues on a year-over-year and sequential basis for the three-month period ended March 31, 2025:

Same-Property Revenue Components Q1 2025<br><br> <br>vs. Q1 2024 Q1 2025<br><br> <br>vs. Q4 2024
Scheduled Rents 2.1% 0.3%
Delinquency^(1)^ 0.7% 0.7%
Cash Concessions 0.2% 0.3%
Vacancy -0.1% 0.4%
Other Income 0.5% -0.1%
Q1 2025 Same-Property Revenue Growth 3.4% 1.6%
(1) Same-Property delinquency as a percentage of scheduled rent was 0.5% in the first quarter of 2025 as compared to 1.3% in both the first and fourth quarters<br> of 2024.
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Year-Over-Year Change
Q1 2025 compared to Q1 2024
Revenues Operating<br><br> <br>Expenses NOI
Southern California 3.8% 4.1% 3.7%
Northern California 3.6% 1.9% 4.3%
Seattle Metro 2.3% 7.7% 0.0%
Same-Property Portfolio 3.4% 3.8% 3.3%
Sequential Change
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Q1 2025 compared to Q4 2024
Revenues Operating<br><br> <br>Expenses NOI
Southern California 1.7% 2.3% 1.4%
Northern California 1.7% 2.3% 1.5%
Seattle Metro 1.0% 6.7% -1.4%
Same-Property Portfolio 1.6% 3.1% 0.9%
Financial Occupancies
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Quarter Ended
3/31/2025 12/31/2024 3/31/2024
Southern California 95.8% 95.6% 96.1%
Northern California 96.8% 96.2% 96.2%
Seattle Metro 96.3% 96.2% 97.0%
Same-Property Portfolio 96.3% 95.9% 96.3%

Investment Activity

Acquisitions

In the first quarter, the Company acquired three apartment home communities comprising 619 units and located in Northern California for a total contract price of $345.4 million. Please see page S-14 of the supplemental financial information for additional details.

Dispositions

In February, the Company sold a 53-year-old, 255-unit apartment home community located in Rancho Palos Verdes, CA for a contract price of $127.0 million. Concurrent with the closing, the Company repaid a $69.6 million secured mortgage encumbering the property and recorded a $0.8 million loss on early extinguishment of debt, which has been excluded from Core FFO. The Company recorded a gain on sale of real estate of $111.0 million in the first quarter, which has been excluded from Total and Core FFO.

Subsequent to quarter end, the Company sold a 350-unit apartment home community located in Santa Ana, CA for a contract price of $239.6 million, reflecting an attractive valuation of  approximately $685,000 per unit.

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Other Investments

In the first quarter, the Company assumed full managerial control of a 241-unit apartment home community located in Oakland, CA associated with a preferred equity investment. The Company consolidated the community on its financial statements based on a valuation of $95.0 million and expects this investment will be FFO neutral to the 2025 forecast.

Development Activity

In the first quarter, the Company began construction on a 543-unit apartment home community located in South San Francisco, CA. The projected total cost of the development is $311.0 million, representing an attractive basis of approximately $573,000 per unit. Please see page S-11 of the supplemental financial information for additional details.

Balance Sheet and Liquidity

Balance Sheet

In February, the Company issued $400.0 million of 10-year senior unsecured notes due in April 2035 bearing an interest rate of 5.375% per annum and an effective yield of 5.48%. The proceeds were used to repay the Company’s $500.0 million senior unsecured notes at maturity in April 2025.

Common Stock and Liquidity

In the first quarter, the Company entered into forward sale agreements to sell a total of 52,600 shares of common stock at a gross initial weighted average price of $314.06 per share. The Company has not received any proceeds from settlement and can settle these agreements at its option by September 2026. The remaining capacity under the Company’s ATM program is $900.0 million, pending the settlement of outstanding forward sales agreements. In the first quarter, the Company did not repurchase any shares through its stock repurchase plan.

As of March 31, 2025, the Company had approximately $1.4 billion in liquidity via undrawn capacity on its unsecured credit facilities, cash and cash equivalents, and marketable securities.

Guidance

For the first quarter of 2025, the Company exceeded the midpoint of the guidance range provided in its fourth quarter 2024 earnings release for Core FFO by $0.05 per diluted share.

The following table provides a reconciliation of first quarter 2025 Core FFO per diluted share to the midpoint of the guidance provided in the Company’s fourth quarter 2024 earnings release.

Per Diluted<br><br> <br>Share
Guidance midpoint of Core FFO per diluted share for Q1 2025 $ 3.92
NOI from Consolidated Communities 0.01
FFO from Co-Investments 0.02
Interest Expense and Other 0.02
Core FFO per diluted share for Q1 2025 reported $ 3.97
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2025 Full-Year Guidance and Key Assumptions

Per Diluted Share Previous<br><br> <br>Range
Net Income 5.79 - 6.29 $9.19 - $9.69
Total FFO 15.56 - 16.06 $15.56 - $16.06
Core FFO 15.56 - 16.06 $15.56 - $16.06
Q2 2025 Core FFO N/A $3.90 - $4.02

All values are in US Dollars.

Same-Property Portfolio Growth^(1)^
Based on 49,446 Apartment Homes
Revenues 2.25% to 3.75% 2.25% to 3.75%
Operating Expenses 3.25% to 4.25% 3.25% to 4.25%
Net Operating Income 1.40% to 4.00% 1.40% to 4.00%
Q2 2025 Blended Net Effective Rate Growth N/A 2.50% to 3.50%
Investment Assumptions
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Acquisitions 500.0M to 1.5B
Dispositions 250.0M to 750.0M
Structured Finance Redemptions 100.0M to 200.0M
Development Spending at Pro Rata Share
Revenue-Generating Capital Expenditures

All values are in US Dollars.

^(1)^ Reflects guidance on a cash basis. On a GAAP basis, the midpoints of the Company’s same-property revenues and NOI guidance are 3.00% and 2.70%, respectively.

For additional details regarding the Company’s 2025 FFO guidance range, please see page S-15 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, April 30, 2025 at 9 a.m. PT (12 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 first quarter 2025 earnings link. To access the replay, dial (844) 512-2921 using the replay pin number 13752743. If you are unable to access the information via the Company’s website, please contact the Investor Relations Department at investors@essex.com or calling (650) 655-7800.

Upcoming Events

The Company is scheduled to participate in the National Association of Real Estate Investment Trusts (“Nareit”) REITweek in New York from June 3-4, 2025. The Company’s President and Chief Executive Officer, Angela L. Kleiman, will present at the conference on June 4, 2025 at 2:45 p.m. ET. The presentation will be webcast and can be accessed on the Investors section of the Company’s website at www.essex.com. A copy of any materials provided by the Company at the conference will also be made available on the Investors section of the Company’s website.

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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 257 apartment communities comprising over 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 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.

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The following table sets forth the Company’s calculation of FFO and Core FFO per diluted share for the three-month periods ended March 31, 2025 and 2024 (dollars in thousands, except for share and per share amounts):

Three Months Ended<br><br> <br>March 31,
2025 2024
Net income available to common stockholders $ 203,110 $ 272,731
Adjustments:
Depreciation and amortization 151,287 139,733
Gains not included in FFO (111,360 ) (138,326 )
Impairment loss from unconsolidated co-investments - 3,726
Depreciation and amortization from unconsolidated co-investments 14,378 18,470
Noncontrolling interest related to Operating Partnership units 7,279 9,599
Depreciation attributable to third party ownership and other (46 ) (389 )
Funds from operations attributable to common stockholders and unitholders $ 264,648 $ 305,544
FFO per share-diluted $ 3.97 $ 4.60
Expensed acquisition and investment related costs $ - $ 68
Tax (benefit) expense on unconsolidated co-investments ^(1)^ (163 ) 49
Realized and unrealized losses (gains) on marketable securities, net 91 (3,351 )
Provision for credit losses (3 ) 47
Equity income from non-core co-investments ^(2)^ (1,716 ) (5,870 )
Loss on early retirement of debt 762 -
Co-investment promote income - (1,531 )
General and administrative and other, net ^(3)^ 1,276 2,541
Insurance reimbursements, legal settlements, and other, net ^(4)^ (361 ) (42,814 )
Core funds from operations attributable to common stockholders and unitholders $ 264,534 $ 254,683
Core FFO per share-diluted $ 3.97 $ 3.83
Weighted average number of shares outstanding diluted ^(5)^ 66,656,852 66,470,819
(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 political advocacy costs of $0.1 million and $1.9 million for the three months ended March 31, 2025 and 2024, respectively.
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(4) During the three months ended March 31, 2024, the Company settled two lawsuits related to construction defects at two communities and received cash recoveries of $42.5 million. The Company determined that all<br> uncertainties were resolved upon receipt of cash and recorded a gain which was excluded from Core FFO. There were no material gains from legal settlements during the three months ended March 31, 2025.
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(5) 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<br> 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<br><br> March 31,
2025 2024
Earnings from operations $ 257,081 $ 132,359
Adjustments:
Corporate-level property management expenses 12,332 11,099
Depreciation and amortization 151,287 139,733
Management and other fees from affiliates (2,494 ) (2,713 )
General and administrative 16,292 17,171
Expensed acquisition and investment related costs - 68
Gain on sale of real estate and land (111,030 ) -
NOI 323,468 297,717
Less: Non-same property NOI (38,575 ) (21,879 )
Same-Property NOI $ 284,893 $ 275,838

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 second quarter and full-year 2025 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.

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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 second quarter and full-year 2025 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; tariffs, 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 its 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 and the anticipated or actual impact of future 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, 2024, 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 and supplemental financial information, 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

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ESSEX  PROPERTY  TRUST, INC.

Consolidated Operating Results

     \(Dollars in thousands, except share and per share amounts\)
Three Months Ended<br><br> <br>March 31,
2025 2024
Revenues:
Rental and other property $ 462,089 $ 424,215
Management and other fees from affiliates 2,494 2,713
464,583 426,928
Expenses:
Property operating 138,621 126,498
Corporate-level property management expenses 12,332 11,099
Depreciation and amortization 151,287 139,733
General and administrative 16,292 17,171
Expensed acquisition and investment related costs - 68
318,532 294,569
Gain on sale of real estate and land 111,030 -
Earnings from operations 257,081 132,359
Interest expense, net ^(1)^ (61,532 ) (55,137 )
Interest and other income 4,289 57,275
Equity income from co-investments 13,209 12,366
Tax benefit (expense) on unconsolidated co-investments 163 (49 )
Loss on early retirement of debt (762 ) -
Gain on remeasurement of co-investment 330 138,326
Net income 212,778 285,140
Net income attributable to noncontrolling interest (9,668 ) (12,409 )
Net income available to common stockholders $ 203,110 $ 272,731
Net income per share - basic $ 3.16 $ 4.25
Shares used in income per share - basic 64,314,899 64,205,086
Net income per share - diluted $ 3.16 $ 4.25
Shares used in income per share - diluted 64,349,899 64,212,006
^(1)^ Refer to page S-17.2, the section titled "Interest Expense, Net" for additional information.
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See Company's Form 10-K and Form 10-Qs filed with the SEC for additional information

S-1

ESSEX  PROPERTY  TRUST, INC.

Consolidated Operating Results - Selected Line Item Detail

(Dollars in thousands)

Three Months Ended<br><br> <br>March 31,
2025 2024
Rental and other property
Rental income $ 455,860 $ 417,236
Other property 6,229 6,979
Rental and other property $ 462,089 $ 424,215
Property operating expenses
Real estate taxes $ 52,594 $ 46,920
Administrative 15,260 13,809
Maintenance and repairs 14,742 14,850
Personnel costs 26,251 24,424
Utilities 29,774 26,495
Property operating expenses $ 138,621 $ 126,498
Interest and other income
Marketable securities and other income $ 4,016 $ 11,175
Realized and unrealized (losses) gains on marketable securities, net (91 ) 3,351
Provision for credit losses 3 (47 )
Insurance reimbursements, legal settlements, and other, net 361 42,796
Interest and other income $ 4,289 $ 57,275
Equity income from co-investments
Equity loss from co-investments $ (302 ) $ (3,552 )
Income from preferred equity investments 11,795 12,225
Equity income from non-core co-investments 1,716 5,870
Insurance reimbursements, legal settlements, and other, net - 18
Impairment loss from unconsolidated co-investment - (3,726 )
Co-investment promote income - 1,531
Equity income from co-investments $ 13,209 $ 12,366
Noncontrolling interest
Limited partners of Essex Portfolio, L.P. $ 7,279 $ 9,599
DownREIT limited partners' distributions 2,339 2,292
Third-party ownership interest 50 518
Noncontrolling interest $ 9,668 $ 12,409

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

S-2

ESSEX  PROPERTY  TRUST, INC.

Consolidated Funds from Operations ^(1)^

       \(Dollars in thousands, except share and per share amounts and in footnotes\)
Three Months Ended<br><br> <br>March 31,
2025 2024 % Change
Funds from operations attributable to common stockholders and unitholders (FFO)
Net income available to common stockholders $ 203,110 $ 272,731
Adjustments:
Depreciation and amortization 151,287 139,733
Gains not included in FFO (111,360 ) (138,326 )
Impairment loss from unconsolidated co-investments - 3,726
Depreciation and amortization from unconsolidated co-investments 14,378 18,470
Noncontrolling interest related to Operating Partnership units 7,279 9,599
Depreciation attributable to third party ownership and other ^(2)^ (46 ) (389 )
Funds from operations attributable to common stockholders and unitholders $ 264,648 $ 305,544
FFO per share-diluted $ 3.97 $ 4.60 -13.7%
Components of the change in FFO
Non-core items:
Expensed acquisition and investment related costs $ - $ 68
Tax (benefit) expense on unconsolidated co-investments ^(3)^ (163 ) 49
Realized and unrealized losses (gains) on marketable securities, net 91 (3,351 )
Provision for credit losses (3 ) 47
Equity income from non-core co-investments ^(4)^ (1,716 ) (5,870 )
Loss on early retirement of debt 762 -
Co-investment promote income - (1,531 )
General and administrative and other, net ^(5)^ 1,276 2,541
Insurance reimbursements, legal settlements, and other, net ^(6)^ (361 ) (42,814 )
Core funds from operations attributable to common stockholders and unitholders $ 264,534 $ 254,683
Core FFO per share-diluted $ 3.97 $ 3.83 3.7%
Weighted average number of shares outstanding diluted ^(7)^ 66,656,852 66,470,819
(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 months ended March 31,<br> 2025 was $0.1 million.
--- ---
(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 political advocacy costs of $0.1 million and $1.9 million for the three months ended March 31, 2025 and 2024, respectively.
--- ---
(6) During the three months ended March 31, 2024, the Company settled two lawsuits related to construction defects at two communities and received cash recoveries of $42.5 million. The Company determined that all<br> uncertainties were resolved upon receipt of cash and recorded a gain which was excluded from Core FFO. There were no material gains from legal settlements during the three months ended March 31, 2025.
--- ---
(7) 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<br> limited partnership units.
--- ---

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

S-3

ESSEX  PROPERTY  TRUST, INC.

Consolidated Balance Sheets

(Dollars in thousands)

March 31, 2025 December 31, 2024
Real estate investments:
Land and land improvements $ 3,271,624 $ 3,246,789
Buildings and improvements 14,505,983 14,342,729
17,777,607 17,589,518
Less: accumulated depreciation (6,171,689 ) (6,150,618 )
11,605,918 11,438,900
Real estate under development 96,268 52,682
Co-investments 906,686 935,014
Real estate held for sale 112,173 -
12,721,045 12,426,596
Cash and cash equivalents, including restricted cash 107,862 75,846
Marketable securities 76,013 69,794
Notes and other receivables 133,724 206,706
Operating lease right-of-use assets 53,351 51,556
Prepaid expenses and other assets 94,263 96,861
Total assets $ 13,186,258 $ 12,927,359
Unsecured debt, net $ 5,870,662 $ 5,473,788
Mortgage notes payable, net 919,590 989,884
Lines of credit - 137,945
Distributions in excess of investments in co-investments 84,295 79,273
Operating lease liabilities 54,149 52,473
Other liabilities 477,611 442,757
Total liabilities 7,406,307 7,176,120
Redeemable noncontrolling interest 34,376 30,849
Equity:
Common stock 6 6
Additional paid-in capital 6,672,346 6,668,047
Distributions in excess of accumulated earnings (1,117,971 ) (1,155,662 )
Accumulated other comprehensive income, net 15,620 24,655
Total stockholders' equity 5,570,001 5,537,046
Noncontrolling interest 175,574 183,344
Total equity 5,745,575 5,720,390
Total liabilities and equity $ 13,186,258 $ 12,927,359

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

S-4

ESSEX  PROPERTY  TRUST, INC.

Debt Summary - March 31, 2025

(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 $ 5,600,000 3.6 % 6.9 2025^(1)^ $ 500,000 $ 143,249 $ 643,249 3.5 % 9.4 %
Term loan ^(2)^ 300,000 4.2 % 2.5 2026 450,000 194,405 644,405 3.6 % 9.4 %
Unamortized discounts and debt 2027^(2)^ 650,000 84,397 734,397 3.9 % 10.8 %
issuance costs, net (29,338 ) - - 2028 450,000 68,332 518,332 2.2 % 7.6 %
Total unsecured debt, net 5,870,662 3.6 % 6.7 2029 500,000 1,456 501,456 4.1 % 7.4 %
Mortgage Notes Payable, net 2030 550,000 1,592 551,592 3.1 % 8.1 %
Fixed rate - secured 605,768 4.3 % 4.8 2031 600,000 1,740 601,740 2.3 % 8.8 %
Variable rate - secured ^(3)^ 316,552 3.7 % 9.2 2032 650,000 1,903 651,903 2.6 % 9.6 %
Unamortized premiums and debt 2033 - 330,126 330,126 4.9 % 4.8 %
issuance costs, net (2,730 ) - - 2034 550,000 2,275 552,275 5.5 % 8.1 %
Total mortgage notes payable, net 919,590 4.1 % 6.3 2035 400,000 2,487 402,487 5.5 % 5.9 %
Unsecured Lines of Credit Thereafter 600,000 90,358 690,358 3.6 % 10.1 %
Line of credit ^(4)^ - 5.3 % N/A Subtotal 5,900,000 922,320 6,822,320 3.7 % 100.0 %
Line of credit ^(5)^ - 5.3 % N/A Debt Issuance Costs (28,138 ) (2,407 ) (30,545 ) - -
Total lines of credit - 5.3 % N/A (Discounts)/Premiums (1,200) (323 ) (1,523 ) - -
Total debt, net $ 6,790,252 3.7 % 6.7 Total $ 5,870,662 $ 919,590 $ 6,790,252 3.7 % 100.0 %

Capitalized interest for the three months ended March 31, 2025 was approximately $0.7 million.

(1) In April 2025, the Company repaid its $500.0 million unsecured notes at maturity.
(2) The unsecured term loan has a variable interest rate of Adjusted SOFR plus 0.85% and matures in October 2025 with two remaining<br> 12-month extension options, exercisable at the Company’s option. This loan has been swapped to an all-in fixed rate of 4.2% and the swap has a termination date of October 2026.
--- ---
(3) $220.6 million of variable rate debt is tax exempt to the note holders. $47.5 million of SOFR-based variable rate debt is swapped<br> at a fixed rate of 2.83% through March 2026.
--- ---
(4) This unsecured line of credit facility has a capacity of $1.2 billion, a scheduled maturity date in January 2029 and two 6-month<br> extension options, exercisable at the Company’s option. The underlying interest rate on this 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<br> facility's Sustainability Metric Adjustment feature.
--- ---
(5) The unsecured line of credit facility has a capacity of $75 million and a scheduled maturity date in July 2026. The underlying<br> interest rate on this 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 Adjustment feature.
--- ---

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

S-5

ESSEX  PROPERTY  TRUST, INC.

Capitalization Data, Public Bond Covenants, Credit Ratings and Selected Credit Ratios - March 31, 2025

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

Capitalization Data Public Bond Covenants ^(1)^ Actual Requirement
Total debt, net $ 6,790,252
Common stock and potentially dilutive securities Debt to Total Assets: 35% < 65%
Common stock outstanding 64,358
Limited partnership units ^(1)^ 2,283 Secured Debt to Total Assets: 5% < 40%
Options-treasury method 39
Total shares of common stock and potentially dilutive securities 66,680 Interest Coverage: 532% > 150%
Common stock price per share as of March 31, 2025 $ 306.57 Unsecured Debt Ratio ^(2)^: 286% > 150%
Total equity capitalization $ 20,442,088 Selected Credit Ratios ^(3)^ Actual
Total market capitalization $ 27,232,340 Net Indebtedness Divided by Adjusted EBITDAre, normalized and annualized: 5.6
Ratio of debt to total market capitalization 24.9 % Unencumbered NOI to Adjusted Total NOI: 92%
Credit Ratings
Rating Agency Rating Outlook
Moody's Baa1 Stable ^(1)^  <br> Refer to page S-17.4 for additional information on the Company's Public Bond Covenants.
Standard & Poor's BBB+ Stable ^(2)^  <br> Unsecured Debt Ratio is unsecured assets (excluding investments in co-investments) divided by unsecured indebtedness.
^(1)^   <br> Assumes conversion of all outstanding limited partnership units in the Operating Partnership into shares of the Company's common stock. ^(3)^  <br> Refer to pages S-17.1 to S-17.4, 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

ESSEX  PROPERTY  TRUST, INC.

Portfolio Summary by County as of March 31, 2025

Apartment Homes Average Monthly Rental Rate ^(1)^ Percent of NOI ^(2)^
Region - County Consolidated Unconsolidated<br><br> <br>Co-investments Apartment<br><br> <br>Homes in<br><br> <br>Development ^(3)^ Total Consolidated Unconsolidated<br><br> <br>Co-investments^(4)^ Total ^(4)^ Consolidated Unconsolidated<br><br> <br>Co-investments ^(4)^ Total ^(4)^
Southern California
Los Angeles County 9,288 1,586 - 10,874 $ 2,673 $ 2,561 $ 2,663 15.8 % 20.0 % 16.1 %
Orange County 6,084 265 - 6,349 2,808 2,474 2,801 11.8 % 3.4 % 11.3 %
San Diego County 5,444 443 - 5,887 2,668 3,062 2,684 10.3 % 6.3 % 10.1 %
Ventura County and Other 2,756 373 - 3,129 2,487 3,166 2,536 5.2 % 6.9 % 5.3 %
Total Southern California 23,572 2,667 - 26,239 2,685 2,716 2,687 43.1 % 36.6 % 42.8 %
Northern California
Santa Clara County^(5)^ 9,765 997 - 10,762 3,072 3,030 3,069 20.9 % 13.9 % 20.5 %
Alameda County 4,384 1,328 - 5,712 2,592 2,591 2,592 7.1 % 16.7 % 7.6 %
San Mateo County 2,483 195 543 3,221 3,314 3,790 3,332 4.6 % 3.0 % 4.5 %
Contra Costa County 2,619 - - 2,619 2,743 - 2,743 5.0 % 0.0 % 4.7 %
San Francisco 1,356 537 - 1,893 2,905 3,311 2,972 2.4 % 7.6 % 2.7 %
Total Northern California 20,607 3,057 543 24,207 2,946 2,919 2,944 40.0 % 41.2 % 40.0 %
Seattle Metro 10,899 1,970 - 12,869 2,233 2,161 2,226 16.9 % 22.2 % 17.2 %
Total 55,078 7,694 543 63,315 $ 2,693 $ 2,657 $ 2,691 100.0 % 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<br> quarter ended March 31, 2025, divided by the number of apartment homes as of March 31, 2025.
--- ---
^(2)^ Represents the percentage of actual NOI for the quarter ended March 31, 2025. See section titled "Net Operating Income ("NOI") and Same-Property NOI Reconciliations" on page<br> S-17.3.
--- ---
^(3)^ Includes development communities with no rental income.
--- ---
^(4)^ At Company's pro rata share.
--- ---
^(5)^ Includes all communities in Santa Clara County and one community in Santa Cruz County.
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See Company's Form 10-K and Form 10-Qs filed with the SEC for additional information

S-7

ESSEX  PROPERTY  TRUST, INC.

Operating Income by Quarter ^(1)^

(Dollars in thousands)

Apartment<br><br> <br>Homes Q1 '25 Q4 '24 Q3 '24 Q2 '24 Q1 '24
Rental and other property revenues:
Same-property 49,446 $ 409,147 $ 402,869 $ 405,085 $ 400,433 $ 395,584
Acquisitions^(2)^ 4,510 34,770 26,772 16,964 12,824 1,598
Non-residential/other, net^(3)^ 1,122 18,560 21,632 26,313 27,036 27,096
Straight-line rent concessions ^(4)^ - (388 ) 780 (227 ) (511 ) (63 )
Total rental and other property revenues 55,078 462,089 452,053 448,135 439,782 424,215
Property operating expenses:
Same-property 124,254 120,554 124,051 117,645 119,746
Acquisitions^(2)^ 10,393 7,848 4,870 3,585 479
Non-residential/other, net^(3) (5)^ 3,974 5,310 5,871 5,304 6,273
Total property operating expenses 138,621 133,712 134,792 126,534 126,498
Net operating income (NOI):
Same-property 284,893 282,315 281,034 282,788 275,838
Acquisitions^(2)^ 24,377 18,924 12,094 9,239 1,119
Non-residential/other, net^(3)^ 14,586 16,322 20,442 21,732 20,823
Straight-line rent concessions ^(4)^ (388 ) 780 (227 ) (511 ) (63 )
Total NOI $ 323,468 $ 318,341 $ 313,343 $ 313,248 $ 297,717
Same-property metrics
Operating margin 70 % 70 % 69 % 71 % 70 %
Annualized turnover 35 % 37 % 45 % 41 % 37 %
Financial occupancy 96.3 % 95.9 % 96.2 % 96.2 % 96.3 %
Delinquency as a % of scheduled rent ^(6)^ 0.5 % 1.3 % 0.7 % 1.0 % 1.3 %
New lease net effective rate growth 1.0 % -1.9 % 0.6 % 1.6 % 0.1 %
Renewal net effective rate growth 3.7 % 3.8 % 3.8 % 4.6 % 3.9 %
Blended net effective rate growth 2.8 % 1.6 % 2.5 % 3.4 % 2.2 %
^(1)^ Includes consolidated communities only.
--- ---
^(2)^ Acquisitions include properties acquired which did not have comparable stabilized results as of January 1, 2024.
--- ---
^(3)^ Non-residential/other, net consists of revenues generated from retail space, commercial properties, held for sale properties, disposition properties, properties undergoing<br> 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.
--- ---
^(4)^ Represents straight-line concessions for residential operating communities. Same-property revenues reflect concessions on a cash basis. Total Rental and Other Property Revenues<br> reflect concessions on a straight-line basis in accordance with U.S. GAAP.
--- ---
^(5)^ Includes other expenses and intercompany eliminations pertaining to self-insurance.
--- ---
^(6)^ In the fourth quarter of 2024, the Company recorded a non-cash charge to fully eliminate its remaining $2.8 million residential accounts receivable balance. Excluding this<br> adjustment, reported delinquency would have been 0.6% for the fourth quarter of 2024. There were no non-cash charges recorded for all other periods, accordingly, the delinquency in those periods are reported on a cash basis.
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          See Company's Form 10-K and Form 10-Qs filed with the SEC for additional information

S-8

ESSEX  PROPERTY  TRUST, INC.

Same-Property Revenue Results by County - First Quarter 2025 vs. First Quarter 2024 and Fourth 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 Q1 '25<br><br> <br>% of<br><br> <br>Actual NOI Q1 '25 Q1 '24 %<br><br> <br>Change Q1 '25 Q1 '24 %<br><br> <br>Change Q1 '25 Q1 '24 %<br><br> <br>Change Q4 '24 %<br><br> <br>Change
Southern California
Los Angeles County 9,288 17.6 % $ 2,673 $ 2,658 0.6 % 95.3 % 95.5 % -0.2 % $ 75,770 $ 72,769 4.1 % $ 73,872 2.6 %
Orange County 4,523 9.7 % 2,704 2,610 3.6 % 96.1 % 96.6 % -0.5 % 37,340 36,043 3.6 % 36,788 1.5 %
San Diego County 4,588 9.7 % 2,692 2,606 3.3 % 95.8 % 96.6 % -0.8 % 37,743 36,713 2.8 % 37,734 0.0 %
Ventura County 2,255 4.7 % 2,465 2,366 4.2 % 97.1 % 96.7 % 0.4 % 17,570 16,703 5.2 % 17,272 1.7 %
Total Southern California 20,654 41.7 % 2,661 2,604 2.2 % 95.8 % 96.1 % -0.3 % 168,423 162,228 3.8 % 165,666 1.7 %
Northern California
Santa Clara County 8,653 20.6 % 3,053 2,977 2.6 % 96.7 % 96.7 % 0.0 % 81,480 78,893 3.3 % 80,007 1.8 %
Alameda County 3,959 7.3 % 2,578 2,590 -0.5 % 96.5 % 95.4 % 1.2 % 31,918 31,161 2.4 % 31,666 0.8 %
San Mateo County 1,864 4.4 % 3,235 3,178 1.8 % 97.4 % 95.8 % 1.7 % 18,947 18,004 5.2 % 18,455 2.7 %
Contra Costa County 2,619 5.6 % 2,743 2,701 1.6 % 96.8 % 96.3 % 0.5 % 22,408 21,735 3.1 % 22,048 1.6 %
San Francisco 1,356 2.6 % 2,905 2,867 1.3 % 96.9 % 95.2 % 1.8 % 12,561 11,779 6.6 % 12,335 1.8 %
Total Northern California 18,451 40.5 % 2,914 2,867 1.6 % 96.8 % 96.2 % 0.6 % 167,314 161,572 3.6 % 164,511 1.7 %
Seattle Metro 10,341 17.8 % 2,239 2,171 3.1 % 96.3 % 97.0 % -0.7 % 73,410 71,784 2.3 % 72,692 1.0 %
Total Same-Property 49,446 100.0 % $ 2,667 $ 2,612 2.1 % 96.3 % 96.3 % 0.0 % $ 409,147 $ 395,584 3.4 % $ 402,869 1.6 %

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

S-9

ESSEX  PROPERTY  TRUST, INC.

Same-Property Operating Expenses - Quarter to Date as of March 31, 2025 and 2024

(Dollars in thousands)

Based on 49,446 apartment homes
Q1 '25 Q1 '24 % Change % of Op.<br><br> <br>Ex.
Same-property operating expenses:
Real estate taxes $ 46,299 $ 44,077 5.0 % 37.3 %
Utilities 26,234 24,371 7.6 % 21.1 %
Personnel costs 23,248 22,609 2.8 % 18.7 %
Maintenance and repairs 12,949 13,631 -5.0 % 10.4 %
Administrative 6,854 6,815 0.6 % 5.5 %
Insurance and other 8,670 8,243 5.2 % 7.0 %
Total same-property operating expenses $ 124,254 $ 119,746 3.8 % 100.0 %

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

S-10

ESSEX  PROPERTY  TRUST, INC.

Development Pipeline - March 31, 2025

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

Project Name - Location Ownership<br><br> <br>% Estimated<br><br> <br>Apartment<br><br> <br>Homes Estimated<br><br> <br>Commercial<br><br> <br>sq. feet Incurred<br><br> <br>to Date Remaining<br><br> <br>Costs Estimated<br><br> <br>Total Cost Cost per<br><br> <br>Apartment<br><br> <br>Home ^(1)^ Construction<br><br> <br>Start Initial<br><br> <br>Occupancy Stabilized<br><br> <br>Operations
Development Projects - Consolidated ^(2)^
7 South Linden - South San Francisco, CA 100% 543 - $ 52 $ 259 $ 311 $ 573 Q1 2025 Q2 2028 Q1 2030
Total Development Projects - Consolidated 543 - 52 259 311 573
Land Held for Future Development - Consolidated
Other Projects - Various 100% - - 44 - 44
Total Development Pipeline - Consolidated 543 - $ 96 $ 259 $ 355
^(1)^ Net of the estimated allocation to the retail component of the project, as applicable.
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^(2)^ For the first quarter of 2025, the Company's cost includes $0.6 million of capitalized interest and $0.5 million of capitalized overhead.
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See Company's Form 10-K and Form 10-Qs filed with the SEC for additional information

S-11

ESSEX  PROPERTY  TRUST, INC.

Capital Expenditures - March 31, 2025 ^(1)^

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

Revenue Generating Capital Expenditures^(2)^ Q1 '25 Trailing 4<br><br> <br>Quarters
Same-property portfolio $ 12,126 $ 65,443
Non-same property portfolio 1,517 6,945
Total revenue generating capital expenditures $ 13,643 $ 72,388
Number of same-property interior renovations 760 2,325
Number of total consolidated interior renovations 826 2,481
Non-Revenue Generating Capital Expenditures ^(3)^ Q1 '25 Trailing 4<br><br> Quarters
Non-revenue generating capital expenditures $ 27,397 $ 116,931
Average apartment homes in quarter 54,771 53,945
Capital expenditures per apartment home $ 500 $ 2,168
^(1)^ The Company incurred $0.1 million of capitalized interest, $5.0 million of capitalized overhead and less than $0.1 million of co-investment fees related to redevelopment in<br> Q1 2025.
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^(2)^ Represents revenue generating or expense saving expenditures, such as full-scale redevelopments, interior unit turn renovations, enhanced amenities and certain<br> sustainability initiatives.
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^(3)^ Represents roof replacements, paving, building and mechanical systems, exterior painting, siding, etc. Non-revenue generating capital expenditures does not include costs<br> related to retail, 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<br> incurred otherwise.
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See Company's Form 10-K and Form 10-Qs filed with the SEC for additional information

S-12

ESSEX  PROPERTY  TRUST, INC.

Co-investments and Preferred Equity Investments - March 31, 2025

(Dollars in thousands, except in footnotes)

Weighted<br><br> <br>Average<br><br> <br>Essex<br><br> <br>Ownership<br><br> <br>Percentage Apartment<br><br> <br>Homes Total<br><br> <br>Undepreciated<br><br> <br>Book 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>March 31,<br><br> <br>2025
Operating and Other Non-Consolidated Joint Ventures NOI
Wesco I, III, IV, V, VI ^(2)^ 54% 5,976 $ 2,175,745 $ 1,376,205 $ 136,905 3.3 % 1.7 $ 30,201
BEX IV, 500 Folsom 50% 732 616,372 176,400 143,953 3.5 % 21.2 5,680
Other ^(3)^ 53% 986 385,292 291,476 88,470 3.7 % 12.3 5,400
Total Operating and Other Non-Consolidated Joint Ventures 7,694 $ 3,177,409 $ 1,844,081 $ 369,328 3.4 % 5.2 $ 41,281
Essex Portion<br><br> <br>of NOI and<br><br> <br>Expenses
NOI $ 22,528
Depreciation (14,378 )
Interest expense and other, net (8,452 )
Equity income from non-core co-investments 1,716
Net income from operating and other co-investments $ 1,414
Weighted<br><br> Average<br><br> Preferred<br><br> Return Weighted<br><br> <br>Average<br><br> <br>Expected<br><br> <br>Term Income from Preferred Equity Investments
Income from preferred equity investments $ 11,795
Preferred Equity Investments^(4)^ $ 453,063 9.4 % 1.6 $ 11,795
Total Co-investments $ 822,391 $ 13,209
^(1)^ Represents the year-to-date annual weighted average borrowing rate.
--- ---
^(2)^ As of March 31, 2025, the Company’s investments in Wesco I, Wesco III, and Wesco IV were classified as a liability of $82.0 million due<br> to distributions received in excess of the Company's investment.
--- ---
^(3)^ As of March 31, 2025, the Company’s investment in Expo was classified as a liability of $2.3 million due to distributions received in<br> 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.
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^(4)^ As of March 31, 2025, the Company is invested in 17 preferred equity investments.
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See Company's Form 10-K and Form 10-Qs filed with the SEC for additional information

S-13

ESSEX  PROPERTY  TRUST, INC.

Summary of Apartment Community Acquisitions and Dispositions Activity - Year to date as of March 31, 2025

(Dollars in thousands, except for average monthly rent)

Acquisitions
Property Name Location Apartment<br><br> <br>Homes Year Built Essex<br><br> <br>Ownership<br><br> <br>Percentage Entity Date Total Contract<br><br> <br>Price at<br><br> <br>Pro Rata Share Price per<br><br> <br>Apartment Home ^(1)^ Average<br><br> <br>Monthly Rent
The Plaza Foster City, CA 307 2013 100% EPLP Jan-25 $ 161,375 $ 512 $ 3,310
One Hundred Grand ^(2)^ Foster City, CA 166 2016 N/A EPLP Feb-25 105,250 615 3,881
ROEN Menlo Park Menlo Park, CA 146 2017 100% EPLP Feb-25 78,750 539 3,647
Q1 2025 619 $ 345,375 $ 546
2025 Total 619 $ 345,375 $ 546
Dispositions
Property Name Location Apartment<br><br> <br>Homes Year Built Essex<br><br> <br>Ownership<br><br> <br>Percentage Entity Date Total Contract<br><br> <br>Price at<br><br> <br>Pro Rata Share Price per<br><br> <br>Apartment Home ^(1)^
Highridge ^(2)^ Rancho Palos Verdes, CA 255 1972 N/A EPLP Feb-25 $ 127,000 $ 498
Q1 2025 255 $ 127,000 $ 498
2025 Total 255 $ 127,000 $ 498
^(1)^ Price per apartment home excludes value allocated to retail space.
--- ---
^(2)^ The noncontrolling members’ ownership interest in Highridge, a community owned by consolidated DownREIT entities prior to its disposition, were transferred to One<br> Hundred Grand pursuant to the like-kind exchange rules under Section 1031 of the Internal Revenue Code of 1986, as amended.
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See Company's Form 10-K and Form 10-Qs filed with the SEC for additional information

S-14

ESSEX  PROPERTY  TRUST, INC.

Assumptions for 2025 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.

Three Months Ended 2025 Full-Year Guidance Range
March 31, 2025 ^(1)^ Low End High End Comments about 2025 Full-Year Guidance
Total NOI from Consolidated Communities $ 323,468 $ 1,293,000 $ 1,320,000 Includes a range of same-property NOI growth of 1.4% to 4.0%.
Management Fees 2,494 8,800 9,800
Interest Expense
Interest expense, before capitalized interest (62,237 ) (253,300 ) (250,200 )
Interest capitalized 705 3,200 4,200
Net interest expense (61,532 ) (250,100 ) (246,000 )
Recurring Income and Expenses
Interest and other income 4,016 16,400 17,400
FFO from co-investments 25,871 88,100 92,100
General and administrative (15,016 ) (60,000 ) (64,000 )
Corporate-level property management expenses (12,332 ) (48,000 ) (49,000 )
Non-controlling interest (2,435 ) (10,300 ) (9,300 )
Total recurring income and expenses 104 (13,800 ) (12,800 )
Non-Core Income and Expenses
Expensed acquisition and investment related costs - - -
Tax benefit on unconsolidated co-investments 163 163 163
Realized and unrealized gains on marketable securities, net (91 ) (91 ) (91 )
Provision for credit losses 3 3 3
Equity income from non-core co-investments 1,716 1,716 1,716
Loss on early retirement of debt (762 ) (762 ) (762 )
Co-investment promote income - - -
General and administrative and other, net (1,276 ) (1,276 ) (1,276 )
Insurance reimbursements, legal settlements, and other, net 361 361 361
Total non-core income and expenses 114 114 114
Funds from Operations ^(2)^ $ 264,648 $ 1,038,014 $ 1,071,114
Funds from Operations per diluted Share $ 3.97 $ 15.56 $ 16.06
% Change - Funds from Operations -13.7 % -2.7 % 0.4 %
Core Funds from Operations (excludes non-core items) $ 264,534 $ 1,037,900 $ 1,071,000
Core Funds from Operations per diluted Share $ 3.97 $ 15.56 $ 16.06
% Change - Core Funds from Operations 3.7 % -0.3 % 2.9 %
EPS - Diluted $ 3.16 $ 9.19 $ 9.69
Weighted average shares outstanding - FFO calculation 66,657 66,700 66,700
^(1)^ All non-core items are excluded from the 2025 actuals and included in the non-core income and expense section of the FFO reconciliation.
--- ---
^(2)^ 2025 guidance excludes inestimable projected gain on sale of marketable securities, loss on early retirement of debt, political/legislative costs, and promote<br> income until they are realized within the reporting period presented in the report.
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See Company's Form 10-K and Form 10-Qs filed with the SEC for additional information

S-15

ESSEX  PROPERTY  TRUST, INC.

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-15 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.

2025 Guidance Range ^(1)^
Three Months
Ended March 31, 2nd Quarter 2025 Full-Year 2025
2025 Low High Low High
EPS - diluted $ 3.16 $ 3.30 $ 3.42 $ 9.19 $ 9.69
Conversion from GAAP share count (0.11 ) (0.12 ) (0.12 ) (0.33 ) (0.33 )
Depreciation and amortization 2.49 2.48 2.48 9.93 9.93
Noncontrolling interest related to Operating Partnership units 0.11 0.11 0.11 0.31 0.31
Gain on sale of real estate and land (1.67 ) (1.87 ) (1.87 ) (3.54 ) (3.54 )
Gain on remeasurement of co-investment (0.01 ) - - - -
FFO per share - diluted $ 3.97 $ 3.90 $ 4.02 $ 15.56 $ 16.06
Expensed acquisition and investment related costs - - - - -
Tax benefit on unconsolidated co-investments - - - - -
Realized and unrealized gains on marketable securities, net - - - - -
Provision for credit losses - - - - -
Equity income from non-core co-investments (0.03 ) - - (0.03 ) (0.03 )
Loss on early retirement of debt 0.01 - - 0.01 0.01
Co-investment promote income - - - - -
General and administrative and other, net 0.02 - - 0.02 0.02
Insurance reimbursements, legal settlements, and other, net - - - - -
Core FFO per share - diluted $ 3.97 $ 3.90 $ 4.02 $ 15.56 $ 16.06
^(1)^ 2025 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<br> costs, and promote income until they are realized within the reporting period presented in the report.
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See Company's Form 10-K and Form 10-Qs filed with the SEC for additional information

S-15.1

ESSEX PROPERTY TRUST, INC. MSA Level Supply Forecast: 2024A – 2025E Residential Supply Forecast (1) 2024A 2025E 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 16,900 0.5% 8,900 15,300 0.4% Orange County 4,100 0.4% 1,800 4,300 0.4% San Diego 6,900 0.6% 5,100 7,900 0.6% Ventura 1,100 0.4% 300 600 0.2% Southern California 29,000 0.5% 16,100 28,100 0.4% San Francisco 2,300 0.3% 1,300 1,700 0.2% Oakland 4,000 0.4% 1,200 3,200 0.3% San Jose 4,400 0.6% 3,800 5,800 0.8% Northern California 10,700 0.4% 6,300 10,700 0.4% Seattle 14,600 1.1% 10,200 14,300 1.0% Total 54,300 0.5% 32,600 53,100 0.5% Data based on Essex Data Analytics forecasts and third-party projections. (1) Residential Suppy: 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 reflectthe anticipat impact of continued construction delays in Essex markets. Single-family (“SF”) estimates are based on trailing single-family permits.

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

S-16

ESSEX  PROPERTY  TRUST, INC.

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<br><br> <br>Months Ended<br><br> <br>March 31,<br><br> <br>2025
Net income available to common stockholders $ 203,110
Adjustments:
Net income attributable to noncontrolling interest 9,668
Interest expense, net ^(1)^ 61,532
Depreciation and amortization 151,287
Income tax provision 89
Gain on sale of real estate and land (111,030 )
Gain on remeasurement of co-investment (330 )
Co-investment EBITDAre adjustments 22,683
EBITDAre 337,009
Realized and unrealized losses on marketable securities, net 91
Provision for credit losses (3 )
Equity income from non-core co-investments (1,716 )
Tax benefit (expense) on unconsolidated co-investments (163 )
General and administrative and other, net 1,276
Insurance reimbursements, legal settlements, and other, net (361 )
Loss on early retirement of debt 762
Adjusted EBITDAre $ 336,895
^(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

ESSEX  PROPERTY  TRUST, INC.

Reconciliations of Non-GAAP Financial Measures and Other Terms

Annualized Turnover

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

Financial Occupancy

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 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 estimated market rents.

New Lease Net Effective Rate Growth and Renewal Net Effective Rate Growth

New lease net effective rate growth and renewal net effective rate growth represent the percentage change in similar term lease tradeouts, including the impact of leasing incentives.

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 FFO and Core FFO per diluted share 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 Months Ended
(Dollars in thousands) March 31,<br><br> <br>2025 March 31,<br><br> <br>2024
Interest expense $ 62,732 $ 55,933
Adjustments:
Total return swap income (1,200 ) (796 )
Interest expense, net $ 61,532 $ 55,137

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

S-17.2

ESSEX  PROPERTY  TRUST, INC.

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:

(Dollars in thousands) March 31,<br><br> <br>2025
Total consolidated debt, net $ 6,790,252
Total debt from co-investments at pro rata share 1,006,679
Adjustments:
Consolidated unamortized premiums, discounts, and debt issuance costs 32,068
Pro rata co-investments unamortized premiums, discounts,
and debt issuance costs 3,606
Consolidated cash and cash equivalents-unrestricted (98,735 )
Pro rata co-investment cash and cash equivalents-unrestricted (39,127 )
Marketable securities (76,013 )
Net Indebtedness $ 7,618,730
Adjusted EBITDAre, annualized ^(1)^ $ 1,347,580
Other EBITDAre normalization adjustments, net, annualized ^(2)^ 3,996
Adjusted EBITDAre, normalized and annualized $ 1,351,576
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:
Three Months Ended
(Dollars in thousands) March 31,<br><br> <br>2025 March 31,<br><br> <br>2024
Earnings from operations $ 257,081 $ 132,359
Adjustments:
Corporate-level property management expenses 12,332 11,099
Depreciation and amortization 151,287 139,733
Management and other fees from affiliates (2,494 ) (2,713 )
General and administrative 16,292 17,171
Expensed acquisition and investment related costs - 68
Gain on sale of real estate and land (111,030 ) -
NOI 323,468 297,717
Less: Non-same property NOI (38,575 ) (21,879 )
Same-Property NOI $ 284,893 $ 275,838

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

S-17.3

ESSEX  PROPERTY  TRUST, INC.

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 February 18, 2025, filed by the Company as Exhibit 4.1 and Exhibit 4.2 to the Company's Form 8-K, filed on February 18, 2025. 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.

Same-Property Revenue Growth with Concessions on a GAAP basis

Three Months Ended
(Dollars in millions) March 31,<br><br> <br>2025 March 31,<br><br> <br>2024
Reported rental revenue ^(1)^ $ 409.2 $ 395.6
Straight-line rent impact to rental revenue (0.5 ) (0.1 )
GAAP rental revenue $ 408.7 $ 395.5
% change - reported rental revenue 3.4 %
% change - GAAP rental revenue 3.3 %
^(1)^ Same-property rental revenue reflects concessions on a cash basis.
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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 March 31, 2025, annualized, is calculated by dividing Unencumbered NOI, annualized for the three months ended March 31, 2025 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<br><br> <br>Q1 '25 ^(1)^
NOI $ 1,293,872
Adjustments:
Pro forma NOI from real estate assets sold and/or acquired 4,293
Other, net^(2)^ (3,141 )
Adjusted Total NOI 1,295,024
Less: Encumbered NOI (99,901 )
Unencumbered NOI $ 1,195,123
Encumbered NOI $ 99,901
Unencumbered NOI 1,195,123
Adjusted Total NOI $ 1,295,024
Unencumbered NOI to Adjusted Total NOI 92 %
^(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

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