EX-99.12ef20047876_ex99-1.htmEXHIBIT 99.1

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

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 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 driven by favorable same-property revenue growth, co-investment income, and interest expense.

•

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 revenues and NOI improved 1.6% and 0.9%, respectively.

•

Acquired three apartment home communities located in Northern California for a total contract price of $345.4 million.

•

Disposed of a 53-year-old apartment home community located in Southern California for a contract price of $127.0 million.

•

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%.

•

Increased the dividend by 4.9% to an annual distribution of $10.28 per common share, the Company’s 31st consecutive annual increase.

•

Reaffirmed the full-year guidance ranges for Core FFO per diluted share, same-property revenues, expenses, and NOI.

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

vs. Q1 2024

Q1 2025

vs. Q4 2024

% of Total Q1

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

vs. Q1 2024

Q1 2025

vs. Q4 2024

Scheduled Rents

2.1%

0.3%

Delinquency(1)

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 of 2024.

- 2 -

Year-Over-Year Change

Q1 2025 compared to Q1 2024

Revenues

Operating

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

Q1 2025 compared to Q4 2024

Revenues

Operating

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

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%

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.

- 3 -

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

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

- 4 -

2025 Full-Year Guidance and Key Assumptions

Per Diluted Share

Range

Current

Range

G1Net Income

$5.79 - $6.29

$9.19 - $9.69

G2Total FFO

$15.56 - $16.06

Core FFO

$15.56 - $16.06

G3Q2 2025 Core FFO

N/A

$3.90 - $4.02

Same-Property Portfolio Growth(1)

Based on 49,446 Apartment Homes

G4Revenues

2.25% to 3.75%

G5Operating Expenses

3.25% to 4.25%

G6Net Operating Income

1.40% to 4.00%

G7Q2 2025 Blended Net Effective Rate Growth

N/A

2.50% to 3.50%

Investment Assumptions

Acquisitions

$500.0M to $1.5B

G8Dispositions

$250.0M to $750.0M

G9Structured Finance Redemptions

$100.0M to $200.0M

G10Development Spending at Pro Rata Share

$75.0M

G11Revenue-Generating Capital Expenditures

$60.0M

(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.

- 5 -

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.

- 6 -

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

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

Tax (benefit) expense on unconsolidated co-investments (1)

(163

)

Realized and unrealized losses (gains) on marketable securities, net

(3,351

)

Provision for credit losses

)

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.

(2)

Represents the Company’s share of co-investment income or loss from technology co-investments.

(3)

Includes political advocacy costs of $0.1 million and $1.9 million for the three months ended March 31, 2025 and 2024, respectively.

(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 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.

(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 limited partnership units.

- 7 -

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

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

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.

- 8 -

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

- 9 -

ESSEX PROPERTY TRUST, INC.

Consolidated Operating Results

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

Three Months Ended

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

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.

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

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

(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

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

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

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

Tax (benefit) expense on unconsolidated co-investments (3)

(163

)

Realized and unrealized losses (gains) on marketable securities, net

(3,351

)

Provision for credit losses

)

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, 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)

(7)

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

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

Average

Interest

Rate

Percentage

of Total

Debt

Weighted Average

Balance

Outstanding

Interest

Rate

Maturity

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

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 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 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 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 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 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:

< 40%

Options-treasury method

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) 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 unsecured indebtedness.

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

(3) 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

Co-investments

Apartment

Homes in

Development (3)

Total

Consolidated

Unconsolidated

Co-investments (4)

Total (4)

Consolidated

Unconsolidated

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

2,743

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

(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 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 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.

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

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

Annualized turnover

Financial occupancy

96.3

95.9

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

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 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 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 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.

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

Revenues

Region - County

Apartment

Homes

Q1 '25

% of

Actual NOI

Q1 '25

Q1 '24

Change

Q1 '25

Q1 '24

Change

Q1 '25

Q1 '24

Change

Q4 '24

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

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

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.

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

Estimated

Apartment

Homes

Estimated

Commercial

sq. feet

Incurred

to Date

Remaining

Costs

Estimated

Total Cost

Cost per

Apartment

Home (1)

Construction

Start

Initial

Occupancy

Stabilized

Operations

Development Projects - Consolidated (2)

7 South Linden - South San Francisco, CA

100%

543

259

311

573

Q1 2025

Q2 2028

Q1 2030

Total Development Projects - Consolidated

543

259

311

573

Land Held for Future Development - Consolidated

Other Projects - Various

100%

Total Development Pipeline - Consolidated

543

259

355

(1)

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

(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.

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

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

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 Q1 2025.

(2)

Represents revenue generating or expense saving expenditures, such as full-scale redevelopments, interior unit turn renovations, enhanced amenities and certain sustainability initiatives.

(3)

Represents roof replacements, paving, building and mechanical systems, exterior painting, siding, etc. Non-revenue generating capital expenditures does not include costs related to retail, furniture and fixtures, expenditures in which the Company 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-12

ESSEX PROPERTY TRUST, INC.

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

(Dollars in thousands, except in footnotes)

Weighted

Average

Essex

Ownership

Percentage

Apartment

Homes

Total

Undepreciated

Book Value

Debt

Amount

Essex

Book Value

Weighted

Average

Borrowing

Rate (1)

Remaining

Term of Debt

(in Years)

Three Months

Ended

March 31,

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

of NOI and

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

Average

Preferred

Return

Weighted

Average

Expected

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 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 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.

(4)

As of March 31, 2025, the Company is invested in 17 preferred equity investments.

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

Homes

Year Built

Essex

Ownership

Percentage

Entity

Date

Total Contract

Price at

Pro Rata Share

Price per

Apartment Home (1)

Average

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

Homes

Year Built

Essex

Ownership

Percentage

Entity

Date

Total Contract

Price at

Pro Rata Share

Price per

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 Hundred Grand pursuant to the like-kind exchange rules under Section 1031 of the Internal Revenue Code of 1986, as amended.

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

Realized and unrealized gains on marketable securities, net

(91

)

(91

)

(91

)

Provision for credit losses

Equity income from non-core co-investments

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

Total non-core income and expenses

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

(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 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-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

9.93

Noncontrolling interest related to Operating Partnership units

0.11

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

Co-investment promote income

General and administrative and other, net

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 costs, and promote income until they are realized within the reporting period presented in the report.

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

S-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

Months Ended

March 31,

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

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

Provision for credit losses

)

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.

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.

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.

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,

2025

March 31,

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,

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,

2025

March 31,

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

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,

2025

March 31,

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.

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

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

(1)

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

(2)

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

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

S-17.4

Mentions · how they’re counted

Category	Underlined	Word counter	Model’s count
AI AI, artificial intelligence, generative AI, machine learning, large language model, LLM	0	—	—
Layoffs layoffs, RIF, headcount reduction, workforce optimization, restructuring	0	—	—
Recession recession, downturn, contraction, slowdown	1	—	—
Tariffs tariff, trade war, trade barriers, trade restrictions, trade policy	1	—	—
Buybacks share repurchase, buyback program	0	—	—

Underlines use the same word lists the scores use. AI, recession and tariffs follow Palanor’s word counter, so those counts match it exactly on the same text. Layoffs and buybacks use the terms the model was given. The model’s count is an estimate by meaning, not by string, so it can differ from the underlines.

Source: SEC EDGAR · public domain · Highlights by Palanor