Essex Property Trust Q3 earnings per share fall 40.6%

Revised 2026 guidance raises the Core FFO midpoint by $0.02 per diluted share to $16.16.

Rhea-AI Filing Summary

Essex Property Trust, Inc. (ESS) reported third-quarter 2026 net income of $1.52 per diluted share, down 40.6% from $2.56 a year earlier. Total FFO per diluted share was $3.98, down 1.2%, while Core FFO was $4.00, up 0.8%. For the first nine months, net income per diluted share was $4.14, down 54.8%; Core FFO was $12.15, up 1.6%. Same-property revenue grew 3.0% year over year and same-property NOI grew 3.1%.

Essex raised 2026 full-year guidance: Core FFO per diluted share is $16.10–$16.22, with a $16.16 midpoint, up $0.02; net income per diluted share midpoint increased $0.10 to $5.68. Same-property NOI guidance is 2.8%–3.2%. In September, Essex obtained a $275.0 million unsecured term loan priced at SOFR plus 0.80%, maturing in September 2029, with two one-year extension options. Year to date through September 30, 2026, Essex repurchased 254,001 shares for $61.9 million. Subsequent to quarter-end, Essex acquired a 378-unit Oakland community and will consolidate it in the fourth quarter of 2026.

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Positive

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Negative

• Moderate pointNet income per diluted share declined 40.6% in Q3 and 54.8% over nine months.

Filing Explained

The completed 52,600-share settlement increases the share count; the remaining ATM authority is sale capacity, not another completed issuance.

During Q3 2026, Essex settled forward sale agreements entered in Q1 2025, issuing 52,600 common shares and receiving $16.4 million net; issuing shares increases total shares and reduces existing holders’ ownership percentage absent offsets.

At September 30, 2026, it had $883.5 million of remaining ATM authority, capacity for gradual sales of new shares at prevailing prices rather than an issued amount.

8-K Event Classification

2 items: 2.02, 9.01

2 items

Item 2.02 Results of Operations and Financial Condition Financial

Disclosure of earnings results, typically an earnings press release or preliminary financials.

Item 9.01 Financial Statements and Exhibits Exhibits

Financial statements, pro forma financial information, or exhibit attachments filed with this report.

Key Figures

Net income per diluted share: $1.52 Total FFO per diluted share: $3.98 Core FFO per diluted share: $4.00 +5 more

8 metrics

Net income per diluted share $1.52 Three months ended September 30, 2026; down 40.6% from $2.56 in 2025

Total FFO per diluted share $3.98 Three months ended September 30, 2026; down 1.2% from $4.03 in 2025

Core FFO per diluted share $4.00 Three months ended September 30, 2026; up 0.8% from $3.97 in 2025

Same-property revenue growth 3.0% Third quarter 2026 compared with third quarter 2025

2026 Core FFO per diluted share guidance $16.10–$16.22 Revised full-year range; midpoint of $16.16 increased by $0.02

Unsecured term loan $275.0 million Obtained in September 2026; scheduled maturity in September 2029

Year-to-date common-stock repurchases 254,001 shares; $61.9 million Through September 30, 2026; includes commissions

Available liquidity Over $1.7 billion As of September 30, 2026

Key Terms

Funds from operations (FFO), Core FFO, Same-Property NOI, Financial Occupancy, +2 more

6 terms

Funds from operations (FFO) financial

"Funds from operations (“FFO”), as defined by Nareit"

Funds from operations (FFO) is a performance measure commonly used for real estate companies that adjusts net income by adding back non‑cash items like building depreciation and removing one‑time gains or losses from property sales, to show recurring operating earnings. Investors use FFO to judge a property portfolio’s ability to generate cash for dividends and growth — think of it as measuring a car’s regular fuel efficiency rather than its accounting value or one‑off resale price.

Core FFO financial

"FFO which excludes non-core items, which is referred to as “Core FFO”"

Core FFO (Core Funds From Operations) is a real estate industry measure of a property owner's recurring cash earnings calculated by starting with net income and removing non-cash accounting items and one-time gains or losses so the number reflects ongoing operating performance. Investors use it like a trimmed-down paycheck: it helps compare cash-generating ability across periods and companies by focusing on the stable, repeatable income rather than temporary or accounting-driven swings.

Same-Property NOI financial

"defines same-property NOI as same-property revenue less same-property operating expenses"

Same-property NOI is the change in net operating income from a real estate portfolio’s properties that were owned and operating in both the current and prior comparison periods, excluding income from recently bought, sold or newly developed properties. It matters to investors because it shows how the existing core assets are performing on their own—like comparing sales from the same stores before and after management actions—so you can judge organic cash-flow trends and management effectiveness without distortion from acquisitions or disposals.

Financial Occupancy financial

"Financial occupancy is defined as the percentage resulting from dividing actual rental income"

forward sale agreements financial

"settlement of its forward sale agreements entered in the first quarter of 2025"

A forward sale agreement is a deal where two parties agree today to sell and buy an asset at a set price on a future date. It’s like promising to sell your car to a friend next month at today's price, regardless of how the car's value changes. These agreements help businesses lock in prices and reduce uncertainty about future costs or income.

SOFR financial

"The loan is priced at SOFR plus 0.80%"

The Secured Overnight Financing Rate (SOFR) is a market benchmark that measures the cost of borrowing cash overnight using U.S. Treasury securities as collateral. Investors watch SOFR because it acts like a speedometer for short-term interest costs—affecting loan rates, bond yields and the pricing of interest-rate contracts—so movements change borrowing expenses, cash returns and the value of interest-sensitive investments.

Earnings Snapshot

Net income per diluted share: $1.52 · Guidance included

Three months ended September 30, 2026

Net income per diluted share $1.52 -40.6% year over year

Total FFO per diluted share $3.98 -1.2% year over year

Core FFO per diluted share $4.00 +0.8% year over year

Same-property revenue growth 3.0% year over year

Guidance

Revised 2026 full-year guidance: net income per diluted share $5.62–$5.74, with a $5.68 midpoint; Total FFO per diluted share $15.42–$15.54; Core FFO per diluted share $16.10–$16.22, with a $16.16 midpoint; same-property revenue growth 2.8%–3.0%; same-property operating expense growth 2.6%–2.9%; and same-property NOI growth 2.8%–3.2%.

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

What was ESS's Core FFO per diluted share in Q3 2026?

Essex reported $4.00 per diluted share of Core FFO for the three months ended September 30, 2026, up 0.8% from $3.97 a year earlier. Total FFO was $3.98 per diluted share, down 1.2% from $4.03. Essex said Core FFO exceeded the midpoint of its second-quarter guidance by $0.01 per diluted share, driven by same-property revenue growth.

What is ESS's revised 2026 Core FFO guidance?

The revised full-year range is $16.10–$16.22 per diluted share, with a $16.16 midpoint, up $0.02. Fourth-quarter 2026 Core FFO guidance is $3.95–$4.07 per diluted share, with a $4.01 midpoint.

What are the terms of ESS's $275 million term loan?

Essex obtained a $275.0 million unsecured term loan in September 2026, priced at SOFR plus 0.80%. It is scheduled to mature in September 2029 and has two one-year extension options exercisable at the company's option.

How much stock repurchase authority did ESS have remaining?

As of September 30, 2026, Essex had $500.0 million of purchase authority remaining under its stock repurchase plan. Year to date, it had repurchased 254,001 shares for $61.9 million, including commissions, at an average price of $243.76 per share.

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false0001053059000092052200009205222026-10-272026-10-270000920522ess:ESSEXPORTFOLIOLPMember2026-10-272026-10-27

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): October 27, 2026

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, Inc.)
California (Essex Portfolio, L.P.)		77-0369575 (Essex Portfolio, L.P.)
(State or Other Jurisdiction of Incorporation)		(I.R.S. Employer Identification No.)

1100 Park Place, Suite 200

San Mateo, CA 94403

 (Address of principal executive offices, including zip code)

(650) 655-7800

(Registrant’s telephone number, including area code)

Not Applicable

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

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

☐
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

Title of each class		Trading 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 October 27, 2026, Essex Property Trust, Inc. (the “Company”) issued a press release and supplemental information announcing the Company’s financial results for the three and nine months ended September 30, 2026. The Company has posted a copy of the press release and supplemental information on the Company’s website at www.essex.com. A copy of the press release and supplemental information is attached hereto as Exhibit 99.1 and incorporated by reference herein.

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

Item 9.01. Financial Statements and Exhibits.

(d)  Exhibits.

Exhibit No.		Description
99.1		Press Release and Supplemental Information for the three and nine months ended September 30, 2026.
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: October 27, 2026	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

 Third Quarter 2026  Earnings Release & Supplemental Data  Artizan | Oakland, CA 

Third Quarter 2026

Earnings Release and Supplemental Data

Table of Contents
Earnings Press Release	Pages 1 - 9
Consolidated Operating Results	S-1 & S-2
Consolidated Funds from Operations	S-3
Consolidated Balance Sheets	S-4
Debt Summary	S-5
Capitalization Data, Public Bond Covenants, Credit Ratings, and Selected Credit Ratios	S-6
Portfolio Summary by County	S-7
Operating Income by Quarter	S-8
Same-Property Revenue Results by County, Quarter-to-Date	S-9
Same-Property Revenue Results by County, Year-to-Date	S-9.1
Same-Property Operating Expenses, Quarter and Year-to-Date	S-10
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 2026 FFO Guidance Range	S-15
Reconciliation of Projected EPS, FFO and Core FFO per diluted share	S-15.1
MSA Level Supply Forecast: 2026E – 2027E	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

Table of Contents

Essex Announces Third Quarter 2026 Results

and Raises Full-Year 2026 Guidance

San Mateo, California—October 27, 2026—Essex Property Trust, Inc. (NYSE: ESS) (the “Company”) announced today its third quarter 2026 earnings results and related business activities.

Net Income, Funds from Operations (“FFO”), and Core FFO per diluted share for the three and nine-month periods ended September 30, 2026 are detailed below.

		Three Months Ended September 30,						%			Nine Months Ended September 30,						%
		2026			2025			Change			2026			2025			Change
Per Diluted Share
Net Income		$1.52			$2.56			-40.6%			$4.14			$9.15			-54.8%
Total FFO		$3.98			$4.03			-1.2%			$11.47			$12.03			-4.7%
Core FFO		$4.00			$3.97			0.8%			$12.15			$11.96			1.6%

Third Quarter 2026 Highlights:

• Reported Net Income per diluted share for the third quarter of 2026 of $1.52, compared to $2.56 in the third quarter of 2025. The decrease was primarily driven by gains on sale of real estate and land recognized in the third quarter of 2025.

• Grew Core FFO per diluted share by 0.8% compared to the third quarter of 2025, exceeding the midpoint of the Company’s guidance range by $0.01 per diluted share, driven by same-property revenue growth.

• Achieved same-property revenue and net operating income (“NOI”) growth of 3.0% and 3.1%, respectively, compared to the third quarter of 2025. On a sequential basis, same-property revenue improved by 1.0%, driven by growth across all regions and continued strength in Northern California.

• Disposed of three apartment communities for a total pro rata contract price of $111.9 million.

• Obtained a $275.0 million unsecured term loan priced at SOFR plus 0.80%.

Full-Year 2026 Revised Guidance		Revised Range			Revised Midpoint			Change at Midpoint
Net Income per diluted share		$5.62 - $5.74			$5.68			+$0.10
Core FFO per diluted share		$16.10 - $16.22			$16.16			+$0.02
Same-Property Revenue		2.8% to 3.0%			2.9%			+0.10%
Same-Property Operating Expenses		2.6% to 2.9%			2.8%			Unchanged
Same-Property NOI		2.8% to 3.2%			3.0%			+0.20%

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

www.essex.com

Table of Contents

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 revenue on a year-over-year basis for the three and nine-month periods ended September 30, 2026 and on a sequential basis for the three-month period ended September 30, 2026:

		Revenue Change
		Q3 2026 vs. Q3 2025				YTD 2026 vs. YTD 2025				Q3 2026 vs. Q2 2026				% of Total Q3 2026 Revenues
Southern California
Los Angeles County			0.5%				1.0%				0.1%				16.7%
Orange County			2.7%				2.8%				0.8%				10.1%
San Diego County			2.1%				1.9%				0.4%				9.8%
Ventura County			1.3%				1.6%				0.5%				4.7%
Total Southern California			1.5%				1.7%				0.4%				41.3%
Northern California
Santa Clara County			5.7%				4.9%				2.0%				21.2%
Alameda County			4.5%				3.7%				0.8%				7.0%
San Mateo County			6.6%				5.7%				2.5%				4.6%
Contra Costa County			3.0%				2.3%				0.8%				5.1%
San Francisco			8.0%				6.4%				1.7%				3.1%
Total Northern California			5.4%				4.6%				1.7%				41.0%
Seattle Metro			1.3%				1.8%				0.8%				17.7%
Same-Property Portfolio			3.0%				2.9%				1.0%				100.0%

The table below illustrates the components that drove the change in same-property revenue on a year-over-year basis for the three and nine-month periods ended September 30, 2026 and on a sequential basis for the three-month period ended September 30, 2026:

Same-Property Revenue Components		Q3 2026 vs. Q3 2025				YTD 2026 vs. YTD 2025				Q3 2026 vs. Q2 2026
Scheduled Rents			2.5%				2.3%				1.2%
Delinquency			0.0%				0.0%				0.0%
Cash Concessions			0.0%				-0.1%				-0.1%
Vacancy			0.1%				0.1%				-0.1%
Other Income			0.4%				0.6%				0.0%
Q3 2026 Same-Property Revenue Growth			3.0%				2.9%				1.0%

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Table of Contents

		Year-Over-Year Change												Year-Over-Year Change
		Q3 2026 compared to Q3 2025												YTD 2026 compared to YTD 2025
		Revenue				Operating Expenses				NOI				Revenue				Operating Expenses				NOI
Southern California			1.5%				2.6%				1.0%				1.7%				2.3%				1.5%
Northern California			5.4%				1.8%				7.0%				4.6%				0.3%				6.5%
Seattle Metro			1.3%				5.3%				-0.4%				1.8%				4.9%				0.5%
Same-Property Portfolio			3.0%				2.8%				3.1%				2.9%				1.9%				3.3%

		Sequential Change
		Q3 2026 compared to Q2 2026
		Revenue				Operating Expenses				NOI
Southern California			0.4%				6.4%				-2.0%
Northern California			1.7%				7.4%				-0.7%
Seattle Metro			0.8%				5.6%				-1.2%
Same-Property Portfolio			1.0%				6.7%				-1.3%

		Financial Occupancies
		Quarter Ended
		9/30/2026				6/30/2026				9/30/2025
Southern California			96.1%				95.7%				95.8%
Northern California			96.5%				96.8%				96.3%
Seattle Metro			96.1%				96.4%				96.1%
Same-Property Portfolio			96.3%				96.3%				96.0%

Investment Activity

Dispositions

In August 2026, the Company sold a 76-unit apartment home community located in Seattle, WA, for a contract price of $30.0 million. The Company recorded a gain on sale of real estate and land of $6.8 million in the third quarter, which has been excluded from Total and Core FFO.

In August 2026, a joint venture in which the Company owned a 58% interest sold a 268-unit apartment home community located in San Jose, CA, for a contract price of $122.3 million ($70.9 million at pro rata share). In addition, the Company was fully redeemed on a $15.6 million preferred equity investment affiliated with the partnership. The Company recorded a gain on sale of co-investment communities of $5.8 million at pro rata share in the third quarter, which has been excluded from Total and Core FFO.

Other Investments

In July 2026, Wesco VII, LLC (“Wesco VII”), a joint venture in which the Company owns a 50% interest, originated two preferred equity investments in two stabilized apartment communities totaling $36.2 million ($18.1 million at pro rata share). Both investments were fully funded at closing and yield an initial preferred return of 11.5%.

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Table of Contents

Subsequent to quarter end, the Company acquired a 378-unit apartment home community built in 2024 and located in Oakland, CA. This transaction follows the liquidation of the Company’s $64.2 million subordinated loan interest and payoff of the associated $92.3 million senior mortgage. The Company has not accrued income on this investment since the third quarter of 2025 and will consolidate the community on its financial statements in the fourth quarter of 2026.

Balance Sheet and Liquidity

Balance Sheet

In September 2026, the Company obtained a $275.0 million unsecured term loan which is scheduled to mature in September 2029 with two one-year extension options, exercisable at the Company’s option. The loan is priced at SOFR plus 0.80%.

Common Stock and Liquidity

In the third quarter of 2026, the Company received net cash proceeds of $16.4 million from the settlement of its forward sale agreements entered in the first quarter of 2025, by issuing 52,600 shares of common stock at a weighted average price of $311.13 per share, net of commissions. As of September 30, 2026, there were no outstanding forward sale agreements and the Company had $883.5 million of available authority remaining under its ATM program.

During the third quarter of 2026, the Company did not repurchase any shares through its stock repurchase plan. Year-to-date, the Company has repurchased 254,001 shares of its common stock totaling $61.9 million, including commissions, at an average price per share of $243.76. As of September 30, 2026, the Company had $500.0 million of purchase authority remaining under its stock repurchase plan.

As of September 30, 2026, the Company had over $1.7 billion of liquidity via available capacity on its unsecured credit facilities, cash and cash equivalents, and marketable securities.

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Guidance

For the third quarter of 2026, the Company exceeded the midpoint of the guidance range provided in its second quarter 2026 earnings release for Core FFO by $0.01 per diluted share, driven by same-property revenue growth.

2026 Full-Year and Fourth Quarter Guidance

Per Diluted Share

Previous Range

Revised Range

Revised Midpoint

Change at Midpoint

Net Income

$5.47 - $5.69

$5.62 - $5.74

$5.68

+$0.10

Total FFO

$15.37 - $15.59

$15.42 - $15.54

$15.48

Unchanged

Core FFO

$16.03 - $16.25

$16.10 - $16.22

$16.16

+$0.02

Q4 2026 Core FFO

N/A

$3.95 - $4.07

$4.01

N/A

Same-Property Portfolio Growth (1)

Revenue

2.5% to 3.1%

2.8% to 3.0%

2.9%

+0.10%

Operating Expenses

2.5% to 3.0%

2.6% to 2.9%

2.8%

Unchanged

Net Operating Income

2.3% to 3.3%

2.8% to 3.2%

3.0%

+0.20%

⁽¹⁾ Reflects guidance on a cash basis based on 52,059 apartment homes. On a GAAP basis, the midpoints of the Company’s same-property revenue and NOI guidance are 2.9% and 3.0%, respectively

For additional details regarding the Company’s 2026 FFO guidance range, 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, October 28, 2026 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 third quarter 2026 earnings link. To access the replay, dial (844) 512-2921 using the replay pin number 13763055. If you are unable to access the information via the Company’s website, please contact the Investor Relations Department at investors@essex.com or call (650) 655-7800.

Corporate Profile

Essex Property Trust, Inc., an S&P 500 company, is a fully integrated real estate investment trust (REIT) that acquires, develops, redevelops, and manages multifamily residential properties in selected West Coast markets. Essex currently has ownership interests in 255 apartment home 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.

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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 and nine-month periods ended September 30, 2026 and 2025 (dollars in thousands, except for share and per share amounts):

		Three Months Ended September 30,								Nine Months Ended September 30,
		2026				2025				2026				2025
Net income available to common stockholders		$	98,069			$	164,621			$	266,717			$	589,093
Adjustments:
Depreciation and amortization			152,552				151,489				461,520				454,277
Gains not included in FFO			(12,539	)			(67,509	)			(23,770	)			(305,043	)
Impairment loss			10,709				-				10,709				-
Depreciation and amortization from unconsolidated co-investments			12,611				14,343				39,094				43,127
Noncontrolling interest related to Operating Partnership units			3,330				5,767				9,122				20,827
Depreciation attributable to third party ownership and other			(39	)			(38	)			(115	)			(122	)
FFO attributable to common stockholders and unitholders		$	264,693			$	268,673			$	763,277			$	802,159
FFO per share – diluted		$	3.98			$	4.03			$	11.47			$	12.03
Expensed acquisition and investment related costs		$	-			$	25			$	-			$	25
Tax (benefit) expense on unconsolidated technology co-investments			(493	)			(1,958	)			2,758				(2,353	)
Realized and unrealized losses (gains) on marketable securities, net			508				(1,658	)			(3,482	)			(4,059	)
Provision for credit losses			-				50				(222	)			61
Equity loss (income) from unconsolidated technology co-investments			33				(4,393	)			(16,154	)			(6,005	)
Loss on early retirement of debt			-				-				-				762
Income from early redemption of preferred equity investments			-				(70	)			(179	)			(70	)
General and administrative and other, net (1)			1,504				3,926				62,835				7,863
Insurance reimbursements and other, net			(44	)			(89	)			(342	)			(789	)
Core FFO attributable to common stockholders and unitholders		$	266,201			$	264,506			$	808,491			$	797,594
Core FFO per share – diluted		$	4.00			$	3.97			$	12.15			$	11.96
Weighted average number of shares outstanding diluted (2)			66,495,937				66,674,655				66,548,417				66,667,571

⁽¹⁾ Includes political advocacy costs of $0.3 million and $2.0 million for the three and nine months ended September 30, 2026, respectively, and $1.6 million and $2.0 million for the three and nine months ended September 30, 2025, respectively. During the nine months ended September 30, 2026, the Company reached a settlement to fully resolve its case related to RealPage, Inc. totaling $36.5 million and another litigation matter totaling $19.3 million.

⁽²⁾ 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.

 

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

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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 revenue 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 September 30,								Nine Months Ended September 30,
		2026				2025				2026				2025
Earnings from operations		$	156,760			$	210,399			$	421,326			$	747,180
Adjustments:
Corporate-level property management expenses			13,393				12,216				40,223				36,768
Depreciation and amortization			152,552				151,489				461,520				454,277
Management and other fees from affiliates			(2,344	)			(2,361	)			(6,975	)			(7,078	)
General and administrative			16,561				18,058				109,724				51,507
Expensed acquisition and investment related costs			-				25				-				25
Impairment loss			10,709				-				10,709				-
Gain on sale of real estate and land			(6,781	)			(62,320	)			(8,781	)			(299,524	)
NOI			340,850				327,506				1,027,746				983,155
Less: Non-same property NOI			(27,662	)			(23,818	)			(85,396	)			(70,738	)
Same-Property NOI		$	313,188			$	303,688			$	942,350			$	912,417

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 fourth quarter and full-year 2026 guidance (including net income, Total FFO and Core FFO, same-property growth and related assumptions) and anticipated yield on certain investments. While the Company’s management believes the assumptions underlying its forward-looking statements are reasonable, such forward-looking statements involve known and unknown risks, uncertainties and other factors, many of which are beyond the Company’s control, which could cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. The Company cannot assure the future results or outcome of the matters described in these statements; rather, these statements merely reflect the Company’s current expectations of the approximate outcomes of the matters discussed.

Factors that might cause the Company’s actual results, performance or achievements to differ materially from those expressed or implied by these forward-looking statements include, but are not limited to, the following: assumptions related to our fourth quarter and full-year 2026 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

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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, 2025, 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

Sr. Director, Investor Relations

(650) 655-7800

lrainey@essex.com

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

Consolidated Operating Results

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

		Three Months Ended September 30,								Nine Months Ended September 30,
		2026				2025				2026				2025
Revenues:
Rental and other property		$	490,346			$	470,942			$	1,459,520			$	1,400,641
Management and other fees from affiliates			2,344				2,361				6,975				7,078
			492,690				473,303				1,466,495				1,407,719
Expenses:
Property operating			149,496				143,436				431,774				417,486
Corporate-level property management expenses			13,393				12,216				40,223				36,768
Depreciation and amortization			152,552				151,489				461,520				454,277
General and administrative			16,561				18,058				109,724				51,507
Expensed acquisition and investment related costs			-				25				-				25
Impairment loss			10,709				-				10,709				-
			342,711				325,224				1,053,950				960,063
Gain on sale of real estate and land			6,781				62,320				8,781				299,524
Earnings from operations			156,760				210,399				421,326				747,180
Interest expense, net (1)			(63,416	)			(63,331	)			(193,047	)			(189,054	)
Interest and other income			686				5,900				10,809				16,997
Equity income from co-investments			9,212				17,798				46,542				39,984
Tax benefit (expense) on unconsolidated technology co-investments			493				1,958				(2,758	)			2,353
Loss on early retirement of debt			-				-				-				(762	)
Gain on remeasurement of co-investment			-				-				-				330
Net income			103,735				172,724				282,872				617,028
Net income attributable to noncontrolling interest			(5,666	)			(8,103	)			(16,155	)			(27,935	)
Net income available to common stockholders		$	98,069			$	164,621			$	266,717			$	589,093
Net income per share - basic		$	1.53			$	2.56			$	4.15			$	9.15
Shares used in income per share - basic			64,290,878				64,404,008				64,336,608				64,368,625
Net income per share - diluted		$	1.52			$	2.56			$	4.14			$	9.15
Shares used in income per share - diluted			64,311,993				64,418,240				64,350,275				64,392,244

⁽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

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

Consolidated Operating Results - Selected Line Item Detail

(Dollars in thousands)

		Three Months Ended September 30,								Nine Months Ended September 30,
		2026				2025				2026				2025
Rental and other property
Rental income		$	482,770			$	463,892			$	1,438,000			$	1,380,438
Other property			7,576				7,050				21,520				20,203
Rental and other property		$	490,346			$	470,942			$	1,459,520			$	1,400,641
Property operating expenses
Real estate taxes		$	53,569			$	52,023			$	157,108			$	153,652
Utilities			35,023				32,713				98,750				91,075
Personnel costs			28,318				27,448				81,806				80,443
Maintenance and repairs			17,968				16,052				48,709				46,924
Administrative			8,341				8,314				25,235				24,663
Insurance and other			6,277				6,886				20,166				20,729
Property operating expenses		$	149,496			$	143,436			$	431,774			$	417,486
Interest and other income
Marketable securities and other income		$	1,150			$	4,218			$	6,785			$	12,210
Realized and unrealized (losses) gains on marketable securities, net			(508	)			1,658				3,482				4,059
Provision for credit losses			-				(50	)			222				(61	)
Insurance reimbursements and other, net			44				74				320				789
Interest and other income		$	686			$	5,900			$	10,809			$	16,997
Equity income from co-investments
Equity income (loss) from co-investments		$	478			$	(485	)		$	3,358			$	(1,008	)
Income from preferred equity investments			3,009				8,616				11,840				29,728
Equity (loss) income from unconsolidated technology co-investments			(33	)			4,393				16,154				6,005
Insurance reimbursements and other, net			-				15				22				-
Gain on sale of co-investment communities			5,758				5,189				14,989				5,189
Income from early redemption of preferred equity investments			-				70				179				70
Equity income from co-investments		$	9,212			$	17,798			$	46,542			$	39,984
Noncontrolling interest
Limited partners of Essex Portfolio, L.P.		$	3,330			$	5,767			$	9,122			$	20,827
DownREIT limited partners’ distributions			2,297				2,294				6,905				6,972
Third-party ownership interest			39				42				128				136
Noncontrolling interest		$	5,666			$	8,103			$	16,155			$	27,935

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

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

Consolidated Funds from Operations ⁽¹⁾

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

		Three Months Ended September 30,												Nine Months Ended September 30,
		2026				2025				% Change				2026				2025				% Change
Funds from operations attributable to common stockholders and     unitholders (FFO)
Net income available to common stockholders		$	98,069			$	164,621							$	266,717			$	589,093
Adjustments:
Depreciation and amortization			152,552				151,489								461,520				454,277
Gains not included in FFO			(12,539	)			(67,509	)							(23,770	)			(305,043	)
Impairment loss			10,709				-								10,709				-
Depreciation and amortization from unconsolidated co-investments			12,611				14,343								39,094				43,127
Noncontrolling interest related to Operating Partnership units			3,330				5,767								9,122				20,827
Depreciation attributable to third party ownership and other			(39	)			(38	)							(115	)			(122	)
Funds from operations attributable to common stockholders and unitholders		$	264,693			$	268,673							$	763,277			$	802,159
FFO per share - diluted		$	3.98			$	4.03				-1.2%			$	11.47			$	12.03			-4.7%
Components of the change in FFO
Non-core items:
Expensed acquisition and investment related costs		$	-			$	25							$	-			$	25
Tax (benefit) expense on unconsolidated technology co-investments			(493	)			(1,958	)							2,758				(2,353	)
Realized and unrealized losses (gains) on marketable securities, net			508				(1,658	)							(3,482	)			(4,059	)
Provision for credit losses			-				50								(222	)			61
Equity loss (income) from unconsolidated technology co-investments			33				(4,393	)							(16,154	)			(6,005	)
Loss on early retirement of debt			-				-								-				762
Income from early redemption of preferred equity investments			-				(70	)							(179	)			(70	)
General and administrative and other, net (2)			1,504				3,926								62,835				7,863
Insurance reimbursements and other, net			(44	)			(89	)							(342	)			(789	)
Core funds from operations attributable to common stockholders and unitholders		$	266,201			$	264,506							$	808,491			$	797,594
Core FFO per share - diluted		$	4.00			$	3.97				0.8%			$	12.15			$	11.96			1.6%
Weighted average number of shares outstanding - diluted (3)			66,495,937				66,674,655								66,548,417				66,667,571

⁽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⁾ Includes political advocacy costs of $0.3 million and $2.0 million for the three and nine months ended September 30, 2026, respectively, and $1.6 million and $2.0 million for the three and nine months ended September 30, 2025, respectively. During the nine months ended September 30, 2026, the Company reached a settlement to fully resolve its case related to RealPage, Inc. totaling $36.5 million and another litigation matter totaling $19.3 million.

⁽³⁾ Assumes conversion of all outstanding limited partnership units in the Operating Partnership into shares of the Company’s common stock and excludes DownREIT limited partnership units.

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

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

Consolidated Balance Sheets

(Dollars in thousands)

		September 30, 2026				December 31, 2025
Real estate investments:
Land and land improvements		$	3,355,893			$	3,363,169
Buildings and improvements			15,146,101				15,073,416
			18,501,994				18,436,585
Less: accumulated depreciation			(6,931,353	)			(6,532,003	)
			11,570,641				11,904,582
Real estate under development			210,654				157,122
Co-investments			612,871				630,550
			12,394,166				12,692,254
Cash and cash equivalents, including restricted cash			80,298				85,586
Marketable securities			102,665				98,070
Notes and other receivables			94,064				141,591
Operating lease right-of-use assets			31,231				50,833
Prepaid expenses and other assets			113,830				90,675
Total assets		$	12,816,254			$	13,159,009
Unsecured debt, net		$	5,844,670			$	6,015,921
Mortgage notes payable, net			761,144				784,348
Distributions in excess of investments in co-investments			108,854				98,837
Operating lease liabilities			31,813				51,487
Other liabilities			584,250				471,521
Total liabilities			7,330,731				7,422,114
Redeemable noncontrolling interest			26,069				28,263
Equity:
Common stock			6				6
Additional paid-in capital			6,652,282				6,683,514
Distributions in excess of accumulated earnings			(1,381,186	)			(1,148,195	)
Accumulated other comprehensive income, net			27,426				6,047
Total stockholders’ equity			5,298,528				5,541,372
Noncontrolling interest			160,926				167,260
Total equity			5,459,454				5,708,632
Total liabilities and equity		$	12,816,254			$	13,159,009

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

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

Debt Summary - September 30, 2026

(Dollars in thousands,EXCEPT IN footnotes)

														Scheduled principal payments and debt composition - excludes lines of credit and commercial paper and unamortized discounts and debt issuance costs:
						Weighted Average																						Weighted Average Interest Rate
		Balance Outstanding				Interest Rate				Maturity in Years						Unsecured				Secured				Total								Percentage of Total Debt
Unsecured Debt, net
Bonds public - fixed rate		$	5,000,000				3.7	%			6.9			2026		$	-			$	46,092			$	46,092				4.0	%			0.7	%
Term loan - fixed rate (1)			600,000				4.1	%			4.0			2027			350,000				84,397				434,397				3.6	%			6.6	%
Term loan - variable rate (2)			275,000				4.6	%			3.0			2028			450,000				68,332				518,332				2.2	%			7.8	%
Total unsecured debt, net			5,875,000				3.8	%			6.5			2029			775,000				1,456				776,456				4.3	%			11.7	%
														2030			850,000				66,592				916,592				3.6	%			13.8	%
Mortgage Notes Payable, net														2031			900,000				31,740				931,740				3.0	%			14.0	%
Fixed rate - secured			505,804				4.9	%			5.1			2032			650,000				1,903				651,903				2.6	%			9.8	%
Variable rate - secured (3)			257,954				3.2	%			12.5			2033			-				330,126				330,126				4.9	%			5.0	%
Total mortgage notes payable, net			763,758				4.4	%			7.6			2034			550,000				2,275				552,275				5.5	%			8.3	%
														2035			400,000				2,487				402,487				5.5	%			6.1	%
Unsecured Lines of Credit and Commercial Paper														2036			350,000				2,719				352,719				5.0	%			5.3	%
Lines of credit (4)			-				4.6	%			N/A			Thereafter			600,000				125,639				725,639				3.6	%			10.9	%
Commercial paper (5)			-				N/A				N/A			Total			5,875,000				763,758				6,638,758				3.8	%			100.0	%
Total lines of credit and commercial paper			-				4.6	%			N/A
														Fixed versus variable rate debt:
Unamortized discounts and debt issuance costs, net			(32,944)											Fixed rate debt			5,600,000				505,804				6,105,804				3.8	%			92.0	%
														Variable rate debt			275,000				257,954				532,954				3.9	%			8.0	%
Total debt, net		$	6,605,814				3.8	%			6.6			Total		$	5,875,000			$	763,758			$	6,638,758				3.8	%			100.0	%

⁽¹⁾ The Company has entered into interest rate swaps on $600 million of its aggregate term loan debt. $300 million is swapped to an all-in fixed rate of 4.1% through October 2026, after which $300 million of interest rate swaps will come into effect at an all-in fixed rate of 4.5% through January 2031. An additional $300 million of term loan debt is swapped to an all-in fixed rate of 4.1% through April 2030.

⁽²⁾ In September 2026, the Company entered into a $275 million unsecured term loan with a maturity date in September 2029 plus two one-year extension options exercisable at the Company’s discretion. The interest rate on the loan is SOFR plus 0.80%, which is based on a tiered rate structure tied to the Operating Partnership’s long-term unsecured credit ratings.

⁽³⁾ The Company’s secured variable rate exposure is linked to SIFMA which has historically averaged 60% to 70% of the SOFR rate.

⁽⁴⁾ The Company has two unsecured line of credit facilities with an aggregate capacity of $1.58 billion. The first unsecured line of credit facility has a capacity of $1.5 billion and a scheduled maturity date in January 2030 plus two 6-month extension options, which are exercisable at the Company’s discretion. The second unsecured line of credit facility has a capacity of $75.0 million, and a scheduled maturity date in July 2028.

⁽⁵⁾ The Company has a commercial paper program under which it can issue up to $750 million of unsecured short-term notes, which are backstopped by and reduce the borrowing capacity of the Company’s $1.5 billion unsecured line of credit facility.

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

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

Capitalization Data, Public Bond Covenants, Credit Ratings and Selected Credit Ratios - September 30, 2026

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

Capitalization Data

Public Bond Covenants (1)

Actual

Requirement

Total debt, net

$

6,605,814

Common stock and potentially dilutive securities

Debt to Total Assets:

33%

< 65%

Common stock outstanding

64,338

Limited partnership units (1)

2,184

Secured Debt to Total Assets:

4%

< 40%

Options-treasury method

15

Total shares of common stock and potentially dilutive securities

66,537

Interest Coverage:

509%

> 150%

Common stock price per share as of September 30, 2026

$

269.39

Unsecured Debt Ratio (2):

301%

> 150%

Total equity capitalization

$

17,924,402

Selected Credit Ratios (3)

Actual

Total market capitalization

$

24,530,216

Net Indebtedness Divided by Adjusted EBITDAre, normalized and annualized:

5.4

Ratio of debt to total market capitalization

26.9

%

Unencumbered NOI to Adjusted Total NOI:

93%

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

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

Portfolio Summary by County as of September 30, 2026

		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			9,565				1,586				-				11,151			$	2,709			$	2,579			$	2,698				14.7	%			20.7	%			15.0	%
Orange County			5,741				265				-				6,006				2,780				2,558				2,775				10.8	%			3.7	%			10.4	%
San Diego County			5,449				443				-				5,892				2,726				3,119				2,742				9.9	%			7.1	%			9.7	%
Ventura County and Other			2,760				373				-				3,133				2,553				3,304				2,608				4.9	%			7.1	%			5.0	%
Total Southern California			23,515				2,667				-				26,182				2,712				2,764				2,715				40.3	%			38.6	%			40.1	%
Northern California
Santa Clara County (5)			10,673				511				-				11,184				3,320				3,507				3,324				23.5	%			8.6	%			22.7	%
Alameda County			3,970				1,328				-				5,298				2,727				2,712				2,725				6.6	%			18.4	%			7.3	%
San Mateo County			2,483				195				543				3,221				3,619				4,051				3,635				5.7	%			3.7	%			5.6	%
Contra Costa County			2,619				-				-				2,619				2,847				-				2,847				4.7	%			0.0	%			4.4	%
San Francisco			1,356				537				-				1,893				3,214				3,874				3,323				2.7	%			9.7	%			3.1	%
Total Northern California			21,101				2,571				543				24,215				3,178				3,182				3,178				43.2	%			40.4	%			43.1	%
Seattle Metro			10,823				1,759				-				12,582				2,301				2,184				2,291				16.5	%			21.0	%			16.8	%
Total			55,439				6,997				543				62,979			$	2,809			$	2,772			$	2,807				100.0	%			100.0	%			100.0	%

⁽¹⁾ Average monthly rental rate is defined as the total scheduled monthly rental income (actual rent for occupied apartment homes plus market rent for vacant apartment homes) for the quarter ended September 30, 2026, divided by the number of apartment homes as of September 30, 2026.

⁽²⁾ Represents the percentage of actual NOI for the quarter ended September 30, 2026. See “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 one community in Santa Cruz County.

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

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

Operating Income by Quarter ⁽¹⁾

(Dollars in thousands)

		Apartment Homes				Q3 ‘26				Q2 ‘26				Q1 ‘26				Q4 ‘25				Q3 ‘25
Rental and other property revenues:
Same-property			52,059			$	449,896			$	445,480			$	442,012			$	439,042			$	436,733
Acquisitions (2)			2,140				22,295				21,495				20,761				17,712				13,398
Non-residential/other, net (3)			1,240				18,272				19,959				19,785				19,642				20,496
Straight-line rent concessions (4)			-				(117	)			(203	)			(115	)			927				315
Total rental and other property revenues			55,439				490,346				486,731				482,443				477,323				470,942
Property operating expenses:
Same-property							136,708				129,016				129,314				130,468				133,045
Acquisitions (2)							8,882				7,544				8,273				6,873				5,019
Non-residential/other, net (3) (5)							3,906				4,462				3,669				4,159				5,372
Total property operating expenses							149,496				141,022				141,256				141,500				143,436
Net operating income (NOI):
Same-property							313,188				316,464				312,698				308,574				303,688
Acquisitions (2)							13,413				13,951				12,488				10,839				8,379
Non-residential/other, net (3) (5)							14,366				15,497				16,116				15,483				15,124
Straight-line rent concessions (4)							(117	)			(203	)			(115	)			927				315
Total NOI						$	340,850			$	345,709			$	341,187			$	335,823			$	327,506
Same-property metrics
Operating margin							70	%			71	%			71	%			70	%			70	%
Annualized turnover							42	%			40	%			33	%			35	%			44	%
Financial occupancy							96.3	%			96.3	%			96.5	%			96.4	%			96.0	%
Delinquency as a % of scheduled rent							0.5	%			0.5	%			0.4	%			0.5	%			0.5	%
Same-property net effective rate growth (6)
New lease							-0.2	%			1.0	%			-2.4	%			-4.3	%			-0.6	%
Renewal							5.3	%			4.8	%			3.9	%			4.7	%			4.3	%
Blended							3.5	%			3.6	%			1.4	%			1.0	%			2.5	%

⁽¹⁾ Includes consolidated communities only.

⁽²⁾ Acquisitions include properties acquired which did not have comparable stabilized results as of January 1, 2025.

⁽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, properties subject to upcoming ground lease expirations, two communities located in the California counties of Santa Barbara and Santa Cruz, which the Company does not consider its core markets, and properties without comparable operating results in the reported periods.

⁽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⁾ Represents the percentage change in all lease tradeouts, including the impact of leasing incentives.

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

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

Same-Property Revenue Results by County – Third Quarter 2026 vs. Third Quarter 2025 and Second Quarter 2026

(Dollars in thousands, except average monthly rental rates)

		Apartment Homes				Q3 ‘26 % of Actual NOI				Average Monthly Rental Rate												Financial Occupancy												Gross Revenues												Sequential Gross Revenues
Region - County										Q3 ‘26				Q3 ‘25				% Change				Q3 ‘26				Q3 ‘25				% Change				Q3 ‘26				Q3 ‘25				% Change				Q2 ‘26				% Change
Southern California
Los Angeles County			9,189				15.4	%		$	2,683			$	2,675				0.3	%			95.7	%			95.4	%			0.3	%		$	75,229			$	74,891				0.5	%		$	75,119				0.1	%
Orange County			5,341				10.7	%			2,758				2,690				2.5	%			96.5	%			96.4	%			0.1	%			45,263				44,068				2.7	%			44,902				0.8	%
San Diego County			5,207				10.2	%			2,736				2,710				1.0	%			96.5	%			95.8	%			0.7	%			43,932				43,045				2.1	%			43,748				0.4	%
Ventura County			2,652				5.0	%			2,548				2,522				1.0	%			96.1	%			95.8	%			0.3	%			21,097				20,834				1.3	%			20,984				0.5	%
Total Southern California			22,389				41.3	%			2,697				2,669				1.0	%			96.1	%			95.8	%			0.3	%			185,521				182,838				1.5	%			184,753				0.4	%
Northern California
Santa Clara County			9,279				21.9	%			3,310				3,151				5.0	%			96.8	%			96.5	%			0.3	%			95,284				90,188				5.7	%			93,446				2.0	%
Alameda County			3,729				6.7	%			2,714				2,620				3.6	%			96.2	%			96.1	%			0.1	%			31,687				30,325				4.5	%			31,427				0.8	%
San Mateo County			1,864				4.5	%			3,568				3,353				6.4	%			96.6	%			96.9	%			-0.3	%			20,842				19,544				6.6	%			20,332				2.5	%
Contra Costa County			2,619				5.0	%			2,847				2,782				2.3	%			96.0	%			95.6	%			0.4	%			23,101				22,424				3.0	%			22,920				0.8	%
San Francisco			1,356				2.9	%			3,214				2,976				8.0	%			95.6	%			95.8	%			-0.2	%			13,751				12,731				8.0	%			13,525				1.7	%
Total Northern California			18,847				41.0	%			3,146				3,002				4.8	%			96.5	%			96.3	%			0.2	%			184,665				175,212				5.4	%			181,650				1.7	%
Seattle Metro			10,823				17.7	%			2,301				2,280				0.9	%			96.1	%			96.1	%			0.0	%			79,710				78,683				1.3	%			79,077				0.8	%
Total Same-Property			52,059				100.0	%		$	2,777			$	2,709				2.5	%			96.3	%			96.0	%			0.3	%		$	449,896			$	436,733				3.0	%		$	445,480				1.0	%

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

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

Same-Property Revenue Results by County – Nine months ended September 30, 2026 vs. Nine months ended September 30, 2025

(Dollars in thousands, except average monthly rental rates)

		Apartment Homes				YTD 2026 % of Actual NOI				Average Monthly Rental Rate												Financial Occupancy												Gross Revenues
Region - County										YTD 2026				YTD 2025				% Change				YTD 2026				YTD 2025				% Change				YTD 2026				YTD 2025				% Change
Southern California
Los Angeles County			9,189				15.6	%		$	2,680			$	2,663				0.6	%			95.6	%			95.2	%			0.4	%		$	226,020			$	223,681				1.0	%
Orange County			5,341				10.7	%			2,734				2,670				2.4	%			96.2	%			96.2	%			0.0	%			134,837				131,207				2.8	%
San Diego County			5,207				10.3	%			2,723				2,692				1.2	%			96.4	%			95.9	%			0.5	%			131,370				128,918				1.9	%
Ventura County			2,652				5.1	%			2,539				2,500				1.6	%			96.1	%			96.2	%			-0.1	%			63,084				62,071				1.6	%
Total Southern California			22,389				41.7	%			2,686				2,652				1.3	%			96.0	%			95.7	%			0.3	%			555,311				545,877				1.7	%
Northern California
Santa Clara County			9,279				21.6	%			3,243				3,112				4.2	%			97.0	%			96.6	%			0.4	%			280,637				267,469				4.9	%
Alameda County			3,729				6.7	%			2,669				2,598				2.7	%			96.4	%			96.3	%			0.1	%			93,992				90,630				3.7	%
San Mateo County			1,864				4.7	%			3,475				3,294				5.5	%			97.1	%			97.0	%			0.1	%			61,050				57,774				5.7	%
Contra Costa County			2,619				5.0	%			2,811				2,761				1.8	%			96.3	%			96.2	%			0.1	%			68,767				67,230				2.3	%
San Francisco			1,356				2.6	%			3,131				2,936				6.6	%			96.1	%			96.5	%			-0.4	%			40,383				37,938				6.4	%
Total Northern California			18,847				40.6	%			3,084				2,967				3.9	%			96.7	%			96.5	%			0.2	%			544,829				521,041				4.6	%
Seattle Metro			10,823				17.7	%			2,285				2,257				1.2	%			96.3	%			96.2	%			0.1	%			237,248				233,083				1.8	%
Total Same-Property			52,059				100.0	%		$	2,747			$	2,684				2.3	%			96.4	%			96.2	%			0.2	%		$	1,337,388			$	1,300,001				2.9	%

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

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

Same-Property Operating Expenses – Quarter to Date and Year to Date as of September 30, 2026 and 2025

(Dollars in thousands)

Based on 52,059 apartment homes
		Q3 ‘26				Q3 ‘25				% Change				% of Operating Expense
Same-property operating expenses:
Real estate taxes		$	47,879			$	47,132				1.6	%			35.0	%
Utilities			31,674				30,266				4.7	%			23.2	%
Personnel costs			25,911				25,499				1.6	%			19.0	%
Maintenance and repairs			16,408				14,828				10.7	%			12.0	%
Administrative			6,719				6,716				0.0	%			4.9	%
Insurance and other			8,117				8,604				-5.7	%			5.9	%
Total same-property operating expenses		$	136,708			$	133,045				2.8	%			100.0	%

		YTD 2026				YTD 2025				% Change				% of Operating Expense
Same-property operating expenses:
Real estate taxes		$	140,995			$	140,111				0.6	%			35.7	%
Utilities			89,646				83,939				6.8	%			22.7	%
Personnel costs			75,019				74,631				0.5	%			19.0	%
Maintenance and repairs			44,531				43,490				2.4	%			11.3	%
Administrative			19,672				19,622				0.3	%			5.0	%
Insurance and other			25,175				25,791				-2.4	%			6.3	%
Total same-property operating expenses		$	395,038			$	387,584				1.9	%			100.0	%

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

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

Development Pipeline – September 30, 2026

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

Project Name - Location		Ownership %				Estimated Apartment Homes				Estimated Commercial sq. feet				Incurred to Date (1)				Remaining Costs				Estimated Total Cost				Cost per Apartment Home (2)				Construction Start				Initial Occupancy				Stabilized Operations
Development Projects - Consolidated
7 South Linden - South San Francisco, CA		100%					543				-			$	176			$	135			$	311			$	573				Q1 2025				Q1 2028				Q1 2030
Total Development Projects - Consolidated							543				-				176				135				311			$	573
Land Held for Future Development - Consolidated
Other Projects - Various		100%					-				-				35				-				35
Total Development Pipeline - Consolidated							543				-			$	211			$	135			$	346

⁽¹⁾ For the third quarter of 2026, the Company’s cost includes $1.7 million of capitalized interest and $0.7 million of capitalized overhead.

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

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

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

Capital Expenditures - September 30, 2026 ⁽¹⁾

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

Revenue Generating Capital Expenditures (2)		Q3 ‘26				Trailing 4 Quarters
Same-property portfolio		$	18,924			$	59,142
Non-same-property portfolio			3,761				9,629
Total revenue generating capital expenditures		$	22,685			$	68,771
Number of same-property interior renovations			1,947				3,311
Number of total consolidated interior renovations			1,996				3,422

Non-Revenue Generating Capital Expenditures (3)		Q3 ‘26				Trailing 4 Quarters
Non-revenue generating capital expenditures		$	35,585			$	115,337
Average apartment homes in quarter			55,528				55,508
Capital expenditures per apartment home		$	641			$	2,078

⁽¹⁾ The Company incurred $0.2 million of capitalized interest, $4.7 million of capitalized overhead and less than $0.1 million of co-investment fees related to redevelopment in Q3 2026.

⁽²⁾ Represents revenue generating expenditures, such as full-scale redevelopments, interior unit turn renovations, enhanced amenities, certain sustainability initiatives that generate higher revenues or expense savings and accessory dwelling units.

⁽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

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

Co-investments and Preferred Equity Investments - September 30, 2026

(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 September 30, 2026				Nine Months Ended September 30, 2026
Operating and Other Unconsolidated Joint Ventures																														NOI
Wesco I, III, IV, V, VI (2) (3)		55%					5,547			$	1,992,287			$	1,251,116			$	62,358				3.6	%			3.8			$	28,127			$	88,631
BEX IV, 500 Folsom		50%					732				618,419				176,400				130,262				3.4	%			19.7				5,470				16,666
Other (4)		50%					718				269,312				191,476				113,125				3.8	%			16.3				6,065				18,008
Total Operating and Other Unconsolidated Joint Ventures							6,997			$	2,880,018			$	1,618,992			$	305,745				3.6	%			7.0			$	39,662			$	123,305
																														Essex Portion of NOI and Expenses
NOI																														$	21,791			$	67,557
Depreciation																															(12,611	)			(39,094	)
Interest expense and other, net																															(8,702	)			(25,105	)
Equity (loss) income from unconsolidated technology co-investments																															(33	)			16,154
Insurance reimbursements and other, net																															-				22
Gain on sale of co-investment communities																															5,758				14,989
Net income from operating and other co-investments																														$	6,203			$	34,523
																						Weighted Average Preferred Return				Weighted Average Expected Term (in Years)				Income from Preferred Equity Investments
Income from preferred equity investments																														$	3,009			$	11,840
Income from early redemption of preferred equity investments																															-				179
Preferred Equity Investments (5)																		$	198,272				10.5	%			2.1			$	3,009			$	12,019
Total Co-investments																		$	504,017											$	9,212			$	46,542

⁽¹⁾ Represents the year-to-date annual weighted average borrowing rate.

⁽²⁾ As of September 30, 2026, the Company’s investments in Wesco I, Wesco III, and Wesco IV were classified as a liability of $105.3 million due to distributions received in excess of the Company’s investment.

⁽³⁾ Wesco III, IV and VI have in-place interest rate swaps totaling a gross notional amount of $624.3 million at an average all-in fixed rate of 2.7% which expire in December 2026 and March 2027. Year-to-date, these Wesco entities entered into replacement swaps which take effect at the existing swap maturities totaling a gross notional amount of $496.2 million at an average all-in fixed rate of 5.3% which expire in June 2029.

⁽⁴⁾ As of September 30, 2026, the Company’s investment in Expo was classified as a liability of $3.6 million due to distributions received in excess of the Company’s investment. The weighted average Essex ownership percentage excludes our investments in unconsolidated technology co-investments.

⁽⁵⁾ As of September 30, 2026, the Company is invested in 9 preferred equity investments, including three preferred equity investments held by Wesco VII, LLC.

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

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

Summary of Apartment Community Acquisitions and Dispositions Activity - Year to date as of September 30, 2026

(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			Average Monthly Rent
Neither Essex nor its unconsolidated joint ventures have acquired any apartment communities year to date as of September 30, 2026.
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)
Meridian at Midtown		San Jose, CA			218		2015		50%		JV		Jun-26		$	52,625		$	460
		Q2 2026			218										$	52,625		$	460
Collins on Pine		Seattle, WA			76		2013		100%		EPLP		Aug-26		$	30,000		$	375
Silver		San Jose, CA			268		2019		58%		JV		Aug-26			70,905			456
Marina City Club (2)		Marina Del Rey, CA			101		1971		100%		EPLP		Aug-26			11,000			N/A
		Q3 2026			445										$	111,905		$	429
		2026 Total			663										$	164,530		$	439

⁽¹⁾ Price per apartment home excludes value allocated to the retail component, as applicable.

⁽²⁾ The Company sold its interest in a 55-year-old, 101-unit apartment home community and adjacent marina subject to a ground lease for a total contract price of $11.0 million. Due to circumstances associated with the transaction, it has been excluded from the price per apartment home calculations.

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

S-14

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

Assumptions for 2026 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.

		Nine Months Ended				2026 Full-Year Guidance Range
		September 30, 2026 (1)				Low End				High End			Comments about 2026 Full-Year Guidance
Total NOI from Consolidated Communities		$	1,027,746			$	1,372,400			$	1,378,600		Includes a range of same-property NOI growth of 2.8% to 3.2%. Reflects investment activity through October
Management Fees			6,975				8,900				9,500
Interest Expense
Interest expense, before capitalized interest			(197,698	)			(267,000	)			(266,000	)	Includes new $275 million term loan and YTD investment activity
Interest capitalized			4,651				6,400				7,000
Net interest expense			(193,047	)			(260,600	)			(259,000	)
Recurring Income and Expenses
Interest and other income			6,785				7,900				8,500
FFO from co-investments			54,292				68,400				69,400		Reflects year-to-date investment and redemption activity
General and administrative			(46,889	)			(62,000	)			(64,000	)
Corporate-level property management expenses			(40,223	)			(53,400	)			(54,000	)
Non-controlling interest			(7,148	)			(9,900	)			(9,300	)
Total recurring income and expenses			(33,183	)			(49,000	)			(49,400	)
Non-Core Income and Expenses
Tax expense on unconsolidated co-investments			(2,758	)			(2,758	)			(2,758	)
Realized and unrealized gains on marketable securities, net			3,482				3,482				3,482
Provision for credit losses			222				222				222
Equity income from unconsolidated technology co-investments			16,154				16,154				16,154
Income from early redemption of preferred equity investments			179				179				179
General and administrative and other, net			(62,835	)			(62,835	)			(62,835	)
Insurance reimbursements and other, net			342				342				342
Total non-core income and expenses			(45,214	)			(45,214	)			(45,214	)
Funds from Operations (2)		$	763,277			$	1,026,486			$	1,034,486
Funds from Operations per diluted Share		$	11.47			$	15.42			$	15.54
% Change - Funds from Operations			-4.7	%			-3.5	%			-2.8	%
Core Funds from Operations (excludes non-core items)		$	808,491			$	1,071,700			$	1,079,700
Core Funds from Operations per diluted Share		$	12.15			$	16.10			$	16.22
% Change - Core Funds from Operations			1.6	%			1.0	%			1.8	%
EPS - Diluted		$	4.14			$	5.62			$	5.74
Weighted average shares outstanding - FFO calculation			66,548				66,550				66,550		Reflects YTD share repurchases and settlement of outstanding forward sale agreements

⁽¹⁾ All non-core items are excluded from the 2026 actuals and included in the non-core income and expense section of the FFO reconciliation.

⁽²⁾ 2026 guidance excludes inestimable projected gain/(loss) on sale of real estate and land, gain/(loss) on sale of marketable securities, gain/(loss) on early retirement of debt, 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

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

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.

						2026 Guidance Range (1)
		Nine Months
		Ended September 30,				4th Quarter 2026								Full-Year 2026
		2026				Low				High				Low				High
EPS - diluted		$	4.14			$	1.48			$	1.60			$	5.62			$	5.74
Conversion from GAAP share count			(0.13	)			(0.06	)			(0.06	)			(0.19	)			(0.19	)
Impairment Loss			0.16				-				-				0.16				0.16
Depreciation and amortization			7.52				2.48				2.48				10.00				10.00
Noncontrolling interest related to Operating Partnership units			0.14				0.05				0.05				0.19				0.19
Gain on sale of real estate and land			(0.36	)			-				-				(0.36	)			(0.36	)
FFO per share - diluted		$	11.47			$	3.95			$	4.07			$	15.42			$	15.54
Expensed acquisition and investment related costs			-				-				-				-				-
Tax expense on unconsolidated co-investments			0.04				-				-				0.04				0.04
Realized and unrealized gains on marketable securities, net			(0.05	)			-				-				(0.05	)			(0.05	)
Provision for credit losses			-				-				-				-				-
Equity income from unconsolidated technology co-investments			(0.24	)			-				-				(0.24	)			(0.24	)
Loss on early retirement of debt, net			-				-				-				-				-
Income from early redemption of preferred equity investments			-				-				-				-				-
General and administrative and other, net			0.94				-				-				0.94				0.94
Insurance reimbursements and other, net			(0.01	)			-				-				(0.01	)			(0.01	)
Core FFO per share - diluted		$	12.15			$	3.95			$	4.07			$	16.10			$	16.22

⁽¹⁾ 2026 guidance excludes inestimable projected gain/(loss) on sale of real estate and land, gain/(loss) on sale of marketable securities, gain/(loss) on early retirement of debt, 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

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0

MSA Level

 Data based on Essex Data Analytics forecasts and third-party projections.  Residential Supply: Total supply includes the Company’s estimate of multifamily (“MF”) deliveries of properties with 50+ units and excludes student, senior and 100% affordable housing communities. Multifamily estimates incorporate a methodological enhancement (“delay-adjusted supply”) to reflect the anticipated impact of continued construction delays in Essex markets. Single-family (“SF”) estimates are based on trailing single-family permits.                                         Residential Supply Forecast (1)         Residential Supply Forecast (1)           2026E     2027E  Market     Multifamily   Supply  Total MF/SF  Supply  Total Supply as a   % of Stock     Multifamily   Supply  Total MF/SF  Supply  Total Supply as a   % of Stock                       Los Angeles      6,300    12,100   0.3%   4,600    11,000   0.3%  Orange County      2,500    5,200   0.5%   3,000    5,700   0.5%  San Diego      4,900    7,700   0.6%   3,600    6,500   0.5%  Ventura      600    1,000   0.3%   200    600   0.2%  Southern California      14,300    26,000   0.4%   11,400    23,800   0.4%                             San Francisco      900    1,300   0.2%   800    1,200   0.2%  Oakland      400    2,700   0.3%   100    2,300   0.2%  San Jose      1,100    3,000   0.4%   1,200    3,000   0.4%  Northern California       2,400    7,000   0.3%   2,100    6,500   0.3%                             Seattle      4,900    9,300   0.7%   4,100    8,000   0.6%                             Total         21,600    42,300   0.4%   17,600    38,300   0.4%  ESSEX PROPERTY TRUST, INC.                                MSA Level Supply Forecast: 2026E - 2027E                                                        See Company’s Form 10-K and Form 10-Qs filed with the SEC for additional information  S-16 

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

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 September 30, 2026
Net income available to common stockholders		$	98,069
Adjustments:
Net income attributable to noncontrolling interest			5,666
Interest expense, net (1)			63,416
Depreciation and amortization			152,552
Income tax provision			30
Gain on sale of real estate and land			(6,781	)
Gain on sale of co-investment communities			(5,758	)
Impairment loss			10,709
Co-investment EBITDAre adjustments			21,007
EBITDAre			338,910
Realized and unrealized losses on marketable securities, net			508
Equity loss from unconsolidated technology co-investments			33
Tax benefit on unconsolidated technology co-investments			(493	)
General and administrative and other, net			1,504
Insurance reimbursements and other, net			(44	)
Adjusted EBITDAre		$	340,418

⁽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

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

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 all lease tradeouts, including the impact of leasing incentives. Prior to 2026, the rate growth was based on the change in similar term lease tradeouts, including the impact of leasing incentives, and all periods presented have been updated to conform with the current methodology.

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								Nine Months Ended
(Dollars in thousands)		September 30, 2026				September 30, 2025				September 30, 2026				September 30, 2025
Interest expense		$	64,755			$	64,660			$	197,155			$	192,654
Adjustments:
Total return swap income			(1,339	)			(1,329	)			(4,108	)			(3,600	)
Interest expense, net		$	63,416			$	63,331			$	193,047			$	189,054

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

S-17.2

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

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)		September 30, 2026
Total consolidated debt, net		$	6,605,814
Total debt from co-investments at pro rata share			885,457
Adjustments:
Consolidated unamortized premiums, discounts, and debt issuance costs			32,944
Pro rata co-investments unamortized premiums, discounts, and debt issuance costs			5,180
Consolidated cash and cash equivalents-unrestricted			(72,059	)
Pro rata co-investment cash and cash equivalents-unrestricted			(31,713	)
Marketable securities			(102,665	)
Net Indebtedness		$	7,322,958
Adjusted EBITDAre, annualized (1)		$	1,361,672
Other EBITDAre normalization adjustments, net, annualized (2)			(6,520	)
Adjusted EBITDAre, normalized and annualized		$	1,355,152
Net Indebtedness Divided by Adjusted EBITDAre, normalized and annualized			5.4

⁽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								Nine Months Ended
(Dollars in thousands)		September 30, 2026				September 30, 2025				September 30, 2026				September 30, 2025
Earnings from operations		$	156,760			$	210,399			$	421,326			$	747,180
Adjustments:
Corporate-level property management expenses			13,393				12,216				40,223				36,768
Depreciation and amortization			152,552				151,489				461,520				454,277
Management and other fees from affiliates			(2,344	)			(2,361	)			(6,975	)			(7,078	)
General and administrative			16,561				18,058				109,724				51,507
Expensed acquisition and investment related costs			-				25				-				25
Impairment loss			10,709				-				10,709				-
Gain on sale of real estate and land			(6,781	)			(62,320	)			(8,781	)			(299,524	)
NOI			340,850				327,506				1,027,746				983,155
Less: Non-same-property NOI			(27,662	)			(23,818	)			(85,396	)			(70,738	)
Same-Property NOI		$	313,188			$	303,688			$	942,350			$	912,417

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

S-17.3

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

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 December 12, 2025, filed by the Company as Exhibit 4.1 and Exhibit 4.2 to the Company’s Form 8-K, filed on December 12, 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								Nine Months Ended
(Dollars in millions)		September 30, 2026				September 30, 2025				September 30, 2026				September 30, 2025
Reported rental revenue (1)		$	450.0			$	436.7			$	1,337.4			$	1,300.0
Straight-line rent impact to rental revenue			(0.1	)			0.3				(0.5	)			0.2
GAAP rental revenue		$	449.9			$	437.0			$	1,336.9			$	1,300.2
% change - reported rental revenue			3.0	%							2.9	%
% change - GAAP rental revenue			2.9	%							2.8	%

⁽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 September 30, 2026, annualized, is calculated by dividing Unencumbered NOI, annualized for the three months ended September 30, 2026 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 Q3 ‘26 (1)
NOI		$	1,363,400
Adjustments:
Pro forma NOI from real estate assets sold and/or acquired			(1,722	)
Other, net (2)			(4,722	)
Adjusted Total NOI			1,356,956
Less: Encumbered NOI			(92,321	)
Unencumbered NOI		$	1,264,635
Encumbered NOI		$	92,321
Unencumbered NOI			1,264,635
Adjusted Total NOI		$	1,356,956
Unencumbered NOI to Adjusted Total NOI			93	%

⁽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

Filing Exhibits & Attachments

5 documents

Press Releases

• EX-99.1 EXHIBIT 99.1 2.2 MB

Other Documents

• EX-101 XBRL TAXONOMY EXTENSION SCHEMA 4.2 KB
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