10-Q 1 ess-20220930.htm 10-Q ess-20220930
0000920522--12-312022Q3false3200009205222022-01-012022-09-300000920522ess:EssexPortfolioL.P.Member2022-01-012022-09-3000009205222022-10-25xbrli:shares00009205222022-09-30iso4217:USD00009205222021-12-31iso4217:USDxbrli:shares00009205222022-07-012022-09-3000009205222021-07-012021-09-3000009205222021-01-012021-09-300000920522us-gaap:CommonStockMember2022-06-300000920522us-gaap:AdditionalPaidInCapitalMember2022-06-300000920522us-gaap:AccumulatedDistributionsInExcessOfNetIncomeMember2022-06-300000920522us-gaap:AccumulatedOtherComprehensiveIncomeMember2022-06-300000920522us-gaap:NoncontrollingInterestMember2022-06-3000009205222022-06-300000920522us-gaap:AccumulatedDistributionsInExcessOfNetIncomeMember2022-07-012022-09-300000920522us-gaap:NoncontrollingInterestMember2022-07-012022-09-300000920522us-gaap:AccumulatedOtherComprehensiveIncomeMember2022-07-012022-09-300000920522us-gaap:CommonStockMember2022-07-012022-09-300000920522us-gaap:AdditionalPaidInCapitalMember2022-07-012022-09-300000920522us-gaap:CommonStockMember2022-09-300000920522us-gaap:AdditionalPaidInCapitalMember2022-09-300000920522us-gaap:AccumulatedDistributionsInExcessOfNetIncomeMember2022-09-300000920522us-gaap:AccumulatedOtherComprehensiveIncomeMember2022-09-300000920522us-gaap:NoncontrollingInterestMember2022-09-300000920522us-gaap:CommonStockMember2021-12-310000920522us-gaap:AdditionalPaidInCapitalMember2021-12-310000920522us-gaap:AccumulatedDistributionsInExcessOfNetIncomeMember2021-12-310000920522us-gaap:AccumulatedOtherComprehensiveIncomeMember2021-12-310000920522us-gaap:NoncontrollingInterestMember2021-12-310000920522us-gaap:AccumulatedDistributionsInExcessOfNetIncomeMember2022-01-012022-09-300000920522us-gaap:NoncontrollingInterestMember2022-01-012022-09-300000920522us-gaap:AccumulatedOtherComprehensiveIncomeMember2022-01-012022-09-300000920522us-gaap:CommonStockMember2022-01-012022-09-300000920522us-gaap:AdditionalPaidInCapitalMember2022-01-012022-09-300000920522us-gaap:CommonStockMember2021-06-300000920522us-gaap:AdditionalPaidInCapitalMember2021-06-300000920522us-gaap:AccumulatedDistributionsInExcessOfNetIncomeMember2021-06-300000920522us-gaap:AccumulatedOtherComprehensiveIncomeMember2021-06-300000920522us-gaap:NoncontrollingInterestMember2021-06-3000009205222021-06-300000920522us-gaap:AccumulatedDistributionsInExcessOfNetIncomeMember2021-07-012021-09-300000920522us-gaap:NoncontrollingInterestMember2021-07-012021-09-300000920522us-gaap:AccumulatedOtherComprehensiveIncomeMember2021-07-012021-09-300000920522us-gaap:CommonStockMember2021-07-012021-09-300000920522us-gaap:AdditionalPaidInCapitalMember2021-07-012021-09-300000920522us-gaap:CommonStockMember2021-09-300000920522us-gaap:AdditionalPaidInCapitalMember2021-09-300000920522us-gaap:AccumulatedDistributionsInExcessOfNetIncomeMember2021-09-300000920522us-gaap:AccumulatedOtherComprehensiveIncomeMember2021-09-300000920522us-gaap:NoncontrollingInterestMember2021-09-3000009205222021-09-300000920522us-gaap:CommonStockMember2020-12-310000920522us-gaap:AdditionalPaidInCapitalMember2020-12-310000920522us-gaap:AccumulatedDistributionsInExcessOfNetIncomeMember2020-12-310000920522us-gaap:AccumulatedOtherComprehensiveIncomeMember2020-12-310000920522us-gaap:NoncontrollingInterestMember2020-12-3100009205222020-12-310000920522us-gaap:AccumulatedDistributionsInExcessOfNetIncomeMember2021-01-012021-09-300000920522us-gaap:NoncontrollingInterestMember2021-01-012021-09-300000920522us-gaap:AccumulatedOtherComprehensiveIncomeMember2021-01-012021-09-300000920522us-gaap:CommonStockMember2021-01-012021-09-300000920522us-gaap:AdditionalPaidInCapitalMember2021-01-012021-09-300000920522ess:EssexPortfolioL.P.Member2022-09-300000920522ess:EssexPortfolioL.P.Member2021-12-310000920522us-gaap:GeneralPartnerMemberess:EssexPortfolioL.P.Member2022-09-300000920522us-gaap:GeneralPartnerMemberess:EssexPortfolioL.P.Member2021-12-310000920522ess:EssexPortfolioL.P.Memberus-gaap:CommonStockMember2022-09-300000920522ess:EssexPortfolioL.P.Memberus-gaap:CommonStockMember2021-12-310000920522us-gaap:LimitedPartnerMemberess:EssexPortfolioL.P.Member2022-09-300000920522us-gaap:LimitedPartnerMemberess:EssexPortfolioL.P.Member2021-12-310000920522ess:EssexPortfolioL.P.Member2022-07-012022-09-300000920522ess:EssexPortfolioL.P.Member2021-07-012021-09-300000920522ess:EssexPortfolioL.P.Member2021-01-012021-09-300000920522us-gaap:GeneralPartnerMemberess:CommonEquityMemberess:EssexPortfolioL.P.Member2022-06-300000920522ess:CommonEquityMemberus-gaap:LimitedPartnerMemberess:EssexPortfolioL.P.Member2022-06-300000920522ess:EssexPortfolioL.P.Memberus-gaap:AccumulatedOtherComprehensiveIncomeMember2022-06-300000920522us-gaap:NoncontrollingInterestMemberess:EssexPortfolioL.P.Member2022-06-300000920522ess:EssexPortfolioL.P.Member2022-06-300000920522us-gaap:GeneralPartnerMemberess:CommonEquityMemberess:EssexPortfolioL.P.Member2022-07-012022-09-300000920522ess:CommonEquityMemberus-gaap:LimitedPartnerMemberess:EssexPortfolioL.P.Member2022-07-012022-09-300000920522us-gaap:NoncontrollingInterestMemberess:EssexPortfolioL.P.Member2022-07-012022-09-300000920522ess:EssexPortfolioL.P.Memberus-gaap:AccumulatedOtherComprehensiveIncomeMember2022-07-012022-09-300000920522us-gaap:GeneralPartnerMemberess:CommonEquityMemberess:EssexPortfolioL.P.Member2022-09-300000920522ess:CommonEquityMemberus-gaap:LimitedPartnerMemberess:EssexPortfolioL.P.Member2022-09-300000920522ess:EssexPortfolioL.P.Memberus-gaap:AccumulatedOtherComprehensiveIncomeMember2022-09-300000920522us-gaap:NoncontrollingInterestMemberess:EssexPortfolioL.P.Member2022-09-300000920522us-gaap:GeneralPartnerMemberess:CommonEquityMemberess:EssexPortfolioL.P.Member2021-12-310000920522ess:CommonEquityMemberus-gaap:LimitedPartnerMemberess:EssexPortfolioL.P.Member2021-12-310000920522ess:EssexPortfolioL.P.Memberus-gaap:AccumulatedOtherComprehensiveIncomeMember2021-12-310000920522us-gaap:NoncontrollingInterestMemberess:EssexPortfolioL.P.Member2021-12-310000920522us-gaap:GeneralPartnerMemberess:CommonEquityMemberess:EssexPortfolioL.P.Member2022-01-012022-09-300000920522ess:CommonEquityMemberus-gaap:LimitedPartnerMemberess:EssexPortfolioL.P.Member2022-01-012022-09-300000920522us-gaap:NoncontrollingInterestMemberess:EssexPortfolioL.P.Member2022-01-012022-09-300000920522ess:EssexPortfolioL.P.Memberus-gaap:AccumulatedOtherComprehensiveIncomeMember2022-01-012022-09-300000920522us-gaap:GeneralPartnerMemberess:CommonEquityMemberess:EssexPortfolioL.P.Member2021-06-300000920522ess:CommonEquityMemberus-gaap:LimitedPartnerMemberess:EssexPortfolioL.P.Member2021-06-300000920522ess:EssexPortfolioL.P.Memberus-gaap:AccumulatedOtherComprehensiveIncomeMember2021-06-300000920522us-gaap:NoncontrollingInterestMemberess:EssexPortfolioL.P.Member2021-06-300000920522ess:EssexPortfolioL.P.Member2021-06-300000920522us-gaap:GeneralPartnerMemberess:CommonEquityMemberess:EssexPortfolioL.P.Member2021-07-012021-09-300000920522ess:CommonEquityMemberus-gaap:LimitedPartnerMemberess:EssexPortfolioL.P.Member2021-07-012021-09-300000920522us-gaap:NoncontrollingInterestMemberess:EssexPortfolioL.P.Member2021-07-012021-09-300000920522ess:EssexPortfolioL.P.Memberus-gaap:AccumulatedOtherComprehensiveIncomeMember2021-07-012021-09-300000920522us-gaap:GeneralPartnerMemberess:CommonEquityMemberess:EssexPortfolioL.P.Member2021-09-300000920522ess:CommonEquityMemberus-gaap:LimitedPartnerMemberess:EssexPortfolioL.P.Member2021-09-300000920522ess:EssexPortfolioL.P.Memberus-gaap:AccumulatedOtherComprehensiveIncomeMember2021-09-300000920522us-gaap:NoncontrollingInterestMemberess:EssexPortfolioL.P.Member2021-09-300000920522ess:EssexPortfolioL.P.Member2021-09-300000920522us-gaap:GeneralPartnerMemberess:CommonEquityMemberess:EssexPortfolioL.P.Member2020-12-310000920522ess:CommonEquityMemberus-gaap:LimitedPartnerMemberess:EssexPortfolioL.P.Member2020-12-310000920522ess:EssexPortfolioL.P.Memberus-gaap:AccumulatedOtherComprehensiveIncomeMember2020-12-310000920522us-gaap:NoncontrollingInterestMemberess:EssexPortfolioL.P.Member2020-12-310000920522ess:EssexPortfolioL.P.Member2020-12-310000920522us-gaap:GeneralPartnerMemberess:CommonEquityMemberess:EssexPortfolioL.P.Member2021-01-012021-09-300000920522ess:CommonEquityMemberus-gaap:LimitedPartnerMemberess:EssexPortfolioL.P.Member2021-01-012021-09-300000920522us-gaap:NoncontrollingInterestMemberess:EssexPortfolioL.P.Member2021-01-012021-09-300000920522ess:EssexPortfolioL.P.Memberus-gaap:AccumulatedOtherComprehensiveIncomeMember2021-01-012021-09-300000920522ess:OperatingPartnershipMember2022-07-012022-09-30xbrli:pure0000920522ess:OperatingPartnershipMember2022-01-012022-09-300000920522ess:OperatingPartnershipMember2021-01-012021-09-300000920522ess:OperatingPartnershipMember2021-07-012021-09-30ess:communityess:apartmentess:buildingess:project0000920522srt:MinimumMember2022-09-300000920522srt:MaximumMember2022-09-300000920522us-gaap:DebtSecuritiesMember2022-09-300000920522us-gaap:DebtSecuritiesMember2022-01-012022-09-300000920522us-gaap:CommonStockMember2022-09-300000920522us-gaap:CommonStockMember2022-01-012022-09-300000920522us-gaap:CorporateDebtSecuritiesMember2022-09-300000920522us-gaap:DebtSecuritiesMember2021-12-310000920522us-gaap:DebtSecuritiesMember2021-01-012021-12-310000920522us-gaap:CommonStockMember2021-12-310000920522us-gaap:CommonStockMember2021-01-012021-12-310000920522us-gaap:CorporateDebtSecuritiesMember2021-12-310000920522ess:InterestAndOtherIncomeExpenseMember2022-07-012022-09-300000920522ess:InterestAndOtherIncomeExpenseMember2022-01-012022-09-300000920522ess:InterestAndOtherIncomeExpenseMember2021-07-012021-09-300000920522ess:InterestAndOtherIncomeExpenseMember2021-01-012021-09-30ess:partnershipess:investment0000920522us-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember2021-12-310000920522us-gaap:AccumulatedNetUnrealizedInvestmentGainLossMember2021-12-310000920522us-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember2022-01-012022-09-300000920522us-gaap:AccumulatedNetUnrealizedInvestmentGainLossMember2022-01-012022-09-300000920522us-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember2022-09-300000920522us-gaap:AccumulatedNetUnrealizedInvestmentGainLossMember2022-09-300000920522ess:EssexPortfolioL.P.Memberus-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember2021-12-310000920522us-gaap:AccumulatedNetUnrealizedInvestmentGainLossMemberess:EssexPortfolioL.P.Member2021-12-310000920522us-gaap:AccumulatedOtherComprehensiveIncomeMemberess:EssexPortfolioL.P.Member2021-12-310000920522ess:EssexPortfolioL.P.Memberus-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember2022-01-012022-09-300000920522us-gaap:AccumulatedNetUnrealizedInvestmentGainLossMemberess:EssexPortfolioL.P.Member2022-01-012022-09-300000920522us-gaap:AccumulatedOtherComprehensiveIncomeMemberess:EssexPortfolioL.P.Member2022-01-012022-09-300000920522ess:EssexPortfolioL.P.Memberus-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember2022-09-300000920522us-gaap:AccumulatedNetUnrealizedInvestmentGainLossMemberess:EssexPortfolioL.P.Member2022-09-300000920522us-gaap:AccumulatedOtherComprehensiveIncomeMemberess:EssexPortfolioL.P.Member2022-09-300000920522ess:JointVenturePartnerEssexJVLLCMemberess:RegencyPalmCourtAndWindsorCourtMember2022-07-012022-07-310000920522ess:JointVenturePartnerEssexJVLLCMemberess:RegencyPalmCourtAndWindsorCourtMember2022-07-3100009205222022-07-012022-07-310000920522ess:WescoVIMemberess:VelaOnOxMembersrt:ApartmentBuildingMember2022-01-012022-01-310000920522ess:WescoVIMemberess:VelaOnOxMember2022-01-012022-01-310000920522ess:RelatedPartyBridgeLoanOnPropertyAcquiredByWescoVIMembersrt:AffiliatedEntityMemberess:VelaOnOxMember2022-01-310000920522ess:RelatedPartyBridgeLoanOnPropertyAcquiredByWescoVIMembersrt:AffiliatedEntityMemberess:VelaOnOxMember2022-01-012022-01-310000920522ess:WescoIVMember2022-04-012022-04-300000920522ess:PreferredEquityInvestmentPropertyInNorthernCaliforniaMember2022-09-012022-09-300000920522ess:PreferredEquityInvestmentPropertyInNorthernCaliforniaMember2022-06-012022-06-300000920522ess:PreferredEquityInvestmentPropertyInSouthernCaliforniaAndWashingtonMember2022-01-012022-03-310000920522ess:JointVentureThatHoldsPropertyInCaliforniaMember2022-01-012022-03-310000920522srt:AffiliatedEntityMemberess:LoanOnMultifamilyCommunityInWashingtonMember2022-08-310000920522srt:AffiliatedEntityMemberess:LoanOnMultifamilyCommunityInWashingtonMember2022-08-012022-08-310000920522ess:RelatedPartyBridgeLoanOnPropertyInVistaCAMember2022-01-012022-01-310000920522srt:AffiliatedEntityMemberess:RelatedPartyBridgeLoanOnPropertyAcquiredByBEXIIMember2021-11-300000920522srt:AffiliatedEntityMemberess:RelatedPartyBridgeLoanOnPropertyAcquiredByBEXIIMember2021-11-012021-11-3000009205222022-04-012022-06-300000920522ess:StockRepurchasePlanSeptember2022Member2022-06-300000920522ess:StockRepurchasePlanDecember2015Member2022-07-012022-09-300000920522ess:StockRepurchasePlanSeptember2022Member2022-07-012022-09-300000920522ess:StockRepurchasePlanMember2022-07-012022-09-300000920522ess:StockRepurchasePlanMember2022-09-300000920522us-gaap:SubsequentEventMemberess:NotesReceivableMezzanineLoansMember2022-10-270000920522us-gaap:SubsequentEventMemberess:NotesReceivableMezzanineLoansMember2022-10-012022-10-270000920522us-gaap:LoansPayableMemberus-gaap:SubsequentEventMember2022-10-220000920522us-gaap:SubsequentEventMemberus-gaap:SecuredOvernightFinancingRateSofrOvernightIndexSwapRateMember2022-10-012022-10-270000920522ess:TermLoanMemberus-gaap:SubsequentEventMember2022-10-220000920522ess:TermLoanMemberus-gaap:SubsequentEventMember2022-10-012022-10-270000920522ess:RentalMember2022-07-012022-09-300000920522ess:RentalMember2021-07-012021-09-300000920522ess:RentalMember2022-01-012022-09-300000920522ess:RentalMember2021-01-012021-09-300000920522ess:OtherPropertyLeasingRevenueMember2022-07-012022-09-300000920522ess:OtherPropertyLeasingRevenueMember2021-07-012021-09-300000920522ess:OtherPropertyLeasingRevenueMember2022-01-012022-09-300000920522ess:OtherPropertyLeasingRevenueMember2021-01-012021-09-300000920522us-gaap:OperatingSegmentsMemberess:RentalAndOtherPropertyRevenuesMemberess:SouthernCaliforniaMember2022-07-012022-09-300000920522us-gaap:OperatingSegmentsMemberess:RentalAndOtherPropertyRevenuesMemberess:SouthernCaliforniaMember2021-07-012021-09-300000920522us-gaap:OperatingSegmentsMemberess:RentalAndOtherPropertyRevenuesMemberess:SouthernCaliforniaMember2022-01-012022-09-300000920522us-gaap:OperatingSegmentsMemberess:RentalAndOtherPropertyRevenuesMemberess:SouthernCaliforniaMember2021-01-012021-09-300000920522us-gaap:OperatingSegmentsMemberess:RentalAndOtherPropertyRevenuesMemberess:NorthernCaliforniaMember2022-07-012022-09-300000920522us-gaap:OperatingSegmentsMemberess:RentalAndOtherPropertyRevenuesMemberess:NorthernCaliforniaMember2021-07-012021-09-300000920522us-gaap:OperatingSegmentsMemberess:RentalAndOtherPropertyRevenuesMemberess:NorthernCaliforniaMember2022-01-012022-09-300000920522us-gaap:OperatingSegmentsMemberess:RentalAndOtherPropertyRevenuesMemberess:NorthernCaliforniaMember2021-01-012021-09-300000920522us-gaap:OperatingSegmentsMemberess:RentalAndOtherPropertyRevenuesMemberess:SeattleMetroMember2022-07-012022-09-300000920522us-gaap:OperatingSegmentsMemberess:RentalAndOtherPropertyRevenuesMemberess:SeattleMetroMember2021-07-012021-09-300000920522us-gaap:OperatingSegmentsMemberess:RentalAndOtherPropertyRevenuesMemberess:SeattleMetroMember2022-01-012022-09-300000920522us-gaap:OperatingSegmentsMemberess:RentalAndOtherPropertyRevenuesMemberess:SeattleMetroMember2021-01-012021-09-300000920522ess:RentalAndOtherPropertyRevenuesMemberus-gaap:CorporateNonSegmentMember2022-07-012022-09-300000920522ess:RentalAndOtherPropertyRevenuesMemberus-gaap:CorporateNonSegmentMember2021-07-012021-09-300000920522ess:RentalAndOtherPropertyRevenuesMemberus-gaap:CorporateNonSegmentMember2022-01-012022-09-300000920522ess:RentalAndOtherPropertyRevenuesMemberus-gaap:CorporateNonSegmentMember2021-01-012021-09-300000920522ess:RentalAndOtherPropertyRevenuesMember2022-07-012022-09-300000920522ess:RentalAndOtherPropertyRevenuesMember2021-07-012021-09-300000920522ess:RentalAndOtherPropertyRevenuesMember2022-01-012022-09-300000920522ess:RentalAndOtherPropertyRevenuesMember2021-01-012021-09-300000920522ess:RentalAndOtherPropertyRevenuesMemberess:RealEstatePropertySamePropertyMember2022-07-012022-09-300000920522ess:RentalAndOtherPropertyRevenuesMemberess:RealEstatePropertySamePropertyMember2021-07-012021-09-300000920522ess:RentalAndOtherPropertyRevenuesMemberess:RealEstatePropertySamePropertyMember2022-01-012022-09-300000920522ess:RentalAndOtherPropertyRevenuesMemberess:RealEstatePropertySamePropertyMember2021-01-012021-09-300000920522ess:RealEstatePropertyAcquiredMemberess:RentalAndOtherPropertyRevenuesMember2022-07-012022-09-300000920522ess:RealEstatePropertyAcquiredMemberess:RentalAndOtherPropertyRevenuesMember2021-07-012021-09-300000920522ess:RealEstatePropertyAcquiredMemberess:RentalAndOtherPropertyRevenuesMember2022-01-012022-09-300000920522ess:RealEstatePropertyAcquiredMemberess:RentalAndOtherPropertyRevenuesMember2021-01-012021-09-300000920522ess:RentalAndOtherPropertyRevenuesMemberess:RealEstatePropertyDevelopmentMember2022-07-012022-09-300000920522ess:RentalAndOtherPropertyRevenuesMemberess:RealEstatePropertyDevelopmentMember2021-07-012021-09-300000920522ess:RentalAndOtherPropertyRevenuesMemberess:RealEstatePropertyDevelopmentMember2022-01-012022-09-300000920522ess:RentalAndOtherPropertyRevenuesMemberess:RealEstatePropertyDevelopmentMember2021-01-012021-09-300000920522ess:RentalAndOtherPropertyRevenuesMemberess:RealEstatePropertyRedevelopmentMember2022-07-012022-09-300000920522ess:RentalAndOtherPropertyRevenuesMemberess:RealEstatePropertyRedevelopmentMember2021-07-012021-09-300000920522ess:RentalAndOtherPropertyRevenuesMemberess:RealEstatePropertyRedevelopmentMember2022-01-012022-09-300000920522ess:RentalAndOtherPropertyRevenuesMemberess:RealEstatePropertyRedevelopmentMember2021-01-012021-09-300000920522ess:RentalAndOtherPropertyRevenuesMemberess:RealEstatePropertyNonResidentialOtherNetMember2022-07-012022-09-300000920522ess:RentalAndOtherPropertyRevenuesMemberess:RealEstatePropertyNonResidentialOtherNetMember2021-07-012021-09-300000920522ess:RentalAndOtherPropertyRevenuesMemberess:RealEstatePropertyNonResidentialOtherNetMember2022-01-012022-09-300000920522ess:RentalAndOtherPropertyRevenuesMemberess:RealEstatePropertyNonResidentialOtherNetMember2021-01-012021-09-300000920522ess:RentalAndOtherPropertyRevenuesMemberess:StraightLineRentConcessionMember2022-07-012022-09-300000920522ess:RentalAndOtherPropertyRevenuesMemberess:StraightLineRentConcessionMember2021-07-012021-09-300000920522ess:RentalAndOtherPropertyRevenuesMemberess:StraightLineRentConcessionMember2022-01-012022-09-300000920522ess:RentalAndOtherPropertyRevenuesMemberess:StraightLineRentConcessionMember2021-01-012021-09-300000920522ess:RentalAndOtherPropertyRevenuesMemberess:RealEstatePropertyNonResidentialOtherNetMember2022-09-3000009205222022-10-012022-09-3000009205222023-01-012022-09-300000920522ess:WescoIWescoIIIWescoIVWescoVAndWescoVIMember2022-01-012022-09-300000920522ess:WescoIWescoIIIWescoIVWescoVAndWescoVIMember2022-09-300000920522ess:WescoIWescoIIIWescoIVWescoVAndWescoVIMember2021-12-310000920522ess:MembershipInterestInBEXAEWBEXIIBEXIVAnd500FolsomMember2022-01-012022-09-300000920522ess:MembershipInterestInBEXAEWBEXIIBEXIVAnd500FolsomMember2022-09-300000920522ess:MembershipInterestInBEXAEWBEXIIBEXIVAnd500FolsomMember2021-12-310000920522ess:MembershipInterestInALimitedLiabilityCompanyThatOwnsAndIsDevelopingExpoAndCountryTowersMember2022-01-012022-09-300000920522ess:MembershipInterestInALimitedLiabilityCompanyThatOwnsAndIsDevelopingExpoAndCountryTowersMember2022-09-300000920522ess:MembershipInterestInALimitedLiabilityCompanyThatOwnsAndIsDevelopingExpoAndCountryTowersMember2021-12-310000920522ess:TotalOperatingCoInvestmentsMember2022-09-300000920522ess:TotalOperatingCoInvestmentsMember2021-12-310000920522ess:TotalDevelopmentCoInvestmentsMember2022-01-012022-09-300000920522ess:TotalDevelopmentCoInvestmentsMember2022-09-300000920522ess:TotalDevelopmentCoInvestmentsMember2021-12-310000920522us-gaap:InvestmentsInMajorityOwnedSubsidiariesMemberess:TotalPreferredInterestInvestmentsMember2022-09-300000920522us-gaap:InvestmentsInMajorityOwnedSubsidiariesMemberess:TotalPreferredInterestInvestmentsMember2021-12-310000920522ess:TotalPreferredInterestInvestmentsMember2022-09-300000920522ess:TotalPreferredInterestInvestmentsMember2021-12-310000920522ess:WescoIWescoIIIAndWescoIVMember2022-09-300000920522us-gaap:EquityMethodInvestmentNonconsolidatedInvesteeOrGroupOfInvesteesMember2022-09-300000920522us-gaap:EquityMethodInvestmentNonconsolidatedInvesteeOrGroupOfInvesteesMember2021-12-310000920522us-gaap:EquityMethodInvestmentNonconsolidatedInvesteeOrGroupOfInvesteesMember2022-07-012022-09-300000920522us-gaap:EquityMethodInvestmentNonconsolidatedInvesteeOrGroupOfInvesteesMember2021-07-012021-09-300000920522us-gaap:EquityMethodInvestmentNonconsolidatedInvesteeOrGroupOfInvesteesMember2022-01-012022-09-300000920522us-gaap:EquityMethodInvestmentNonconsolidatedInvesteeOrGroupOfInvesteesMember2021-01-012021-09-300000920522ess:TotalCoInvestmentMembersrt:AffiliatedEntityMember2022-07-012022-09-300000920522ess:TotalCoInvestmentMembersrt:AffiliatedEntityMember2021-07-012021-09-300000920522ess:TotalCoInvestmentMembersrt:AffiliatedEntityMember2022-01-012022-09-300000920522ess:TotalCoInvestmentMembersrt:AffiliatedEntityMember2021-01-012021-09-300000920522ess:SecuredNoteReceivableDueFebruary2023Member2022-01-012022-09-300000920522ess:SecuredNoteReceivableDueFebruary2023Member2021-01-012021-12-310000920522ess:SecuredNoteReceivableDueFebruary2023Member2022-09-300000920522ess:SecuredNoteReceivableDueFebruary2023Member2021-12-310000920522ess:SecuredNoteReceivable900InterestRateDueDecember2023Member2022-01-012022-09-300000920522ess:SecuredNoteReceivable900InterestRateDueDecember2023Member2022-09-300000920522ess:SecuredNoteReceivable900InterestRateDueDecember2023Member2021-12-310000920522ess:SecuredNoteReceivable1150InterestRateDueNovember2024Member2022-01-012022-09-300000920522ess:SecuredNoteReceivable1150InterestRateDueNovember2024Member2022-09-300000920522ess:SecuredNoteReceivable1150InterestRateDueNovember2024Member2021-12-310000920522ess:RelatedPartySecuredNoteReceivable215InterestRateDueDecember2021Member2022-01-012022-09-300000920522ess:RelatedPartySecuredNoteReceivable215InterestRateDueDecember2021Member2022-09-300000920522ess:RelatedPartySecuredNoteReceivable215InterestRateDueDecember2021Member2021-12-310000920522ess:SecuredNoteReceivable230InterestRateDueApril2022Member2022-01-012022-09-300000920522ess:SecuredNoteReceivable230InterestRateDueApril2022Member2022-09-300000920522ess:SecuredNoteReceivable230InterestRateDueApril2022Member2021-12-310000920522ess:SecuredNoteReceivable1100InterestRateDueOctober2025Member2022-01-012022-09-300000920522ess:SecuredNoteReceivable1100InterestRateDueOctober2025Member2022-09-300000920522ess:SecuredNoteReceivable1100InterestRateDueOctober2025Member2021-12-310000920522ess:SecuredNoteReceivable236InterestRateDueFebruary2022Member2022-01-012022-09-300000920522ess:SecuredNoteReceivable236InterestRateDueFebruary2022Member2022-09-300000920522ess:SecuredNoteReceivable236InterestRateDueFebruary2022Member2021-12-310000920522ess:SecuredNoteReceivable236InterestRateDueFebruary20221Member2022-01-012022-09-300000920522ess:SecuredNoteReceivable236InterestRateDueFebruary20221Member2022-09-300000920522ess:SecuredNoteReceivable236InterestRateDueFebruary20221Member2021-12-310000920522ess:SecuredNoteReceivable1200InterestRateDueAugust2024Member2022-01-012022-09-300000920522ess:SecuredNoteReceivable1200InterestRateDueAugust2024Member2022-09-300000920522ess:SecuredNoteReceivable1200InterestRateDueAugust2024Member2021-12-310000920522us-gaap:NotesReceivableMember2022-09-300000920522us-gaap:NotesReceivableMember2021-12-310000920522ess:StraightLineRentReceivableMember2022-09-300000920522ess:StraightLineRentReceivableMember2021-12-310000920522ess:OtherReceivablesMember2022-09-300000920522ess:OtherReceivablesMember2021-12-310000920522ess:RelatedPartySecuredNoteReceivable215InterestRateDueDecember2021Member2022-01-012022-01-310000920522ess:SecuredNoteReceivable230InterestRateDueApril2022Member2022-01-012022-01-310000920522ess:SecuredNoteReceivable236InterestRateDueFebruary2022Member2022-01-012022-01-310000920522ess:SecuredNoteReceivable236InterestRateDueFebruary20221Member2022-01-012022-01-310000920522ess:NotesReceivableMezzanineLoansMember2021-12-310000920522ess:NotesReceivableBridgeLoanMember2021-12-310000920522ess:NotesReceivableMezzanineAndBridgeLoansMember2021-12-310000920522ess:NotesReceivableMezzanineLoansMember2022-01-012022-09-300000920522ess:NotesReceivableBridgeLoanMember2022-01-012022-09-300000920522ess:NotesReceivableMezzanineAndBridgeLoansMember2022-01-012022-09-300000920522ess:NotesReceivableMezzanineLoansMember2022-09-300000920522ess:NotesReceivableBridgeLoanMember2022-09-300000920522ess:NotesReceivableMezzanineAndBridgeLoansMember2022-09-300000920522srt:AffiliatedEntityMember2022-07-012022-09-300000920522srt:AffiliatedEntityMember2021-07-012021-09-300000920522srt:AffiliatedEntityMember2022-01-012022-09-300000920522srt:AffiliatedEntityMember2021-01-012021-09-300000920522ess:MarcusandMillichapCompanyMembersrt:BoardOfDirectorsChairmanMember2022-07-012022-09-300000920522ess:MarcusandMillichapCompanyMembersrt:BoardOfDirectorsChairmanMember2022-01-012022-09-300000920522ess:MarcusandMillichapCompanyMembersrt:BoardOfDirectorsChairmanMember2021-01-012021-09-300000920522ess:MarcusandMillichapCompanyMembersrt:BoardOfDirectorsChairmanMember2021-07-012021-09-300000920522srt:AffiliatedEntityMember2022-08-310000920522srt:AffiliatedEntityMember2022-08-012022-08-310000920522srt:AffiliatedEntityMemberess:RelatedPartyBridgeLoanOnPropertyAcquiredByBEXIIMember2022-02-280000920522srt:AffiliatedEntityMemberess:RelatedPartyBridgeLoanOnPropertyAcquiredByBEXIIMember2022-02-012022-02-280000920522srt:AffiliatedEntityMemberess:RelatedPartyBridgeLoanOnPropertyInVistaCAMember2021-11-300000920522srt:AffiliatedEntityMemberess:RelatedPartyBridgeLoanOnPropertyInVistaCAMember2021-11-012021-11-300000920522ess:RelatedPartyBridgeLoanOnPropertyAcquiredByWescoVIMembersrt:AffiliatedEntityMemberess:TheRexfordMember2021-11-300000920522ess:RelatedPartyBridgeLoanOnPropertyAcquiredByWescoVIMembersrt:AffiliatedEntityMemberess:TheRexfordMember2021-11-012021-11-300000920522ess:MonterraInMillCreekMemberess:RelatedPartyBridgeLoanOnPropertyAcquiredByWescoVIMembersrt:AffiliatedEntityMember2021-10-310000920522ess:MonterraInMillCreekMemberess:RelatedPartyBridgeLoanOnPropertyAcquiredByWescoVIMembersrt:AffiliatedEntityMember2021-10-012021-10-310000920522ess:RelatedPartyBridgeLoanOnPropertyAcquiredByWescoVIMembersrt:AffiliatedEntityMemberess:MarthaLakeApartmentsMember2021-09-300000920522ess:RelatedPartyBridgeLoanOnPropertyAcquiredByWescoVIMembersrt:AffiliatedEntityMemberess:MarthaLakeApartmentsMember2021-09-012021-09-300000920522ess:RelatedPartyBridgeLoansOnPropertyAcquiredByWescoIMembersrt:AffiliatedEntityMember2021-03-310000920522ess:RelatedPartyBridgeLoansOnPropertyAcquiredByWescoIMembersrt:AffiliatedEntityMember2021-03-012021-03-310000920522ess:MarcusandMillichapCompanyMemberess:BrioWalnutCreekCaliforniaMembersrt:BoardOfDirectorsChairmanMember2019-06-012019-06-300000920522srt:BoardOfDirectorsChairmanMemberess:MultifamilyDevelopmentInMountainViewCAMember2019-02-012019-02-280000920522srt:BoardOfDirectorsChairmanMemberess:MultifamilyDevelopmentInMountainViewCAMember2022-01-012022-09-300000920522srt:BoardOfDirectorsChairmanMemberess:HomeCommunityDevelopmentinBurlingameCaliforniaMember2018-10-012018-10-310000920522srt:BoardOfDirectorsChairmanMemberess:HomeCommunityDevelopmentinBurlingameCaliforniaMember2021-10-012021-12-310000920522ess:MarcusandMillichapCompanyMembersrt:BoardOfDirectorsChairmanMemberess:ApartmentHomeCommunityInVenturaCaliforniaMember2018-05-012018-05-310000920522ess:ApartmentHomeCommunityInVenturaCaliforniaMember2021-11-012021-11-300000920522ess:MarcusandMillichapCompanyMembersrt:BoardOfDirectorsChairmanMemberess:ApartmentHomeCommunityInVenturaCaliforniaMember2018-05-012022-06-300000920522ess:MarcusandMillichapCompanyMembersrt:BoardOfDirectorsChairmanMemberess:ApartmentHomeCommunityInVenturaCaliforniaMember2022-01-012022-09-300000920522ess:MembershipInterestInSageAtCupertinoMember2017-03-310000920522ess:MembershipInterestInSageAtCupertinoMember2017-03-012017-03-31ess:unit0000920522srt:AffiliatedEntityMember2022-09-300000920522srt:AffiliatedEntityMember2021-12-310000920522us-gaap:LineOfCreditMember2022-09-300000920522us-gaap:LineOfCreditMember2021-12-310000920522ess:MortgageNotesMember2022-09-300000920522ess:MortgageNotesMember2021-12-310000920522ess:MortgageNotesMember2022-01-012022-09-300000920522ess:FixedRatePublicOfferingBondMember2022-09-300000920522ess:FixedRatePublicOfferingBondMember2021-12-310000920522us-gaap:UnsecuredDebtMember2022-09-300000920522us-gaap:UnsecuredDebtMember2021-12-310000920522us-gaap:LineOfCreditMember2022-01-012022-09-30ess:instrument0000920522us-gaap:LineOfCreditMemberus-gaap:SecuredOvernightFinancingRateSofrOvernightIndexSwapRateMember2022-01-012022-09-30ess:extension0000920522ess:LineOfCreditWorkingCapitalMemberus-gaap:LineOfCreditMember2022-09-300000920522ess:LineOfCreditWorkingCapitalMemberus-gaap:LineOfCreditMemberus-gaap:SecuredOvernightFinancingRateSofrOvernightIndexSwapRateMember2022-01-012022-09-30ess:segment0000920522us-gaap:OperatingSegmentsMemberess:SouthernCaliforniaMember2022-07-012022-09-300000920522us-gaap:OperatingSegmentsMemberess:SouthernCaliforniaMember2021-07-012021-09-300000920522us-gaap:OperatingSegmentsMemberess:SouthernCaliforniaMember2022-01-012022-09-300000920522us-gaap:OperatingSegmentsMemberess:SouthernCaliforniaMember2021-01-012021-09-300000920522us-gaap:OperatingSegmentsMemberess:NorthernCaliforniaMember2022-07-012022-09-300000920522us-gaap:OperatingSegmentsMemberess:NorthernCaliforniaMember2021-07-012021-09-300000920522us-gaap:OperatingSegmentsMemberess:NorthernCaliforniaMember2022-01-012022-09-300000920522us-gaap:OperatingSegmentsMemberess:NorthernCaliforniaMember2021-01-012021-09-300000920522us-gaap:OperatingSegmentsMemberess:SeattleMetroMember2022-07-012022-09-300000920522us-gaap:OperatingSegmentsMemberess:SeattleMetroMember2021-07-012021-09-300000920522us-gaap:OperatingSegmentsMemberess:SeattleMetroMember2022-01-012022-09-300000920522us-gaap:OperatingSegmentsMemberess:SeattleMetroMember2021-01-012021-09-300000920522us-gaap:CorporateNonSegmentMember2022-07-012022-09-300000920522us-gaap:CorporateNonSegmentMember2021-07-012021-09-300000920522us-gaap:CorporateNonSegmentMember2022-01-012022-09-300000920522us-gaap:CorporateNonSegmentMember2021-01-012021-09-300000920522ess:ManagementAndOtherFeesFromAffiliatesIncomeMember2022-07-012022-09-300000920522ess:ManagementAndOtherFeesFromAffiliatesIncomeMember2021-07-012021-09-300000920522ess:ManagementAndOtherFeesFromAffiliatesIncomeMember2022-01-012022-09-300000920522ess:ManagementAndOtherFeesFromAffiliatesIncomeMember2021-01-012021-09-300000920522us-gaap:OperatingSegmentsMemberess:SouthernCaliforniaMember2022-09-300000920522us-gaap:OperatingSegmentsMemberess:SouthernCaliforniaMember2021-12-310000920522us-gaap:OperatingSegmentsMemberess:NorthernCaliforniaMember2022-09-300000920522us-gaap:OperatingSegmentsMemberess:NorthernCaliforniaMember2021-12-310000920522us-gaap:OperatingSegmentsMemberess:SeattleMetroMember2022-09-300000920522us-gaap:OperatingSegmentsMemberess:SeattleMetroMember2021-12-310000920522us-gaap:CorporateNonSegmentMember2022-09-300000920522us-gaap:CorporateNonSegmentMember2021-12-310000920522ess:ConvertibleLimitedPartnershipUnitsMember2022-07-012022-09-300000920522ess:ConvertibleLimitedPartnershipUnitsMember2021-07-012021-09-300000920522ess:ConvertibleLimitedPartnershipUnitsMember2022-01-012022-09-300000920522ess:ConvertibleLimitedPartnershipUnitsMember2021-01-012021-09-300000920522us-gaap:EmployeeStockOptionMember2022-07-012022-09-300000920522us-gaap:EmployeeStockOptionMember2021-07-012021-09-300000920522us-gaap:EmployeeStockOptionMember2022-01-012022-09-300000920522us-gaap:EmployeeStockOptionMember2021-01-012021-09-300000920522us-gaap:EmployeeStockOptionMemberess:EssexPortfolioL.P.Member2022-07-012022-09-300000920522us-gaap:EmployeeStockOptionMemberess:EssexPortfolioL.P.Member2021-07-012021-09-300000920522us-gaap:EmployeeStockOptionMemberess:EssexPortfolioL.P.Member2022-01-012022-09-300000920522us-gaap:EmployeeStockOptionMemberess:EssexPortfolioL.P.Member2021-01-012021-09-300000920522ess:TermLoanMemberus-gaap:InterestRateSwapMember2022-09-300000920522us-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:InterestRateSwapMember2022-09-300000920522us-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:InterestRateSwapMember2021-12-310000920522us-gaap:NondesignatedMemberess:MultifamilyHousingMortgageRevenueBondsMemberess:TotalReturnSwapCallableMember2022-09-300000920522us-gaap:NondesignatedMemberess:TotalReturnSwapCallableMember2022-09-300000920522ess:MultifamilyHousingMortgageRevenueBondsMember2022-09-300000920522us-gaap:NondesignatedMemberess:TotalReturnSwapCallableMember2021-12-310000920522ess:TotalReturnSwapCallableMember2022-07-012022-09-300000920522ess:TotalReturnSwapCallableMember2021-07-012021-09-300000920522ess:TotalReturnSwapCallableMember2022-01-012022-09-300000920522ess:TotalReturnSwapCallableMember2021-01-012021-09-30
                                
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
 
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended September 30, 2022

OR

TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from ________to _________

001-13106 (Essex Property Trust, Inc.)
333-44467-01 (Essex Portfolio, L.P.)
(Commission File Number)

ESSEX PROPERTY TRUST, INC.
ESSEX PORTFOLIO, L.P.
(Exact name of Registrant as Specified in its Charter)
Maryland77-0369576
(Essex Property Trust, Inc.)(Essex Property Trust, Inc.)
California77-0369575
 (Essex Portfolio, L.P.)(Essex Portfolio, L.P.)
(State or Other Jurisdiction of Incorporation or Organization)(I.R.S. Employer Identification Number)
1100 Park Place, Suite 200
San Mateo, California 94403
(Address of Principal Executive Offices, Including Zip Code)

(650) 655-7800
(Registrant's Telephone Number, Including Area Code)

Securities registered pursuant to Section 12(b) of the Act: 
Title of each classTrading
Symbol(s)
Name of each exchange on which registered
Common Stock, $.0001 par value (Essex Property Trust, Inc.)ESSNew York Stock Exchange

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.
Essex Property Trust, Inc.YesNoEssex Portfolio, L.P.YesNo

i


Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).
Essex Property Trust, Inc.YesNoEssex Portfolio, L.P.YesNo

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company or an emerging growth company. See the definitions of "large accelerated filer," "accelerated filer," "smaller reporting company" and "emerging growth company" in Rule 12b-2 of the Exchange Act. 

Essex Property Trust, Inc.:
Large accelerated filer
Accelerated filerNon-accelerated filerSmaller reporting company
Emerging growth company

Essex Portfolio, L.P.:
Large accelerated filerAccelerated filerNon-accelerated filer
Smaller reporting company
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.
Essex Property Trust, Inc.Essex Portfolio, L.P.

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).
Essex Property Trust, Inc.YesNoEssex Portfolio, L.P.YesNo
 
APPLICABLE ONLY TO CORPORATE ISSUERS:
Indicate the number of shares outstanding of each of the issuer's classes of common stock, as of the latest practicable date: 64,753,812 shares of Common Stock ($.0001 par value) of Essex Property Trust, Inc. were outstanding as of October 25, 2022.
ii


EXPLANATORY NOTE

This report combines the reports on Form 10-Q for the three and nine month periods ended September 30, 2022 of Essex Property Trust, Inc., a Maryland corporation, and Essex Portfolio, L.P., a Delaware limited partnership of which Essex Property Trust, Inc. is the sole general partner.

Unless stated otherwise or the context otherwise requires, references to the "Company," "we," "us" or "our" mean collectively Essex Property Trust, Inc. and those entities/subsidiaries owned or controlled by Essex Property Trust, Inc., including Essex Portfolio, L.P., and references to the "Operating Partnership" mean Essex Portfolio, L.P. and those entities/subsidiaries owned or controlled by Essex Portfolio, L.P. Unless stated otherwise or the context otherwise requires, references to "Essex" mean Essex Property Trust, Inc., not including any of its subsidiaries.

Essex operates as a self-administered and self-managed real estate investment trust ("REIT"), and is the sole general partner of the Operating Partnership. As the sole general partner of the Operating Partnership, Essex has exclusive control of the Operating Partnership's day-to-day management.

The Company is structured as an umbrella partnership REIT ("UPREIT") and Essex contributes all net proceeds from its various equity offerings to the Operating Partnership. In return for those contributions, Essex receives a number of Operating Partnership limited partnership units ("OP Units," and the holders of such OP Units, "Unitholders") equal to the number of shares of common stock it has issued in the equity offerings. Contributions of properties to the Company can be structured as tax-deferred transactions through the issuance of OP Units, which is one of the reasons why the Company is structured in the manner outlined above. Based on the terms of the Operating Partnership's partnership agreement, OP Units can be exchanged into Essex common stock on a one-for-one basis. The Company maintains a one-for-one relationship between the OP Units issued to Essex and shares of common stock.

The Company believes that combining the reports on Form 10-Q of Essex and the Operating Partnership into this single report provides the following benefits:

enhances investors' understanding of Essex and the Operating Partnership by enabling investors to view the business as a whole in the same manner as management views and operates the business;
eliminates duplicative disclosure and provides a more streamlined and readable presentation since a substantial portion of the disclosure applies to both Essex and the Operating Partnership; and
creates time and cost efficiencies through the preparation of one combined report instead of two separate reports.

Management operates Essex and the Operating Partnership as one business. The management of Essex consists of the same members as the management of the Operating Partnership.

All of the Company's property ownership, development, and related business operations are conducted through the Operating Partnership and Essex has no material assets, other than its investment in the Operating Partnership. Essex's primary function is acting as the general partner of the Operating Partnership. As general partner with control of the Operating Partnership, Essex consolidates the Operating Partnership for financial reporting purposes. Therefore, the assets and liabilities of Essex and the Operating Partnership are the same on their respective financial statements. Essex also issues equity from time to time and guarantees certain debt of the Operating Partnership, as disclosed in this report. The Operating Partnership holds substantially all of the assets of the Company, including the Company's ownership interests in its co-investments. The Operating Partnership conducts the operations of the business and is structured as a partnership with no publicly traded equity. Except for the net proceeds from equity offerings by the Company, which are contributed to the capital of the Operating Partnership in exchange for OP Units (on a one-for-one share of common stock per OP Unit basis), the Operating Partnership generates all remaining capital required by the Company's business. These sources of capital include the Operating Partnership's working capital, net cash provided by operating activities, borrowings under its revolving credit facilities, the issuance of secured and unsecured debt and equity securities and proceeds received from disposition of certain properties and co-investments.

The Company believes it is important to understand the few differences between Essex and the Operating Partnership in the context of how Essex and the Operating Partnership operate as a consolidated company. Stockholders' equity, partners' capital and noncontrolling interest are the main areas of difference between the condensed consolidated financial statements of Essex and those of the Operating Partnership. The limited partners of the Operating Partnership are accounted for as partners' capital in the Operating Partnership's condensed consolidated financial statements and as noncontrolling interest in Essex’s condensed consolidated financial statements. The noncontrolling interest in the Operating Partnership's condensed consolidated financial statements include the interest of unaffiliated partners in various consolidated partnerships and co-investment partners. The noncontrolling interest in Essex's condensed consolidated financial statements include (i) the same noncontrolling interest as
iii


presented in the Operating Partnership’s condensed consolidated financial statements and (ii) OP Unitholders. The differences between stockholders' equity and partners' capital result from differences in the equity issued at Essex and Operating Partnership levels.
 
To help investors understand the significant differences between Essex and the Operating Partnership, this report on Form 10-Q provides separate condensed consolidated financial statements for Essex and the Operating Partnership; a single set of consolidated notes to such financial statements that includes separate discussions of stockholders' equity or partners' capital, and earnings per share/unit, as applicable; and a combined Management's Discussion and Analysis of Financial Condition and Results of Operations.

This report on Form 10-Q also includes separate Part I, Item 4. Controls and Procedures sections and separate Exhibits 31 and 32 certifications for each of Essex and the Operating Partnership in order to establish that the requisite certifications have been made and that Essex and the Operating Partnership are compliant with Rule 13a-15 or Rule 15d-15 of the Securities Exchange Act of 1934 (the "Exchange Act") and 18 U.S.C. §1350.

In order to highlight the differences between Essex and the Operating Partnership, the separate sections in this report on Form 10-Q for Essex and the Operating Partnership specifically refer to Essex and the Operating Partnership. In the sections that combine disclosure of Essex and the Operating Partnership, this report refers to actions or holdings as being actions or holdings of the Company. Although the Operating Partnership is generally the entity that directly or indirectly enters into contracts and co-investments and holds assets and debt, reference to the Company is appropriate because the Company is one business and the Company operates that business through the Operating Partnership. The separate discussions of Essex and the Operating Partnership in this report should be read in conjunction with each other to understand the results of the Company on a consolidated basis and how management operates the Company.

The information furnished in the accompanying unaudited condensed consolidated balance sheets, statements of income and comprehensive income, equity, capital, and cash flows of the Company and the Operating Partnership reflect all adjustments which are, in the opinion of management, necessary for a fair presentation of the aforementioned condensed consolidated financial statements for the interim periods and are normal and recurring in nature, except as otherwise noted.

The accompanying unaudited condensed consolidated financial statements should be read in conjunction with the notes to such unaudited condensed consolidated financial statements and Management's Discussion and Analysis of Financial Condition and Results of Operations herein. Additionally, these unaudited condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements included in the Company's annual report on Form 10-K for the year ended December 31, 2021.
iv


ESSEX PROPERTY TRUST, INC.
ESSEX PORTFOLIO, L.P.
FORM 10-Q
TABLE OF CONTENTS

PART I. FINANCIAL INFORMATIONPage No.
Item 1.Condensed Consolidated Financial Statements of Essex Property Trust, Inc. (Unaudited)
 
 
 
 
 Condensed Consolidated Financial Statements of Essex Portfolio, L.P. (Unaudited) 
 
 
 
 
 
Item 2.
Item 3.
Item 4.
PART II. OTHER INFORMATION 
Item 1.
Item 1A.
Item 2.
Item 3.
Item 4.
Item 5.
Item 6.
1

Part I – Financial Information

Item 1. Condensed Consolidated Financial Statements
ESSEX PROPERTY TRUST, INC. AND SUBSIDIARIES
Condensed Consolidated Balance Sheets
(Unaudited)
(In thousands, except parenthetical and share amounts)
ASSETSSeptember 30, 2022December 31, 2021
Real estate:
Rental properties:
Land and land improvements$3,059,246 $3,032,678 
Buildings and improvements12,912,359 12,597,249 
 15,971,605 15,629,927 
Less: accumulated depreciation(5,047,880)(4,646,854)
 10,923,725 10,983,073 
Real estate under development23,752 111,562 
Co-investments1,145,345 1,177,802 
12,092,822 12,272,437 
Cash and cash equivalents-unrestricted42,711 48,420 
Cash and cash equivalents-restricted10,858 10,218 
Marketable securities, net of allowance for credit losses of zero as of both September 30, 2022 and December 31, 2021
141,699 191,829 
Notes and other receivables, net of allowance for credit losses of $0.8 million as of both September 30, 2022 and December 31, 2021 (includes related party receivables of $6.7 million and $176.9 million as of September 30, 2022 and December 31, 2021, respectively)
197,543 341,033 
Operating lease right-of-use assets66,531 68,972 
Prepaid expenses and other assets72,166 64,964 
Total assets$12,624,330 $12,997,873 
LIABILITIES AND EQUITY  
Unsecured debt, net$5,312,131 $5,307,196 
Mortgage notes payable, net635,389 638,957 
Lines of credit219,481 341,257 
Accounts payable and accrued liabilities222,328 180,751 
Construction payable25,729 29,136 
Dividends payable149,685 143,213 
Distributions in excess of investments in co-investments38,394 35,545 
Operating lease liabilities68,043 70,675 
Other liabilities42,715 39,969 
Total liabilities6,713,895 6,786,699 
Commitments and contingencies
Redeemable noncontrolling interest29,238 34,666 
Equity:  
Common stock; $0.0001 par value, 670,000,000 shares authorized; 64,753,312 and 65,248,393 shares issued and outstanding, respectively
6 7 
Additional paid-in capital6,775,872 6,915,981 
Distributions in excess of accumulated earnings(1,123,215)(916,833)
Accumulated other comprehensive income (loss), net50,769 (5,552)
Total stockholders' equity5,703,432 5,993,603 
Noncontrolling interest177,765 182,905 
Total equity5,881,197 6,176,508 
Total liabilities and equity$12,624,330 $12,997,873 
See accompanying notes to the unaudited condensed consolidated financial statements.
2

ESSEX PROPERTY TRUST, INC. AND SUBSIDIARIES
Condensed Consolidated Statements of Income and Comprehensive Income
(Unaudited)
(In thousands, except share and per share amounts)
 Three Months Ended September 30,Nine Months Ended September 30,
 2022202120222021
Revenues:
Rental and other property$406,862 $360,620 $1,183,318 $1,062,253 
Management and other fees from affiliates2,886 2,237 8,313 6,707 
 409,748 362,857 1,191,631 1,068,960 
Expenses:  
Property operating, excluding real estate taxes73,450 69,537 212,069 197,880 
Real estate taxes46,593 45,802 137,594 135,408 
Corporate-level property management expenses10,184 9,060 30,532 27,135 
Depreciation and amortization135,511 130,564 403,561 387,887 
General and administrative15,172 12,712 40,541 34,746 
Expensed acquisition and investment related costs230 108 248 164 
 281,140 267,783 824,545 783,220 
Gain on sale of real estate and land 42,897  142,993 
Earnings from operations128,608 137,971 367,086 428,733 
Interest expense(51,645)(50,019)(152,499)(152,639)
Total return swap income1,882 2,660 6,709 8,137 
Interest and other (loss) income(6,796)11,998 (31,571)48,756 
Equity income from co-investments10,985 25,433 23,756 60,692 
Deferred tax (expense) benefit on unconsolidated co-investments(1,755)(3,041)7,863 (5,391)
Loss on early retirement of debt, net(2) (2)(18,982)
Gain on remeasurement of co-investment17,423  17,423 2,260 
Net income98,700 125,002 238,765 371,566 
Net income attributable to noncontrolling interest(5,858)(6,612)(15,615)(19,886)
Net income available to common stockholders$92,842 $118,390 $223,150 $351,680 
Comprehensive income$124,797 $125,829 $297,053 $377,529 
Comprehensive income attributable to noncontrolling interest(6,740)(6,639)(17,582)(20,088)
Comprehensive income attributable to controlling interest$118,057 $119,190 $279,471 $357,441 
Per share data:  
Basic:  
Net income available to common stockholders$1.43 $1.82 $3.42 $5.41 
Weighted average number of shares outstanding during the period65,059,678 65,048,486 65,198,532 65,013,477 
Diluted:  
Net income available to common stockholders$1.43 $1.82 $3.42 $5.40 
Weighted average number of shares outstanding during the period65,067,790 65,147,781 65,225,767 65,075,174 

See accompanying notes to the unaudited condensed consolidated financial statements.
3

ESSEX PROPERTY TRUST, INC. AND SUBSIDIARIES
Condensed Consolidated Statements of Equity for the three and nine months ended September 30, 2022 and 2021
(Unaudited)
(In thousands)
 Common stockAdditional paid-in capitalDistributions
in excess of accumulated
earnings
Accumulated
other
comprehensive income, net
Noncontrolling interestTotal
Three months ended September 30, 2022SharesAmount
Balances at June 30, 202265,124 $7 $6,875,863 $(1,073,577)$25,554 $178,738 $6,006,585 
Net income— — — 92,842 — 5,858 98,700 
Change in fair value of derivatives and amortization of swap settlements— — — — 25,304 885 26,189 
Change in fair value of marketable debt securities, net— — — — (89)(3)(92)
Issuance of common stock under:      
Stock option and restricted stock plans, net1 — 155 — — — 155 
Sale of common stock, net— — (107)— — — (107)
Equity based compensation costs— — 1,891 — — 66 1,957 
Retirement of common stock, net(372)(1)(97,120)— — — (97,121)
Changes in the redemption value of redeemable noncontrolling interest— — 3,195 — — 532 3,727 
Distributions to noncontrolling interest— — — — — (7,748)(7,748)
Redemptions of noncontrolling interest— — (8,005)— — (563)(8,568)
Common stock dividends ($2.20 per share)
— — — (142,480)— — (142,480)
Balances at September 30, 202264,753 $6 $6,775,872 $(1,123,215)$50,769 $177,765 $5,881,197 


4

 Common stockAdditional paid-in capitalDistributions
in excess of accumulated
earnings
Accumulated
other
comprehensive income (loss), net
Noncontrolling interestTotal
Nine months ended September 30, 2022SharesAmount
Balances at December 31, 202165,248 $7 $6,915,981 $(916,833)$(5,552)$182,905 $6,176,508 
Net income— — — 223,150 — 15,615 238,765 
Change in fair value of derivatives and amortization of swap settlements— — — — 56,124 1,960 58,084 
Change in fair value of marketable debt securities, net— — — — 197 7 204 
Issuance of common stock under:
Stock option and restricted stock plans, net88 — 17,194 — — — 17,194 
Sale of common stock, net— — (314)— — — (314)
Equity based compensation costs— — 6,843 — — 239 7,082 
Retirement of common stock, net(591)(1)(157,950)— — — (157,951)
Changes in the redemption value of redeemable noncontrolling interest— — 4,246 — — 704 4,950 
Contributions from noncontrolling interest— — — — — 125 125 
Distributions to noncontrolling interest— — — — — (22,989)(22,989)
Redemptions of noncontrolling interest8 — (10,128)— — (801)(10,929)
Common stock dividends ($6.60 per share)
— — — (429,532)— — (429,532)
Balances at September 30, 202264,753 $6 $6,775,872 $(1,123,215)$50,769 $177,765 $5,881,197 
5

Common stockAdditional paid-in capitalDistributions
in excess of accumulated
earnings
Accumulated
other
comprehensive loss, net
Noncontrolling InterestTotal
Three Months Ended September 30, 2021SharesAmount
Balances at June 30, 202165,004 $7 $6,862,879 $(899,663)$(9,768)$183,248 $6,136,703 
Net income— — — 118,390 — 6,612 125,002 
Change in fair value of derivatives and amortization of swap settlements— — — — 704 24 728 
Change in fair value of marketable debt securities, net— — — — 96 3 99 
Issuance of common stock under:
Stock option and restricted stock plans, net68 — 15,572 — — — 15,572 
Sale of common stock, net— — (118)— — — (118)
Equity based compensation costs— — 1,573 — — 55 1,628 
Changes in the redemption value of redeemable noncontrolling interest— — 1,253 — — 420 1,673 
Distributions to noncontrolling interest— — — — — (7,257)(7,257)
Redemptions of noncontrolling interest9 — (5,651)— — (438)(6,089)
Common stock dividends ($2.09 per share)
— — — (136,042)— — (136,042)
Balances at September 30, 202165,081 $7 $6,875,508 $(917,315)$(8,968)$182,667 $6,131,899 

6

 Common stockAdditional paid-in capitalDistributions
in excess of accumulated
earnings
Accumulated
other
comprehensive loss, net
Noncontrolling InterestTotal
Nine months ended September 30, 2021SharesAmount
Balances at December 31, 202064,999 $6 $6,876,326 $(861,193)$(14,729)$182,782 $6,183,192 
Net income— — — 351,680 — 19,886 371,566 
Change in fair value of derivatives and amortization of swap settlements— — — — 5,417 190 5,607 
Change in fair value of marketable debt securities, net— — — — 344 12 356 
Issuance of common stock under:     
Stock option and restricted stock plans, net112 1 12,401 — — — 12,402 
Sale of common stock, net— — (202)— — — (202)
Equity based compensation costs— — 9,172 — — 323 9,495 
Retirement of common stock, net(40)— (9,172)— — — (9,172)
Changes in the redemption value of redeemable noncontrolling interest— — (5,499)— — 577 (4,922)
Contributions from noncontrolling interest— — — — — 1,900 1,900 
Distributions to noncontrolling interest— — — — — (22,114)(22,114)
Redemptions of noncontrolling interest10 — (7,518)— — (889)(8,407)
Common stock dividends ($6.27 per share)
— — — (407,802)— — (407,802)
Balances at September 30, 202165,081 $7 $6,875,508 $(917,315)$(8,968)$182,667 $6,131,899 

See accompanying notes to the unaudited condensed consolidated financial statements.
7

ESSEX PROPERTY TRUST, INC. AND SUBSIDIARIES
Condensed Consolidated Statements of Cash Flows
(Unaudited)
(In thousands, except parenthetical amounts) 
 Nine Months Ended September 30,
 20222021
Cash flows from operating activities:
Net income$238,765 $371,566 
Adjustments to reconcile net income to net cash provided by operating activities:  
Straight-lined rents5,529 8,734 
Depreciation and amortization403,561 387,887 
Amortization of discount and debt financing costs, net4,916 7,987 
Gain on sale of marketable securities(12,430)(2,499)
Income from early redemption of notes receivable (4,747)
Provision for credit losses64 (110)
Unrealized losses (gains) on equity securities recognized through income63,556 (23,772)
Earnings from co-investments(23,756)(60,692)
Operating distributions from co-investments86,854 78,360 
Accrued interest from notes and other receivables(10,748)(12,253)
Gain on the sale of real estate and land (142,993)
Equity-based compensation6,589 5,399 
Loss on early retirement of debt, net2 18,982 
Gain on remeasurement of co-investment(17,423)(2,260)
Changes in operating assets and liabilities: 
Prepaid expenses, receivables, operating lease right-of-use assets, and other assets15,406 2,470 
Accounts payable, accrued liabilities, and operating lease liabilities38,948 62,699 
Other liabilities8,902 5,119 
Net cash provided by operating activities808,735 699,877 
Cash flows from investing activities:  
Additions to real estate:  
Acquisitions of real estate and acquisition related capital expenditures, net of cash acquired(21,759)(105,469)
Redevelopment(67,974)(39,092)
Development acquisitions of and additions to real estate under development(22,754)(45,381)
Capital expenditures on rental properties(107,105)(81,063)
Investments in notes receivable(160,013)(102,012)
Collections of notes and other receivables303,088 88,744 
Proceeds from insurance for property losses4,325 591 
Proceeds from dispositions of real estate 297,454 
Contributions to co-investments(159,461)(223,175)
Changes in refundable deposits(16,318)(8,356)
Purchases of marketable securities(12,760)(23,740)
Sales and maturities of marketable securities30,025 14,995 
Non-operating distributions from co-investments161,324 131,297 
Net cash used in investing activities(69,382)(95,207)
Cash flows from financing activities:  
Proceeds from unsecured debt and mortgage notes 745,505 
Payments on unsecured debt and mortgage notes(24,103)(952,608)
Proceeds from lines of credit1,053,663 601,435 
Repayments of lines of credit(1,175,440)(558,773)
Retirement of common stock(157,951)(9,172)
8

 Nine Months Ended September 30,
 20222021
Additions to deferred charges(140)(8,237)
Payments related to debt prepayment penalties (18,342)
Net proceeds from issuance of common stock(314)(202)
Net proceeds from stock options exercised19,410 17,847 
Payments related to tax withholding for share-based compensation(2,216)(5,445)
Contributions from noncontrolling interest125 1,900 
Distributions to noncontrolling interest(22,606)(21,979)
Redemption of noncontrolling interest(10,929)(8,407)
Redemption of redeemable noncontrolling interest(478)(4,463)
Common stock dividends paid(423,443)(406,818)
Net cash used in financing activities(744,422)(627,759)