10-Q 1 ess-20220331.htm 10-Q ess-20220331
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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 March 31, 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: 65,333,024 shares of Common Stock ($.0001 par value) of Essex Property Trust, Inc. were outstanding as of April 25, 2022.
ii


EXPLANATORY NOTE

This report combines the reports on Form 10-Q for the three month period ended March 31, 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)
ASSETSMarch 31, 2022December 31, 2021
Real estate:
Rental properties:
Land and land improvements$3,032,678 $3,032,678 
Buildings and improvements12,651,423 12,597,249 
 15,684,101 15,629,927 
Less: accumulated depreciation(4,779,581)(4,646,854)
 10,904,520 10,983,073 
Real estate under development112,815 111,562 
Co-investments1,144,542 1,177,802 
12,161,877 12,272,437 
Cash and cash equivalents-unrestricted98,107 48,420 
Cash and cash equivalents-restricted10,446 10,218 
Marketable securities, net of allowance for credit losses of zero as of both March 31, 2022 and December 31, 2021
169,702 191,829 
Notes and other receivables, net of allowance for credit losses of $0.7 million and $0.8 million as of March 31, 2022 and December 31, 2021, respectively (includes related party receivables of $39.9 million and $176.9 million as of March 31, 2022 and December 31, 2021, respectively)
205,420 341,033 
Operating lease right-of-use assets68,158 68,972 
Prepaid expenses and other assets56,591 64,964 
Total assets$12,770,301 $12,997,873 
LIABILITIES AND EQUITY  
Unsecured debt, net$5,308,841 $5,307,196 
Mortgage notes payable, net637,778 638,957 
Lines of credit98,000 341,257 
Accounts payable and accrued liabilities221,925 180,751 
Construction payable35,484 29,136 
Dividends payable150,976 143,213 
Distributions in excess of investments in co-investments28,846 35,545 
Operating lease liabilities69,801 70,675 
Other liabilities40,705 39,969 
Total liabilities6,592,356 6,786,699 
Commitments and contingencies
Redeemable noncontrolling interest39,738 34,666 
Equity:  
Common stock; 0.0001 par value, 670,000,000 shares authorized; 65,332,274 and 65,248,393 shares issued and outstanding, respectively
7 7 
Additional paid-in capital6,930,072 6,915,981 
Distributions in excess of accumulated earnings(987,333)(916,833)
Accumulated other comprehensive income (loss), net14,237 (5,552)
Total stockholders' equity5,956,983 5,993,603 
Noncontrolling interest181,224 182,905 
Total equity6,138,207 6,176,508 
Total liabilities and equity$12,770,301 $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 March 31,
 20222021
Revenues:
Rental and other property$379,216 $352,876 
Management and other fees from affiliates2,689 2,249 
 381,905 355,125 
Expenses:  
Property operating, excluding real estate taxes68,858 65,085 
Real estate taxes47,242 45,328 
Corporate-level property management expenses10,172 9,013 
Depreciation and amortization133,533 128,587 
General and administrative12,242 9,812 
Expensed acquisition and investment related costs8 15 
 272,055 257,840 
Gain on sale of real estate and land 100,096 
Earnings from operations109,850 197,381 
Interest expense(50,377)(51,649)
Total return swap income2,544 2,844 
Interest and other (loss) income(7,567)14,387 
Equity income from co-investments21,171 17,011 
Deferred tax benefit (expense) on unconsolidated co-investments2,754 (508)
Loss on early retirement of debt, net (2,517)
Net income78,375 176,949 
Net income attributable to noncontrolling interest(5,121)(8,505)
Net income available to common stockholders$73,254 $168,444 
Comprehensive income$98,856 $181,441 
Comprehensive income attributable to noncontrolling interest(5,813)(8,658)
Comprehensive income attributable to controlling interest$93,043 $172,783 
Per share data:  
Basic:  
Net income available to common stockholders$1.12 $2.59 
Weighted average number of shares outstanding during the period65,275,775 64,989,620 
Diluted:  
Net income available to common stockholders$1.12 $2.59 
Weighted average number of shares outstanding during the period65,339,378 65,114,933 

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 months ended March 31, 2022 and 2021
(Unaudited)
(In thousands)
 Common stockAdditional paid-in capitalDistributions
in excess of accumulated
earnings
Accumulated
other
comprehensive income (loss), net
Noncontrolling interestTotal
Three months ended March 31, 2022SharesAmount
Balances at December 31, 202165,248 $7 $6,915,981 $(916,833)$(5,552)$182,905 $6,176,508 
Net income— — — 73,254 — 5,121 78,375 
Change in fair value of derivatives and amortization of swap settlements— — — — 19,404 679 20,083 
Change in fair value of marketable debt securities, net— — — — 385 13 398 
Issuance of common stock under:      
Stock option and restricted stock plans, net84 — 16,867 — — — 16,867 
Sale of common stock, net— — (141)— — — (141)
Equity based compensation costs— — 2,380 — — 83 2,463 
Changes in the redemption value of redeemable noncontrolling interest— — (5,014)— — (58)(5,072)
Contributions from noncontrolling interest— — — — — 125 125 
Distributions to noncontrolling interest— — — — — (7,619)(7,619)
Redemptions of noncontrolling interest— — (1)— — (25)(26)
Common stock dividends ($2.20 per share)
— — — (143,754)— — (143,754)
Balances at March 31, 202265,332 $7 $6,930,072 $(987,333)$14,237 $181,224 $6,138,207 



4

Common stockAdditional paid-in capitalDistributions
in excess of accumulated
earnings
Accumulated
other
comprehensive income (loss), net
Noncontrolling InterestTotal
Three months ended March 31, 2021SharesAmount
Balances at December 31, 202064,999 $6 $6,876,326 $(861,193)$(14,729)$182,782 $6,183,192 
Net income— — — 168,444 — 8,505 176,949 
Change in fair value of derivatives and amortization of swap settlements— — — — 4,257 150 4,407 
Change in fair value of marketable debt securities, net— — — — 82 3 85 
Issuance of common stock under:
Stock option and restricted stock plans, net39 — (3,744)— — — (3,744)
Equity based compensation costs— — 5,028 — — 54 5,082 
Retirement of common stock, net(40)— (9,172)— — — (9,172)
Changes in the redemption value of redeemable noncontrolling interest— — (4,178)— — 95 (4,083)
Contributions from noncontrolling interest— — — — — 1,900 1,900 
Distributions to noncontrolling interest— — — — — (7,554)(7,554)
Redemptions of noncontrolling interest1 — (75)— — (180)(255)
Common stock dividends ($2.09 per share)
— — — (135,876)— — (135,876)
Balances at March 31, 202164,999 $6 $6,864,185 $(828,625)$(10,390)$185,755 $6,210,931 

See accompanying notes to the unaudited condensed consolidated financial statements.
5

ESSEX PROPERTY TRUST, INC. AND SUBSIDIARIES
Condensed Consolidated Statements of Cash Flows
(Unaudited)
(In thousands, except parenthetical amounts) 
 Three Months Ended March 31,
 20222021
Cash flows from operating activities:
Net income78,375 $176,949 
Adjustments to reconcile net income to net cash provided by operating activities:  
Straight-lined rents2,074 3,087 
Depreciation and amortization133,533 128,587 
Amortization of discount and debt financing costs, net1,665 2,132 
Gain on sale of marketable securities(12,171)(2,611)
Provision for credit losses62 38 
Unrealized losses (gains) on equity securities recognized through income24,585 (6,276)
Earnings from co-investments(21,171)(17,011)
Operating distributions from co-investments52,281 46,355 
Accrued interest from notes and other receivables(3,447)(4,201)
Gain on the sale of real estate and land (100,096)
Equity-based compensation2,296 1,386 
Loss on early retirement of debt, net 2,517 
Changes in operating assets and liabilities: 
Prepaid expenses, receivables, operating lease right-of-use assets, and other assets16,026 (41,060)
Accounts payable, accrued liabilities, and operating lease liabilities40,300 4,976 
Other liabilities735 494 
Net cash provided by operating activities315,143 195,266 
Cash flows from investing activities:  
Additions to real estate:  
Acquisitions of real estate and acquisition related capital expenditures, net of cash acquired(61)(1,203)
Redevelopment(18,004)(9,274)
Development acquisitions of and additions to real estate under development(6,882)(19,629)
Capital expenditures on rental properties(24,917)(16,720)
Investments in notes receivable(134,697)(69,885)
Collections of notes and other receivables270,338  
Proceeds from insurance for property losses88 102 
Proceeds from dispositions of real estate 243,365 
Contributions to co-investments(79,284)(49,974)
Changes in refundable deposits(6,318)11 
Purchases of marketable securities(10,826)(23,296)
Sales and maturities of marketable securities27,911 14,772 
Non-operating distributions from co-investments88,370 78,600 
Net cash provided by investing activities105,718 146,869 
Cash flows from financing activities:  
Proceeds from unsecured debt and mortgage notes 447,404 
Payments on unsecured debt and mortgage notes(904)(600,858)
Proceeds from lines of credit391,472 204,794 
Repayments of lines of credit(634,729)(204,794)
Retirement of common stock (9,172)
6

 Three Months Ended March 31,
 20222021
Additions to deferred charges (3,434)
Payments related to debt prepayment penalties (2,132)
Net proceeds from issuance of common stock(141) 
Net proceeds from stock options exercised19,083 1,701 
Payments related to tax withholding for share-based compensation(2,216)(5,445)
Contributions from noncontrolling interest125 1,900 
Distributions to noncontrolling interest(7,218)(7,461)
Redemption of noncontrolling interest(26)(255)
Common stock dividends paid(136,392)(135,064)
Net cash used in financing activities(370,946)(312,816)
Net increase in unrestricted and restricted cash and cash equivalents49,915 29,319 
Unrestricted and restricted cash and cash equivalents at beginning of period58,638 84,041 
Unrestricted and restricted cash and cash equivalents at end of period$108,553 $113,360 
Supplemental disclosure of cash flow information:
Cash paid for interest (net of $0.9 million and $2.1 million capitalized in 2022 and 2021, respectively)
$51,168 $55,213 
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases$1,738 $1,738 
Supplemental disclosure of noncash investing and financing activities:  
Transfers between real estate under development and rental properties, net$4,346 $267 
Transfer from real estate under development to co-investments$858 $747 
Reclassifications to redeemable noncontrolling interest from additional paid in capital and noncontrolling interest$5,073 $4,083 

See accompanying notes to the unaudited condensed consolidated financial statements.

7

ESSEX PORTFOLIO, L.P.  AND SUBSIDIARIES
Condensed Consolidated Balance Sheets
(Unaudited)
(In thousands, except parenthetical and unit amounts)
ASSETSMarch 31, 2022December 31, 2021
Real estate:
Rental properties:
Land and land improvements$3,032,678 $3,032,678 
Buildings and improvements12,651,423 12,597,249 
 15,684,101 15,629,927 
Less: accumulated depreciation(4,779,581)(4,646,854)
 10,904,520 10,983,073 
Real estate under development112,815 111,562 
Co-investments1,144,542 1,177,802 
Real estate held for sale, net  
12,161,877 12,272,437 
Cash and cash equivalents-unrestricted98,107 48,420 
Cash and cash equivalents-restricted10,446 10,218 
Marketable securities, net of allowance for credit losses of zero as of both March 31, 2022 and December 31, 2021
169,702 191,829 
Notes and other receivables, net of allowance for credit losses of $0.7 million and $0.8 million as of March 31, 2022 and December 31, 2021, respectively (includes related party receivables of $39.9 million and $176.9 million as of March 31, 2022 and December 31, 2021, respectively)
205,420 341,033 
Operating lease right-of-use assets68,158 68,972 
Prepaid expenses and other assets56,591 64,964 
Total assets$12,770,301 $12,997,873 
LIABILITIES AND CAPITAL  
Unsecured debt, net$5,308,841 $5,307,196 
Mortgage notes payable, net637,778 638,957 
Lines of credit98,000 341,257 
Accounts payable and accrued liabilities221,925 180,751 
Construction payable35,484 29,136 
Distributions payable150,976 143,213 
Operating lease liabilities69,801 70,675 
Distributions in excess of investments in co-investments28,846 35,545 
Other liabilities40,705 39,969 
Total liabilities6,592,356 6,786,699 
Commitments and contingencies
Redeemable noncontrolling interest39,738 34,666 
Capital:  
General Partner:
Common equity (65,332,274 and 65,248,393 units issued and outstanding, respectively)
5,942,746 5,999,155 
5,942,746 5,999,155 
Limited Partners:
Common equity (2,282,464 and 2,282,464 units issued and outstanding, respectively)
54,112 56,502 
    Accumulated other comprehensive loss18,677 (1,804)
Total partners' capital6,015,535 6,053,853 
                  Noncontrolling interest122,672 122,655 
Total capital6,138,207 6,176,508 
Total liabilities and capital$12,770,301 $12,997,873 

See accompanying notes to the unaudited condensed consolidated financial statements.
8

ESSEX PORTFOLIO, L.P. AND SUBSIDIARIES
Condensed Consolidated Statements of Income and Comprehensive Income
(Unaudited)
(In thousands, except unit and per unit amounts)
 Three Months Ended March 31,
 20222021
Revenues:
Rental and other property$379,216 $352,876 
Management and other fees from affiliates2,689 2,249 
 381,905 355,125 
Expenses:  
Property operating, excluding real estate taxes68,858 65,085 
Real estate taxes47,242 45,328 
Corporate-level property management expenses10,172 9,013 
Depreciation and amortization133,533 128,587 
General and administrative12,242 9,812 
Expensed acquisition and investment related costs8 15 
 272,055 257,840 
Gain on sale of real estate and land 100,096 
Earnings from operations109,850 197,381 
Interest expense(50,377)(51,649)
Total return swap income2,544 2,844 
Interest and other (loss) income(7,567)14,387 
Equity income from co-investments21,171 17,011 
Deferred tax (benefit) expense on unconsolidated co-investments2,754 (508)
Loss on early retirement of debt, net (2,517)
Net income78,375 176,949 
Net income attributable to noncontrolling interest(2,558)(2,558)
Net income available to common unitholders$75,817 $174,391 
Comprehensive income$98,856 $181,441 
Comprehensive income attributable to noncontrolling interest(2,558)(2,558)
Comprehensive income attributable to controlling interest$96,298 $178,883 
Per unit data:  
Basic:  
Net income available to common unitholders$1.12 $2.59 
Weighted average number of common units outstanding during the period67,558,239 67,283,424 
Diluted:
Net income available to common unitholders$1.12 $2.59 
Weighted average number of common units outstanding during the period67,621,842 67,408,737 

See accompanying notes to the unaudited condensed consolidated financial statements.
9

ESSEX PORTFOLIO, L.P. AND SUBSIDIARIES
Condensed Consolidated Statements of Capital for the three and three months ended March 31, 2022 and 2021
(Unaudited)
(In thousands)
 General PartnerLimited PartnersAccumulated other
comprehensive income (loss), net
Noncontrolling interestTotal
 Common EquityCommon Equity
Three months ended March 31, 2022UnitsAmountUnitsAmount
Balances at December 31, 202165,248 $5,999,155 2,282 $56,502 $(1,804)$122,655 $6,176,508 
Net income— 73,254 — 2,563 — 2,558 78,375 
Change in fair value of derivatives and amortization of swap settlements— — — — 20,083 — 20,083 
Change in fair value of marketable debt securities, net— — — — 398 — 398 
Issuance of common units under:      
General partner's stock based compensation, net84 16,867 — — — — 16,867 
Sale of common stock by general partner, net— (141)— — — — (141)
Equity based compensation costs— 2,380 — 83 — — 2,463 
Changes in the redemption value of redeemable noncontrolling interest— (5,014)— (14)— (44)(5,072)
Contributions from noncontrolling interest— — — — — 125 125 
Distributions to noncontrolling interest— — — — — (2,597)(2,597)
Redemptions— (1)— — — (25)(26)
Distributions declared ($2.20 per unit)
— (143,754)— (5,022)— — (148,776)
Balances at March 31, 202265,332 $5,942,746 2,282 $54,112 $18,677 $122,672 $6,138,207 

10

 General PartnerLimited PartnersAccumulated other
comprehensive income (loss), net
Noncontrolling interestTotal
 Common EquityCommon Equity
Three months ended March 31, 2021UnitsAmountUnitsAmount
Balances at December 31, 202064,999 $6,015,139 2,295 $58,184 $(11,303)$121,172 $6,183,192 
Net income— 168,444 — 5,947 — 2,558 176,949 
Change in fair value of derivatives and amortization of swap settlements— — — — 4,407 — 4,407 
Change in fair value of marketable debt securities, net— — — —