Earnings release
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ESSEX ANNOUNCES THIRD QUARTER 2025 RESULTS AND RAISES FULL-YEAR 2025 GUIDANCE San Mateo , Californi a—October 29, 2025 —Essex Property Trust, Inc. (NYSE: ESS) (the “Company”) announced today its third quarter 2025 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, 2025 are detailed below. Three Months Ended September 30, Nine Months Ended September 30, % % 2025 2024 Change 2025 2024 Change Per Diluted Share Net Income $2.56 $1.84 39.1% $9.15 $7.54 21.4% Total FFO $4.03 $3.81 5.8% $12.03 $12.30 -2.2% Core FFO $3.97 $3.91 1.5% $11.96 $11.68 2.4% Third Quarter 2025 Highlights: • Reported Net Income per diluted share for the third quarter of 2025 of $2.56, compared to $1.84 in the third quarter of 2024. The increase was primarily driven by gains on sale of real estate. • Grew Core FFO per diluted share by 1.5% compared to the third quarter of 2024, exceeding the midpoint of the Company’s guidance range by $0.03. • Achieved same-property revenue and net operating income (“NOI”) growth of 2.7% and 2.4%, respectively, compared to the third quarter of 2024. On a sequential basis, same-property revenue improved 0.7%. • Acquired one apartment home community for a contract price of $100.0 million. • Disposed of three apartment home communities for a total contract price of $244.7 million ($197.2 million at pro rata share). • Received $71.4 million in redemption proceeds from four preferred equity investments yielding a 10.1% weighted average rate of return. • Committed $21.3 million at the Company’s pro rata share to one preferred equity investment yielding a preferred return of 13.5%. • Raised full-year Net Income per diluted share guidance by $ 0.41 at the midpoint to a range of $10.53 to $10.63. • Raised full-year Core FFO per diluted share guidance by $0.03 at the midpoint to a range of $15.89 to $15.99. This represents 2.2% growth at the midpoint compared to the prior year. • Reaffirmed full-year guidance midpoints for same-property revenues, expenses, and NOI growth. 1100 Park Place Suite 200 San Mateo California 94403 telephone 650 655 7 800 facsimile 650 655 7810 www.essex .com
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Table of Contents - 2 - 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, 2025 and on a sequential basis for the three-month period ended September 30, 2025: Revenue Change Q3 2025 vs. Q3 2024 YTD 2025 vs. YTD 2024 Q3 2025 vs. Q2 2025 % of Total Q3 2025 Revenues Southern California Los Angeles County 2.3% 3.1% 0.6% 18.5% Orange County 3.0% 3.4% 0.7% 9.2% San Diego County 1.4% 2.5% -0.4% 9.3% Ventura County 3.3% 3.9% 1.7% 4.3% Total Southern California 2.4% 3.1% 0.5% 41.3% Northern California Santa Clara County 3.3% 3.3% 0.9% 20.2% Alameda County 1.7% 2.6% 0.1% 7.0% San Mateo County 4.4% 4.6% 1.4% 4.7% Contra Costa County 1.1% 2.0% 0.1% 5.4% San Francisco 5.0% 6.1% 0.7% 3.1% Total Northern California 3.0% 3.4% 0.7% 40.4% Seattle Metro 3.0% 2.7% 1.3% 18.3% Same-Property Portfolio 2.7% 3.1% 0.7% 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, 2025 and on a sequential basis for the three - month period ended September 30, 2025: Same-Property Revenue Components Q3 2025 vs. Q3 2024 YTD 2025 vs. YTD 2024 Q3 2025 vs. Q2 2025 Scheduled Rents 2.4% 2.3% 0.9% Delinquency 0.2% 0.6% 0.0% Cash Concessions -0.1% 0.0% 0.0% Vacancy -0.2% -0.2% -0.1% Other Income 0.4% 0.4% -0.1% Q3 2025 Same-Property Revenue Growth 2.7% 3.1% 0.7%
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Table of Contents - 3 - Year-Over-Year Change Year-Over-Year Change Q3 2025 compared to Q3 2024 YTD 2025 compared to YTD 2024 Revenues Operating Expenses NOI Revenues Operating Expenses NOI Southern California 2.4% 6.2% 0.7% 3.1% 5.3% 2.2% Northern California 3.0% 2.6% 3.1% 3.4% 3.4% 3.4% Seattle Metro 3.0% -0.2% 4.4% 2.7% -0.6% 4.1% Same-Property Portfolio 2.7% 3.5% 2.4% 3.1% 3.4% 3.0% Sequential Change Q3 2025 compared to Q2 2025 Revenues Operating Expenses NOI Southern California 0.5% 4.9% -1.3% Northern California 0.7% 4.4% -0.9% Seattle Metro 1.3% 13.8% -3.1% Same-Property Portfolio 0.7% 6.2% -1.5% Financial Occupancies Quarter Ended 9/30/2025 6/30/2025 9/30/2024 Southern California 95.8% 95.7% 95.9% Northern California 96.3% 96.6% 96.4% Seattle Metro 96.2% 96.5% 96.6% Same-Property Portfolio 96.1% 96.2% 96.2% INVESTMENT ACTIVITY Acquisitions In September, the Company acquired ViO, a 234-unit apartment home community built in 2016 and located in San Jose, CA for a contract price of $100.0 million. Dispositions In July, the Company sold a 243-unit apartment home community located in Oakland, CA for a contract price of $97.5 million. The Company recorded a gain on sale of real estate of $47.8 million in the third quarter, which has been excluded from Total and Core FFO. In September, Wesco V LLC (“Wesco V”), a joint venture in which the Company owns a 50% interest, sold a 211-unit apartment home community located in Seattle, WA for a total contract price of $94.9 million ($47.4 million at pro rata share). The Company recorded a gain on sale of co-investment communities of $5.2 million at pro rata share in the third quarter, which has been excluded from Total and Core FFO.
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Table of Contents - 4 - In September, the Company sold a 171-unit apartment home community located in Berkeley, CA for a contract price of $52.3 million. The Company recorded a gain on sale of real estate of $14.5 million in the third quarter, which has been excluded from Total and Core FFO. Other Investments In July, Wesco VII LLC (“Wesco VII”), a joint venture in which the Company owns a 50% interest, originated a $42.6 million preferred equity investment for the development of a 480- unit apartment home community located in South San Francisco, CA . The investment has an initial preferred return of 13.5% and was fully funded in the third quarter of 2025. In the third quarter, the Company received cash proceeds of $71.4 million from the full and partial redemptions of four preferred equity investments yielding a 10.1% weighted average rate of return. Subsequent to quarter end, the Company received cash proceeds of $18.8 million from the full redemption of one preferred equity investment yielding a 9.0% rate of return. Year-to-date, the Company has received cash proceeds of $117.5 million from the full redemptions of seven structured finance investments yielding a 9.8% weighted average rate of return. BALANCE SHEET AND LIQUIDITY Balance Sheet In July, the Company increased its unsecured credit facility from $1.2 billion to $1.5 billion and extended the maturity date to January 2030 with two six- month extension options , exercisable at the Company’s option. Pricing on the credit facility is SOFR plus 0.775%. Subsequent to quarter end, the Company executed an amendment of its existing $300.0 million unsecured term loan to extend the maturity date from October 2027 to January 2031, inclusive of extension options exercisable at the Company’s option. The interest rate was reduced by 0.10% to SOFR plus 0.85% and is swapped to an all-in fixed rate of 4.07% through October 2026. Common Stock and Liquidity During the third quarter, the Company did not issue any shares of common stock through its equity distribution program, exercise any of its previously disclosed forward sale agreements, or repurchase any shares through its stock repurchase plan. As of September 30, 2025, the Company had approximately $1.5 billion in liquidity via available capacity on its unsecured credit facilities, cash and cash equivalents, and marketable securities.
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Table of Contents - 5 - GUIDANCE For the third quarter of 2025, the Company exceeded the midpoint of the guidance range provided in its second quarter 2025 earnings release for Core FFO by $0.03 per diluted share. The following table provides a reconciliation of third quarter 2025 Core FFO per diluted share to the midpoint of the guidance provided in the Company’s second quarter 2025 earnings release. Per Diluted Share Guidance midpoint of Core FFO per diluted share for Q3 2025 $ 3.94 G&A 0.02 Interest Expense 0.01 Core FFO per diluted share for Q3 2025 reported $ 3.97 2025 FULL-YEAR AND FOURTH QUARTER GUIDANCE Per Diluted Share Previous Range Current Range Current Midpoint Change at Midpoint Net Income $10.05 - $10.29 $10.53 - $10.63 $10.58 +$0.41 Total FFO $15.77 - $16.01 $15.91 - $16.01 $15.96 +$0.07 Core FFO $15.80 - $16.02 $15.89 - $15.99 $15.94 +$0.03 Q4 2025 Core FFO N/A $3.93 - $4.03 $3.98 N/A Same-Property Portfolio Growth (1) Revenues 2.90% to 3.40% 3.00% to 3.30% 3.15% - Operating Expenses 3.00% to 3.50% 3.00% to 3.50% 3.25% - Net Operating Income 2.70% to 3.50% 2.80% to 3.40% 3.10% - (1) Reflects guidance on a cash basis. On a GAAP basis, the midpoints of the Company’s same-property revenue and NOI guidance are 3.20% and 3.20%, respectively. For additional details regarding the Company’s 2025 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 Thursday, October 30, 2025 at 11 a.m. PT ( 2 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 2025 earnings link. To access the replay, dial (844) 512-2921 using the replay pin number 13756190. If you are unable to access the information via the Company’s website, please contact the Investor Relations Department at investors@essex.com or calling (650) 655-7800.
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Table of Contents - 6 - CORPORATE PROFILE Essex Property Trust, Inc., an S&P 500 company, is a fully integrated real estate investment trust (REIT) that acquires, develops, redevelops, and manages multifamily residential properties in selected West Coast markets. Essex currently has ownership interests in 257 apartment 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 web site at www.essex.com. If you are unable to obtain the information via the Web, please contact the Investor Relations Department at (650) 655-7800. FFO RECONCILIATION FFO, as defined by the National Association of Real Estate Investment Trusts (“N areit”), 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 us eful 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 as sets 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’ calculat ion 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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Table of Contents - 7 - 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, 2025 and 2024 (dollars in thousands, except for share and per share amounts): Three Months Ended September 30, Nine Months Ended September 30, 2025 2024 2025 2024 Net income available to common stockholders $ 164,621 $ 118,424 $ 589,093 $ 484,069 Adjustments: Depreciation and amortization 151,489 146,439 454,277 431,785 Gains not included in FFO (67,509) (31,583) (305,043) (169,909) Impairment loss from unconsolidated co-investments - - - 3,726 Depreciation and amortization from unconsolidated co- investments 14,343 16,417 43,127 52,267 Noncontrolling interest related to Operating Partnership units 5,767 4,206 20,827 17,075 Depreciation attributable to third party ownership and other (38) (370) (122) (1,149) FFO attributable to common stockholders and unitholders $ 268,673 $ 253,533 $ 802,159 $ 817,864 FFO per share – diluted $ 4.03 $ 3.81 $ 12.03 $ 12.30 Expensed acquisition and investment related costs $ 25 $ - $ 25 $ 68 Tax benefit on unconsolidated technology co-investments (1,958) (441) (2,353) (1,199) Realized and unrealized gains on marketable securities, net (1,658) (5,697) (4,059) (10,645) Provision for credit losses 50 (182) 61 (116) Equity income from unconsolidated technology co-investments (4,393) (555) (6,005) (6,282) Loss on early retirement of debt - - 762 - Co-investment promote income - - - (1,531) Income from early redemption of preferred equity investments and notes receivable (70) - (70) - General and administrative and other, net (1) 3,926 13,956 7,863 22,403 Insurance reimbursements, legal settlements, and other, net (2) (89) (612) (789) (43,912) Core FFO attributable to common stockholders and unitholders $ 264,506 $ 260,002 $ 797,594 $ 776,650 Core FFO per share – diluted $ 3.97 $ 3.91 $ 11.96 $ 11.68 Weighted average number of shares outstanding diluted (3) 66,674,655 66,551,838 66,667,571 66,500,412 (1) Includes political advocacy costs of $1.6 million and $2.0 million for the three and nine months ended September 30, 2025, respectively, and $11.3 million and $18.5 million for the three and nine months ended September 30, 2024, respectively. (2) There were no material gains from legal settlements during the three and nine months ended September 30, 2025 and the three months ended September 30, 2024. During the nine months ended September 30, 2024, the Company settled two lawsuits related to construction defects at two communities and received cash recoveries of $42.5 million. The Company determined that all uncertainties were resolved upon receipt of cash and recorded a gain which was excluded from Core FFO. (3) 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.
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Table of Contents - 8 - 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 revenue s 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, 2025 2024 2025 2024 Earnings from operations $ 210,399 $ 128,790 $ 747,180 $ 398,599 Adjustments: Corporate-level property management expenses 12,216 11,610 36,768 34,331 Depreciation and amortization 151,489 146,439 454,277 431,785 Management and other fees from affiliates (2,361) (2,563) (7,078) (7,849) General and administrative 18,058 29,067 51,507 67,374 Expensed acquisition and investment related costs 25 - 25 68 Gain on sale of real estate and land (62,320) - (299,524) - NOI 327,506 313,343 983,155 924,308 Less: Non-same property NOI (41,619) (34,060) (124,002) (90,214) Same-Property NOI $ 285,887 $ 279,283 $ 859,153 $ 834,094 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,” “pr ojects,” “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 2025 guidance (including net income, Total FFO and Core FFO, same-property growth and related assumptions) and anticipated yield on certain investments. While the Company's management believes the assumptions underlying its forward-looking statements are reasonable, such forward-looking statements involve known and unknown risks, uncertainties and other factors, many of which are beyond the Company’s control, which could cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. The Company cannot assure the future results or outcome of the matters described in these statements; ra ther, these statements merely reflect the Company’s current expectations of the approximate outcomes of the matters discussed.
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Table of Contents - 9 - 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 2025 guidance; occupancy rates and rental demand may be adversely affected by competition and local economic and market conditions; there may be increased interest rates, inflation, escalated operating costs and possible recessionary impacts; tariffs, geopolitical tensions and regional conflicts , and the related impacts on macroeconomic conditions, including, among other things, interest rates and inflation; the terms of any refinancing may not be as favorable as the terms of existing indebtedness; the Company’s inability to maintain its investment grade credit rating with the rating agencies; the Company may be unsuccessful in the management of its relationships with its co -investment partners; the Company may fail to achieve its business objectives; time of actual completion and/or stab ilization 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 ac cordance with REIT requirements; changes in laws or regulations and the anticipated or actual impact of future changes in laws or regulations ; unexpected difficulties in leasing of future development projects; volatility in financial and securities markets; the Company’s failure to successfully operate acquired properties; unforeseen consequences from cyber-intrusion; government approvals, actions and initiatives, including the need for compliance with environmental requirements; and those further risks, special considerations, and other factors referred to in the Company’s annual report on Form 10-K for the year ended December 31, 2024, quarterly reports on Form 10-Q, and those risk factors and special considerations set forth in the Company's other filings with the SEC which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by such forward -looking statements. All forward -looking statements are made as of the date hereof, the Company assumes no obligation to update or supplement this information for any reason, and therefore, they may not represent the Company’s estimates and assumptions after the date of this press release. DEFINITIONS AND RECONCILIATIONS Non-GAAP financial measures and certain other capitalized terms, as used in this earnings release and supplemental financial information, are defined and further explained on pages S -17.1 through S -17.4, "Reconciliations of Non-GAAP Financial Measures and Other Terms ," of the accompanying supplemental financial information . The supplemental financial information is available on the Company's website at www.essex.com. Contact Information Loren Rainey Sr. Director, Investor Relations (650) 655-7800 lrainey@essex.com
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Table of Contents Three Months Ended Nine Months Ended September 30, September 30, Revenues: Rental and other property $ 470,942 $ 448,135 $ 1,400,641 $ 1,312,132 Management and other fees from affiliates 2,361 2,563 7,078 7,849 473,303 450,698 1,407,719 1,319,981 Expenses: Property operating 143,436 134,792 417,486 387,824 Corporate-level property management expenses 12,216 11,610 36,768 34,331 Depreciation and amortization 151,489 146,439 454,277 431,785 General and administrative 18,058 29,067 51,507 67,374 Expensed acquisition and investment related costs 25 - 25 68 325,224 321,908 960,063 921,382 Gain on sale of real estate and land 62,320 - 299,524 - Earnings from operations 210,399 128,790 747,180 398,599 Interest expense, net (1) (63,331) (58,425) (189,054) (172,053) Interest and other income 5,900 11,449 16,997 78,292 Equity income from co-investments 17,798 11,649 39,984 33,667 Tax benefit on unconsolidated technology co-investments 1,958 441 2,353 1,199 Loss on early retirement of debt - - (762) - Gain on remeasurement of co-investment - 31,583 330 169,909 Net income 172,724 125,487 617,028 509,613 Net income attributable to noncontrolling interest (8,103) (7,063) (27,935) (25,544) Net income available to common stockholders $ 164,621 $ 118,424 $ 589,093 $ 484,069 Net income per share - basic $ 2.56 $ 1.84 $ 9.15 $ 7.54 Shares used in income per share - basic 64,404,008 64,227,662 64,368,625 64,214,258 Net income per share - diluted $ 2.56 $ 1.84 $ 9.15 $ 7.54 Shares used in income per share - diluted 64,418,240 64,271,459 64,392,244 64,234,358 (1) Refer to page S-17.2, the section titled "Interest Expense, Net" for additional information. 2025 20252024 2024 See Company's Form 10-K and Form 10-Qs filed with the SEC for additional information S-1
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Table of Contents Three Months Ended Nine Months Ended September 30, September 30, Rental and other property Rental income $ 463,892 $ 440,649 $ 1,380,438 $ 1,290,026 Other property 7,050 7,486 20,203 22,106 Rental and other property $ 470,942 $ 448,135 $ 1,400,641 $ 1,312,132 Property operating expenses Real estate taxes $ 52,023 $ 48,956 $ 153,652 $ 143,188 Administrative 15,200 13,782 45,392 42,881 Maintenance and repairs 16,052 16,197 46,924 44,987 Personnel costs 27,448 25,296 80,443 74,256 Utilities 32,713 30,561 91,075 82,512 Property operating expenses $ 143,436 $ 134,792 $ 417,486 $ 387,824 Interest and other income Marketable securities and other income $ 4,218 $ 5,044 $ 12,210 $ 23,729 Realized and unrealized gains on marketable securities, net 1,658 5,697 4,059 10,645 Provision for credit losses (50) 182 (61) 116 Insurance reimbursements, legal settlements, and other, net 74 526 789 43,802 Interest and other income $ 5,900 $ 11,449 $ 16,997 $ 78,292 Equity income from co-investments Equity loss from co-investments $ (485) $ (862) $ (1,008) $ (6,736) Income from preferred equity investments 8,616 11,870 29,728 36,206 Equity income from unconsolidated technology co-investments 4,393 555 6,005 6,282 Insurance reimbursements, legal settlements, and other, net 15 86 - 110 Impairment loss from unconsolidated co-investment - - - (3,726) Gain on sale of co-investment communities 5,189 - 5,189 - Co-investment promote income - - - 1,531 Income from early redemption of preferred equity investments 70 - 70 - Equity income from co-investments $ 17,798 $ 11,649 $ 39,984 $ 33,667 Noncontrolling interest Limited partners of Essex Portfolio, L.P. $ 5,767 $ 4,206 $ 20,827 $ 17,075 DownREIT limited partners' distributions 2,294 2,284 6,972 6,867 Third-party ownership interest 42 573 136 1,602 Noncontrolling interest $ 8,103 $ 7,063 $ 27,935 $ 25,544 202420242025 2025 See Company's Form 10-K and Form 10-Qs filed with the SEC for additional information S-2
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Table of Contents Three Months Ended Nine Months Ended September 30, September 30, % Change % Change Funds from operations attributable to common stockholders and unitholders (FFO) Net income available to common stockholders $ 164,621 $ 118,424 $ 589,093 $ 484,069 Adjustments: Depreciation and amortization 151,489 146,439 454,277 431,785 Gains not included in FFO (67,509) (31,583) (305,043) (169,909) Impairment loss from unconsolidated co-investments - - - 3,726 Depreciation and amortization from unconsolidated co-investments 14,343 16,417 43,127 52,267 Noncontrolling interest related to Operating Partnership units 5,767 4,206 20,827 17,075 Depreciation attributable to third party ownership and other (38) (370) (122) (1,149) Funds from operations attributable to common stockholders and unitholders $268,673 $ 253,533 $ 802,159 $ 817,864 FFO per share-diluted $ 4.03 $ 3.81 5.8% $ 12.03 $ 12.30 -2.2% Components of the change in FFO Non-core items: Expensed acquisition and investment related costs $ 25 $ - $ 25 $ 68 Tax benefit on unconsolidated technology co-investments (1,958) (441) (2,353) (1,199) Realized and unrealized gains on marketable securities, net (1,658) (5,697) (4,059) (10,645) Provision for credit losses 50 (182) 61 (116) Equity income from unconsolidated technology co-investments (4,393) (555) (6,005) (6,282) Loss on early retirement of debt - - 762 - Co-investment promote income - - - (1,531) Income from early redemption of preferred equity investments and notes receivable(70) - (70) - General and administrative and other, net (2) 3,926 13,956 7,863 22,403 Insurance reimbursements, legal settlements, and other, net (3) (89) (612) (789) (43,912) Core funds from operations attributable to common stockholders and unitholders $264,506 $ 260,002 $ 797,594 $ 776,650 Core FFO per share-diluted $ 3.97 $ 3.91 1.5% $ 11.96 $ 11.68 2.4% Weighted average number of shares outstanding diluted (4) 66,674,655 66,551,838 66,667,571 66,500,412 (1) (2) (3) (4) There were no material gains from legal settlements during the three and nine months ended September 30, 2025 and the three months ended September 30, 2024. During the nine months ended September 30, 2024, the Company settled two lawsuits related to construction defects at two communities and received cash recoveries of $42.5 million. The Company determined that all uncertainties were resolved upon receipt of cash and recorded a gain which was excluded from Core FFO. 2024 2025 2024 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. 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. 2025 Includes political advocacy costs of $1.6 million and $2.0 million for the three and nine months ended September 30, 2025, respectively, and $11.3 million and $18.5 million for the three and nine months ended September 30, 2024, respectively. See Company's Form 10-K and Form 10-Qs filed with the SEC for additional information S-3
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Table of Contents September 30, 2025 December 31, 2024 Real estate investments: Land and land improvements $ 3,325,394 $ 3,246,789 Buildings and improvements 14,745,049 14,342,729 18,070,443 17,589,518 Less: accumulated depreciation (6,381,123) (6,150,618) 11,689,320 11,438,900 Real estate under development 139,161 52,682 Co-investments 808,238 935,014 12,636,719 12,426,596 Cash and cash equivalents, including restricted cash 75,243 75,846 Marketable securities 84,116 69,794 Notes and other receivables 221,628 206,706 Operating lease right-of-use assets 51,682 51,556 Prepaid expenses and other assets 80,853 96,861 Total assets $ 13,150,241 $ 12,927,359 Unsecured debt, net $ 5,621,505 $ 5,473,788 Mortgage notes payable, net 795,404 989,884 Lines of credit and commercial paper 245,000 137,945 Distributions in excess of investments in co-investments 95,893 79,273 Operating lease liabilities 52,405 52,473 Other liabilities 508,761 442,757 Total liabilities 7,318,968 7,176,120 Redeemable noncontrolling interest 29,746 30,849 Equity: Common stock 6 6 Additional paid-in capital 6,686,589 6,668,047 Distributions in excess of accumulated earnings (1,063,135) (1,155,662) Accumulated other comprehensive income, net 7,856 24,655 Total stockholders' equity 5,631,316 5,537,046 Noncontrolling interest 170,211 183,344 Total equity 5,801,527 5,720,390 Total liabilities and equity $ 13,150,241 $ 12,927,359 See Company's Form 10-K and Form 10-Qs filed with the SEC for additional information S-4
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Table of Contents Unsecured Debt, net Bonds public - fixed rate $ 5,100,000 3.6% 7.1 2025 $ - $ 11,263 $ 11,263 4.0% 0.2% Term loan (1) 550,000 4.1% 3.2 2026 450,000 99,405 549,405 3.5% 8.5% Unamortized discounts and debt 2027 (1) 650,000 84,397 734,397 3.9% 11.4% issuance costs, net (28,495) - - 2028 450,000 68,332 518,332 2.2% 8.0% Total unsecured debt, net 5,621,505 3.6% 6.7 2029 500,000 1,456 501,456 4.1% 7.8% Mortgage Notes Payable, net 2030 800,000 66,592 866,592 3.6% 13.4% Fixed rate - secured 539,291 4.7% 5.5 2031 600,000 1,740 601,740 2.3% 9.3% Variable rate - secured (2) 259,043 3.3% 13.6 2032 650,000 1,903 651,903 2.6% 10.2% Unamortized premiums and debt 2033 - 330,126 330,126 4.9% 5.1% issuance costs, net (2,930) - - 2034 550,000 2,275 552,275 5.5% 8.6% Total mortgage notes payable, net 795,404 4.2% 8.1 2035 400,000 2,487 402,487 5.5% 6.2% Unsecured Lines of Credit and Commercial Paper Thereafter 600,000 128,358 728,358 3.6% 11.3% Line of credit (3) - 5.2% N/A Subtotal 5,650,000 798,334 6,448,334 3.7% 100.0% Line of credit (4) - 5.2% N/A Debt Issuance Costs (27,773) (2,650) (30,423) - - Commercial paper (5) 245,000 4.3% N/A (Discounts)/Premiums (722) (280) (1,002) - - Total lines of credit and commercial paper245,000 4.3% N/A Total $ 5,621,505 $ 795,404 $ 6,416,909 3.7% 100.0% Total debt, net $ 6,661,909 3.7% 6.7 Capitalized interest for the three and nine months ended September 30, 2025 was approximately $1.1 million and $2.5 million, respectively. (1) (2) (3) (4) (5) Scheduled principal payments, unamortized premiums (discounts) and (debt issuance costs) are as follows - excludes lines of credit and commercial paper: The unsecured line of credit facility has a capacity of $75.0 million and a scheduled maturity date in July 2026. The underlying interest rate on this line is Adjusted SOFR plus 0.775%, which is based on a tiered rate structure tied to the Company's corporate ratings. Weighted Average This unsecured line of credit facility has a capacity of $1.5 billion, a scheduled maturity date in January 2030 and two 6-month extension options, exercisable at the Company’s option. The underlying interest rate on this line is SOFR plus 0.775%, which is based on a tiered rate structure tied to the Company's long-term unsecured credit ratings. Weighted Average Interest Rate Percentage of Total DebtTotal Interest Rate Balance Outstanding Secured Unsecured Maturity in Years The Company has two unsecured term loans with a total capacity of $600.0 million. The first term loan, scheduled to mature in October 2027, was amended subsequent to quarter end with a new maturity date of January 2031, inclusive of extensions at the Company's option. The second term loan is scheduled to mature in May 2030, inclusive of extensions at the Company's option. $259.0 million of variable rate debt is tax exempt to the note holders. The Company has a commercial paper program under which it can issue unsecured short-term notes, up to $750 million, which are backstopped by and reduce the borrowing capacity of the Company's unsecured line of credit facilities. See Company's Form 10-K and Form 10-Qs filed with the SEC for additional information S-5
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Table of Contents Capitalization Data Public Bond Covenants (1) Actual Requirement Total debt, net $ 6,661,909 Common stock and potentially dilutive securities Debt to Total Assets: 34% < 65% Common stock outstanding 64,404 Limited partnership units (1) 2,256 Secured Debt to Total Assets: 4% < 40% Options-treasury method 12 Total shares of common stock and potentially dilutive securities 66,672 Interest Coverage: 517% > 150% Common stock price per share as of September 30, 2025 $ 267.66Unsecured Debt Ratio (2): 293% > 150% Total equity capitalization $ 17,845,428 Selected Credit Ratios (3) Actual Total market capitalization $ 24,507,337 Net Indebtedness Divided by Adjusted EBITDAre, normalized and annualized: 5.5 Ratio of debt to total market capitalization 27.2% Credit Ratings Unencumbered NOI to Adjusted Total NOI:93% Rating Agency Rating Outlook Moody's Baa1 Stable (1) Standard & Poor's BBB+ Stable (2) (1) (3) Refer to page S-17.4 for additional information on the Company's Public Bond Covenants. Unsecured Debt Ratio is unsecured assets (excluding investments in co- investments) divided by unsecured indebtedness. 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. Assumes conversion of all outstanding limited partnership units in the Operating Partnership into shares of the Company's common stock. See Company's Form 10-K and Form 10-Qs filed with the SEC for additional information S-6
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Table of Contents Consolidated Unconsolidated Co-investments Apartment Homes in Development (3) Total Consolidated Unconsolidated Co-investments (4) Total (4) Consolidated Unconsolidated Co-investments (4) Total (4) Southern California Los Angeles County 9,288 1,586 - 10,874 2,697$ 2,574$ 2,686$ 15.2% 19.9% 15.5% Orange County 5,734 265 - 5,999 2,717 2,501 2,712 11.0% 3.5% 10.5% San Diego County 5,444 443 - 5,887 2,706 3,094 2,721 10.1% 6.6% 9.8% Ventura County and Other 2,756 373 - 3,129 2,534 3,241 2,585 5.1% 7.0% 5.3% Total Southern California 23,222 2,667 - 25,889 2,685 2,743 2,688 41.4% 37.0% 41.1% Northern California Santa Clara County (5) 10,419 997 - 11,416 3,165 3,100 3,161 21.9% 13.9% 21.6% Alameda County 3,970 1,328 - 5,298 2,637 2,623 2,635 6.6% 17.0% 7.2% San Mateo County 2,483 195 543 3,221 3,422 3,870 3,439 5.5% 3.0% 5.3% Contra Costa County 2,619 - - 2,619 2,782 - 2,782 4.8% 0.0% 4.5% San Francisco 1,356 537 - 1,893 2,976 3,404 3,046 2.4% 8.3% 2.7% Total Northern California 20,847 3,057 543 24,447 3,033 2,976 3,029 41.2% 42.2% 41.3% Seattle Metro 10,899 1,759 - 12,658 2,280 2,175 2,272 17.4% 20.8% 17.6% Total 54,968 7,483 543 62,994 2,735 $ 2,706$ 2,733$ 100.0% 100.0% 100.0% (1) (2) (3) (4) (5) Represents the percentage of actual NOI for the quarter ended September 30, 2025. See section titled "Net Operating Income ("NOI") and Same-Property NOI Reconciliations" on page S-17.3. Includes all communities in Santa Clara County and one community in Santa Cruz County. Percent of NOI (2)Apartment Homes Average Monthly Rental Rate (1) Region - County 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, 2025, divided by the number of apartment homes as of September 30, 2025. Includes development communities with no rental income. At Company's pro rata share. See Company's Form 10-K and Form 10-Qs filed with the SEC for additional information S-7
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Table of Contents Apartment Homes Q3 '25 Q2 '25 Q1 '25 Q4 '24 Q3 '24 Rental and other property revenues: Same-property 49,032 412,710$ 409,713$ 405,718$ 399,520$ 401,761$ Acquisitions (2) 5,164 44,001 41,784 34,770 26,772 16,964 Non-residential/other, net (3) 772 13,916 15,946 21,989 24,981 29,637 Straight-line rent concessions (4) - 315 167 (388) 780 (227) Total rental and other property revenues54,968 470,942 467,610 462,089 452,053 448,135 Property operating expenses: Same-property 126,823 119,459 122,706 119,049 122,478 Acquisitions (2) 13,471 12,365 10,393 7,848 4,870 Non-residential/other, net (3) (5) 3,142 3,605 5,522 6,815 7,444 Total property operating expenses 143,436 135,429 138,621 133,712 134,792 Net operating income (NOI): Same-property 285,887 290,254 283,012 280,471 279,283 Acquisitions (2) 30,530 29,419 24,377 18,924 12,094 Non-residential/other, net (3) (5) 10,774 12,341 16,467 18,166 22,193 Straight-line rent concessions (4) 315 167 (388) 780 (227) Total NOI 327,506 $ 332,181$ 323,468$ 318,341$ 313,343$ Same-property metrics Operating margin 69% 71% 70% 70% 70% Annualized turnover 43% 39% 34% 37% 46% Financial occupancy 96.1% 96.2% 96.3% 95.9% 96.2% Delinquency as a % of scheduled rent (6) 0.5% 0.5% 0.5% 1.3% 0.7% Same-property net effective rate growth (7) New lease -0.5% 0.7% 1.0% -1.9% 0.6% Renewal 4.0% 4.2% 3.8% 3.8% 3.8% Blended 2.3% 3.0% 2.8% 1.6% 2.5% (1) (2) (3) (4) (5) (6) (7)Represents the percentage change in similar term lease tradeouts, including the impact of leasing incentives. The blended percentage change in all lease tradeouts, including the impact of leasing incentives, was 2.5% in the third quarter of 2025. In the fourth quarter of 2024, the Company recorded a non-cash charge to fully eliminate its remaining $2.8 million residential accounts receivable balance. Excluding this adjustment, reported delinquency would have been 0.6% for the fourth quarter of 2024. There were no non-cash charges recorded for all other periods. Includes consolidated communities only. Acquisitions include properties acquired which did not have comparable stabilized results as of January 1, 2024. Includes other expenses and intercompany eliminations pertaining to self-insurance. Non-residential/other, net consists of revenues generated from retail space, commercial properties, held for sale properties, disposition properties, properties undergoing significant construction activities that do not meet our redevelopment criteria and two communities located in the California counties of Santa Barbara and Santa Cruz, which the Company does not consider its core markets. Represents straight-line concessions for residential operating communities. Same-property revenues reflect concessions on a cash basis. Total Rental and Other Property Revenues reflect concessions on a straight-line basis in accordance with U.S. GAAP. See Company's Form 10-K and Form 10-Qs filed with the SEC for additional information S-8
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Table of Contents Apartment Homes Q3 '25 Q3 '24 % Change Q3 '25 Q3 '24 % Change Q3 '25 Q3 '24 % Change Q2 '25 % Change Southern California Los Angeles County 9,288 17.1% 2,697$ 2,659$ 1.4% 95.4% 95.1% 0.3% 76,254 $ 74,520$ 2.3% 75,787$ 0.6% Orange County 4,523 9.7% 2,740 2,676 2.4% 96.3% 96.4% -0.1% 37,951 36,854 3.0% 37,677 0.7% San Diego County 4,588 9.7% 2,729 2,671 2.2% 96.0% 96.6% -0.6% 38,207 37,689 1.4% 38,360 -0.4% Ventura County 2,255 4.7% 2,510 2,435 3.1% 96.1% 96.7% -0.6% 17,750 17,181 3.3% 17,458 1.7% Total Southern California 20,654 41.2% 2,693 2,641 2.0% 95.8% 95.9% -0.1% 170,162 166,244 2.4% 169,282 0.5% Northern California Santa Clara County 8,653 21.0% 3,133 3,035 3.2% 96.5% 96.7% -0.2% 83,480 80,808 3.3% 82,743 0.9% Alameda County 3,545 6.7% 2,620 2,581 1.5% 96.1% 96.6% -0.5% 28,863 28,391 1.7% 28,824 0.1% San Mateo County 1,864 4.5% 3,353 3,226 3.9% 96.9% 96.1% 0.8% 19,544 18,722 4.4% 19,283 1.4% Contra Costa County 2,619 5.4% 2,782 2,746 1.3% 95.6% 96.3% -0.7% 22,424 22,174 1.1% 22,398 0.1% San Francisco 1,356 2.6% 2,976 2,899 2.7% 95.8% 94.6% 1.3% 12,731 12,122 5.0% 12,646 0.7% Total Northern California 18,037 40.2% 2,992 2,913 2.7% 96.3% 96.4% -0.1% 167,042 162,217 3.0% 165,894 0.7% Seattle Metro 10,341 18.6% 2,288 2,222 3.0% 96.2% 96.6% -0.4% 75,506 73,300 3.0% 74,537 1.3% Total Same-Property 49,032 100.0% 2,718$ 2,653$ 2.5% 96.1% 96.2% -0.1% 412,710 $ 401,761$ 2.7% 409,713$ 0.7% Sequential Gross RevenuesGross Revenues Region - County Average Monthly Rental Rate Financial Occupancy Q3 '25 % of Actual NOI See Company's Form 10-K and Form 10-Qs filed with the SEC for additional information S-9
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Table of Contents Apartment Homes YTD 2025 YTD 2024 % Change YTD 2025 YTD 2024 % Change YTD 2025 YTD 2024 % Change Southern California Los Angeles County 9,288 17.3% 2,685$ 2,657$ 1.1% 95.3% 95.2% 0.1% 227,811 $ 221,018$ 3.1% Orange County 4,523 9.7% 2,721 2,640 3.1% 96.2% 96.5% -0.3% 112,968 109,298 3.4% San Diego County 4,588 9.8% 2,710 2,638 2.7% 96.0% 96.5% -0.5% 114,310 111,531 2.5% Ventura County 2,255 4.7% 2,487 2,400 3.6% 96.4% 96.7% -0.3% 52,778 50,802 3.9% Total Southern California 20,654 41.5% 2,677 2,621 2.1% 95.8% 95.9% -0.1% 507,867 492,649 3.1% Northern California Santa Clara County 8,653 20.8% 3,092 3,005 2.9% 96.6% 96.7% -0.1% 247,703 239,707 3.3% Alameda County 3,545 6.7% 2,598 2,580 0.7% 96.3% 96.0% 0.3% 86,176 84,033 2.6% San Mateo County 1,864 4.5% 3,294 3,202 2.9% 97.0% 96.1% 0.9% 57,774 55,238 4.6% Contra Costa County 2,619 5.4% 2,761 2,724 1.4% 96.2% 96.3% -0.1% 67,230 65,883 2.0% San Francisco 1,356 2.6% 2,936 2,883 1.8% 96.5% 95.0% 1.6% 37,938 35,772 6.1% Total Northern California 18,037 40.0% 2,956 2,892 2.2% 96.6% 96.3% 0.3% 496,821 480,633 3.4% Seattle Metro 10,341 18.5% 2,264 2,195 3.1% 96.3% 96.9% -0.6% 223,453 217,602 2.7% Total Same-Property 49,032 100.0% 2,692$ 2,631$ 2.3% 96.2% 96.3% -0.1% 1,228,141$ 1,190,884$ 3.1% Region - County Average Monthly Rental Rate Financial Occupancy Gross Revenues YTD 2025 % of Actual NOI See Company's Form 10-K and Form 10-Qs filed with the SEC for additional information S-9.1
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Table of Contents Q3 '25 Q3 '24 % Change % of Operating Expense Same-property operating expenses: Real estate taxes 44,723$ 44,487$ 0.5% 35.3% Utilities 28,695 26,625 7.8% 22.6% Personnel costs 24,126 22,656 6.5% 19.0% Maintenance and repairs 13,979 14,290 -2.2% 11.0% Administrative 6,799 6,701 1.5% 5.4% Insurance and other 8,501 7,719 10.1% 6.7% Total same-property operating expenses 126,823$ 122,478$ 3.5% 100.0% YTD 2025 YTD 2024 % Change % of Operating Expense Same-property operating expenses: Real estate taxes 132,302$ 131,483$ 0.6% 35.9% Utilities 79,413 73,265 8.4% 21.5% Personnel costs 70,719 67,251 5.2% 19.2% Maintenance and repairs 41,131 40,362 1.9% 11.1% Administrative 19,940 20,120 -0.9% 5.4% Insurance and other 25,483 24,309 4.8% 6.9% Total same-property operating expenses 368,988$ 356,790$ 3.4% 100.0% Based on 49,032 apartment homes See Company's Form 10-K and Form 10-Qs filed with the SEC for additional information S-10
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Table of Contents 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 - 93$ 218$ 311$ 573$ Q1 2025 Q2 2028 Q1 2030 Total Development Projects - Consolidated 543 - 93 218 311 573 Land Held for Future Development - Consolidated Other Projects - Various 100% - - 46 - 46 Total Development Pipeline - Consolidated 543 - 139$ 218$ 357$ (1) (2) Net of the estimated allocation to the retail component of the project, as applicable. For the third quarter of 2025, the Company's cost includes $1.0 million of capitalized interest and $0.5 million of capitalized overhead. See Company's Form 10-K and Form 10-Qs filed with the SEC for additional information S-11
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Table of Contents Revenue Generating Capital Expenditures (2) Q3 '25 Trailing 4 Quarters Same-property portfolio 26,212 $ 81,492$ Non-same property portfolio 684 7,769 Total revenue generating capital expenditures 26,896 $ 89,261$ Number of same-property interior renovations 1,028 3,375 Number of total consolidated interior renovations 1,107 3,713 Non-Revenue Generating Capital Expenditures (3) Q3 '25 Trailing 4 Quarters Non-revenue generating capital expenditures 32,152 $ 114,847$ Average apartment homes in quarter 55,058 54,787 Capital expenditures per apartment home 584 $ 2,096$ (1) (2) (3) The Company incurred $0.1 million of capitalized interest, $4.9 million of capitalized overhead and $0.1 million of co- investment fees related to redevelopment in Q3 2025. Represents revenue generating expenditures, such as full-scale redevelopments, interior unit turn renovations, enhanced amenities and certain sustainability initiatives that generate higher revenues or expense savings. Represents roof replacements, paving, building and mechanical systems, exterior painting, siding, etc. Non- revenue generating capital expenditures does not include costs related to retail, furniture and fixtures, expenditures in which the Company has been reimbursed or expects to be reimbursed, and expenditures incurred due to changes in governmental regulation that the Company would not have incurred otherwise. See Company's Form 10-K and Form 10-Qs filed with the SEC for additional information S-12
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Table of Contents Weighted Average Essex Ownership Percentage Apartment Homes Total Undepreciated Book Value Debt Amount Essex Book Value Weighted Average Borrowing Rate (1) Remaining Term of Debt (in Years) Three Months Ended September 30, 2025 Nine Months Ended September 30, 2025 Operating and Other Unconsolidated Joint Ventures Wesco I, III, IV, V, VI (2) 54% 5,765 2,082,865$ 1,372,967$ 78,700 $ 3.4% 1.2 30,208$ 91,237$ BEX IV, 500 Folsom 50% 732 617,194 176,400 138,170 3.4% 20.7 4,803 15,791 Other (3) 53% 986 386,279 291,476 94,500 3.6% 11.8 5,601 16,700 Total Operating and Other Unconsolidated Joint Ventures 7,483 3,086,338$ 1,840,843$ 311,370 $ 3.4% 4.7 40,612$ 123,728$ NOI 22,216 $ 67,575$ Depreciation (14,343) (43,127) Interest expense and other, net (8,358) (25,456) Equity income from unconsolidated technology co-investments 4,393 6,005 Insurance reimbursements, legal settlements, and other, net 15 - Gain on sale of co-investment communities 5,189 5,189 Net income from operating and other co-investments 9,112$ 10,186$ Weighted Average Preferred Return Weighted Average Expected Term Income from preferred equity investments 8,616 $ 29,728$ Income from early redemption of preferred equity investments 70 70 Preferred Equity Investments (4) 400,975$ 9.3% 1.4 8,686$ 29,798$ Total Co-investments 712,345 $ 17,798 $ 39,984$ (1) (2) (3) (4) NOI Income from Preferred Equity Investments Represents the year-to-date annual weighted average borrowing rate. As of September 30, 2025, the Company’s investments in Wesco I, Wesco III, and Wesco IV were classified as a liability of $93.2 million due to distributions received in excess of the Company's investment. As of September 30, 2025, the Company’s investment in Expo was classified as a liability of $2.7 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. As of September 30, 2025, the Company is invested in 14 preferred equity investments, including one preferred equity investment held with Wesco VII LLC. Essex Portion of NOI and Expenses See Company's Form 10-K and Form 10-Qs filed with the SEC for additional information S-13
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Table of Contents Acquisitions Essex Total Contract Apartment Ownership Price at Price per Average Location Homes Year Built Percentage Entity Date Pro Rata Share Apartment Home (1) Monthly Rent The Plaza Foster City, CA 307 2013 100% EPLP Jan-25 161,375 $ 512 $ 3,310$ One Hundred Grand (2) Foster City, CA 166 2016 N/A EPLP Feb-25 105,250 615 3,881 ROEN Menlo Park Menlo Park, CA 146 2017 100% EPLP Feb-25 78,750 539 3,647 Q1 2025 619 345,375 $ 546 $ Revere Campbell (2) Campbell, CA 168 2015 N/A EPLP May-25 118,000 $ 664 $ 4,014$ The Parc at Pruneyard Campbell, CA 252 1968 100% EPLP May-25 122,500 486 3,104 Q2 2025 420 240,500 $ 557 $ ViO San Jose, CA 234 2016 100% EPLP Sep-25 100,000 $ 417 $ 2,966$ Q3 2025 234 100,000 $ 417 $ 2025 Total 1,273 685,875 $ 526 $ Dispositions Essex Total Contract Apartment Ownership Price at Price per Location Homes Year Built Percentage Entity Date Pro Rata Share Apartment Home (1) Highridge (2) Rancho Palos Verdes, CA 255 1972 N/A EPLP Feb-25 127,000 $ 498 $ Q1 2025 255 127,000 $ 498 $ Essex Skyline Santa Ana, CA 350 2008 100% EPLP Apr-25 239,580 $ 685 $ Q2 2025 350 239,580 $ 685 $ The Grand Oakland, CA 243 2009 100% EPLP Jul-25 97,500 $ 399 $ 8th & Republican Seattle, WA 211 2016 50% JV Sep-25 47,425 436 Fourth & U Berkeley, CA 171 2010 100% EPLP Sep-25 52,300 284 Q3 2025 625 197,225 $ 369 $ 2025 Total 1,230 563,805 $ 496 $ (1) (2) Property Name Property Name Price per apartment home excludes value allocated to the retail component, as applicable. The noncontrolling members’ ownership interest in Highridge, a community owned by consolidated DownREIT entities prior to its disposition, were transferred to One Hundred Grand and Revere Campbell pursuant to the like-kind exchange rules under Section 1031 of the Internal Revenue Code of 1986, as amended. See Company's Form 10-K and Form 10-Qs filed with the SEC for additional information S-14
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Table of Contents Nine Months Ended September 30, 2025 (1) Low End High End Comments about 2025 Full-Year Guidance 983,155$ 1,314,600$ 1,319,200$ Includes a range of same-property NOI growth of 2.8% to 3.4%. Reflects investment activity through October Management Fees 7,078$ 9,200 9,400 Interest Expense Interest expense, before capitalized interest (191,560) (256,400) (255,400) Updated to reflect investment activity through October Interest capitalized 2,506 3,600 3,900 Net interest expense (189,054) (252,800) (251,500) Recurring Income and Expenses Interest and other income 12,210 16,400 16,800 FFO from co-investments 71,847 90,800 91,700 Guidance assumes approximately $200M in preferred equity redemptions for the full year, of which $118M has occurred through October General and administrative (43,644) (60,000) (61,000) Corporate-level property management expenses (36,768) (48,800) (49,200) Non-controlling interest (7,230) (9,900) (9,600) Total recurring income and expenses (3,585) (11,500) (11,300) Non-Core Income and Expenses Expensed acquisition and investment related costs (25) (25) (25) Tax benefit on unconsolidated technology co-investments 2,353 2,353 2,353 Realized and unrealized gains on marketable securities, net 4,059 4,059 4,059 Provision for credit losses (61) (61) (61) Equity income from unconsolidated technology co-investments 6,005 6,005 6,005 Loss on early retirement of debt, net (762) (762) (762) 70 70 70 General and administrative and other, net (7,863) (11,100) (10,800) Insurance reimbursements, legal settlements, and other, net 789 789 789 Total non-core income and expenses 4,565 1,328 1,628 Funds from Operations (2) 802,159$ 1,060,828$ 1,067,428$ Funds from Operations per diluted Share 12.03$ 15.91$ 16.01$ % Change - Funds from Operations -2.2% -0.5% 0.1% Core Funds from Operations (excludes non-core items) 797,594$ 1,059,500$ 1,065,800$ Core Funds from Operations per diluted Share 11.96$ 15.89$ 15.99$ % Change - Core Funds from Operations 2.4% 1.9% 2.5% EPS - Diluted 9.15$ 10.53$ 10.63$ Weighted average shares outstanding - FFO calculation 66,668 66,675 66,675 (1) (2) 2025 guidance excludes inestimable projected gain on sale of marketable securities, loss on early retirement of debt, political/legislative costs, and promote income until they are realized within the reporting period presented in the report. 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. 2025 Full-Year Guidance Range Total NOI from Consolidated Communities Income from early redemption of preferred equity investments All non-core items are excluded from the 2025 actuals and included in the non-core income and expense section of the FFO reconciliation. See Company's Form 10-K and Form 10-Qs filed with the SEC for additional information S-15
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Table of Contents Nine Months Ended September 30, 2025 Low High Low High EPS - diluted 9.15$ 1.39$ 1.49$ 10.53$ 10.63$ Conversion from GAAP share count (0.32) (0.05) (0.05) (0.36) (0.36) Depreciation and amortization 7.46 2.49 2.49 9.95 9.95 Noncontrolling interest related to Operating Partnership units 0.31 0.05 0.05 0.36 0.36 Gain on sale of real estate and land (4.57) - - (4.57) (4.57) FFO per share - diluted 12.03$ 3.88$ 3.98$ 15.91$ 16.01$ Tax benefit on unconsolidated technology co-investments (0.04) - - (0.04) (0.04) Realized and unrealized gains on marketable securities, net (0.06) - - (0.06) (0.06) Equity income from unconsolidated technology co-investments (0.09) - - (0.09) (0.09) Loss on early retirement of debt, net 0.01 - - 0.01 0.01 General and administrative and other, net 0.12 0.05 0.05 0.17 0.17 Insurance reimbursements, legal settlements, and other, net (0.01) - - (0.01) (0.01) Core FFO per share - diluted 11.96$ 3.93$ 4.03$ 15.89$ 15.99$ (1) With respect to the Company's guidance regarding its projected FFO and Core FFO, which guidance is set forth in the earnings release and on page S-15 of this supplement, a reconciliation of projected net income per share to projected FFO per share and projected Core FFO per share, as set forth in such guidance, is presented in the table below. 2025 Guidance Range (1) 4th Quarter 2025 Full-Year 2025 2025 guidance excludes inestimable projected gain on sale of real estate and land, gain on sale of marketable securities, loss on early retirement of debt, political/legislative costs, and promote income until they are realized within the reporting period presented in the report. See Company's Form 10-K and Form 10-Qs filed with the SEC for additional information S-15.1
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Data based on Essex Data Analytics forecasts and third-party projections. (1) 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) 2026E2025E Total Supply as a % of Stock Total MF/SF Supply Multifamily Supply Total Supply as a % of Stock Total MF/SF Supply Multifamily Supply Market 0.3%11,7005,9000.4%15,3008,900Los Angeles 0.5%5,4002,6000.4%4,3001,800Orange County 0.6%7,4004,7000.6%7,9005,100San Diego 0.4%1,2008000.2%600300Ventura 0.4%25,70014,0000.4%28,10016,100Southern California 0.2%1,7001,2000.2%1,7001,300San Francisco 0.3%3,4008000.3%3,2001,200Oakland 0.4%3,0001,1000.8%5,8003,800San Jose 0.3%8,1003,1000.4%10,7006,300Northern California 0.6%8,8004,3001.0%14,30010,200Seattle 0.4%42,60021,4000.5%53,10032,600Total ESSEX PROPERTY TRUST, INC. MSA Level Supply Forecast: 2025E – 2026E See Company’s Form 10-K and Form 10-Qs filed with the SEC for additional information S-16 Table of Contents
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ESSEX PROPERTY TRUST, INC. Essex Value Creation Through Capital Allocation: 2024-2025 See Company’s Form 10-K and Form 10-Qs filed with the SEC for additional information S-16.1 Essex has targeted acquisitions in select submarkets of Northern California — the region with the strongest rent growth outlook over the next several years — while simultaneously improving the age of the portfolio and generating accretion relative to dispositions Approximately 90% of Essex’s net acquisition activity since 2024 has been in high-quality Northern California submarkets (+$636M) Source: Essex, includes transactions completed from January 2024 through September 2025 1. Net operating income over the next 12 months, assuming market rents, operating expenses standard to the market, and less an estimate for capital expenditures per unit, divided by the gross sales price. 2. Market cap rate including yield uplift from Essex operating model efficiencies. 3. The weighted average age of recent acquisitions is ~15 years excluding the BEXAEW and BEX II joint venture portfolio buyouts. 4. Net acquisitions have been funded on a leverage-neutral basis with free cash flow and preferred equity redemptions. Accretion applies to match-funded acquisitions. Northern California 11 Properties; +$991M 3 Properties; -$355M ViO Revere Campbell Acquisition Disposition Units Price ($M) Market Cap Rate(1) Essex Yield(2) Age(3) Total Acquisitions 3,276 $1,489 4.8% 5.2% 22 Total Dispositions 1,693 $769 4.3% 4.8% 38 Net Spread/Accretion (4) 1,583 $719 0.5% 0.4% -16 Investments Summary at Pro Rata Share (All Regions) Table of Contents
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Table of Contents Adjusted EBITDAre Reconciliation Three Months Ended September 30, (Dollars in thousands) 2025 Net income available to common stockholders 164,621 $ Adjustments: Net income attributable to noncontrolling interest 8,103 Interest expense, net (1) 63,331 Depreciation and amortization 151,489 Income tax provision (20) Gain on sale of real estate and land (62,320) Gain on sale of co-investment communities (5,189) Co-investment EBITDAre adjustments 22,486 EBITDAre 342,501 Realized and unrealized gains on marketable securities, net (1,658) Provision for credit losses 50 Equity income from unconsolidated technology co-investments (4,393) Tax benefit on unconsolidated technology co-investments (1,958) General and administrative and other, net 3,926 Insurance reimbursements, legal settlements, and other, net (89) Income from early redemption of preferred equity investments (70) Expensed acquisition and investment related costs 25 Adjusted EBITDAre 338,334 $ (1) 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: 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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Table of Contents Annualized Turnover Financial Occupancy New Lease Net Effective Rate Growth and Renewal Net Effective Rate Growth Disposition Yield Acquisition Yield Encumbered Funds From Operations ("FFO") and Core FFO Interest Expense, Net Three Months Ended Nine Months Ended September 30, September 30, September 30, September 30, (Dollars in thousands) 2025 2024 2025 2024 Interest expense 64,660 $ 59,232$ 192,654$ 174,285$ Adjustments: Total return swap income (1,329) (807) (3,600) (2,232) Interest expense, net 63,331 $ 58,425$ 189,054$ 172,053$ 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. 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 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: Encumbered means any mortgage, deed of trust, lien, charge, pledge, security interest, security agreement or other encumbrance of any kind. 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. 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 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 represent the percentage change in similar term 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 S-17.2
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Table of Contents Net Indebtedness Divided by Adjusted EBITDAre September 30, (Dollars in thousands) 2025 Total consolidated debt, net 6,661,909 $ Total debt from co-investments at pro rata share 964,201 Adjustments: Consolidated unamortized premiums, discounts, and debt issuance costs 31,425 Pro rata co-investments unamortized premiums, discounts, and debt issuance costs 3,064 Consolidated cash and cash equivalents-unrestricted (65,959) Pro rata co-investment cash and cash equivalents-unrestricted (38,195) Marketable securities (84,116) Net Indebtedness 7,472,329 $ Adjusted EBITDAre, annualized (1) 1,353,336$ Other EBITDAre normalization adjustments, net, annualized (2) (351) Adjusted EBITDAre, normalized and annualized 1,352,985 $ 5.5 (1) (2) Net Operating Income ("NOI") and Same-Property NOI Reconciliations Three Months Ended Nine Months Ended September 30, September 30, September 30, September 30, (Dollars in thousands) 2025 2024 2025 2024 Earnings from operations 210,399 $ 128,790$ 747,180$ 398,599$ Adjustments: Corporate-level property management expenses 12,216 11,610 36,768 34,331 Depreciation and amortization 151,489 146,439 454,277 431,785 Management and other fees from affiliates (2,361) (2,563) (7,078) (7,849) General and administrative 18,058 29,067 51,507 67,374 Expensed acquisition and investment related costs 25 - 25 68 Gain on sale of real estate and land (62,320) - (299,524) - NOI 327,506 313,343 983,155 924,308 Less: Non-same property NOI (41,619) (34,060) (124,002) (90,214) Same-Property NOI 285,887 $ 279,283$ 859,153$ 834,094$ Net Indebtedness Divided by Adjusted EBITDAre, normalized and annualized Adjustments made for properties in lease-up, acquired, or disposed during the most recent quarter and other partial quarter activity, multiplied by four. 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: 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: Based on the amount for the most recent quarter, multiplied by four. See Company's Form 10-K and Form 10-Qs filed with the SEC for additional information S-17.3
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Table of Contents Public Bond Covenants Same-Property Revenue Growth with Concessions on a GAAP basis Three Months Ended Nine Months Ended September 30, September 30, September 30, September 30, (Dollars in millions) 2025 2024 2025 2024 Reported rental revenue (1) 412.7$ 401.8$ 1,228.1$ 1,190.9$ Straight-line rent impact to rental revenue 0.1 (0.3) (0.1) (0.8) GAAP rental revenue 412.8 $ 401.5$ 1,228.0$ 1,190.1$ % change - reported rental revenue 2.7% 3.1% % change - GAAP rental revenue 2.8% 3.2% (1) Secured Debt Unencumbered NOI to Adjusted Total NOI The calculation of this ratio is presented in the table below: Annualized (Dollars in thousands) Q3 '25 (1) NOI 1,310,024 $ Adjustments: Pro forma NOI from real estate assets sold and/or acquired 1,824 Other, net (2) (5,157) Adjusted Total NOI 1,306,691 Less: Encumbered NOI (87,166) Unencumbered NOI 1,219,525 $ Encumbered NOI 87,166 $ Unencumbered NOI 1,219,525 Adjusted Total NOI 1,306,691 $ Unencumbered NOI to Adjusted Total NOI 93% (1) (2) Public Bond Covenants refer to certain covenants set forth in instruments governing the Company's unsecured indebtedness. These instruments require the Company to meet specified financial covenants, including covenants relating to net worth, fixed charge coverage, debt service coverage, the amounts of total indebtedness and secured indebtedness, leverage and certain investment limitations. These covenants may restrict the Company's ability to expand or fully pursue its business strategies. The Company's ability to comply with these covenants may be affected by changes in the Company's operating and financial performance, changes in general business and economic conditions, adverse regulatory developments or other events adversely impacting it. The breach of any of these covenants could result in a default under the Company's indebtedness, which could cause those and other obligations to become due and payable. If any of the Company's indebtedness is accelerated, the Company may not be able to repay it. For risks related to failure to comply with these covenants, see "Item 1A: Risk Factors - Risks Related to Our Indebtedness and Financings" in the Company's annual report on Form 10-K and other reports filed by the Company with the Securities and Exchange Commission ("SEC"). The ratios set forth on page S-6 in the section titled "Public Bond Covenants" are provided only to show the Company's compliance with certain specified covenants that are contained in indentures related to the Company's issuance of Senior Notes, which indentures are filed by the Company with the SEC. See, for example, the indenture and supplemental indenture dated February 18, 2025, filed by the Company as Exhibit 4.1 and Exhibit 4.2 to the Company's Form 8-K, filed on February 18, 2025. These ratios should not be used for any other purpose, including without limitation to evaluate the Company's financial condition or results of operations, nor do they indicate the Company's covenant compliance as of any other date or for any other period. The capitalized terms in the disclosure are defined in the indentures filed by the Company with the SEC and may differ materially from similar terms used by other companies that present information about their covenant compliance. 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. 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, 2025, annualized, is calculated by dividing Unencumbered NOI, annualized for the three months ended September 30, 2025 and as further adjusted for pro forma NOI for properties acquired or sold during the recent quarter, by Adjusted Total NOI as annualized. The calculation and reconciliation of NOI is set forth in "Net Operating Income ("NOI") and Same-Property NOI Reconciliations" above. This ratio is presented by the Company because it provides rating agencies and investors an additional means of comparing the Company's ability to service debt obligations to that of other companies. This table is based on the amounts for the most recent quarter, multiplied by four. Includes intercompany eliminations pertaining to self-insurance and other expenses. Same-property rental revenue reflects concessions on a cash basis. See Company's Form 10-K and Form 10-Qs filed with the SEC for additional information S-17.4