Exhibit 99.1

Essex Announces third Quarter 2019 Results

San Mateo, California—October 23, 2019—Essex Property Trust, Inc. (NYSE: ESS) (the “Company”) announced today its third quarter 2019 earnings results and related business activities.

Net Income, Funds from Operations (“FFO”), and Core FFO per diluted share for the quarter ended September 30, 2019 are detailed below.

	Three Months Ended September 30,			Nine Months Ended September 30,
			%			%
	2019	2018	Change	2019	2018	Change
Per Diluted Share
Net Income	$1.51	$1.22	23.8%	$4.71	$4.12	14.3%
Total FFO	$3.50	$3.22	8.7%	$10.19	$9.74	4.6%
Core FFO	$3.35	$3.15	6.3%	$9.92	$9.38	5.8%

Third Quarter 2019 Highlights:

• Reported Net Income per diluted share for the third quarter of 2019 of $1.51, compared to $1.22 in the third quarter of 2018.

• Grew Core FFO per diluted share by 6.3% compared to the third quarter of 2018, exceeding the midpoint of the guidance range by $0.04.

• Achieved both same-property gross revenue and net operating income (“NOI”) growth of 3.1% compared to the third quarter of 2018.

• Acquired three apartment communities for a total contract price of $414.7 million.

• Increased full-year Net Income per diluted share guidance range to $6.04 to $6.14. Provided Net Income guidance range for the fourth quarter of $1.33 to $1.43 per diluted share.

• Increased full-year Total FFO per diluted share guidance range to $13.50 to $13.60. Provided Total FFO guidance range for the fourth quarter of $3.31 to $3.41 per diluted share.

• Raised full-year Core FFO per diluted share guidance by $0.05 per share at the midpoint to a range of $13.28 to $13.38. Provided Core FFO guidance range for the fourth quarter of $3.36 to $3.46 per diluted share.

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

www.essex.com

“We are pleased to report another quarter of healthy growth resulting in Core FFO at the top end of our guidance range. As a result, we are increasing our full-year Core FFO per share guidance midpoint for the third time this year. The dramatic reduction in our cost of capital since January has allowed us to exceed the high-end of our acquisition targets and we remain on the hunt for accretive opportunities. Looking forward, our supply-constrained West Coast markets continue to add jobs and grow incomes at a sufficient pace to maintain market rent growth near their long term averages.” commented Michael Schall, President and CEO of the Company.

  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 gross revenues for the quarter ended September 30, 2019 compared to the quarter ended September 30, 2018, and the sequential percentage change for the quarter ended September 30, 2019 compared to the quarter ended June 30, 2019, by submarket for the Company:

	Q3 2019 vs. Q3 2018	Q3 2019 vs. Q2 2019	% of Total
	Gross Revenues	Gross Revenues	Q3 2019 Revenues
Southern California
Los Angeles County	2.7%	0.2%	18.9%
Orange County	1.8%	0.0%	10.8%
San Diego County	2.3%	0.3%	8.5%
Ventura County and Other	3.5%	0.9%	4.9%
Total Southern California	2.5%	0.3%	43.1%
Northern California
Santa Clara County	3.6%	0.6%	18.8%
Alameda County	3.4%	1.4%	6.9%
San Mateo County	2.5%	-0.2%	5.0%
Contra Costa County	2.9%	0.8%	4.8%
San Francisco	5.2%	0.3%	3.4%
Total Northern California	3.5%	0.6%	38.9%
Seattle Metro	4.1%	1.3%	18.0%
Same-Property Portfolio	3.1%	0.6%	100.0%

	Year-Over-Year Growth				Year-Over-Year Growth
	Q3 2019 compared to Q3 2018				YTD 2019 compared to YTD 2018
	Gross Revenues	Operating Expenses	NOI		Gross Revenues	Operating Expenses	NOI
Southern California	2.5%	3.5%	2.0%		2.9%	3.7%	2.6%
Northern California	3.5%	5.8%	2.7%		3.5%	3.4%	3.6%
Seattle Metro	4.1%	-1.5%	6.6%		3.4%	0.8%	4.5%
Same-Property Portfolio	3.1%	3.3%	3.1%		3.2%	3.0%	3.3%

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	Sequential Growth
	Q3 2019 compared to Q2 2019
	Gross Revenues	Operating Expenses	NOI
Southern California	0.3%	4.5%	-1.4%
Northern California	0.6%	5.1%	-0.8%
Seattle Metro	1.3%	5.7%	-0.3%
Same-Property Portfolio	0.6%	4.9%	-1.0%
	Financial Occupancies
	Quarter Ended
	9/30/2019	6/30/2019	9/30/2018
Southern California	96.1%	96.7%	96.5%
Northern California	95.8%	96.6%	96.3%
Seattle Metro	95.9%	96.4%	96.1%
Same-Property Portfolio	96.0%	96.6%	96.4%

Investment Activity

Real Estate

In August 2019, Wesco V, LLC (“Wesco V”), a joint venture in which the Company owns a 50.0% interest, acquired The Courtyards at 65^th Street, a 331 unit apartment home community located in Emeryville, CA, for $178.0 million. The property provides convenient commuter access to San Francisco and Oakland and is located near the Company’s Emme and Avenue 64 communities.

In August 2019, BEX IV, LLC (“BEX IV”), a new joint venture in which the company owns a 50.1% interest, acquired 777 Hamilton Apartments for $148.0 million in Menlo Park, CA. Built in 2017, the 195 unit apartment home community is adjacent to Facebook’s global headquarters.

In September 2019, the Company purchased Township, a 132 unit apartment home community located in Redwood City, CA, for $88.7 million. The property is located in a highly desirable commuter location and in close proximity to the Company’s Radius Apartments. As part of the transaction, the Company assumed a $44.3 million mortgage with an effective interest rate of 2.9% and a maturity date of May 2025.

Preferred Equity

In September 2019, the Company received $31.1 million from the redemption of two preferred equity investments. The Company recorded $1.7 million of income from prepayment penalties as a result of the early redemptions, which has been excluded from Core FFO.

Subsequent to quarter end, the Company received $15.8 million from the redemption of a preferred equity investment in a property located in San Jose, CA, including $0.2 million of early redemption fees.

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Development Activity

The table below represents the development communities in lease-up and the current leasing status as of October 22, 2019.

Project Name	Location	Total Apartment Homes	ESS Ownership	% Leased as of 10/22/19	Status
Station Park Green - Phase II	San Mateo, CA	199	100%	63.3%	In Lease-Up
Mylo	Santa Clara, CA	476	100%	27.3%	In Lease-Up
500 Folsom	San Francisco, CA	537	50%	10.8%	In Lease-Up
Total/Average % Leased		1,212		25.9%

liquidity and balance sheet

Common Stock

During the third quarter of 2019, the Company issued 228,271 shares of its common stock totaling $73.4 million in gross proceeds through its equity distribution program, at an average price per share of $321.56.

Balance Sheet

In August 2019, the Company issued $400.0 million of 10-year senior unsecured notes due in 2030 bearing an interest rate per annum of 3.0% and an effective yield of 3.2%. The proceeds were used to prepay, with no prepayment penalties, certain secured indebtedness under outstanding mortgage notes, including the pre-payment of $289.1 million of secured debt maturing in 2020, as well as to repay indebtedness under its unsecured lines of credit and for other general corporate and working capital purposes.

Subsequent to quarter end, the Company issued $150.0 million of 10-year senior unsecured notes due in January 2030 bearing an interest rate per annum of 3.0% and an effective interest rate of 2.8%. The notes were issued as additional notes pursuant to the notes previously issued in August 2019 described above. The Company expects to use the net proceeds to prepay certain secured mortgages maturing in 2020.

As of October 22, 2019, the Company had $1.0 billion in undrawn capacity on its unsecured credit facilities.

Guidance

For the third quarter of 2019, the Company exceeded the midpoint of the guidance range provided in its second quarter 2019 earnings release for Core FFO by $0.04 per share.

The following table provides a reconciliation of third quarter 2019 Core FFO per share to the midpoint of the guidance provided in the second quarter 2019 earnings release, which was dated July 24, 2019.

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		Per Diluted Share
Projected midpoint of Core FFO per share for Q3 2019	$	3.31
NOI from consolidated communities		0.02
FFO from co-investments		0.02
Interest expense		0.02
G&A and other		(0.02)
Core FFO per share for Q3 2019 reported	$	3.35

The table below provides key changes to the 2019 full-year assumptions for Net Income, Total FFO, Core FFO per diluted share, and same-property growth. For additional details regarding the Company’s 2019 assumptions, please see page S-14 of the accompanying supplemental financial information. For the fourth quarter of 2019, the Company has established a range for Core FFO per diluted share of $3.36 to $3.46.

2019 Full-Year Guidance

	Previous Range	Previous Midpoint		Revised Range	Revised Midpoint
Per Diluted Share
Net Income	$5.84 - $6.02	$5.93		$6.04 - $6.14	$6.09
Total FFO	$13.31 - $13.49	$13.40		$13.50 - $13.60	$13.55
Core FFO	$13.19 - $13.37	$13.28		$13.28 - $13.38	$13.33
Same-Property Growth
Gross Revenues	3.0% to 3.5%	3.3%		3.1% to 3.4%	3.3%
Operating Expenses	2.0% to 2.4%	2.2%		2.0% to 2.4%	2.2%
NOI	3.2% to 4.1%	3.7%		3.4% to 3.9%	3.7%

Conference Call with Management

The Company will host an earnings conference call with management to discuss its quarterly results on Thursday, October 24, 2019 at 10 a.m. PT (1 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 2019 earnings link. To access the replay, dial (844) 512-2921 using the replay pin number 13694650. If you are unable to access the information via the Company’s website, please contact the Investor Relations Department at investors@essex.com or by calling (650) 655-7800.

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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 249 apartment communities comprising approximately 60,000 apartment homes with an additional 7 properties in various stages of active development. Additional information about the Company can be found on the Company’s website at www.essex.com.

This press release and accompanying supplemental financial information has been furnished to the Securities and Exchange Commission electronically on Form 8-K and can be accessed from the Company’s website at www.essex.com. If you are unable to obtain the information via the Web, please contact the Investor Relations Department at (650) 655-7800.

FFO RECONCILIATION

FFO, as defined by the National Association of Real Estate Investment Trusts (“NAREIT”), is generally considered by industry analysts as an appropriate measure of performance of an equity REIT. Generally, FFO adjusts the net income of equity REITs for non-cash charges such as depreciation and amortization of rental properties, impairment charges, gains on sales of real estate and extraordinary items. Management considers FFO and FFO which excludes non-core items, which is referred to as “Core FFO,” to be useful supplemental operating performance measures of an equity REIT because, together with net income and cash flows, FFO and Core FFO provide investors with additional bases to evaluate the operating performance and ability of a REIT to incur and service debt and to fund acquisitions and other capital expenditures and to pay dividends. By excluding gains or losses related to sales of depreciated operating properties and excluding real estate depreciation (which can vary among owners of identical assets in similar condition based on historical cost accounting and useful life estimates), FFO can help investors compare the operating performance of a real estate company between periods or as compared to different companies. By further adjusting for items that are not considered part of the Company’s core business operations, Core FFO allows investors to compare the core operating performance of the Company to its performance in prior reporting periods and to the operating performance of other real estate companies without the effect of items that by their nature are not comparable from period to period and tend to obscure the Company’s actual operating results. FFO and Core FFO do not represent net income or cash flows from operations as defined by U.S. generally accepted accounting principles (“GAAP”) and are not intended to indicate whether cash flows will be sufficient to fund cash needs. These measures should not be considered as alternatives to net income as an indicator of the REIT's operating performance or to cash flows as a measure of liquidity. FFO and Core FFO do not measure whether cash flow is sufficient to fund all cash needs including principal amortization, capital improvements and distributions to stockholders. FFO and Core FFO also do not represent cash flows generated from operating, investing or financing activities as defined under GAAP. Management has consistently applied the NAREIT definition of FFO to all periods presented. However, there is judgment involved and other REITs’ calculation of FFO may vary from the NAREIT definition for this measure, and thus their disclosures of FFO may not be comparable to the Company’s calculation.

The following table sets forth the Company’s calculation of diluted FFO and Core FFO for the three and nine months ended September 30, 2019 and 2018 (in thousands, except for share and per share amounts):

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		Three Months Ended September 30,								Nine Months Ended September 30,
Funds from Operations attributable to common stockholders and unitholders		2019				2018				2019				2018
Net income available to common stockholders		$	99,335			$	80,975			$	310,468			$	272,333
Adjustments:
Depreciation and amortization			120,809				120,852				360,842				359,287
Gains not included in FFO			-				-				(32,405	)			(22,244	)
Depreciation and amortization from unconsolidated co-investments			15,483				15,766				45,304				47,345
Noncontrolling interest related to Operating Partnership units			3,464				2,789				10,863				9,381
Depreciation attributable to third party ownership and other			(242	)			(234	)			(708	)			(699	)
Funds from Operations attributable to common stockholders and unitholders		$	238,849			$	220,148			$	694,364			$	665,403
FFO per share – diluted		$	3.50			$	3.22			$	10.19			$	9.74
Expensed acquisition and investment related costs		$	13			$	31			$	69			$	156
Deferred tax expense on unrealized gain on unconsolidated co-investment (1)			1,457				-				1,457				-
(Gain) loss on sale of marketable securities			(239	)			(120	)			(737	)			(669	)
Unrealized losses (gains) on marketable securities			174				(1,180	)			(4,280	)			(426	)
Equity income from non-core co-investment (2)			(4,247	)			-				(4,561	)			-
Interest rate hedge ineffectiveness (3)			-				(35	)			181				61
Gain on early retirement of debt, net			(5,475	)			-				(7,143	)			-
Gain on early retirement of debt from unconsolidated co-investment			-				(3,662	)			-				(3,662	)
Co-investment promote income			-				-				(809	)			(20,541	)
Income from early redemption of preferred equity investments			(1,699	)			-				(2,531	)			(1,602	)
General and administrative and other, net			-				141				-				2,574
Insurance reimbursements and legal settlements, net			(15	)			(111	)			(263	)			(561	)
Core Funds from Operations attributable to common stockholders and unitholders		$	228,818			$	215,212			$	675,747			$	640,733
Core FFO per share – diluted		$	3.35			$	3.15			$	9.92			$	9.38
Weighted average number of shares outstanding diluted (4)			68,229,823				68,339,057				68,117,569				68,328,370

₍₁₎ A deferred tax expense was recorded during the third quarter of 2019 related to the $4.4 million net unrealized gain on the Real Estate Technology Ventures, L.P. co-investment discussed below.

⁽²⁾ Represents the Company's share of co-investment income from Real Estate Technology Ventures, L.P. Income for the third quarter of 2019 includes a net unrealized gain of $4.4 million.

₍₃₎ Interest rate swaps are generally adjusted to fair value through other comprehensive income (loss). However, because certain of the Company’s interest rate swaps do not have a 0% LIBOR floor, while related hedged debt in these cases is subject to a 0% LIBOR floor, the portion of the change in fair value of these interest rate swaps attributable to this mismatch, if any, is recorded as noncash interest rate hedge ineffectiveness through interest expense. On January 1, 2019, the Company adopted ASU No. 2017-12 "Derivatives and Hedging - Targeted Improvements to Accounting for Hedging Activities," which resulted in a cumulative effect adjustment of $181,000 from interest expense to accumulated other comprehensive income.

₍₄₎ 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 all DownREIT limited partnership units for which the Operating Partnership has the ability and intention to redeem the units for cash and does not consider them to be common stock equivalents.

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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 condensed 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 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,
		2019				2018				2019				2018
Earnings from operations		$	124,039			$	113,897			$	364,294			$	362,960
Adjustments:
Corporate-level property management expenses			8,255				7,761				24,620				23,313
Depreciation and amortization			120,809				120,852				360,842				359,287
Management and other fees from affiliates			(2,428	)			(2,307	)			(7,023	)			(6,812	)
General and administrative			11,345				10,601				38,731				36,539
Expensed acquisition and investment related costs			13				31				69				156
Gain on sale of real estate and land			-				-				-				(22,244	)
NOI			262,033				250,835				781,533				753,199
Less: Non-same property NOI			(16,521	)			(12,640	)			(45,218	)			(40,526	)
Same-Property NOI		$	245,512			$	238,195			$	736,315			$	712,673

Safe Harbor Statement Under The Private Litigation Reform Act of 1995:

This press release includes “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements are statements which are not historical facts, including statements regarding the Company's expectations, estimates, assumptions, hopes, intentions, beliefs and strategies regarding the future. Words such as “expects,” “assumes,” “anticipates,” “may,” “will,” “intends,” “plans,” “projects,” “believes,” “seeks,” “future,” “estimates,” and variations of such words and similar expressions are intended to identify such forward-looking statements. Such forward-looking statements include, among other things, statements regarding the Company’s intent, beliefs or expectations with respect to the timing of completion of current development and redevelopment projects and the stabilization of such projects, the timing of lease-up and occupancy of its apartment communities, the anticipated operating performance of its apartment communities, the total projected costs of development and redevelopment projects, co-investment activities, qualification as a REIT under the Internal Revenue Code of 1986, as amended, the real estate markets in the geographies in which the Company’s properties are located and in the United States in general, the adequacy of future cash flows to meet anticipated cash needs, its financing activities and the use of proceeds from such activities, the availability of debt and equity financing, general economic conditions including the potential impacts from the economic conditions, trends affecting the Company’s financial condition or results of operations, changes

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to U.S. tax laws and regulations in general or specifically related to REITs or real estate, changes to laws and regulations in jurisdictions in which communities the Company owns are located, and other information that is not historical information.

While the Company's management believes the assumptions underlying its forward-looking statements are reasonable, such forward-looking statements involve known and unknown risks, uncertainties and other factors, many of which are beyond the Company’s control, which could cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. The Company cannot assure the future results or outcome of the matters described in these statements; rather, these statements merely reflect the Company’s current expectations of the approximate outcomes of the matters discussed. Factors that might cause the Company’s actual results, performance or achievements to differ materially from those expressed or implied by these forward-looking statements include, but are not limited to, the following: the Company may fail to achieve its business objectives; the actual completion of development and redevelopment projects may be subject to delays; the stabilization dates of such projects may be delayed; the Company may abandon or defer development or redevelopment projects for a number of reasons, including changes in local market conditions which make development less desirable, increases in costs of development, increases in the cost of capital or lack of capital availability, resulting in losses; the total projected costs of current development and redevelopment projects may exceed expectations; such development and redevelopment projects may not be completed; development and redevelopment projects and acquisitions may fail to meet expectations; estimates of future income from an acquired property may prove to be inaccurate; occupancy rates and rental demand may be adversely affected by competition and local economic and market conditions; there may be increased interest rates and operating costs; the Company may be unsuccessful in the management of its relationships with its co-investment partners; future cash flows may be inadequate to meet operating requirements and/or may be insufficient to provide for dividend payments in accordance with REIT requirements; there may be a downturn in general economic conditions, the real estate industry, and the markets in which the Company's communities are located; changes in laws or regulations; the terms of any refinancing may not be as favorable as the terms of existing indebtedness; unexpected difficulties in leasing of development projects; volatility in financial and securities markets; the Company’s failure to successfully operate acquired properties; unforeseen consequences from cyber-intrusion; the Company’s inability to maintain our investment grade credit rating with the rating agencies; 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, quarterly reports on Form 10-Q, and other reports that the Company files with the SEC from time to time. 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, 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

Rylan Burns

Director of Investor Relations

(650) 655-7800

rburns@essex.com

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Q3 2019 Supplemental

Table of Contents

	Page(s)
Consolidated Operating Results	S-1 – S-2
Consolidated Funds From Operations	S-3
Consolidated Balance Sheets	S-4
Debt Summary – September 30, 2019	S-5
Capitalization Data, Public Bond Covenants, Credit Ratings, and Selected Credit Ratios – September 30, 2019	S-6
Portfolio Summary by County – September 30, 2019	S-7
Operating Income by Quarter – September 30, 2019	S-8
Same-Property Revenue Results by County – Quarters ended September 30, 2019 and 2018, and June 30, 2019	S-9
Same-Property Revenue Results by County – Nine months ended September 30, 2019 and 2018	S-9.1
Same-Property Operating Expenses – Quarter and Year to Date as of September 30, 2019 and 2018	S-10
Development Pipeline – September 30, 2019	S-11
Redevelopment Pipeline – September 30, 2019	S-12
Capital Expenditures – September 30, 2019	S-12.1
Co-investments and Preferred Equity Investments – September 30, 2019	S-13
Assumptions for 2019 FFO Guidance Range	S-14
Reconciliation of Projected EPS, FFO and Core FFO per diluted share	S-14.1
Summary of Apartment Community Acquisitions and Dispositions Activity	S-15
Preliminary 2020 MSA Level Forecast: Supply, Jobs and Apartment Market Conditions	S-16
Essex Markets Continue to Benefit From Superior Long-Term Income and Employment Growth	S-16.1
Reconciliations of Non-GAAP Financial Measures and Other Terms	S-17.1 – S-17.4

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

Consolidated Operating Results (Dollars in thousands, except share and per share amounts)		Three Months Ended September 30,								Nine Months Ended September 30,
		2019				2018				2019				2018
Revenues:
Rental and other property		$	364,504			$	348,610			$	1,077,767			$	1,040,083
Management and other fees from affiliates			2,428				2,307				7,023				6,812
			366,932				350,917				1,084,790				1,046,895
Expenses:
Property operating			102,471				97,775				296,234				286,884
Corporate-level property management expenses			8,255				7,761				24,620				23,313
Depreciation and amortization			120,809				120,852				360,842				359,287
General and administrative			11,345				10,601				38,731				36,539
Expensed acquisition and investment related costs			13				31				69				156
			242,893				237,020				720,496				706,179
Gain on sale of real estate and land			-				-				-				22,244
Earnings from operations			124,039				113,897				364,294				362,960
Interest expense, net (1)			(52,742	)			(53,012	)			(156,477	)			(159,653	)
Interest and other income			8,685				8,437				29,293				21,241
Equity income from co-investments			21,700				16,788				54,935				64,611
Deferred tax expense on unrealized gain on unconsolidated co-investment			(1,457	)			-				(1,457	)			-
Gain on early retirement of debt, net			5,475				-				7,143				-
Gain on remeasurement of co-investment			-				-				31,535				-
Net income			105,700				86,110				329,266				289,159
Net income attributable to noncontrolling interest			(6,365	)			(5,135	)			(18,798	)			(16,826	)
Net income available to common stockholders		$	99,335			$	80,975			$	310,468			$	272,333
Net income per share - basic		$	1.51			$	1.23			$	4.72			$	4.12
Shares used in income per share - basic			65,850,524				66,052,108				65,757,914				66,047,990
Net income per share - diluted		$	1.51			$	1.22			$	4.71			$	4.12
Shares used in income per share - diluted			65,973,085				66,103,812				65,857,660				66,093,004

⁽¹⁾ Refer to page S-17.2, the section titled "Interest Expense, Net" for additional information.

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

S-1

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

Consolidated Operating Results Selected Line Item Detail		Three Months Ended September 30,								Nine Months Ended September 30,
(Dollars in thousands)		2019				2018				2019				2018
Rental and other property (1)
Rental income		$	358,001			$	342,246			$	1,058,973			$	1,021,742
Other property			6,503				6,364				18,794				18,341
Rental and other property		$	364,504			$	348,610			$	1,077,767			$	1,040,083
Property operating expenses
Real estate taxes		$	39,290			$	38,675			$	114,993			$	112,423
Administrative			21,678				19,733				63,718				61,832
Maintenance and repairs			21,324				19,899				61,929				59,076
Utilities			20,179				19,468				55,594				53,553
Property operating expenses		$	102,471			$	97,775			$	296,234			$	286,884
Interest and other income
Marketable securities and other income		$	8,605			$	7,026			$	24,013			$	19,585
Gain (loss) on sale of marketable securities			239				120				737				669
Unrealized (losses) gains on marketable securities			(174	)			1,180				4,280				426
Insurance reimbursements and legal settlements, net			15				111				263				561
Interest and other income		$	8,685			$	8,437			$	29,293			$	21,241
Equity income from co-investments
Equity income from co-investments		$	4,430			$	4,097			$	14,531			$	12,878
Income from preferred equity investments			11,324				9,029				31,633				25,928
Equity income from non-core co-investment			4,247				-				4,561				-
Gain on sale of co-investment communities			-				-				870				-
Gain on early retirement of debt from unconsolidated co-investment			-				3,662				-				3,662
Co-investment promote income			-				-				809				20,541
Income from early redemption of preferred equity investments			1,699				-				2,531				1,602
Equity income from co-investments		$	21,700			$	16,788			$	54,935			$	64,611
Noncontrolling interest
Limited partners of Essex Portfolio, L.P.		$	3,464			$	2,789			$	10,863			$	9,381
DownREIT limited partners' distributions			2,016				1,590				5,225				4,770
Third-party ownership interest			885				756				2,710				2,675
Noncontrolling interest		$	6,365			$	5,135			$	18,798			$	16,826

⁽¹⁾ On January 1, 2019, the Company adopted ASU No. 2016-02 “Leases.” As a result of this adoption certain amounts previously classified as other property revenue have been reclassified to rental income. Prior period amounts have been adjusted to conform to the current period’s presentation.

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

S-2

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

Consolidated Funds From Operations (1) (Dollars in thousands, except share and per share amounts and in footnotes)		Three Months Ended September 30,												Nine Months Ended September 30,
		2019				2018				% Change				2019				2018				% Change
Funds from operations attributable to common stockholders and unitholders (FFO)
Net income available to common stockholders		$	99,335			$	80,975							$	310,468			$	272,333
Adjustments:
Depreciation and amortization			120,809				120,852								360,842				359,287
Gains not included in FFO			-				-								(32,405	)			(22,244	)
Depreciation and amortization from unconsolidated co-investments			15,483				15,766								45,304				47,345
Noncontrolling interest related to Operating Partnership units			3,464				2,789								10,863				9,381
Depreciation attributable to third party ownership and other (2)			(242	)			(234	)							(708	)			(699	)
Funds from operations attributable to common stockholders and unitholders		$	238,849			$	220,148							$	694,364			$	665,403
FFO per share-diluted		$	3.50			$	3.22				8.7	%		$	10.19			$	9.74				4.6	%
Components of the change in FFO
Non-core items:
Expensed acquisition and investment related costs		$	13			$	31							$	69			$	156
Deferred tax expense on unrealized gain on unconsolidated co-investment (3)			1,457				-								1,457				-
(Gain) loss on sale of marketable securities			(239	)			(120	)							(737	)			(669	)
Unrealized losses (gains) on marketable securities			174				(1,180	)							(4,280	)			(426	)
Equity income from non-core co-investment (4)			(4,247	)			-								(4,561	)			-
Interest rate hedge ineffectiveness (5)			-				(35	)							181				61
Gain on early retirement of debt, net			(5,475	)			-								(7,143	)			-
Gain on early retirement of debt from unconsolidated co-investment			-				(3,662	)							-				(3,662	)
Co-investment promote income			-				-								(809	)			(20,541	)
Income from early redemption of preferred equity investments			(1,699	)			-								(2,531	)			(1,602	)
General and administrative and other, net			-				141								-				2,574
Insurance reimbursements and legal settlements, net			(15	)			(111	)							(263	)			(561	)
Core funds from operations attributable to common stockholders and unitholders		$	228,818			$	215,212							$	675,747			$	640,733
Core FFO per share-diluted		$	3.35			$	3.15				6.3	%		$	9.92			$	9.38				5.8	%
Changes in core items:
Same-property NOI		$	7,317											$	23,642
Non-same property NOI			3,881												4,692
Management and other fees, net			121												211
FFO from co-investments			2,345												5,317
Interest and other income			1,579												4,428
Interest expense			305												3,296
General and administrative			(885	)											(4,766	)
Corporate-level property management expenses			(494	)											(1,307	)
Other items, net			(563	)											(499	)
		$	13,606											$	35,014
Weighted average number of shares outstanding diluted (6)			68,229,823				68,339,057								68,117,569				68,328,370

⁽¹⁾ Refer to page S-17.2, the section titled "Funds from Operations ("FFO") and Core FFO" for additional information on the Company's definition and use of FFO and Core FFO.

⁽²⁾ The Company consolidates certain co-investments. The noncontrolling interest's share of net operating income in these investments for the three and nine months ended September 30, 2019 was $1.3 million and $3.9 million, respectively.

⁽³⁾ A deferred tax expense was recorded during the third quarter of 2019 related to the $4.4 million net unrealized gain on the Real Estate Technology Ventures, L.P. co-investment discussed below.

⁽⁴⁾ Represents the Company's share of co-investment income from Real Estate Technology Ventures, L.P. Income for the third quarter of 2019 includes a net unrealized gain of $4.4 million.

⁽⁵⁾ Interest rate swaps are generally adjusted to fair value through other comprehensive income (loss). However, because certain of the Company's interest rate swaps do not have a 0% LIBOR floor, while related hedged debt in these cases is subject to a 0% LIBOR floor, the portion of the change in fair value of these interest rate swaps attributable to this mismatch, if any, is recorded as noncash interest rate hedge ineffectiveness through interest expense. On January 1, 2019, the Company adopted ASU No. 2017-12 "Derivatives and Hedging - Targeted Improvements to Accounting for Hedging Activities," which resulted in a cumulative effect adjustment of $181,000 from interest expense to accumulated other comprehensive income.

⁽⁶⁾ Assumes conversion of all outstanding limited partnership units in the Operating Partnership into shares of the Company's common stock and excludes all DownREIT limited partnership units for which the Operating Partnership has the ability and intention to redeem the units for cash and does not consider them to be common stock equivalents.

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

S-3

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

Consolidated Balance Sheets (Dollars in thousands)
		September 30, 2019				December 31, 2018
Real Estate:
Land and land improvements		$	2,766,344			$	2,701,356
Buildings and improvements			11,180,806				10,664,745
			13,947,150				13,366,101
Less:  accumulated depreciation			(3,567,632	)			(3,209,548	)
			10,379,518				10,156,553
Real estate under development			562,338				454,629
Co-investments			1,413,861				1,300,140
			12,355,717				11,911,322
Cash and cash equivalents, including restricted cash			91,726				151,395
Marketable securities			216,894				209,545
Notes and other receivables			216,541				71,895
Operating lease right-of-use assets			75,478				-
Prepaid expenses and other assets			41,536				39,439
Total assets		$	12,997,892			$	12,383,596
Unsecured debt, net		$	4,686,171			$	3,799,316
Mortgage notes payable, net			1,141,970				1,806,626
Lines of credit			220,000				-
Operating lease liabilities			77,495				-
Other liabilities			418,175				348,335
Total liabilities			6,543,811				5,954,277
Redeemable noncontrolling interest			39,077				35,475
Equity:
Common stock			7				7
Additional paid-in capital			7,131,642				7,093,079
Distributions in excess of accumulated earnings			(887,521	)			(812,796	)
Accumulated other comprehensive loss, net			(19,028	)			(13,217	)
Total stockholders' equity			6,225,100				6,267,073
Noncontrolling interest			189,904				126,771
Total equity			6,415,004				6,393,844
Total liabilities and equity		$	12,997,892			$	12,383,596

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

S-4

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

Debt Summary - September 30, 2019

(Dollars in thousands, except in footnotes)

														Scheduled principal payments, unamortized premiums (discounts) and (debt issuance costs) are as follows - excludes lines of credit:
																													Weighted Average Interest Rate				Percentage of Total Debt
						Weighted Average
		Balance Outstanding				Interest Rate				Maturity in Years							Unsecured				Secured				Total
Unsecured Debt, net
Bonds private - fixed rate		$	275,000				4.5	%			1.3			2019			$	75,000			$	3,379			$	78,379				5.0	%			1.3	%
Bonds public - fixed rate			4,100,000				3.8	%			7.6			2020				-				408,064				408,064				5.7	%			7.0	%
Term loan (1)			350,000				2.9	%			2.4			2021				500,000				45,537				545,537				4.5	%			9.3	%
Unamortized net discounts and debt issuance costs			(38,829	)			-				-			2022				650,000				43,188				693,188				3.4	%			11.8	%
			4,686,171				3.8	%			6.8			2023				600,000				2,945				602,945				3.7	%			10.3	%
Mortgage Notes Payable, net														2024				400,000				3,109				403,109				4.0	%			6.9	%
Fixed rate - secured			869,023				4.8	%			3.7			2025				500,000				146,654				646,654				3.5	%			11.0	%
Variable rate - secured (2)			269,182				2.4	%			16.9			2026				450,000				99,405				549,405				3.5	%			9.4	%
Unamortized premiums and debt issuance costs, net			3,765				-				-			2027				350,000				153,955				503,955				3.6	%			8.6	%
Total mortgage notes payable			1,141,970				4.3	%			6.8			2028				-				68,332				68,332				4.1	%			1.2	%
														2029				500,000				31,156				531,156				4.0	%			9.0	%
Unsecured Lines of Credit														Thereafter				700,000				132,481				832,481				3.5	%			14.2	%
Line of credit (3)			220,000				2.8	%						Subtotal				4,725,000				1,138,205				5,863,205				3.9	%			100.0	%
Line of credit (4)			-				2.8	%						Debt Issuance Costs				(24,116	)			(2,945	)			(27,061	)		NA				NA
Total lines of credit			220,000				2.8	%						(Discounts)/Premiums				(14,713	)			6,710				(8,003	)		NA				NA
														Total			$	4,686,171			$	1,141,970			$	5,828,141				3.9	%			100.0	%
Total debt, net		$	6,048,141				3.9	%

Capitalized interest for the three and nine months ended September 30, 2019 was approximately $6.7 million and $19.0 million, respectively.

⁽¹⁾ The unsecured term loan has a variable interest rate of LIBOR plus 0.95%. The Company has interest rate swap contracts with an aggregate notional amount of $175 million, which effectively converts the interest rate on $175 million of the term loan to a fixed rate of 2.3%.

⁽²⁾ $269.2 million of variable rate debt is tax exempt to the note holders. $9.9 million is subject to interest rate cap protection agreements.

⁽³⁾ This unsecured line of credit facility has a capacity of $1.2 billion, with a scheduled maturity date in December 2022 with one 18-month extension, exercisable at the Company's option. The underlying interest rate on this line is based on a tiered rate structure tied to the Company's corporate ratings and is currently at LIBOR plus 0.825%.

⁽⁴⁾ This unsecured line of credit facility has a capacity $35.0 million, with a scheduled maturity date in February 2021. The underlying interest rate on this line is based on a tiered rate structure tied to the Company's corporate ratings and is currently at LIBOR plus 0.825%.

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

S-5

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

Capitalization Data, Public Bond Covenants, Credit Ratings and Selected Credit Ratios - September 30, 2019

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

Capitalization Data

Public Bond Covenants (1)

Actual

Requirement

Total debt, net

$

6,048,141

Adjusted Debt to Adjusted Total Assets:

37%

< 65%

Common stock and potentially dilutive securities

Common stock outstanding

66,082

Limited partnership units (1)

2,257

Options-treasury method

122

Secured Debt to Adjusted Total Assets:

7%

< 40%

Total shares of common stock and potentially dilutive securities

68,461

Common stock price per share as of September 30, 2019

$

326.65

Interest Coverage:

457%

> 150%

Total equity capitalization

$

22,362,786

Total market capitalization

$

28,410,927

Unsecured Debt Ratio (2):

270%

> 150%

Ratio of debt to total market capitalization

21.3

%

Selected Credit Ratios (3)

Actual

Credit Ratings

Rating Agency

Rating

Outlook

Net Indebtedness Divided by Adjusted EBITDAre, normalized and annualized:

5.6

Fitch

BBB+

Stable

Moody's

Baa1

Stable

Unencumbered NOI to Adjusted Total NOI:

85%

Standard & Poor's

BBB+

Stable

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

(1)   Refer to page S-17.4 for additional information on the Company's Public Bond Covenants.

(2)   Unsecured Debt Ratio is unsecured assets (excluding investments in co-investments) divided by unsecured indebtedness.

(3)    Refer to pages S-17.1 to S-17.4, the section titled "Reconciliations of Non-GAAP Financial Measures and Other Terms" for additional information on the Company's Selected Credit Ratios.

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

S-6

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

Portfolio Summary by County as of September 30, 2019

		Apartment Homes																Average Monthly Rental Rate (1)												Percent of NOI (2)
Region - County		Consolidated (3)				Unconsolidated Co-investments (4)				Apartment Homes in Development (5)				Total				Consolidated				Unconsolidated Co-investments (6)				Total (7)				Consolidated				Unconsolidated Co-investments (6)				Total (7)
Southern California
Los Angeles County			9,097				1,563				200				10,860			$	2,471			$	2,162			$	2,446				18.5	%			12.5	%			17.9	%
Orange County			5,553				1,149				-				6,702				2,235				1,947				2,208				10.1	%			8.6	%			10.0	%
San Diego County			4,824				616				-				5,440				1,978				1,850				1,970				8.0	%			4.3	%			7.6	%
Ventura County and Other			3,200				693				-				3,893				1,828				2,198				1,867				5.1	%			6.4	%			5.4	%
Total Southern California			22,674				4,021				200				26,895				2,218				2,062				2,205				41.7	%			31.8	%			40.9	%
Northern California
Santa Clara County (8)			8,407				2,006				269				10,682				2,866				2,931				2,873				19.9	%			23.0	%			20.2	%
Alameda County			2,954				2,314				-				5,268				2,611				2,482				2,573				6.8	%			22.3	%			8.2	%
San Mateo County			2,282				392				279				2,953				3,151				3,487				3,180				5.4	%			3.3	%			5.2	%
Contra Costa County			2,570				49				-				2,619				2,454				4,818				2,477				5.4	%			0.7	%			4.9	%
San Francisco			1,343				1,000				-				2,343				3,270				3,344				3,282				3.7	%			5.8	%			3.9	%
Total Northern California			17,556				5,761				548				23,865				2,827				2,827				2,827				41.2	%			55.1	%			42.4	%
Seattle Metro			10,238				1,582				-				11,820				1,908				1,895				1,907				17.1	%			13.1	%			16.7	%
Total			50,468				11,364				748				62,580			$	2,361			$	2,409			$	2,366				100.0	%			100.0	%			100.0	%

⁽¹⁾ Average monthly rental rate is defined as the total potential monthly rental income (actual rent for occupied apartment homes plus market rent for vacant apartment homes) divided by the number of apartment homes.

⁽²⁾ Represents the percentage of actual NOI for the quarter ended September 30, 2019. See the section titled "Net Operating Income ("NOI") and Same-Property NOI Reconciliations" on page S-17.3.

⁽³⁾ Includes two communities consisting of 675 apartment homes that are producing partial income due to lease-up.

⁽⁴⁾ Includes one community consisting of 537 apartment homes that is producing partial income due to lease-up.

⁽⁵⁾ Includes development communities with no rental income.

⁽⁶⁾ Co-investment amounts weighted for Company's pro rata share.

⁽⁷⁾ At Company's pro rata share.

⁽⁸⁾ Includes all communities in Santa Clara County and one community in Santa Cruz County.

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

S-7

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

Operating Income by Quarter ⁽¹⁾

(Dollars in thousands, except in footnotes)

		Apartment Homes				Q3 '19				Q2 '19				Q1 '19				Q4 '18				Q3 '18
Rental and other property revenues:
Same-property			47,902			$	342,115			$	340,042			$	337,352			$	334,298			$	331,695
Acquisitions (2)			910				7,309				4,836				2,271				259				-
Development (3)			796				1,859				1,192				1,133				1,153				1,091
Redevelopment			621				5,255				5,223				5,212				5,160				5,125
Non-residential/other, net (4)			239				7,966				8,082				7,920				9,917				10,699
Total rental and other property revenues			50,468				364,504				359,375				353,888				350,787				348,610
Property operating expenses:
Same-property							96,603				92,073				94,518				94,479				93,500
Acquisitions (2)							2,457				1,384				796				77				-
Development (3)							708				506				525				535				638
Redevelopment							1,737				1,590				1,654				1,569				1,647
Non-residential/other, net (4) (5)							966				(106	)			823				1,790				1,990
Total property operating expenses							102,471				95,447				98,316				98,450				97,775
Net operating income (NOI):
Same-property							245,512				247,969				242,834				239,819				238,195
Acquisitions (2)							4,852				3,452				1,475				182				-
Development (3)							1,151				686				608				618				453
Redevelopment							3,518				3,633				3,558				3,591				3,478
Non-residential/other, net (4)							7,000				8,188				7,097				8,127				8,709
Total NOI						$	262,033			$	263,928			$	255,572			$	252,337			$	250,835
Same-property metrics
Operating margin							72	%			73	%			72	%			72	%			72	%
Annualized turnover (6)							56	%			48	%			41	%			41	%			56	%
Financial occupancy (7)							96.0	%			96.6	%			96.9	%			96.8	%			96.4	%

⁽¹⁾ Includes consolidated communities only.

⁽²⁾ Acquisitions include properties acquired which did not have comparable stabilized results as of January 1, 2018.

⁽³⁾ Development includes properties developed which did not have comparable stabilized results as of January 1, 2018.

⁽⁴⁾ Other real estate assets consists mainly of retail space, commercial properties, boat slips, held for sale properties, disposition properties, and student housing.

⁽⁵⁾ Includes other expenses and intercompany eliminations pertaining to self-insurance.

⁽⁶⁾ Annualized turnover is defined as the number of apartment homes turned over during the quarter, annualized, divided by the total number of apartment homes.

⁽⁷⁾ Financial occupancy is defined as the percentage resulting from dividing actual rental income by total potential rental income (actual rent for occupied apartment homes plus market rent for vacant apartment homes).

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

S-8

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

Same-Property Revenue Results by County - Third Quarter 2019 vs. Third Quarter 2018 and Second Quarter 2019

(Dollars in thousands, except average monthly rental rates)

										Average Monthly Rental Rate												Financial Occupancy												Gross Revenues												Sequential Gross Revenues
Region - County		Apartment Homes				Q3 '19 % of Actual NOI				Q3 '19				Q3 '18				% Change				Q3 '19				Q3 '18				% Change				Q3 '19				Q3 '18				% Change				Q2 '19				% Change
Southern California
Los Angeles County			8,641				18.4	%		$	2,480			$	2,406				3.1	%			96.2	%			96.5	%			-0.3	%		$	64,755			$	63,052				2.7	%		$	64,597				0.2	%
Orange County			5,553				10.6	%			2,235				2,170				3.0	%			95.4	%			96.2	%			-0.8	%			37,062				36,417				1.8	%			37,058				0.0	%
San Diego County			4,824				8.3	%			1,978				1,924				2.8	%			96.5	%			96.8	%			-0.3	%			29,153				28,510				2.3	%			29,068				0.3	%
Ventura County and Other			2,961				5.0	%			1,798				1,742				3.2	%			96.8	%			96.8	%			0.0	%			16,587				16,023				3.5	%			16,435				0.9	%
Total Southern California			21,979				42.3	%			2,216				2,151				3.0	%			96.1	%			96.5	%			-0.4	%			147,557				144,002				2.5	%			147,158				0.3	%
Northern California
Santa Clara County (1)			7,453				19.6	%			2,860				2,748				4.1	%			95.9	%			96.5	%			-0.6	%			64,337				62,109				3.6	%			63,954				0.6	%
Alameda County			2,954				7.1	%			2,611				2,543				2.7	%			96.5	%			96.2	%			0.3	%			23,714				22,930				3.4	%			23,378				1.4	%
San Mateo County			1,830				5.1	%			3,077				2,924				5.2	%			94.6	%			96.8	%			-2.3	%			16,941				16,534				2.5	%			16,979				-0.2	%
Contra Costa County			2,270				4.9	%			2,390				2,320				3.0	%			95.9	%			96.4	%			-0.5	%			16,587				16,124				2.9	%			16,450				0.8	%
San Francisco			1,178				3.2	%			3,154				3,019				4.5	%			95.6	%			95.2	%			0.4	%			11,321				10,765				5.2	%			11,282				0.3	%
Total Northern California			15,685				39.9	%			2,793				2,688				3.9	%			95.8	%			96.3	%			-0.5	%			132,900				128,462				3.5	%			132,043				0.6	%
Seattle Metro			10,238				17.8	%			1,908				1,838				3.8	%			95.9	%			96.1	%			-0.2	%			61,658				59,231				4.1	%			60,841				1.3	%
Total Same-Property			47,902				100.0	%		$	2,339			$	2,260				3.5	%			96.0	%			96.4	%			-0.4	%		$	342,115			$	331,695				3.1	%		$	340,042				0.6	%

⁽¹⁾ Includes all communities in Santa Clara County and one community in Santa Cruz County.

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

S-9

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

Same-Property Revenue Results by County - Nine months ended September 30, 2019 vs. Nine months ended September 30, 2018

(Dollars in thousands, except average monthly rental rates)

						YTD				Average Monthly Rental Rate												Financial Occupancy												Gross Revenues
Region - County		Apartment Homes				2019 % of Actual NOI				YTD 2019				YTD 2018				% Change				YTD 2019				YTD 2018				% Change				YTD 2019				YTD 2018				% Change
Southern California
Los Angeles County			8,641				18.5	%		$	2,456			$	2,379				3.2	%			96.5	%			96.6	%			-0.1	%		$	193,725			$	187,620				3.3	%
Orange County			5,553				10.7	%			2,211				2,150				2.8	%			96.1	%			96.5	%			-0.4	%			110,903				108,534				2.2	%
San Diego County			4,824				8.4	%			1,959				1,898				3.2	%			96.7	%			97.0	%			-0.3	%			86,945				84,599				2.8	%
Ventura County and Other			2,961				5.0	%			1,780				1,718				3.6	%			97.1	%			97.4	%			-0.3	%			49,364				47,783				3.3	%
Total Southern California			21,979				42.6	%			2,194				2,126				3.2	%			96.5	%			96.7	%			-0.2	%			440,937				428,536				2.9	%
Northern California
Santa Clara County (1)			7,453				19.7	%			2,817				2,707				4.1	%			96.6	%			97.0	%			-0.4	%			191,708				184,764				3.8	%
Alameda County			2,954				6.9	%			2,586				2,515				2.8	%			96.5	%			96.6	%			-0.1	%			70,332				68,273				3.0	%
San Mateo County			1,830				5.2	%			3,023				2,878				5.0	%			96.1	%			97.2	%			-1.1	%			50,811				48,953				3.8	%
Contra Costa County			2,270				4.9	%			2,360				2,301				2.6	%			96.7	%			96.9	%			-0.2	%			49,386				48,216				2.4	%
San Francisco			1,178				3.2	%			3,101				2,983				4.0	%			96.1	%			95.5	%			0.6	%			33,596				32,082				4.7	%
Total Northern California			15,685				39.9	%			2,753				2,653				3.8	%			96.5	%			96.8	%			-0.3	%			395,833				382,288				3.5	%
Seattle Metro			10,238				17.5	%			1,878				1,819				3.2	%			96.4	%			96.4	%			0.0	%			182,739				176,740				3.4	%
Total Same-Property			47,902				100.0	%		$	2,309			$	2,233				3.4	%			96.5	%			96.7	%			-0.2	%		$	1,019,509			$	987,564				3.2	%

⁽¹⁾ Includes all communities in Santa Clara County and one community in Santa Cruz County.

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

S-9.1

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

Same-Property Operating Expenses - Quarter and Year to Date as of September 30, 2019 and 2018

(Dollars in thousands)

		Based on 47,902 apartment homes
		Q3 '19				Q3 '18				% Change				% of Op. Ex.					YTD 2019				YTD 2018				% Change				% of Op. Ex.
Same-property operating expenses:
Real estate taxes		$	36,240			$	36,178				0.2	%			37.5	%			$	108,368			$	106,411				1.8	%			38.3	%
Maintenance and repairs			20,080				18,972				5.8	%			20.8	%				58,689				56,186				4.5	%			20.7	%
Administrative			17,568				16,160				8.7	%			18.2	%				52,121				50,095				4.0	%			18.4	%
Utilities			18,731				18,269				2.5	%			19.4	%				52,145				50,438				3.4	%			18.4	%
Insurance and other			3,984				3,921				1.6	%			4.1	%				11,871				11,761				0.9	%			4.2	%
Total same-property operating expenses		$	96,603			$	93,500				3.3	%			100.0	%			$	283,194			$	274,891				3.0	%			100.0	%

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

S-10

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

Development Pipeline - September 30, 2019

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

Project Name		Location		Ownership %			Estimated Apartment Homes				Estimated Commercial sq. feet				Incurred to Date				Remaining Costs				Estimated Total Cost				Essex Est. Total Cost (1)				Cost per Apartment Home (2)				Average % Occupied			% Leased (3)			Construction Start			Initial Occupancy			Stabilized Operations
Development Projects - Consolidated (4)
Station Park Green - Phase II		San Mateo, CA		100%				199				-			$	133			$	8			$	141			$	141			$	709			51%			55%			Q2 2017			Q3 2019			Q1 2020
Station Park Green - Phase III		San Mateo, CA		100%				172				-				114				20				134				134				779			0%			0%			Q3 2017			Q4 2019			Q2 2020
Station Park Green - Phase IV		San Mateo, CA		100%				107				-				14				80				94				94				879			0%			0%			Q3 2019			Q4 2021			Q1 2022
Mylo (5)		Santa Clara, CA		100%				476				-				200				26				226				226				475			14%			25%			Q3 2016			Q3 2019			Q4 2020
Wallace on Sunset (6)		Hollywood, CA		100%				200				4,700				61				44				105				105				500			0%			0%			Q4 2017			Q2 2020			Q4 2020
Total Development Projects - Consolidated								1,154				4,700				522				178				700				700				602
Land Held for Future Development - Consolidated
Other Projects		Various		100%												51				-				51				51
Total Development Pipeline - Consolidated								1,154				4,700				573				178				751				751
Development Projects - Joint Venture (4)
Patina at Midtown		San Jose, CA		50%				269				-				101				35				136				68				506			0%			0%			Q3 2017			Q4 2019			Q4 2020
500 Folsom (7)		San Francisco, CA		50%				537				6,000				363				52				415				208				763			4%			7%			Q4 2015			Q3 2019			Q4 2020
Total Development Projects - Joint Venture								806				6,000				464				87				551				276			$	677
Grand Total - Development Pipeline								1,960				10,700			$	1,037			$	265			$	1,302				1,027
Essex Cost Incurred to Date - Pro Rata																												(805	)
Essex Remaining Commitment																											$	222

⁽¹⁾ The Company's share of the estimated total cost of the project.

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

⁽³⁾ Calculations are based on multifamily operations only and are as of September 30, 2019.

⁽⁴⁾ For the third quarter of 2019, the Company's cost includes $6.5 million of capitalized interest, $0.6 million of capitalized overhead and $1.0 million of development fees (such development fees reduced G&A expenses).

⁽⁵⁾ Cost incurred to date does not include a deduction of $4.7 million for accumulated depreciation recorded during the period when the property was held as a retail operating asset.

⁽⁶⁾ Cost incurred to date does not include a deduction of $6.3 million for accumulated depreciation recorded during the period when the property was held as a retail operating asset.

⁽⁷⁾ Estimated cost incurred to date and total cost are net of a projected value for low income housing tax credit proceeds and the value of the tax exempt bond structure.

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

S-11

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

Redevelopment Pipeline - September 30, 2019

(Dollars in thousands)

Region/Project Name		Apartment Homes				Total Incurred To Date				Estimated Remaining Cost				Estimated Total Cost				Project Start Date			NOI
																					Nine Months Ended
																					2019				2018
Same-Property - Redevelopment Projects (1)
Southern California
The Henley I & II (fka Hamptons)			215			$	20,800			$	2,800			$	23,600			Q1 2014
Kings Road			196				9,000				3,200				12,200			Q4 2016
The Palms at Laguna Niguel			460				5,300				4,200				9,500			Q4 2016
Total Same-Property - Redevelopment Projects			871			$	35,100			$	10,200			$	45,300						$	12,656			$	12,029
Non-Same Property - Redevelopment Projects
Southern California
Bunker Hill Towers			456			$	80,600			$	6,800			$	87,400			Q3 2013
Total Non-Same Property - Redevelopment Projects			456			$	80,600			$	6,800			$	87,400						$	6,338			$	6,379

⁽¹⁾ Redevelopment activities are ongoing at these communities, but the communities have stabilized operations, therefore results are classified in same-property results.

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

S-12

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

Capital Expenditures - September 30, 2019 ⁽¹⁾

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

Revenue Generating Capital Expenditures (2)		Q3 '19				Q2 '19				Q1 '19				Q4 '18				Trailing 4 Quarters
Same-property portfolio		$	21,034			$	14,727			$	10,798			$	14,430			$	60,989
Non-same property portfolio			3,156				2,176				1,892				1,748				8,972
Total revenue generating capital expenditures		$	24,190			$	16,903			$	12,690			$	16,178			$	69,961
Number of same-property interior renovations			1,302				1,079				683				538				3,602
Number of total consolidated interior renovations			1,396				1,093				691				580				3,760

Non-Revenue Generating Capital Expenditures (3)		Q3 '19				Q2 '19				Q1 '19				Q4 '18				Trailing 4 Quarters
Non-revenue generating capital expenditures (4)		$	25,273			$	22,763			$	13,550			$	20,863			$	82,449
Average apartment homes in quarter			50,065				49,511				49,205				49,110				49,473
Capital expenditures per apartment homes in the quarter		$	505			$	460			$	275			$	425			$	1,667

⁽¹⁾ The Company incurred $0.2 million of capitalized interest, $3.1 million of capitalized overhead and $0.2 million of co-investment fees related to redevelopment in Q3 2019.

⁽²⁾ Represents revenue generating or expense saving expenditures, such as full-scale redevelopments shown on page S-12, interior unit turn renovations, enhanced amenities and certain resource management initiatives.

⁽³⁾ Represents roof replacements, paving, building and mechanical systems, exterior painting, siding, etc.

⁽⁴⁾ Non-revenue generating capital expenditures does not include expenditures incurred due to changes in governmental regulations that the Company would not have incurred otherwise, retail, furniture and fixtures, and expenditures in which the Company expects to be reimbursed.

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

S-12.1

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

Co-investments and Preferred Equity Investments - September 30, 2019

(Dollars in thousands)

		Weighted Average Essex Ownership Percentage			Apartment Homes				Total Undepreciated Book Value				Debt Amount				Essex Book Value				Weighted Average Borrowing Rate				Remaining Term of Debt (in Years)				Three Months Ended September 30, 2019				Nine Months Ended September 30, 2019
Operating and Other Non-Consolidated Joint Ventures																													NOI
Wesco I, III, IV, and V		52%				5,002			$	1,582,872			$	919,741			$	212,808				3.9	%			3.4			$	23,068			$	67,693
BEXAEW, BEX II, BEX III, and BEX IV		50%				2,691				819,636				425,181				161,467				3.7	%			3.2				10,639				31,278
CPPIB		54%				2,483				959,120				-				469,288				-				-				14,485				43,106
Other		48%				651				213,528				167,500				20,281				3.5	%			4.3				3,615				12,135
Total Operating and Other Non-Consolidated Joint Ventures						10,827			$	3,575,156			$	1,512,422			$	863,844				3.8	%			3.4			$	51,807			$	154,212
Pre-Development and Development Non-Consolidated Joint Ventures (1)		50%				806				475,935				158,214				137,626				3.1	%			27.1	(2)			-				-
Total Non-Consolidated Joint Ventures						11,633			$	4,051,091			$	1,670,636			$	1,001,470				3.8	%			5.7			$	51,807			$	154,212
																													Essex Portion of NOI and Expenses
NOI																													$	27,007			$	80,913
Depreciation																														(15,483	)			(45,304	)
Interest expense and other																														(7,094	)			(21,078	)
Gain on sale of co-investment communities																														-				870
Equity income from non-core co-investment																														4,247				4,561
Co-investment promote income																														-				809
Net income from operating and other co-investments																													$	8,677			$	20,771
																					Weighted Average Preferred Return				Weighted Average Expected Term				Income from Preferred Equity Investments
Income from preferred equity investments																													$	11,324			$	31,633
Income from early redemption of preferred equity investments																														1,699				2,531
Preferred Equity Investments (3)																	$	412,391				10.7	%			2.4			$	13,023			$	34,164
Total Co-investments																	$	1,413,861											$	21,700			$	54,935

⁽¹⁾ The Company has ownership interests in development co-investments, which are detailed on page S-11.

⁽²⁾ $132.0 million of the debt related to 500 Folsom, one of the Company's development co-investments, is financed by tax exempt bonds with a maturity date of January 2052.

⁽³⁾ As of September 30, 2019, the Company has invested in 17 preferred equity investments.

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

S-13

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

Assumptions for 2019 FFO Guidance Range

The guidance projections below are based on current expectations and are forward-looking. See page S-14.1 for the reconciliations of earnings per share ("EPS") to FFO per share and Core FFO per share. 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.

($'s in thousands, except per share data)		Nine Months Ended September 30,				2019 Full-Year Guidance Range							Comments About Guidance Revisions
		2019 (1)				Low End				High End
Total NOI from Consolidated Communities		$	781,533			$	1,045,800			$	1,051,300		Includes a range of same-property NOI growth of 3.4% to 3.9%, revised from the prior range of 3.2% to 4.1%. Includes year-to-date acquisition activity.
Management Fees			7,023				9,300				9,700
Interest Expense
Interest expense, before capitalized interest			(175,330	)			(233,200	)			(232,600	)	Updated to reflect refinancing activity in the third and fourth quarters.
Interest capitalized			19,034				23,900				24,400		Updated for timing of development deliveries and spend.
Net interest expense			(156,296	)			(209,300	)			(208,200	)
Recurring Income and Expenses
Interest and other income			24,013				31,100				31,600
FFO from co-investments			91,468				121,000				121,500		Includes actual results through September and expected investment activity through year-end.
General and administrative			(38,731	)			(46,800	)			(47,800	)
Corporate-level property management expenses			(24,620	)			(32,700	)			(32,900	)
Non-controlling interest			(8,643	)			(12,100	)			(11,900	)
Total recurring income and expenses			43,487				60,500				60,500
Non-Core Income and Expenses
Expensed acquisition and investment related costs			(69	)			(100	)			(200	)
Deferred tax expense on unrealized gain on unconsolidated co-investment			(1,457	)			(1,457	)			(1,457	)
Gain on sale of marketable securities			737				737				737
Unrealized gains on marketable securities			4,280				4,280				4,280
Equity income from non-core co-investment			4,561				4,561				4,561
Interest rate hedge ineffectiveness			(181	)			(181	)			(181	)
Gain on early retirement of debt, net			7,143				3,643				3,643
Co-investment promote income			809				809				809
Income from early redemption of preferred equity investments			2,531				2,688				2,688
Insurance reimbursements and legal settlements, net			263				263				263
Total non-core income and expenses			18,617				15,243				15,143
Funds from Operations (2)		$	694,364			$	921,543			$	928,443
Funds from Operations per diluted share		$	10.19			$	13.50			$	13.60
% Change - Funds from Operations			4.6	%			5.8	%			6.6	%
Core Funds from Operations (excludes non-core items)		$	675,747			$	906,300			$	913,300
Core Funds from Operations per diluted share		$	9.92			$	13.28			$	13.38
% Change - Core Funds from Operations			5.8	%			5.6	%			6.5	%
EPS - Diluted		$	4.71			$	6.04			$	6.14
Weighted average shares outstanding - FFO calculation			68,118				68,250				68,250

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

⁽²⁾ 2019 guidance excludes inestimable projected gain on sale of marketable securities, loss on early retirement of debt, political/legislative costs, and promote income until they are realized within the reporting period presented in the report.

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

S-14

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

Reconciliation of Projected EPS, FFO and Core FFO per diluted share

Projected EPS, FFO and Core FFO per diluted share

With respect to the Company's guidance regarding its projected FFO and Core FFO, which guidance is set forth in the earnings release and on page S-14 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.

						2019 Guidance Range (1)
		Nine Months Ended September 30, 2019				4th Quarter 2019								Full-Year 2019
						Low				High				Low				High
EPS - diluted		$	4.71			$	1.33			$	1.43			$	6.04			$	6.14
Conversion from GAAP share count			(0.16	)			(0.04	)			(0.04	)			(0.20	)			(0.20	)
Depreciation and amortization			5.97				1.97				1.97				7.94				7.94
Noncontrolling interest related to Operating Partnership units			0.15				0.05				0.05				0.20				0.20
Gain on sale of real estate			-				-				-				-				-
Gain on remeasurement of co-investment			(0.48	)			-				-				(0.48	)			(0.48	)
FFO per share - diluted		$	10.19			$	3.31			$	3.41			$	13.50			$	13.60
Expensed acquisition and investment related costs			-				-				-				-				-
Deferred tax expense on unrealized gain on unconsolidated co-investment			0.02				-				-				0.02				0.02
Gain on sale of marketable securities			(0.01	)			-				-				(0.01	)			(0.01	)
Unrealized gains on marketable securities			(0.06	)			-				-				(0.06	)			(0.06	)
Equity income from non-core co-investment			(0.07	)			-				-				(0.07	)			(0.07	)
Interest rate hedge ineffectiveness			-				-				-				-				-
Gain on early retirement of debt, net			(0.10	)			0.05				0.05				(0.05	)			(0.05	)
Co-investment promote income			(0.01	)			-				-				(0.01	)			(0.01	)
Income from early redemption of preferred equity investments			(0.04	)			-				-				(0.04	)			(0.04	)
Insurance reimbursements and legal settlements, net			-				-				-				-				-
Core FFO per share - diluted		$	9.92			$	3.36			$	3.46			$	13.28			$	13.38

⁽¹⁾ 2019 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-14.1

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

Summary of Apartment Community Acquisitions and Dispositions Activity

Year to date as of September 30, 2019

(Dollars in thousands)

Acquisitions										Essex					Total
Property Name		Location				Apartment Homes				Ownership Percentage		Entity	Date		Contract Price					Price per Apartment Home (2)				Average Rent
One South Market(1)		San Jose, CA					312			100%		EPLP	Mar-19		$	80,550				$	560			$	3,041
			Q1 2019				312								$	80,550				$	560
Brio(3)		Walnut Creek, CA					300			N/A		EPLP	Jun-19		$	164,870		(4)		$	550			$	3,307
			Q2 2019				300								$	164,870				$	550
The Courtyards at 65th Street		Emeryville, CA					331			50%		JV	Aug-19		$	178,000		(4)		$	534			$	2,905
777 Hamilton		Menlo Park, CA					195			50%		JV	Aug-19			148,000		(4)			759			$	3,890
Township		Redwood City, CA					132			100%		EPLP	Sep-19			88,650					672			$	3,666
			Q3 2019				658								$	414,650				$	628
		2019 Total					1,270								$	660,070				$	598

Dispositions			Essex			Total
		Apartment	Ownership			Sales	Price per
Property Name	Location	Homes	Percentage	Entity	Date	Price	Apartment Home

Neither Essex nor its unconsolidated joint ventures sold any apartment communities during the first, second, or third quarters of 2019.

(1) In March 2019, the Company purchased the joint venture partner's 45% membership interest in the One South Market co-investment based on an estimated property valuation of $179.0 million. In conjunction with the acquisition, $86.0 million of mortgage debt that encumbered the property was paid off.

(2) Price per apartment home excludes value allocated to retail space.

(3) In June 2019, the Company acquired Brio for a total contract price of $164.9 million in a DownREIT transaction. As part of the acquisition, the Company assumed $98.7 million of mortgage debt in the community. Based on a VIE analysis performed by the Company, the property was consolidated.

(4) Brio, The Courtyards at 65th Street, and 777 Hamilton contract prices represent the total contract price at 100%.

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

S-15

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

U.S. Economic Assumptions: 2020 G.D.P. Growth: 2.0%, 2020 Job Growth: 1.2%

Preliminary 2020 MSA Level Forecast: Supply, Jobs, and Apartment Market Conditions

		Residential Supply (1)																				Job Forecast (2)								Rent Forecast (3)
Market		New MF Supply				New SF Supply				Total Supply				% of MF Supply to MF Stock				% of Total Supply to Total Stock				Est. New Jobs				% Growth				Economic Rent Growth
Los Angeles			11,200				5,800				17,000				0.7	%			0.5	%			48,400				1.1	%			2.6	%
Orange			2,300				3,900				6,200				0.6	%			0.6	%			19,400				1.2	%			3.0	%
San Diego			3,250				3,500				6,750				0.7	%			0.6	%			20,500				1.4	%			2.8	%
Ventura			450				1,000				1,450				0.7	%			0.5	%			3,550				1.1	%			2.8	%
So. Cal.			17,200				14,200				31,400				0.7	%			0.5	%			91,850				1.2	%			2.8	%
San Francisco			2,350				400				2,750				0.6	%			0.4	%			28,650				2.4	%			3.3	%
Oakland			4,500				3,600				8,100				1.3	%			0.8	%			18,800				1.6	%			2.2	%
San Jose			4,700				2,400				7,100				1.9	%			1.0	%			24,900				2.2	%			3.0	%
No. Cal.			11,550				6,400				17,950				1.5	%			0.8	%			72,350				2.0	%			2.9	%
Seattle			6,900				6,500				13,400				1.4	%			1.0	%			43,200				2.4	%			3.5	%
Total/Weighted Avg. (4)			35,650				27,100				62,750				1.1	%			0.7	%			207,400				1.7	%			3.0	%

All data are based on Essex Property Trust, Inc. forecasts.

⁽¹⁾ Residential Supply: Total supply includes the Company's estimate of multifamily deliveries of properties with 50+ units and excludes student, senior and 100% affordable housing communities.  Single-family estimates are based on trailing single-family permits.  Multifamily estimates incorporate a methodological enhancement ("delay-adjusted supply") to reflect the anticipated impact of continued construction delays in Essex markets.

⁽²⁾ Job Forecast: Refers to the difference between total non-farm industry employment (not seasonally adjusted) projected 4Q over 4Q, expressed as total new jobs and growth rates.

⁽³⁾ Rent Forecast: The estimated rent growth represents the forecasted change in effective market rents for full year 2020 vs 2019 (excludes submarkets not targeted by Essex).

⁽⁴⁾ Weighted Average: Growth rates are weighted by scheduled rent in the Company's Portfolio.

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

S-16

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

Essex Markets Continue to Benefit from Superior Long-Term Income and Employment Growth

• Essex markets have benefitted from consistently strong income and employment growth this decade, well above the national averages

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

S-16.1

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

Reconciliations of Non-GAAP Financial Measures and Other Terms

Adjusted EBITDAre Reconciliation

The National Association of Real Estate Investment Trusts ("NAREIT”) defines earnings before interest, taxes, depreciation and amortization for real estate ("EBITDAre") (September 2017 White Paper) as net income (computed in accordance with U.S. generally accepted accounting principles ("U.S. GAAP")) before interest expense, income taxes, depreciation and amortization expense, and further adjusted for gains and losses from sales of depreciated operating properties, impairment write-downs of depreciated operating properties, impairment write-downs of investments in unconsolidated entities caused by a decrease in value of depreciated operating properties within the joint venture and adjustments to reflect the Company’s share of EBITDAre of investments in unconsolidated entities.

The Company believes that EBITDAre is useful to investors, creditors and rating agencies as a supplemental measure of the Company’s ability to incur and service debt because it is a recognized measure of performance by the real estate industry, and by excluding gains or losses related to sales or impairment of depreciated operating properties, EBITDAre can help compare the Company’s credit strength between periods or as compared to different companies.

Adjusted EBITDAre represents EBITDAre further adjusted for non-comparable items and is a component of the credit ratio, "Net Indebtedness Divided by Adjusted EBITDAre, normalized and annualized," presented on page S-6, in the section titled "Selected Credit Ratios," and it is not intended to be a measure of free cash flow for management’s discretionary use, as it does not consider certain cash requirements such as income tax payments, debt service requirements, capital expenditures and other fixed charges.

Adjusted EBITDAre is an important metric in evaluating the credit strength of the Company and its ability to service its debt obligations.  The Company believes that Adjusted EBITDAre is useful to investors, creditors and rating agencies because it allows investors to compare the Company’s credit strength to prior reporting periods and to other companies without the effect of items that by their nature are not comparable from period to period and tend to obscure the Company’s actual credit quality.

EBITDAre and Adjusted EBITDAre are not recognized measurements under U.S. GAAP. Because not all companies use identical calculations, the Company's presentation of EBITDAre and Adjusted EBITDAre may not be comparable to similarly titled measures of other companies.

The reconciliations of Net Income available to common stockholders to EBITDAre and Adjusted EBITDAre are presented in the table below (Dollars in thousands):

		Three Months Ended September 30, 2019
Net income available to common stockholders		$	99,335
Adjustments:
Net income attributable to noncontrolling interest			6,365
Interest expense, net (1)			52,742
Depreciation and amortization			120,809
Co-investment EBITDAre adjustments			22,578
EBITDAre			301,829
Gain on sale of marketable securities			(239	)
Unrealized losses on marketable securities			174
Equity income from non-core co-investments			(4,247	)
Deferred tax expense on unrealized gain on unconsolidated co-investment			1,457
Insurance reimbursements and legal settlements, net			(15	)
Income from early redemption of preferred equity investments			(1,699	)
Expensed acquisition and investment related costs			13
Gain on early retirement of debt, net			(5,475	)
Adjusted EBITDAre		$	291,798

⁽¹⁾ Interest expense, net includes items such as gains on derivatives and the amortization of deferred charges.

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

S-17.1

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

Reconciliations of Non-GAAP Financial Measures and Other Terms

Encumbered

Encumbered means any mortgage, deed of trust, lien, charge, pledge, security interest, security agreement or other encumbrance of any kind.

Funds From Operations ("FFO") and Core FFO

FFO, as defined by NAREIT, is generally considered by industry analysts as an appropriate measure of performance of an equity REIT. Generally, FFO adjusts the net income of equity REITs for non-cash charges such as depreciation and amortization of rental properties, impairment charges, gains on sales of real estate and extraordinary items. Management considers FFO and FFO which excludes non-core items, which is referred to as “Core FFO,” to be useful supplemental operating performance measures of an equity REIT because, together with net income and cash flows, FFO and Core FFO provide investors with additional bases to evaluate the operating performance and ability of a REIT to incur and service debt and to fund acquisitions and other capital expenditures and to pay dividends. By excluding gains or losses related to sales of depreciated operating properties and 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 diluted FFO and Core FFO are detailed on page S-3 in the section titled "Consolidated Funds From Operations".

Interest Expense, Net

Interest expense, net is presented on page S-1 in the section titled "Consolidated Operating Results". Interest expense, net includes items such as gains on derivatives and the amortization of deferred charges and is presented in the table below (Dollars in thousands):

		Three Months Ended September 30, 2019				Nine Months Ended September 30, 2019
Interest expense		$	54,896			$	162,651
Adjustments:
Total return swap income			(2,154	)			(6,174	)
Interest expense, net		$	52,742			$	156,477

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

S-17.2

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

Reconciliations of Non-GAAP Financial Measures and Other Terms

Net Indebtedness Divided by Adjusted EBITDAre

This credit ratio is presented on page S-6 in the section titled "Selected Credit Ratios." This credit ratio is calculated by dividing net indebtedness by Adjusted EBITDAre, as annualized based on the most recent quarter, and adjusted for estimated net operating income from properties acquired or disposed of during the quarter. This ratio is presented by the Company because it provides rating agencies and investors an additional means of comparing the Company's ability to service debt obligations to that of other companies. Net indebtedness is total debt, net less unamortized premiums, discounts, debt issuance costs, unrestricted cash and cash equivalents, and marketable securities. The reconciliation of Adjusted EBITDAre is set forth in "Adjusted EBITDAre Reconciliation" on page S-17.1 The calculation of this credit ratio and a reconciliation of net indebtedness to total debt at pro rata share for co-investments, net is presented in the table below (Dollars in thousands):

Total consolidated debt, net		$	6,048,141
Total debt from co-investments at pro rata share			854,514
Adjustments:
Consolidated unamortized premiums, discounts, and debt issuance costs			35,064
Pro rata co-investments unamortized premiums, discounts, and debt issuance costs			3,957
Consolidated cash and cash equivalents-unrestricted			(74,031	)
Pro rata co-investment cash and cash equivalents-unrestricted			(31,853	)
Marketable securities			(216,894	)
Net Indebtedness		$	6,618,898
Adjusted EBITDAre, annualized (1)		$	1,167,192
Other EBITDAre normalization adjustments, net, annualized (2)			6,497
Adjusted EBITDAre, normalized and annualized		$	1,173,689
Net Indebtedness Divided by Adjusted EBITDAre, normalized and annualized			5.6

⁽¹⁾ Based on the amount for the most recent quarter, multiplied by four.

⁽²⁾ Adjustments made for properties in lease-up, acquired, or disposed of during the most recent quarter and other partial quarter activity, multiplied by four.

Net Operating Income ("NOI") and Same-Property NOI Reconciliations

NOI and same-property NOI are considered by management to be important supplemental performance measures to earnings from operations included in the Company’s condensed consolidated statements of income. The presentation of same-property NOI assists with the presentation of the Company’s operations prior to the allocation of depreciation and any corporate-level or financing-related costs. NOI reflects the operating performance of a community and allows for an easy comparison of the operating performance of individual communities or groups of communities.

In addition, because prospective buyers of real estate have different financing and overhead structures, with varying marginal impacts to overhead by acquiring real estate, NOI is considered by many in the real estate industry to be a useful measure for determining the value of a real estate asset or group of assets. The Company defines same-property NOI as same-property revenues less same-property operating expenses, including property taxes. Please see the reconciliation of earnings from operations to NOI and same-property NOI, which in the table below is the NOI for stabilized properties consolidated by the Company for the periods presented (Dollars in thousands):

		Three Months Ended September 30, 2019				Three Months Ended September 30, 2018				Nine Months Ended September 30, 2019				Nine Months Ended September 30, 2018
Earnings from operations		$	124,039			$	113,897			$	364,294			$	362,960
Adjustments:
Corporate-level property management expenses			8,255				7,761				24,620				23,313
Depreciation and amortization			120,809				120,852				360,842				359,287
Management and other fees from affiliates			(2,428	)			(2,307	)			(7,023	)			(6,812	)
General and administrative			11,345				10,601				38,731				36,539
Expensed acquisition and investment related costs			13				31				69				156
Gain on sale of real estate and land			-				-				-				(22,244	)
NOI			262,033				250,835				781,533				753,199
Less: Non-same property NOI			(16,521	)			(12,640	)			(45,218	)			(40,526	)
Same-Property NOI		$	245,512			$	238,195			$	736,315			$	712,673

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

S-17.3

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

Reconciliations of Non-GAAP Financial Measures and Other Terms

Public Bond Covenants

Public Bond Covenants refer to certain covenants set forth in instruments governing the Company's unsecured indebtedness. These instruments require the Company to meet specified financial covenants, including covenants relating to net worth, fixed charge coverage, debt service coverage, the amounts of total indebtedness and secured indebtedness, leverage and certain investment limitations. These covenants may restrict the Company's ability to expand or fully pursue its business strategies. The Company's ability to comply with these covenants may be affected by changes in the Company's operating and financial performance, changes in general business and economic conditions, adverse regulatory developments or other events adversely impacting it. The breach of any of these covenants could result in a default under the Company's indebtedness, which could cause those and other obligations to become due and payable. If any of the Company's indebtedness is accelerated, the Company may not be able to repay it. For risks related to failure to comply with these covenants, see "Item 1A: Risk Factors - Risks Related to Our Indebtedness and Financings" in the Company's annual report on Form 10-K and other reports filed by the Company with the Securities and Exchange Commission ("SEC").

The ratios set forth on page S-6 in the section titled "Public Bond Covenants" are provided only to show the Company's compliance with certain specified covenants that are contained in indentures related to the Company's issuance of Senior Notes, which indentures are filed by the Company with the SEC. See, for example, the Indenture dated August 7, 2019, filed by the Company as Exhibit 4.1 to the Company's Form 8-K, filed on August 7, 2019. 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

Secured Debt means debt of the Company or any of its subsidiaries which is secured by an encumbrance on any property or assets of the Company or any of its subsidiaries. The Company's total amount of Secured Debt is set forth on page S-5.

Unencumbered NOI to Adjusted Total NOI

This ratio is presented on page S-6 in the section titled "Selected Credit Ratios". Unencumbered NOI means the sum of NOI for those real estate assets which are not subject to an encumbrance securing debt. The ratio of Unencumbered NOI to Adjusted Total NOI for the three months ended September 30, 2019, annualized, is calculated by dividing Unencumbered NOI, annualized for the three months ended September 30, 2019 and as further adjusted for pro forma NOI for properties acquired or sold during the recent quarter, by Adjusted Total NOI as annualized. The calculation and reconciliation of NOI is set forth in "Net Operating Income ("NOI") and Same-Property NOI Reconciliations" above. This ratio is presented by the Company because it provides rating agencies and investors an additional means of comparing the Company's ability to service debt obligations to that of other companies. The calculation of this ratio is presented in the table below (Dollars in thousands):

		Annualized Q3'19 (1)
NOI		$	1,048,132
Adjustments:
NOI from real estate assets sold			-
Other, net (2)			(7,326	)
Adjusted Total NOI			1,040,806
Less: Encumbered NOI			(151,717	)
Unencumbered NOI		$	889,089
Encumbered NOI		$	151,717
Unencumbered NOI			889,089
Adjusted Total NOI		$	1,040,806
Unencumbered NOI to Adjusted Total NOI			85	%

⁽¹⁾ This table is based on the amounts for the most recent quarter, multiplied by four.

⁽²⁾ Includes intercompany eliminations pertaining to self-insurance and other expenses.

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

S-17.4