Cover Page
Cover Page - shares | 9 Months Ended | |
Sep. 30, 2023 | Oct. 25, 2023 | |
Entity Information [Line Items] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Sep. 30, 2023 | |
Document Transition Report | false | |
Entity File Number | 001-13106 | |
Entity Registrant Name | ESSEX PROPERTY TRUST, INC. | |
Entity Incorporation, State or Country Code | MD | |
Entity Tax Identification Number | 77-0369576 | |
Entity Address, Address Line One | 1100 Park Place, Suite 200 | |
Entity Address, City or Town | San Mateo | |
Entity Address, State or Province | CA | |
Entity Address, Postal Zip Code | 94403 | |
City Area Code | 650 | |
Local Phone Number | 655-7800 | |
Title of 12(b) Security | Common Stock, $.0001 par value (Essex Property Trust, Inc.) | |
Trading Symbol | ESS | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 64,184,604 | |
Entity Central Index Key | 0000920522 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2023 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | false | |
Essex Portfolio, L.P. | ||
Entity Information [Line Items] | ||
Entity File Number | 333-44467-01 | |
Entity Registrant Name | ESSEX PORTFOLIO, L.P. | |
Entity Incorporation, State or Country Code | CA | |
Entity Tax Identification Number | 77-0369575 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false |
EPT - Condensed Consolidated Ba
EPT - Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Rental properties: | ||
Land and land improvements | $ 3,036,912 | $ 3,043,321 |
Buildings and improvements | 13,036,033 | 12,922,906 |
Total rental properties | 16,072,945 | 15,966,227 |
Less: accumulated depreciation | (5,527,559) | (5,152,133) |
Net real estate | 10,545,386 | 10,814,094 |
Real estate under development | 23,067 | 24,857 |
Co-investments | 1,133,515 | 1,127,491 |
Total real estate | 11,701,968 | 11,966,442 |
Cash and cash equivalents-unrestricted | 391,994 | 33,295 |
Cash and cash equivalents-restricted | 8,503 | 9,386 |
Marketable securities, net of allowance for credit losses of zero as of both September 30, 2023 and December 31, 2022 | 90,186 | 112,743 |
Notes and other receivables, net of allowance for credit losses of $0.6 million and $0.3 million as of September 30, 2023 and December 31, 2022, respectively (includes related party receivables of $7.2 million and $7.0 million as of September 30, 2023 and December 31, 2022, respectively) | 164,603 | 103,045 |
Operating lease right-of-use assets | 64,636 | 67,239 |
Prepaid expenses and other assets | 75,757 | 80,755 |
Total assets | 12,497,647 | 12,372,905 |
LIABILITIES AND EQUITY | ||
Unsecured debt, net | 5,316,929 | 5,312,168 |
Mortgage notes payable, net | 888,010 | 593,943 |
Lines of credit | 0 | 52,073 |
Accounts payable and accrued liabilities | 215,201 | 165,461 |
Construction payable | 22,709 | 23,159 |
Dividends payable | 155,806 | 149,166 |
Distributions in excess of investments in co-investments | 50,686 | 42,532 |
Operating lease liabilities | 65,927 | 68,696 |
Other liabilities | 45,972 | 43,441 |
Total liabilities | 6,761,240 | 6,450,639 |
Commitments and contingencies | ||
Redeemable noncontrolling interest | 29,960 | 27,150 |
Equity: | ||
Common stock; $0.0001 par value, 670,000,000 shares authorized; 64,184,604 and 64,604,603 shares issued and outstanding, respectively | 6 | 6 |
Additional paid-in capital | 6,660,916 | 6,750,076 |
Distributions in excess of accumulated earnings | (1,184,597) | (1,080,176) |
Accumulated other comprehensive income, net | 55,358 | 46,466 |
Total stockholders' equity | 5,531,683 | 5,716,372 |
Noncontrolling interest | 174,764 | 178,744 |
Total equity | 5,706,447 | 5,895,116 |
Total liabilities and equity | $ 12,497,647 | $ 12,372,905 |
EPT - Condensed Consolidated _2
EPT - Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - USD ($) | Sep. 30, 2023 | Dec. 31, 2022 |
Marketable securities, allowance for credit loss | $ 0 | $ 0 |
Notes and other receivables, allowance for credit loss | $ 642,000 | $ 334,000 |
Common stock, par value (in dollars per share) | $ 0.0001 | $ 0.0001 |
Common stock, shares authorized (in shares) | 670,000,000 | 670,000,000 |
Common stock, shares issued (in shares) | 64,184,604 | 64,604,603 |
Common stock, shares outstanding (in shares) | 64,184,604 | 64,604,603 |
Related Party | ||
Notes and other receivables, allowance for credit loss | $ 7,200,000 | $ 7,000,000 |
EPLP - Condensed Consolidated B
EPLP - Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Rental properties: | ||
Land and land improvements | $ 3,036,912 | $ 3,043,321 |
Buildings and improvements | 13,036,033 | 12,922,906 |
Total rental properties | 16,072,945 | 15,966,227 |
Less: accumulated depreciation | (5,527,559) | (5,152,133) |
Net real estate | 10,545,386 | 10,814,094 |
Real estate under development | 23,067 | 24,857 |
Co-investments | 1,133,515 | 1,127,491 |
Total real estate | 11,701,968 | 11,966,442 |
Cash and cash equivalents-unrestricted | 391,994 | 33,295 |
Cash and cash equivalents-restricted | 8,503 | 9,386 |
Marketable securities, net of allowance for credit losses of zero as of both September 30, 2023 and December 31, 2022 | 90,186 | 112,743 |
Notes and other receivables, net of allowance for credit losses of $0.6 million and $0.3 million as of September 30, 2023 and December 31, 2022, respectively (includes related party receivables of $7.2 million and $7.0 million as of September 30, 2023 and December 31, 2022, respectively) | 164,603 | 103,045 |
Operating lease right-of-use assets | 64,636 | 67,239 |
Prepaid expenses and other assets | 75,757 | 80,755 |
Total assets | 12,497,647 | 12,372,905 |
LIABILITIES AND CAPITAL | ||
Unsecured debt, net | 5,316,929 | 5,312,168 |
Mortgage notes payable, net | 888,010 | 593,943 |
Lines of credit | 0 | 52,073 |
Accounts payable and accrued liabilities | 215,201 | 165,461 |
Construction payable | 22,709 | 23,159 |
Distributions payable | 155,806 | 149,166 |
Distributions in excess of investments in co-investments | 50,686 | 42,532 |
Operating lease liabilities | 65,927 | 68,696 |
Other liabilities | 45,972 | 43,441 |
Total liabilities | 6,761,240 | 6,450,639 |
Commitments and contingencies | ||
Redeemable noncontrolling interest | 29,960 | 27,150 |
Limited Partners: | ||
Accumulated other comprehensive income, net | 55,358 | 46,466 |
Noncontrolling interest | 174,764 | 178,744 |
Total liabilities and equity | 12,497,647 | 12,372,905 |
Essex Portfolio, L.P. | ||
Rental properties: | ||
Land and land improvements | 3,036,912 | 3,043,321 |
Buildings and improvements | 13,036,033 | 12,922,906 |
Total rental properties | 16,072,945 | 15,966,227 |
Less: accumulated depreciation | (5,527,559) | (5,152,133) |
Net real estate | 10,545,386 | 10,814,094 |
Real estate under development | 23,067 | 24,857 |
Co-investments | 1,133,515 | 1,127,491 |
Total real estate | 11,701,968 | 11,966,442 |
Cash and cash equivalents-unrestricted | 391,994 | 33,295 |
Cash and cash equivalents-restricted | 8,503 | 9,386 |
Marketable securities, net of allowance for credit losses of zero as of both September 30, 2023 and December 31, 2022 | 90,186 | 112,743 |
Notes and other receivables, net of allowance for credit losses of $0.6 million and $0.3 million as of September 30, 2023 and December 31, 2022, respectively (includes related party receivables of $7.2 million and $7.0 million as of September 30, 2023 and December 31, 2022, respectively) | 164,603 | 103,045 |
Operating lease right-of-use assets | 64,636 | 67,239 |
Prepaid expenses and other assets | 75,757 | 80,755 |
Total assets | 12,497,647 | 12,372,905 |
LIABILITIES AND CAPITAL | ||
Unsecured debt, net | 5,316,929 | 5,312,168 |
Mortgage notes payable, net | 888,010 | 593,943 |
Lines of credit | 0 | 52,073 |
Accounts payable and accrued liabilities | 215,201 | 165,461 |
Construction payable | 22,709 | 23,159 |
Distributions payable | 155,806 | 149,166 |
Distributions in excess of investments in co-investments | 50,686 | 42,532 |
Operating lease liabilities | 65,927 | 68,696 |
Other liabilities | 45,972 | 43,441 |
Total liabilities | 6,761,240 | 6,450,639 |
Commitments and contingencies | ||
Redeemable noncontrolling interest | 29,960 | 27,150 |
Limited Partners: | ||
Accumulated other comprehensive income, net | 61,215 | 52,010 |
Total partners' capital | 5,585,254 | 5,773,370 |
Noncontrolling interest | 121,193 | 121,746 |
Total capital | 5,706,447 | 5,895,116 |
Total liabilities and equity | 12,497,647 | 12,372,905 |
Essex Portfolio, L.P. | General Partner | ||
General Partner: | ||
Common equity (64,184,604 and 64,604,603 units issued and outstanding, respectively) | 5,476,325 | 5,669,906 |
Essex Portfolio, L.P. | Limited Partners | ||
Limited Partners: | ||
Common equity (2,258,812 and 2,272,496 units issued and outstanding, respectively) | 47,714 | 51,454 |
Essex Portfolio, L.P. | Common Equity | General Partner | ||
General Partner: | ||
Common equity (64,184,604 and 64,604,603 units issued and outstanding, respectively) | 5,476,325 | 5,669,906 |
Limited Partners: | ||
Total capital | 5,476,325 | 5,669,906 |
Essex Portfolio, L.P. | Common Equity | Limited Partners | ||
Limited Partners: | ||
Total capital | $ 47,714 | $ 51,454 |
EPLP - Condensed Consolidated_2
EPLP - Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - USD ($) | Sep. 30, 2023 | Dec. 31, 2022 |
Marketable securities, allowance for credit loss | $ 0 | $ 0 |
Notes and other receivables, allowance for credit loss | $ 642,000 | $ 334,000 |
Common stock, shares issued (in shares) | 64,184,604 | 64,604,603 |
Common stock, shares outstanding (in shares) | 64,184,604 | 64,604,603 |
Related Party | ||
Notes and other receivables, allowance for credit loss | $ 7,200,000 | $ 7,000,000 |
Essex Portfolio, L.P. | ||
Marketable securities, allowance for credit loss | 0 | 0 |
Notes and other receivables, allowance for credit loss | $ 600,000 | $ 300,000 |
Essex Portfolio, L.P. | General Partner | ||
Common stock, shares issued (in shares) | 64,184,604 | 64,604,603 |
Common stock, shares outstanding (in shares) | 64,184,604 | 64,604,603 |
Essex Portfolio, L.P. | Limited Partners | ||
Common stock, shares issued (in shares) | 2,258,812 | 2,272,496 |
Common stock, shares outstanding (in shares) | 2,258,812 | 2,272,496 |
Essex Portfolio, L.P. | Related Party | ||
Notes and other receivables, allowance for credit loss | $ 7,200,000 | $ 7,000,000 |
EPT - Condensed Consolidated St
EPT - Condensed Consolidated Statements of Income and Comprehensive Income (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Revenues: | ||||
Rental and other property | $ 416,398 | $ 406,862 | $ 1,239,319 | $ 1,183,318 |
Management and other fees from affiliates | 2,785 | 2,886 | 8,328 | 8,313 |
Revenues | 419,183 | 409,748 | 1,247,647 | 1,191,631 |
Expenses: | ||||
Property operating, excluding real estate taxes | 77,020 | 73,450 | 224,745 | 212,069 |
Real estate taxes | 46,876 | 46,593 | 138,787 | 137,594 |
Corporate-level property management expenses | 11,504 | 10,184 | 34,387 | 30,532 |
Depreciation and amortization | 137,357 | 135,511 | 410,422 | 403,561 |
General and administrative | 14,611 | 15,172 | 43,735 | 40,541 |
Expensed acquisition and investment related costs | 31 | 230 | 375 | 248 |
Casualty loss | 0 | 0 | 433 | 0 |
Total expenses | 287,399 | 281,140 | 852,884 | 824,545 |
Gain on sale of real estate and land | 0 | 0 | 59,238 | 0 |
Earnings from operations | 131,784 | 128,608 | 454,001 | 367,086 |
Interest expense | (54,161) | (51,645) | (157,806) | (152,499) |
Total return swap income | 690 | 1,882 | 2,544 | 6,709 |
Interest and other income (loss) | 4,406 | (6,796) | 29,055 | (31,571) |
Equity income from co-investments | 10,694 | 10,985 | 33,802 | 23,756 |
Tax (expense) benefit on unconsolidated co-investments | (404) | (1,755) | (1,237) | 7,863 |
Loss on early retirement of debt, net | 0 | (2) | 0 | (2) |
Gain on remeasurement of co-investment | 0 | 17,423 | 0 | 17,423 |
Net income | 93,009 | 98,700 | 360,359 | 238,765 |
Net income attributable to noncontrolling interest | (5,727) | (5,858) | (19,925) | (15,615) |
Net income available to common stockholders | 87,282 | 92,842 | 340,434 | 223,150 |
Comprehensive income | 97,122 | 124,797 | 369,564 | 297,053 |
Comprehensive income attributable to noncontrolling interest | (5,867) | (6,740) | (20,238) | (17,582) |
Comprehensive income attributable to controlling interest | $ 91,255 | $ 118,057 | $ 349,326 | $ 279,471 |
Basic: | ||||
Net income available to common stockholders (in dollars per share) | $ 1.36 | $ 1.43 | $ 5.30 | $ 3.42 |
Weighted average number of shares outstanding during the period (in shares) | 64,184,180 | 65,059,678 | 64,274,085 | 65,198,532 |
Diluted: | ||||
Net income available to common stockholders (in dollars per share) | $ 1.36 | $ 1.43 | $ 5.30 | $ 3.42 |
Weighted average number of shares outstanding during the period (in shares) | 64,186,020 | 65,067,790 | 64,275,279 | 65,225,767 |
EPLP - Condensed Consolidated S
EPLP - Condensed Consolidated Statements of Income and Comprehensive Income (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Revenues: | ||||
Rental and other property | $ 416,398 | $ 406,862 | $ 1,239,319 | $ 1,183,318 |
Management and other fees from affiliates | 2,785 | 2,886 | 8,328 | 8,313 |
Revenues | 419,183 | 409,748 | 1,247,647 | 1,191,631 |
Expenses: | ||||
Property operating, excluding real estate taxes | 77,020 | 73,450 | 224,745 | 212,069 |
Real estate taxes | 46,876 | 46,593 | 138,787 | 137,594 |
Corporate-level property management expenses | 11,504 | 10,184 | 34,387 | 30,532 |
Depreciation and amortization | 137,357 | 135,511 | 410,422 | 403,561 |
General and administrative | 14,611 | 15,172 | 43,735 | 40,541 |
Expensed acquisition and investment related costs | 31 | 230 | 375 | 248 |
Casualty loss | 0 | 0 | 433 | 0 |
Total expenses | 287,399 | 281,140 | 852,884 | 824,545 |
Gain on sale of real estate and land | 0 | 0 | 59,238 | 0 |
Earnings from operations | 131,784 | 128,608 | 454,001 | 367,086 |
Interest expense | (54,161) | (51,645) | (157,806) | (152,499) |
Total return swap income | 690 | 1,882 | 2,544 | 6,709 |
Interest and other income (loss) | 4,406 | (6,796) | 29,055 | (31,571) |
Equity income from co-investments | 10,694 | 10,985 | 33,802 | 23,756 |
Tax (expense) benefit on unconsolidated co-investments | (404) | (1,755) | (1,237) | 7,863 |
Loss on early retirement of debt, net | 0 | (2) | 0 | (2) |
Gain on remeasurement of co-investment | 0 | 17,423 | 0 | 17,423 |
Net income | 93,009 | 98,700 | 360,359 | 238,765 |
Net income attributable to noncontrolling interest | (5,727) | (5,858) | (19,925) | (15,615) |
Net income available to common stockholders | 87,282 | 92,842 | 340,434 | 223,150 |
Comprehensive income | 97,122 | 124,797 | 369,564 | 297,053 |
Comprehensive income attributable to noncontrolling interest | (5,867) | (6,740) | (20,238) | (17,582) |
Comprehensive income attributable to controlling interest | $ 91,255 | $ 118,057 | $ 349,326 | $ 279,471 |
Basic: | ||||
Net income available to common unitholders (in dollars per share) | $ 1.36 | $ 1.43 | $ 5.30 | $ 3.42 |
Weighted average number of common units outstanding during the period (in shares) | 64,184,180 | 65,059,678 | 64,274,085 | 65,198,532 |
Diluted: | ||||
Net income available to common unitholders (in dollars per share) | $ 1.36 | $ 1.43 | $ 5.30 | $ 3.42 |
Weighted average number of common units outstanding during the period (in shares) | 64,186,020 | 65,067,790 | 64,275,279 | 65,225,767 |
Essex Portfolio, L.P. | ||||
Revenues: | ||||
Rental and other property | $ 416,398 | $ 406,862 | $ 1,239,319 | $ 1,183,318 |
Management and other fees from affiliates | 2,785 | 2,886 | 8,328 | 8,313 |
Revenues | 419,183 | 409,748 | 1,247,647 | 1,191,631 |
Expenses: | ||||
Property operating, excluding real estate taxes | 77,020 | 73,450 | 224,745 | 212,069 |
Real estate taxes | 46,876 | 46,593 | 138,787 | 137,594 |
Corporate-level property management expenses | 11,504 | 10,184 | 34,387 | 30,532 |
Depreciation and amortization | 137,357 | 135,511 | 410,422 | 403,561 |
General and administrative | 14,611 | 15,172 | 43,735 | 40,541 |
Expensed acquisition and investment related costs | 31 | 230 | 375 | 248 |
Casualty loss | 0 | 0 | 433 | 0 |
Total expenses | 287,399 | 281,140 | 852,884 | 824,545 |
Gain on sale of real estate and land | 0 | 0 | 59,238 | 0 |
Earnings from operations | 131,784 | 128,608 | 454,001 | 367,086 |
Interest expense | (54,161) | (51,645) | (157,806) | (152,499) |
Total return swap income | 690 | 1,882 | 2,544 | 6,709 |
Interest and other income (loss) | 4,406 | (6,796) | 29,055 | (31,571) |
Equity income from co-investments | 10,694 | 10,985 | 33,802 | 23,756 |
Tax (expense) benefit on unconsolidated co-investments | (404) | (1,755) | (1,237) | 7,863 |
Loss on early retirement of debt, net | 0 | (2) | 0 | (2) |
Gain on remeasurement of co-investment | 0 | 17,423 | 0 | 17,423 |
Net income | 93,009 | 98,700 | 360,359 | 238,765 |
Net income attributable to noncontrolling interest | (2,655) | (2,611) | (7,943) | (7,815) |
Net income available to common stockholders | 90,354 | 96,089 | 352,416 | 230,950 |
Comprehensive income | 97,122 | 124,797 | 369,564 | 297,053 |
Comprehensive income attributable to noncontrolling interest | (2,655) | (2,611) | (7,943) | (7,815) |
Comprehensive income attributable to controlling interest | $ 94,467 | $ 122,186 | $ 361,621 | $ 289,238 |
Basic: | ||||
Net income available to common unitholders (in dollars per share) | $ 1.36 | $ 1.43 | $ 5.30 | $ 3.42 |
Weighted average number of common units outstanding during the period (in shares) | 66,443,416 | 67,333,077 | 66,535,917 | 67,476,168 |
Diluted: | ||||
Net income available to common unitholders (in dollars per share) | $ 1.36 | $ 1.43 | $ 5.30 | $ 3.42 |
Weighted average number of common units outstanding during the period (in shares) | 66,445,256 | 67,341,189 | 66,537,111 | 67,503,403 |
EPT - Condensed Consolidated _3
EPT - Condensed Consolidated Statements of Equity for the three and nine months ended September 30, 2023 and 2022 (Unaudited) - USD ($) shares in Thousands, $ in Thousands | Total | Common stock | Additional paid-in capital | Distributions in excess of accumulated earnings | Accumulated other comprehensive income (loss), net | Noncontrolling interest |
Balance at period beginning (in shares) at Dec. 31, 2021 | 65,248 | |||||
Balance at period beginning at Dec. 31, 2021 | $ 6,176,508 | $ 7 | $ 6,915,981 | $ (916,833) | $ (5,552) | $ 182,905 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income | 238,765 | 223,150 | 15,615 | |||
Change in fair value of derivatives and amortization of swap settlements | 58,084 | 56,124 | 1,960 | |||
Change in fair value of marketable debt securities, net | 204 | 197 | 7 | |||
Issuance of common stock under: | ||||||
Stock option and restricted stock plans, net (in shares) | 88 | |||||
Stock option and restricted stock plans, net | 17,194 | 17,194 | ||||
Sale of common stock, net | (314) | (314) | ||||
Equity based compensation costs | 7,082 | 6,843 | 239 | |||
Retirement of common stock, net (in shares) | (591) | |||||
Retirement of common stock, net | (157,951) | $ (1) | (157,950) | |||
Changes in the redemption value of redeemable noncontrolling interest | 4,950 | 4,246 | 704 | |||
Contributions from noncontrolling interest | 125 | 125 | ||||
Distributions to noncontrolling interest | (22,989) | (22,989) | ||||
Redemptions of noncontrolling interest (in shares) | 8 | |||||
Redemptions of noncontrolling interest | (10,929) | (10,128) | (801) | |||
Common stock dividends | (429,532) | (429,532) | ||||
Balance at period end (in shares) at Sep. 30, 2022 | 64,753 | |||||
Balance at period end at Sep. 30, 2022 | 5,881,197 | $ 6 | 6,775,872 | (1,123,215) | 50,769 | 177,765 |
Balance at period beginning (in shares) at Jun. 30, 2022 | 65,124 | |||||
Balance at period beginning at Jun. 30, 2022 | 6,006,585 | $ 7 | 6,875,863 | (1,073,577) | 25,554 | 178,738 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income | 98,700 | 92,842 | 5,858 | |||
Change in fair value of derivatives and amortization of swap settlements | 26,189 | 25,304 | 885 | |||
Change in fair value of marketable debt securities, net | (92) | (89) | (3) | |||
Issuance of common stock under: | ||||||
Stock option and restricted stock plans, net (in shares) | 1 | |||||
Stock option and restricted stock plans, net | 155 | 155 | ||||
Sale of common stock, net | (107) | (107) | ||||
Equity based compensation costs | 1,957 | 1,891 | 66 | |||
Retirement of common stock, net (in shares) | (372) | |||||
Retirement of common stock, net | (97,121) | $ (1) | (97,120) | |||
Changes in the redemption value of redeemable noncontrolling interest | 3,727 | 3,195 | 532 | |||
Distributions to noncontrolling interest | (7,748) | (7,748) | ||||
Redemptions of noncontrolling interest | (8,568) | (8,005) | (563) | |||
Common stock dividends | (142,480) | (142,480) | ||||
Balance at period end (in shares) at Sep. 30, 2022 | 64,753 | |||||
Balance at period end at Sep. 30, 2022 | 5,881,197 | $ 6 | 6,775,872 | (1,123,215) | 50,769 | 177,765 |
Balance at period beginning (in shares) at Dec. 31, 2022 | 64,605 | |||||
Balance at period beginning at Dec. 31, 2022 | 5,895,116 | $ 6 | 6,750,076 | (1,080,176) | 46,466 | 178,744 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income | 360,359 | 340,434 | 19,925 | |||
Change in fair value of derivatives and amortization of swap settlements | 9,205 | 8,892 | 313 | |||
Issuance of common stock under: | ||||||
Stock option and restricted stock plans, net (in shares) | 3 | |||||
Stock option and restricted stock plans, net | 0 | |||||
Sale of common stock, net | (231) | (231) | ||||
Equity based compensation costs | 9,935 | 9,598 | 337 | |||
Retirement of common stock, net (in shares) | (437) | |||||
Retirement of common stock, net | (95,657) | (95,657) | ||||
Changes in the redemption value of redeemable noncontrolling interest | (2,810) | (2,770) | (40) | |||
Distributions to noncontrolling interest | (24,006) | (24,006) | ||||
Redemptions of noncontrolling interest (in shares) | 14 | |||||
Redemptions of noncontrolling interest | (609) | (100) | (509) | |||
Common stock dividends | (444,855) | (444,855) | ||||
Balance at period end (in shares) at Sep. 30, 2023 | 64,185 | |||||
Balance at period end at Sep. 30, 2023 | 5,706,447 | $ 6 | 6,660,916 | (1,184,597) | 55,358 | 174,764 |
Balance at period beginning (in shares) at Jun. 30, 2023 | 64,183 | |||||
Balance at period beginning at Jun. 30, 2023 | 5,762,005 | $ 6 | 6,657,481 | (1,123,594) | 51,385 | 176,727 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income | 93,009 | 87,282 | 5,727 | |||
Change in fair value of derivatives and amortization of swap settlements | 4,113 | 3,973 | 140 | |||
Issuance of common stock under: | ||||||
Sale of common stock, net | (106) | (106) | ||||
Equity based compensation costs | 2,289 | 2,211 | 78 | |||
Changes in the redemption value of redeemable noncontrolling interest | 1,395 | 1,317 | 78 | |||
Distributions to noncontrolling interest | (7,973) | (7,973) | ||||
Redemptions of noncontrolling interest (in shares) | 2 | |||||
Redemptions of noncontrolling interest | 0 | 13 | (13) | |||
Common stock dividends | (148,285) | (148,285) | ||||
Balance at period end (in shares) at Sep. 30, 2023 | 64,185 | |||||
Balance at period end at Sep. 30, 2023 | $ 5,706,447 | $ 6 | $ 6,660,916 | $ (1,184,597) | $ 55,358 | $ 174,764 |
EPT - Condensed Consolidated _4
EPT - Condensed Consolidated Statements of Equity for the three and nine months ended September 30, 2023 and 2022 (Unaudited) (Parenthetical) - $ / shares | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Statement of Stockholders' Equity [Abstract] | ||||
Common stock dividends (in dollars per share) | $ 2.31 | $ 2.20 | $ 6.93 | $ 6.60 |
EPLP - Condensed Consolidated_3
EPLP - Condensed Consolidated Statements of Capital for the three and nine months ended September 30, 2023 and 2022 (Unaudited) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Increase (Decrease) in Partners' Capital [Roll Forward] | ||||
Net income | $ 93,009 | $ 98,700 | $ 360,359 | $ 238,765 |
Change in fair value of derivatives and amortization of swap settlements | 4,113 | 26,189 | 9,205 | 58,084 |
Change in fair value of marketable debt securities, net | (92) | 204 | ||
Issuance of common units under: | ||||
Sale of common stock by general partner, net | (106) | (107) | (231) | (314) |
Retirement of common units, net | (97,121) | (95,657) | (157,951) | |
Changes in the redemption value of redeemable noncontrolling interest | 1,395 | 3,727 | (2,810) | 4,950 |
Contributions from noncontrolling interest | 125 | |||
Distributions to noncontrolling interest | (7,973) | (7,748) | (24,006) | (22,989) |
Redemptions | 0 | (8,568) | (609) | (10,929) |
Noncontrolling interest | ||||
Issuance of common units under: | ||||
Contributions from noncontrolling interest | 125 | |||
Essex Portfolio, L.P. | ||||
Increase (Decrease) in Partners' Capital [Roll Forward] | ||||
Balance at period beginning | 5,762,005 | 6,006,585 | 5,895,116 | 6,176,508 |
Net income | 93,009 | 98,700 | 360,359 | 238,765 |
Change in fair value of derivatives and amortization of swap settlements | 4,113 | 26,189 | 9,205 | 58,084 |
Change in fair value of marketable debt securities, net | (92) | 204 | ||
Issuance of common units under: | ||||
General partner's stock based compensation, net | 155 | 0 | 17,194 | |
Sale of common stock by general partner, net | (106) | (107) | (231) | (314) |
Equity based compensation costs | 2,289 | 1,957 | 9,935 | 7,082 |
Retirement of common units, net | (97,121) | (95,657) | (157,951) | |
Changes in the redemption value of redeemable noncontrolling interest | 1,395 | 3,727 | (2,810) | 4,950 |
Contributions from noncontrolling interest | 125 | |||
Distributions to noncontrolling interest | (2,754) | (2,747) | (8,344) | (7,965) |
Redemptions | 0 | (8,568) | (609) | (10,929) |
Distributions declared | (153,504) | (147,481) | (460,517) | (444,556) |
Balance at period end | $ 5,706,447 | $ 5,881,197 | $ 5,706,447 | $ 5,881,197 |
Essex Portfolio, L.P. | Common Equity | General Partner | ||||
Increase (Decrease) in Partners' Capital [Roll Forward] | ||||
Balance at period beginning (in shares) | 64,183 | 65,124 | 64,605 | 65,248 |
Balance at period beginning | $ 5,533,893 | $ 5,802,293 | $ 5,669,906 | $ 5,999,155 |
Net income | 87,282 | $ 92,842 | $ 340,434 | $ 223,150 |
Issuance of common units under: | ||||
General partner's stock based compensation, net (in shares) | 1 | 3 | 88 | |
General partner's stock based compensation, net | $ 155 | $ 17,194 | ||
Sale of common stock by general partner, net | (106) | (107) | $ (231) | (314) |
Equity based compensation costs | 2,211 | $ 1,891 | $ 9,598 | $ 6,843 |
Retirement of common units, net (in shares) | (372) | (437) | (591) | |
Retirement of common units, net | $ (97,121) | $ (95,657) | $ (157,951) | |
Changes in the redemption value of redeemable noncontrolling interest | 1,317 | 3,195 | (2,770) | 4,246 |
Redemptions | $ 13 | (8,005) | $ (100) | $ (10,128) |
Redemptions (in shares) | 2 | 14 | 8 | |
Distributions declared | $ (148,285) | $ (142,480) | $ (444,855) | $ (429,532) |
Balance at period end (in shares) | 64,185 | 64,753 | 64,185 | 64,753 |
Balance at period end | $ 5,476,325 | $ 5,652,663 | $ 5,476,325 | $ 5,652,663 |
Essex Portfolio, L.P. | Common Equity | Limited Partners | ||||
Increase (Decrease) in Partners' Capital [Roll Forward] | ||||
Balance at period beginning (in shares) | 2,260 | 2,273 | 2,272 | 2,282 |
Balance at period beginning | $ 49,704 | $ 51,233 | $ 51,454 | $ 56,502 |
Net income | 3,072 | 3,247 | 11,982 | 7,800 |
Issuance of common units under: | ||||
Equity based compensation costs | 78 | 66 | 337 | 239 |
Changes in the redemption value of redeemable noncontrolling interest | 90 | $ 172 | (42) | 294 |
Redemptions | $ (11) | $ (355) | $ (94) | |
Redemptions (in shares) | (1) | (1) | (13) | (10) |
Distributions declared | $ (5,219) | $ (5,001) | $ (15,662) | $ (15,024) |
Balance at period end (in shares) | 2,259 | 2,272 | 2,259 | 2,272 |
Balance at period end | $ 47,714 | $ 49,717 | $ 47,714 | $ 49,717 |
Essex Portfolio, L.P. | Accumulated other comprehensive income (loss), net | ||||
Increase (Decrease) in Partners' Capital [Roll Forward] | ||||
Balance at period beginning | 57,102 | 30,387 | 52,010 | (1,804) |
Change in fair value of derivatives and amortization of swap settlements | 4,113 | 26,189 | 9,205 | 58,084 |
Change in fair value of marketable debt securities, net | (92) | 204 | ||
Issuance of common units under: | ||||
Balance at period end | 61,215 | 56,484 | 61,215 | 56,484 |
Essex Portfolio, L.P. | Noncontrolling interest | ||||
Increase (Decrease) in Partners' Capital [Roll Forward] | ||||
Balance at period beginning | 121,306 | 122,672 | 121,746 | 122,655 |
Net income | 2,655 | 2,611 | 7,943 | 7,815 |
Issuance of common units under: | ||||
Changes in the redemption value of redeemable noncontrolling interest | (12) | 360 | 2 | 410 |
Distributions to noncontrolling interest | (2,754) | (2,747) | (8,344) | (7,965) |
Redemptions | (2) | (563) | (154) | (707) |
Balance at period end | $ 121,193 | $ 122,333 | $ 121,193 | $ 122,333 |
EPLP - Condensed Consolidated_4
EPLP - Condensed Consolidated Statements of Capital for the three and nine months ended September 30, 2023 and 2022 (Unaudited) (Parenthetical) - $ / shares | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Essex Portfolio, L.P. | ||||
Distribution declared (in dollars per share) | $ 2.31 | $ 2.20 | $ 6.93 | $ 6.60 |
EPT - Condensed Consolidated _5
EPT - Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2022 | |
Cash flows from operating activities: | ||
Net income | $ 360,359 | $ 238,765 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Straight-lined rents | 1,650 | 5,529 |
Depreciation and amortization | 410,422 | 403,561 |
Amortization of discount and debt financing costs, net | 5,028 | 4,916 |
Realized and unrealized (gains) losses on marketable securities, net | (4,294) | 51,126 |
Provision for credit losses | 51 | 64 |
Earnings from co-investments | (33,802) | (23,756) |
Operating distributions from co-investments | 48,229 | 86,854 |
Accrued interest from notes and other receivables | (8,919) | (10,748) |
Casualty loss | 433 | 0 |
Gain on the sale of real estate and land | (59,238) | 0 |
Equity-based compensation | 5,943 | 6,589 |
Loss on early retirement of debt, net | 0 | 2 |
Gain on remeasurement of co-investment | 0 | (17,423) |
Changes in operating assets and liabilities: | ||
Prepaid expenses, receivables, operating lease right-of-use assets, and other assets | 3,024 | 15,406 |
Accounts payable, accrued liabilities, and operating lease liabilities | 44,971 | 38,948 |
Other liabilities | 2,533 | 8,902 |
Net cash provided by operating activities | 776,390 | 808,735 |
Additions to real estate: | ||
Acquisitions of real estate and acquisition related capital expenditures, net of cash acquired | (23,845) | (21,759) |
Redevelopment | (56,168) | (67,974) |
Development acquisitions of and additions to real estate under development | (6,317) | (22,754) |
Capital expenditures on rental properties | (94,304) | (107,105) |
Investments in notes receivable | (52,888) | (160,013) |
Collections of notes and other receivables | 0 | 303,088 |
Proceeds from insurance for property losses | 2,991 | 4,325 |
Proceeds from dispositions of real estate | 99,388 | 0 |
Contributions to co-investments | (32,169) | (159,461) |
Changes in refundable deposits | 10,200 | (16,318) |
Purchases of marketable securities | (11,552) | (12,760) |
Sales and maturities of marketable securities | 46,989 | 30,025 |
Non-operating distributions from co-investments | 15,251 | 161,324 |
Net cash used in investing activities | (102,424) | (69,382) |
Cash flows from financing activities: | ||
Proceeds from unsecured debt and mortgage notes | 598,000 | 0 |
Payments on unsecured debt and mortgage notes | (301,678) | (24,103) |
Proceeds from lines of credit | 844,021 | 1,053,663 |
Repayments of lines of credit | (896,094) | (1,175,440) |
Retirement of common stock | (95,657) | (157,951) |
Additions to deferred charges | (1,681) | (140) |
Net costs from issuance of common stock | (231) | (314) |
Net proceeds from stock options exercised | 0 | 19,410 |
Payments related to tax withholding for share-based compensation | 0 | (2,216) |
Contributions from noncontrolling interest | 0 | 125 |
Distributions to noncontrolling interest | (23,532) | (22,606) |
Redemption of noncontrolling interest | (609) | (10,929) |
Redemption of redeemable noncontrolling interest | 0 | (478) |
Common stock dividends paid | (438,689) | (423,443) |
Net cash used in financing activities | (316,150) | (744,422) |
Net increase (decrease) in unrestricted and restricted cash and cash equivalents | 357,816 | (5,069) |
Unrestricted and restricted cash and cash equivalents at beginning of period | 42,681 | 58,638 |
Unrestricted and restricted cash and cash equivalents at end of period | 400,497 | 53,569 |
Supplemental disclosure of cash flow information: | ||
Cash paid for interest (net of $0.7 million and $1.9 million capitalized in 2023 and 2022, respectively) | 159,758 | 149,970 |
Operating cash flows from operating leases | 5,298 | 5,225 |
Supplemental disclosure of noncash investing and financing activities: | ||
Transfers between real estate under development and rental properties, net | 827 | 98,024 |
Transfers from real estate under development to co-investments | 1,322 | 2,090 |
Reclassifications to (from) redeemable noncontrolling interest from additional paid in capital and noncontrolling interest | 2,810 | (4,950) |
Debt assumed in connection with acquisition | $ 0 | $ 21,303 |
EPT - Condensed Consolidated _6
EPT - Condensed Consolidated Statements of Cash Flows (Unaudited) (Parenthetical) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2022 | |
Statement of Cash Flows [Abstract] | ||
Interest capitalized | $ 0.7 | $ 1.9 |
EPLP - Condensed Consolidated_5
EPLP - Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2022 | |
Cash flows from operating activities: | ||
Net income | $ 360,359 | $ 238,765 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Straight-lined rents | 1,650 | 5,529 |
Depreciation and amortization | 410,422 | 403,561 |
Amortization of discount and debt financing costs, net | 5,028 | 4,916 |
Realized and unrealized (gains) losses on marketable securities, net | (4,294) | 51,126 |
Provision for credit losses | 51 | 64 |
Earnings from co-investments | (33,802) | (23,756) |
Operating distributions from co-investments | 48,229 | 86,854 |
Accrued interest from notes and other receivables | (8,919) | (10,748) |
Casualty loss | 433 | 0 |
Gain on the sale of real estate and land | (59,238) | 0 |
Equity-based compensation | 5,943 | 6,589 |
Loss on early retirement of debt, net | 0 | 2 |
Gain on remeasurement of co-investment | 0 | (17,423) |
Changes in operating assets and liabilities: | ||
Prepaid expenses, receivables, operating lease right-of-use assets, and other assets | 3,024 | 15,406 |
Accounts payable, accrued liabilities, and operating lease liabilities | 44,971 | 38,948 |
Other liabilities | 2,533 | 8,902 |
Net cash provided by operating activities | 776,390 | 808,735 |
Additions to real estate: | ||
Acquisitions of real estate and acquisition related capital expenditures, net of cash acquired | (23,845) | (21,759) |
Redevelopment | (56,168) | (67,974) |
Development acquisitions of and additions to real estate under development | (6,317) | (22,754) |
Capital expenditures on rental properties | (94,304) | (107,105) |
Investments in notes receivable | (52,888) | (160,013) |
Collections of notes and other receivables | 0 | 303,088 |
Proceeds from insurance for property losses | 2,991 | 4,325 |
Proceeds from dispositions of real estate | 99,388 | 0 |
Contributions to co-investments | (32,169) | (159,461) |
Changes in refundable deposits | 10,200 | (16,318) |
Purchases of marketable securities | (11,552) | (12,760) |
Sales and maturities of marketable securities | 46,989 | 30,025 |
Non-operating distributions from co-investments | 15,251 | 161,324 |
Net cash used in investing activities | (102,424) | (69,382) |
Cash flows from financing activities: | ||
Proceeds from unsecured debt and mortgage notes | 598,000 | 0 |
Payments on unsecured debt and mortgage notes | (301,678) | (24,103) |
Proceeds from lines of credit | 844,021 | 1,053,663 |
Repayments of lines of credit | (896,094) | (1,175,440) |
Retirement of common stock | (95,657) | (157,951) |
Additions to deferred charges | (1,681) | (140) |
Net costs from issuance of common units | (231) | (314) |
Net proceeds from stock options exercised | 0 | 19,410 |
Payments related to tax withholding for share-based compensation | 0 | (2,216) |
Contributions from noncontrolling interest | 0 | 125 |
Distributions to noncontrolling interest | (23,532) | (22,606) |
Redemption of noncontrolling interests | (609) | (10,929) |
Redemption of redeemable noncontrolling interest | 0 | (478) |
Common units distributions paid | (438,689) | (423,443) |
Net cash used in financing activities | (316,150) | (744,422) |
Net increase (decrease) in unrestricted and restricted cash and cash equivalents | 357,816 | (5,069) |
Unrestricted and restricted cash and cash equivalents at beginning of period | 42,681 | 58,638 |
Unrestricted and restricted cash and cash equivalents at end of period | 400,497 | 53,569 |
Supplemental disclosure of cash flow information: | ||
Cash paid for interest (net of $0.7 million and $1.9 million capitalized in 2023 and 2022, respectively) | 159,758 | 149,970 |
Operating cash flows from operating leases | 5,298 | 5,225 |
Supplemental disclosure of noncash investing and financing activities: | ||
Transfers between real estate under development and rental properties, net | 827 | 98,024 |
Transfers from real estate under development to co-investments | 1,322 | 2,090 |
Reclassifications to (from) redeemable noncontrolling interest from general and limited partner capital and noncontrolling interest | 2,810 | (4,950) |
Debt assumed in connection with acquisition | 0 | 21,303 |
Essex Portfolio, L.P. | ||
Cash flows from operating activities: | ||
Net income | 360,359 | 238,765 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Straight-lined rents | 1,650 | 5,529 |
Depreciation and amortization | 410,422 | 403,561 |
Amortization of discount and debt financing costs, net | 5,028 | 4,916 |
Realized and unrealized (gains) losses on marketable securities, net | (4,294) | 51,126 |
Provision for credit losses | 51 | 64 |
Earnings from co-investments | (33,802) | (23,756) |
Operating distributions from co-investments | 48,229 | 86,854 |
Accrued interest from notes and other receivables | (8,919) | (10,748) |
Casualty loss | 433 | 0 |
Gain on the sale of real estate and land | (59,238) | 0 |
Equity-based compensation | 5,943 | 6,589 |
Loss on early retirement of debt, net | 0 | 2 |
Gain on remeasurement of co-investment | 0 | (17,423) |
Changes in operating assets and liabilities: | ||
Prepaid expenses, receivables, operating lease right-of-use assets, and other assets | 3,024 | 15,406 |
Accounts payable, accrued liabilities, and operating lease liabilities | 44,971 | 38,948 |
Other liabilities | 2,533 | 8,902 |
Net cash provided by operating activities | 776,390 | 808,735 |
Additions to real estate: | ||
Acquisitions of real estate and acquisition related capital expenditures, net of cash acquired | (23,845) | (21,759) |
Redevelopment | (56,168) | (67,974) |
Development acquisitions of and additions to real estate under development | (6,317) | (22,754) |
Capital expenditures on rental properties | (94,304) | (107,105) |
Investments in notes receivable | (52,888) | (160,013) |
Collections of notes and other receivables | 0 | 303,088 |
Proceeds from insurance for property losses | 2,991 | 4,325 |
Proceeds from dispositions of real estate | 99,388 | 0 |
Contributions to co-investments | (32,169) | (159,461) |
Changes in refundable deposits | 10,200 | (16,318) |
Purchases of marketable securities | (11,552) | (12,760) |
Sales and maturities of marketable securities | 46,989 | 30,025 |
Non-operating distributions from co-investments | 15,251 | 161,324 |
Net cash used in investing activities | (102,424) | (69,382) |
Cash flows from financing activities: | ||
Proceeds from unsecured debt and mortgage notes | 598,000 | 0 |
Payments on unsecured debt and mortgage notes | (301,678) | (24,103) |
Proceeds from lines of credit | 844,021 | 1,053,663 |
Repayments of lines of credit | (896,094) | (1,175,440) |
Retirement of common stock | (95,657) | (157,951) |
Additions to deferred charges | (1,681) | (140) |
Net costs from issuance of common units | (231) | (314) |
Net proceeds from stock options exercised | 0 | 19,410 |
Payments related to tax withholding for share-based compensation | 0 | (2,216) |
Contributions from noncontrolling interest | 0 | 125 |
Distributions to noncontrolling interest | (6,395) | (6,380) |
Redemption of noncontrolling interests | (609) | (10,929) |
Redemption of redeemable noncontrolling interest | 0 | (478) |
Common units distributions paid | (455,826) | (439,669) |
Net cash used in financing activities | (316,150) | (744,422) |
Net increase (decrease) in unrestricted and restricted cash and cash equivalents | 357,816 | (5,069) |
Unrestricted and restricted cash and cash equivalents at beginning of period | 42,681 | 58,638 |
Unrestricted and restricted cash and cash equivalents at end of period | 400,497 | 53,569 |
Supplemental disclosure of cash flow information: | ||
Cash paid for interest (net of $0.7 million and $1.9 million capitalized in 2023 and 2022, respectively) | 159,758 | 149,970 |
Operating cash flows from operating leases | 5,298 | 5,225 |
Supplemental disclosure of noncash investing and financing activities: | ||
Transfers between real estate under development and rental properties, net | 827 | 98,024 |
Transfers from real estate under development to co-investments | 1,322 | 2,090 |
Reclassifications to (from) redeemable noncontrolling interest from general and limited partner capital and noncontrolling interest | 2,810 | (4,950) |
Debt assumed in connection with acquisition | $ 0 | $ 21,303 |
EPLP - Condensed Consolidated_6
EPLP - Condensed Consolidated Statements of Cash Flows (Unaudited) (Parenthetical) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2022 | |
Interest capitalized | $ 0.7 | $ 1.9 |
Essex Portfolio, L.P. | ||
Interest capitalized | $ 0.7 | $ 1.9 |
Organization and Basis of Prese
Organization and Basis of Presentation | 9 Months Ended |
Sep. 30, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization and Basis of Presentation | Organization and Basis of Presentation The accompanying unaudited condensed consolidated financial statements present the accounts of Essex Property Trust, Inc. ("Essex" or the "Company"), which include the accounts of the Company and Essex Portfolio, L.P. and its subsidiaries (the "Operating Partnership," which holds the operating assets of the Company), prepared in accordance with U.S. generally accepted accounting principles ("U.S. GAAP") for interim financial information and in accordance with the instructions to Form 10-Q. In the opinion of management, all adjustments necessary for a fair presentation of the financial position, results of operations, and cash flows for the periods presented have been included and are normal and recurring in nature. These unaudited condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements included in the Company's annual report on Form 10-K for the year ended December 31, 2022. All significant intercompany accounts and transactions have been eliminated in the unaudited condensed consolidated financial statements. The unaudited condensed consolidated financial statements for the three and nine months ended September 30, 2023 and 2022 include the accounts of the Company and the Operating Partnership. Essex is the sole general partner of the Operating Partnership, with a 96.6% general partnership interest as of both September 30, 2023 and December 31, 2022. Total Operating Partnership limited partnership units ("OP Units," and the holders of such OP Units, "Unitholders") outstanding were 2,258,812 and 2,272,496 as of September 30, 2023 and December 31, 2022, respectively, and the redemption value of the units, based on the closing price of the Company’s common stock totaled approximately $479.1 million and $481.6 million as of September 30, 2023 and December 31, 2022, respectively. As of September 30, 2023, the Company owned or had ownership interests in 252 operating apartment communities, comprising 61,997 apartment homes, excluding the Company’s ownership interest in preferred equity co-investments, loan investments, three operating commercial buildings, and a development pipeline comprised of one unconsolidated joint venture project. The operating apartment communities are located in Southern California (primarily Los Angeles, Orange, San Diego, and Ventura counties), Northern California (the San Francisco Bay Area) and the Seattle metropolitan areas. Recent Accounting Pronouncements In August 2023, the Financial Accounting Standards Board (the "FASB") issued Accounting Standards Update ("ASU") No. 2023-05 "Business Combinations—Joint Venture Formations (Subtopic 805-60)" under which an entity that qualifies as a joint venture is required to apply a new basis of accounting upon the formation of the joint venture. The amendments in ASU 2023-05 require that a joint venture must initially measure its assets and liabilities at fair value on the formation date. ASU 2023-05 is effective for all joint ventures that are formed on or after January 1, 2025 and early adoption is permitted. The Company does not expect the adoption to have a material impact on its consolidated results of operations and financial position. Revenues and Gains on Sale of Real Estate Revenues from tenants renting or leasing apartment homes are recorded when due from tenants and are recognized monthly as they are earned which generally approximates a straight-line basis, else, adjustments are made to conform to a straight-line basis. Apartment homes are rented under short-term leases (generally, lease terms of 9 to 12 months). Revenues from tenants leasing commercial space are recorded on a straight-line basis over the life of the respective lease. See Note 3, Revenues, for additional information regarding such revenues. The Company also generates other property-related revenue associated with the leasing of apartment homes, including storage income, pet rent, and other miscellaneous revenue. Similar to rental income, such revenues are recorded when due from tenants and recognized monthly as they are earned. Apart from rental and other property-related revenue, revenues from contracts with customers are recognized as control of the promised services is passed to the customer. For customer contracts related to management and other fees from affiliates (which includes asset management and property management), the transaction price and amount of revenue to be recognized is determined each quarter based on the management fee calculated and earned for that month or quarter. The contract will contain a description of the service and the fee percentage for management services. Payments from such services are one month or one quarter in arrears of the service performed. The Company recognizes any gains on sales of real estate when it transfers control of a property and when it is probable that the Company will collect substantially all of the related consideration. Marketable Securities The Company reports its equity securities at fair value, based on quoted market prices (Level 1 for the common stock and investment funds and Level 2 for the unsecured debt, and as defined by the FASB standard for fair value measurements). As of September 30, 2023 and December 31, 2022, $0.1 million and $0.2 million of equity securities presented within common stock, preferred stock, and stock funds in the tables below represent investments measured at fair value, using net asset value as a practical expedient, and are not categorized in the fair value hierarchy. Realized and unrealized gains and losses in equity securities and interest income are included in interest and other income on the condensed consolidated statements of income and comprehensive income. As of September 30, 2023 and December 31, 2022, equity securities consisted primarily of investment funds-debt securities, common stock, preferred stock and stock funds. As of September 30, 2023 and December 31, 2022, marketable securities consisted of the following ($ in thousands): September 30, 2023 Cost Gross Carrying Value Equity securities: Investment funds - debt securities $ 38,886 $ (6,814) $ 32,072 Common stock, preferred stock, and stock funds 51,026 7,088 58,114 Total - Marketable securities $ 89,912 $ 274 $ 90,186 December 31, 2022 Cost Gross Carrying Value Equity securities: Investment funds - debt securities $ 43,155 $ (6,771) $ 36,384 Common stock, preferred stock, and stock funds 78,481 (2,122) 76,359 Total - Marketable securities $ 121,636 $ (8,893) $ 112,743 The Company uses the specific identification method to determine the cost basis of a debt security sold and to reclassify amounts from accumulated other comprehensive income for such securities. For the three and nine months ended September 30, 2023, the portion of unrealized losses recognized on equity securities still held as of September 30, 2023 totaled $4.6 million and $0.7 million, respectively, and were included in interest and other income (loss) on the Company's condensed consolidated statements of income and comprehensive income. For the three and nine months ended September 30, 2022, the portion of unrealized losses recognized on equity securities still held as of September 30, 2022 totaled $7.8 million and $30.6 million respectively, and were included in interest and other (loss) income on the Company's condensed consolidated statements of income and comprehensive income. Variable Interest Entities In accordance with accounting standards for consolidation of variable interest entities ("VIEs"), the Company consolidated the Operating Partnership, 18 DownREIT entities (comprising nine communities), and six co-investments as of September 30, 2023 and December 31, 2022. The Company consolidates these entities because it is the primary beneficiary. The Company has no assets or liabilities other than its investment in the Operating Partnership. The consolidated total assets and liabilities related to the above consolidated co-investments and DownREIT entities, net of intercompany eliminations, were approximately $954.4 million and $327.6 million, respectively, as of September 30, 2023 and $939.4 million and $324.3 million, respectively, as of December 31, 2022. Noncontrolling interests in these entities was $121.1 million and $121.5 million as of September 30, 2023 and December 31, 2022, respectively. The Company's financial risk in each VIE is limited to its equity investment in the VIE. As of September 30, 2023 and December 31, 2022, the Company did not have any VIEs of which it was not the primary beneficiary. Equity-based Compensation The cost of share- and unit-based compensation awards is measured at the grant date based on the estimated fair value of the awards. The estimated fair value of stock options and restricted stock granted by the Company are being amortized over the vesting period. The estimated grant date fair values of the long term incentive plan units (discussed in Note 14, "Equity Based Compensation Plans," in the Company’s annual report on Form 10-K for the year ended December 31, 2022) are being amortized over the expected service periods. Fair Value of Financial Instruments Management believes that the carrying amounts of the outstanding balances under its lines of credit, and notes and other receivables approximate fair value as of September 30, 2023 and December 31, 2022, because interest rates, yields, and other terms for these instruments are consistent with interest rates, yields, and other terms currently available for similar instruments. Management has estimated that the fair value of the Company’s fixed rate debt with a carrying value of $5.7 billion as of both September 30, 2023 and December 31, 2022, was approximately $5.1 billion and $5.2 billion, respectively. Management has estimated that the fair value of the Company’s $520.1 million and $274.2 million of variable rate debt at September 30, 2023 and December 31, 2022, respectively, was approximately $519.2 million and $273.2 million, respectively, based on the terms of existing mortgage notes payable, unsecured debt, and variable rate demand notes compared to those available in the marketplace. Management believes that the carrying amounts of cash and cash equivalents, restricted cash, accounts payable and accrued liabilities, construction payables, other liabilities, and dividends payable approximate fair value as of September 30, 2023 and December 31, 2022 due to the short-term maturity of these instruments. Marketable securities are carried at fair value as of September 30, 2023 and December 31, 2022. Capitalization of Costs The Company’s capitalized internal costs related to development and redevelopment projects were comprised primarily of interest and employee compensation and totaled $5.0 million and $4.5 million during the three months ended September 30, 2023 and 2022, respectively, and $14.4 million and $15.7 million, for the nine months ended September 30, 2023 and 2022, respectively. The Company capitalizes leasing commissions associated with the lease-up of development communities and amortizes the costs over the life of the leases. The amounts capitalized for leasing commissions are immaterial for all periods presented. Co-investments The Company owns investments in joint ventures in which it has significant influence, but its ownership interest does not meet the criteria for consolidation in accordance with U.S. GAAP. Therefore, the Company accounts for co-investments using the equity method of accounting. Under the equity method of accounting, the investment is carried at the cost of assets contributed, plus the Company's equity in earnings, less distributions received and the Company's share of losses. The significant accounting policies of the Company’s co-investment entities are consistent with those of the Company in all material respects. Upon the acquisition of a controlling interest of a co-investment, the co-investment entity is consolidated and a gain or loss is recognized upon the remeasurement of co-investments in the consolidated statement of income equal to the amount by which the fair value of the Company's previously owned co-investment interest exceeds its carrying value. A majority of the co-investments, excluding most preferred equity investments, compensate the Company for its asset management services and some of these investments may provide promote income if certain financial return benchmarks are achieved. Asset management fees are recognized when earned, and promote fees are recognized when the earnings events have occurred and the amount is determinable and collectible. Any promote fees are reflected in equity income from co-investments. Changes in Accumulated Other Comprehensive Income, Net by Component Essex Property Trust, Inc. ($ in thousands): Change in fair Balance at December 31, 2022 $ 46,466 Other comprehensive income before reclassification 8,877 Amounts reclassified from accumulated other comprehensive income 15 Other comprehensive income 8,892 Balance at September 30, 2023 $ 55,358 Essex Portfolio, L.P. ($ in thousands): Change in fair Balance at December 31, 2022 $ 52,010 Other comprehensive income before reclassification 9,190 Amounts reclassified from accumulated other comprehensive income 15 Other comprehensive income 9,205 Balance at September 30, 2023 $ 61,215 Amounts reclassified from accumulated other comprehensive income in connection with derivatives are recorded in interest expense on the condensed consolidated statements of income and comprehensive income. Redeemable Noncontrolling Interest The carrying value of redeemable noncontrolling interests in the accompanying condensed consolidated balance sheets was $30.0 million and $27.2 million as of September 30, 2023 and December 31, 2022, respectively. The limited partners may redeem their noncontrolling interests for cash in certain circumstances. The changes in the redemption value of redeemable noncontrolling interests for the nine months ended September 30, 2023 is as follows ($ in thousands): Balance at December 31, 2022 $ 27,150 Reclassification due to change in redemption value and other 2,810 Balance at September 30, 2023 $ 29,960 Cash, Cash Equivalents and Restricted Cash Highly liquid investments generally with original maturities of three months or less when purchased are classified as cash equivalents. Restricted cash balances relate primarily to reserve requirements for capital replacement at certain communities in connection with the Company’s mortgage debt. The following table provides a reconciliation of cash, cash equivalents, and restricted cash reported within the condensed consolidated balance sheets that sum to the total of the same such amounts shown in the condensed consolidated statements of cash flows ($ in thousands): September 30, 2023 December 31, 2022 September 30, 2022 December 31, 2021 Cash and cash equivalents - unrestricted $ 391,994 $ 33,295 $ 42,711 $ 48,420 Cash and cash equivalents - restricted 8,503 9,386 10,858 10,218 Total unrestricted and restricted cash and cash equivalents shown in the condensed consolidated statement of cash flows $ 400,497 $ 42,681 $ 53,569 $ 58,638 Accounting Estimates The preparation of condensed consolidated financial statements, in accordance with U.S. GAAP, requires the Company to make estimates and judgments that affect the reported amounts of assets, liabilities, revenues and expenses, and related disclosures of contingent assets and liabilities. On an on-going basis, the Company evaluates its estimates, including those related to acquiring, developing and assessing the carrying values of its real estate portfolio, its investments in and advances to joint ventures and affiliates, its notes receivables, and its qualification as a real estate investment trust ("REIT"). The Company bases its estimates on historical experience, current market conditions, and on various other assumptions that are believed to be reasonable under the circumstances. Actual results may vary from those estimates and those estimates could be different under different assumptions or conditions. |
Significant Transactions During
Significant Transactions During the Nine Months Ended September 30, 2023 and Subsequent Events | 9 Months Ended |
Sep. 30, 2023 | |
Business Combination and Asset Acquisition [Abstract] | |
Significant Transactions During the Nine Months Ended September 30, 2023 and Subsequent Events | Significant Transactions During the Nine Months Ended September 30, 2023 and Subsequent Events Significant Transactions Acquisitions In April 2023, the Company acquired Hacienda at Camarillo Oaks, a 73-unit apartment home community located in Camarillo, CA, for a total contract price of $23.1 million. Dispositions In March 2023, the Company sold CBC and The Sweeps, a non-core apartment home community with 239 apartment homes, located in Goleta, CA, for a total contract price of $91.7 million. The Company recognized a $54.5 million gain on sale. Preferred Equity Investments In September 2023, the Company originated a preferred equity investment totaling $12.3 million in a joint venture that owns one multifamily community located in Southern California. The investment has an initial preferred return of 13.5% and is scheduled to mature in September 2028. In June 2023, the Company received cash of $14.7 million, including an early redemption fee of $0.3 million, for the full redemption of a preferred equity investment in a joint venture that holds property located in Southern California. In April 2023, the Company received cash of $11.2 million for the partial redemption of a preferred equity investment, whose sponsors include a related party, in a joint venture that holds property located in Northern California. See Note 6, Related Party Transactions, for additional details. Common Stock During the nine months ended September 30, 2023, the Company repurchased and retired 437,026 shares of the Company's common stock through the Company's stock repurchase plan, totaling $95.7 million, including commissions, at an average price per share of $218.88. As a result, as of September 30, 2023, the Company had $302.7 million of purchase authority remaining under the Company's $500.0 million stock repurchase plan. Secured Debt |
Revenues
Revenues | 9 Months Ended |
Sep. 30, 2023 | |
Revenue from Contract with Customer [Abstract] | |
Revenues | Revenues Disaggregated Revenue The following table presents the Company’s revenues disaggregated by revenue source ($ in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 Rental income $ 410,438 $ 401,467 $ 1,222,859 $ 1,166,670 Other property 5,960 5,395 16,460 16,648 Management and other fees from affiliates 2,785 2,886 8,328 8,313 Total revenues $ 419,183 $ 409,748 $ 1,247,647 $ 1,191,631 The following table presents the Company’s rental and other property revenues disaggregated by geographic operating segment ($ in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 Southern California $ 172,139 $ 164,954 $ 508,873 $ 479,102 Northern California 168,224 163,157 498,263 476,415 Seattle Metro 70,631 69,054 210,885 200,964 Other real estate assets (1) 5,404 9,697 21,298 26,837 Total rental and other property revenues $ 416,398 $ 406,862 $ 1,239,319 $ 1,183,318 (1) Other real estate assets consist of revenues generated from retail space, commercial properties, held for sale properties, disposition properties and straight-line rent adjustments for concessions. Executive management does not evaluate such operating performance geographically. The following table presents the Company’s rental and other property revenues disaggregated by current property category status ($ in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 Same-property (1) $ 398,460 $ 386,200 $ 1,181,559 $ 1,126,489 Acquisitions (2) 1,528 675 3,881 675 Development (3) 5,808 5,410 17,018 15,008 Redevelopment 1,564 1,422 4,696 4,348 Non-residential/other, net (4) 10,432 14,783 33,658 44,403 Straight line rent concession (5) (1,394) (1,628) (1,493) (7,605) Total rental and other property revenues $ 416,398 $ 406,862 $ 1,239,319 $ 1,183,318 (1) Same-property includes properties that have comparable stabilized results as of January 1, 2022 and are consolidated by the Company for the three and nine months ended September 30, 2023 and 2022. A community is considered to have reached stabilized operations once it achieves an initial occupancy of 90%. (2) Acquisitions include properties acquired which did not have comparable stabilized results as of January 1, 2022. (3) Development includes properties developed which did not have stabilized results as of January 1, 2022. (4) Non-residential/other, net consists of revenues generated from retail space, commercial properties, held for sale properties, disposition properties, student housing, 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. (5) 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. Deferred Revenues and Remaining Performance Obligations When cash payments are received or due in advance of the Company’s performance of contracts with customers, deferred revenue is recorded. The total deferred revenue balance related to such contracts was $1.2 million and $1.7 million as of September 30, 2023 and December 31, 2022, respectively, and was included in accounts payable and accrued liabilities within the accompanying condensed consolidated balance sheets. The amount of revenue recognized for the nine months ended September 30, 2023 that was included in the December 31, 2022 deferred revenue balance was $0.5 million, which was included in rental and other property revenue within the condensed consolidated statements of income and comprehensive income. A performance obligation is a promise in a contract to transfer a distinct good or service to the customer, and is the unit of account in the revenue recognition accounting standard. As of September 30, 2023, the Company had $1.2 million of remaining performance obligations. The Company expects to recognize approximately 15% of these remaining performance obligations in 2023, an additional 68% through 2025, and the remaining balance thereafter. |
Co-investments
Co-investments | 9 Months Ended |
Sep. 30, 2023 | |
Investments in and Advance to Affiliates, Subsidiaries, Associates, and Joint Ventures [Abstract] | |
Co-investments | Co-investments The Company has joint ventures and preferred equity investments in co-investments which own, operate, and develop apartment communities and are accounted for under the equity method. As of September 30, 2023, the Company had invested in six technology co-investments and the co-investment balance of these investments was $39.8 million, and the aggregate commitment was $86.0 million. As of December 31, 2022, the Company had six technology co-investments and the co-investment balance of these investments was $39.4 million and the aggregate commitment was $87.0 million. The carrying values of the Company's co-investments as of September 30, 2023 and December 31, 2022 are as follows ($ in thousands, except parenthetical amounts): Weighted Average Company Ownership Percentage (1) September 30, 2023 December 31, 2022 Ownership interest in: Wesco I, Wesco III, Wesco IV, Wesco V, and Wesco VI (2) 54 % $ 164,756 $ 178,552 BEXAEW, BEX II, BEX IV, and 500 Folsom 50 % 228,926 238,537 Other (3) 52 % 67,653 74,742 Total operating and other co-investments, net 461,335 491,831 Total development co-investments 51 % 14,612 12,994 Total preferred interest co-investments (includes related party investments of $81.5 million and $87.1 million as of September 30, 2023 and December 31, 2022, respectively. See Note 6 - Related Party Transactions for further discussion) 606,882 580,134 Total co-investments, net $ 1,082,829 $ 1,084,959 (1) Weighted average Company ownership percentages are as of September 30, 2023. (2) As of September 30, 2023 and December 31, 2022, the Company's investments in Wesco I, Wesco III, and Wesco IV were classified as a liability of $47.9 million and $41.7 million, respectively, due to distributions in excess of the Company's investment. (3) As of September 30, 2023 and December 31, 2022, the Company's investments in Expo and Century Towers were classified as a liability of $2.8 million and $0.8 million, respectively, due to distributions received in excess of the Company's investment. The weighted average Company ownership percentage excludes the Company's investments in non-core technology co-investments which are carried at fair value. The combined summarized financial information of co-investments is as follows ($ in thousands): September 30, 2023 December 31, 2022 Combined balance sheets: (1) Rental properties and real estate under development $ 5,099,914 $ 4,955,051 Other assets 286,663 294,663 Total assets $ 5,386,577 $ 5,249,714 Debt $ 3,561,368 $ 3,397,113 Other liabilities 330,099 264,872 Equity 1,495,110 1,587,729 Total liabilities and equity $ 5,386,577 $ 5,249,714 Company's share of equity $ 1,082,829 $ 1,084,959 Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 Combined statements of income: (1) Property revenues $ 103,379 $ 94,791 $ 303,926 $ 272,967 Property operating expenses (37,603) (36,950) (116,549) (102,252) Net operating income 65,776 57,841 187,377 170,715 Interest expense (41,802) (27,507) (111,800) (67,588) General and administrative (1,635) (5,028) (13,171) (15,387) Depreciation and amortization (44,704) (42,200) (129,009) (120,388) Net loss $ (22,365) $ (16,894) $ (66,603) $ (32,648) Company's share of net income (2) $ 10,694 $ 10,985 $ 33,802 $ 23,756 (1) Includes preferred equity investments held by the Company and excludes investments in technology co-investments. (2) Includes the Company's share of equity income from joint ventures and preferred equity investments, gain on sales of co-investments, co-investment promote income and income from early redemption of preferred equity investments. Includes related party income of $2.0 million and $1.8 million for the three months ended September 30, 2023 and 2022, respectively, and $5.9 million and $5.4 million for the nine months ended September 30, 2023 and 2022, respectively. |
Notes and Other Receivables
Notes and Other Receivables | 9 Months Ended |
Sep. 30, 2023 | |
Receivables [Abstract] | |
Notes and Other Receivables | Notes and Other Receivables Notes and other receivables consist of the following as of September 30, 2023 and December 31, 2022 ($ in thousands): September 30, 2023 December 31, 2022 Note receivable, secured, bearing interest at 11.50%, due November 2024 (Originated November 2020) $ 36,573 $ 33,477 Note receivable, secured, bearing interest at 11.00%, due October 2025 (Originated October 2021) 43,569 21,452 Note receivable, secured, bearing interest at 12.00%, due August 2024 (Originated August 2022) 11,377 10,350 Note receivable, secured, bearing interest at 11.25%, due October 2027 (Originated October 2022) 33,933 — Notes and other receivables from affiliates (1) 7,218 6,975 Straight line rent receivables (2) 10,486 12,164 Other receivables 22,089 18,961 Allowance for credit losses (642) (334) Total notes and other receivables $ 164,603 $ 103,045 (1) These amounts consist of short-term loans outstanding and due from various joint ventures as of September 30, 2023 and December 31, 2022, respectively. See Note 6, Related Party Transactions, for additional details. (2) These amounts are receivables from lease concessions recorded on a straight-line basis for the Company's operating properties. The following table presents the activity in the allowance for credit losses for notes receivable, secured ($ in thousands): Notes Receivable, Secured Balance at December 31, 2022 $ 334 Provision for credit losses 308 Balance at September 30, 2023 $ 642 No loans were placed on nonaccrual status or charged off during the nine months ended September 30, 2023 or 2022. |
Related Party Transactions
Related Party Transactions | 9 Months Ended |
Sep. 30, 2023 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Related Party Transactions The Company charges certain fees relating to its co-investments for asset management, property management, development and redevelopment services. These fees from affiliates totaled $3.2 million and $3.7 million during the three months ended September 30, 2023 and 2022, respectively, and $9.6 million and $10.3 million during the nine months ended September 30, 2023 and 2022, respectively. All of these fees are net of intercompany amounts eliminated by the Company. The Company netted development and redevelopment fees of approximately $0.5 million and $0.9 million against general and administrative expenses for the three months ended September 30, 2023 and 2022, respectively, and $1.5 million and $2.0 million for the nine months ended September 30, 2023 and 2022, respectively. The Company’s Chairman and founder, Mr. George M. Marcus, is the Chairman of the Marcus & Millichap Company ("MMC"), which is a parent company of a diversified group of real estate service, investment, and development firms. Mr. Marcus is also the Chairman of Marcus & Millichap, Inc. ("MMI"), and Mr. Marcus owns a controlling interest in MMI, a national brokerage firm listed on the New York Stock Exchange. For the three and nine months ended September 30, 2023 and 2022, the Company did not pay brokerage commissions related to real estate transactions to MMC and its affiliates. In August 2022, the Company funded an $11.2 million preferred equity investment in an entity whose sponsor includes an affiliate of MMC. The entity owns three multifamily communities located in Azusa, CA. The investment initially accrues interest based on a 9.5% preferred return and is scheduled to mature in August 2027. In February 2022, the Company provided a $32.8 million related party bridge loan to BEX II in connection with the payoff of a debt related to one of its properties located in Southern California. The note receivable was scheduled to mature in March 2022, but was subsequently paid off in April 2022. In January 2022, the Company provided a $100.7 million related party bridge loan to Wesco VI in connection with the acquisition of Vela. The note receivable accrued interest at 2.64% and was scheduled to mature in February 2022, but was paid off in January 2022. Additionally, the Company received cash of $121.3 million in January 2022 for the payoff of the remaining related party bridge loans to Wesco VI as detailed below. In November 2021, the Company provided a $48.4 million related party bridge loan in connection with the purchase of an interest in a single asset entity owning an apartment home community in Vista, CA. The note receivable accrued interest at 2.36% and was scheduled to mature in February 2022, but was paid off in January 2022. In November 2021, the Company provided a $61.9 million related party bridge loan to Wesco VI in connection with the acquisition of The Rexford. The note receivable accrued interest at 2.36% and was scheduled to mature in February 2022, but was paid off in January 2022. In October 2021, the Company provided a $30.3 million related party bridge loan to Wesco VI in connection with the acquisition of Monterra in Mill Creek. The note receivable accrued interest at 2.30% and was scheduled to mature in April 2022, but was paid off in January 2022. In September 2021, the Company provided a $29.2 million related party bridge loan to Wesco VI in connection with the acquisition of Martha Lake Apartments. The note receivable accrued interest at 2.15% and was scheduled to mature in December 2021. In December 2021, the maturity date of the note receivable was extended to March 2022, and in January 2022, the note receivable was paid off. In June 2019, the Company acquired Brio, a 300-unit apartment home community located in Walnut Creek, CA. The Company issued DownREIT units to an affiliate of MMC, based on a contract price of $164.9 million. The property was encumbered by $98.7 million of mortgage debt which was assumed by the Company at the time of acquisition. As a result of this transaction, the Company consolidated the property based on a VIE analysis performed by the Company. In February 2019, the Company funded a $24.5 million preferred equity investment in an entity whose sponsor is an affiliate of MMC, which owns a multifamily development community located in Mountain View, CA. The investment initially accrued interest based on an 11.0% preferred return which was reduced to 9.0% upon completion and lease-up of the project. The investment is scheduled to mature in February 2024. In October 2018, the Company funded an $18.6 million preferred equity investment in an entity whose sponsor is an affiliate of MMC. The entity wholly owns a 268-unit apartment home community development located in Burlingame, CA. The investment initially accrued interest based on a 12.0% preferred return which was reduced to 9.0% upon completion and lease-up of the project. In April 2023, the investment's maturity date was extended from April 2024 to May 2026 with the investment accruing interest based on a 11.0% preferred return. In April 2023, the Company received cash of $11.2 million for the partial redemption of this preferred equity investment. In May 2018, the Company made a commitment to fund a $26.5 million preferred equity investment in an entity whose sponsors include an affiliate of MMC. The entity wholly owns a 400-unit apartment home community located in Ventura, CA. The investment accrued interest based on a 10.25% initial preferred return. The investment was scheduled to mature in May 2023. In November 2021, the Company received cash of $18.3 million for the partial redemption of this preferred equity investment, and the maturity of the remaining commitment was extended to December 2028. As of September 30, 2023, the Company had a remaining commitment of $13.0 million and continues to accrue interest on a 9.0% preferred return. The remaining committed amount is expected to be funded if and when requested by the sponsors. In March 2017, the Company converted its existing $15.3 million preferred equity investment in Sage at Cupertino, a 230-unit apartment home community located in San Jose, CA, into a 40.5% common equity ownership interest in the property. The Company issued DownREIT units to the other members, including an MMC affiliate, based on an estimated property valuation of $90.0 million. At the time of the conversion, the property was encumbered by $52.0 million of mortgage debt. As a result of this transaction, the Company consolidates the property based on a consolidation analysis performed by the Company. As described in Note 5, Notes and Other Receivables, the Company has provided short-term loans to affiliates. As of September 30, 2023 and December 31, 2022, $7.2 million and $7.0 million, respectively, of short-term loans remained outstanding due from joint venture affiliates and is classified within notes and other receivables in the accompanying condensed consolidated balance sheets. |
Debt
Debt | 9 Months Ended |
Sep. 30, 2023 | |
Debt Disclosure [Abstract] | |
Debt | Debt Essex does not have indebtedness as debt is incurred by the Operating Partnership. Essex guarantees the Operating Partnership’s unsecured debt including the revolving credit facilities for the full term of the facilities. Debt consists of the following ($ in thousands): September 30, 2023 December 31, 2022 Weighted Average Term loan - variable rate, net (1) $ 298,456 $ (1,611) 4.1 Bonds public offering - fixed rate, net 5,018,473 5,313,779 7.4 Unsecured debt, net (2) 5,316,929 5,312,168 Lines of credit (3) — 52,073 Mortgage notes payable, net (4) 888,010 593,943 8.1 Total debt, net $ 6,204,939 $ 5,958,184 Weighted average interest rate on fixed rate unsecured bonds private placement and bonds public offering 3.3 % 3.3 % Weighted average interest rate on variable rate term loan (1) 4.2 % — % Weighted average interest rate on lines of credit 6.2 % 4.4 % Weighted average interest rate on mortgage notes payable 4.3 % 3.5 % (1) In October 2022, the Operating Partnership obtained a $300.0 million unsecured term loan priced at Adjusted SOFR plus 0.85% and matures in October 2024 with three 12-month extension options, exercisable at the Company's option. This loan has been swapped to an all-in fixed rate of 4.2% and the swap has a termination date of October 2026. In April 2023, the Company drew down the $300.0 million unsecured term loan and in May 2023 used the proceeds to repay the Company's $300.0 million unsecured notes due in May 2023. The unsecured term loan includes unamortized debt issuance costs of $1.5 million and $1.6 million as of September 30, 2023 and December 31, 2022, respectively. (2) Unsecured debt, net, consists of fixed rate public bond offerings and variable rate term loan which includes unamortized discount, net of premiums, of $6.6 million and $7.9 million and unamortized debt issuance costs of $26.5 million and $29.9 million, as of September 30, 2023 and December 31, 2022, respectively. (3) Lines of credit, related to the Company's two lines of unsecured credit aggregating $1.24 billion as of September 30, 2023, excludes unamortized debt issuance costs of $4.1 million and $5.1 million as of September 30, 2023 and December 31, 2022, respectively. These debt issuance costs are included in prepaid expenses and other assets on the condensed consolidated balance sheets. As of September 30, 2023, the Company’s $1.2 billion credit facility had an interest rate at the Adjusted Secured Overnight Financing Rate ("Adjusted SOFR") plus 0.75%, which is based on a tiered rate structure tied to the Company’s credit ratings, adjusted for the Company's sustainability metric grid, and a scheduled maturity date of January 2027 with two six-month extensions, exercisable at the Company’s option. As of September 30, 2023, the Company’s $35.0 million working capital unsecured line of credit had an interest rate of Adjusted SOFR plus 0.75%, which is based on a tiered rate structure tied to the Company’s credit ratings, adjusted for the Company's sustainability metric grid, and a scheduled maturity date of July 2024. (4) In July 2023, the Company closed $298.0 million in 10-year secured loans priced at a 5.08% fixed interest rate. Includes total unamortized premium, net of discounts of $0.7 million and $1.2 million, reduced by unamortized debt issuance costs of $3.2 million and $2.0 million, as of September 30, 2023 and December 31, 2022, respectively. The aggregate scheduled principal payments of the Company’s outstanding debt, excluding lines of credit, as of September 30, 2023 are as follows ($ in thousands): 2023 $ 751 2024 (1) 403,109 2025 633,054 2026 549,405 2027 803,955 Thereafter 3,850,269 Total $ 6,240,543 |
Segment Information
Segment Information | 9 Months Ended |
Sep. 30, 2023 | |
Segment Reporting [Abstract] | |
Segment Information | Segment Information The Company's segment disclosures present the measure used by the chief operating decision makers for purposes of assessing each segment's performance. The Company's chief operating decision makers are comprised of several members of its executive management team who use net operating income ("NOI") to assess the performance of the business for the Company's reportable operating segments. NOI represents total property revenues less direct property operating expenses. The executive management team generally evaluates the Company's operating performance geographically. The Company defines its reportable operating segments as the three geographical regions in which its communities are located: Southern California, Northern California, and Seattle Metro. Excluded from segment revenues and NOI are management and other fees from affiliates and interest and other income. Non-segment revenues and NOI included in the following schedule also consist of revenues generated from commercial properties and properties that have been sold. Other non-segment assets include items such as real estate under development, co-investments, real estate held for sale, cash and cash equivalents, marketable securities, notes and other receivables, and prepaid expenses and other assets. The revenues and NOI for each of the reportable operating segments are summarized as follows for the three and nine months ended September 30, 2023 and 2022 ($ in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 Revenues: Southern California $ 172,139 $ 164,954 $ 508,873 $ 479,102 Northern California 168,224 163,157 498,263 476,415 Seattle Metro 70,631 69,054 210,885 200,964 Other real estate assets 5,404 9,697 21,298 26,837 Total property revenues $ 416,398 $ 406,862 $ 1,239,319 $ 1,183,318 Net operating income: Southern California $ 121,110 $ 117,014 $ 359,975 $ 339,992 Northern California 116,958 113,401 347,594 331,636 Seattle Metro 49,611 48,816 149,894 141,380 Other real estate assets 4,823 7,588 18,324 20,647 Total net operating income 292,502 286,819 875,787 833,655 Management and other fees from affiliates 2,785 2,886 8,328 8,313 Corporate-level property management expenses (11,504) (10,184) (34,387) (30,532) Depreciation and amortization (137,357) (135,511) (410,422) (403,561) General and administrative (14,611) (15,172) (43,735) (40,541) Expensed acquisition and investment related costs (31) (230) (375) (248) Casualty loss — — (433) — Gain on sale of real estate and land — — 59,238 — Interest expense (54,161) (51,645) (157,806) (152,499) Total return swap income 690 1,882 2,544 6,709 Interest and other income (loss) 4,406 (6,796) 29,055 (31,571) Equity income from co-investments 10,694 10,985 33,802 23,756 Tax (expense) benefit on unconsolidated co-investments (404) (1,755) (1,237) 7,863 Loss on early retirement of debt, net — (2) — (2) Gain on remeasurement of co-investment — 17,423 — 17,423 Net income $ 93,009 $ 98,700 $ 360,359 $ 238,765 Total assets for each of the reportable operating segments are summarized as follows as of September 30, 2023 and December 31, 2022 ($ in thousands): September 30, 2023 December 31, 2022 Assets: Southern California $ 3,824,670 $ 3,892,003 Northern California 5,282,972 5,414,467 Seattle Metro 1,345,028 1,374,379 Other real estate assets 92,716 133,245 Net reportable operating segment - real estate assets 10,545,386 10,814,094 Real estate under development 23,067 24,857 Co-investments 1,133,515 1,127,491 Cash and cash equivalents, including restricted cash 400,497 42,681 Marketable securities 90,186 112,743 Notes and other receivables 164,603 103,045 Operating lease right-of-use assets 64,636 67,239 Prepaid expenses and other assets 75,757 80,755 Total assets $ 12,497,647 $ 12,372,905 |
Net Income Per Common Share and
Net Income Per Common Share and Net Income Per Common Unit | 9 Months Ended |
Sep. 30, 2023 | |
Earnings Per Share [Abstract] | |
Net Income Per Common Share and Net Income Per Common Unit | Net Income Per Common Share and Net Income Per Common Unit ($ in thousands, except share and unit data): Essex Property Trust, Inc. Three Months Ended September 30, 2023 Three Months Ended September 30, 2022 Income Weighted- Per Income Weighted- Per Basic: Net income available to common stockholders $ 87,282 64,184,180 $ 1.36 $ 92,842 65,059,678 $ 1.43 Effect of Dilutive Securities: Stock options — 1,840 — 8,112 Diluted: Net income available to common stockholders $ 87,282 64,186,020 $ 1.36 $ 92,842 65,067,790 $ 1.43 Nine Months Ended September 30, 2023 Nine Months Ended September 30, 2022 Income Weighted- Per Income Weighted- Per Basic: Net income available to common unitholders $ 340,434 64,274,085 $ 5.30 $ 223,150 65,198,532 $ 3.42 Effect of Dilutive Securities: Stock options — 1,194 — 27,235 Diluted: Net income available to common unitholders $ 340,434 64,275,279 $ 5.30 $ 223,150 65,225,767 $ 3.42 The table above excludes from the calculations of diluted earnings per share weighted average convertible OP Units of 2,259,236 and 2,273,399, which include vested 2014 Long-Term Incentive Plan Units and 2015 Long-Term Incentive Plan Units, for the three months ended September 30, 2023 and 2022, respectively, and 2,261,832 and 2,277,636 for the nine months ended September 30, 2023 and 2022, respectively, because they were anti-dilutive. The related income allocated to these convertible OP Units aggregated $3.1 million and $3.2 million for the three months ended September 30, 2023 and 2022, respectively, and $12.0 million and $7.8 million for the nine months ended September 30, 2023 and 2022, respectively. Stock options of 461,873 and 271,018 for the three months ended September 30, 2023 and 2022, respectively, and 501,187 and 230,326 for the nine months ended September 30, 2023 and 2022, respectively, were excluded from the calculation of diluted earnings per share because the assumed proceeds per share of such options plus the average unearned compensation were greater than the average market price of the common stock for the periods ended and, therefore, were anti-dilutive. Essex Portfolio, L.P. Three Months Ended September 30, 2023 Three Months Ended September 30, 2022 Income Weighted- Per Income Weighted- Per Basic: Net income available to common unitholders $ 90,354 66,443,416 $ 1.36 $ 96,089 67,333,077 $ 1.43 Effect of Dilutive Securities: Stock options — 1,840 — 8,112 Diluted: Net income available to common unitholders $ 90,354 66,445,256 $ 1.36 $ 96,089 67,341,189 $ 1.43 Nine Months Ended September 30, 2023 Nine Months Ended September 30, 2022 Income Weighted- Per Income Weighted- Per Basic: Net income available to common unitholders $ 352,416 66,535,917 $ 5.30 $ 230,950 67,476,168 $ 3.42 Effect of Dilutive Securities: Stock options — 1,115 — 27,235 Diluted: Net income available to common unitholders $ 352,416 66,537,111 $ 5.30 $ 230,950 67,503,403 $ 3.42 |
Derivative Instruments and Hedg
Derivative Instruments and Hedging Activities | 9 Months Ended |
Sep. 30, 2023 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Instruments and Hedging Activities | Derivative Instruments and Hedging Activities As of September 30, 2023, the Company had an interest rate swap contract with an aggregate notional amount of $300.0 million that effectively fixed the interest rate on the $300.0 million unsecured term loan at 4.2%. This derivative qualifies for hedge accounting. As of September 30, 2023 and December 31, 2022, the swap contracts were presented in the consolidated balance sheets as an asset of $11.2 million and $5.6 million, respectively, and were included in prepaid expenses and other assets on the consolidated balance sheets. As of September 30, 2023 and December 31, 2022, the Company had no interest rate caps. The Company has four total return swap contracts, with an aggregate notional amount of $223.0 million, that effectively convert $223.0 million of mortgage notes payable to a floating interest rate based on the Securities Industry and Financial Markets Association Municipal Swap Index ("SIFMA") plus a spread. The total return swaps provide fair market value protection on the mortgage notes payable to the counterparties during the initial period of the total return swap until the Company's option to call the mortgage notes at par can be exercised. The Company can currently call all four of its total return swaps, with $223.0 million of the outstanding debt at par. These derivatives do not qualify for hedge accounting and had a carrying and fair value of zero at both September 30, 2023 and December 31, 2022. These total return swaps are scheduled to mature between December 2024 and November 2033. The realized gains of $0.7 million and $1.9 million for the three months ended September 30, 2023 and 2022, respectively, and $2.5 million and $6.7 million for the nine months ended September 30, 2023 and 2022, respectively, were reported in the condensed consolidated statements of income and comprehensive income as total return swap income. |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and ContingenciesThe Company is subject to various lawsuits in the normal course of its business operations. Such lawsuits have not had a material adverse effect on the Company's financial condition, results of operations or cash flows. While no assurances can be given, the Company does not believe there is any pending or threatened litigation against the Company that, individually or in the aggregate, would reasonably be expected to have a material adverse effect on the Company.In late 2022 and early 2023, a number of purported class actions were filed against RealPage, Inc., a seller of revenue management software, and various lessors of multifamily housing which utilize this software, including the Company. The complaints allege collusion among defendants to artificially increase rents of multifamily residential real estate above competitive levels. The Company intends to vigorously defend against these lawsuits. Given their early stage, the Company is unable to predict the outcome or estimate the amount of loss, if any, that may result from such matters. The Company is also subject to various other legal and/or regulatory proceedings arising in the normal course of its business operations. The Company believes that, with respect to such matters that it is currently a party to, the ultimate disposition of any such matter will not result in a material adverse effect on the Company’s financial condition, results of operations or cash flows. To the extent that such a matter arises or is identified in the future that has other than a remote risk of having a material impact on the condensed consolidated financial statements, the Company will disclose the estimated range of possible outcomes associated with it, and, if an outcome is probable, accrue an appropriate liability for that matter. The Company will consider whether any such matter results in an impairment of value on the affected property and, if so, impairment will be recognized. |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended |
Sep. 30, 2023 | |
Trading Arrangements, by Individual | |
Rule 10b5-1 Arrangement Adopted | false |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |
Organization and Basis of Pre_2
Organization and Basis of Presentation (Policies) | 9 Months Ended |
Sep. 30, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | The accompanying unaudited condensed consolidated financial statements present the accounts of Essex Property Trust, Inc. ("Essex" or the "Company"), which include the accounts of the Company and Essex Portfolio, L.P. and its subsidiaries (the "Operating Partnership," which holds the operating assets of the Company), prepared in accordance with U.S. generally accepted accounting principles ("U.S. GAAP") for interim financial information and in accordance with the instructions to Form 10-Q. In the opinion of management, all adjustments necessary for a fair presentation of the financial position, results of operations, and cash flows for the periods presented have been included and are normal and recurring in nature. These unaudited condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements included in the Company's annual report on Form 10-K for the year ended December 31, 2022. |
Consolidation | All significant intercompany accounts and transactions have been eliminated in the unaudited condensed consolidated financial statements. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements In August 2023, the Financial Accounting Standards Board (the "FASB") issued Accounting Standards Update ("ASU") No. 2023-05 "Business Combinations—Joint Venture Formations (Subtopic 805-60)" under which an entity that qualifies as a joint venture is required to apply a new basis of accounting upon the formation of the joint venture. The amendments in ASU 2023-05 require that a joint venture must initially measure its assets and liabilities at fair value on the formation date. ASU 2023-05 is effective for all joint ventures that are formed on or after January 1, 2025 and early adoption is permitted. The Company does not expect the adoption to have a material impact on its consolidated results of operations and financial position. |
Revenues and Gains on Sale of Real Estate | Revenues and Gains on Sale of Real Estate Revenues from tenants renting or leasing apartment homes are recorded when due from tenants and are recognized monthly as they are earned which generally approximates a straight-line basis, else, adjustments are made to conform to a straight-line basis. Apartment homes are rented under short-term leases (generally, lease terms of 9 to 12 months). Revenues from tenants leasing commercial space are recorded on a straight-line basis over the life of the respective lease. See Note 3, Revenues, for additional information regarding such revenues. The Company also generates other property-related revenue associated with the leasing of apartment homes, including storage income, pet rent, and other miscellaneous revenue. Similar to rental income, such revenues are recorded when due from tenants and recognized monthly as they are earned. Apart from rental and other property-related revenue, revenues from contracts with customers are recognized as control of the promised services is passed to the customer. For customer contracts related to management and other fees from affiliates (which includes asset management and property management), the transaction price and amount of revenue to be recognized is determined each quarter based on the management fee calculated and earned for that month or quarter. The contract will contain a description of the service and the fee percentage for management services. Payments from such services are one month or one quarter in arrears of the service performed. The Company recognizes any gains on sales of real estate when it transfers control of a property and when it is probable that the Company will collect substantially all of the related consideration. |
Marketable Securities | Marketable Securities The Company reports its equity securities at fair value, based on quoted market prices (Level 1 for the common stock and investment funds and Level 2 for the unsecured debt, and as defined by the FASB standard for fair value measurements). As of September 30, 2023 and December 31, 2022, $0.1 million and $0.2 million of equity securities presented within common stock, preferred stock, and stock funds in the tables below represent investments measured at fair value, using net asset value as a practical expedient, and are not categorized in the fair value hierarchy. Realized and unrealized gains and losses in equity securities and interest income are included in interest and other income on the condensed consolidated statements of income and comprehensive income. |
Variable Interest Entities | Variable Interest Entities In accordance with accounting standards for consolidation of variable interest entities ("VIEs"), the Company consolidated the Operating Partnership, 18 DownREIT entities (comprising nine communities), and six co-investments as of September 30, 2023 and December 31, 2022. The Company consolidates these entities because it is the primary beneficiary. The Company has no assets or liabilities other than its investment in the Operating Partnership. The consolidated total assets and liabilities related to the above consolidated co-investments and DownREIT entities, net of intercompany eliminations, were approximately $954.4 million and $327.6 million, respectively, as of September 30, 2023 and $939.4 million and $324.3 million, respectively, as of December 31, 2022. Noncontrolling interests in these entities was $121.1 million and $121.5 million as of September 30, 2023 and December 31, 2022, respectively. The Company's financial risk in each VIE is limited to its equity investment in the VIE. As of September 30, 2023 and December 31, 2022, the Company did not have any VIEs of which it was not the primary beneficiary. |
Equity-based Compensation | Equity-based Compensation The cost of share- and unit-based compensation awards is measured at the grant date based on the estimated fair value of the awards. The estimated fair value of stock options and restricted stock granted by the Company are being amortized over the vesting period. The estimated grant date fair values of the long term incentive plan units (discussed in Note 14, "Equity Based Compensation Plans," in the Company’s annual report on Form 10-K for the year ended December 31, 2022) are being amortized over the expected service periods. |
Fair Value of Financial Instruments | Fair Value of Financial Instruments Management believes that the carrying amounts of the outstanding balances under its lines of credit, and notes and other receivables approximate fair value as of September 30, 2023 and December 31, 2022, because interest rates, yields, and other terms for these instruments are consistent with interest rates, yields, and other terms currently available for similar instruments. Management has estimated that the fair value of the Company’s fixed rate debt with a carrying value of $5.7 billion as of both September 30, 2023 and December 31, 2022, was approximately $5.1 billion and $5.2 billion, respectively. Management has estimated that the fair value of the Company’s $520.1 million and $274.2 million of variable rate debt at September 30, 2023 and December 31, 2022, respectively, was approximately $519.2 million and $273.2 million, respectively, based on the terms of existing mortgage notes payable, unsecured debt, and variable rate demand notes compared to those available in the marketplace. Management believes that the carrying amounts of cash and cash equivalents, restricted cash, accounts payable and accrued liabilities, construction payables, other liabilities, and dividends payable approximate fair value as of September 30, 2023 and December 31, 2022 due to the short-term maturity of these instruments. Marketable securities are carried at fair value as of September 30, 2023 and December 31, 2022. |
Capitalization of Costs | Capitalization of Costs The Company’s capitalized internal costs related to development and redevelopment projects were comprised primarily of interest and employee compensation and totaled $5.0 million and $4.5 million during the three months ended September 30, 2023 and 2022, respectively, and $14.4 million and $15.7 million, for the nine months ended September 30, 2023 and 2022, respectively. The Company capitalizes leasing commissions associated with the lease-up of development communities and amortizes the costs over the life of the leases. The amounts capitalized for leasing commissions are immaterial for all periods presented. |
Co-investments | Co-investments The Company owns investments in joint ventures in which it has significant influence, but its ownership interest does not meet the criteria for consolidation in accordance with U.S. GAAP. Therefore, the Company accounts for co-investments using the equity method of accounting. Under the equity method of accounting, the investment is carried at the cost of assets contributed, plus the Company's equity in earnings, less distributions received and the Company's share of losses. The significant accounting policies of the Company’s co-investment entities are consistent with those of the Company in all material respects. Upon the acquisition of a controlling interest of a co-investment, the co-investment entity is consolidated and a gain or loss is recognized upon the remeasurement of co-investments in the consolidated statement of income equal to the amount by which the fair value of the Company's previously owned co-investment interest exceeds its carrying value. A majority of the co-investments, excluding most preferred equity investments, compensate the Company for its asset management services and some of these investments may provide promote income if certain financial return benchmarks are achieved. Asset management fees are recognized when earned, and promote fees are recognized when the earnings events have occurred and the amount is determinable and collectible. Any promote fees are reflected in equity income from co-investments. |
Changes in Accumulated Other Comprehensive Income, Net by Component | Amounts reclassified from accumulated other comprehensive income in connection with derivatives are recorded in interest expense on the condensed consolidated statements of income and comprehensive income. |
Cash, Cash Equivalents and Restricted Cash | Cash, Cash Equivalents and Restricted Cash Highly liquid investments generally with original maturities of three months or less when purchased are classified as cash equivalents. Restricted cash balances relate primarily to reserve requirements for capital replacement at certain communities in connection with the Company’s mortgage debt. |
Accounting Estimates | Accounting Estimates The preparation of condensed consolidated financial statements, in accordance with U.S. GAAP, requires the Company to make estimates and judgments that affect the reported amounts of assets, liabilities, revenues and expenses, and related disclosures of contingent assets and liabilities. On an on-going basis, the Company evaluates its estimates, including those related to acquiring, developing and assessing the carrying values of its real estate portfolio, its investments in and advances to joint ventures and affiliates, its notes receivables, and its qualification as a real estate investment trust ("REIT"). The Company bases its estimates on historical experience, current market conditions, and on various other assumptions that are believed to be reasonable under the circumstances. Actual results may vary from those estimates and those estimates could be different under different assumptions or conditions. |
Organization and Basis of Pre_3
Organization and Basis of Presentation (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedule of Components of Marketable Securities | As of September 30, 2023 and December 31, 2022, marketable securities consisted of the following ($ in thousands): September 30, 2023 Cost Gross Carrying Value Equity securities: Investment funds - debt securities $ 38,886 $ (6,814) $ 32,072 Common stock, preferred stock, and stock funds 51,026 7,088 58,114 Total - Marketable securities $ 89,912 $ 274 $ 90,186 December 31, 2022 Cost Gross Carrying Value Equity securities: Investment funds - debt securities $ 43,155 $ (6,771) $ 36,384 Common stock, preferred stock, and stock funds 78,481 (2,122) 76,359 Total - Marketable securities $ 121,636 $ (8,893) $ 112,743 |
Schedule of Changes in Accumulated Other Comprehensive Income, Net by Component | Changes in Accumulated Other Comprehensive Income, Net by Component Essex Property Trust, Inc. ($ in thousands): Change in fair Balance at December 31, 2022 $ 46,466 Other comprehensive income before reclassification 8,877 Amounts reclassified from accumulated other comprehensive income 15 Other comprehensive income 8,892 Balance at September 30, 2023 $ 55,358 Essex Portfolio, L.P. ($ in thousands): Change in fair Balance at December 31, 2022 $ 52,010 Other comprehensive income before reclassification 9,190 Amounts reclassified from accumulated other comprehensive income 15 Other comprehensive income 9,205 Balance at September 30, 2023 $ 61,215 |
Schedule of Changes to the Redemption Value of Noncontrolling Interests | The changes in the redemption value of redeemable noncontrolling interests for the nine months ended September 30, 2023 is as follows ($ in thousands): Balance at December 31, 2022 $ 27,150 Reclassification due to change in redemption value and other 2,810 Balance at September 30, 2023 $ 29,960 |
Schedule of Cash and Cash Equivalents | The following table provides a reconciliation of cash, cash equivalents, and restricted cash reported within the condensed consolidated balance sheets that sum to the total of the same such amounts shown in the condensed consolidated statements of cash flows ($ in thousands): September 30, 2023 December 31, 2022 September 30, 2022 December 31, 2021 Cash and cash equivalents - unrestricted $ 391,994 $ 33,295 $ 42,711 $ 48,420 Cash and cash equivalents - restricted 8,503 9,386 10,858 10,218 Total unrestricted and restricted cash and cash equivalents shown in the condensed consolidated statement of cash flows $ 400,497 $ 42,681 $ 53,569 $ 58,638 |
Schedule of Restricted Cash and Cash Equivalents | The following table provides a reconciliation of cash, cash equivalents, and restricted cash reported within the condensed consolidated balance sheets that sum to the total of the same such amounts shown in the condensed consolidated statements of cash flows ($ in thousands): September 30, 2023 December 31, 2022 September 30, 2022 December 31, 2021 Cash and cash equivalents - unrestricted $ 391,994 $ 33,295 $ 42,711 $ 48,420 Cash and cash equivalents - restricted 8,503 9,386 10,858 10,218 Total unrestricted and restricted cash and cash equivalents shown in the condensed consolidated statement of cash flows $ 400,497 $ 42,681 $ 53,569 $ 58,638 |
Revenues (Tables)
Revenues (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of Disaggregation of Revenue | The following table presents the Company’s revenues disaggregated by revenue source ($ in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 Rental income $ 410,438 $ 401,467 $ 1,222,859 $ 1,166,670 Other property 5,960 5,395 16,460 16,648 Management and other fees from affiliates 2,785 2,886 8,328 8,313 Total revenues $ 419,183 $ 409,748 $ 1,247,647 $ 1,191,631 The following table presents the Company’s rental and other property revenues disaggregated by geographic operating segment ($ in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 Southern California $ 172,139 $ 164,954 $ 508,873 $ 479,102 Northern California 168,224 163,157 498,263 476,415 Seattle Metro 70,631 69,054 210,885 200,964 Other real estate assets (1) 5,404 9,697 21,298 26,837 Total rental and other property revenues $ 416,398 $ 406,862 $ 1,239,319 $ 1,183,318 (1) Other real estate assets consist of revenues generated from retail space, commercial properties, held for sale properties, disposition properties and straight-line rent adjustments for concessions. Executive management does not evaluate such operating performance geographically. The following table presents the Company’s rental and other property revenues disaggregated by current property category status ($ in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 Same-property (1) $ 398,460 $ 386,200 $ 1,181,559 $ 1,126,489 Acquisitions (2) 1,528 675 3,881 675 Development (3) 5,808 5,410 17,018 15,008 Redevelopment 1,564 1,422 4,696 4,348 Non-residential/other, net (4) 10,432 14,783 33,658 44,403 Straight line rent concession (5) (1,394) (1,628) (1,493) (7,605) Total rental and other property revenues $ 416,398 $ 406,862 $ 1,239,319 $ 1,183,318 (1) Same-property includes properties that have comparable stabilized results as of January 1, 2022 and are consolidated by the Company for the three and nine months ended September 30, 2023 and 2022. A community is considered to have reached stabilized operations once it achieves an initial occupancy of 90%. (2) Acquisitions include properties acquired which did not have comparable stabilized results as of January 1, 2022. (3) Development includes properties developed which did not have stabilized results as of January 1, 2022. (4) Non-residential/other, net consists of revenues generated from retail space, commercial properties, held for sale properties, disposition properties, student housing, 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. (5) 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. |
Co-investments (Tables)
Co-investments (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Investments in and Advance to Affiliates, Subsidiaries, Associates, and Joint Ventures [Abstract] | |
Schedule of Co-Investments | The carrying values of the Company's co-investments as of September 30, 2023 and December 31, 2022 are as follows ($ in thousands, except parenthetical amounts): Weighted Average Company Ownership Percentage (1) September 30, 2023 December 31, 2022 Ownership interest in: Wesco I, Wesco III, Wesco IV, Wesco V, and Wesco VI (2) 54 % $ 164,756 $ 178,552 BEXAEW, BEX II, BEX IV, and 500 Folsom 50 % 228,926 238,537 Other (3) 52 % 67,653 74,742 Total operating and other co-investments, net 461,335 491,831 Total development co-investments 51 % 14,612 12,994 Total preferred interest co-investments (includes related party investments of $81.5 million and $87.1 million as of September 30, 2023 and December 31, 2022, respectively. See Note 6 - Related Party Transactions for further discussion) 606,882 580,134 Total co-investments, net $ 1,082,829 $ 1,084,959 (1) Weighted average Company ownership percentages are as of September 30, 2023. (2) As of September 30, 2023 and December 31, 2022, the Company's investments in Wesco I, Wesco III, and Wesco IV were classified as a liability of $47.9 million and $41.7 million, respectively, due to distributions in excess of the Company's investment. (3) As of September 30, 2023 and December 31, 2022, the Company's investments in Expo and Century Towers were classified as a liability of $2.8 million and $0.8 million, respectively, due to distributions received in excess of the Company's investment. |
Schedule of Financial Information for Co-Investments Accounted For Under the Equity Method | The combined summarized financial information of co-investments is as follows ($ in thousands): September 30, 2023 December 31, 2022 Combined balance sheets: (1) Rental properties and real estate under development $ 5,099,914 $ 4,955,051 Other assets 286,663 294,663 Total assets $ 5,386,577 $ 5,249,714 Debt $ 3,561,368 $ 3,397,113 Other liabilities 330,099 264,872 Equity 1,495,110 1,587,729 Total liabilities and equity $ 5,386,577 $ 5,249,714 Company's share of equity $ 1,082,829 $ 1,084,959 Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 Combined statements of income: (1) Property revenues $ 103,379 $ 94,791 $ 303,926 $ 272,967 Property operating expenses (37,603) (36,950) (116,549) (102,252) Net operating income 65,776 57,841 187,377 170,715 Interest expense (41,802) (27,507) (111,800) (67,588) General and administrative (1,635) (5,028) (13,171) (15,387) Depreciation and amortization (44,704) (42,200) (129,009) (120,388) Net loss $ (22,365) $ (16,894) $ (66,603) $ (32,648) Company's share of net income (2) $ 10,694 $ 10,985 $ 33,802 $ 23,756 (1) Includes preferred equity investments held by the Company and excludes investments in technology co-investments. (2) Includes the Company's share of equity income from joint ventures and preferred equity investments, gain on sales of co-investments, co-investment promote income and income from early redemption of preferred equity investments. Includes related party income of $2.0 million and $1.8 million for the three months ended September 30, 2023 and 2022, respectively, and $5.9 million and $5.4 million for the nine months ended September 30, 2023 and 2022, respectively. |
Notes and Other Receivables (Ta
Notes and Other Receivables (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Receivables [Abstract] | |
Schedule of Notes and Other Receivables | Notes and other receivables consist of the following as of September 30, 2023 and December 31, 2022 ($ in thousands): September 30, 2023 December 31, 2022 Note receivable, secured, bearing interest at 11.50%, due November 2024 (Originated November 2020) $ 36,573 $ 33,477 Note receivable, secured, bearing interest at 11.00%, due October 2025 (Originated October 2021) 43,569 21,452 Note receivable, secured, bearing interest at 12.00%, due August 2024 (Originated August 2022) 11,377 10,350 Note receivable, secured, bearing interest at 11.25%, due October 2027 (Originated October 2022) 33,933 — Notes and other receivables from affiliates (1) 7,218 6,975 Straight line rent receivables (2) 10,486 12,164 Other receivables 22,089 18,961 Allowance for credit losses (642) (334) Total notes and other receivables $ 164,603 $ 103,045 (1) These amounts consist of short-term loans outstanding and due from various joint ventures as of September 30, 2023 and December 31, 2022, respectively. See Note 6, Related Party Transactions, for additional details. (2) These amounts are receivables from lease concessions recorded on a straight-line basis for the Company's operating properties. |
Schedule of Allowance for Credit Loss | The following table presents the activity in the allowance for credit losses for notes receivable, secured ($ in thousands): Notes Receivable, Secured Balance at December 31, 2022 $ 334 Provision for credit losses 308 Balance at September 30, 2023 $ 642 |
Debt (Tables)
Debt (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Debt Disclosure [Abstract] | |
Schedule of Debt and Lines of Credit | Debt consists of the following ($ in thousands): September 30, 2023 December 31, 2022 Weighted Average Term loan - variable rate, net (1) $ 298,456 $ (1,611) 4.1 Bonds public offering - fixed rate, net 5,018,473 5,313,779 7.4 Unsecured debt, net (2) 5,316,929 5,312,168 Lines of credit (3) — 52,073 Mortgage notes payable, net (4) 888,010 593,943 8.1 Total debt, net $ 6,204,939 $ 5,958,184 Weighted average interest rate on fixed rate unsecured bonds private placement and bonds public offering 3.3 % 3.3 % Weighted average interest rate on variable rate term loan (1) 4.2 % — % Weighted average interest rate on lines of credit 6.2 % 4.4 % Weighted average interest rate on mortgage notes payable 4.3 % 3.5 % (1) In October 2022, the Operating Partnership obtained a $300.0 million unsecured term loan priced at Adjusted SOFR plus 0.85% and matures in October 2024 with three 12-month extension options, exercisable at the Company's option. This loan has been swapped to an all-in fixed rate of 4.2% and the swap has a termination date of October 2026. In April 2023, the Company drew down the $300.0 million unsecured term loan and in May 2023 used the proceeds to repay the Company's $300.0 million unsecured notes due in May 2023. The unsecured term loan includes unamortized debt issuance costs of $1.5 million and $1.6 million as of September 30, 2023 and December 31, 2022, respectively. (2) Unsecured debt, net, consists of fixed rate public bond offerings and variable rate term loan which includes unamortized discount, net of premiums, of $6.6 million and $7.9 million and unamortized debt issuance costs of $26.5 million and $29.9 million, as of September 30, 2023 and December 31, 2022, respectively. (3) Lines of credit, related to the Company's two lines of unsecured credit aggregating $1.24 billion as of September 30, 2023, excludes unamortized debt issuance costs of $4.1 million and $5.1 million as of September 30, 2023 and December 31, 2022, respectively. These debt issuance costs are included in prepaid expenses and other assets on the condensed consolidated balance sheets. As of September 30, 2023, the Company’s $1.2 billion credit facility had an interest rate at the Adjusted Secured Overnight Financing Rate ("Adjusted SOFR") plus 0.75%, which is based on a tiered rate structure tied to the Company’s credit ratings, adjusted for the Company's sustainability metric grid, and a scheduled maturity date of January 2027 with two six-month extensions, exercisable at the Company’s option. As of September 30, 2023, the Company’s $35.0 million working capital unsecured line of credit had an interest rate of Adjusted SOFR plus 0.75%, which is based on a tiered rate structure tied to the Company’s credit ratings, adjusted for the Company's sustainability metric grid, and a scheduled maturity date of July 2024. (4) In July 2023, the Company closed $298.0 million in 10-year secured loans priced at a 5.08% fixed interest rate. Includes total unamortized premium, net of discounts of $0.7 million and $1.2 million, reduced by unamortized debt issuance costs of $3.2 million and $2.0 million, as of September 30, 2023 and December 31, 2022, respectively. |
Schedule of Aggregate Scheduled Principal Payments | The aggregate scheduled principal payments of the Company’s outstanding debt, excluding lines of credit, as of September 30, 2023 are as follows ($ in thousands): 2023 $ 751 2024 (1) 403,109 2025 633,054 2026 549,405 2027 803,955 Thereafter 3,850,269 Total $ 6,240,543 |
Segment Information (Tables)
Segment Information (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Segment Reporting [Abstract] | |
Schedule of Reconciliation of Revenues and Operating Profit (Loss) From Segments to Consolidated | The revenues and NOI for each of the reportable operating segments are summarized as follows for the three and nine months ended September 30, 2023 and 2022 ($ in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 Revenues: Southern California $ 172,139 $ 164,954 $ 508,873 $ 479,102 Northern California 168,224 163,157 498,263 476,415 Seattle Metro 70,631 69,054 210,885 200,964 Other real estate assets 5,404 9,697 21,298 26,837 Total property revenues $ 416,398 $ 406,862 $ 1,239,319 $ 1,183,318 Net operating income: Southern California $ 121,110 $ 117,014 $ 359,975 $ 339,992 Northern California 116,958 113,401 347,594 331,636 Seattle Metro 49,611 48,816 149,894 141,380 Other real estate assets 4,823 7,588 18,324 20,647 Total net operating income 292,502 286,819 875,787 833,655 Management and other fees from affiliates 2,785 2,886 8,328 8,313 Corporate-level property management expenses (11,504) (10,184) (34,387) (30,532) Depreciation and amortization (137,357) (135,511) (410,422) (403,561) General and administrative (14,611) (15,172) (43,735) (40,541) Expensed acquisition and investment related costs (31) (230) (375) (248) Casualty loss — — (433) — Gain on sale of real estate and land — — 59,238 — Interest expense (54,161) (51,645) (157,806) (152,499) Total return swap income 690 1,882 2,544 6,709 Interest and other income (loss) 4,406 (6,796) 29,055 (31,571) Equity income from co-investments 10,694 10,985 33,802 23,756 Tax (expense) benefit on unconsolidated co-investments (404) (1,755) (1,237) 7,863 Loss on early retirement of debt, net — (2) — (2) Gain on remeasurement of co-investment — 17,423 — 17,423 Net income $ 93,009 $ 98,700 $ 360,359 $ 238,765 |
Schedule of Reconciliation of Assets from Segment to Consolidated | Total assets for each of the reportable operating segments are summarized as follows as of September 30, 2023 and December 31, 2022 ($ in thousands): September 30, 2023 December 31, 2022 Assets: Southern California $ 3,824,670 $ 3,892,003 Northern California 5,282,972 5,414,467 Seattle Metro 1,345,028 1,374,379 Other real estate assets 92,716 133,245 Net reportable operating segment - real estate assets 10,545,386 10,814,094 Real estate under development 23,067 24,857 Co-investments 1,133,515 1,127,491 Cash and cash equivalents, including restricted cash 400,497 42,681 Marketable securities 90,186 112,743 Notes and other receivables 164,603 103,045 Operating lease right-of-use assets 64,636 67,239 Prepaid expenses and other assets 75,757 80,755 Total assets $ 12,497,647 $ 12,372,905 |
Net Income Per Common Share a_2
Net Income Per Common Share and Net Income Per Common Unit (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Net Income Per Share and Net Income Per Unit [Line Items] | |
Schedule of Net Income Per Common Share | Essex Property Trust, Inc. Three Months Ended September 30, 2023 Three Months Ended September 30, 2022 Income Weighted- Per Income Weighted- Per Basic: Net income available to common stockholders $ 87,282 64,184,180 $ 1.36 $ 92,842 65,059,678 $ 1.43 Effect of Dilutive Securities: Stock options — 1,840 — 8,112 Diluted: Net income available to common stockholders $ 87,282 64,186,020 $ 1.36 $ 92,842 65,067,790 $ 1.43 Nine Months Ended September 30, 2023 Nine Months Ended September 30, 2022 Income Weighted- Per Income Weighted- Per Basic: Net income available to common unitholders $ 340,434 64,274,085 $ 5.30 $ 223,150 65,198,532 $ 3.42 Effect of Dilutive Securities: Stock options — 1,194 — 27,235 Diluted: Net income available to common unitholders $ 340,434 64,275,279 $ 5.30 $ 223,150 65,225,767 $ 3.42 |
Essex Portfolio, L.P. | |
Net Income Per Share and Net Income Per Unit [Line Items] | |
Schedule of Net Income Per Common Share | Essex Portfolio, L.P. Three Months Ended September 30, 2023 Three Months Ended September 30, 2022 Income Weighted- Per Income Weighted- Per Basic: Net income available to common unitholders $ 90,354 66,443,416 $ 1.36 $ 96,089 67,333,077 $ 1.43 Effect of Dilutive Securities: Stock options — 1,840 — 8,112 Diluted: Net income available to common unitholders $ 90,354 66,445,256 $ 1.36 $ 96,089 67,341,189 $ 1.43 Nine Months Ended September 30, 2023 Nine Months Ended September 30, 2022 Income Weighted- Per Income Weighted- Per Basic: Net income available to common unitholders $ 352,416 66,535,917 $ 5.30 $ 230,950 67,476,168 $ 3.42 Effect of Dilutive Securities: Stock options — 1,115 — 27,235 Diluted: Net income available to common unitholders $ 352,416 66,537,111 $ 5.30 $ 230,950 67,503,403 $ 3.42 |
Organization and Basis of Pre_4
Organization and Basis of Presentation - Narrative (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2023 USD ($) community partnership building apartment project investment shares | Sep. 30, 2022 USD ($) | Sep. 30, 2023 USD ($) community partnership building apartment project investment shares | Sep. 30, 2022 USD ($) | Dec. 31, 2022 USD ($) investment partnership community shares | |
Real Estate Properties [Line Items] | |||||
Apartment communities owned (in communities) | community | 252 | 252 | |||
Apartment units owned (in apartments) | apartment | 61,997 | 61,997 | |||
Ownership interest, number of commercial buildings (in commercial buildings) | building | 3 | 3 | |||
Ownership interest, number of unconsolidated joint venture projects (in projects) | project | 1 | 1 | |||
Marketable securities | $ 100 | $ 100 | $ 200 | ||
DownREIT limited partnerships consolidated by company (in partnerships) | partnership | 18 | 18 | 18 | ||
Communities within DownREIT partnerships (in communities) | community | 9 | 9 | 9 | ||
Number of previously consolidated co-investments considered VIE (in investments) | investment | 6 | 6 | 6 | ||
Assets related to variable interest entities net of intercompany eliminations | $ 954,400 | $ 954,400 | $ 939,400 | ||
Liabilities related to variable interest entities net of intercompany eliminations | 327,600 | 327,600 | 324,300 | ||
Noncontrolling interest in variable interest entity | 121,100 | 121,100 | 121,500 | ||
Fixed rate debt carrying amount | 5,700,000 | 5,700,000 | 5,700,000 | ||
Fixed rate debt fair value | 5,100,000 | 5,100,000 | 5,200,000 | ||
Variable rate debt, carrying amount | 520,100 | 520,100 | 274,200 | ||
Variable rate debt fair value | 519,200 | 519,200 | 273,200 | ||
Capitalized internal costs related to development and redevelopment projects | 5,000 | $ 4,500 | 14,400 | $ 15,700 | |
Redeemable noncontrolling interest | 29,960 | 29,960 | $ 27,150 | ||
Interest and Other Income (Expense) | |||||
Real Estate Properties [Line Items] | |||||
Unrealized gain (loss) on equity securities recognized through income | $ (4,600) | $ (7,800) | $ (700) | $ (30,600) | |
Minimum | |||||
Real Estate Properties [Line Items] | |||||
Apartment lease term | 9 months | 9 months | |||
Maximum | |||||
Real Estate Properties [Line Items] | |||||
Apartment lease term | 12 months | 12 months | |||
Essex Portfolio, L.P. | |||||
Real Estate Properties [Line Items] | |||||
Operating partnership units outstanding (in shares) | shares | 2,258,812 | 2,258,812 | 2,272,496 | ||
Redemption value of operating partnership units outstanding | $ 479,100 | $ 479,100 | $ 481,600 | ||
Redeemable noncontrolling interest | $ 29,960 | $ 29,960 | $ 27,150 | ||
Partnership Interest | |||||
Real Estate Properties [Line Items] | |||||
Ownership interest in partnership | 96.60% | 96.60% |
Organization and Basis of Pre_5
Organization and Basis of Presentation - Schedule of Financial Securities (Details) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2023 | Dec. 31, 2022 | |
Equity securities: | ||
Carrying Value | $ 90,186 | $ 112,743 |
Marketable Securities | ||
Equity securities: | ||
Cost | 89,912 | 121,636 |
Gross Unrealized (Loss) Gain | 274 | (8,893) |
Carrying Value | 90,186 | 112,743 |
Investment funds - debt securities | ||
Equity securities: | ||
Cost | 38,886 | 43,155 |
Gross Unrealized (Loss) Gain | (6,814) | (6,771) |
Carrying Value | 32,072 | 36,384 |
Common stock, preferred stock, and stock funds | ||
Equity securities: | ||
Cost | 51,026 | 78,481 |
Gross Unrealized (Loss) Gain | 7,088 | (2,122) |
Carrying Value | $ 58,114 | $ 76,359 |
Organization and Basis of Pre_6
Organization and Basis of Presentation - Accumulated Other Comprehensive Income (Details) $ in Thousands | 9 Months Ended |
Sep. 30, 2023 USD ($) | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |
Balance at period beginning | $ 5,895,116 |
Balance at period end | 5,706,447 |
Accumulated Other Comprehensive Loss, Net | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |
Balance at period beginning | 46,466 |
Balance at period end | 55,358 |
Change in fair value and amortization of swap settlements | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |
Balance at period beginning | 46,466 |
Other comprehensive income before reclassification | 8,877 |
Amounts reclassified from accumulated other comprehensive income | 15 |
Other comprehensive income | 8,892 |
Balance at period end | 55,358 |
Essex Portfolio, L.P. | Change in fair value and amortization of swap settlements | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |
Balance at period beginning | 52,010 |
Other comprehensive income before reclassification | 9,190 |
Amounts reclassified from accumulated other comprehensive income | 15 |
Other comprehensive income | 9,205 |
Balance at period end | $ 61,215 |
Organization and Basis of Pre_7
Organization and Basis of Presentation - Redeemable Noncontrolling Interest (Details) $ in Thousands | 9 Months Ended |
Sep. 30, 2023 USD ($) | |
Stockholders' Equity Attributable to Noncontrolling Interest [Roll Forward] | |
Beginning balance | $ 27,150 |
Reclassification due to change in redemption value and other | 2,810 |
Ending balance | $ 29,960 |
Organization and Basis of Pre_8
Organization and Basis of Presentation - Cash, Cash Equivalents and Restricted Cash And Cash Equivalents (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 | Sep. 30, 2022 | Dec. 31, 2021 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||||
Cash and cash equivalents-unrestricted | $ 391,994 | $ 33,295 | $ 42,711 | $ 48,420 |
Cash and cash equivalents-restricted | 8,503 | 9,386 | 10,858 | 10,218 |
Total unrestricted and restricted cash and cash equivalents shown in the condensed consolidated statement of cash flows | $ 400,497 | $ 42,681 | $ 53,569 | $ 58,638 |
Significant Transactions Duri_2
Significant Transactions During the Nine Months Ended September 30, 2023 and Subsequent Events (Details) $ / shares in Units, $ in Millions | 1 Months Ended | 9 Months Ended | |||||
Sep. 30, 2023 USD ($) | Jul. 31, 2023 USD ($) property | Jun. 30, 2023 USD ($) | May 31, 2023 USD ($) | Apr. 30, 2023 USD ($) apartment | Mar. 31, 2023 USD ($) apartment | Sep. 30, 2023 USD ($) $ / shares shares | |
Other Commitments [Line Items] | |||||||
Treasury stock acquired, average cost per share (in dollars per share) | $ / shares | $ 218.88 | ||||||
Number of properties | property | 4 | ||||||
Secured Debt | |||||||
Other Commitments [Line Items] | |||||||
Secured loans | $ 298 | ||||||
Fixed interest rate term | 10 years | ||||||
Interest rate | 5.08% | ||||||
Unsecured debt | |||||||
Other Commitments [Line Items] | |||||||
Secured loans | $ 300 | $ 300 | |||||
Repayments of unsecured debt | $ 300 | ||||||
Stock Repurchase Plan | |||||||
Other Commitments [Line Items] | |||||||
Shares repurchased and retired during period (in shares) | shares | 437,026 | ||||||
Shares repurchased and retired during period, value | $ 95.7 | ||||||
Purchase authority remaining under stock repurchase plan | 302.7 | 302.7 | |||||
Stock repurchase plan amount | 500 | $ 500 | |||||
Multifamily Community Located In Southern California | |||||||
Other Commitments [Line Items] | |||||||
Proceeds from dispositions of co-investments | $ 12.3 | ||||||
Preferred return rate | 13.50% | ||||||
Preferred Equity Investment Property in Southern California | |||||||
Other Commitments [Line Items] | |||||||
Proceeds from dispositions of co-investments | $ 14.7 | ||||||
Early redemption fee | $ 0.3 | ||||||
Preferred Equity Investment Property In Northern California | |||||||
Other Commitments [Line Items] | |||||||
Proceeds from dispositions of co-investments | $ 11.2 | ||||||
Hacienda at Camarillo Oaks | |||||||
Other Commitments [Line Items] | |||||||
Number of units acquired | apartment | 73 | ||||||
Payments to acquire real estate | $ 23.1 | ||||||
CBC and The Sweeps | |||||||
Other Commitments [Line Items] | |||||||
Number of units acquired | apartment | 239 | ||||||
Payments to acquire real estate | $ 91.7 | ||||||
Gain on sale of properties | $ 54.5 |
Revenues - Disaggregation of Re
Revenues - Disaggregation of Revenue (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 USD ($) community | Sep. 30, 2022 USD ($) | Sep. 30, 2023 USD ($) community | Sep. 30, 2022 USD ($) | |
Disaggregation of Revenue [Line Items] | ||||
Rental and other property | $ 416,398 | $ 406,862 | $ 1,239,319 | $ 1,183,318 |
Management and other fees from affiliates | 2,785 | 2,886 | 8,328 | 8,313 |
Revenues | $ 419,183 | 409,748 | $ 1,247,647 | 1,191,631 |
Apartment communities owned (in communities) | community | 252 | 252 | ||
Rental income | ||||
Disaggregation of Revenue [Line Items] | ||||
Rental and other property | $ 410,438 | 401,467 | $ 1,222,859 | 1,166,670 |
Other property | ||||
Disaggregation of Revenue [Line Items] | ||||
Rental and other property | 5,960 | 5,395 | 16,460 | 16,648 |
Rental and other property revenues | ||||
Disaggregation of Revenue [Line Items] | ||||
Rental and other property | 416,398 | 406,862 | 1,239,319 | 1,183,318 |
Rental and other property revenues | Same-property | ||||
Disaggregation of Revenue [Line Items] | ||||
Rental and other property | $ 398,460 | 386,200 | $ 1,181,559 | 1,126,489 |
Occupancy threshold for classification as stabilized | 90% | 90% | ||
Rental and other property revenues | Acquisitions | ||||
Disaggregation of Revenue [Line Items] | ||||
Rental and other property | $ 1,528 | 675 | $ 3,881 | 675 |
Rental and other property revenues | Development | ||||
Disaggregation of Revenue [Line Items] | ||||
Rental and other property | 5,808 | 5,410 | 17,018 | 15,008 |
Rental and other property revenues | Redevelopment | ||||
Disaggregation of Revenue [Line Items] | ||||
Rental and other property | 1,564 | 1,422 | 4,696 | 4,348 |
Rental and other property revenues | Non-residential/other, net | ||||
Disaggregation of Revenue [Line Items] | ||||
Rental and other property | $ 10,432 | 14,783 | $ 33,658 | 44,403 |
Apartment communities owned (in communities) | community | 2 | 2 | ||
Rental and other property revenues | Straight line rent concession | ||||
Disaggregation of Revenue [Line Items] | ||||
Rental and other property | $ (1,394) | (1,628) | $ (1,493) | (7,605) |
Rental and other property revenues | Operating Segments | Southern California | ||||
Disaggregation of Revenue [Line Items] | ||||
Rental and other property | 172,139 | 164,954 | 508,873 | 479,102 |
Rental and other property revenues | Operating Segments | Northern California | ||||
Disaggregation of Revenue [Line Items] | ||||
Rental and other property | 168,224 | 163,157 | 498,263 | 476,415 |
Rental and other property revenues | Operating Segments | Seattle Metro | ||||
Disaggregation of Revenue [Line Items] | ||||
Rental and other property | 70,631 | 69,054 | 210,885 | 200,964 |
Rental and other property revenues | Other real estate assets | ||||
Disaggregation of Revenue [Line Items] | ||||
Rental and other property | $ 5,404 | $ 9,697 | $ 21,298 | $ 26,837 |
Revenues - Narrative (Details)
Revenues - Narrative (Details) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2023 | Dec. 31, 2022 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||
Deferred revenue | $ 1.2 | $ 1.7 |
Deferred revenue, revenue recognized | 0.5 | |
Deferred revenue balance from contracts with remaining performance obligations | $ 1.2 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-10-01 | ||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||
Percentage of remaining performance obligations due per period | 15% | |
Expected timing of performance obligation satisfaction, period | 3 months | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-01-01 | ||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||
Percentage of remaining performance obligations due per period | 68% | |
Expected timing of performance obligation satisfaction, period | 2 years |
Co-investments - Narrative (Det
Co-investments - Narrative (Details) $ in Millions | Sep. 30, 2023 USD ($) investment | Dec. 31, 2022 USD ($) investment |
Investments in and Advance to Affiliates, Subsidiaries, Associates, and Joint Ventures [Abstract] | ||
Number of technology co-investments | investment | 6 | 6 |
Co-investment | $ 39.8 | $ 39.4 |
Co-investment, committed capital | $ 86 | $ 87 |
Co-investments - Schedule of In
Co-investments - Schedule of Investments (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2023 | Dec. 31, 2022 | |
Schedule of Equity Method Investments [Line Items] | ||
Co-investments | $ 1,082,829 | $ 1,084,959 |
Distributions in excess of investments in co-investments | 50,686 | 42,532 |
Total operating and other co-investments, net | ||
Schedule of Equity Method Investments [Line Items] | ||
Co-investments | $ 461,335 | 491,831 |
Wesco I, Wesco III, Wesco IV, Wesco V, and Wesco VI | ||
Schedule of Equity Method Investments [Line Items] | ||
Weighted average company ownership percentage | 54% | |
Co-investments | $ 164,756 | 178,552 |
BEXAEW, BEX II, BEX IV, and 500 Folsom | ||
Schedule of Equity Method Investments [Line Items] | ||
Weighted average company ownership percentage | 50% | |
Co-investments | $ 228,926 | 238,537 |
Other | ||
Schedule of Equity Method Investments [Line Items] | ||
Weighted average company ownership percentage | 52% | |
Co-investments | $ 67,653 | 74,742 |
Distributions in excess of investments in co-investments | $ 2,800 | 800 |
Total development co-investments | ||
Schedule of Equity Method Investments [Line Items] | ||
Weighted average company ownership percentage | 51% | |
Co-investments | $ 14,612 | 12,994 |
Total preferred interest co-investments | ||
Schedule of Equity Method Investments [Line Items] | ||
Co-investments | 606,882 | 580,134 |
Total preferred interest co-investments | Investments in Majority-owned Subsidiaries | ||
Schedule of Equity Method Investments [Line Items] | ||
Co-investments | 81,500 | 87,100 |
Wesco I, Wesco III, and Wesco IV | ||
Schedule of Equity Method Investments [Line Items] | ||
Distributions in excess of investments in co-investments | $ 47,900 | $ 41,700 |
Co-investments - Combined Finan
Co-investments - Combined Financial Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | Jun. 30, 2023 | Dec. 31, 2022 | Jun. 30, 2022 | Dec. 31, 2021 | |
Equity Method Investment, Financial Statement, Reported Amounts [Abstract] | ||||||||
Rental properties and real estate under development | $ 23,067 | $ 23,067 | $ 24,857 | |||||
Total assets | 12,497,647 | 12,497,647 | 12,372,905 | |||||
Debt | 6,761,240 | 6,761,240 | 6,450,639 | |||||
Other liabilities | 45,972 | 45,972 | 43,441 | |||||
Equity | 5,706,447 | $ 5,881,197 | 5,706,447 | $ 5,881,197 | $ 5,762,005 | 5,895,116 | $ 6,006,585 | $ 6,176,508 |
Total liabilities and equity | 12,497,647 | 12,497,647 | 12,372,905 | |||||
Equity Method Investment, Summarized Financial Information [Abstract] | ||||||||
Property revenues | 419,183 | 409,748 | 1,247,647 | 1,191,631 | ||||
Interest expense | (54,161) | (51,645) | (157,806) | (152,499) | ||||
General and administrative | (14,611) | (15,172) | (43,735) | (40,541) | ||||
Net income | 93,009 | 98,700 | 360,359 | 238,765 | ||||
Related Party | Total co-investment | ||||||||
Equity Method Investment, Summarized Financial Information [Abstract] | ||||||||
Company's share of net income | 2,000 | 1,800 | 5,900 | 5,400 | ||||
Equity Method Investment, Nonconsolidated Investee or Group of Investees | ||||||||
Equity Method Investment, Financial Statement, Reported Amounts [Abstract] | ||||||||
Rental properties and real estate under development | 5,099,914 | 5,099,914 | 4,955,051 | |||||
Other assets | 286,663 | 286,663 | 294,663 | |||||
Total assets | 5,386,577 | 5,386,577 | 5,249,714 | |||||
Debt | 3,561,368 | 3,561,368 | 3,397,113 | |||||
Other liabilities | 330,099 | 330,099 | 264,872 | |||||
Equity | 1,495,110 | 1,495,110 | 1,587,729 | |||||
Total liabilities and equity | 5,386,577 | 5,386,577 | 5,249,714 | |||||
Company's share of equity | 1,082,829 | 1,082,829 | $ 1,084,959 | |||||
Equity Method Investment, Summarized Financial Information [Abstract] | ||||||||
Property revenues | 103,379 | 94,791 | 303,926 | 272,967 | ||||
Property operating expenses | (37,603) | (36,950) | (116,549) | (102,252) | ||||
Net operating income | 65,776 | 57,841 | 187,377 | 170,715 | ||||
Interest expense | (41,802) | (27,507) | (111,800) | (67,588) | ||||
General and administrative | (1,635) | (5,028) | (13,171) | (15,387) | ||||
Depreciation and amortization | (44,704) | (42,200) | (129,009) | (120,388) | ||||
Net income | (22,365) | (16,894) | (66,603) | (32,648) | ||||
Company's share of net income | $ 10,694 | $ 10,985 | $ 33,802 | $ 23,756 |
Notes and Other Receivables (De
Notes and Other Receivables (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2023 | Dec. 31, 2022 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Allowance for credit losses | $ (642) | $ (334) |
Total notes and other receivables | 164,603 | 103,045 |
Note receivable, secured, bearing interest at 11.50%, due November 2024 (Originated November 2020) | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Note receivables | $ 36,573 | 33,477 |
Stated interest rate | 11.50% | |
Note receivable, secured, bearing interest at 11.00%, due October 2025 (Originated October 2021) | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Note receivables | $ 43,569 | 21,452 |
Stated interest rate | 11% | |
Note receivable, secured, bearing interest at 12.00%, due August 2024 (Originated August 2022) | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Note receivables | $ 11,377 | 10,350 |
Stated interest rate | 12% | |
Note receivable, secured, bearing interest at 11.25%, due October 2027 (Originated October 2022) | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Note receivables | $ 33,933 | 0 |
Stated interest rate | 11.25% | |
Notes and other receivables from affiliates | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Note receivables | $ 7,218 | 6,975 |
Allowance for credit losses | (642) | (334) |
Straight line rent receivables | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Note receivables | 10,486 | 12,164 |
Other receivables | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Note receivables | $ 22,089 | $ 18,961 |
Notes and Other Receivables - A
Notes and Other Receivables - Allowance for Credit Loss (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2022 | |
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||
Beginning balance | $ 334 | |
Provision for credit losses | (51) | $ (64) |
Ending balance | 642 | |
Notes Receivable, Secured | ||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||
Beginning balance | 334 | |
Provision for credit losses | 308 | |
Ending balance | $ 642 |
Related Party Transactions (Det
Related Party Transactions (Details) | 1 Months Ended | 3 Months Ended | 9 Months Ended | ||||||||||||||
Apr. 30, 2023 USD ($) | Aug. 31, 2022 USD ($) community | Jan. 31, 2022 USD ($) | Nov. 30, 2021 USD ($) | Oct. 31, 2021 USD ($) | Sep. 30, 2021 USD ($) | Jun. 30, 2019 USD ($) apartment | Feb. 28, 2019 USD ($) | Oct. 31, 2018 USD ($) apartment | May 31, 2018 USD ($) apartment | Mar. 31, 2017 USD ($) unit | Sep. 30, 2023 USD ($) | Sep. 30, 2022 USD ($) | Sep. 30, 2023 USD ($) | Sep. 30, 2022 USD ($) | Dec. 31, 2022 USD ($) | Feb. 28, 2022 USD ($) | |
Related Party Transaction [Line Items] | |||||||||||||||||
Debt assumed in connection with acquisition | $ 0 | $ 21,303,000 | |||||||||||||||
Payments to acquire preferred equity investments | 32,169,000 | 159,461,000 | |||||||||||||||
Co-investments | $ 1,133,515,000 | 1,133,515,000 | $ 1,127,491,000 | ||||||||||||||
Notes and other receivables | 164,603,000 | $ 164,603,000 | 103,045,000 | ||||||||||||||
Apartment home community development development in Burlingame, CA | |||||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||||
Commitment funded amount | $ 11,200,000 | ||||||||||||||||
Apartment home community in Ventura, CA | |||||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||||
Commitment funded amount | $ 18,300,000 | ||||||||||||||||
Membership Interest In Sage At Cupertino | |||||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||||
Number of units acquired | unit | 230 | ||||||||||||||||
Co-investments | $ 15,300,000 | ||||||||||||||||
Investment interest acquired | 40.50% | ||||||||||||||||
Contract price | $ 90,000,000 | ||||||||||||||||
Encumbrance | $ 52,000,000 | ||||||||||||||||
Related Party | |||||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||||
Notes receivable | $ 11,200,000 | ||||||||||||||||
Number of communities owned | community | 3 | ||||||||||||||||
Asset acquisition, yield percentage | 9.50% | ||||||||||||||||
Related Party | Multifamily development community in Mountain View, CA | |||||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||||
Payments to acquire preferred equity investments | $ 24,500,000 | ||||||||||||||||
Preferred return rate | 11% | 9% | |||||||||||||||
Related Party | Apartment home community development development in Burlingame, CA | |||||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||||
Number of units acquired | apartment | 268 | ||||||||||||||||
Payments to acquire preferred equity investments | $ 18,600,000 | ||||||||||||||||
Preferred return rate | 11% | 12% | 9% | ||||||||||||||
Related Party | Related Party Bridge Loan On Property Acquired By BEX II | |||||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||||
Notes receivable | $ 32,800,000 | ||||||||||||||||
Related Party | Related Party Bridge Loan on Property Acquired By Wesco VI | |||||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||||
Proceeds from redemption of notes receivable | $ 121,300,000 | ||||||||||||||||
Related Party | Related Party Bridge Loan on Property Acquired By Wesco VI | The Rexford | |||||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||||
Notes receivable | $ 61,900,000 | ||||||||||||||||
Asset acquisition, yield percentage | 2.36% | ||||||||||||||||
Related Party | Related Party Bridge Loan on Property Acquired By Wesco VI | Monterra in Mill Creek | |||||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||||
Notes receivable | $ 30,300,000 | ||||||||||||||||
Asset acquisition, yield percentage | 2.30% | ||||||||||||||||
Related Party | Related Party Bridge Loan on Property Acquired By Wesco VI | Martha Lake Apartments | |||||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||||
Notes receivable | $ 29,200,000 | ||||||||||||||||
Asset acquisition, yield percentage | 2.15% | ||||||||||||||||
Related Party | Related Party Bridge Loan on Property Acquired By Wesco VI | Vela On Ox | |||||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||||
Notes receivable | $ 100,700,000 | ||||||||||||||||
Asset acquisition, yield percentage | 2.64% | ||||||||||||||||
Related Party | Related Party Bridge Loan on Property In Vista, CA | |||||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||||
Notes receivable | $ 48,400,000 | ||||||||||||||||
Asset acquisition, yield percentage | 2.36% | ||||||||||||||||
Related Party | Marcus & Millichap Company (MMC) | |||||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||||
Brokerage commissions | 0 | $ 0 | $ 0 | 0 | |||||||||||||
Related Party | Marcus & Millichap Company (MMC) | Brio, Walnut Creek, CA | |||||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||||
Number of units acquired | apartment | 300 | ||||||||||||||||
Payments to acquire real estate | $ 164,900,000 | ||||||||||||||||
Debt assumed in connection with acquisition | $ 98,700,000 | ||||||||||||||||
Related Party | Marcus & Millichap Company (MMC) | Apartment home community in Ventura, CA | |||||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||||
Number of units acquired | apartment | 400 | ||||||||||||||||
Preferred return rate | 10.25% | 9% | |||||||||||||||
Commitment funded amount | $ 13,000,000 | ||||||||||||||||
Commitment to fund preferred equity investment | $ 26,500,000 | ||||||||||||||||
Affiliated Entity | |||||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||||
Notes and other receivables | 7,200,000 | 7,200,000 | $ 7,000,000 | ||||||||||||||
Management and Other Fees From Affiliates | Related Party | |||||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||||
Related party transaction, amounts of transaction | 3,200,000 | 3,700,000 | 9,600,000 | 10,300,000 | |||||||||||||
Revenues from Development and Redevelopment Fees | Related Party | |||||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||||
Related party transaction, amounts of transaction | $ 500,000 | $ 900,000 | $ 1,500,000 | $ 2,000,000 |
Debt - Debt Summary (Details)
Debt - Debt Summary (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2023 | Dec. 31, 2022 | |
Debt Instrument [Line Items] | ||
Unsecured debt, net | $ 5,316,929 | $ 5,312,168 |
Lines of credit | 0 | 52,073 |
Mortgage notes payable, net | 888,010 | 593,943 |
Total debt, net | 6,204,939 | 5,958,184 |
Unsecured debt | ||
Debt Instrument [Line Items] | ||
Unsecured debt, net | $ 5,316,929 | $ 5,312,168 |
Term loan - variable rate | ||
Debt Instrument [Line Items] | ||
Weighted average interest rate | 4.20% | 0% |
Term loan - variable rate | Unsecured debt | ||
Debt Instrument [Line Items] | ||
Term loan - variable rate | $ 298,456 | $ (1,611) |
Weighted average maturity | 4 years 1 month 6 days | |
Bonds public offering - fixed rate, net | Unsecured debt | ||
Debt Instrument [Line Items] | ||
Unsecured debt, net | $ 5,018,473 | 5,313,779 |
Weighted average maturity | 7 years 4 months 24 days | |
Lines of credit | ||
Debt Instrument [Line Items] | ||
Lines of credit | $ 0 | $ 52,073 |
Weighted average interest rate | 6.20% | 4.40% |
Mortgage notes payable, net | ||
Debt Instrument [Line Items] | ||
Mortgage notes payable, net | $ 888,010 | $ 593,943 |
Weighted average interest rate | 4.30% | 3.50% |
Weighted average maturity | 8 years 1 month 6 days | |
Fixed rate public offering bond | ||
Debt Instrument [Line Items] | ||
Weighted average interest rate | 3.30% | 3.30% |
Debt - Debt Summary Footnotes (
Debt - Debt Summary Footnotes (Details) | 1 Months Ended | 9 Months Ended | |||
Jul. 31, 2023 USD ($) | May 31, 2023 USD ($) | Oct. 31, 2022 USD ($) extension_option | Sep. 30, 2023 USD ($) instrument extension_option | Dec. 31, 2022 USD ($) | |
Term loan - variable rate | Unsecured debt | |||||
Debt Instrument [Line Items] | |||||
Debt instrument face amount | $ 300,000,000 | ||||
Number of extension options (in extensions) | extension_option | 3 | ||||
Term extension period | 12 months | ||||
Interest rate | 4.20% | ||||
Unamortized debt issuance expense | $ 1,500,000 | $ 1,600,000 | |||
Term loan - variable rate | Unsecured debt | Adjusted SOFR | |||||
Debt Instrument [Line Items] | |||||
Basis spread on variable rate | 0.85% | ||||
Unsecured debt | |||||
Debt Instrument [Line Items] | |||||
Debt instrument face amount | 300,000,000 | ||||
Proceeds from issuance of unsecured debt | $ 300,000,000 | ||||
Repayments of unsecured debt | $ 300,000,000 | ||||
Unamortized debt issuance expense | 26,500,000 | 29,900,000 | |||
Unamortized discount (premium), net | $ (6,600,000) | (7,900,000) | |||
Lines of credit | |||||
Debt Instrument [Line Items] | |||||
Number of extension options (in extensions) | extension_option | 2 | ||||
Unamortized debt issuance expense | $ 4,100,000 | 5,100,000 | |||
Number of lines of unsecured credit (in instruments) | instrument | 2 | ||||
Aggregate borrowing capacity | $ 1,240,000,000 | ||||
Extension period | 6 months | ||||
Lines of credit | Working capital line of credit | |||||
Debt Instrument [Line Items] | |||||
Aggregate borrowing capacity | $ 35,000,000 | ||||
Lines of credit | SOFR | |||||
Debt Instrument [Line Items] | |||||
Basis spread on variable rate | 0.75% | ||||
Lines of credit | SOFR | Working capital line of credit | |||||
Debt Instrument [Line Items] | |||||
Basis spread on variable rate | 0.75% | ||||
Mortgage notes payable, net | |||||
Debt Instrument [Line Items] | |||||
Debt instrument face amount | $ 298,000,000 | ||||
Interest rate | 5.08% | ||||
Unamortized debt issuance expense | $ 3,200,000 | 2,000,000 | |||
Unamortized discount (premium), net | $ 700,000 | $ 1,200,000 | |||
Fixed interest rate term | 10 years |
Debt - Future Principal Payment
Debt - Future Principal Payments (Details) $ in Thousands | Sep. 30, 2023 USD ($) |
Debt Disclosure [Abstract] | |
2023 | $ 751 |
2024 | 403,109 |
2025 | 633,054 |
2026 | 549,405 |
2027 | 803,955 |
Thereafter | 3,850,269 |
Total | $ 6,240,543 |
Debt - Future Principal Payme_2
Debt - Future Principal Payments Footnotes (Details) - Mortgage Notes [Member] $ in Millions | 1 Months Ended |
Jul. 31, 2023 USD ($) | |
Debt Instrument [Line Items] | |
Debt instrument face amount | $ 298 |
Fixed interest rate term | 10 years |
Interest rate | 5.08% |
Segment Information (Details)
Segment Information (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2023 USD ($) | Sep. 30, 2022 USD ($) | Sep. 30, 2023 USD ($) segment | Sep. 30, 2022 USD ($) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | |
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||||
Number of reportable segments | segment | 3 | |||||
Number of operating segments | segment | 3 | |||||
Net operating income | $ 292,502 | $ 286,819 | $ 875,787 | $ 833,655 | ||
Management and other fees from affiliates | 2,785 | 2,886 | 8,328 | 8,313 | ||
Corporate-level property management expenses | (11,504) | (10,184) | (34,387) | (30,532) | ||
Depreciation and amortization | (137,357) | (135,511) | (410,422) | (403,561) | ||
General and administrative | (14,611) | (15,172) | (43,735) | (40,541) | ||
Expensed acquisition and investment related costs | (31) | (230) | (375) | (248) | ||
Casualty loss | 0 | 0 | (433) | 0 | ||
Gain on sale of real estate and land | 0 | 0 | 59,238 | 0 | ||
Interest expense | (54,161) | (51,645) | (157,806) | (152,499) | ||
Total return swap income | 690 | 1,882 | 2,544 | 6,709 | ||
Interest and other income (loss) | 4,406 | (6,796) | 29,055 | (31,571) | ||
Equity income from co-investments | 10,694 | 10,985 | 33,802 | 23,756 | ||
Tax (expense) benefit on unconsolidated co-investments | (404) | (1,755) | (1,237) | 7,863 | ||
Loss on early retirement of debt, net | 0 | (2) | 0 | (2) | ||
Gain on remeasurement of co-investment | 0 | 17,423 | 0 | 17,423 | ||
Net income | 93,009 | 98,700 | 360,359 | 238,765 | ||
Net reportable operating segment - real estate assets | 10,545,386 | 10,545,386 | $ 10,814,094 | |||
Real estate under development | 23,067 | 23,067 | 24,857 | |||
Co-investments | 1,133,515 | 1,133,515 | 1,127,491 | |||
Cash and cash equivalents, including restricted cash | 400,497 | 53,569 | 400,497 | 53,569 | 42,681 | $ 58,638 |
Marketable securities | 90,186 | 90,186 | 112,743 | |||
Notes and other receivables | 164,603 | 164,603 | 103,045 | |||
Operating lease right-of-use assets | 64,636 | 64,636 | 67,239 | |||
Prepaid expenses and other assets | 75,757 | 75,757 | 80,755 | |||
Total assets | 12,497,647 | 12,497,647 | 12,372,905 | |||
Rental and Other Property Revenues | ||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||||
Total revenues | 416,398 | 406,862 | 1,239,319 | 1,183,318 | ||
Management and other fees from affiliates | ||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||||
Management and other fees from affiliates | 2,785 | 2,886 | 8,328 | 8,313 | ||
Operating Segments | Southern California | ||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||||
Net operating income | 121,110 | 117,014 | 359,975 | 339,992 | ||
Net reportable operating segment - real estate assets | 3,824,670 | 3,824,670 | 3,892,003 | |||
Operating Segments | Southern California | Rental and Other Property Revenues | ||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||||
Total revenues | 172,139 | 164,954 | 508,873 | 479,102 | ||
Operating Segments | Northern California | ||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||||
Net operating income | 116,958 | 113,401 | 347,594 | 331,636 | ||
Net reportable operating segment - real estate assets | 5,282,972 | 5,282,972 | 5,414,467 | |||
Operating Segments | Northern California | Rental and Other Property Revenues | ||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||||
Total revenues | 168,224 | 163,157 | 498,263 | 476,415 | ||
Operating Segments | Seattle Metro | ||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||||
Net operating income | 49,611 | 48,816 | 149,894 | 141,380 | ||
Net reportable operating segment - real estate assets | 1,345,028 | 1,345,028 | 1,374,379 | |||
Operating Segments | Seattle Metro | Rental and Other Property Revenues | ||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||||
Total revenues | 70,631 | 69,054 | 210,885 | 200,964 | ||
Other real estate assets | ||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||||
Net operating income | 4,823 | 7,588 | 18,324 | 20,647 | ||
Net reportable operating segment - real estate assets | 92,716 | 92,716 | $ 133,245 | |||
Other real estate assets | Rental and Other Property Revenues | ||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||||
Total revenues | $ 5,404 | $ 9,697 | $ 21,298 | $ 26,837 |
Net Income Per Common Share a_3
Net Income Per Common Share and Net Income Per Common Unit (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Basic: | ||||
Net income available to common stockholders | $ 87,282 | $ 92,842 | $ 340,434 | $ 223,150 |
Weighted average common shares/units (in shares) | 64,184,180 | 65,059,678 | 64,274,085 | 65,198,532 |
Net income available to common stockholders/unitholders (in dollars per share) | $ 1.36 | $ 1.43 | $ 5.30 | $ 3.42 |
Diluted: | ||||
Net income available to common stockholders/unitholders | $ 87,282 | $ 92,842 | $ 340,434 | $ 223,150 |
Income from continuing operations available to common stockholders (in shares) | 64,186,020 | 65,067,790 | 64,275,279 | 65,225,767 |
Net income available to common stockholders/unitholders (in dollars per share) | $ 1.36 | $ 1.43 | $ 5.30 | $ 3.42 |
Essex Portfolio, L.P. | ||||
Basic: | ||||
Net income available to common stockholders | $ 90,354 | $ 96,089 | $ 352,416 | $ 230,950 |
Weighted average common shares/units (in shares) | 66,443,416 | 67,333,077 | 66,535,917 | 67,476,168 |
Net income available to common stockholders/unitholders (in dollars per share) | $ 1.36 | $ 1.43 | $ 5.30 | $ 3.42 |
Diluted: | ||||
Net income available to common stockholders/unitholders | $ 90,354 | $ 96,089 | $ 352,416 | $ 230,950 |
Income from continuing operations available to common stockholders (in shares) | 66,445,256 | 67,341,189 | 66,537,111 | 67,503,403 |
Net income available to common stockholders/unitholders (in dollars per share) | $ 1.36 | $ 1.43 | $ 5.30 | $ 3.42 |
Stock options | ||||
Basic: | ||||
Income effect of dilutive securities | $ 0 | $ 0 | $ 0 | $ 0 |
Effect of dilutive securities (in shares) | 1,840 | 8,112 | 1,194 | 27,235 |
Diluted: | ||||
Antidilutive securities excluded from computation of earnings per share, amount (in shares) | 461,873 | 501,187 | 230,326 | |
Stock options | Essex Portfolio, L.P. | ||||
Basic: | ||||
Income effect of dilutive securities | $ 0 | $ 0 | $ 0 | $ 0 |
Effect of dilutive securities (in shares) | 1,840 | 8,112 | 1,115 | 27,235 |
Diluted: | ||||
Antidilutive securities excluded from computation of earnings per share, amount (in shares) | 461,873 | 271,018 | 501,187 | 230,326 |
Convertible units | ||||
Diluted: | ||||
Antidilutive securities excluded from computation of earnings per share, amount (in shares) | 2,259,236 | 2,273,399 | 2,261,832 | 2,277,636 |
Income allocated to convertible OP Units | $ 3,100 | $ 3,200 | $ 12,000 | $ 7,800 |
Derivative Instruments and He_2
Derivative Instruments and Hedging Activities (Details) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2023 USD ($) instrument | Sep. 30, 2022 USD ($) | Sep. 30, 2023 USD ($) instrument | Sep. 30, 2022 USD ($) | Dec. 31, 2022 USD ($) | |
Derivative [Line Items] | |||||
Total return swap income | $ 690,000 | $ 1,882,000 | $ 2,544,000 | $ 6,709,000 | |
Unsecured debt | |||||
Derivative [Line Items] | |||||
Debt instrument face amount | 300,000,000 | 300,000,000 | |||
Multifamily Housing Mortgage Revenue Bonds | |||||
Derivative [Line Items] | |||||
Bond subject to interest rate caps | $ 223,000,000 | $ 223,000,000 | |||
Interest Rate Swap | Unsecured debt | |||||
Derivative [Line Items] | |||||
Interest rate | 4.20% | 4.20% | |||
Total Return Swap, Callable | |||||
Derivative [Line Items] | |||||
Total return swap income | $ 700,000 | $ 1,900,000 | $ 2,500,000 | $ 6,700,000 | |
Designated as Hedging Instrument | Interest Rate Swap | |||||
Derivative [Line Items] | |||||
Derivative, notional amount | 300,000,000 | 300,000,000 | |||
Derivative asset | 11,200,000 | 11,200,000 | $ 5,600,000 | ||
Not Designated as Hedging Instrument | Total Return Swap, Callable | |||||
Derivative [Line Items] | |||||
Derivative, notional amount | 223,000,000 | 223,000,000 | |||
Derivative, fair value, net | $ 0 | $ 0 | $ 0 | ||
Not Designated as Hedging Instrument | Total Return Swap, Callable | Multifamily Housing Mortgage Revenue Bonds | |||||
Derivative [Line Items] | |||||
Number of derivative instruments | instrument | 4 | 4 |