ESSEX PROPERTY TRUST INC

Previous wording

Essex is a self-administered and self-managed REIT that acquires, develops, redevelops, and manages apartment communities in selected residential areas located on the West Coast of the United States. Essex owns all of its interests in its real estate investments, directly or indirectly through the Operating Partnership. Essex is the sole general partner of the Operating Partnership and, as of June 30, 2024, had an approximately 96.6% general partnership interest in the Operating Partnership.

Current wording

Essex is a self-administered and self-managed REIT that acquires, develops, redevelops, and manages apartment communities in selected residential areas located on the West Coast of the United States. Essex owns all of its interests in its real estate investments, directly or indirectly through the Operating Partnership. Essex is the sole general partner of the Operating Partnership and, as of September 30, 2024, had an approximately 96.5% general partnership interest in the Operating Partnership.

Previous wording

As of June 30, 2024, the Company owned or had ownership interests in 255 operating apartment communities, comprising 62,510 apartment homes, excluding the Company’s ownership interest in preferred equity co-investments, loan investments, and three operating commercial buildings.

Current wording

As of September 30, 2024, the Company owned or had ownership interests in 255 operating apartment communities, comprising 62,510 apartment homes, excluding the Company’s ownership interest in preferred equity co-investments, loan investments, and two operating commercial buildings.

Previous wording

Co-investments, including Wesco I, Wesco III, Wesco IV, Wesco V, Wesco VI, BEX II, BEX IV and 500 Folsom communities, developments under construction, and preferred equity interest co-investment communities are not included in the table presented above for both periods. The communities previously held in the BEXAEW co-investment, which was consolidated in the first quarter of 2024, are excluded from the June 30, 2023 table but included in the June 30, 2024 table.

Current wording

Co-investments, including Wesco I, Wesco III, Wesco IV, Wesco V, Wesco VI, BEX II, BEX IV and 500 Folsom communities, developments under construction, and preferred equity interest co-investment communities are not included in the table presented above for both periods. The communities previously held in the BEXAEW, Patina at Midtown, and Century Towers co-investments, which were consolidated in 2024, are excluded from the September 30, 2023 table but included in the September 30, 2024 table.

Previous wording

The Company is emerging from restrictions resulting from the COVID-19 pandemic and continues to comply with the stated intent of local, county, state and federal laws, some of which limit rent increases during times of emergency and impair the ability to collect unpaid rent during certain timeframes and in various regions in which our communities are located, impacting the Company and its properties. Concurrently, geopolitical tensions and regional conflicts have increased uncertainty during 2023 and 2024. Inflation has caused an increase in consumer prices, thereby reducing purchasing power and elevating the risks of a recession. Due to increased inflation, the U.S. Federal Reserve raised the federal funds rate a total of seven times during 2022 and four times in 2023. In response, market interest rates have increased significantly during this time. Although recent public statements by the U.S. Federal Reserve have indicated that if inflation declines further towards its target range, it will consider reducing interest rates, there can be no assurance as to when or if benchmark interest rates or market interest rates may be reduced.

Current wording

The Company is emerging from restrictions resulting from the COVID-19 pandemic and continues to comply with the stated intent of local, county, state and federal laws, some of which limit rent increases during times of emergency and impair the ability to collect unpaid rent during certain timeframes and in various regions in which our communities are located, impacting the Company and its properties. Concurrently, geopolitical tensions and regional conflicts have increased uncertainty during 2023 and 2024. Inflation has caused an increase in consumer prices, thereby reducing purchasing power and elevating the risks of a recession. In response to increased inflation, the U.S. Federal Reserve raised the federal funds rate throughout 2022 and 2023 resulting in a significant increase of market interest rates. In the third quarter of 2024, the U.S. Federal Reserve lowered the federal funds rate in conjunction with the softening of U.S. inflation and short term market interest rates have declined.

Previous wording

Primarily as a result of the impact of the COVID-19 pandemic, the Company's cash delinquencies as a percentage of scheduled rental income for the Company’s stabilized apartment communities or "Same-Property" (stabilized properties consolidated by the Company for the quarters ended June 30, 2024 and 2023) have generally remained higher than the pre-pandemic historical average of 0.35% since the second quarter of 2020. Cash delinquencies were elevated at 2.1% for the three months ended June 30, 2023 and has decreased to 0.9% for the three months ended June 30, 2024. Delinquency benefited from Emergency Rental Assistance payments of $0.4 million for the three months ended June 30, 2023 compared to payments of $0.5 million for the three months ended June 30, 2024; however, current tenant delinquencies remained above pre-pandemic levels. The Company continues to work with residents to collect such cash delinquencies. As of June 30, 2024, the delinquencies have not had a material adverse impact on the Company's liquidity position.

Current wording

The Company's cash delinquencies as a percentage of scheduled rental income for the Company’s stabilized apartment communities or "Same-Property" (stabilized properties consolidated by the Company for the quarters ended September 30, 2024 and 2023) have generally remained higher than the pre-pandemic historical average of 0.35% since the second quarter of 2020. Cash delinquencies were elevated at 2.0% for the three months ended September 30, 2023 and has decreased to 0.7% for the three months ended September 30, 2024. Delinquency benefited slightly from Emergency Rental Assistance payments of $0.3 million for the three months ended September 30, 2023 compared to payments of $0.2 million for the three months ended September 30, 2024; however, current tenant delinquencies remained above pre-pandemic levels. The Company continues to work with residents to collect such cash delinquencies. As of September 30, 2024, the delinquencies have not had a material adverse impact on the Company's liquidity position.

Previous wording

The Company’s average financial occupancy for the Company’s Same-Property portfolio was 96.2% and 96.6% for the three months ended June 30, 2024 and 2023, respectively. Financial occupancy is defined as the percentage resulting from dividing actual rental income by total scheduled rental income. Actual rental income represents contractual rental income pursuant to leases without considering delinquency and concessions. Total scheduled rental income represents the value of all apartment homes, with occupied apartment homes valued at contractual rental rates pursuant to leases and vacant apartment homes valued at estimated market rents. The Company believes that financial occupancy is a meaningful measure of occupancy because it considers the value of each vacant apartment home at its estimated market rate.

Current wording

The average financial occupancy for the Company’s Same-Property portfolio was 96.2% and 96.4% for the three months ended September 30, 2024 and 2023, respectively. Financial occupancy is defined as the percentage resulting from dividing actual rental income by total scheduled rental income. Actual rental income represents contractual rental income pursuant to leases without considering delinquency and concessions. Total scheduled rental income represents the value of all apartment homes, with occupied apartment homes valued at contractual rental rates pursuant to leases and vacant apartment homes valued at estimated market rents. The Company believes that financial occupancy is a meaningful measure of occupancy because it considers the value of each vacant apartment home at its estimated market rate.

Previous wording

Same-Property Revenues increased by $13.8 million or 3.4% to $414.8 million for the second quarter of 2024 from $401.1 million for the second quarter of 2023. The increase was primarily attributable to an increase of 1.8% in average rental rates from $2,602 per apartment home for the second quarter of 2023 to $2,649 per apartment home for the second quarter of 2024, and 1.1% of the increase was attributable to a decrease in delinquencies for the second quarter of 2024 compared to the second quarter of 2023.

Current wording

Same-Property Revenues increased by $13.9 million or 3.5% to $413.2 million for the third quarter of 2024 from $399.3 million for the third quarter of 2023. The increase was primarily attributable to an increase of 1.8% in average rental rates from $2,623 per apartment home for the third quarter of 2023 to $2,669 per apartment home for the third quarter of 2024, and 1.3% of the increase was attributable to a decrease in delinquencies for the third quarter of 2024 compared to the third quarter of 2023.

Previous wording

Non-Same Property Revenues increased by $12.7 million or 104.4% to $24.9 million in the second quarter of 2024 from $12.2 million in the second quarter of 2023. The increase was primarily due to the acquisitions of the BEXAEW portfolio, ARLO Mountain View, and Maxwell Sunnyvale in 2024.

Current wording

Non-Same Property Revenues increased by $17.8 million or 104.2% to $34.9 million in the third quarter of 2024 from $17.1 million in the third quarter of 2023. The increase was primarily due to the acquisitions of the BEXAEW portfolio, ARLO Mountain View, Maxwell Sunnyvale, Patina at Midtown, and Century Towers in 2024.

Previous wording

Property operating expenses, excluding real estate taxes increased by $4.9 million or 6.6% to $78.7 million for the second quarter of 2024 compared to $73.8 million for the second quarter of 2023, primarily due to increases of $2.6 million in administrative expenses, $2.0 million in utilities expenses, and $1.1 million in personnel costs, offset by a decrease of $0.8 million in maintenance and repairs expenses. Same-Property operating expenses, excluding real estate taxes, increased by $3.6 million or 4.9% to $76.5 million in the second quarter of 2024 compared to $72.9 million in the second quarter of 2023, primarily due to increases of $2.5 million in insurance and other expenses, $1.3 million in utilities expenses, $0.6 million in personnel costs, and $0.3 million in administrative expenses, offset by a decrease of $1.1 million in maintenance and repairs expenses.

Current wording

and repairs expenses. Same-Property operating expenses, excluding real estate taxes, increased by $5.5 million or 7.4% to $80.2 million in the third quarter of 2024 compared to $74.7 million in the third quarter of 2023, primarily due to increases of $2.6 million in utilities expenses, $1.3 million in insurance and other expenses, $1.1 million in personnel costs, $0.3 million in administrative expenses, and $0.2 million in maintenance and repairs expenses.

Previous wording

Real estate taxes increased by $1.9 million or 4.2% to $47.3 million for the second quarter of 2024 compared to $45.4 million for the second quarter of 2023, primarily due to increases in tax rates in California and the Seattle Metro region, the consolidation of four apartment home communities as part of purchasing the BEXAEW portfolio, as well as the acquisitions of ARLO Mountain View and Maxwell Sunnyvale in 2024. Same-Property real estate taxes increased by $1.6 million or 3.8% to $44.9 million for the second quarter of 2024 compared to $43.3 million for the second quarter of 2023 primarily due to increases in tax rates in California and the Seattle Metro region.

Current wording

Real estate taxes increased by $2.1 million or 4.5% to $49.0 million for the third quarter of 2024 compared to $46.9 million for the third quarter of 2023, primarily due to increases in tax rates in California and the Seattle Metro region and due to acquisitions in 2024. Same-Property real estate taxes increased by $1.0 million or 2.3% to $45.5 million for the third quarter of 2024 compared to $44.5 million for the third quarter of 2023 primarily due to increases in tax rates in California and the Seattle Metro region.

Previous wording

Depreciation and amortization expense increased by $8.9 million or 6.5% to $145.6 million for the second quarter of 2024 compared to $136.7 million for the second quarter of 2023, primarily due to the acquisitions of the BEXAEW portfolio, ARLO Mountain View, and Maxwell Sunnyvale in 2024.

Current wording

Depreciation and amortization expense increased by $9.0 million or 6.6% to $146.4 million for the third quarter of 2024 compared to $137.4 million for the third quarter of 2023, primarily due to acquisitions in 2024.

Previous wording

Interest expense increased by $6.5 million or 12.4% to $59.1 million for the second quarter of 2024 compared to $52.6 million for the second quarter of 2023, primarily due to borrowing on the $300.0 million unsecured term loan in April 2023, the $298.0 million of 10-year secured loans closed in July 2023, the issuance in March 2024 of $350.0 million senior unsecured notes due April 2034, and increased borrowing on the two unsecured lines of credit which resulted in an increase in interest expense of $10.1 million for the second quarter of 2024. Additionally, there was a $0.1 million decrease in capitalized interest in the second quarter of 2024, due to a decrease in development activity as compared to the same period in 2023. These increases to interest expense were partially offset by various debt that was paid off, matured, or due to regular principal amortization during and after the second quarter of 2023, primarily due to the payoff of the $300.0 million of senior unsecured notes due May 1, 2023 and the $400.0 million of senior unsecured notes due May 1, 2024, which resulted in a decrease in interest expense of $3.7 million for the second quarter of 2024.

Current wording

Interest expense increased by $5.0 million or 9.2% to $59.2 million for the third quarter of 2024 compared to $54.2 million for the third quarter of 2023, primarily due to the $298.0 million of 10-year secured loans closed in July 2023, the issuance in March 2024 and August 2024 of $550.0 million senior unsecured notes due April 2034, and increased borrowing on the two unsecured lines of credit which resulted in an increase in interest expense of $9.0 million for the third quarter of 2024. Additionally, there was a $0.2 million decrease in capitalized interest in the third quarter of 2024, due to a decrease in development activity as compared to the same period in 2023. These increases to interest expense were partially offset by various debt that was paid off, matured, or due to regular principal amortization during and after the third quarter of 2023, primarily due to the payoff of the $300.0 million of senior unsecured notes due May 1, 2023 and the $400.0 million of senior unsecured notes due May 1, 2024, which resulted in a decrease in interest expense of $4.1 million for the third quarter of 2024.

Previous wording

Interest and other income decreased by $2.6 million or 21.3% to $9.6 million for the second quarter of 2024 compared to $12.2 million for the second quarter of 2023, primarily due to a decrease of $6.0 million in realized and unrealized gains on marketable securities, net, offset by an increase of $3.0 million in interest income.

Current wording

Interest and other income increased by $7.0 million or 159.1% to $11.4 million for the third quarter of 2024 compared to $4.4 million for the third quarter of 2023, primarily due to an increase of $10.3 million in realized and unrealized gains on marketable securities, net, offset by a decrease of $3.8 million in interest income.

Previous wording

Equity income from co-investments decreased by $2.5 million or 20.5% to $9.7 million for the second quarter of 2024 compared to $12.2 million for the second quarter of 2023, primarily due to decreases of $1.9 million in income from preferred equity investments including income from early redemption of a preferred equity investment, and $1.1 million from equity income from non-core technology co-investments.

Current wording

Equity income from co-investments increased by $0.9 million or 8.4% to $11.6 million for the third quarter of 2024 compared to $10.7 million for the third quarter of 2023, primarily due to a decrease of $2.4 million in equity loss from co-investments, offset by a decrease of $1.4 million in income from preferred equity investments.

Previous wording

The Company's average financial occupancy for its stabilized apartment communities or "Same-Property" (stabilized properties consolidated by the Company for the six months ended June 30, 2024 and 2023) was 96.2% and 96.6% for the six months ended June 30, 2024 and 2023, respectively.

Current wording

The Company's average financial occupancy for its stabilized apartment communities or "Same-Property" (stabilized properties consolidated by the Company for the nine months ended September 30, 2024 and 2023) was 96.2% and 96.6% for the nine months ended September 30, 2024 and 2023, respectively.

Previous wording

The regional breakdown of the Company's Same-Property portfolio for financial occupancy for the six months ended June 30, 2024 and 2023 is as follows:

Current wording

The regional breakdown of the Company's Same-Property portfolio for financial occupancy for the nine months ended September 30, 2024 and 2023 is as follows:

Previous wording

Same-Property Revenues increased by $28.1 million or 3.5% to $824.7 million for the six months ended June 30, 2024 from $796.6 million for the six months ended June 30, 2023. The increase was primarily attributable to an increase of 2.0% in average rental rates from $2,589 per apartment home for the six months ended June 30, 2023 to $2,640 per apartment home for the six months ended June 30, 2024 and 0.9% of the increase was attributable to a decrease in delinquencies for the six months ended June 30, 2024 compared to six months ended June 30, 2023.

Current wording

Same-Property Revenues increased by $41.3 million or 3.5% to $1.2 billion for the nine months ended September 30, 2024 from $1.2 billion for the nine months ended September 30, 2023. The increase was primarily attributable to an increase of 1.9% in average rental rates from $2,598 per apartment home for the nine months ended September 30, 2023 to $2,648 per apartment home for the nine months ended September 30, 2024 and 1.1% of the increase was attributable to a decrease in delinquencies for the nine months ended September 30, 2024 compared to nine months ended September 30, 2023.

Previous wording

Non-Same Property Revenues increased by $13.0 million or 49.4% to $39.3 million for the six months ended June 30, 2024 from $26.3 million for the six months ended June 30, 2023. The increase was primarily due to acquisitions of Hacienda at Camarillo Oaks in the second quarter of 2023, as well as the acquisitions of the BEXAEW portfolio, ARLO Mountain View, and Maxwell Sunnyvale in 2024.

Current wording

Non-Same Property Revenues increased by $31.5 million or 57.0% to $86.8 million for the nine months ended September 30, 2024 from $55.3 million for the nine months ended September 30, 2023. The increase was primarily due to acquisitions of Hacienda at Camarillo Oaks in the second quarter of 2023, as well as the acquisitions of the BEXAEW portfolio, ARLO Mountain View, Maxwell Sunnyvale, Patina at Midtown, and Century Towers in 2024.

Previous wording

Property operating expenses, excluding real estate taxes increased by $10.0 million or 6.8% to $157.7 million for the six months ended June 30, 2024 compared to $147.7 million for the six months ended June 30, 2023, primarily due to increases of $4.3 million in utilities expenses, $4.2 million in administrative expenses, and $2.0 million in personnel costs, offset by a decrease of $0.5 million in maintenance and repairs expenses. Same-Property operating expenses, excluding real estate taxes, increased by $9.2 million or 6.3% to $155.1 million for the six months ended June 30, 2024 compared to $145.9 million for the six months ended June 30, 2023, primarily due to increases of $4.5 million in insurance and other expenses, $3.5 million in utilities expenses, $1.4 million in personnel costs, and $0.7 million in administrative expenses. These increases were offset by a decrease of $0.9 million in maintenance and repairs expenses.

Current wording

Property operating expenses, excluding real estate taxes increased by $18.3 million or 8.1% to $243.0 million for the nine months ended September 30, 2024 compared to $224.7 million for the nine months ended September 30, 2023, primarily due to increases of $8.2 million in utilities expenses, $5.6 million in administrative expenses, and $4.0 million in personnel costs, and $0.4 million in maintenance and repairs expenses. Same-Property operating expenses, excluding real estate taxes, increased by $14.3 million or 6.6% to $231.5 million for the nine months ended September 30, 2024 compared to $217.2 million for the nine months ended September 30, 2023, primarily due to increases of $5.8 million in utilities expenses, $5.5 million in insurance and other expenses, $2.4 million in personnel costs, and $1.1 million in administrative expenses. These increases were offset by a decrease of $0.5 million in maintenance and repairs expenses.

Previous wording

Real estate taxes increased by $2.3 million or 2.5% to $94.2 million for the six months ended June 30, 2024 compared to $91.9 million for the six months ended June 30, 2023, primarily due to increases in tax rates in California and the Seattle Metro region, the consolidation of four apartment home communities as part of purchasing the BEXAEW portfolio, as well as the acquisitions of ARLO Mountain View and Maxwell Sunnyvale in 2024, and the purchase of Hacienda at Camarillo Oaks in 2023. Same-Property real estate taxes increased by $1.9 million or 2.2% to $89.8 million for the six months ended June 30, 2024 compared to $87.9 million for the six months ended June 30, 2023, primarily due to increases in tax rates in California and the Seattle Metro region.

Current wording

Real estate taxes increased by $4.4 million or 3.2% to $143.2 million for the nine months ended September 30, 2024 compared to $138.8 million for the nine months ended September 30, 2023, primarily due to increases in tax rates in California and the Seattle Metro region and due to the purchase of Hacienda at Camarillo Oaks in 2023 and acquisitions in 2024. Same-Property real estate taxes increased by $3.0 million or 2.3% to $134.6 million for the nine months ended September 30, 2024 compared to $131.6 million for the nine months ended September 30, 2023, primarily due to increases in tax rates in California and the Seattle Metro region.

Previous wording

Depreciation and amortization expense increased by $12.2 million or 4.5% to $285.3 million for the six months ended June 30, 2024 compared to $273.1 million for the six months ended June 30, 2023, primarily due to the acquisition of Hacienda at Camarillo Oaks in 2023 and the acquisitions of the BEXAEW portfolio, ARLO Mountain View, and Maxwell Sunnyvale in 2024. These increases were offset by the sale of CBC and The Sweeps in the first quarter of 2023.

Current wording

Depreciation and amortization expense increased by $21.4 million or 5.2% to $431.8 million for the nine months ended September 30, 2024 compared to $410.4 million for the nine months ended September 30, 2023, primarily due to the purchase of Hacienda at Camarillo Oaks in 2023 and acquisitions in 2024. These increases were offset by the sale of CBC and The Sweeps in the first quarter of 2023.

Previous wording

Interest expense increased by $11.5 million or 11.1% to $115.1 million for the six months ended June 30, 2024 compared to $103.6 million for the six months ended June 30, 2023, primarily due to borrowing on the $300.0 million unsecured term loan in April 2023, the $298.0 million of 10-year secured loans closed in July 2023, the issuance in March 2024 of $350.0 million senior unsecured notes due April 2034, and increased borrowing on the two unsecured lines of credit which resulted in an increase in interest expense of $17.2 million for the six months ended June 30, 2024. Additionally, there was a $0.4 million decrease in capitalized interest in the six months ended June 30, 2024, due to a decrease in development activity as compared to the same period in 2023. These increases to interest expense were partially offset by various debt that was paid off, matured, or due to regular principal amortization during and after the six months ended June 30, 2023, primarily due to the payoff of the $300.0 million of senior unsecured notes due May 1, 2023 and the $400.0 million of senior unsecured notes due May 1, 2024, which resulted in a decrease in interest expense of $6.1 million for the second quarter of 2024.

Current wording

Interest expense increased by $16.5 million or 10.5% to $174.3 million for the nine months ended September 30, 2024 compared to $157.8 million for the nine months ended September 30, 2023, primarily due to borrowing on the $300.0 million unsecured term loan in April 2023, the $298.0 million of 10-year secured loans closed in July 2023, the issuance in March 2024 and August 2024 of $550.0 million senior unsecured notes due April 2034, and increased borrowing on the two unsecured lines of credit which resulted in an increase in interest expense of $26.2 million for the nine months ended September 30, 2024. Additionally, there was a $0.5 million decrease in capitalized interest in the nine months ended September 30, 2024, due to a decrease in development activity as compared to the same period in 2023. These increases to interest expense were partially offset by various debt that was paid off, matured, or due to regular principal amortization during and after the nine months ended September 30, 2023, primarily due to the payoff of the $300.0 million of senior unsecured notes due May 1, 2023 and the $400.0 million of senior unsecured notes due May 1, 2024, which resulted in a decrease in interest expense of $10.2 million for the third quarter of 2024.

Previous wording

Interest and other income increased by $42.2 million or 171.5% to $66.8 million in income for the six months ended June 30, 2024 compared to $24.6 million for the six months ended June 30, 2023, primarily due to increases of $34.8 million in legal settlements and $10.9 million in interest income, offset by a decrease of $3.9 million in realized and unrealized gains on marketable securities, net.

Current wording

Interest and other income increased by $49.2 million or 169.1% to $78.3 million in income for the nine months ended September 30, 2024 compared to $29.1 million for the nine months ended September 30, 2023, primarily due to increases of $34.8 million in legal settlements, $7.1 million in interest income, and $6.4 million in realized and unrealized gains on marketable securities.

Previous wording

Equity income from co-investments decreased by $1.1 million or 4.8% to $22.0 million for the six months ended June 30, 2024 compared to $23.1 million for the six months ended June 30, 2023, primarily due to $3.7 million of impairment loss from an unconsolidated co-investment, and decreases of $3.0 million in income from preferred equity investments, including income from early redemption of preferred equity investments, and $0.7 million in insurance reimbursements, legal settlements, and other, net. These decreases were partially offset by increases of $4.8 million in equity income from non-core technology co-investments, and $1.5 million in co-investment promote income.

Current wording

Equity income from co-investments decreased by $0.1 million or 0.3% to $33.7 million for the nine months ended September 30, 2024 compared to $33.8 million for the nine months ended September 30, 2023, primarily due to $3.7 million of impairment loss from an unconsolidated co-investment, and decreases of $4.4 million in income from preferred equity investments, including income from early redemption of preferred equity investments, and $0.7 million in insurance reimbursements, legal settlements, and other, net. The decreases were partially offset by increases of $4.9 million in equity income from non-core technology co-investments, $1.5 million in co-investment promote income, and a decrease of $2.4 million in equity loss from co-investments.

Previous wording

Gain on remeasurement of co-investmentof $138.3 million resulted from the Company's acquisition of its joint venture partner's 49.9% co-investment interest in the BEXAEW portfolio comprised of four apartment home communities.

Current wording

Gain on remeasurement of co-investmentof $169.9 million resulted from the Company's acquisition of its joint venture partner's interests in the BEXAEW portfolio, Patina at Midtown and Century Towers.

Previous wording

As of June 30, 2024, the Company had $55.2 million of unrestricted cash and cash equivalents and $84.3 million in marketable securities, all of which were equity securities. The Company believes that cash flows generated by its operations, existing cash and cash equivalents, marketable securities balances and availability under existing lines of credit are sufficient to meet all of its anticipated cash needs during the next twelve months. Additionally, the capital markets continue to be available and the Company is able to generate cash from the disposition of real estate assets to finance additional cash flow needs, including continued development and select acquisitions. In the event that economic disruptions occur, the Company may further utilize other resources such as its cash reserves, lines of credit, or decreased investment in redevelopment activities to supplement operating cash flows. The Company is carefully monitoring and managing its cash position in light of ongoing conditions and levels of operations. The timing, source and amounts of cash flows provided by financing activities and used in investing activities are sensitive to changes in interest rates and other fluctuations in the capital markets environment, which can affect the Company's plans for acquisitions, dispositions, development and redevelopment activities.

Current wording

As of September 30, 2024, the Company had $71.3 million of unrestricted cash and cash equivalents and $75.2 million in marketable securities, all of which were equity securities. The Company believes that cash flows generated by its operations, existing cash and cash equivalents, marketable securities balances and availability under existing lines of credit are sufficient to meet all of its anticipated cash needs during the next twelve months. Additionally, the capital markets continue to be available and the Company is able to generate cash from the disposition of real estate assets to finance additional cash flow needs, including continued development and select acquisitions. In the event that economic disruptions occur, the Company may further utilize other resources such as its cash reserves, lines of credit, or decreased investment in redevelopment activities to supplement operating cash flows. The Company is carefully monitoring and managing its cash position in light of ongoing conditions and levels of operations. The timing, source and amounts of cash flows provided by financing activities and used in investing activities are sensitive to changes in interest rates and other fluctuations in the capital markets environment, which can affect the Company's plans for acquisitions, dispositions, development and redevelopment activities.

Previous wording

As of June 30, 2024, the Company had two unsecured lines of credit aggregating $1.24 billion. As of June 30, 2024, there was $105.0 million outstanding balance on the Company's $1.2 billion unsecured line of credit. The underlying interest rate is based on a tiered rate structure tied to the Company's credit ratings, adjusted for the Company's sustainability metric grid, and was at Adjusted SOFR plus 0.765% as of June 30, 2024. This facility is scheduled to mature in January 2027, with two six-month extensions, exercisable at the Company's option. As of June 30, 2024, there was $24.4 million outstanding balance on the Company's $35.0 million working capital unsecured line of credit. The underlying interest rate on the $35.0 million line is based on a tiered rate structure tied to the Company's credit ratings, adjusted for the Company's sustainability metric grid, and was at Adjusted SOFR plus 0.765% as of June 30, 2024. Prior to its maturity in July 2024 the line of credit facility was amended such that the line's capacity increased to $75 million and the scheduled maturity date was extended to July 2026.

Current wording

As of September 30, 2024, the Company had two unsecured lines of credit aggregating $1.28 billion. As of September 30, 2024, there was no outstanding balance on the Company's $1.2 billion unsecured line of credit. The underlying interest rate is based on a tiered rate structure tied to the Company's credit ratings, adjusted for the Company's sustainability metric adjustment feature, and was at the Adjusted SOFR plus 0.765% as of September 30, 2024. This facility is scheduled to mature in January 2029, with two six-month extensions, exercisable at the Company's option. As of September 30, 2024, there was $7.9 million outstanding balance on the Company's $75.0 million working capital unsecured line of credit. The underlying interest rate on the $75.0 million line is based on a tiered rate structure tied to the Company's credit ratings, adjusted for the Company's sustainability metric adjustment feature, and was at the Adjusted SOFR plus 0.765% as of September 30, 2024. This facility is scheduled to mature in July 2026.

Previous wording

In March 2024, the Operating Partnership issued $350.0 million of senior unsecured notes due on April 1, 2034 with a coupon rate of 5.500% per annum (the "2034 Notes"), which are payable on April 1 and October 1 of each year, beginning on October 1, 2024. The 2034 Notes were offered to investors at a price of 99.752% of the principal amount. The 2034 Notes are general unsecured senior obligations of the Operating Partnership, rank equally in right of payment with all other senior unsecured indebtedness of the Operating Partnership and are unconditionally guaranteed by Essex. The Company used the net proceeds of this offering to repay debt maturities, including to fund a portion of the repayment of its outstanding 3.875% senior unsecured notes due May 2024 and for other general corporate and working capital purposes.

Current wording

In March 2024, the Operating Partnership issued $350.0 million of senior unsecured notes due on April 1, 2034 with a coupon rate of 5.500% per annum (the "2034 Notes"), which are payable on April 1 and October 1 of each year, beginning on October 1, 2024. The 2034 Notes were offered to investors at a price of 99.752% of the principal amount. The 2034 Notes are general unsecured senior obligations of the Operating Partnership, rank equally in right of payment with all other senior unsecured indebtedness of the Operating Partnership and are unconditionally guaranteed by Essex. The Company used the net proceeds of this offering to repay debt maturities, including to fund a portion of the repayment of its outstanding 3.875% senior unsecured notes due May 2024 and for other general corporate and working capital purposes. In August 2024, the Operating Partnership issued an additional $200.0 million of the 2034 Notes at a price of 102.871% of the principal amount, plus accrued interest from and including March 2024, up to, but excluding, the settlement date of August 21, 2024, with an effective yield of 5.110% per annum. These additional notes have substantially identical terms of the 2034 Notes issued in March 2024.

Previous wording

In September 2021, the Company entered into a new equity distribution agreement pursuant to which the Company may offer and sell shares of its common stock having an aggregate gross sales price of up to $900.0 million (the “2021 ATM Program”). In connection with the 2021 ATM Program, the Company may also enter into related forward sale agreements, and may sell shares of its common stock pursuant to these agreements. The use of a forward sale agreement would allow the Company to lock in a share price on the sale of shares of its common stock at the time the agreement is executed, but defer receipt of the proceeds from the sale of shares until a later date should the Company elect to settle such forward sale agreement, in whole or in part, in shares of common stock.

Current wording

In August 2024, the Company entered into a new equity distribution agreement pursuant to which the Company may offer and sell shares of its common stock having an aggregate gross sales price of up to $900.0 million (the "2024 ATM Program"). In connection with the 2024 ATM Program, the Company may also enter into related forward sale agreements whereby, at the Company's discretion, it may sell shares of its common stock under the 2024 ATM Program under forward sale agreements. The use of a forward sale agreement would allow the Company to lock in a share price on the sale of shares of its common stock at the time the agreement is executed, but defer receipt of the proceeds from the sale of shares until a later date.

Previous wording

The 2021 ATM Program replaced the prior equity distribution agreement entered into in September 2018 (the "2018 ATM Program"), which was terminated upon the establishment of the 2021 ATM Program. During the three months ended June 30, 2024, the Company did not sell any shares of its common stock through the 2021 ATM Program. As of June 30, 2024, there are no outstanding forward purchase agreements, and $900.0 million of shares remains available to be sold under the 2021 ATM Program.

Current wording

The 2024 ATM Program replaced the prior equity distribution agreement entered into in September 2021 (the "2021 ATM Program"), which was terminated upon the establishment of the 2024 ATM Program. During the nine months ended September 30, 2024, the Company did not sell any shares of its common stock through the 2024 ATM Program or the 2021 ATM Program. As of September 30, 2024, there are no outstanding forward purchase agreements, and $900.0 million of shares remains available to be sold under the 2024 ATM Program.

Previous wording

In December 2015, the Company’s Board of Directors authorized a stock repurchase plan to allow the Company to acquire shares in an aggregate of up to $250.0 million. In February 2019, the Board of Directors approved the replenishment of the stock repurchase plan such that, as of each date, the Company had $250.0 million of purchase authority remaining under the stock repurchase plan. In each of May and December 2020, the Board of Directors approved the replenishment of the stock repurchase plan such that, as of such date, the Company had $250.0 million of purchase authority remaining under the replenished plan. In September 2022, the Company's Board of Directors approved a new stock repurchase plan to allow the Company to acquire shares of common stock up to an aggregate value of $500.0 million. The plan supersedes the Company's previous common stock repurchase plan announced in December 2015. During the six months ended June 30, 2024, the Company did not repurchase any shares and as of June 30, 2024, the Company had $302.7 million of purchase authority remaining under its $500.0 million stock repurchase plan.

Current wording

In December 2015, the Company’s Board of Directors authorized a stock repurchase plan to allow the Company to acquire shares in an aggregate of up to $250.0 million. In February 2019, the Board of Directors approved the replenishment of the stock repurchase plan such that, as of each date, the Company had $250.0 million of purchase authority remaining under the stock repurchase plan. In each of May and December 2020, the Board of Directors approved the replenishment of the stock repurchase plan such that, as of such date, the Company had $250.0 million of purchase authority remaining under the replenished plan. In September 2022, the Company's Board of Directors approved a new stock repurchase plan to allow the Company to acquire shares of common stock up to an aggregate value of $500.0 million. The plan supersedes the Company's previous common stock repurchase plan announced in December 2015. During the nine months ended September 30, 2024, the Company did not repurchase any shares and as of September 30, 2024, the Company had $302.7 million of purchase authority remaining under its $500.0 million stock repurchase plan.

Previous wording

The Company defines development projects as new communities that are being constructed, or are newly constructed and are in a phase of lease-up and have not yet reached stabilized operations. As of June 30, 2024, the Company’s development pipeline was comprised of various consolidated predevelopment projects, with total incurred costs of $24.5 million.

Current wording

The Company defines development projects as new communities that are being constructed, or are newly constructed and are in a phase of lease-up and have not yet reached stabilized operations. As of September 30, 2024, the Company’s development pipeline was comprised of various consolidated predevelopment projects, with total incurred costs of $25.1 million.

Previous wording

The Company utilizes co-investments as an alternative source of capital for acquisitions of both operating and development communities. The Company had an interest in 9,210 apartment homes of operating communities with joint ventures and technology co-investments for a total book value of $434.5 million as of June 30, 2024.

Current wording

The Company utilizes co-investments as an alternative source of capital for acquisitions of both operating and development communities. The Company had an interest in 8,565 apartment homes of operating communities with joint ventures and technology co-investments for a total book value of $409.3 million as of September 30, 2024.

Previous wording

While the Company's management believes the assumptions underlying its forward-looking statements are reasonable, such forward-looking statements involve known and unknown risks, uncertainties and other factors, many of which are beyond the Company’s control, which could cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. The Company cannot assure the future results or outcome of the matters described in these statements; rather, these statements merely reflect the Company’s current expectations of the approximate outcomes of the matters discussed. Factors that might cause the Company’s actual results, performance or achievements to differ materially from those expressed or implied by these forward-looking statements include, but are not limited to, the following: occupancy rates and rental demand may be adversely affected by competition and local economic and market conditions; there may be increased interest rates, inflation, escalated operating costs and possible recessionary impacts; geopolitical tensions and regional conflicts, and the related impacts on macroeconomic conditions, including, among other things, interest rates and inflation; the impact of inflation on consumer prices with associated reduction in purchasing power and increased risk of recession; the economic effects of the COVID-19 pandemic; whether and for how long the Company’s cash delinquencies will remain elevated as a result of the impact of the COVID-19 pandemic; the terms of any refinancing may not be as favorable as the terms of existing indebtedness; the Company may be unable to maintain its investment grade credit rating with the rating agencies; the Company may be unsuccessful in the management of its relationships with its co-investment partners; the Company may fail to achieve its business objectives; time required for completion and/or stabilization of development and redevelopment projects; estimates of future income from an acquired property may prove to be inaccurate; future cash flows may be inadequate to meet operating requirements and/or may be insufficient to provide for dividend payments in accordance with REIT requirements; changes in laws or regulations; unexpected difficulties in leasing of future development projects; volatility in financial and securities markets; the Company’s failure to successfully operate acquired properties; unforeseen consequences from cyber-intrusion; government approvals, actions and initiatives, including the need for compliance with environmental requirements; and those further risks, special considerations, and other factors referred to in this quarterly report on Form 10-Q, in the Company's annual report on Form 10-K for the year ended December 31, 2023, and those risk factors and special considerations set forth in the Company's other filings with the SEC which may caus…

Excerpt shortened here; the source contains the full paragraph.

Current wording

While the Company's management believes the assumptions underlying its forward-looking statements are reasonable, such forward-looking statements involve known and unknown risks, uncertainties and other factors, many of which are beyond the Company’s control, which could cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. The Company cannot assure the future results or outcome of the matters described in these statements; rather, these statements merely reflect the Company’s current expectations of the approximate outcomes of the matters discussed. Factors that might cause the Company’s actual results, performance or achievements to differ materially from those expressed or implied by these forward-looking statements include, but are not limited to, the following: occupancy rates and rental demand may be adversely affected by competition and local economic and market conditions; there may be increased interest rates, inflation, escalated operating costs and possible recessionary impacts; geopolitical tensions and regional conflicts, and the related impacts on macroeconomic conditions, including, among other things, interest rates and inflation; the impact of inflation on consumer prices with associated reduction in purchasing power and increased risk of recession; the economic effects of the COVID-19 pandemic; whether and for how long the Company’s cash delinquencies will remain elevated as a result of the impact of the COVID-19 pandemic; the terms of any refinancing may not be as favorable as the terms of existing indebtedness; the Company may be unable to maintain its investment grade credit rating with the rating agencies; the Company may be unsuccessful in the management of its relationships with its co-investment partners; the Company may fail to achieve its business objectives; time required for completion and/or stabilization of development and redevelopment projects; estimates of future income from an acquired property may prove to be inaccurate; future cash flows may be inadequate to meet operating requirements and/or may be insufficient to provide for dividend payments in accordance with REIT requirements; changes in laws or regulations and the anticipated or actual impact of future changes in laws or regulations; unexpected difficulties in leasing of future development projects; volatility in financial and securities markets; the Company’s failure to successfully operate acquired properties; unforeseen consequences from cyber-intrusion; government approvals, actions and initiatives, including the need for compliance with environmental requirements; and those further risks, special considerations, and other factors referred to in this quarterly report on Form 10-Q, in the Company's annual report on Form 10-K for the year ended December 31, 2023, and those risk factors and special consi…

Excerpt shortened here; the source contains the full paragraph.

Previous wording

The table below is a reconciliation of net income available to common stockholders to FFO and Core FFO for the three and six months ended June 30, 2024 and 2023 (in thousands, except share and per share amounts):

Current wording

The table below is a reconciliation of net income available to common stockholders to FFO and Core FFO for the three and nine months ended September 30, 2024 and 2023 (in thousands, except share and per share amounts):

Previous wording

(1) The Company consolidates certain co-investments. The noncontrolling interest's share of net operating income in these investments for the three and six months ended June 30, 2024 was $0.8 million and $1.7 million, respectively.

Current wording

(1) The Company consolidates certain co-investments. The noncontrolling interest's share of net operating income in these investments for the three and nine months ended September 30, 2024 was $0.9 million and $2.6 million, respectively.

Previous wording

(4) Includes legal settlement gains of $42.5 million and $7.7 million for the six months ended June 30, 2024 and 2023, respectively.

Current wording

(4) Includes legal settlement gains of $42.5 million and $7.7 million for the nine months ended September 30, 2024 and 2023, respectively.