ESSEX PORTFOLIO LP

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, 2025, had an approximately 96.6% general partner interest in the Operating Partnership.

Current wording

Essex is a self-administered and self-managed REIT that acquires, develops, redevelops, and manages apartment home 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, 2025, had an approximately 96.6% general partner interest in the Operating Partnership.

Previous wording

As of June 30, 2025, the Company owned or had ownership interests in 259 operating apartment communities, comprising 62,842 apartment homes, excluding the Company’s ownership in preferred equity co-investments, loan investments, two operating commercial buildings, and a development pipeline comprised of one consolidated project and various predevelopment projects.

Current wording

As of September 30, 2025, the Company owned or had ownership interests in 257 operating apartment home communities, comprising 62,451 apartment homes, excluding the Company’s ownership in preferred equity co-investments, loan investments, two operating commercial buildings, and a development pipeline comprised of one consolidated project and various predevelopment projects.

Previous wording

The Company’s apartment communities are predominantly located in the following major regions:

Current wording

The Company’s apartment home communities are predominantly located in the following major regions:

Previous wording

Co-investments, including Wesco I, Wesco III, Wesco IV, Wesco V, Wesco VI, BEX IV and other co-investments, 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 BEX II, Patina at Midtown, and Century Towers co-investments, which were consolidated in 2024, are excluded from the table as of June 30, 2024 but included in the table as of June 30, 2025.

Current wording

Co-investments, including Wesco I, Wesco III, Wesco IV, Wesco V, Wesco VI, BEX IV and other co-investments, 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 BEX II co-investment, which was consolidated in 2024, are excluded from the table as of September 30, 2024 but included in the table as of September 30, 2025.

Previous wording

The average financial occupancy for the Company’s 2025 Same-Property portfolio (stabilized properties consolidated by the Company for the quarters ended June 30, 2025 and 2024) was 96.2% for both the three months ended June 30, 2025 and 2024. 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 2025 Same-Property portfolio (stabilized properties consolidated by the Company for the quarters ended September 30, 2025 and 2024) was 96.1% and 96.2% for the three months ended September 30, 2025 and 2024, 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

The Company does not take into account delinquency and concessions to calculate actual rent for occupied apartment homes and market rents for vacant apartment homes. The calculation of financial occupancy compares contractual rates for occupied apartment homes to estimated market rents for unoccupied apartment homes, and thus the calculation compares the gross value of all apartment homes excluding delinquency and concessions. For apartment communities that are development properties in lease-up without stabilized occupancy figures, the Company believes the physical occupancy rate is the appropriate performance metric. While an apartment community is in the lease-up phase, the Company’s primary motivation is to stabilize the property, which may entail the use of rent concessions and other incentives, and thus financial occupancy, which is based on contractual income, is not considered the best metric to quantify occupancy.

Current wording

The Company does not take into account delinquency and concessions to calculate actual rent for occupied apartment homes and market rents for vacant apartment homes. The calculation of financial occupancy compares contractual rates for occupied apartment homes to estimated market rents for unoccupied apartment homes, and thus the calculation compares the gross value of all apartment homes excluding delinquency and concessions. For apartment home communities that are development properties in lease-up without stabilized occupancy figures, the Company believes the physical occupancy rate is the appropriate performance metric. While an apartment home community is in the lease-up phase, the Company’s primary motivation is to stabilize the property, which may entail the use of rent concessions and other incentives, and thus financial occupancy, which is based on contractual income, is not considered the best metric to quantify occupancy.

Previous wording

Same-Property Revenues increased by $12.7 million or 3.2% to $410.9 million for the second quarter of 2025 from $398.3 million for the second quarter of 2024. The increase was primarily attributable to an increase of 2.4% in average rental rates from $2,628 per apartment home for the second quarter of 2024 to $2,690 per apartment home for the second quarter of 2025. Additionally, 0.5% of the increase is attributable to a decrease in delinquencies for the second quarter of 2025 compared to the second quarter of 2024.

Current wording

Same-Property Revenues increased by $10.9 million or 2.7% to $412.7 million for the third quarter of 2025 from $401.8 million for the third quarter of 2024. The increase was primarily attributable to an increase of 2.5% in average rental rates from $2,653 per apartment home for the third quarter of 2024 to $2,718 per apartment home for the third quarter of 2025. Additionally, 0.2% of the increase is attributable to a decrease in delinquencies for the third quarter of 2025 compared to the third quarter of 2024.

Previous wording

Non-Same Property Revenues increased by $15.2 million or 36.6% to $56.7 million in the second quarter of 2025 from $41.5 million in the second quarter of 2024. The increase was primarily due to the acquisitions of The Plaza, One Hundred Grand, ROEN Menlo Park, Revere Campbell, The Parc at Pruneyard, and the consolidation of Artizan in 2025, as well as ARLO Mountain View and Beaumont, along with the Company’s acquisition of its joint venture partner’s interests in the BEX II portfolio, Patina at Midtown, and Century Towers in 2024. The increases were partially offset by the sale of Highridge and Essex Skyline in 2025 and Hillsdale Garden in 2024.

Current wording

Non-Same Property Revenues increased by $11.9 million or 25.6% to $58.2 million in the third quarter of 2025 from $46.4 million in the third quarter of 2024. The increase was primarily due to the acquisitions of The Plaza, One Hundred Grand, ROEN Menlo Park, Revere Campbell, The Parc at Pruneyard, and the consolidation of Artizan in 2025, as well as the acquisition of Beaumont along with the Company’s acquisition of its joint venture partner’s interests in the BEX II portfolio, and Century Towers in 2024. The increases were partially offset by the sale of Highridge, Essex Skyline, The Grand, and Fourth & U in 2025 and Hillsdale Garden in 2024.

Previous wording

Property operating expenses, excluding real estate taxes increased by $7.2 million or 9.1% to $86.4 million for the second quarter of 2025 compared to $79.2 million for the second quarter of 2024, primarily due to acquisitions in 2024 and 2025 identified in the Non-Same Property revenues section above and the increase of Same-Property operating expenses discussed below, partially offset by dispositions in 2024 and 2025. Same-Property operating expenses, excluding real estate taxes, increased by $5.0 million or 6.9% to $77.9 million in the second quarter of 2025 compared to $72.9 million in the second quarter of 2024, primarily due to increases of $2.3 million in utilities expenses resulting from increases in trash removal, water and sewer costs, $1.8 million in maintenance and repairs expenses due to increases in landscaping and general property maintenance expenses, and $1.3 million in personnel costs due to wage inflation.

Current wording

Property operating expenses, excluding real estate taxes increased by $5.6 million or 6.5% to $91.4 million for the third quarter of 2025 compared to $85.8 million for the third quarter of 2024, primarily due to acquisitions in 2024 and 2025 identified in the Non-Same Property revenues section above and the increase of Same-Property operating expenses discussed below, partially offset by dispositions in 2024 and 2025. Same-Property operating expenses, excluding real estate taxes, increased by $4.1 million or 5.3% to $82.1 million in the third quarter of 2025 compared to $78.0 million in the third quarter of 2024, primarily due to increases of $2.1 million in utilities expenses resulting from increases in trash removal, water and sewer costs and $1.4 million in personnel costs due to wage inflation.

Previous wording

Real estate taxes increased by $1.7 million or 3.6% to $49.0 million for the second quarter of 2025 compared to $47.3 million for the second quarter of 2024, primarily due to acquisitions in 2024 and 2025 identified in the Non-Same Property revenues section above and an estimated 2025 net aggregate increase in combined real estate taxes in California and the Seattle Metro region. Same-Property real estate taxes decreased by $1.6 million or 3.7% to $42.2 million for the second quarter of 2025 compared to $43.8 million for the second quarter of 2024 primarily due to decreases in both assessed values and tax rates in the Seattle Metro region.

Current wording

Real estate taxes increased by $3.0 million or 6.1% to $52.0 million for the third quarter of 2025 compared to $49.0 million for the third quarter of 2024, primarily due to acquisitions in 2024 and 2025 identified in the Non-Same Property revenues section above and an estimated 2025 net aggregate increase in combined real estate taxes with increases in California partially offset by decreases in the Seattle Metro region.

Previous wording

Depreciation and amortization expense increased by $5.9 million or 4.1% to $151.5 million for the second quarter of 2025 compared to $145.6 million for the second quarter of 2024, primarily due to acquisitions in 2025 and 2024 identified in the Non-Same Property revenues section above. The increase was partially offset by dispositions in 2025 and 2024.

Current wording

Depreciation and amortization expense increased by $5.1 million or 3.5% to $151.5 million for the third quarter of 2025 compared to $146.4 million for the third quarter of 2024, primarily due to acquisitions in 2025 and 2024 identified in the Non-Same Property revenues section above. The increase was partially offset by dispositions in 2025 and 2024.

Previous wording

Interest expense increased by $6.2 million or 10.5% to $65.3 million for the second quarter of 2025 compared to $59.1 million for the second quarter of 2024, primarily due to the upsizing in August 2024 of $550.0 million senior unsecured notes due April 2034, $95.0 million of assumed secured loans in October 2024, the issuance in February 2025 of $400.0 million senior unsecured notes due April 2035, borrowing on the new $300.0 million unsecured term loan in June 2025, and increased borrowing during the quarter on the two unsecured lines of credit and commercial paper program which resulted in an increase in interest expense of $13.5 million for the second quarter of 2025. These increases to interest expense were partially offset by various debt that was paid off, matured, or regular principal amortization during and after the second quarter of 2024, but primarily due to the payoff of $400.0 million of senior unsecured notes due May 1, 2024 and $500.0 million of senior unsecured notes due April 1, 2025, which resulted in a decrease in interest expense of $6.7 million for the second quarter of 2025. Additionally, there was an increase in capitalized interest of $0.6 million in the second quarter of 2025, due to an increase in development activity as compared to the same period in 2024.

Current wording

Interest expense increased by $5.5 million or 9.3% to $64.7 million for the third quarter of 2025 compared to $59.2 million for the third quarter of 2024, primarily due to the upsizing in August 2024 of $550.0 million senior unsecured notes due April 2034, the issuance in February 2025 of $400.0 million senior unsecured notes due April 2035, borrowing on the new $300.0 million unsecured term loan in June and September 2025, and increased borrowing during the quarter on the two unsecured lines of credit and commercial paper program which resulted in an increase in interest expense of $11.2 million for the third quarter of 2025. These increases to interest expense were partially offset by various debt that was paid off, matured, or regular principal amortization during and after the third quarter of 2024, but primarily due to the payoff of $500.0 million of senior unsecured notes due April 1, 2025, which resulted in a decrease in interest expense of $4.7 million for the third quarter of 2025. Additionally, there was an increase in capitalized interest of $1.0 million in the third quarter of 2025, due to an increase in development activity as compared to the same period in 2024.

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, 2025 and 2024) was 96.2% and 96.3% for the six months ended June 30, 2025 and 2024, respectively.

Current wording

The Company’s average financial occupancy for its stabilized apartment home communities or “Same-Property” (stabilized properties consolidated by the Company for the nine months ended September 30, 2025 and 2024) was 96.2% and 96.3% for the nine months ended September 30, 2025 and 2024, respectively.

Previous wording

The regional breakdown of the Company’s Same-Property portfolio for financial occupancy for the six months ended June 30, 2025 and 2024 was as follows:

Current wording

The regional breakdown of the Company’s Same-Property portfolio for financial occupancy for the nine months ended September 30, 2025 and 2024 was as follows:

Previous wording

Same-Property Revenues increased by $26.3 million or 3.3% to $817.9 million for the six months ended June 30, 2025 from $791.7 million for the six months ended June 30, 2024. The increase was primarily attributable to an increase of 2.3% in average rental rates from $2,619 per apartment home for the six months ended June 30, 2024 to $2,679 per apartment home for the six months ended June 30, 2025 and 0.7% of the increase was attributable to a decrease in delinquencies for the six months ended June 30, 2025 compared to six months ended June 30, 2024.

Current wording

Same-Property Revenues increased by $37.3 million or 3.1% for the nine months ended September 30, 2025 compared to the same period in 2024. The increase was primarily attributable to an increase of 2.3% in average rental rates from $2,631 per apartment home for the nine months ended September 30, 2024 to $2,692 per apartment home for the nine months ended September 30, 2025 and 0.6% of the increase was attributable to a decrease in delinquencies for the nine months ended September 30, 2025 compared to nine months ended September 30, 2024.

Previous wording

Non-Same Property Revenues increased by $39.4 million or 54.5% to $111.8 million for the six months ended June 30, 2025 from $72.3 million for the six months ended June 30, 2024. The increase was primarily due to the acquisitions of The Plaza, One Hundred Grand, ROEN Menlo Park and the consolidation of Artizan in 2025, as well as ARLO Mountain View, Maxwell Sunnyvale, and Beaumont, along with the Company’s acquisition of its joint venture partner’s interests in the BEXAEW and BEX II portfolios, Patina at Midtown, and Century Towers in 2024. The increases were partially offset by the sale of Highridge and Essex Skyline in 2025 and Hillsdale Garden in 2024.

Current wording

Non-Same Property Revenues increased by $51.3 million or 42.3% to $172.5 million for the nine months ended September 30, 2025 from $121.2 million for the nine months ended September 30, 2024. The increase was primarily due to the acquisitions of The Plaza, One Hundred Grand, ROEN Menlo Park, Revere Campbell, The Parc at Pruneyard, and the consolidation of Artizan in 2025, as well as ARLO Mountain View, Maxwell Sunnyvale, and Beaumont, along with the Company’s acquisition of its joint venture partner’s interests in the BEXAEW and BEX II portfolios, Patina at Midtown, and Century Towers in 2024. The increases were partially offset by the sale of Highridge, Essex Skyline, The Grand, and Fourth & U in 2025 and Hillsdale Garden in 2024.

Previous wording

Property operating expenses, excluding real estate taxes increased by $13.6 million or 8.6% to $172.4 million for the six months ended June 30, 2025 compared to $158.8 million for the six months ended June 30, 2024, primarily due to acquisitions in 2024 and 2025 identified in the Non-Same Property revenues section above and the increase of Same-Property operating expenses discussed below, partially offset by dispositions in 2024 and 2025. Same-Property operating expenses, excluding real estate taxes, increased by $7.3 million or 4.9% to $155.3 million for the six months ended June 30, 2025 compared to $148.0 million for the six months ended June 30, 2024, primarily due to increases of $4.1 million in utilities expenses resulting from increases in trash removal, water and sewer costs and $2.0 million in personnel costs due to wage inflation.

Current wording

Property operating expenses, excluding real estate taxes increased by $19.2 million or 7.8% to $263.8 million for the nine months ended September 30, 2025 compared to $244.6 million for the nine months ended September 30, 2024, primarily due to acquisitions in 2024 and 2025 identified in the Non-Same Property revenues section above and the increase of Same-Property operating expenses discussed below, partially offset by dispositions in 2024 and 2025. Same-Property operating expenses, excluding real estate taxes, increased by $11.4 million or 5.1% to $236.7 million for the nine months ended September 30, 2025 compared to $225.3 million for the nine months ended September 30, 2024, primarily due to increases of $6.1 million in utilities expenses resulting from increases in trash removal, water and sewer costs and $3.4 million in personnel costs due to wage inflation.

Previous wording

Real estate taxes increased by $7.4 million or 7.9% to $101.6 million for the six months ended June 30, 2025 compared to $94.2 million for the six months ended June 30, 2024, primarily due to acquisitions in 2024 and 2025 identified in the Non-Same Property revenues section above and an estimated 2025 net aggregate increase in combined real estate taxes in California and the Seattle Metro region. Same-Property real estate taxes increased by $0.6 million or 0.7% to $88.1 million for the six months ended June 30, 2025 compared to $87.5 million for the six months ended June 30, 2024, primarily due to estimated increases in real estate taxes in California, partially offset by decreases in both assessed values and tax rates in the Seattle Metro region for 2025.

Current wording

Real estate taxes increased by $10.5 million or 7.3% to $153.7 million for the nine months ended September 30, 2025 compared to $143.2 million for the nine months ended September 30, 2024, primarily due to acquisitions in 2024 and 2025 identified in the Non-Same Property revenues section above and an estimated 2025 net aggregate increase in combined real estate taxes with increases in California partially offset by decreases in the Seattle Metro region.

Previous wording

Depreciation and amortization expense increased by $17.5 million or 6.1% to $302.8 million for the six months ended June 30, 2025 compared to $285.3 million for the six months ended June 30, 2024, primarily due to acquisitions in 2025 and 2024 identified in the Non-Same Property revenues section above. The increase was partially offset by dispositions in 2025 and 2024.

Current wording

Depreciation and amortization expense increased by $22.5 million or 5.2% to $454.3 million for the nine months ended September 30, 2025 compared to $431.8 million for the nine months ended September 30, 2024, primarily due to acquisitions in 2025 and 2024 identified in the Non-Same Property revenues section above. The increase was partially offset by dispositions in 2025 and 2024.

Previous wording

Gain on sale of real estate and landof $237.2 million was attributable to the dispositions of Highridge and Essex Skyline in 2025.

Current wording

Gain on sale of real estate and landof $299.5 million was attributable to the dispositions of Highridge, Essex Skyline, The Grand and Fourth & U in 2025. There were no sales of real estate or land during the nine months ended September 30, 2024.

Previous wording

Interest expense increased by $12.9 million or 11.2% to $128.0 million for the six months ended June 30, 2025 compared to $115.1 million for the six months ended June 30, 2024, primarily due to the issuance in March 2024 and August 2024 of $550.0 million senior unsecured notes due April 2034, the $95.0 million of assumed secured loans in October 2024, the issuance in February 2025 of $400.0 million senior unsecured notes due April 2035, borrowing on the new $300.0 million unsecured term loan in June 2025, and increased borrowing on the two unsecured lines of credit and the commercial paper program which resulted in an increase in interest expense of $25.3 million for the six months ended June 30, 2025. 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, 2024, primarily due to the payoff of $400.0 million of senior unsecured notes due May 1, 2024 and $500.0 million of senior unsecured notes due April 1, 2025, which resulted in a decrease in interest expense of $11.1 million for the second quarter of 2025. Additionally, there was an increase in capitalized interest of $1.3 million in the six months ended June 30, 2025, due to an increase in development activity as compared to the same period in 2024.

Current wording

Interest expense increased by $18.4 million or 10.6% to $192.7 million for the nine months ended September 30, 2025 compared to $174.3 million for the nine months ended September 30, 2024, primarily due to the issuance in March 2024 and August 2024 of $550.0 million senior unsecured notes due April 2034, the issuance in February 2025 of $400.0 million senior unsecured notes due April 2035, borrowing on the new $300.0 million unsecured term loan in June and September 2025, and increased borrowing on the two unsecured lines of credit and the commercial paper program which resulted in an increase in interest expense of $34.5 million for the nine months ended September 30, 2025. 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, 2024, primarily due to the payoff of $400.0 million of senior unsecured notes due May 1, 2024 and $500.0 million of senior unsecured notes due April 1, 2025, which resulted in a decrease in interest expense of $13.8 million for the third quarter of 2025. Additionally, there was an increase in capitalized interest of $2.3 million in the nine months ended September 30, 2025, due to an increase in development activity as compared to the same period in 2024.

Previous wording

Interest and other income decreased by $55.7 million or 83.4% to $11.1 million in income for the six months ended June 30, 2025 compared to $66.8 million for the six months ended June 30, 2024, primarily due to a decrease of $42.6 million in gains from legal settlements. During the first quarter of 2024, the Company settled two lawsuits related to construction defects at two communities and received cash recoveries of $42.5 million. The Company determined that all uncertainties were resolved upon receipt of cash and recorded a gain. There were no material gains from legal settlements during the six months ended June 30, 2025.

Current wording

Interest and other income decreased by $61.3 million or 78.3% to $17.0 million in income for the nine months ended September 30, 2025 compared to $78.3 million for the nine months ended September 30, 2024, primarily due to a decrease of $43.1 million in gains from legal settlements. During the first quarter of 2024, the Company settled two lawsuits related to construction defects at two communities and received cash recoveries of $42.5 million. The Company determined that all uncertainties were resolved upon receipt of cash and recorded a gain. There were no material gains from legal settlements during the nine months ended September 30, 2025.

Previous wording

Equity income from co-investments increased by $0.2 million or 0.9% to $22.2 million for the six months ended June 30, 2025 compared to $22.0 million for the six months ended June 30, 2024, primarily due to decreases of $4.1 million in unrealized and realized gains from unconsolidated technology co-investments, $3.2 million in income from preferred equity investments due to fewer outstanding investments at June 30, 2025 compared to the same period in 2024, and $1.5 million of promote income recognized from the closing of the BEXAEW portfolio acquisition during the first quarter of 2024, with no current year equivalent. These decreases were offset by a $3.7 million impairment loss on one of the Company’s preferred equity investments incurred during the first quarter of 2024, with no current year equivalent, and reduced equity loss from the Company’s operating co-investments.

Current wording

Equity income from co-investments increased by $6.3 million or 18.7% to $40.0 million for the nine months ended September 30, 2025 compared to $33.7 million for the nine months ended September 30, 2024, primarily due to a $5.2 million gain recognized on sale of co-investment community in the third quarter of 2025. The increase was also attributable to a $3.7 million impairment loss on one of the Company’s preferred equity investments incurred during the first quarter of 2024 with no current year equivalent. These increases were offset by decreases of $6.5 million in income from preferred equity investments due to fewer outstanding investments at September 30, 2025 compared to the same period in 2024, $1.5 million of promote income recognized from the closing of the BEXAEW portfolio acquisition during the first quarter of 2024, with no current year equivalent, and reduced equity loss from the Company's operating co-investments.

Previous wording

As of June 30, 2025, the Company had $58.7 million of unrestricted cash and cash equivalents and $82.2 million in marketable securities, all of which were equity securities or available for sale debt 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, commercial paper or decreased investment in redevelopment activities to supplement operating cash flows. The timing, source and amounts of cash flows provided by or used in financing activities and 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, 2025, the Company had $66.0 million of unrestricted cash and cash equivalents and $84.1 million in marketable securities, all of which were equity securities or available for sale debt 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, commercial paper or decreased investment in redevelopment activities to supplement operating cash flows. The timing, source and amounts of cash flows provided by or used in financing activities and 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, 2025, the Company had two unsecured lines of credit aggregating $1.28 billion. As of June 30, 2025, 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 June 30, 2025. This facility was scheduled to mature in January 2029, with two six-month extensions, exercisable at the Company’s option. In July 2025, the Company amended its revolving credit facility increasing the maximum borrowing capacity to $1.5 billion and extended its maturity date to January 2030 with two 6-month extension options, exercisable at the Company's option. The Company may elect to increase the facility by up to an additional $1.0 billion, to an aggregate size of $2.5 billion, if the lenders permit. The underlying interest rate on this new line of credit facility is SOFR plus 0.775% which is based on a tiered rate structure tied to the Company's long-term unsecured credit ratings. As of June 30, 2025, there was no 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 June 30, 2025. This facility is scheduled to mature in July 2026.

Current wording

As of September 30, 2025, the Company had two unsecured lines of credit aggregating $1.58 billion. As of September 30, 2025, there was no outstanding balance on the Company’s $1.5 billion unsecured line of credit. The underlying interest rate is based on a tiered rate structure tied to the Company’s long-term unsecured credit ratings and was at Secured Overnight Financing Rate (“SOFR”) plus 0.775% as of September 30, 2025. This facility is scheduled to mature in January 2030, with two six-month extensions, exercisable at the Company’s option. The Company may elect to increase the facility by up to an additional $1.0 billion, to an aggregate size of $2.5 billion, if the lenders permit. As of September 30, 2025, there was no 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 long-term unsecured credit ratings and was at SOFR plus 0.775% as of September 30, 2025. This facility is scheduled to mature in July 2026.

Previous wording

In May 2025, the Operating Partnership established an unsecured commercial paper program (the “Commercial Paper Program”) to issue unsecured commercial paper notes with varying maturities up to 397 days from the date of issue (the “Notes”). Amounts available under the Commercial Paper Program may be borrowed, repaid and re-borrowed from time to time, with the maximum aggregate face or principal amount outstanding at any one time not exceeding $750.0 million. The Company’s unsecured line of credit facilities serve as a liquidity backstop and any issuances under the Commercial Paper Program reduce the available borrowing capacity. The Notes will rank equally in right of payment with all other senior unsecured senior obligations of the Operating Partnership and are unconditionally guaranteed by the Company. The Company expects to use the proceeds of the Notes for general corporate purposes and working capital purposes.

Current wording

In May 2025, the Operating Partnership established an unsecured commercial paper program (the “Commercial Paper Program”) to issue unsecured commercial paper notes with varying maturities up to 397 days from the date of issue (the “Notes”). Amounts available under the Commercial Paper Program may be borrowed, repaid and re-borrowed from time to time, with the maximum aggregate face or principal amount outstanding at any one time not exceeding $750.0 million. The Company’s unsecured line of credit facilities serve as a liquidity backstop and any issuances under the Commercial Paper Program reduce the available borrowing capacity. The Notes rank equally in right of payment with all other senior unsecured senior obligations of the Operating Partnership and are unconditionally guaranteed by the Company. The Company has used and expects to continue to use the proceeds from the Notes for general corporate purposes and working capital purposes.

Previous wording

In May 2025, the Operating Partnership obtained a $300.0 million unsecured term loan priced at Secured Overnight Financing Rate ("SOFR") plus 0.850% and scheduled to mature in May 2028, with two one-year extension options, exercisable at the option of the Operating Partnership. The loan includes a twelve-month delayed draw feature. The Operating Partnership may elect to increase this facility by up to an additional $300.0 million, to an aggregate size of $600.0 million, if the lenders permit. The Company has entered into floating-to-fixed interest rate swaps to fix the interest rate for $150.0 million of the loan to an all-in rate of 4.1% through April 2030.

Current wording

In May 2025, the Operating Partnership obtained a $300.0 million unsecured term loan priced at SOFR plus 0.850% and scheduled to mature in May 2028, with two one-year extension options, exercisable at the option of the Company. The loan includes a twelve-month delayed draw feature. The Company may elect to increase this facility by up to an additional $300.0 million, to an aggregate size of $600.0 million, if the lenders permit. The Company has entered into floating-to-fixed interest rate swaps to fix the interest rate for $247.5 million of the loan to an all-in rate of 4.1%.

Previous wording

During the six months ended June 30, 2025, the Company did not issue any shares of its common stock through the 2024 ATM Program.

Current wording

During the nine months ended September 30, 2025, the Company did not issue any shares of its common stock through the 2024 ATM Program.

Previous wording

During the six months ended June 30, 2025, the Company entered into forward sale agreements with certain financial institutions acting as forward purchasers under the 2024 ATM program with respect to 52,600 shares of common stock at an initial gross weighted average forward price of $314.06 per share, which is to be settled by September 2026.

Current wording

During the nine months ended September 30, 2025, the Company entered into forward sale agreements with certain financial institutions acting as forward purchasers under the 2024 ATM program with respect to 52,600 shares of common stock at an initial gross weighted average forward price of $314.06 per share, which is to be settled by September 2026.

Previous wording

In September 2022, the Company announced that its Board of Directors approved a new stock repurchase plan, without an expiration date, to allow the Company to acquire shares of common stock up to an aggregate value of $500.0 million. During the six months ended June 30, 2025, the Company did not repurchase any shares and as of June 30, 2025, the Company had $302.7 million of purchase authority remaining under its $500.0 million stock repurchase plan.

Current wording

In September 2022, the Company announced that its Board of Directors approved a new stock repurchase plan, without an expiration date, to allow the Company to acquire shares of common stock up to an aggregate value of $500.0 million. During the nine months ended September 30, 2025, the Company did not repurchase any shares and as of September 30, 2025, the Company had $302.7 million of purchase authority remaining under its $500.0 million stock repurchase plan.

Previous wording

As of June 30, 2025, the Company’s development pipeline was comprised of one consolidated development project of 543 apartment homes and various predevelopment projects, with total incurred costs of $105.6 million, and estimated remaining project costs of approximately $250.0 million, for total estimated project costs of $356.0 million.

Current wording

As of September 30, 2025, the Company’s development pipeline was comprised of one consolidated development project of 543 apartment homes and various predevelopment projects, with total incurred costs of $139.2 million, and estimated remaining project costs of approximately $218.0 million, for total estimated project costs of $357.2 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 7,694 apartment homes in operating communities with joint ventures and technology co-investments for a total book value of $360.9 million as of June 30, 2025.

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 7,483 apartment homes in operating communities with joint ventures and technology co-investments for a total book value of $311.4 million as of September 30, 2025.

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: the short and long-term impact of the January 2025 California wildfires, including in relation to regulation, insurance, tenant demand and other factors; 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, including from tariffs imposed by the current presidential administration and the threat of such tariffs; geopolitical tensions and regional conflicts, and the related impacts on macroeconomic conditions, including, among other things, interest rates and inflation; the terms of any refinancing may not be as favorable as the terms of existing indebtedness; the Company’s inability to maintain its investment grade credit rating with the rating agencies; the Company may be unsuccessful in the management of its relationships with its co-investment partners; the Company may fail to achieve its business objectives; time of actual completion and/or stabilization of development and redevelopment projects, including potential delays due to supply shortages related to tariffs and/or labor shortages related to deportations or threat of deportations; 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…

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, including from tariffs imposed by the current presidential administration and the threat of such tariffs; geopolitical tensions and regional conflicts, and the related impacts on macroeconomic conditions, including, among other things, interest rates and inflation; the terms of any refinancing may not be as favorable as the terms of existing indebtedness; the Company’s inability to maintain its investment grade credit rating with the rating agencies; the Company may be unsuccessful in the management of its relationships with its co-investment partners; the Company may fail to achieve its business objectives; time of actual completion and/or stabilization of development and redevelopment projects, including potential delays due to supply shortages related to tariffs and/or labor shortages related to deportations or threat of deportations; 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, including eviction moratoria; 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, 2024, and those risk factors and special considerations set forth in th…

Excerpt shortened here; the source contains the full paragraph.

Previous wording

(1)Includes political advocacy costs of $0.3 million and $0.4 million for the three and six months ended June 30, 2025, respectively, and $5.3 million and $7.2 million for the three and six months ended June 30, 2024, respectively.

Current wording

(1)Includes political advocacy costs of $1.6 million and $2.0 million for the three and nine months ended September 30, 2025, respectively, and $11.3 million and $18.5 million for the three and nine months ended September 30, 2024, respectively.

Previous wording

(2)There were no material gains from legal settlements during the three and six months ended June 30, 2025 and the three months ended June 30, 2024. During the six months ended June 30, 2024, the Company settled two lawsuits related to construction defects at two communities and received cash recoveries of $42.5 million. The Company determined that all uncertainties were resolved upon receipt of cash and recorded a gain which was excluded from Core FFO.

Current wording

(2)There were no material gains from legal settlements during the three and nine months ended September 30, 2025 and the three months ended September 30, 2024. During the nine months ended September 30, 2024, the Company settled two lawsuits related to construction defects at two communities and received cash recoveries of $42.5 million. The Company determined that all uncertainties were resolved upon receipt of cash and recorded a gain which was excluded from Core FFO.