ESSEX PORTFOLIO LP
For the period ended Sep 30, 2026. Filed Oct 28, 2026.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Sep 30, 2026 · Filed Oct 28, 2026
ESS$272.18+0.3%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2026-06-30; filed 2026-07-30.
0000920522-26-000022
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2026-09-30; filed 2026-10-28.
0000920522-26-000030
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 87 previous paragraphs and 90 current paragraphs.
50 unchanged; 34 reworded; 6 added; 1 removed; 2 previous and 0 current paragraphs rearranged.
Tables are not compared: 7 previous and 7 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (6)
Current report
Impairment loss of $10.7 million for the third quarter of 2026 resulted from the Company’s disposition of Marina City Club and the associated write-down of the property’s carrying value to its fair value.
Current report
General and administrative expense decreased by $1.5 million or 8.3% to $16.6 million for the third quarter of 2026 compared to $18.1 million for the third quarter of 2025, primarily due to decreases of $1.2 million in political advocacy costs, and $1.2 million in legal costs as the Company fully resolved its case related to RealPage and another litigation matter during the second quarter of 2026. The decreases were partially offset by an increase of $1.3 million in personnel costs.
Current report
Comparison of the Nine Months Ended September 30, 2026 to the Nine Months Ended September 30, 2025
Current report
$0.9 million or 0.6% to $141.0 million for the nine months ended September 30, 2026 compared to $140.1 million for the nine months ended September 30, 2025, primarily due to an increase in assessed values.
Current report
Impairment loss of $10.7 million for the nine months ended September 30, 2026 resulted from the Company’s disposition of Marina City Club and the associated write-down of the property’s carrying value to its fair value.
Current report
In September 2026, the Company entered into a $275.0 million unsecured term loan priced at Secured Overnight Financing Rate (“SOFR”) plus 0.800%, which is based on a tiered rate structure tied to the Operating Partnership’s long-term unsecured credit ratings. The loan has a maturity date in September 2029, with two one-year extension options, exercisable at the Company’s option. The Company may elect to increase this facility by up to an additional $225.0 million, to an aggregate size of $500.0 million, provided that one or more banks (from the lenders or as otherwise permitted) voluntarily agree to provide the additional commitment.
Removed paragraphs (1)
Previous report
Comparison of the Six Months Ended June 30, 2026 to the Six Months Ended June 30, 2025
Reworded paragraphs (34)
Previous wording
As of June 30, 2026, the Company owned or had ownership interests in 258 operating apartment communities, comprising 62,881 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, 2026, the Company owned or had ownership interests in 255 operating apartment communities, comprising 62,436 apartment homes, excluding the Company’s ownership interests 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 average financial occupancy for the Company’s 2026 Same-Property portfolio (stabilized properties consolidated by the Company for the quarters ended June 30, 2026 and 2025) was 96.3% and 96.2% for the three months ended June 30, 2026 and 2025, 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 2026 Same-Property portfolio (stabilized properties consolidated by the Company for the quarters ended September 30, 2026 and 2025) was 96.3% and 96.0% for the three months ended September 30, 2026 and 2025, 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
2026 Same-Property Revenues increased by $11.7 million or 2.7% to $446.0 million for the second quarter of 2026 from $434.4 million for the second quarter of 2025. The increase was primarily attributable to an increase of 2.2% in average rental rates from $2,683 per apartment home for the second quarter of 2025 to $2,743 per apartment home for the second quarter of 2026.
Current wording
2026 Same-Property Revenues increased by $13.2 million or 3.0% to $449.9 million for the third quarter of 2026 from $436.7 million for the third quarter of 2025. The increase was primarily attributable to an increase of 2.5% in average rental rates from $2,709 per apartment home for the third quarter of 2025 to $2,777 per apartment home for the third quarter of 2026.
Previous wording
2026 Non-Same Property Revenues increased by $7.5 million or 22.4% to $40.7 million in the second quarter of 2026 from $33.2 million in the second quarter of 2025. The increase was primarily due to the acquisitions of Revere Campbell, The Parc at Pruneyard, ViO, 1250 Lakeside, and the consolidation of Artizan and Skylux on Wilshire (fka TENTEN Downtown) in 2025. The increases were partially offset by the sale of The Grand, and Fourth & U in 2025.
Current wording
2026 Non-Same Property Revenues increased by $6.2 million or 18.2% to $40.5 million in the third quarter of 2026 from $34.2 million in the third quarter of 2025. The increase was primarily due to the acquisitions of ViO and 1250 Lakeside, as well as the consolidation of Skylux on Wilshire (fka TENTEN Downtown) in 2025. The increases were partially offset by the dispositions of The Grand and Fourth & U in 2025 and Collins on Pine and Marina City Club in 2026.
Previous wording
Property operating expenses, excluding real estate taxes increased by $3.2 million or 3.7% to $89.6 million for the second quarter of 2026 compared to $86.4 million for the second quarter of 2025, primarily due to acquisitions in 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 2025. Same-Property operating expenses, excluding real estate taxes, increased by $2.1 million or 2.6% to $83.2 million in the second quarter of 2026 compared to $81.1 million in the second quarter of 2025, primarily due to an increase of $2.2 million in utilities expenses resulting from increases in trash removal, gas, water and sewer costs.
Current wording
Property operating expenses, excluding real estate taxes increased by $4.5 million or 4.9% to $95.9 million for the third quarter of 2026 compared to $91.4 million for the third quarter of 2025, primarily due to acquisitions in 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 2025. Same-Property operating expenses, excluding real estate taxes, increased by $2.9 million or 3.4% to $88.8 million in the third quarter of 2026 compared to $85.9 million in the third quarter of 2025, primarily due to increases of $1.6 million in maintenance and repairs expenses resulting from increases in landscaping and general property maintenance expenses, and $1.4 million in utilities expenses resulting from increases in trash removal, gas, water, and sewer costs.
Previous wording
Real estate taxes increased by $2.4 million or 4.9% to $51.4 million for the second quarter of 2026 compared to $49.0 million for the second quarter of 2025, primarily due to the acquisitions in 2025 identified in the Non-Same Property Revenues section above and increases in assessed values. Same-Property real estate taxes increased by $1.4 million or 3.3% to $46.0 million for the second quarter of 2026 compared to $44.6 million for the second quarter of 2025, primarily due to an increase in assessed values.
Current wording
Real estate taxes increased by $1.6 million or 3.1% to $53.6 million for the third quarter of 2026 compared to $52.0 million for the third quarter of 2025, primarily due to the acquisitions in 2025 identified in the Non-Same-Property Revenues section above and increases in assessed values. Same-Property real estate taxes increased by $0.8 million or 1.6% to $47.9 million for the third quarter of 2026 compared to $47.1 million for the third quarter of 2025, primarily due to an increase in assessed values.
Previous wording
Depreciation and amortization expense increased by $2.6 million or 1.7% to $154.1 million for the second quarter of 2026 compared to $151.5 million for the second quarter of 2025, primarily due to acquisitions in 2025 identified in the Non-Same Property Revenues section above, partially offset by dispositions in 2025.
Current wording
Depreciation and amortization expense increased by $1.1 million or 0.7% to $152.6 million for the third quarter of 2026 compared to $151.5 million for the third quarter of 2025, primarily due to acquisitions in 2025 identified in the Non-Same-Property Revenues section above, partially offset by dispositions in 2025 and 2026.
Previous wording
Gain on sale of real estate and landof $2.0 million for the second quarter of 2026 was due to the recognition of contingent consideration related to a previous sale of a land parcel in 2023. Gain on sale of real estate and land of $126.2 million for the second quarter of 2025 was attributable to the disposition of Essex Skyline.
Current wording
Gain on sale of real estate and landof $6.8 million for the third quarter of 2026 was attributable to the disposition of Collins on Pine. Gain on sale of real estate and land of $62.3 million for the third quarter of 2025 was attributable to the dispositions of The Grand and Fourth & U.
Previous wording
Interest expense increased by $1.5 million or 2.3% to $66.8 million for the second quarter of 2026 compared to $65.3 million for the second quarter of 2025, primarily due to the issuance in December 2025 of $350.0 million senior unsecured notes due February 2036 and borrowing on the $300.0 million unsecured term loan in 2025 which resulted in an increase in interest expense of $7.5 million for the second quarter of 2026. 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 2025, but primarily due to the payoff of $450.0 million of senior unsecured notes due April 2026, which resulted in a decrease in interest expense of $5.2 million for the second quarter of 2026. Additionally, there was an increase in capitalized interest of $0.8 million in the second quarter of 2026, due to an increase in development activity as compared to the same period in 2025.
Current wording
Interest expense increased by $0.1 million or 0.2% to $64.8 million for the third quarter of 2026 compared to $64.7 million for the third quarter of 2025, primarily due to the issuance in December 2025 of $350.0 million senior unsecured notes due February 2036 and borrowing on the $300.0 million unsecured term loan in 2025 which resulted in an increase in interest expense of $6.2 million for the third quarter of 2026. 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 2025, but primarily due to the payoff of $450.0 million of senior unsecured notes due April 2026, which resulted in a decrease in interest expense of $5.4 million for the third quarter of 2026. Additionally, there was an increase in capitalized interest of $0.7 million in the third quarter of 2026, due to an increase in development activity as compared to the same period in 2025.
Previous wording
Interest and other income increased by $2.3 million or 33.8% to $9.1 million for the second quarter of 2026 compared to $6.8 million for the second quarter of 2025, primarily due to a $3.2 million increase in net realized and unrealized gains on marketable securities from increases in the fair value of marketable securities partially offset by a decrease of $1.1 million in interest income due to repayment of notes receivable, and fewer short term investments during the second quarter of 2026 compared to the same period in 2025.
Current wording
Interest and other income decreased by $5.2 million or 88.1% to $0.7 million for the third quarter of 2026 compared to $5.9 million for the third quarter of 2025, primarily due to decreases of $2.2 million in net realized and unrealized gains from activities related to marketable securities and $3.1 million in interest income due to repayment of notes receivable and fewer short term investments during the third quarter of 2026 compared to the same period in 2025.
Previous wording
Equity income from co-investments increased by $4.7 million or 52.2% to $13.7 million for the second quarter of 2026 compared to $9.0 million for the second quarter of 2025, primarily due to a $9.2 million gain recognized on the sale of the co-investment community, Meridian at Midtown, partially offset by a decrease of $6.1 million in income from preferred equity investments due to a lower average outstanding investment balance during the second quarter of 2026 compared to the same period in 2025.
Current wording
Equity income from co-investments decreased by $8.6 million or 48.3% to $9.2 million for the third quarter of 2026 compared to $17.8 million for the third quarter of 2025, primarily due to decreases of $5.6 million in income from preferred equity investments due to a lower average outstanding investment balance during the third quarter of 2026 compared to the same period in 2025 and, $4.4 million in unrealized and realized gains from unconsolidated technology co-investments. These decreases were partially offset by a $1.0 million increase in equity income from the Company’s operating co-investments.
Previous wording
The Company’s average financial occupancy for its stabilized apartment home communities or “Same-Property” (stabilized properties consolidated by the Company for the six months ended June 30, 2026 and 2025) was 96.4% and 96.2% for the six months ended June 30, 2026 and 2025, 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, 2026 and 2025) was 96.4% and 96.2% for the nine months ended September 30, 2026 and 2025, respectively.
Previous wording
The regional breakdown of the Company’s Same-Property portfolio for financial occupancy for the six months ended June 30, 2026 and 2025 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, 2026 and 2025 is as follows:
Previous wording
2026 Same-Property Revenues increased by $24.2 million or 2.8% to $888.6 million for the six months ended June 30, 2026 from $864.4 million for the six months ended June 30, 2025. The increase was primarily attributable to an increase of 2.2% in average rental rates from $2,671 per apartment home for the six months ended June 30, 2025 to $2,731 per apartment home for the six months ended June 30, 2026.
Current wording
2026 Same-Property Revenues increased by $37.4 million or 2.9% to $1,337.4 million for the nine months ended September 30, 2026 from $1,300.0 million for the nine months ended September 30, 2025. The increase was primarily attributable to an increase of 2.3% in average rental rates from $2,684 per apartment home for the nine months ended September 30, 2025 to $2,747 per apartment home for the nine months ended September 30, 2026.
Previous wording
2026 Non-Same Property Revenues increased by $15.2 million or 23.3% to $80.6 million for the six months ended June 30, 2026 from $65.3 million for the six months ended June 30, 2025. The increase was primarily due to the acquisitions of The Plaza, One Hundred Grand, ROEN Menlo Park, Revere Campbell, The Parc at Pruneyard, ViO, 1250 Lakeside, and the consolidation of Artizan and Skylux on Wilshire (fka TENTEN Downtown) in 2025. The increases were partially offset by the dispositions of Highridge, Essex Skyline, The Grand, and Fourth & U in 2025.
Current wording
2026 Non-Same-Property Revenues increased by $21.5 million or 21.4% to $122.1 million for the nine months ended September 30, 2026 from $100.6 million for the nine months ended September 30, 2025. The increase was primarily due to the acquisitions of The Plaza, One Hundred Grand, ROEN Menlo Park, Revere Campbell, The Parc at Pruneyard, ViO, and 1250 Lakeside, as well as the consolidation of Artizan and Skylux on Wilshire (fka TENTEN Downtown) in 2025. The increases were partially offset by the dispositions of Highridge, Essex Skyline, The Grand, and Fourth & U in 2025 and Collins on Pine and Marina City Club in 2026.
Previous wording
Property operating expenses, excluding real estate taxes increased by $6.3 million or 3.7% to $178.7 million for the six months ended June 30, 2026 compared to $172.4 million for the six months ended June 30, 2025, primarily due to acquisitions in 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 2025. Same-Property operating expenses, excluding real estate taxes, increased by $3.6 million or 2.2% to $165.4 million for the six months ended June 30, 2026 compared to $161.8 million for the six months ended June 30, 2025, primarily due to an increase of $4.3 million in utilities expenses resulting from increases in trash removal, gas, water and sewer costs.
Current wording
Property operating expenses, excluding real estate taxes increased by $10.9 million or 4.1% to $274.7 million for the nine months ended September 30, 2026 compared to $263.8 million for the nine months ended September 30, 2025, primarily due to acquisitions in 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 2025. Same-Property operating expenses, excluding real estate taxes, increased by $6.5 million or 2.6% to $254.0 million for the nine months ended September 30, 2026 compared to $247.5 million for the nine months ended September 30, 2025, primarily due to increases of $5.7 million in utilities expenses resulting from increases in trash removal, gas, water, and sewer costs, and $1.0 million in maintenance and repairs resulting from landscaping and general property maintenance expenses.
Previous wording
Real estate taxes increased by $1.9 million or 1.9% to $103.5 million for the six months ended June 30, 2026 compared to $101.6 million for the six months ended June 30, 2025, primarily due to the acquisitions in 2025 identified in the Non-Same Property Revenues section above and increases in assessed values. Same-Property real estate taxes increased by $0.2 million or 0.2% to $93.3 million for the six months ended June 30, 2026 compared to $93.1 million for the six months ended June 30, 2025, primarily due to an increase in assessed values.
Current wording
Real estate taxes increased by $3.4 million or 2.2% to $157.1 million for the nine months ended September 30, 2026 compared to $153.7 million for the nine months ended September 30, 2025, primarily due to the acquisitions in 2025 identified in the Non-Same-Property Revenues section above and increases in assessed values. Same-Property real estate taxes increased by
Previous wording
Depreciation and amortization expense increased by $6.2 million or 2.0% to $309.0 million for the six months ended June 30, 2026 compared to $302.8 million for the six months ended June 30, 2025, primarily due to acquisitions in 2025 identified in the Non-Same Property Revenues section above, partially offset by dispositions in 2025.
Current wording
Depreciation and amortization expense increased by $7.2 million or 1.6% to $461.5 million for the nine months ended September 30, 2026 compared to $454.3 million for the nine months ended September 30, 2025, primarily due to acquisitions in 2025 identified in the Non-Same-Property Revenues section above, partially offset by dispositions in 2025 and 2026.
Previous wording
General and administrative expense increased by $59.8 million or 179.0% to $93.2 million for the six months ended June 30, 2026 compared to $33.4 million for the six months ended June 30, 2025, primarily due to legal settlement costs of $36.5 million to fully resolve its case related to RealPage and $19.3 million related to another litigation matter.
Current wording
General and administrative expense increased by $58.2 million or 113.0% to $109.7 million for the nine months ended September 30, 2026 compared to $51.5 million for the nine months ended September 30, 2025, primarily due to legal settlement costs of $36.5 million to fully resolve its case related to RealPage and $19.3 million related to another litigation matter during the second quarter of 2026.
Previous wording
Gain on sale of real estate and land of $2.0 million during the six months ended June 30, 2026 was due to the recognition of contingent consideration related to a previous sale of a land parcel in 2023. Gain on sale of real estate and land of $237.2 million during the six months ended June 30, 2025 was attributable to the dispositions of Highridge and Essex Skyline in 2025.
Current wording
Gain on sale of real estate and land of $8.8 million during the nine months ended September 30, 2026 was attributable to $6.8 million resulting from the disposition of Collins on Pine and $2.0 million from the recognition of contingent consideration related to a previous sale of a land parcel in 2023. Gain on sale of real estate and land of $299.5 million during the nine months ended September 30, 2025 was attributable to the dispositions of Highridge, Essex Skyline, The Grand, and Fourth & U in 2025.
Previous wording
Interest expense increased by $4.4 million or 3.4% to $132.4 million for the six months ended June 30, 2026 compared to $128.0 million for the six months ended June 30, 2025, primarily due to borrowing on the $300.0 million unsecured term loan during 2025, the issuance in February 2025 of $400 million senior unsecured notes due April 2035, and the issuance in December 2025 of $350.0 million senior unsecured notes due February 2036, which resulted in an increase in interest expense of $18.6 million for the six months ended June 30, 2026. 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, 2025, but primarily due to the payoff of the $500.0 million of senior unsecured notes due April 2025 and the $450.0 million of senior unsecured notes due April 2026, which resulted in a decrease in interest expense of $12.7 million for the six months ended June 30, 2026. Additionally, there was a $1.5 million increase in capitalized interest in the six months ended June 30, 2026, due to an increase in development activity as compared to the same period in 2025.
Current wording
Interest expense increased by $4.5 million or 2.3% to $197.2 million for the nine months ended September 30, 2026 compared to $192.7 million for the nine months ended September 30, 2025, primarily due to borrowing on the $300.0 million unsecured term loan during 2025, the issuance in February 2025 of $400 million senior unsecured notes due April 2035, and the issuance in December 2025 of $350.0 million senior unsecured notes due February 2036, which resulted in an increase in interest expense of $24.8 million for the nine months ended September 30, 2026. 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, 2025, but primarily due to the payoff of the $500.0 million of senior unsecured notes due April 2025 and the $450.0 million of senior unsecured notes due April 2026, which resulted in a decrease in interest expense of $18.2 million for the nine months ended September 30, 2026. Additionally, there was a $2.1 million increase in capitalized interest in the nine months ended September 30, 2026, due to an increase in development activity as compared to the same period in 2025.
Previous wording
Interest and other income decreased by $1.0 million or 9.0% to $10.1 million in income for the six months ended June 30, 2026 compared to $11.1 million for the six months ended June 30, 2025, primarily due to a decrease of $2.4 million due to repayment of notes receivable, and fewer short term investments during the six months ended June 30, 2026 compared to the same period in 2025. The decrease was partially offset by a $1.6 million increase in the fair value of marketable securities.
Current wording
Interest and other income decreased by $6.2 million or 36.5% to $10.8 million in income for the nine months ended September 30, 2026 compared to $17.0 million for the nine months ended September 30, 2025, primarily due to a decrease of $5.4 million as a result of repayment of notes receivable and fewer short term investments during the nine months ended September 30, 2026 compared to the same period in 2025.
Previous wording
Equity income from co-investments increased by $15.1 million or 68.0% to $37.3 million for the six months ended June 30, 2026 compared to $22.2 million for the six months ended June 30, 2025, primarily due to an increase of $14.6 million in unrealized and realized gains from unconsolidated technology co-investments as a result of change in fair value of investments held by the co-investments. The increase was also attributable to a $9.2 million gain recognized on the sale of the co-investment community, Meridian at Midtown. These increases were partially offset by a decrease of $12.3 million in income from preferred equity investments due to a lower average outstanding investment balance during the six months ended June 30, 2026 compared to the same period in 2025.
Current wording
Equity income from co-investments increased by $6.5 million or 16.3% to $46.5 million for the nine months ended September 30, 2026 compared to $40.0 million for the nine months ended September 30, 2025, primarily due to an increase of $10.1 million in realized and unrealized gains from unconsolidated technology co-investments as a result of change in fair value of investments held by the co-investments, and an increase of $9.8 million in gain on sale of co-investment communities. The Company sold two co-investment communities during the nine months ended September 30, 2026 resulting in $14.9 million in gains from the sale compared to $5.2 million gain from the sale of one co-investment community during the nine months ended September 30, 2025. These increases were partially offset by a decrease of $17.9 million in income from preferred equity investments due to a lower average outstanding investment balance during the nine months ended September 30, 2026 compared to the same period in 2025.
Previous wording
Loss on early retirement of debt of $0.8 million for the six months ended June 30, 2025 was due to the payoff of debt in conjunction with the disposition of Highridge in 2025 with no corresponding activity during the six months ended June 30, 2026.
Current wording
Loss on early retirement of debt of $0.8 million for the nine months ended September 30, 2025 was due to the payoff of debt in conjunction with the disposition of Highridge in 2025 with no corresponding activity during the nine months ended September 30, 2026.
Previous wording
Gain on remeasurement of co-investmentof $0.3 million for the six months ended June 30, 2025 resulted from the Company’s consolidation of its investment in Artizan in 2025 with no corresponding activity during the six months ended June 30, 2026.
Current wording
Gain on remeasurement of co-investmentof $0.3 million for the nine months ended September 30, 2025 resulted from the Company’s consolidation of its investment in Artizan in 2025 with no corresponding activity during the nine months ended September 30, 2026.
Previous wording
As of June 30, 2026, the Company had $58.3 million of unrestricted cash and cash equivalents and $92.2 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, 2026, the Company had $72.1 million of unrestricted cash and cash equivalents and $102.7 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, 2026, the Company had 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”). As of June 30, 2026, there was $345.0 million outstanding under the Commercial Paper Program. 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 $1.5 billion unsecured line of credit facility serves 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.
Current wording
As of September 30, 2026, the Company had 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”). As of September 30, 2026, there was no outstanding balance under the Commercial Paper Program. 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 $1.5 billion unsecured line of credit facility serves 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
During the three months ended March 31, 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 three months ended March 31, 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. In September 2026, the Company settled all of the outstanding forward sale agreements by issuing the 52,600 shares at a weighted average forward price of $311.13 per share, after commissions, which was inclusive of adjustments made to reflect the then-current overnight federal funds rate and the amount of dividends paid to holders of the Company’s common stock over the term of the forward sale agreement, for net proceeds of $16.4 million.
Previous wording
During the six months ended June 30, 2026, 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, 2026, excluding the above noted forward sale agreement settlements, the Company did not issue any shares of its common stock through the 2024 ATM Program. As of September 30, 2026, $883.5 million of shares of common stock remained available to be sold under the 2024 ATM Program.
Previous wording
In May 2026, 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. The plan supersedes the Company’s previous common stock repurchase plan announced in September 2022. During the six months ended June 30, 2026, the Company repurchased and retired 254,001 shares totaling $61.9 million, including commissions, at an average price per share of $243.76 under the previous plan. As of June 30, 2026, the Company had $500.0 million of purchase authority remaining under the current stock repurchase plan.
Current wording
In May 2026, 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. The plan supersedes the Company’s previous common stock repurchase plan announced in September 2022. During the nine months ended September 30, 2026, the Company repurchased and retired 254,001 shares totaling $61.9 million, including commissions, at an average price per share of $243.76 under the previous plan. As of September 30, 2026, the Company had $500.0 million of purchase authority remaining under the current stock repurchase plan.
Previous wording
As of June 30, 2026, 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 $184.1 million, and estimated remaining project costs of approximately $160.5 million, for total estimated project costs of $344.6 million.
Current wording
As of September 30, 2026, 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 $210.7 million, and estimated remaining project costs of approximately $135.3 million, for total estimated project costs of $346.0 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 7,265 apartment homes in operating communities with joint ventures and technology co-investments for a total book value of $311.8 million as of June 30, 2026.
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 6,997 apartment homes in operating communities with joint ventures and technology co-investments for a total book value of $305.7 million as of September 30, 2026.
Previous wording
The Company has various unconsolidated interests in certain joint ventures. The Company does not believe that these unconsolidated investments have a materially different impact on its liquidity, cash flows, capital resources, credit or market risk than its consolidated operations. See Note 4, Co-investments, in the Notes to Condensed Consolidated Financial Statements, for carrying values and combined summarized financial information of these unconsolidated investments.
Current wording
The Company has various unconsolidated interests in certain joint ventures. The Company does not believe that these unconsolidated investments have a materially different impact on its liquidity, cash flows, capital resources, or credit or market risk than its consolidated operations. See Note 4, Co-investments, in the Notes to Condensed Consolidated Financial Statements, for carrying values and combined summarized financial information of these unconsolidated investments.
Previous wording
(1)Includes political advocacy costs of $0.1 million and $1.7 million for the three and six months ended June 30, 2026, respectively, and $0.3 million and $0.4 million for the three and six months ended June 30, 2025, respectively. During the three months ended June 30, 2026, the Company reached a settlement to fully resolve its case related to RealPage, Inc., totaling $36.5 million and another litigation matter totaling $19.3 million.
Current wording
(1)Includes political advocacy costs of $0.3 million and $2.0 million for the three and nine months ended September 30, 2026, respectively, and $1.6 million and $2.0 million for the three and nine months ended September 30, 2025, respectively. During the nine months ended September 30, 2026, the Company reached a settlement to fully resolve its case related to RealPage, Inc., totaling $36.5 million and another litigation matter totaling $19.3 million.
Rearranged previous paragraphs (2)
Previous report — wording carried elsewhere
General and administrative expense increased by $55.9 million or 325.0% to $73.1 million for the second quarter of 2026 compared to $17.2 million for the second quarter of 2025, primarily due to legal settlement costs of $36.5 million to fully resolve its case related to RealPage and $19.3 million related to another litigation matter.
Previous report — wording carried elsewhere
As of June 30, 2026, $900.0 million of shares of common stock remained available to be sold under the 2024 ATM Program, pending the settlement of outstanding forward sale agreements.