ESSEX PROPERTY TRUST, INC. Annual Report, Year Ended Dec 31, 2022

Essex Property Trust, Inc. (ESS) reported its 2022 performance, showcasing resilience in its West Coast apartment portfolio. The company maintained strong occupancy rates, averaging 96% across its 62,147 apartment homes, strategically located in prime West Coast markets including Southern California, Northern California, and the Seattle metropolitan area. While facing inflationary pressures and rising interest rates, ESS demonstrated a robust revenue growth of 10.3% for its Same-Property portfolio, driven by a 7.2% increase in average rental rates and a reduction in cash concessions. The company's acquisition strategy remained active, with $215.9 million invested in new properties, complemented by a disposition of one community for $160.0 million, reflecting a strategic focus on optimizing its portfolio in supply-constrained markets. Financially, ESS reported a net income of $408.3 million and Funds From Operations (FFO) of $923.4 million. The company successfully managed its debt, securing a $300 million unsecured term loan and maintaining compliance with its credit facility covenants. The company also proactively managed its capital structure, repurchasing $189.7 million of its common stock and maintaining $900 million in available capacity under its at-the-market program. Looking ahead, ESS anticipates continued growth, projecting Same-Property revenue growth between 3.25% to 4.75% for 2023, alongside projected operating expense increases of 4.50% to 5.50%.