ESSEX PORTFOLIO LP

Financial occupancy is defined as the percentage resulting from dividing actual rental income by total scheduled rental income. 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. When calculating actual rents for occupied apartment homes and market rents for vacant apartment homes, delinquencies and concessions are not taken into account. The Company believes that financial occupancy is a meaningful measure of occupancy because it considers the value of each vacant unit at its estimated market rate. Financial occupancy may not completely reflect short-term trends in physical occupancy and financial occupancy rates, and the Company’s calculation of financial occupancy may not be comparable to financial occupancy as disclosed by other REITs. Market rates are determined using the recently signed effective rates on new leases at the property and are used as the starting point in the determination of the market rates of vacant apartment homes. The Company may increase or decrease these rates based on a variety of factors, including overall supply and demand for housing, concentration of new apartment deliveries within the same submarket which can cause periodic disruption due to greater rental concessions to increase leasing velocity, and rental affordability.

For 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 a 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.

Communities

The Company’s communities are primarily urban and suburban high density wood frame communities comprising of two to seven stories above grade construction situated on 1-20 acres of land with densities of approximately 10 to 80+ units per acre. As of December 31, 2025, the Company’s communities include 105 garden-style, 146 mid-rise, and 8 high-rise communities. Garden-style communities are generally defined as on-grade properties with two and/or three-story buildings with no structured parking while mid-rise communities are generally defined as properties with three to seven story buildings and some structured parking. High-rise communities are typically defined as properties with buildings that are greater than seven stories, are steel or concrete framed, and frequently have structured parking. The communities have an average of approximately 244 apartment homes, with a mix of studio, one-, two- and some three-bedroom apartment homes. A wide variety of amenities are available at the Company’s communities, including covered parking, fireplaces, swimming pools, clubhouses with fitness facilities, playground areas and dog parks.

The Company hires, trains and supervises on-site service and maintenance personnel. The Company believes that the following primary factors enhance the Company’s ability to retain tenants:

•located near employment centers;

•attractive communities that are well maintained; and

•proactive customer service.

Commercial Buildings

The Company owns two operating commercial buildings (totaling approximately 185,000 square feet) located in California and Washington, of which the Company occupied an aggregate of approximately 50,000 square feet as of December 31, 2025. Furthermore, as of December 31, 2025, the commercial buildings’ physical occupancy rate was 85% consisting of six tenants, including the Company.

Operating Portfolio

The table below describes the Company’s operating portfolio as of December 31, 2025 (See Note 8, “Mortgage Notes Payable” to the Company’s consolidated financial statements included in Part IV, Item 15 of this Annual Report on Form 10-K for more information about the Company’s secured mortgage debt and Schedule III thereto for a list of secured mortgage loans related to the Company’s portfolio.):

Apartment · Year · Year

Communities (1) · Location · Type · Homes · Built · Acquired (2) · Occupancy(3)

Southern California

Alpine Village · Alpine, CA · Garden · 301 · 1971 · 2002 · 96%

Park Viridian · Anaheim, CA · Mid-rise · 326 · 2008 · 2014 · 95%

The Barkley (4)(5) · Anaheim, CA · Garden · 161 · 1984 · 2000 · 96%

Bonita Cedars · Bonita, CA · Garden · 120 · 1983 · 2002 · 96%

The Village at Toluca Lake · Burbank, CA · Mid-rise · 146 · 1974 · 2017 · 97%

Camarillo Oaks · Camarillo, CA · Garden · 564 · 1985 · 1996 · 96%

Camino Ruiz Square · Camarillo, CA · Garden · 160 · 1990 · 2006 · 97%

Hacienda at Camarillo Oaks · Camarillo, CA · Garden · 73 · 1984 · 2023 · 94%

Pinnacle at Otay Ranch I & II · Chula Vista, CA · Mid-rise · 364 · 2001 · 2014 · 96%

Mesa Village · Clairemont, CA · Garden · 133 · 1963 · 2002 · 96%

Villa Siena · Costa Mesa, CA · Garden · 274 · 1974 · 2014 · 96%

Emerald Pointe · Diamond Bar, CA · Garden · 160 · 1989 · 2014 · 97%

Regency at Encino · Encino, CA · Mid-rise · 75 · 1989 · 2009 · 96%

The Havens · Fountain Valley, CA · Garden · 440 · 1969 · 2014 · 96%

• Real estate investments are relatively illiquid and, therefore, the Company’s ability to vary its portfolio promptly in response to changes in economic or other conditions may be limited.
• The Company’s portfolio may have environmental liabilities.
• The Company may incur general uninsured losses or may experience market conditions that impact the procurement of certain insurance policies.
• Climate change may materially adversely affect our business.
• Accidental death or severe injuries at our communities due to wildfires, floods, other disasters or hazards could materially adversely affect our business and results of operations.
• Adverse changes in laws may materially adversely affect the Company’s liabilities and/or operating costs relating to its properties and its operations.
• Failure to succeed in new markets or with new community operations formats may limit the Company’s growth, and additionally, the Company’s commercial leases could adversely affect us.
• Our business and reputation depend on our ability to continue providing high quality housing and consistent operation of our communities, the failure of which could materially adversely affect our business, financial condition and results of operations.
• The Company’s real estate assets may be subject to impairment charges.
• We are subject to laws and regulations relating to the handling of personal information and we rely on information technology to sustain our operations. Any material failure, inadequacy, interruption or breach of the Company’s privacy or information systems, or those of our vendors or other third parties, could materially adversely affect the Company’s business, financial condition and results of operations.
• Reliance on third party software providers to host systems is critical to our operations and to provide the Company with data, and regulation of those providers and practices may impact operational capabilities.
• We may from time to time be subject to litigation or regulatory investigation, which could have a material adverse effect on our business, financial condition and results of operations.
• Risks Related to Our Indebtedness and Financings
• Capital and credit market conditions and volatility, including significant fluctuations in the price of the Company’s stock, may affect the Company’s access to sources of capital and/or the cost of capital, which could materially adversely affect the Company’s business, stock price, results of operations, cash flows and financial condition.
• Debt financing has inherent risks.
• Compliance requirements of tax-exempt financing and below market rent requirements may limit income from certain communities.
• The indentures governing our notes and other financing arrangements contain restrictive covenants that limit our operating flexibility and restrict our ability to take specific actions, even if we believe such actions to be in our best interests, including restrictions on our ability to consummate a merger, consolidation or sale of all or substantially all of our assets; and incur additional secured and unsecured indebtedness.
• Interest rate hedging arrangements may result in losses.
• A downgrade in the Company’s investment grade credit rating could materially adversely affect its business and financial condition.
• Changes in the Company’s financing policy may lead to higher levels of indebtedness.
• If the Company or any of its subsidiaries defaults on an obligation to repay outstanding indebtedness when due, the default could trigger a cross-default or cross-acceleration under other indebtedness.
• The Company could be negatively impacted by the condition of Fannie Mae or Freddie Mac and by changes in government support for multifamily housing.
• Risks Related to Personnel
• The Company depends on its personnel, whose continued service is not guaranteed.
• The Company’s Chairman is involved in other real estate activities and investments, which may lead to conflicts of interest.
• The influence of executive officers, directors, and significant stockholders may be detrimental to holders of common stock.
• Our related party guidelines may not adequately address all of the issues that may arise with respect to related party transactions.
• Employee theft or fraud could result in loss.
• Risks Related to Taxes, Our Status as a REIT and Our Organizational Structure
• Failure to generate sufficient rental revenue or other liquidity needs and impacts of economic conditions could limit cash flow available for dividend distributions, as well as the form and timing of such distributions, to Essex’s stockholders or the Operating Partnership’s unitholders.
• Essex may choose to pay dividends in its own stock, which could materially adversely affect its stockholders.
• The Company’s future issuances of common stock, preferred stock or convertible debt securities could be dilutive to current stockholders and materially adversely affect the market price of the Company’s common stock.
• The Maryland Business Combination Act may delay, defer or prevent a transaction or change in control of the Company that might involve a premium price for the Company’s stock or otherwise be in the best interest of our stockholders.
• Certain provisions contained in the Operating Partnership agreement, Charter and Bylaws, and certain provisions of the Maryland General Corporation Law could delay, defer or prevent a change in control.
• Stockholders have limited control over changes in our policies and operations.
• Complying with REIT requirements may affect our profitability and may force us to liquidate or forgo otherwise attractive investments.
• Legislative or other actions affecting REITs could have a material adverse effect on the Company or its stockholders.
• Failure of one or more of the Company’s subsidiaries to qualify as a REIT could materially adversely affect the Company’s ability to qualify as a REIT.
• The tax imposed on REITs engaging in “prohibited transactions” may limit the Company’s ability to engage in transactions which would be treated as sales for federal income tax purposes.
• Dividends payable by REITs may be taxed at higher rates than dividends of non-REIT corporations, which could reduce the net cash received by stockholders and may be detrimental to the Company’s ability to raise additional funds through any
• We may face risks in connection with Section 1031 exchanges.
• Partnership tax audit rules could have a material adverse effect on us.
• General Risks
• The soundness of financial institutions could materially adversely affect us.
• The price per share of the Company’s stock may fluctuate significantly.
• Our score by proxy advisory firms or other corporate governance consultants advising institutional investors could have an adverse effect on our reputation, the perception of our corporate governance, and thereby materially adversely affect the market price of our common stock.
• Corporate responsibility, specifically related to sustainability factors, may impose additional costs and expose us to new risks or litigation.
• We could face adverse consequences as a result of M&A activity in the REIT sector and actions of activist investors.
• Any material weaknesses identified in the Company’s internal control over financial reporting could have an adverse effect on the Company’s stock price.
• Increased public, media, regulatory and governmental scrutiny of the housing industry could materially adversely affect our business, reputation, and results of operations.