ESSEX PROPERTY TRUST, INC.ESS
ESSEX PROPERTY TRUST, INC. Segments Disclosure
Segment Information
The Company’s segment disclosures present the measure used by the chief operating decision maker (“CODM”) for purposes of assessing each segment’s performance. The Company’s CODM is a group comprised of its Chief Executive Officer, Chief Financial Officer, Chief Administrative Officer, and Chief Investment Officer, who use net operating income (“NOI”) to assess the performance of the business for the Company’s reportable operating segments. NOI represents total property revenues less direct property operating expenses.
The CODM evaluates the Company’s operating performance geographically. The Company defines its reportable operating segments as the three geographical regions in which its communities are located: Southern California, Northern California and Seattle Metro.
Excluded from segment revenues and NOI are management and other fees from affiliates and interest and other income (loss). Other real estate assets revenues, property operating expenses, including real estate taxes, and NOI included in the following schedule consist of revenues generated from retail space, commercial properties, held for sale properties, disposition properties and straight-line adjustments for concessions. Executive management does not evaluate such operating performance geographically. Other non-segment assets include items such as real estate under development, co-investments, real estate held for sale, cash and cash equivalents, marketable securities, notes and other receivables, and prepaid expenses and other assets.
The revenues and NOI for each of the reportable operating segments are summarized as follows for the years ended December 31, 2025, 2024 and 2023 ($ in thousands):
| Year Ended December 31, | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| 2025 | 2024 | 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||
| Rental and other property revenue | Property operating expenses, including real estate taxes | Net operating income | Rental and other property revenue | Property operating expenses, including real estate taxes | Net operating income | Rental and other property revenue | Property operating expenses, including real estate taxes | Net operating income | |||||||||||||||||||||||||||||||||||||||||||||
| Southern California | $ | 763,124 | $ | 225,015 | $ | 538,109 | $ | 714,975 | $ | 208,380 | $ | 506,595 | $ | 654,422 | $ | 190,897 | $ | 463,525 | |||||||||||||||||||||||||||||||||||
| Northern California | 760,821 | 235,979 | 524,842 | 663,825 | 202,059 | 461,766 | 628,880 | 188,041 | 440,839 | ||||||||||||||||||||||||||||||||||||||||||||
| Seattle Metro | 313,410 | 90,967 | 222,443 | 295,002 | 87,558 | 207,444 | 282,092 | 81,334 | 200,758 | ||||||||||||||||||||||||||||||||||||||||||||
| Other real estate assets | 40,609 | 7,025 | 33,584 | 90,383 | 23,539 | 66,844 | 92,870 | 27,486 | 65,384 | ||||||||||||||||||||||||||||||||||||||||||||
| Total | $ | 1,877,964 | $ | 558,986 | $ | 1,318,978 | $ | 1,764,185 | $ | 521,536 | $ | 1,242,649 | $ | 1,658,264 | $ | 487,758 | $ | 1,170,506 | |||||||||||||||||||||||||||||||||||
| Total net operating income | $ | 1,318,978 | $ | 1,242,649 | $ | 1,170,506 | |||||||||||||||||||||||||||||||||||||||||||||||
| Management and other fees from affiliates | 9,381 | 10,265 | 11,131 | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Corporate-level property management expenses | (49,052) | (46,208) | (43,593) | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Depreciation and amortization | (607,542) | (580,220) | (548,438) | ||||||||||||||||||||||||||||||||||||||||||||||||||
| General and administrative | (71,948) | (98,902) | (63,474) | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Expensed acquisition and investment related costs | (25) | (72) | (595) | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Casualty loss | — | — | (433) | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Gain on sale of real estate and land | 299,524 | 175,583 | 59,238 | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Interest expense | (258,404) | (235,529) | (212,905) | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Total return swap income | 4,729 | 3,099 | 3,148 | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Interest and other income | 20,004 | 80,951 | 46,259 | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Equity income from co-investments | 35,464 | 48,206 | 10,561 | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Tax benefit (expense) on unconsolidated co-investments | 2,096 | 929 | (697) | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Loss on early retirement of debt | (762) | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Gain on remeasurement of co-investment | 330 | 210,555 | — | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Net income | $ | 702,773 | $ | 811,306 | $ | 430,708 | |||||||||||||||||||||||||||||||||||||||||||||||
Total assets for each of the reportable operating segments as of December 31, 2025 and 2024 are summarized as follows ($ in thousands):
(1) Includes retail space, commercial properties, held for sale properties and disposition properties.| December 31, | |||||||||||
| 2025 | 2024 | ||||||||||
| Assets: | |||||||||||
| Southern California | $ | 4,194,554 | $ | 4,162,462 | |||||||
| Northern California | 6,136,977 | 5,414,689 | |||||||||
| Seattle Metro | 1,412,405 | 1,460,865 | |||||||||
Other real estate assets (1) | 160,646 | 400,884 | |||||||||
| Net reportable operating segments - real estate assets | 11,904,582 | 11,438,900 | |||||||||
| Real estate under development | 157,122 | 52,682 | |||||||||
| Co-investments | 630,550 | 935,014 | |||||||||
| Cash and cash equivalents, including restricted cash | 85,586 | 75,846 | |||||||||
| Marketable securities | 98,070 | 69,794 | |||||||||
| Notes and other receivables | 141,591 | 206,706 | |||||||||
| Operating lease right-of-use assets | 50,833 | 51,556 | |||||||||
| Prepaid expenses and other assets | 90,675 | 96,861 | |||||||||
| Total assets | $ | 13,159,009 | $ | 12,927,359 | |||||||
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 20, 2026 | Showing above |
| 2024 | Feb 21, 2025 | |
| 2023 | Feb 23, 2024 | |
| 2022 | Feb 23, 2023 | |
| 2021 | Feb 25, 2022 | |
| 2020 | Feb 19, 2021 | |
| 2019 | Feb 20, 2020 | |
| 2018 | Feb 21, 2019 | |
| 2017 | Feb 22, 2018 | |
| 2016 | Feb 24, 2017 | |
| 2015 | Feb 26, 2016 | |
About Segments Disclosures
Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.
Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.