Essex Property Trust : November 2022 Investor Presentation

INVESTOR PRESENTATION

NOVEMBER 2022

TABLE OF CONTENTS

500 Folsom | San Francisco, CA

E X E C U T I V E S U M M A R Y

T R A C K R E C O R D & C O M P A N Y H I G H L I G H T S

O P E R A T I N G U P D A T E & G U I D A N C E

W E S T C O A S T D E M A N D F U N D A M E N T A L S

W E S T C O A S T S U P P L Y F U N D A M E N T A L S

I N N O V A T I O N & B A L A N C E S H E E T

E S G H I G H L I G H T S

D E F I N I T I O N S & R E C O N C I L I A T I O N S

• We are Essex-the proven leader in West Coast apartments. We are a fully integrated real estate investment trust (REIT) that acquires, develops, redevelops, and manages multifamily apartment communities located in supply-constrained markets. With a commitment to the vibrant coastal economies in which we operate, we continually push to innovate, improve, and add value to the lives of our residents, associates, and shareholders.
• • Michael J. Schall, President & CEO

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EXECUTIVE SUMMARY

Aqua at Marina Del Rey

Marina Del Rey CA

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EXECUTIVE SUMMARY - KEY HIGHLIGHTS

OPERATIONS UPDATE

• Net effective rents remained strong throughout the third quarter compared to one year ago, but have moderated in October due to a confluence of seasonality, a uniquely difficult comparison period in 2021, and pockets of demand softness in Seattle and the Bay Area (Page 14)
• September loss-to-lease of 6.7% implies approximately 3.5% of "Earn-in" revenue growth in 2023 (Page 14)
• Essex's preliminary 2023 outlook forecasts modest rent growth of 2.0% and is built on consensus estimates of leading economists for a mild recession and job losses across the nation. Essex markets are positioned favorably relative to the U.S. with minimal new supply and better expected job growth than the national average (Page 15)
• The Company's Asset Collections operating model has driven efficiencies and created opportunities to enhance future revenue growth (Page 26)

DEMAND UPDATE

• Job growth in Essex markets continued to outpace the U.S. in September, as statewide unemployment claims for California and Washington remain below the rest of the nation in 2022 (Page 18)
• Google recently broke ground on its Downtown West campus which is expected to nearly double the current office space in Downtown San Jose at its completion. The project will be delivered in phases over the next 10 years and will create approximately 25,000 new jobs to the San Jose area (Page 19)
• Higher interest rates have made it increasingly difficult for renters to transition to homeownership in Essex markets; it is now 2.3x more expensive to buy versus rent in Essex markets (Page 20)

SUPPLY UPDATE

• Housing permits in Essex markets are well below long-term averages and compare favorably to the rest of the country (Page 22 & 23)
• Essex needs minimal job growth in 2023 to absorb expected 2023 supply deliveries (Page 24)

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Agora

Walnut Creek, CA

TRACK RECORD & COMPANY HIGHLIGHTS

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