UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K (MARK ONE) ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2025 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ___________ to _____________ 001-13106 (Essex Property Trust, Inc.) 333-44467-01 (Essex Portfolio, L.P.) (Commission File Number) ESSEX PROPERTY TRUST, INC. ESSEX ...

Core Insights - ESS Tech, Inc. has appointed Randall Selesky as Chief Commercial Officer to enhance global growth and commercial execution in long-duration energy storage solutions [1] - Selesky brings over 20 years of experience in the energy sector, including significant expertise in the battery storage industry [1] - The appointment is part of ESS's leadership transformation aimed at strengthening governance, execution, and financial discipline [1] Company Overview - ESS Tech, Inc. is a leading manufacturer of long-duration iron flow energy storage solutions, established in 2011 [1] - The company focuses on accelerating decarbonization through sustainable energy storage using iron, salt, and water [1] - ESS aims to provide flexible storage solutions that enhance energy security and reliability while maximizing the value of excess energy [1] Leadership and Strategy - Randall Selesky will lead global commercial strategy, sales, marketing, product management, and business development initiatives [1] - His previous role as Chief Commercial Officer at VoltStorage involved shaping commercial strategy and guiding market expansion [1] - CEO Drew Buckley emphasized Selesky's proven ability to build high-performing teams and convert market demand into revenue [1] Market Context - The demand for long-duration energy storage is increasing, driven by the need for improved grid reliability and deeper renewable integration [1] - Selesky's expertise is expected to position ESS to expand its market presence and meet the growing needs of the energy transition [1] - The company is focused on delivering high-performing, market-ready solutions to customers seeking reliable long-duration storage [1]

Financial Data and Key Metrics Changes - The company achieved same-property revenue growth of 3.3% for 2025, which was at the high end of guidance and 30 basis points ahead of original projections [10][12] - FFO per share growth is expected to be flat year-over-year for 2026, reflecting a conservative modeling approach due to redemptions within the Structured Finance portfolio [13][14] - Same-property NOI growth is forecasted to increase by 2.1% at the midpoint for 2026 [12] Business Line Data and Key Metrics Changes - The fourth quarter saw a blended lease rate growth of 1.9% and occupancy increased by 20 basis points sequentially to 96.3% [4][5] - Los Angeles showed the best occupancy improvement, increasing 70 basis points sequentially, indicating progress towards stabilization [5][28] Market Data and Key Metrics Changes - Northern California outperformed expectations due to technology sector expansion, favorable migration trends, and limited new housing supply [4][6] - Rent growth across most Essex markets outperformed the U.S. average, demonstrating the advantage of limited housing supply even in a soft employment environment [4][6] Company Strategy and Development Direction - The company anticipates steady West Coast fundamentals to deliver solid blended rent growth above the U.S. average in 2026, led by Northern California [6][7] - The investment market remains healthy with $12.6 billion of non-portfolio institutional multifamily transactions in 2025, a 43% increase compared to 2024 [8] Management's Comments on Operating Environment and Future Outlook - The management noted that job growth is moderating, and major employers are cautious about hiring, which could temper near-term demand acceleration [6][7] - There is optimism regarding Northern California's recovery, supported by increased VC funding and positive office absorption [20][22] Other Important Information - The company is well-positioned from a funding perspective, with free cash flow covering dividends and planned capital expenditures [14][15] - The structured finance book is expected to stabilize, with a focus on new opportunities to backfill redemptions [60] Q&A Session Summary Question: Thoughts on demand for assets in Northern California and Seattle - Management acknowledged that Northern California is recovering, with job openings at top tech companies showing stability, while Seattle faced softness in the fourth quarter [18][21] Question: Expectations for new and renewal lease blends - The company expects new leases to grow flat to 2% and renewals around 3%-4% for the year [24] Question: Performance expectations for Los Angeles - Management indicated steady improvement in occupancy, with hopes to reach stabilization at 95% soon [28][29] Question: Cap rates and investment opportunities in Southern California - The company noted a healthy environment with transactions occurring in the 4.5-4.75 cap rate range, and they will evaluate opportunities to create value [35][39] Question: Legislative impacts on rental housing - Management reported no significant impact from immigration policies, with trends returning to pre-COVID levels [55][100] Question: Changes in move-in pace from outside core markets - An increase in immigration trends was noted, particularly in the northern region, driven by return-to-office policies [100]

Financial Data and Key Metrics Changes - The company achieved same-property revenue growth of 3.3% for 2025, at the high end of guidance and 30 basis points ahead of original projections [10] - FFO per share growth is expected to be flat year-over-year for 2026, reflecting a conservative modeling approach [13][14] - Same-property NOI growth is forecasted to increase by 2.1% at the midpoint for 2026 [12] Business Line Data and Key Metrics Changes - Blended lease rate growth was 1.9% in the fourth quarter, with occupancy increasing by 20 basis points to 96.3% [4] - Los Angeles showed the best occupancy improvement, increasing by 70 basis points sequentially [5] - The company anticipates blended lease rate growth of 2.5% at the midpoint for 2026, with new leases expected to range from flat to 2% and renewals around 3%-4% [24] Market Data and Key Metrics Changes - Northern California outperformed expectations due to technology sector expansion and favorable migration trends [4] - Rent growth across most Essex markets outperformed the U.S. average, demonstrating the advantage of limited housing supply [4] - Seattle experienced soft performance in the fourth quarter, with several corporate layoffs impacting expectations [21] Company Strategy and Development Direction - The company plans to continue evaluating opportunities and allocate capital with a focus on creating shareholder value [9] - The investment strategy emphasizes FFO per share and NAV per share accretion, targeting investments with higher growth profiles [35] - The company is cautious about new developments, indicating that significant reductions in land prices or substantial rent growth are needed for new projects to be economically viable [49] Management's Comments on Operating Environment and Future Outlook - The management noted a slow but stable economic growth outlook for the U.S. in 2026, with job growth expected to remain consistent [6] - There is a cautious approach to hiring among major employers, which could temper near-term demand acceleration [7] - The company sees potential for improvement in Northern California due to increased venture capital funding and positive office absorption trends [20] Other Important Information - The company reported $12.6 billion in non-portfolio institutional multifamily transactions in 2025, a 43% increase from 2024 [8] - The company has over $1.7 billion in liquidity and is well-positioned from a funding perspective [15] - Advocacy costs were $2 million in 2025, with expectations for minimal advocacy costs in 2026 [87] Q&A Session Summary Question: Thoughts on demand for assets in Northern California and Seattle - Management noted that Northern California is showing signs of recovery, with job openings at tech companies stabilizing, while Seattle's performance was soft due to layoffs [18][21] Question: Expectations for new and renewal lease blends - Management expects new leases to be flat to 2% and renewals around 3%-4% for the year [24] Question: Performance expectations for Los Angeles - Management indicated steady improvement in occupancy, with economic occupancy at 94.7%, close to stabilization [28] Question: Impact of immigration on demand - Management has not seen a direct impact from immigration but noted an increase in immigration trends in the northern region [101] Question: Legislative impacts on rental housing - Management is monitoring policy changes but has not seen significant adverse impacts from recent legislative trends [60][96]

Financial Data and Key Metrics Changes - In 2025, the company achieved same-store revenue growth of 3.3%, which was at the high end of guidance and 30 basis points ahead of original projections [9] - FFO per share growth was above the midpoint of guidance, reflecting strong operational performance [2] - The fourth quarter saw a blended lease rate growth of 1.9% and occupancy increased by 20 basis points to 96.3% [3][9] Business Line Data and Key Metrics Changes - The company reported improved occupancy in Los Angeles, which increased by 70 basis points sequentially, indicating progress towards stabilization [3] - Northern California outperformed expectations due to technology sector expansion and limited housing supply, while Seattle and Southern California followed [3][4] Market Data and Key Metrics Changes - The broader U.S. economy is expected to experience slow but stable growth, with job trends remaining consistent [4] - Northern California is projected to lead Essex markets in rent growth, followed by Seattle and Southern California, with total new housing supply expected to decline by approximately 20% year-over-year [4][5] Company Strategy and Development Direction - The company plans to continue evaluating investment opportunities with a disciplined focus on creating shareholder value [8] - The strategy includes reallocating capital into higher growth, fee simple acquisitions in Northern California, which are expected to provide better risk-adjusted returns [12] Management's Comments on Operating Environment and Future Outlook - Management noted that while job growth is soft nationally, Northern California is showing signs of recovery, particularly in venture capital funding and office absorption [19][20] - The company remains cautious about the unpredictable job environment influenced by public policy, which could temper near-term demand [21] Other Important Information - The investment market remains healthy, with $12.6 billion in non-portfolio institutional multifamily transactions in 2025, a 43% increase from 2024 [6] - Cap rates for highly sought-after submarkets are in the low 4% range, while the remaining submarkets are in the mid-4% range [7] Q&A Session Summary Question: Thoughts on demand for assets in Northern California and Seattle - Management indicated that Northern California is recovering, with job openings in tech companies showing stability, while Seattle has faced challenges due to layoffs but still has positive fundamentals [16][20] Question: Expectations for new and renewal lease blends - The company expects new leases to grow flat to 2% and renewals to be around 3-4% for the year, similar to 2025 [22] Question: Performance expectations for Los Angeles - Management noted steady improvement in LA's occupancy, with hopes to reach stabilization at 95% soon, driven by a decrease in supply [27][28] Question: Impact of concessions on San Francisco rent growth - The company clarified that concessions are not significantly affecting the recovery in San Francisco, which is currently about 9% above pre-COVID levels [30] Question: Cap rates and investment opportunities in Southern California - Management stated that transactions in Southern California have occurred in the 4.5-4.75 cap rate range, indicating a healthy investment environment [33] Question: Legislative impacts on rental housing - Management is monitoring legislative changes but does not expect significant impacts on their business from advocacy costs [86] Question: Changes in move-in pace from outside core markets - There has been an increase in immigration trends in Northern California, primarily driven by return-to-office policies rather than robust job growth [100]

ViO 234 Apartment Homes San Jose, CA F O U R T H Q U A R T E R 2 0 2 5 C R E D I T U P D A T E S E L E C T E D R A T I O S & C R E D I T R A T I N G S | Public Bond Covenants(1) | | | & Selected Credit Ratios | | | | | --- | --- | --- | --- | --- | --- | --- | | Q4 '25 | | Q3 '25 | Q2 '25 | Q1 '25 | Q4 '24 | Covenant | | Debt to Total Assets | 35% | 34% | 35% | 35% | 35% | < 65% | | Secured Debt to Total Assets | 4% | 4% | 4% | 5% | 5% | < 40% | | Interest Coverage | 510% | 517% | 524% | 532% | 540% | > 150 ...

Core Insights - Essex Property Trust Inc. (ESS) reported fourth-quarter 2025 core funds from operations (FFO) per share of $3.98, missing the Zacks Consensus Estimate of $4, but showing improvement from $3.92 per share a year ago [1][8] - The company experienced favorable growth in same-property net operating income (NOI) and higher occupancy, although higher interest expenses acted as a dampener [1][8] Financial Performance - Total revenues for the fourth quarter reached $479.6 million, up 5.5% year over year, surpassing the Zacks Consensus Estimate of $476.6 million [2] - For the full year 2025, core FFO per share was $15.94, a 2.2% year-over-year improvement, but missed the Zacks Consensus Estimate of $15.98; total revenues grew 6.4% year over year to $1.89 billion [2] Operational Metrics - In Q4, same-property revenues and same-property operating expenses increased by 3.8% compared to the prior year [3] - Same-property NOI rose by 3.8% year over year, with financial occupancy at 96.3%, up 20 basis points sequentially and 40 basis points year over year [3][8] - Interest expenses increased by 7.1% year over year to $64.6 million [3][8] Portfolio Activity - During Q4, ESS acquired 1250 Lakeside, a 250-unit apartment community built in 2021, for $143.5 million [4] Balance Sheet Position - As of December 31, 2025, ESS had $1.7 billion in liquidity, including cash and cash equivalents of $85.6 million, up from $75.2 million at the end of the prior quarter [5] - The company did not repurchase any shares during the fourth quarter [5] 2026 Guidance - For Q1 2026, ESS projects core FFO per share in the range of $3.89-$4.01, with a midpoint of $3.95, while the Zacks Consensus Estimate is $4.01 [6] - For the full year 2026, the projected core FFO per share is between $15.69-$16.19, with a midpoint of $15.94, below the Zacks Consensus Estimate of $16.28 [6] - The full-year guidance is based on projections for same-property revenue growth of 1.70-3.10%, operating expense increase of 2.50-3.50%, and NOI expansion of 0.8-3.4% [7]

Core Insights - Essex Property Trust reported revenue of $479.63 million for the quarter ended December 2025, reflecting a year-over-year increase of 5.5% [1] - The company's EPS was $3.98, slightly down from $4.00 in the same quarter last year, indicating a -0.52% surprise compared to the consensus estimate of $4.00 [1] - The revenue exceeded the Zacks Consensus Estimate of $476.57 million by 0.64% [1] Financial Performance Metrics - Financial occupancy for the same-property portfolio was reported at 96.3%, surpassing the average estimate of 96% from four analysts [4] - Total revenues from rental and other property reached $477.32 million, exceeding the seven-analyst average estimate of $475.08 million, with a year-over-year change of +5.6% [4] - Management and other fees from affiliates generated $2.3 million, slightly above the average estimate of $2.29 million, but down -4.7% year-over-year [4] - Same-property revenues totaled $414.85 million, marginally above the three-analyst average estimate of $414.75 million, reflecting a +0.9% year-over-year change [4] - Rental income was reported at $470.11 million, slightly above the estimate of $469.95 million, with a +5.6% change compared to the previous year [4] - Net earnings per share (diluted) were $1.25, below the five-analyst average estimate of $1.38 [4] Stock Performance - Over the past month, shares of Essex Property Trust have returned -3.5%, contrasting with the Zacks S&P 500 composite's +0.9% change [3] - The stock currently holds a Zacks Rank 4 (Sell), suggesting potential underperformance relative to the broader market in the near term [3]

分组1 - Essex Property Trust (ESS) reported quarterly funds from operations (FFO) of $3.98 per share, missing the Zacks Consensus Estimate of $4 per share, but showing an increase from $3.92 per share a year ago, resulting in an FFO surprise of -0.52% [1] - The company posted revenues of $479.63 million for the quarter ended December 2025, surpassing the Zacks Consensus Estimate by 0.64% and increasing from $454.47 million year-over-year [2] - Over the last four quarters, Essex Property Trust has surpassed consensus FFO estimates three times and topped consensus revenue estimates three times [2] 分组2 - The stock has underperformed the market, losing about 5.4% since the beginning of the year compared to the S&P 500's gain of 1.1% [3] - The current consensus FFO estimate for the coming quarter is $4.01 on revenues of $479.93 million, and for the current fiscal year, it is $16.28 on revenues of $1.95 billion [7] - The Zacks Industry Rank for REIT and Equity Trust - Residential is currently in the bottom 35% of over 250 Zacks industries, indicating potential underperformance compared to higher-ranked industries [8]

Financial Performance - Reported Net Income per diluted share for Q4 2025 was $1.25, down 68.8% from $4.00 in Q4 2024; full-year Net Income per diluted share was $10.40, a decrease of 9.9% from $11.54 in 2024[9] - For the three months ended December 31, 2025, net income available to common stockholders was $80.573 million, compared to $257.453 million for the same period in 2024[44] - Net income available to common stockholders for the twelve months ended December 31, 2025, was $669.7 million, compared to $741.5 million for the same period in 2024, reflecting a decrease of 9.7%[59] - Earnings from operations for Q4 2025 were $152.1 million, down from $304.5 million in Q4 2024, indicating a decline of 50%[59] - Net income per share - basic for Q4 2025 was $1.25, compared to $4.01 in Q4 2024, a decrease of 68.8%[59] Funds from Operations (FFO) - Core FFO per diluted share increased by 1.5% in Q4 2025 compared to Q4 2024, and by 2.2% for the full year, driven by same-property revenue growth[9] - Funds from operations (FFO) attributable to common stockholders and unitholders for Q4 2025 was $262.977 million, a 6.9% increase from $246.014 million in Q4 2024[62] - FFO per share-diluted increased by 6.8% to $3.94 in Q4 2025, compared to $3.69 in Q4 2024[62] - Total FFO for the twelve months ended December 31, 2025, was $1.065136 billion, slightly up from $1.063878 billion in 2024[44] - Core FFO attributable to common stockholders and unitholders for the twelve months ended December 31, 2025, was $1.063 billion, slightly up from $1.064 billion in 2024[62] Revenue and Growth - Same-property revenue and NOI grew by 3.8% in Q4 2025 compared to Q4 2024, and by 3.3% and 3.2% respectively for the full year, exceeding original guidance[9] - Rental and other property revenues for Q4 2025 were $477.3 million, up from $452.1 million in Q4 2024, representing a 5.5% increase[59] - In Q4 2025, same-property gross revenues increased by 3.8% to $414.848 million compared to $399.520 million in Q4 2024[86] - Year-to-date (YTD) gross revenues for 2025 reached $1.643 billion, reflecting a 3.3% increase from $1.590 billion in 2024[88] - The average monthly rental rate for same-properties rose by 2.3% to $2,720 in Q4 2025 from $2,660 in Q4 2024[86] Acquisitions and Dispositions - The company acquired seven apartment communities for a total of $829.4 million and disposed of five for $563.8 million in 2025[9] - The total number of apartment community acquisitions in 2025 was 1,523 homes, with a total contract price of $829,375,000, averaging $534 per apartment home[101] - The company disposed of 1,230 homes in 2025, with a total contract price of $563,805,000, averaging $496 per apartment home[101] Capital Expenditures - The company plans approximately $100 million in revenue-generating capital expenditures for 2026[26] - Total revenue generating capital expenditures for Q4 2025 amounted to $21,836,000, with same-property portfolio expenditures at $20,193,000[94] - The average capital expenditures per apartment home in Q4 2025 was $524, totaling $2,258,000 over the trailing four quarters[94] - The company incurred $28,947,000 in non-revenue generating capital expenditures in Q4 2025, totaling $124,318,000 over the trailing four quarters[94] Debt and Liquidity - As of December 31, 2025, the company had over $1.7 billion in liquidity[21] - Unsecured debt, net, rose to $6.016 billion in 2025, compared to $5.474 billion in 2024, with a weighted average interest rate of 3.7%[68] - Total debt as of December 31, 2025, is $6,800,269,000, with a debt to total assets ratio of 35%[75] - The company’s mortgage notes payable, net, decreased to $784.348 million in 2025 from $989.884 million in 2024[67] Operational Metrics - Financial occupancy rate for Q4 2025 is 96.3%, with delinquency as a percentage of scheduled rent at 0.5%[79] - Same-property net operating income (NOI) for Q4 2025 is $291,217,000, reflecting an operating margin of 70%[79] - Total property operating expenses for Q4 2025 amount to $141,500,000[79] - Total same-property operating expenses for Q4 2025 were $123.631 million, a 3.8% increase from $119.049 million in Q4 2024[89] Future Guidance - 2026 guidance for Core FFO per diluted share is projected to be between $15.69 and $16.19, with a midpoint of $15.94[23] - Estimated same-property revenue growth for 2026 is projected to be between 1.70% and 3.10%, with a midpoint of 2.40%[23] - The company anticipates potential challenges in maintaining occupancy rates and rental demand due to competition and economic conditions, which may impact future performance[54] - The company expects a blended rate growth of 2.5% for 2026, driven by lower supply offsetting soft U.S. job growth[115] Ratings and Compliance - The company holds a Baa1 rating from Moody's and a BBB+ rating from Standard & Poor's, both with a stable outlook[75] - The company’s ability to comply with public bond covenants may be affected by changes in operating and financial performance, which is critical for maintaining financial stability[142]