1 EXHIBIT 11.1 ESSEX PROPERTY TRUST, INC. STATEMENT OF COMPUTATION OF EARNINGS PER SHARE (Dollars in thousands except per share amounts) Quarter ended June 30, Six months ended June 30, ---------------------------- ---------------------------- 1998 1997 1998 1997 ------------ ------------ ------------ ------------ BASIC: Net income $ 7,548 $ 6,254 $ 15,473 $ 11,122 Less: Dividends on 8.75% Convertible Preferred Stock, Series 1996A (875) (491) (1,750) (929) ------------ ------------ ------------ ------------ Net income applicable to common stockholders $ 6,673 $ 5,763 $ 13,723 $ 10,193 ============ ============ ============ ============ Weighted average number of shares outstanding during the period 16,632,561 13,538,186 16,625,413 12,571,765 ============ ============ ============ ============ Net income per share $ 0.40 $ 0.43 $ 0.83 $ 0.81 ============ ============ ============ ============ DILUTED: Adjusted shares - basic, from above 16,632,561 13,538,186 16,625,413 12,571,765 Additional weighted average shares of dilutive stock options using the average stock price under the treasury stock method 215,269 190,608 227,574 193,153 ------------ ------------ ------------ ------------ Weighted average number of shares outstanding during the period 16,847,830 13,728,794 16,852,987 12,764,918 ============ ============ ============ ============ Net income per share $ 0.40 $ 0.42 $ 0.81 $ 0.80 ============ ============ ============ ============ (1) In accordance with Statement of Accounting Standards Board No. 128, the conversion of all of the outstanding operating partnership interests in the Operating Partnership into shares of Essex's Common Stock is not included as the effect would be anti-dilutive. (2) In accordance with Statement of Accounting Standards Board No. 128, the additional weighted average shares issuable upon conversion of the 8.75% Convertible Preferred Stock, Series 1996A is not included as the effect would be anti-dilutive.