1 EXHIBIT 11.1 ESSEX PORTFOLIO, L.P. STATEMENT OF COMPUTATION OF EARNINGS PER UNIT (Dollars in thousands except per unit amounts) Quarter ended June 30, Six months ended June 30, -------------------------- --------------------------- 1998 1997 1998 1997 ---- ---- ---- ---- BASIC: Net income $ 9,884 $ 7,114 $ 19,430 $ 12,762 Less: Distributions on Preferred Interest for 8.75% Series 1996A Convertible Preferred Stock (875) (491) (1,750) (929) Distributions on 7.875% Series B Cumulative Redeemable Preferred Units (1,492) 0 (2,214) 0 ------------ ------------ ------------ ------------ Net income applicable to general and limited partners $ 7,517 $ 6,623 $ 15,466 $ 11,833 ============ ============ ============ ============ Weighted average number of units outstanding during the period 18,506,034 15,393,186 18,498,886 14,426,765 ============ ============ ============ ============ Net income per partnership unit $ 0.41 $ 0.43 $ 0.84 $ 0.82 ============ ============ ============ ============ DILUTED: Adjusted units - basic, from above 18,506,034 15,393,186 18,498,886 14,426,765 Additional weighted average units 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 units outstanding during the period 18,721,303 15,583,794 18,726,460 14,619,918 ============ ============ ============ ============ Net income per partnership unit $ 0.40 $ 0.42 $ 0.83 $ 0.81 ============ ============ ============ ============ (1) In accordance with Statement of Accounting Standards Board No. 128, the additional weighted average units issuable upon conversion of the 8.75% Convertible Preferred Stock, Series 1996A is not included as the effect would be anti-dilutive.