Analyst's questions to Essex Property Trust Inc (ESS) leadership • Q3 2024
Question
An analyst from Deutsche Bank inquired about regional differences in the acquisition market, such as available inventory and cap rates, and asked for the drivers behind higher expenses in the Northern California portfolio.
Answer
Executive Rylan Burns stated there is minimal differentiation in cap rates for core product across their markets, with the most aggressive pricing on the Peninsula. Executive Barb Pak attributed higher Northern California expenses to normal quarterly lumpiness and tough prior-year comps, with slightly higher utility costs being a minor factor but nothing alarming.