Josh Dennerlein's questions to Essex Property Trust Inc (ESS) leadership • Q3 2024
Question
Josh Dennerlein of Bank of America sought clarification on the 'earn-in' calculation in the supplemental and asked if the capital recycling strategy would favor JV consolidations over open market acquisitions.
Answer
Executive Barb Pak clarified that the 90 basis point earn-in is based on signed leases through October plus projections, assuming no market rent growth and excluding concessions. Executive Adam Berry added that while JV buyouts are an option, the strategy remains flexible and depends on partner discussions, cost of capital, and market opportunities, reaffirming their commitment to the JV business model.