1315_Nareit Testimonials_Kleiman_2023-06-13_v2
06/15/2023 | by Nareit Staff

Angela Kleiman, president and CEO of Essex Property Trust, Inc. (NYSE: ESS), participated in a video interview at Nareit’s REITweek: 2023 Investor Conference, held in New York June 6-8.

Kleiman discussed her priorities for the company in her new role as CEO, fundamentals in Essex’s core West Coast markets, including the supply outlook and whether Essex is seeing an impact on leasing levels from layoffs in the tech sector, how active Essex is likely to be on the acquisition, disposition, and development front for the remainder of 2023, and the outlook for the multifamily sector more broadly.

Kleiman’s observations during the interview included:

  • Essex’s plan is to “maintain our capital allocation discipline and continue to innovate.”
  • The vast majority of layoffs in the tech sector occurred outside of California, with only about 16% of layoffs in Essex’s markets. About 90% of layoffs have been quickly rehired, so “we’re seeing good demand, solid fundamentals.” Supply levels, meanwhile, have been constrained for several reasons, including a difficult and long entitlement process.
  • The cost of capital means that it’s difficult to pencil acquisitions, while development yields are “tough.”
  • Essex has recently been active in stock buybacks, which have offered the greatest return to shareholders.