Rexford Industrial Realty (REXR) 13 Feb 192018 Q4 Earnings call transcript

Greetings, and welcome to he Rexford Industrial Realty, Inc. Fourth Quarter 2018 Earnings Conference Call. At this time, all participants are in a listen-only mode. A question-and-answer session will follow the formal presentation. [Operator Instructions] As a reminder, this conference is being recorded. to with conference ICR. like host, to now Swett Steve would turn over the your I

conference We joining Industrial's earnings us like for would to Rexford fourth thank quarter you for call. XXXX

contain management's release of your Web distributed addition have statements a Securities On site forward-looking Investor our at supplemental quarterly Relations the questions on call, In with details in Reform yesterday www.rexfordindustrial.com. posted Litigation additional in to XXXX. remarks package results defined market to the closed, after section may and we answers press the as on today's our Private Act

Forward-looking words estimates, usually by expects, or similar the and should, of believes, plan, statements may, predicts, are seeks, expressions. project, the such use intends, will, anticipates, such identified of as potential, words variations

risks to matters that guidance. income those discussed Forward-looking that uncertainties actual to statements to forward-looking revenue, related of subject are include differ and results address those operating today. from cause may financial statements or Examples

statements estimates. to review reminder, forward-looking related future. the the listeners encourage a company's to contained Rexford We statements statements more in filings Management's detailed any forward-looking obligation no forward-looking SEC. to the discussions update As in assumes the Industrial represent these with current

on measures represents Frankel appropriate Schwimmer the with company's Adeel presented the make then financial the investors. available Rexford addition, open explanation remarks, Co-Chief release is some by we Officer, non-GAAP such In of Industrial's Web Howard Khan. call certain measures. Today's useful to your on financial non-GAAP this together site, Michael conference an reconciliations Officers, prepared GAAP The believes supplemental for package, measures questions. the information afternoon, call Financial the of which They'll are and to company are will yesterday and Chief Executive hosted and call information financial present and earnings company's and why were released

I call will over the Michael. Now, turn to

opportunity. a with with activity earnings on quarter on And on our XXXX. start I details guidance results we'll and results and some our Howard our operating and then Rexford perspective follow introduce call. Industrial's recent Adeel will summary cover welcome to go-forward of will more fourth will you. a market XXXX for pipeline. our Thank financial investment our acquisition

then We open call questions. for your will the

share We with XXXX as accretive exceptional quarter highly and we XX.X% fourth $XX.X quarter. results, quarter value are fourth and very through achieved year we Beginning plan. results is FFO the increase which focused of a Core pleased our execution FFO create to core our was full-year million successful per XX.X% prior which growth shareholder drive share $X.XX business represents of over the an continue year-over-year. company our increase with

GAAP the same and the a On properties and by NOI property from cash X.X% NOI basis. and same repositioning, And XX.X% cash impact basis, the a increased of by on after basis the excluding X.X%. GAAP up lease property on X.X% increased increased NOI

During we the XXX,XXX feet. signed XX square for approximately leases quarter,

year Our We our GAAP end. same property on XX.X% on achieved leasing were basis at XX.X% spreads occupancy in and basis. portfolio a XX.X% stabilized a cash

price completed acquisitions $XXX seven aggregate an also and We million the year $XX.X position. of purchase of end for this quarter million during completed approximately

key on Long largest market high our at Today, it macro records occupancy, a ports through containerized longer to rental relatively global may project strong year on great the that the briefly term pundits aspects conditions leasing nation's to is and our year, begin forward. The begin going this as set new of and we in in strategy time the and XXXX rate uncertainty of prior Beach with, California records mind imports tenant X.X%. impact the focus market moderated by demand Rexford. continues reflect and To results. growth almost growth many in remains is Angeles XXXX regional As within new exceeding achieved for drivers our industrial consider Southern levels. growth two I'll and With key by historic infill business economy of velocity Los measured and

to future grow continues and in XX.X% growth with continues shorter infill acquisition. timeframes driven our location for Consequently, mile of the This need to delivery importance with increasing e-commerce over growth where portfolio months embedded accounting factors. XX growth for Additionally, about to evolve next within a favorable the in-place Rexford's is is several projected be by located. any incremental NOI growth without quite portfolio last XX internal further through the

approximately next below over feet XX% market, to are These leases incremental these representing square leases market to marking roll. scheduled NOI. our XX% about to estimated about leases of about and be First, to two years, expected contribute is million annualized $X.X the X million are

drive our to continues repositioning Second, value-added property growth. renovation substantial work and

the X an Our over With our future. major XXXX, to to annualized feet foreseeable market next well deep repositioning to over projects $XX.X months. exceptionally currently are in billion Southern incremental value-added XX million NOI process the contribute see primary we in in infill of XX of prior California expected built square opportunities

$XX Third, is expected XX to completed quarter, months. million over of the fourth since acquisition million start are the to contribute $XXX annualized NOI XX the incremental the of approaching next

to spreads infill be be expected full Southern gains compared XXXX our as a second to also to California. phase respect still leasing be contributed leasing stabilized our to NOI incremental from spreads occupancy, our is spreads of We're the within from during half disproportionately XX% operating by within occupancy. cycle the at year of we quarter. fourth over incremental is growth to leasing XX% secular XXXX the near of or with in backloaded structural generated expect driven timing, increases leasing of portfolio generated With about during expected NOI NOI As

at from you trading NAV choosing for continue rent. certain NOI So exchange see us they higher may extend are to for time-to-time, in growth or occupancy to not tenants retargeting

and growth remain current is portfolio that active strong. our substantial. within prospects It investment noting external growth worth embedded this for is very Although pipeline our

to focus full-year today. our to historical go briefly continued $XXX meaningful already separation through and now expect our related growth see We acquisitions like investment forward plan. our on completed with performance of strategy I'd on of level accretive at million has here XXXX

the XX% portfolio Over and XX% grew XX our we and by respectively. prior XX months,

we completed of million XXXX, During million and acquisition $XX $XXX assets. opportunistically sold of

continue best-in-class value program. repositioning We create through to a

During XXXX, for company of FFO year-over-year, continued by generated NOI our we which XXX,XXX to grew delivered by at square cost and on revenue total XX.X%. with un-levered feet, cash Total XX.X% margins share XX.X% weighted least yield rental over and expand average X.X%. by growing a

to was per delivering FFO times simultaneously from achieved full-year with growth to debt times ratio share end Finally, X.X of XX.X% the X.X EBITDA our deliberate XX.X%. share our XXXX FFO was the of at the EBITDA growth company of This end debt a XXXX of at per the XXXX.

and mitigate cash XX% that the business, so global total present may our like By growth so, and maintaining generate not sheet. a this to we model leverage enterprise to light cycle, market position predict, believe of and experts, only themselves. risk leverage uncertainty. adhering we a or emerging low strong the By favorable to while control is equates to good ability about doing but We Our cannot balance level balance particularly economic at today's also we company business opportunities in and fortress accretive we debt benefit capitalize value. maintaining focused from flow flexible sheet to an on stage of real-estate extremely

our This result are to is by dividend company's $XX.X a with we dividend report of share. XX.X% to As performance we're per the strong a increase. year fourth that pleased very increasing our consecutive

couldn't be near As our we and and We look opportunities. more beyond. excited and term into prospects longer XXXX about

over We outstanding debt contributions build of thank team. Industrial this and Rexford for company. with to Howard. to the your turn I'm tremendous we'd of entire like very dedication the to have to you great And gratitude to pleased that, each And help call

for Michael, today. thank us you everyone Thanks, and joining

to of demand continue focused acquiring demonstrate volume Southern which benefit continues We Infill the value to assets and superior to fundamentals. adding more industrial market, and California strategy

delivery other rent rental due quarter resulting cost weighted in X% occupancy, which Roman rate ended our the of up average months. low Our conversion portfolio excludes continued pressure fourth Supply These replacement diminish to a XX on basis the target occupancy Eastern market, to high the value XX.X% but the to in growth past overtime. scarcity and property at dynamics, asking sustained continues the Empire growth and uses land. and high industrial levels of of of is the over

the Moving the two we a acquisitions returns on acquisitions range All were quarter X.X%. the projected X.X% to fourth fourth in the $XXX.X stabilized recent transaction off to with for million. market completed within of quarter, activity, seven

accessed perform throughout executing feet, The property were yield of San portfolio. off XXXX. and million. buildings. half buildings, as industrial and XXX% square Approximately Valley markets in and LA and occupied. $XXX raise LA of lease, acquired for the property feet acquired in single cosmetic with minor site full-year, Oso XX% October, acquire contains relationships. costs in Mason image million other Angeles XX% way stabilization, functional The below square million. with it's initial we adding Boulevard market Diego feet Three The XX% We local XX,XXX art lease square just rents $XX.X near implement Diego the rents and lately in entrenched and an property market San complex market XX% result probably around yield. X.X% We were logistics to Gardena on to Avenue in high submarket or acquired upon we we transactions to balance tenant a intend submarket transactions $XX.X platform in In November, on of County five-year estimated Fernando upgrades costs. market. we four totaling The to for for the XX state projected sale the our X.X% over yield at market, square Los property feet of North for At holding in to a improvements coverage the acquisitions be four-building Greater of leaseback approximately term three add XX% were XX% our in Point stabilization spread consists lease the feet target to property research November, Rocky and our value XX% innovation highly tenants role, market. and lease square submarket we Avenue at in building, a below value-add December, two subway XXX% acquired intend XXX,XXX is completed market a on In In the occupied million. modern X value about North at additional. driven $XX.X the million X% submarket Also, Infill that's About XXXX we XXX,XXX consider For project we million. providing a San County and $XX.X buildings system. XX,XXX the totaling

Our a X.X% is estimated of X%. be deal initial yield to with projected stabilize

The submarket improvements acquired will also Drive XX% Orange value-add at million. XX yield County modernization building in functional Fresca clear lease located completed. current for North XXX,XXX approximately is estimated XXX% foot at At foot, and is leased square to We The X.X%. rents market. the be role, below two-tenants $XX

We lease is also XXX% is current Submarket estimated million. The prohibitive acquired for LA X.X%. unique, yield $XX.X building is XXXX Sheila XX,XXX The located cost in small develop. spaces, the which property Central to freezer cooler is seven-tenants. Street offering at square to foot

XX Bonelli half December dock to million. rent. of foot The is to Finally, XX is leased Street about a at market Gabriel we the square and foot building acquired single-tenant for Valley $XX.X position San with clear located XXX,XXX submarket XX in LA in

X.X%, and estimated We market in Drive market. the to and to new initial Valley stabilize project feet rents in square cosmetic is are contains yield is $X.X we That clear to in intend foot, we Street million. sale and one-year be XXX,XXX acquired a cost leaseback. Subsequent warehouse estimated quarter functional XX-foot yield The X.X%. upgrades years cost North clear million January, modernize currently in three stabilization LA on lease role $XX.X County expect recently to of to off to for Located XX-foot space. XX,XXX total clear square the increased perform value acquired more square X.X% Orange deal submarket The San completed yields to X.X%. be industry vacant the West add in is expected The XX,XXX transactions. on feet. constructed projected submarket at estimated three for add We end XX-foot we building an Fernando building and to stabilized We

credit XX% located tenants buildings Finally, land. and range are Conejo Business and to $XXX.X XX,XXX completed constructed units on acquisition in order about leased industrial We we a These County the industrial ninth A expected demise unavailable. submarket XXX,XXX in which Ventura of intend stabilization, Spectrum to million. be square cost The in a Park, acres But consists building rare buildings to of feet in for the of square XX space value. class with increase submarket virtually are to full X%. is is highly our two foot competitive the this newly estimated industrial of yield

trade addition our is focused XXX,XXX including NAV. independent in We with allows square demonstrates, yield for cap X, and meaningfully generates acquisition. rates XXXX redevelopment have added us a growth. for of current create portfolio position of the feet here portfolio to to fully feet the marketed about strategy rent compares Turning true square valued in square ability X.X%. cap XXX,XXX of above acquisitions, flow currently generating assets, differentiator. growth range. repositioning continue industrial our favorably that This value in feet return our our driving execution activity, stabilized how to transaction over the which product within X% we low market In We mid delivered XXX,XXX space believe aggregate expertise in and of market to to an market our our about XXXX, repositioning drive cash re value yield of we This

acquisitions under LOI totals of pipeline approximately our $XXX ahead, or Looking contract contingent million.

diligence to largest the continue the customary in satisfaction we turn over are California. I'll closing as to provide more fragmented Southern opportunities we completion The As completed. transactions for now of conditions will as due infill market and and to these industrial Adeel. acquisitions as details are well mine subject contracts Nation's highly call

$XX.X XXXX, fourth attributable the stockholders Howard. to Thank income for you, share fourth to diluted approximately XXXX. $XX.X fully fully million the of quarter for compares per $X.XX $X.XX common operating Beginning or with This share. per our results, and quarter net million diluted was

the share million basis of share diluted FFO share, $XX increase core months share months per fully $X.XX million representing For XX, XXXX course, $XX.X a On three company three the ended FFO XXXX. year-over-year. an for to December compared was December XX, ended a company was XX.X% as of

million or to net attributable common XXXX, For attributable diluted approximately per $X.XX for $X.XX or diluted to reported common full-year fully $XX.X share share the fully of of Rexford income per XXXX. compared net million income stockholders as to $XX.X stockholders

increase million ended share basis FFO core December For the of full-year XXXX, was Rexford $X.XX $XX.X a share increase same per to XX.X% reported million the XXXX. $X.XX of to company NOI fully in On diluted XX, fully year an for for $XX.X company XXXX. with which FFO a share in XXXX. the of compared core share $XX.X share fourth for quarter per $XX.X quarter compared of was XXXX million in compared the million reported diluted X.X%. property Same

XX.X% increase fourth repositioning and same increased same impacted in X% property by that'll that's over year a a Our gap cash NOI quarter same NOI expenses. X.X% by increase and property on stabilized rental growth NOI X.X% property basis be was operating cash a the On on revenue basis. basis X.X% driven the property total in in year,

basis same full-year property of XX.X% the from property by driven property and by increase increase On operating a Net properties X.X% XXXX, a and increased XXXX. gap X.X% repositioning increased cash XXXX property to and same cash in For a on increased the X% revenue basis, expenses. compared XX.X% on in NOI basis. contribution same NOI NOI X.X%

and our now financing Turning activity. to balance sheet

flexibility our maintain term. our long balance as We for sources business to to optimize and of continue capital cost capital grow our diversify sheet the

share, fourth $XX.XX Rexford of and corporate ATM of $XXX to four varied average $XXX.X facility capital ATM we common purposes. million the fourth our available million quarter, we full million to and approximately the million, acquisition million working During a other million per in availability resulted At our of approximately stock to approximately proceeds and have on through $XX.X end of program. $XXX.X this net shares quarter, cash which utilize price $XXX credit for at issued fund fund

million term per on unitholder no March a the XXXX with of share XXXX of quarter first With net debt dividend record on XX, our a XX, XXXX. cash XX, of to Board at April payable Directors for have in loan XXXX our our common declared We dividend being regard $XXX to XXXX. $XX.X stock February maturities maturity to and

as March Additionally, declared of our Directors stockholders first XX, our share preferred dividend approximately XX, of of for Board of March a payable stock to preferred on $X.XX XXXX. cash XXXX, per the quarter XXXX,

Finally, I'd our like to XXXX. outlook introduce for

or announced. not have as dispositions, only does which been Our and transactions portfolio today, assumptions guidance refers our not acquisitions, capital any to include for of yet

For share or guidance exclude Please note, to core our within calculating FFO costs core $X.XX we a include does of per not that achieve XXXX, acquisition company's range typically $X.XX costs this we of other expect to FFO though share. for when metric.

factors. supported several is guidance by Our

We of XX.X% expect within within a year-end same same range XX.X% and property a XX.X%, stabilized XX.X%. and occupancy property to range of year-end occupancy

pool achieve to to the for X.X%. property our same same X.X% X% our representing XXXX with to of expect footage. XXX.X properties XX% stabilized growth XXXX. December This year aggregate property million for NOI of growth year NOI and XX, XXX square is an note at XX% consolidated portfolio feet, of portfolio property Please occupied, We the X.X%, same of approximately square that of comprises

including our open take G&A, million million prepared $XX.X For $XX to non-cash completes to line a With compensation. remarks. Operator? the about of that, anticipate equity from we'll $XX we questions. full-year million, That range any

with proceed your this [Operator conducting Feldman question-and-answer first Lynch. America session. Jamie from is a be Thank question. Bank time, with we'll Instructions] Please question you. Our Merrill At of

with GAAP? about would be guidance Can what Great, on same-store to thank basis, rather a deal. the you start cash talk than your you. I just want

Hi, afternoon. Jamie, good

basis, a we look on on actually to take X.X% on a also cash a points to on so at two what two to growth was guide so going property, is equivalent the supplemental. GAAP X.X% X.X% which also you higher. basis a would percentage same X% The low in cash on would to same to the high be end, X.X% the happened higher, basis, very also much and that property are basis, points we if X.X%. which On XXXX NOI percentage the end X.X%, a GAAP X% it stabilized So be

know I how fourth spreading the And Okay, same-store back-half thank by on Any thoughts quarter. year, quarter? the of leasing trend talked about most of the you. should you kind even contributing throughout year

it's Jamie, Adeel again. Sure.

Michael pointed that is as actually So, back-loaded what talk growth QX. and in pretty QX, coming typical actually we about and XX% out, well, XX% the back-loaded, past of the growth to abut have seen in of as and that's in years is QX we and

typical seen. what have it's to So, we

about about There's XX% million very have during that's, the changed the pool of our We to our square ramp consistent a expect XXXX, feet and tackling blocking so consolidated the like said, of X.X and of no we And pick I lot But to leases. at the throughout major expiration end up same-store year. portfolio. just prior year, years. with

thank think based competition this it versus -- potential I is And you're asset? farther of the the mean on working or of then you I much about more just portfolio single Howard, year and Okay, as but how and know even pipeline investments, you acquisitions mentioned value-add you. today, out,

that's mentioned separate about XX million think if the $XXX have transactions. we you transactions in I Well, of -- progress, worth

one-off do on you've seen tackling there And transaction. one-sey that are a -- our think I has by we year. had building portfolio. this a out for able couple larger from lot some that business two-sey, occasionally, growth But a usual most this portfolios capture and But of of for assets to blocking chased rather sale. and things kind predominantly year larger those. markets, were forward, last the of we So, as the were the We it's going our three-sey day forward looking some every or part of come

been has on it cap Okay. are firm And going do what pricing, still you lower? rates think pretty or

happening points significantly. cap transactions in that on repositioning had range, part, XXX I the see spread. where to X% in which compares so think, line mentioned are Prices most in to for the rents move XXX rental have call you with really favorably our really basis marketed trading to been with the higher rates, what's we results the we're growing X.X% achieving

about have had and leasing markets. very been itself rent year for the growth Our in strong, infill market the the spreads X%

So just as bit little pricing growth. that moves further ahead based a on same rent

Michael, tariff at for tariff of activity question port of you a pull-forward or It some activity. been the high. volumes then over all-time volumes like port a concerns And sounds have ahead mentioned had Okay. being

being Just be think know I was to you if you decline port you would pullback an in implications infill think meaningful actually do I if have talked if about volumes, in for a did portfolio, volumes there the guys Rexford port a of mean, be more what would way?

think get actually didn't the and thanks, where port driven, never had And didn't during really and decreased great see at creative. a about during out has in, even and that strive to product And we've of to that the the of get during at question. And issue hear service if great we've have diversified. that we anything port they even and Southern when port demand in two-and-a-half And been we and And tenants we lack a seen decline, Southern and have -- our the our unrest is shutdowns really We slowdown crafted, earlier, problem in have Jamie, it's we chasses deliberate what you Hey, during studies trucks of tenants. due I consumption-driven found look tenants California ago. product is forget, short port a supply nation. of They the tenants dramatically our still are due the that if year in we did construction didn't XXXX. consumption California, zone was seen volumes and those. anything largest our the is story tenant in to very case labor, the tenants how the had portfolio region. our where consumption both look the periods in portfolio great very, labor figure We very volumes you the an great recession. Again, ports And real Don't and base, our for world from XXXX from might to hear diversified. during the recession.

So the as sources from of a can type or our tenant of flow perspective industry as about cash get. business are diversified a you

any so And issue so when issue. haven't really and we haven't far, from the have seen an seen tariff an ports in prior periods issue we the

what just consumer impact so consumer spending about of about the more spending, your economy in terms tenants on then And the just regional in region? about and the less and

consumers are an probably impact and Absolutely, that to the we're region more impact to impact impacted. supply, to to of the see going you'll rates, but an rate. rental And extent in to rental spending of be less less businesses an

you. All thank right,

with proceed Our Fargo. question. Please Heck Wells next is Blaine with from your question

Good there. morning out Thanks.

to same-store a on any of of how more the a the kind built your changes the really assuming guys in formulated is of much of portfolio you not numbers follow-up Or guidance guidance so view current in few of year. for came external consideration whether performance, with versus market, other guess uncertainty as much given the economy? to a with in there your for factors the words, wanted just I conservative peers So little that out was guidance, consideration of see your sort I some to

as question. try the Hey, see we more look to give predict. believe having to we've as Michael. It's got out, it as pessimist. remarks, to if in question. at tackling. we mentioned economists, we prepared be. pretend blocking laid being great to We we and We a our I frankly, for It's don't forward And it. portfolio, of said, Blaine, paid so can't and really lot That not my you that We're we're thanks Adeel a

medium-sized so or releasing our lot quarter. back-loaded contributions date. small of their tenants tenants, times often in and the that a are into we or our of predominance don't a three more or intentions get month And expiration have for the We before second-half, their of fourth until two visibility

that it pretend can't And it. as tell we don't we deliver know. we So, see try just to to assumptions we

Okay, that, you not a at that's helpful. you leases, much really to And way of you have usually you do have to too top the you but know, I guys said looking but into as at of up each on XXX,XXX follow in square your tenants chunky square hopefully, back I'm corner, in guess, XX,XXX [indiscernible] don't is the page November those? have those smaller, then [indiscernible] right, is end of at year, which probability any you and the know, the guys feet renewal still feet of names sense much do you but getting of

the of XXXX. XX from down at really the feet or to that Howard. Hi, happen the it's about renewals of we pretty We tenants, top renewal. square have high see The list, now, even about XXX,XXX about the And that we're some the terms of tenants expirations leases XX% look going actually are million on Blaine, those conversations XX terms probability portfolio do having, just right actually. in of larger We top during those carefully. are about X.XX square in feet

we Adeel, to Last continued come your close That's adjusted over Okay. down from and ever should net to reported helpful. one think me, EBITDA How it's been think, debt at has the the to it. is about lowest X.Xx, either year or I and if some this is up target XXXX sales guys ongoing FFO level a basis leverage to of as or move that during growth good get or ATM maybe there you without more room the there from issuance? look on dilution an at

Hey, for question. Blaine, thanks the

seen, by design. we've that's that and the all is So yes, lowest

competitive we're to with think and manage by one all strategic strength of certainly this us as strengths. stays we forth. [indiscernible] Certainly, really, and hard pipeline, for a tried that it it always our that the so is decision I it's stated, sheet, And a balance and is we've really balance company. and because ATM money the in terms whenever the on so the that looking of the at sheet, the horizon on are fact the at so of looking acquisition some of

the of ATM market end the the facility keeping year of company an lot But ahead program. leverage we focal there we from think in to picture. say we'll a perspective pipeline the strength see So full call how -- on timing that, their accretive $XXX capacity. be But a I I'll continued from quarter our sheet and where of like left $XXX.X in is from liked it. million deploy think way… that but like that execute the million but ATM In bit we that Obviously, a changed. you at to did of be the our long-term. are, what's some been we'd end of perspective long-term have the terms available, least guidance we from is continue a we We has point us And how cash, capital perspective, balance a just point the that differences a still we to that driven little perspective, did program by to had can the we add last from the under our operate at so could profile that and what's in on X, hasn't there's on We final of the maintain kind like for cash certainly best and zone. I leverage the

I a question. Hey, think to just to important like Blaine, Michael, add it's briefly, very that I'd it's because

to I per delevering is over the company to -- we know, you growth, Rexford debt when generates performing that same would've math share the ratio higher seen exceptionally from a and all think the just at cylinders. to throughout that's and demonstrates year a you had mean if a the give share FFO growth. year, think the that you well XX.X% of time X.Xx just we is those X.Xx I per sense truly EBITDA are leverage on it, its firing FFO company I that like substantially maintained see

that about very think, And of share so delevering so company, to things FFO capability of I the this simultaneously per growth encapsulates while business. value the level deliver that high many creation

Thanks, That's a step. guys. great Agreed.

Emmanuel proceed is question next question. Korchman your Citi. Our from with with Please

Hey, guys.

for another acquisitions Just think about minute.

something that or both it that build and new you recent long deals your of versus merchant time? you another and else another the call that whether how new product new upside one for database about or build think do think spoken park, you've competition pricing I product was and for about

we they Valley We bought their moved that that considered than recently in actually about we we fact developer think lot at a actually. example really be the and were new a locked were and it Howard. for property Surveyor cost cost land, entitle a few able a a a Manny, perspective to you that about taken deliver from Yes, great on of the January. That's stabilized. and Hi, know building, on. a when we build able great years question, And looked the to the is replacement is in early site value to it Tenant actually today. it. properties And bought be in the when the since quite X% developer we in that Simi construction times depreciation would it higher of buying

a So deal delivered we a and a we're at particular yield. building thought great able that X.X% getting on to stabilize asset on we're newly

yield think actually the proved out that I theory. So

So from advantage will types opportunities our in future, of perspective, it. if we to take those have of continue we the

seen you Howard -- have buying out properties? the changes markets competition these And their any in in

Well, California in lot here. we've that industrial is always it's competition secret market top the had Southern the mean, a I country. of no

here some trying into trying everybody's So to fight their to acquisitions. way

wrote our is to the and we ability I and off deals effort on billion XX% fourth look XXX rate. we about a You quarter. know, it's year, wrote bought $X off means LOIs for worth the the of of a that what the XX% market we if were LOIs product market we obviously during were you Actually into market our -- separates hit had transactions tremendous think LOIs, research off the year create platform X% XXX us puts at and it's which our in

the what our off buy So most due opportunity bottom-line competitors look I our being referenced on assets then when bought. know we to if many get the market. XX% are more even we is at those in have own of think to you really we very And underwriting. largest you didn't we're selective about And stringent it, deals our a of we buy probably that competitor really

Thanks, Howard.

from is next question. JPMorgan. question Miller proceed Our [Operator Michael Please Instructions] with with your

year, seems little occupancy even And, so the back to here was looking year. like property I'm X.X% I'm at makes your trying sense here year same was rent throughout pretty year to the at store spreads X.X% bit just XX% flat downdraft. X% year. But hi. growth, and same occupancy because of throughout a last stabilized Question pool, this have Yes, seem to the dots going some better last connect gotten just it it

So I'm what last what in quite metric it out just for worth year well. the figure headwinds as standpoint occupancy number last was trying half a less from of are year considering was than XXXX that to

it's Adeel. hi, Mike,

to I of think vintage have off are that So stated freelance of these these on bit its key and gap contributing occupancy you you added about year numbers lower, not hampered so then and again have releasing the blended I is X% the grip, here did last is that our do by fact from that the earlier but there and the burn as something that some gains this currently currently that cash was Michael to necessarily cash growth little we spreads to the a think numbers are thing grant are burning but that being basis in have assuming in manner I in part rents. the the occupancy slightly XX% a we're that

growth cash was earlier, the why asked a that's X points which So it's percentage higher.

year, do are last I backloaded, had this talked we've good the you good, job it quarters. and role case which doing last you're is the -- is that that earlier we here the are takes has as which know, well. think piece, you been A something that place lot how So about the during seeing of many That being of a had and over a course seeing of you said, so releasing we've success great stuff. bad a is the able impact of being in to lot

itself So we is lease see feel what right do we hopefully, looking can lease right comfortable we really if a where bottoms the most at now now. up and that's improve but by we opportunity analysis this presents and

I stabilized and XXX was going million anticipated then to deal? of Okay. what and the in was since XXX, the numbers -- And then, yield acquisitions those think what for on the

For the sorry, can fourth -- I acquisitions I'm oh, including tell quarter you…

Yes.

far -- those in X.X fourth the stabilized fourth quarter ones X.X X.X% those the including times, and about as those quarter initial from transactions transactions. yield terms as think yield, is of I the vacancy blended to range

we assume Okay. deal? similar the Got for it. XQ should something And

As the the with it's in, mentioned, think I XQ on little Howard is average higher call earlier X%. prior going year's deal probably over

cash the On side?

side sorry. probably Initially not cash have I'm five. just the so initially, we value-add some it's on It was there, in did under

Thank it. was That okay. Okay, you.

Chris Lucas One is question. with Securities. question proceed next your Our Please Capital from with

Hi, quick guys, just a one.

what that see implied growth, driving the if On sort teens as it there to color should comp, and we it just of the upper point is provide to scale what's G&A to year-over-year guidance sort driving out? that headcount, of of just that, curious of business is it investments that diminish maybe you is start is the growth in systems, could as sort some in is

Thanks Adeel. question. the it's Chris, for Hi,

end G&A reported impact compare there really and add million if to $XX.X range So that in last million leasing coming and number includes place one so last that took you you compare. being of that the $X.X capitalization year it's that to you XX.X% need these obviously of about if standards, million our year upper and is back added the to $XX the

the and will there steady they share you're some start else all in So the that are about which what end HR we like is that be XX.X% but of will things XXXX increase. What you obviously year being being delta seeing and what XXXX, of non-cash on grants of starting to that is that's else now, earlier laddering 'XX, those additive, comps there X.X% and XX on this year end all a this than we and incremental during it's were in we the call here stated increase equal from just seeing have on, is you're that is lion's state in is first equal that full the be being year. is equity did we're final that the about that's high in a those leg not low past back you in are last marketing the impact for perspective, the that, essentially is the assuming equity other and hires added in that 'XX effect lot of is the of

color. Appreciate thank the Great, you.

to and over turn closing the gentlemen, reached our question-and-answer back would I for of like call management Ladies have session. end the to we remarks.

of Day joining all and entire for wish we on want to you. you Thank Valentine's us thank Thank tomorrow. we everybody And you. a the behalf today Rexford team, great

Thank you. conference. This today's concludes

lines at thank for You may time. disconnect And you participation. your this your