Rexford Industrial Realty (REXR) 2 Aug 192019 Q2 Earnings call transcript

Greetings and welcome to Rexford Industrial Realty Inc's Second Quarter 2019 Earnings Call. [Operator Instructions] As a reminder, this conference is being recorded. I would now like to turn the conference over to Steve Swett of ICR. Thank you, please begin.

We thank you for joining us for Rexford Industrial's Second Quarter 2019 Earnings Conference Call.

press supplemental yesterday Relations package our at the we market section to website a posted in www.rexfordindustrial.com. addition release after distributed close, on In the Investor forward-looking answers Litigation Securities Act of your and the Reform remarks management's defined in call, questions Today's contain statements XXXX. as Private to

and differ statements discussed from Forward-looking risks today. matters cause may are that that address those actual to subject uncertainties results to

we Industrial encourage other more no you review For risk information any and Rexford these our the update SEC to factors, filing. in future. assumes about obligation XX-K statements to forward-looking

this In represents addition, certain financial information financial presented on call measures. non-GAAP

Our of package why supplemental useful present explanation financial non-GAAP and measures are an earnings release such to GAAP and investors. reconciliations

Officers, Officer, and Chief your and call Today's together with questions. Khan. Schwimmer; Adeel then Michael the Frankel some hosted conference we Co-Chief call is prepared Financial Howard for will by They make Rexford open remarks, will Executive Industrial's

I will call to over now turn the Michael.

to Quarter cover details our our financial Adeel Rexford results, sheet our then operating will Thank of balance you, follow guidance. with Howard will Industrial's and and summary results, Call. and XXXX I transaction begin a Second on welcome financial with will more Earnings activity,

call the will then your We open for questions.

regional delivery for exceptional business team demand push remain of strong by activity, infill continues driven continued quarter. and e-commerce frames. the shorter at completed Our consumption, just Southern another growth robust tenant target and Rexford's California markets time historic levels

to supply that barriers intensity continues lose the new being as low within converted construction market this vacancy our infill Despite tenant limit other markets, permanent demand of historically and to uses. is even

the a also levels next high been market of margin. U.S. these constrained the Scarcity supply to superior higher that target markets. growth, about driven most nation market valued has average that of As a industrial is highly have infill by supply rates XX% the barriers in than Southern of rental and substantial XX our fundamentals largest the California the result consistently

the first about largest rents, Xx values What in over has find a on of we in rental are XX X.X% next prior highest square-foot years. average the the that, growth X the by rate As markets. markets about our nation's to is increased consequence, average building addition higher than interesting

rent Our unique average to double market the markets. been the our has CoStar, according growth dynamics nearly national by within supply/demand driven

reflects than our more However, markets. unique performance of Rexford's dynamics the

the More is importantly, direct consistent of it of result value-driven the our and our of a strength strategy. team execution

more focused focus what cash in of value Our attributes infill penetrate investors, industrial other for a and California the to great translates the business. exclusive into which less be consider enables to creation deeply Southern makes favorable we us and market what growth, flow

our representing of include or completed IPO, flow superior investments our XX% and cash NAV ability XXXX translates which identify through since to marketed about qualities these off-market and First, transactions, better lightly source into transactions and growth. economics

and our Second, these to increase modernization capacity property. include flow value of repositioning through underutilized and cash industrial creative

operational excellence integrated and outcompete our time outperformance service. enables drives leasing, on finally, to operating asset our We cycles. management vertically And over customer through platform and believe us

quarter prior by share over results. share XX% share by to to core per We turning second company's XX% FFO quarter. and Now core our the increased per of $X.XX FFO increased year

by XX.X% by Our a GAAP basis same on grew and a property on NOI X.X% basis. cash

on on our X.X% basis repositioning, stabilized a under was a and NOI space of impact X.X% GAAP basis. cash same-store growth the Excluding

portfolio Our XX% closed stabilized occupied. approximately at same-property quarter the

for signed We levels XXX leasing square performance Our quarter. during second leases million feet. record X.X reached

leasing XX.X% were cash an Our exceptional and on XX.X% on a a spreads GAAP basis basis.

on cash GAAP basis basis. a on a XX.X% XX.X% were spreads our leases, new On and

second $XXX $XXX continue flexibility lightly absorption million quarter with fortress quarter, million growth, maintain second marketed or bringing To we regard With to transactions. emerging upon during like investments a year-to-date through support feet. to growth, the for we was XX% was about approximately our XX% capitalize this us volume the of to external square sheet, with rate to retention our and completed Our net maximum of providing opportunities. investment XXX,XXX this completed low off-market year's leverage balance acquisitions

Our quarter ratio to end, was net enterprise XX.X% total which approximately X.Xx value. equates debt-to-EBITDA at to debt

range As company's pleased full to our now of a we that per share share. $X.XX result in our Rexford are of and announce are of this core outstanding guidance expect increasing team, execution by year FFO to we the $X.XX

growth we and reflect position, performance we be about upon unique market As opportunities. future the couldn't excited our company's more

XX a X.X% fourfold industrial our IPO infill portfolio we've our Southern the of six Although to over market. years, grown our share million since feet square represents portfolio only California

sought-after feet In industrial addition, as industrial through buildings about exceptionally value-creation the and California, to of and existing repositioning prior Consequently, most billion nation's within Southern we built extensive. renovation property square opportunity are positioned is a consolidator largest market. our X XXXX, with value-driven infill well of

and not acknowledging our their Finally, that tireless without and creativity, success our thanking for achievement. would comments and team complete our enabled dedication, be excellence teamwork Rexford have

to to I'm Howard. turn the call now over pleased very

today. Thanks, estate industrial to occupancy remains California owners industrial well-located that everyone, strong levels. market rents infill Michael, thank of and exceptionally you, with driving favor a imbalance real continues for The joining us supply/demand Southern and

rents exclude second over with the basis asking weighted-average the markets, up quarter XX on which Empire, Eastern the a Inland at ended X.X% X.X% past vacancy, Our target months.

at to acquisitions X.X XX% In East industrial activity, of located submarket, $XXX in LA completed lightly in million recent through XX to during second transactions Central the portfolio. relationships. Approximately square-foot valued totaling research acquired property million. these our units we million and were or With the quarter, sourced exchange proprietary for an UPREIT $XX.X partnership adding approximately investment feet XXX,XXX off-market transaction we square April, our marketed XXth a through regard broker Street, and

new XX-year quality stabilizing with an We shortly yield. tenant closing and at the a a X.X% after completed lease asset approximately

North counties. Valley, $XX.X the located industrial projected for of X.X% return The with $X.X in generates over Gabriel of on property square containing located portfolio XXX,XXX We yield a feet an in total leased initial Diego X%. square-foot, for Drive, acquired stabilized just the a million San San million. a also Rancheros Diego We San and acquired X-building submarket XXX% portfolio, cost Orange XX,XXX

The another acquired enhancements, transactions XXX,XXX Waples an industrial Central property XXX,XXX in-place million. containing on largest of thereafter. Fernando located submarket the return the we San X.X% in high off-market square-foot year a to image this generates a leases Court, quarter, park, leased transaction, for portfolio is be our yield of estimated feet market Fernando in In located X.X%. Valley average. The XX% XX% with $XXX.X acquired industrial yield we $XX.X After initial initial approximately roll LA off-market vacant below we San Diego Business project submarket Center, X-building, a million. for and and X growing value-add In implementing certain lease San building X.X% square

X cost to building clear to is rental into space, the X.X%. demise higher We XX-foot value projected intend on our units and create return total stabilized

also Fernando submarket frontage generates to property X%. tenant We a XX XX,XXX for industrial In dock LA a an transload in a Susanna is $XX.X leased Street, San May, million. square-foot, $XX.X the Valley X freeway acquired for the and Oxnard LA initial located million.+ single X or property position square-foot, facility of The fully South we in Road, located yield about XX,XXX acquired Bay submarket

a X.X%. yield to The tenant fully initial single is leased at of property an

X% distribution XXXX of Road, industrial an Fernando acquired million. at X.X-acre located Valley property paved leased and We tenant the for Fernando development the also submarket a building. single in $X.X San new yield initial is LA potential site fully future a a land of for San The to offers

We also Road, LA acquired Valley XXX,XXX a Turnbull doors, building square-foot, for Gabriel $XX.X submarket dock in the with XX-foot clear Canyon industrial XX million. located San

a fully with estimated in-place approximately yield an at single rents XX% tenant below is property initial of leased to to market. be The X%

Empire comprising fully will June, in developer complex, we of industrial space. The be development an submarket development $XX.X in entitled as warehouse plus million seller upon million Inland XX.X-acre serve of X-building additional seller XXX,XXX acquired the square-foot, $X to construction West for a milestones. state-of-the-art released Finally, meeting for certain to holdback site the a fee the

The X% to in is of all-in quarter project total be stabilization. to and cost is completed about expected million second for the a of yield at XXXX scheduled $XX.X

repositioning our activity. to Turning

targeted we half on feet total return stabilized for South Carson lease Bay West with in X.X%. square-foot Street a Los second of with XX-year, of achieving year. future quarter, Angeles a the several midyear, second repositioning stabilized XX,XXX million tenant, cost under the submarket we square the to completions X.X this During of or At development a credit have space

dispositions, industrial square-foot, XX,XXX a $X.X Orange a XX% June, in to regard achieving With County we complex sold for IRR. in million, X-building

and recycle We sales opportunistically will to continue asset pursue capital. unlock value to

technology of and investments leverage our customary Finally, we of deep strong and our After the to acquisitions. as add pipeline half of closing to due and new to LOI research of our subject industry a another have proprietary we relationships conditions. $XXX completion satisfaction contract million diligence of or first we year, under continue

are more We will provide as details transactions completed.

to the Adeel. turn now call over I'll

results. Beginning operating with Howard. you, our Thank

for For attributable per compares diluted stockholders $XX.X the or second quarter This quarter was or diluted per $X.XX common million share $X.XX $X.X the approximately XXXX, to income fully net to million XXXX. of second fully share.

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

$XX.X $XX.X Same-property XXXX, which an same second quarter X.X%. in increase with million million quarter, of the compares in the NOI was for

and by expenses a were same-property driven was NOI revenue, increasing basis, Our year-over-year. X.X% XX.X% X.X%. same-property same-property NOI operating just increase rental increased essentially same-property cash in by flat, a On by

financing now our balance sheet activities. Turning to and

growth, seek we flexibility balance position us drive to As opportunities allow well-priced sheet our to we capital. liquidity and capacity continue and to access strong to long-term a maximum maintain to intend

resulted approximately million shares second million a price through the our second per $XX.XX cash our in ATM of X.X approximately issued quarter, credit the million. $XXX $XXX the we of availability Rexford weighted-average which full stock we quarter, proceeds facility. end at common on $XXX and of share, of to had of During At net million approximately

We of $XXX a position until availability our debt is million ATM strong liquidity ratio XXXX, on our with ended June had also no quarter and maturities debt-to-EBITDA the of with X.Xx. net At XX, we program.

a activity. stock With for unitholders XX, of Directors July of of XXXX, declared regard and to XXXX, our on dividend placement, cash a fund record million X.XX%. including million of with and be on repositioning and notes XX-year The notes In a used unsecured $XX a closed XX-year to private of Payable proceeds of $X.XXX third XX, on dividend, $XX of our quarter XXXX. acquisitions per September July, common will October XXXX. of the million rate on near-term X.XX% $XXX share rate we Board to with XX,

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

guidance Finally, our company's to we're range of per $X.XX full range to to XXXX $X.XX our increasing to a for from core per share. $X.XX share year $X.XX of previous share FFO

guidance XX.X%, same-property same-property portfolio to occupancy range of up same-property Our our portfolio to range assumptions: new XX.X% XX.X% range by year-end from following from to to XX.X%. previous NOI to of growth up XX% from and stabilized up is year-end of X% X.X% XX.X%; XX%, to supported XX% to from X.X%, occupancy updated X%;

guidance impact The does eliminate capital unchanged the information detailed our we on our when rest activities have are our been supplemental that of XQ this page That prepared package. typically metric. completes remarks. our XXXX our announced, cost transactions or yet XX and or market calculating costs that or not any note Please acquisition not of include guidance that other assumptions

open we'll line questions. that, take the With to Operator? any

Instructions] [Operator

of the proceed. Our comes Please line first Bank Lynch. with Jamie question America Feldman Merrill from of

ask in to was San I return. talk it the stabilized just I the said Fernando you demand? Can And upside? you X.X% you're What then, business seeing I - potential Great. Thank to park. think terms you. start of want occupancy guess talk about about a about just you tenant

done all comfort So what work? you number gives you've the kind that at after of

for question. it's the Jamie, Thanks Howard.

A market. that been in So really the bit a Center San a Business project Class Fernando is mismanaged. It's

there. So building on - really into some we're It bit value there's of what vacancy. rental that some it It's really X we're deferred to maintenance building, modifications had and we some one can is actually a and doing demising units. do drive

and were We've in-place we're pretty we'll rents project, a on close those market. close one I setting completed. X construction units, the at to leasing end to units XX% below actually think I pretty when other the - But deal probably expect looking of is that up

The upside. yield happening. great is role the X.X% is some there lease-up and at really initial So some just that's looking then

X.X% in a the will climb that after that X% over stabilization. not-too-distant future that's project So

add anything this the occurring. hear you Michael. I'll out is growth just yields, Jamie, us And future close has assuming we're been when to rent that as not typically, project market

So outperformance. for just there is like that's we But to rent. how room frankly, under

talk helpful. you those That's from cosmetic year command early And can read about you've logistics. expirations then Okay. leases? labs got on Any and next

Yes, it's Howard again.

progress lot actually a on expirations. of making we're So those

XXXX. at If were I those revenue we've done expirations XX the discussions quarter, you XX% top this if look expirations. you of that January starting that of next we're XX% think think for in expirations And I past represents XX. in And our at occurred top XX% XXXX look even about already year renewals what of after with of terms

I in of those are those trending of we're terming our as think And out. lease So - ahead the we're far term expirations. terms as of some those also renewals well efforts

our this you've think about past. X term lease which average above quarter was in seen well past is the I years, what

are So list? your X anything about specific those leases? on those top Is X there tenant

Well, to XXX,XXX-foot And building. is discussions of wanted the subleased and go a far we've there They've actually already, them XXX as that don't they from subtenant leave. talking - intend marketplace they for even in we've to had early really cosmetics, been leave. their if them. it's nowhere to as to Frankly, They it. out

fairly we're we point not be we'll able it. this of comfortable renew it's yes, to them, but at XXX% So - that

also? that a services top logistic tenant are command then And

South same The has story Bay there. X.X% market vacancy rate. Yes,

is XXX for think in And time. They year. moved there. this again, They pretty So a interested the space feet. if comfortable largest building California they put to XXX. And space, we in downsized XXX And XXX We million million in that's into tenant have leave. their a market go. actually the like actually out that's they're of had the them region I to square the some Southern earlier do nowhere short temporary in

stream space ability we're pretty out of an as our in confident income So to maintain well. that

Our proceed. next Fargo. Please question Heck Blaine line the of Wells from comes with

Hey, guys. morning. Good

industrial deal there on business have in the and recycling aggressive some market bidders clearly, properties. transactions recently that strategy? guys any about change your or the been So way flow Does capital think large you of your

frankly, to portfolio larger underwriting or it's Thanks There the business for we you. how model been doesn't see hear have how impact Michael. Good our business our Blaine, from transactions. Hi, or some question. transactions. Really, we're

went strategy I think if to the been you portfolio since focusing see their our transaction activity, every it's indicative a years executing we of the we get we've years surge portfolios. trading you yes, institutional ago. little same X few in that in about public And mark-to-market ever find

we've it's more unusual. portfolios, year So seen unusual. of this The not in of not year of large certainly what activity indicative is terms sort than years It's seen prior. we've last many but

And Howard. it's also, Blaine,

of yields are California see well very trading does which interesting even in kind extraordinarily a Southern trading most indicate what for, below yields, think that we're low likely pieces larger to portfolios are or a I below hearing them X% perhaps X% the and is yield. what's at comforting those

All right.

on high And the That's this keep occupancy steadily rent was quarter to I XX%, about and pushing then desire strong Okay. harder you retention maybe do high helpful. the how you see even at think guess, extremely to guys rents spreads. very But continue versus renewals?

Blaine, it's Michael.

roll and we talked with past listing with As often they're doing because tenants. at have seen rents. balance. in hard, think And our we're higher works the tenants we some our renew team not this maximizing I you've re-tenant a directly about we our think And tremendous to a tenants and could us there's wanted quarters, that leasing who we we've at And job and work stay aggressive, more a in great works brokers rates. much

might truly options that those of fall these markets. hard very mentioned, how we few we as and level And we're Tenant percentages an stay today, keep and Howard markets. occupancy roll levels exceptional want is But at in quarter-to-quarter seeing of who predict tenants is demand it's just I these in to think those have place. historic to those in what who

So performing for you're us. seeing retention really quarter this

have any in guys specific for you Do expectation retention XXXX?

really tough say. to It's

lot a of and of end the year expirations commencement through have still We the activity.

tenants and hard wouldn't - rolling to to primary time that value from - been So us a to and speculate. believe so because is rolling - But much I it's we and by don't hire retention time paying tenants. metric also for we've creating

rolling it's small, So a of the year. tremendous have the through just number leases we of end medium-sized -

to modeling, minus. necessarily probably to been I But your encourage XX% XX%, think wouldn't I of closer terms model we've or you averaging in plus So retention.

of Our Citi. comes next question Manny Please Korchman from proceed. the with line

Hey, everyone.

Just development if at, it there the you where that or wondering do opportunities either in do or to it? looking for you you're out the building yourself thought structure hire of grounds were there someone it same other where is you seller

that some We've a transactions lot It we prior even project development finished - building. in that County now stabilized a one closed in any would think what the smaller feet. right it Manny, Class there opinion X.X% for. the sell have in I of difference A I about versus and no developers to them But stabilized of place that with return. out leasing there. be of at pre-selling to and project closed it's were structure the we're Yes, shouldn't of the past. we talking in think Ventura We've that the a XX,XXX out Howard. lease And able was the completion It's similar last was developer to a actually fairly year. where similar project Market something

they on on forward worth a the some I to seem what X% mean vacant is, - think that conversations commitment of building. they're had, by I've And returns

Rexford something I expect to to other transacted we in. not about we what this people X% project that's on attractive return, very stabilize obviously, And worth. are that's that So described compared when at that these believes that a feel

So us, close to across particular to actually bit tied developing. - we're a to need yes, quite larger needs close. where for for occasionally, part developer little They this something this going a developer did It's of a come while. thing up had

There's to they which intended component, a keep. retail

you decided out quarter helped might it construction return at to And stabilized enabled a in markets. So look amount is also our occurred really and is from this looking square removed Southern it's billion the heard interesting a over and this you, was I little at of much do feet the to what have us about we a much Angeles on higher deep them interesting, dive point past marketplace, product actually market mention just take achieve how the basis. in that greater Los us the But is and also half a found X which that's in I California, markets. being And to market. of

about And I market that's feet rest added line. XXX that, of square difference over Whereas million feet XX years, on removed. added of other feet, square Inland the had construction today, added the supply was in - was the million we X.X that think and between of and and XX.X million you time about about net under look feet X there's it side at new Empire, - the million the square

mostly on, years, that It's type of a past bigger Rexford focuses sense the product, of XX makes of type built especially lease much the markets is rare a in of development or that been there mid-bay product sort bay product. that been which yes, smaller hasn't infill our fact. of in box to lot the for when find any So in it's the

million put in out taken leases. so And been product dwarfed that that or the of and has other the the Southern developed by has by to Manny, perspective, X feet amount infill is the in California market that square way, of converted to been

So marketplace. it's unique just a very

could off-market? institutional the you're relationship a fund, product of the quarter to do Or it Are sort bought such hit that go looks their - came you that what for? matches portfolio likely they to from maturities Just of think time become you especially fund. buyer their an like you more less the in or they if set larger lines looking

sellers. an those is unusual, We're lot pursuing time. ask product of you do we to types actually in pretty off-market deal, of marketplace the find willing from It's but all one that a the

them. We have relationships with

But internally they the see that. going able you're occasionally, like expose a being seller a more to run So with typical process. be an us property transact to that to it's required institutional to so market

broker Valley. was very we on of market. comfortable were us were - relationship with They and for Fernando was in that number the agree very own and comfortable million we them, deep and over San this a we're between just ourselves the often because their transaction feet in X there. This We

see ability the buyers most forward even or, product. the to a have little we owners on better most frankly, So than

us, a And just so for unique opportunity. it was

can it's great is, question. The part think non-real in fully step market think to back private And market process. general actually about and out Manny, question is the individuals, the part far a there the percentage is we our we it's And acquire estate market and market. of in largest Michael. think by institutional a hearing professional your of smallest that I the smallest And overall It's marketed of without I'm share what ownership shares. off-market I are hands, ownership, think question, I important Because there that owners. - take in portfolios

day of more And you the a of some owners the owners. are commonality so conversations that And owned that the have interesting, range have owners. institutional by of believe upwards and feet will we these the less lot passive is of probably ongoing or represents that them non-institutional productive. with square that they're we're of we or end And private that at X be tracking owners it's private billion a really with

create looking last striving They're in every value aggressively value. portfolios. forward their to not portfolios necessarily and to investing their not dollar They're out eke in

the both markets. a our embedded infill ownership opportunity and ownership And of value-creation us, private institutional so there's for the tremendous within among opportunity

an our business So part again, of model. just that's integral

Capital Please next line of with Chris comes from question And Lucas the proceed. One.

of the years dynamics you've Hey, the I relates had now a good everybody. to kind and afternoon, a about rents curious job new in did number to as Howard, great of it as Actually, guess you where of from of talking really getting sort say, I'm market just displaces better are supply. of higher two, use anything growth. the that on rent growth there a and existing or you to opportunities land? next meager point dynamics the we strong or in of very industrial for changes Is rent And see, year that supply changes? robust

industrial really at strategy higher we the the able is of additional to Well, of some unlocking Yes, rents. our we're we're on of supply a it's these still capacity in need to just project land going sort these There's supply. more buy. to do hotel, more converted and and older residential part some just retail, no worth to site, be lose and industrial in buildings markets, than high-rise value put of values more even that it's the a - the

a fire upgrading fire suppression XX% mind, by A values question systems; we're within building more the basis rental skyrocketed. to capacity back great just because example rates, on the keep is on to - the create the But to of codes. land XX% in cubic your have sprinkler able

be you you rental although development. look, that to it some mean able rates might everywhere So do up, have doesn't moved just

X.X or of of makes challenging. land sudden some into $XX, seen $XX our range right tighter foot or go in a escalate now, we year - years, in a saw all a all year, infill the development more the You've the up which markets, from it past

in And So of we and the and continue a going of But some development find floodgates that them development. can create to be more that so it be attractive some we opportunities future yields. the we'll to at needed sense near part a see unlocked stabilize aren't lot we sporadically. to make more when try

getting take off-line just to guess, follow-on the order I about some you just expand a guess than are on maybe, in or the point existing and getting that you assets talked then of would are demolish a creation. I sort actually, point value for to rebuild you some it's your are capture So of getting but where more be building - portfolio you where way value? would on in and systems upgrades, where either rents the to me

good question. Yes. That's a

new then of infill First and a of markets, markets, in features. to looking markets help into non-land-constrained of development, everybody's quality land-constrained term best these modern it, infill that you But really call you are product. claimed the have can't that not all, for differently a a relative move supply you markets the than function where we We functionality. always always lot and it type understand risk

Greater What we building vacancy their the markets, for the is needs a on solve for LA, for find these user - to looking on instance, infill had work is the in best and markets a X.X% rate.

So options are fairly limited.

dramatically. and replace about the of building part long-term may And see there. for not we to changing land still That's the covered value. the most buildings own, here or don't we part, not these is underlying for down land So place. of some say a you for than the higher supply us of most existing acquisitions the really the road, yes, But that the it's buildings value think X

existing there off-line, you tweaking I it's only our do and or Chris, not thing look Howard that place. we Adeel. added, constantly - that unlock would the that we're meet on value Howard look definition you completely of right? just activity repositioning doesn't talked buildings the this is add but The the and a building to take buildings about the months more, our repositioning takes see necessarily spaces to consistently that have just the supplemental, we So take X for down kind if where can at page a at

UPREIT it downtown feet, not And the a It's had it think, we yield tenants just XXX,XXX think going of asking, I LA, the you're a are just us that of transaction. Chris, down but we years example up, extensive more leased And an belabor example the I happening bought and in was so great property ahead what had at willing to subject, capture of grandiose after on versus extensive that's page sense transaction. pay days return. that stabilized buying about better to that leased building it X.X% X.X% time. within mentioned and, we really plans at rare repositioning our for space. period the think to put and We And and have to in just XX I that I an taking XX it plan. the market But for and made it what's program

to a balance a Adeel, And you Okay. second balanced bit, Great. more obviously, up really ask the sheet while in - quarter, ticked first question I and you acquitised little helpful. just the a chimed That's the you in, about in lot over want maybe the quarter. leverage

about given the activity your about how flat we thinking robust should Just or of thinking leverage about of back back year, sort the we year? toward levels, trending the be thinking here of be should Or sort back leverage the the of half half goals?

Thanks, for Chris, Yes. the question.

earnings So facts, about we post $XXX basic the cash discussed million just the remarks, and placement. as million some in right? with opening of quarter $XXX ended quarter, private We

numbers if liquidity. $XXX the credit availability of we million effectively that of facility, million $XXX $XXX around under $XXX and have put So you, million, - cash right? million of about kind full those plus you X our So plus gives

start. If you against of kind us gives of kind right Esko a a very nice that million put of place $XXX to it

call about the we is. sheet is the we've other think it prior So in the I like and I that the way point - balance talked

to I if and strength at can levels. operate we like is we that think those

is important that. we'll cycle, in maintain private the to sure maximize social the for I is saw balance the that along just strength to to try When reference placement, working grand the did the this of that of that that's try like part and and But NAV just of making something sheet will out best there. we the in at continue think is just accretion all keeping an us, the points FFO we especially fine. scheme other very opportunity the capital So we the of

the So I of to that the We'll of our think manage ability. that is try strategy. to best part

with comes Our of proceed. next JPMorgan. line Please Mueller question the from Michael

hi. Yes,

leave, rate mean, doesn't market assuming and space functionally, probably they work just so anymore the the them? I what occupancy considering work, is Is and high. when not common for it's doesn't curious, - for are Just don't reasons tenants it it in it? renew I'm the

At Mike, it's reasons. point are in growing. be cycle, still the going market lot Howard. of a it's to people Yes, this

So that of times, them their expand accommodate we project. a can't even need in lot building in a or larger

So sometimes space. more they're taking

model yes, really feel in able is is And a changing. we a times, that business. is pay tenant Sometimes what you space the worth, isn't happen business lot their of rent a see to their

the of forth or and the whatnot. logistics more is than more real sensitive manufacturers some that market yes, rent lighter the Those - to trends in the typical so today. we're in pointed is - past, seeing just that able out are no them But more lot value company on real estate. of as the be of to out the vacancy, that But really we've forced a lot of a to the end our capture

Q&A of End

back session. closing Q&A our reached the to hand for end of over have floor management to Allow remarks. the We me

just about We in to and we of everybody summer, joining forward great months. us thank Rexford. look X continued to connecting your support And everybody. Have today for want a

concludes this This thank your you. And you time. may for you And Thank line participation. at disconnect your today's conference.