Rexford Industrial Realty (REXR) 12 Feb 202019 Q4 Earnings call transcript

Greetings and welcome to the Rexford Industrial Realty Inc. Fourth Quarter 2019 Earnings 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 conference like host, to now Mr. would turn over the your I ICR. Swett Steve with ahead, go Please sir.

We Rexford XXXX Industrial’s you fourth thank for quarter earnings joining conference us for call.

close, press Investor the section on www.rexfordindustrial.com. yesterday to package at Relations release website addition a supplemental the after In market we our posted in distributed

in and Litigation Securities Reform of XXXX. management’s On your contain Private today’s remarks call, forward-looking the questions to answers statements as defined Act

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

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

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

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

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

turn the Michael. call to over will I Now,

earnings and XXXX Industrial’s financial our results details results some opportunity, acquisition our on welcome Rexford then will our and summary will I our cover fourth Howard to with and perspective with quarter will Adeel operating follow market you of on begin Thank a call. more and guidance.

then will for the open questions. We your call

fourth with the full year and pleased quarter very are We results. XXXX

value to market. continues investing team Our create the by infill execute strategy our California on within Southern industrial to

quarter. per was a year-over-year. FFO XX.X% over which a represents quarter, we increase FFO XX.X% of of achieved share year $XX.X prior the company’s million, which increase core For share $X.XX the is Core

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

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

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

We price X.X% share million acquisitions XX.X% on by cash for completed per disposition. a the X.X% core year, also X.X% company’s grew for FFO and quarter $XXX of basis. on basis $XX.X approximately And by share aggregate million Same-property purchase completed and we and of during the on NOI a XX an basis. a GAAP full of increased

NOI proprietary totaling feet of impact for California and the our GAAP a X.X%. opportunities lease transactions to representing increase up lightly target of properties off-market and sourced in stabilized industrial cash square Excluding our increase acquisitions of cash flow through increased footage. of We with were value-add square and $XXX the X.X XX% of completed increased million and through we in method XXXX value XX infill X.X% investments providing market Approximately, investment leases million marketed over XXX from portfolio over time. Southern XX.X% or repositioning, NOI total XX% by renovation achieved acquisitions originations by and same-property signed a repositioning

of dramatic X.Xx year a debt was which the impact maintaining while year at and our environmental substantial quantified and which positive strongest industrial associated release nation’s the buildings, numerous higher inaugural, growth detailed achieved our benefits for governance was ended XXXX our within portfolio and value-add with Rexford’s ESG We of the environmental, our the of also notable notable leverage The fortress-like largest also model. business execution the repositioning use. the adjusted industrial industrial value social unique through EBITDA. net report as to the unique recycling balance of team low drove sheet market,

incremental our in fifth to our XX% the of these exceptional XX.X% and IPO $X.XXX our announce with quarterly This quarterly by raised dividend year that to pleased we As are since consecutive dividend increasing is a dividend XXXX. by now results, a result market we driven are per the increase economy a including we have share. to continues conditions, supply, Despite regard to largest Southern demand supply with the to we of diverse With factors, tenant by positioned continue zone demand few consumption. experience key a be as nation’s a limited and extremely most substantial strong California imbalance.

growth benefit We also demand e-commerce timeframes. for shorter continued from sustained and the delivery

to Our the infill XXX% Southern regional market population. within and portfolio mile within prime California last nation’s positioned is industrial located largest adjacent

are enable locations tenants for to infill short the critical delivery demand to increasing satisfy Our timeframe.

increase and to U.S. as a an barriers diminishing to through Meanwhile, in value on be developable industrial lack product supply, large from the other California certain are Southern limiting to markets land, construction to market of continues new conversion the side, infill removed experiencing experience continues higher usage. non-industrial due supply although supply permanent

future positioned QX full $XX a equal is essentially NOI. at potentially almost these NOI by As into of compared our we result and is XX periods, XX are go-forward additional acquisition driven assuming example, portfolio, generate in-place factors, XXXX NOI to favorable our occupancy next to operating for million to growth positioned contributions no believe to XX% the generate portfolio about over following annualized growth months to to incremental we the

approximately million rental and leases the estimated completion feet square with of About through of up rates about lease the leases. million un-commenced X.X market, of million million million million in be from feet to but quarter, $X properties below about mark-to-market square repositioning, fourth XX% the $XX.X $XX.X impact from X.X of executed, expiring about of the generated acquired in plus by $X properties

we accretive in within California industrial acquire infill demand will Southern volume continues to growth. high pipeline investments believe market, as which we drive additional expect NOI addition, In investment and quality, grow our continue to to

excited more our about be opportunities. couldn’t we closing, In go-forward

Adeel at outstanding the are Khan, Officer, Each Financial of In team X exemplary over Our we acknowledge exceptional execute particular, to thank our would our his prior level years. towards them for to contribution service collective continues at an team to our members. makes grateful we and like Chief an and success. Rexford

serving CFO we as stay last he his month, support and in Adeel plans to announced the of transitions role. as as CFO Adeel a role we seeks excited with professional new are go-forward role new into and Adeel thereafter, and establish he Rexford out the his we for CFO personal new a a consistent chapter objectives. our As is ultimately hope onboard at until to career transitioned

to And am turn very I that, with pleased over the call to Howard.

California Thanks, high and occupancy a landlord Michael us everyone Southern demand with market and for levels. today. infill outperform strong thank allows market to us continues joining maintaining maintain driving you imbalance the supply rents that The continue to industrial

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

XX We growth. million, Turning to year acquisitions, our XXXX of was $XXX acquisitions square stellar for total added a for the full to X.X portfolio. million which our completed feet rentable

X.X we XX transactions to these and $XXX XX% approximately lightly of marketed square off-market adding million quarter, completed portfolio. fourth totaling the value XX% add. of the with million acquisitions the During feet transactions were or

superior Our to deep terms derives result unique Rexford from ability investment opportunities off-market benefits and source to of in our market significant which sourcing returns. in relationships, methodologies

remained yields to X.X% and projected Our in very from quarter. the X.X% stabilized accretive ranging attractive

are constrained the Commerce rents approximately for Slauson within acquired is October, estimated fully LA million. square that to located Central market. The XX% industrial In submarket extremely $XX a property leased Center, in below foot submarket at complex be supply we two-building XXX,XXX an

is and yield initial growing Our X% about thereafter.

in foot The the property or San for October, has by LA $X in-place stabilized leased As XX-foot yields is million. submarket are the long-term X.X%. transactions here two-tenant I fully and clear square a Street, yield acquired property. West building yield low rents at for basis. increase XX% for with Diego a we the un-leveraged note, initial on below building an Point, million. The XX,XXX of in total renewing Crestmar a basis South reference acquired a on cost is industrial presented the tenants yield coverage to repositioning X.X%. X.X% an initial Also, foot property opportunity projected Manville subsequent We XX,XXX the on of market submarket Central $XX.X Bay approximately a The in square

Orange Avenue, we building land cost future of a square below on estimated acquired November, Motor acquired LA yield The located fully Rexford X.X%. per leased for $XX foot. industrial in opportunity value which X.X-acre Berry clear submarket completion, A equates our with to construct million, Way, yield November, parcel. and our million. is a land total the be Class located land a $XX.X square a San value-add Also North X.X%. intend We infill for $X.X foot in in industrial offers property foot, market XX-foot land square this site on three-building to Gabriel County In Valley At to is property the XXX,XXX excess submarket initial XX,XXX

property square below rents tenants LA the in port located Street by for fully is E million. three for occupied XX,XXX market includes Bay East acquired land modern The XX% approximately adjacent $XX.X also paved container We storage. South excess submarket foot and at

initial with approximately cost Our XXX,XXX the X-tenant XX,XXX project Class $XX to building. square aesthetics Street, the for the functionality complex X-building improve square located a intend estimated County A also building remaining we stabilized X.X%. West yield X.X% the foot feet and total redevelop million. industrial is and state-of-the-art also at one for and in a is on contains submarket and yield acquired Monarch Rexford The Orange of lease buildings expiration,

X.X%. stabilized X.X% on yield cost is estimated projected Our be initial yield total and to the is

acquired Del feet by property about lease $XX December, LA XX,XXX a rent stabilized foot submarket approximately generating The expiration, building total located million. value-add at At The cost Boulevard, projected is X.X%. be we excess market. tenant below we stabilized XX% rents in Valley yield on rates Also drive December, re-tenanting market in X.X%. Distribution for lease LA about million. rents the storage. single approximately fully for repositioning Pomona Center, XXX,XXX located with below a square in contains X.X% in-place or yield XX% we In contains is Amo the Gabriel building on acquired a higher expect for the industrial to estimated initial and expect The land industrial to market. South executing leased X-tenant flow of total submarket Upon drive and San building to yield at to $XX cash perform expiration, is by projected we to repositioning, container minor cost Bay square

County Orange a yield long-term acquired The X.X%. sale the XX,XXX located transaction West Street, tenant square building property an submarket of Euclid acquired Rexford in was at foot million. Finally, leaseback $XX for industrial initial single

million unlock properties basis Turning value million. on we to and sold opportunistic quarter, an $XX.X we to for XXXX our the fourth of $XX.X total to multi-tenant expect assets and an to sell capital. aggregate disposition during brings two continue dispositions, recycle to This

moment to on value-add update a to Now, like take you program. our I would repositioning

project in XXX,XXX Oaks repositioning The achieved fourth by exceeding quarter, completed X% project on has a XXX of basis building fully foot foot the stabilized in points. Ventura. return underwriting Mission we square During initial XXX,XXX our cost, our square

XXXX, square For yield the stabilized XXX,XXX at year repositioning average we of feet an about full of stabilized X.X%.

we XXX,XXX and another or for forward, approximately start a currently X about in start under to Moving construction feet and feet square have XXXX. value creation XXXX pipeline of deep million later repositioning approximately square to

Finally, in announced. conditions. though ahead look due portfolio acquisition These pipeline closing currently includes to XXXX customary diligence volume, terms are million recently our we of $XXX was certainly completion remained million of record and subject which year new $XXX LOI in or have of XXXX. investments under contract, We satisfaction a of acquisitions strong a as

provide transactions will completed. details We more as are

also call the turn over Rexford’s I’d for years. to contributions success now outstanding thank his the will and to over Adeel? to Adeel whom acknowledge past I like

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

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

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

reported share reported Rexford XXXX, of $XX.X million XX, FFO year share the year of December $XXX.X $X.XX X.X% On fully XXXX, basis, compared to fully was FFO full share XXXX. for share the XXXX. per ended per million a company company diluted increase For diluted in for compared share per for $X.XX core a core

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

tax increase Increase property fourth total NOI operating property rental adjustment an by X.X% driven property due unfavorable in quarter expenses. property XXXX. expenses a to XX.X% fourth in increase operating in were revenue with and combined XXXX tax a adjustment same-property was Our in favorable quarter in

by of Excluding and fourth the of increased the on a year-over-year. NOI repositioning, property was expenses combined NOI X.X%. basis. basis, growth, effects of On Stabilized GAAP same-property a increased the a impact these adjustments, quarter same-property net basis by cash in X.X% X.X% cash on X.X%

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

balance and financing our activities. to now sheet Turning

maintaining support our sheet objectives. flexible to continue focus We to on balance a growth highly

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

$XXX maturity debt in million with no maturities being XXXX, XXXX. have our We loan term through our next

at ratio our to net XX.X% EBITDA equates enterprise debt adjusted approximately was which X.Xx, value. to about year-end to debt Finally, total

our April record XXXX March XXth to for February of and of a share on of common declared With our of unit Directors payable as regard to dividend, dividend $X.XXX of first XX, Board holders per stock XX. cash quarter on the

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

to Finally, like outlook I would our introduce for XXXX.

$X.XX of core to within FFO range to share. $X.XX achieve expect per share a of We company

by supported is guidance Our several factors.

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

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

in X-K guidance of the Please including of year our December million, we our portfolio anticipate acquisition G&A, pending non-cash XX, $XX.X to portfolio in full previously remember that about filed from a million the and $XX disclosed $XX.X the range For equity compensation. million Form refers XX-property of as to in-place today XXXX.

any yet for our or metric. portfolio. a compare when And for operating best we for of NOI, we note calculating the believe providing as announced. capital for not core not been acquisitions, dispositions include we that acquisition not this include exclude XXXX, same-store does costs FFO Also, are transactions, this guidance costs which to our guidance only or have the does is Our guidance as typically stabilized measure assumptions performance the finally,

prepared to our remarks. take open we any that, line With will completes Operator? That questions. the

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

I for can know about guess outlook store your I same provide next to you start you. GAAP. NOI talk thank cash out, you just year, Great,

Jamie. Hi, Yes.

So was for Cash will cash, X.X%, just be and X.X% numbers. GAAP higher. everybody, the for outlook X.X%, the X.X% X.X% to so

know expense the And pieces you how you your be, of about? for what's we should you couple of might expirations you that kind talk interest no should model but unique any have other year, about years, be kind I debt baked of can thinking know, next said and about Okay. just over financing of into then assumption the next think we for any

Right, Jamie, again. here so Adeel

the to you we So are that, factoring was but for year. which we placed just in impact that debt the see of $XX going making model year, done debt, million, the debt, fixed full was that certain that $XX are year last in last QX million,

assumed So and also that that that is have which interest the XX-property the next needs for everybody. for guidance into part we flowing piece our was to year, XX, guidance so debt relating factored is in to of X-K going that some be FFO expense model issued the in is December which our into to issued. the also And other portfolio, that's is

Okay. picking some guys what next so keep to And spreads, looks of year? think then these – you leasing on sorry do like like that details,

Howard. pretty Jamie, maybe are we’ve Today changes similar the we XXXX, from in We on year, it’s past, quarter terms are paced, things as impressive we seen the transactions. reported past we’ve just beginning the And in in spreads, Hi, to I’ve what a in of those as where the through lot of but any fast been don’t spreads. of signing really very are high see the market. not

Jamie, Michael. voice. Good to your And it’s hear

about mark-to-market we’ve expiring the is leases indicated think on XX%. that I

Okay. from And me. then just last

how would you of Some business year. your answer have just last peers feels this question? today that time talked about versus How

question strong did business great it as equally a feels It’s year ago. and a

in signs of tenant any change seeing terms not demand. We’re of

you. Thank alright. Okay,

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

morning Good there. thanks. out Hey,

you Can their might or even supply whether disruption coronavirus been topic worried guys about talk chain? discussions just dominating among tenants with any the seen that be impacts to discussion in of the a companies. popular logistics and and have has has clearly you some leasing headlines So retailers been about

Yes, surprisingly leasing the Blaine, question the the is million telling of barometer Hi, small-bay, couple was dock-high us Inland that are it’s a and we really, resurgence best that project well and the Gabriel – a X.X in our we really of One XX% and staff think I is add all people, the of about and few as have in Empire square the Valley Howard. it’s San projects actually, a a really to – they great two as a seeing management property our activity pulled projects. we’re as beginning of occupied in of And million X.X there year. high our leasing they others we the people, one were feet, leasing feet up been there’s range. – the

surprisingly, So occupied are slowdown in I more we would a which businesses. of seeing not by signs those and well probably they’re particular projects, XX% Asian doing quite or any are, think,

their China to XPLs. more taking are also now in different – diversifying us these on impact so they’re they’re expiring have lease they that coming about to right in from few are so even reliant goods not talk tenants already of of are We and space And negotiations a growth from, demand talking the seeing their that slowdown or any as we XPLs. the rather actually guys that all a us where in actually telling are diversifying not are renewal we or some that interestingly, really are again are now customers

Southern a proxy which local, regional or in our or is have periods that driven and be slowdown imports XX% the are a have periods, tenant disproportionately our of where, base reminder shutdown – of port, of minus. other about driven all good we slowdown plus And infill for as consumption. Blaine, by by a And add anything. consumed a seen where a in portfolio even seen would California historical disproportionately we demand it’s that regionally, I’ll too distributed And imports is Michael. to

creative, any was the need due our how it’s has it’s XXXX, because demand at signs they ports For demand change portfolio. goods find actual stated. driven, they we instance had again, in demand where shutdown periods in tenant Howard And all principally source to goods, tenants up. we or consumption within an And labor. what but of in during no the those terms of saw they of driven, get as to letting shown not the The literally

guys Cosmetic lease Then Great, job the that’s Labs renewal great with you on during that signed the quarter. helpful.

the year other tenant? guys is Logistics. Can there speak discussions the probability guys that are think having any with this you renewal Command you of XXX,XXX-or-so you large or I with square expiration have feet just to

Sure. Howard Blaine. This is again,

feet high XXXX at So that if And you renewals those we discussions of XX as leases, of includes with top there’s a their expiring for we that about in feel represents are of tenants. on which, XX% that’s well. top about point, looked XX% about XX And our square renewal at today, expiration. X.XX this all actually certainly also Command, million probability

more Center. was about versus me. from talk of bought Prologis do reported negotiating just of from REIT any it seen deals guys a million $XX traded Great. in I differences you Slauson may Last think publicly you off-market with It have kind I this quarter, large that players? the guys a them property maybe Can was with you one local you guys Commerce some think

say, very all REITs No, know smooth time or a the work I the a sellers when what because Prologis we to professional. it’s as with most transactions go we such would of institutional deal And doing. large with are we always pleasure

come expect purchased trimming opportunity since portfolios lot of down a the an guys more PLD more they or you a one-off? recently from they’re couple of large Do could this is

anything what’s from as about XXX,XXX also to was properties love building purchased other ongoing well. the But, today. buy them, opportunity that the happening was have Well, we predict And obviously, we and two actually in more. we distribution we’d bought or tell them chain Pomona, discussions can’t the you from

Thanks, enough. guys. Fair Alright.

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

of the year-end drop much and sort occupancy at Xst year what’s shows of causing year-end guidance that as for January to maybe significant it the the the occupancy ‘XX stat we – dip if versus it look Adeel, a everyone. Hey, throughout as year, talk ‘XX. you about trend is? your of at Can

yes, year-end number the is XX/XX/XXXX. just that And Thanks question. Manny. of on for Hey, the as and reminder, as a – that’s guidance occupancy at so a a spot

So it’s be to might average what the that for full of not higher. indicative and like is year going the look occupancy

that high the XX% directly is on that The important end at on the with it the we second end, is end piece is of year the the the occupancy note correlated to specifically that the low and not guide, NOIs. are

So from occupancy you benefiting are the year. during average the the portfolio within that’s

that a not experienced two. rectified direct is that’s the things differences there between in timing But than correlation X/X/XXXX, those and nothing So be not could past, quickly more different we’ve that. from what based just are and those pretty it’s those the us you think the quarters, have ability seen – being plus and to XX that renewed over being are to that and push able push higher rents. lot of not take I opportunity leases on releasing a those spreads gives

to the perspective, X think is correlation the is to timing more I that it’s So an than from not nothing but NOI opportunity. X. There

go like is to cash a this we a drive insight us Thanks the and basis on think to of expirations in relative Michael. Manny, little I’d about occupancy for NAV growth give to growth. how flow opportunity joining forward and today. terms

And cash year and Rexford you and the lot if a sitting in of through those here you example, choices. for the management, at you end a have so otherwise if space an I looked were were expiring not of those in our optionality renew see associated next year, the who we at leases with NAV And shoes stay flow choose to infrequent couple give we we because wish a and that of to opportunity not to you will tenant And growth. examples. it’s – drive quite would additional

feet. take have typical say Let’s property, a we space, XXX,XXX just square a

more per let’s as a say XX% and $XX owned well, that leases If to period on while. rent and into maybe mark-to-market for about was tenant few rent, NAV expiring suffered driven that we’ve for we a assume occupancy time we paying And year a years. Let’s a stated, property there square higher in all alone roll the about have per have XX% we in of a by next year tenant foot dip we XX%. we did short have

take more gets another that even example Now, let’s interesting.

Let’s On And XX flow year. of X% we cash in-place the made not year, a a even some rate. rate acquisitions about been leased about look been XX X%. of even at have them opportunities though last though projected And those projected there same inbound our rent. low at they and had XX fully average, stabilized properties cap value may that’s cap creation with embedded have acquisitions may last have

we $XX So property, we XXX,XXX now take rate, cap that at same but square property when rent a it, for that bought today X% foot asset. $XX example, means paid million the

much Let’s substantially assume than that million we cap rent, what cap typically remember which increase we stabilized market would are saw lower And at. for rates that straight of that’s are buying $X.X let’s the to rent rate drives XX% line. in million, a a X% fall $X that from to FFO bottom

a assume below know X%, around rate although market rates that let’s are So X%. oftentimes we cap cap market

result If you in $XX be worth in take together, XX% asset then increase NAV. the math would would that million, which a

I finish that will a reposition it up option lot. another assume going Now, expiring then we and more some am for just here, let’s but we space one I that example and take can do to that is

Let’s assume X% that square same feet, $XX with at a XXX,XXX asset, bought rent, starting cap.

of of another we we notice, invest becomes we invest have an the stabilized going is. last it’s on say we it’s completions capacity repositioning to X.X% but about year, our million, another last year, that as total so un-levered you all what will million. saw But the purchase assume our $XX if XX% disclosed are to to price, $X not year, yield we every of cost work indicative do Let’s that

creation that would So math about if NAV together XX be about –resulting you would and be there total million. $XX.X value take the

cost $XX about total that’s XXX% – of million. so over on in And NAV that’s increase

And So do we increased by by are we a frankly lot where deals Xx. we NAV NAV of amounts. have greater increasing substantially

at it’s from the I primary not is truly one that tenants and we things of opportunities business Rexford about peer occupancy spaces how a tremendous the other us REIT many the beautiful universe to we a of from fragmented and measure amount internalize any and of the sector universe to company value of think So where in and industrial have of acquisitions, important pipeline here within then differentiates REITs the we are understand Rexford and in that really portfolio model that’s continuous the and creating create our within value. have other our

you value trade us occupancy for oftentimes, So see will creation.

Thanks, Michael.

big and us Prop updated sellers split it? to-date transaction thoughts topics, market anything a portfolio get to trying impacts topic roll changed been your it’s has switching you of XX the conversation in whether with on give and Can ahead the Just your of recently.

Hey, Adeel. for Thanks the Manny, questions. it’s

Prop and So this if so on in XXXX looks ran less our like of would values, and and than is on be current be what in do a complexion the XXXX a were assessed – tax we based the so bottoms-up effective leases forth. we analysis November impact today. The to would and $X.XX terms passed if FFO in of

impact. terms material very in of the not it’s FFO So

years. acquired note The everybody other we X to has which that’s of educated portfolio thing XX% the about is over is important always last been have our

to do benefiting different. are that are we and from certainly, allows I things So think us that that

back. that about increases is thing us the leases of other to allow pass our XX% The

that’s So very spoke why, impact impact. the about mitigated is I the when FFO

this just sure field leveling it comparing of more Michael are little a a in So, with the Howard in us playing us for to be. who set, to add spot it’s color playing pretty going to opportunity and I terms landlords increase. of does the other can And great a in bit see terms am what

with comes from line with Street [Operator Please your Instructions] next question. the proceed question Advisors. of Frankel Green Eric Your

just returns I REIT since up you. of mindset capital of want share and prices have or landscape just bit that the the on you start quite discuss terms willing your perspective Has of Thank the environment come obviously bid markets investment terms what a to the to in changed of are buyers in year. either competitors the acquisitions?

in on think spot way equity, I industrial, that transactions our because so more see it’s It’s see and in first And I hurdle and side I think would think that’s intense with why to question, ago? competitors us hourly And the Thanks our steady look activity competitors or little marketed equity – average was Obviously, Southern was rates particularly strongest of much into we describe your Michael. been working of and and of price. way. lightly speak really cost for comprised so the can’t think Eric, of of hurdle you stock part the forever. lot terms a our weighted cost state that about actually country. of off-market capital on year it Hey, trying change debt capital it’s to probably regard more transactions, the than we about don’t year. which there, and of capital or it debt a the it’s that rates basis, terms that we cost out how daily at the the in California intense for last Is of identify hurdle almost to a the rates market but with are but it almost higher get our of today capital pretty today. us joining lot internally can about world, because transactions that’s of marketed equally average intense weighted we we When than hard our or on XX% cost and

markets. last potential how XX% lot we we the hurdle So light pay hopefully have of transaction sent higher out we – year. LOIs investment and a willing on And staying had those that little sent insight substantially to activity we billion discipline deliver actually see what’s of our a to last to intensity transactions out on the our of been down but gives deals, year, year, staying volume of little amazing more last we in you are keep and with focused, worth that on a $XX.X that had going to that capital today’s frankly, about would true given we we the activity just rates knitting, to deals the of turned we about LOIs

That’s and just much if proposition Adeel, a increase through you you. in reimbursed roll, values very came higher your the XXXX? helpful you on taxes split color. the clarify could maybe XX would Prop had Thank just assessed how follow-up

absolutely. Yes,

terms of taxes. increase maybe higher a assessments, again, terms The are slightly about assessed dollars an analysis the would Keep obviously, now, at or X% this gross million value and we approximately in right in amount today mind is So be dollar $X in right impacted. of direct it’s that are just looking not of on the as now. rest it of increase which

net impact of that it drove most how that’s million to in $X about less of recovering we recoveries. terms are we it’s the which of FFO and after $X.XX than little So,

you. thank Okay,

comes Your Jefferies. next from of question with your with proceed Petersen Jon line question. the Please

on thank which to if and do on the the in indicated guys In if it still through that you could guidance? update units. that put said guidance is how OP there into Great, Curious any out that XX if you your finance you X-K continue portfolio, might I you. to that worked is you property plan know the – there you how

Thanks Michael today. Hey, joining for Jon, here. us it’s

We are but the information. you able this I all anymore not give get just not time, at transaction apologize closed, will to able the once update to information, for

Okay.

So then? but factored it is mean how – guidance the into I guess I

because comment, information closed we know, don’t You so… frankly, we And we can’t haven’t transaction. that yet, the have really

Yes.

But will as you soon know, we know. as

that seeing OP of using Okay. And more having are I your of and maybe or of you as the currency, could speak conversations sellers with mean you today? attractiveness if just you in are more broadly potential terms units less

it’s Howard. Yes, frequency. Jon, have Hi, seen we growing conversations those in

at the would the business where are easier decisions in another familiarity the it’s to appreciate assets in are obviously make attractive think a strength as around of assets potentially understand for what – assets locally. to a from to California, lot people think Southern frankly, These people business their And being perhaps and that more understand able are their Rexford are that we company they California, I used we into and consider with talk much the the a And we great markets. talking have point the in about they people company, Southern to the to people cycle, around this the here focus being I like stable have we into. market country, trading where and be world. owns of getting versus trading for most

those getting transact are So, basis. we that be the that to on unit will future more more conversations fruitful frequently and hopeful we are type OP able into

color. for Thank thanks Alright, the you.

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

Sarah Mueller. for is Mike This morning. good Hi, on

a but given cash range, see on that you portfolio the Just overall has question of there spreads, mark-to-market that been XX% do indicative being today?

little are I question you bit up you breaking am sorry, a the could there? repeat

that guess, Yes, given today? overall cash been being see I portfolio mark-to-market do of representative mid-XXs, spreads in XXXX, the have that the as you

cash Did you as the XXXX, mark-to-market growth question? in was that ask rent projected XX%

that Yes. Is that XXs representative the mark-to-market of XXXX? in portfolio have mid overall been given in the they

about about what in rate think leases, in-place have the embedded we on and I a is we on X% expiring So, a have rental of the course, those leases, indicated mark-to-market there contractually. is bump then XX% typically

color that time. we So can this that’s in sort the point provide at of

Okay, thank you.

proceed with question Chris Please Your from Lucas comes question. Securities. your One with next Capital

guys. Hi,

for doing we about cash what $X there gross on is non-cash in related the Just million the guidance the you from the or ‘XX increase it, associated looks of side? G&A with in on with increases comp. to investments half be thinking of headcount in about is like should how XXXX, increase that bump sort a guidance rest plus are The to dollar of over G&A ‘XX or infrastructure question

Yes, us and joining thanks for it we appreciate today.

marginally, brought think if not is great is and performance-based. the that point, a the facility bulk there is look non-cash which the bulk So on so some much at you but you it more up headcount. of equity increase, And on the of is side headcount I also G&A frankly increase,

the square FFO day, terms to the you Unfortunately, account have today. of the if the the at actually term, look substantially not so won’t whether sometimes of company, growth drives company. you to G&A measure And of And growth, of the the you relative growth at that. if levels it in by measure we growth end receive over been performing which it at then you actual also exceeding portfolio longer headcount G&A that footage, by think than the the find are I high growth it growth will has we for lower growth, we whether

company. So we amount good we leverage do operating think have a of the in embedded

continue two, this relative catch staffing side, growth the doing little years. we the maybe – continue well. and But to margins so company seen to see three on operating over in side, prior operating as to as we the on are the have you’ll leverage continue think a And I up move forward, we more to those year grow margins the of organizational structure grow the

And Chris, this is Adeel.

something the our continues on certain color just And that’s the of headcount to as the G&A. are part add so Just about. about ago people just our in some wanted a you talked the when that’s G&A year just the part the experiencing, also headcount, piece, Michael grow, of portfolio not of headcount square very takes are just caliber footage that that that’s to because that is to of as are add and headcount also obviously, of and you portfolio the increasing costs overall that meaningfully experiencing, leasing terms

on the process Okay, is associated a that, it to costs sort thanks. there the just And with that just is which transition, as relates that extra or is deal? an simply one follow-up of more CFO embedded guidance in

Yes, Chris, Adeel, again.

full year. and and its comp a my essentially took in stock we conservative for the entirety entirety cash XXXX So approach its kept we in

is approach. And that think further completed, further guidance was necessary, conservative announcements but most we the right to I it. have once the can we transition if way conservative and we the So revise obviously, took will do most now,

in comment could search you or Howard, you And that are Mike then terms of process? in where

comment would Rexford the can concrete more but the of been actually we interest little disclose a we at when have But Yes, in say role will knowledge. I that bit, strong. has very, very course we

operating a in of operating there the in side here. on in of or operates everybody weeks we out REIT industrial very in notice X-K One that ago is put to market an in is interested strongest benefits of some we the the the opportunity kind fortunate world finance sending the country. And that are are was

we got of future, company, think our great – barely the terms we vision feel great and I in are create what for are to frankly team, at the out we of going a here Rexford, we we have a truly gate. starting are

And an right opportunity candidate. the so exciting it’s for

quality far, interest are far. we we of received cautiously that so And based have on a high very optimistic so

you. thank I That’s had. Great, all

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

today like for tuning reconnecting On months. X we look about to would everybody thank to in behalf in forward we and the of company,

today’s concludes conference. This

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