Rexford Industrial Realty (REXR) 21 Oct 202020 Q3 Earnings call transcript

Greetings, and welcome to the Rexford Industrial Realty’s Third Quarter 2020 Earnings Conference Call. At this time, all participants are in a listen-only mode. A brief question-and-answer session will follow the formal presentation. [Operator Instructions] Please note, this conference is being recorded. At this time, we’ll turn the conference over to Steve Swett of Investor Relations.

begin. may You

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

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

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

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

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

GAAP such Financial Today’s will together Frankel of prepared the and They Our Michael and Lanzer. reconciliations by will earnings is release non-GAAP your we Officers, Chief measures and investors. to an call our Industrial’s why Schwimmer; and David conference useful open call Rexford are hosted for present Officer, question. Howard package make Executive financial and Laura then explanation Counsel, Clark; Co-Chief with remarks some supplemental General

Michael. Now, the turn call over I to will

to our and who our welcome on will will then new balance more Laura earnings Thank and operating Clark and cover result Rexford third you Officer. of X activity, call. quarter third begin Howard summary results, sheet our finds Financial provide our Laura market Today, Industrial’s and with call and financial We pleased Rexford very I’ll Chief on also your joined we're quarter September welcome this healthy. XXXX hope well to outlook. as you families a brief details

the your questions. We will call for then open

team we to XX.X% include grew XX% within XX.X% from with our cash share the quarter We generated X.X% base FFO basis and increased NOI tenant of of our our credit extraordinary by infill GAAP Rexford a basis. entire strong FFO which Highlights we the a Southern share company third $XX.X are the increase by million hard in quarter and on core resilience a quality by Consolidated following per work very $X.XX. overall of on and the to core and results to pleased California.

stabilized of grew a basis X.X we And on for square property achieved and XX.X% and XX.X% by NOI occupancy We during stabilized same and leases state Our XXX XX.X% property same feet on GAAP our a cash stabilized GAAP same basis. by quarter basis on grew leasing the X.X% spreads our in cash NOI achieved third signed X%. a million portfolio. property

quarter we our the our acquired million. tenants in our October of rent pandemic year are also all color mandates unilateral unique Laura The additional And rent close With third it to approximately During for we that one to volume quarter essentially and for properties property end to tracking subsequent $XX million. million additional acquired suffice regard to to collection investment quarter very say $XXX regarding bringing $XX date five COVID. a collections. particularly the pre truly defer have to of is to to collections the tenant provide the our our strong to under base that fact of high of quality light strength levels. due will infill testament right many California now

pre rivaling about billion of enterprise liquidity total been outperformance position times leverage which net $X equaled our like debt X.X% the to has with fortress debt value. We We the The ended in to a a EBITDA quarters. balance pandemic at we a quarter move of forward. also as upwards sheet low very company's completed low- quarter strongest with exceptional favorable X.X

traded third our focused to be has in growing nation's to describing strongest more pleased very logistics become guidance are the publicly we result, detail. grown which on Rexford market. and will a be As we the increasing Laura fastest largest

Looking forward next asset positioned over XX% internal are by entrepreneurial capture beyond. and management value growth we months XX NOI regard strategies. about add to XXXX XX Rexford to driven very we portfolio into our to the in-place With principally well-positioned growth is believe embedded within

infill the are the is unprecedented market are renewable and our States. strong. depend infill Our as of which benefit accelerated to research critical among well technology and businesses external by growth extreme submarkets. of so consolidate to as able well our location the quality opportunity from expand consumer demand located mile highly energy sectors will and we highly to upon the first new regional in pipeline. after the will operating valued driven prospects We of strongest Meanwhile, as continues the supply space and beyond Further our anywhere and are growth California by factors. The largest demonstrates growth medical of within in the for so-called other proprietary nation's tenant increase target Southern constrained a and a the originations Southern infill tenant last our a be key very reason else distribution, similar to our find Market. California infill range challenged been to our demand large generally a our nation products, Further of our drive substantial quality our investment challenged locations To to tenants. range within begin to Industrial current mission history is they base and markets California within would e-commerce mile sought market Infill be as tenants aerospace healthcare constrained in also for supply infill that share continues our do exploration space across due distribution growth continues sectors. to electric by industrial similar tenant staples base market to many space fragmented in consumption within food exceptionally tenants positioned be pandemic driven the vehicles, ongoing within extreme and infill with our due our the volume has principal see goods quality Further X.X% due largest We Southern believe outside our space. infill generally country Their United Southern consumption to be to not driven within find serve dramatic California. if most

a of these is As as ever. result dynamics, tenant demand as intense

X.X% CBRE per market Angeles rent major growth X.X% equates the In projects compared a fact projected per of which industrial increase now to to nation's year industrial in full through markets. for to County the XXXX, XX% rest year only Los

performance to themselves effective as the continue they that, the our very I'm our team as business. prove the express we tremendously team And Rexford pleased to we appreciation to in as entire most call Industrial Finally, Howard. thank are their you turn superior over for with to and

healthy Thank we industrial infill They Michael and Despite very for and market everyone us remain in have remains Southern and COVID-XX can growth. the how and you, low e-commerce fundamentals third today. impact from the you markets seen leasing quarter. increased California joining demand see associated accelerated the thank as in of industries shutdowns, both persistently markets traditional

a infill net rental growth and result, California. rate to we As see Southern absorption in strong continue

rents exclude which up quarter first Inland the markets asking X.X% target the with vacancy at Our despite Empire COVID. year ended over year Eastern

achieved XX.X% the generic warehouse lease leasing We of levels. our new in or feet largest well demand vacant at we COVID distribution volume projected to our spreads of During a aggregate the basis. and rates product. pre a are on experienced speaks which exceeded move-in are X dynamics generally located COVID new leasing and - activity pre high square and of incredibly by cash toward as for quarter demonstrated our COVID increased resulting quality our basis million an space spread at XX.X% driving leases directing ready impressive rent spreads GAAP growth impressive on signed

our portfolio deliver in complete square Turning years. Details complex building in an located acquisition modern rent parking leased over million strategically XXX% at we distribution Point the posted aggregate upside yield. The to sector. X.X% recent which Gabriel acquisition In approximately found central loading million. properties is stabilize for in next our five and Park to $XXX Valley using submarket Gateway the proximity acquired X% non-contiguous are County of be last at quarter and roll XXX,XXX elevated the to project next million. day for one square The four and third market. we acquisitions rents field of X.X% and as press a close to in with LA on Angeles cost supplemental releases total is weeks first foot mid feet can excess to are expect mark-to-market high below the projected to mid mile acquisitions estimated growth end buildings few container unleveled submarkets. Los XX leases to be ratio currently over completed the West for Industrial clear rentable e-commerce the Website. several projections San $XX The we a adding demand Close XX% XXX,XXX the is quarter $XX dock foot The and initial to with our conservative serve counties

to to Additionally, projected it mentioned this ideally incorporated in by project rent is underwriting. submarkets CBRE one not excess capture which note of quality highest it and the Michael our strongest positioned industrial in that is important is our earlier growth of is one properties the that market

into and in core, acquire and As strategy value-add flow is you Point a may Gateway squarely when projects which and value-add core may to periods our core in some future transition. bucket, plus, recall, stability our investment cash provides growth of fits opportunities blend be

us XX% through of and marketed or information We a continue through our knowledge deep lightly leverage to which transactions. this complete enabled our our to market platform off research-driven market acquisitions has advantage year

including As the new pipeline subject LOI investments approximately of satisfaction of we strong due closing Gateway completion remains diligence are under million look Point. acquisition to and $XXX These of or our with customary contract conditions. ahead, acquisitions

as transactions provide completed. are will details more We

to during announced capital. as proceeds dispositions, moving we recycle totaling sold the The to tax million three of to the acquisition third Regarding Point value will $XX and to portion continue properties used quarter. forward fund dollars expect sell unlock and Gateway we be a opportunistically last efficiently assets week

I'd update repositioning value-add Finally, an provide program. our on to like

Our nominal on have from slowed repositioning impacts projects only COVID through processing. with remained track permit

to space recent quarter, vacancy. for square amid planned that aggregate yield vacant call We unleveraged cost low on development. I'm repositioning or pleased projects an very backdrop and of repositioning performance of feet demand over feel under the a or pre-leased good feet in the for light currently XXX,XXX about third Laura. totaling stabilized total at X.X% square very of the X.X our During of million we've or turn projects to increase now are four future

the am Thank excited Howard. today. all you and Rexford I with to join be team you, to

sector. mostly class cash in expenses Rexford some due eight quarter. basis differentiated best was years the Rexford revenue maintenance a and X.X% I'll external property of and were are strategy with balance and up a that and leasing part all offset which high in pandemic. have internal a In opportunities driven same next and higher to of irreplaceable ahead On our Property past third the NOI solidified leading into expenses stabilizing X% to bad sheet related growth. NOI was by be the platform results. of Rexford occupancy by excited property expense. begin third to in The the was the delayed the Today supported industrial properties operating Over highly up highlights future for related leading increase debt X.X% quarter great I the by to quality rental X% operating level am repair increased growth a our spreads quarter

and points collections XX.X%. in the the COVID near In above pre ADR and market the approximately we've of health the to average rent and second at quarter Regarding collection to with strong of amounts quarter one collections our of due. or dynamics. to XXX for including had half deferral executed levels points deferrals October quarter we we month. representing are of infill at the deferral third a true are period cash third $XXX,XXX numbers third rents base quarter of California in with at collections nearly month million deferrals tracking line XX in It's quarter in XXX% third all rent burned Southern collected $X.X in a rent with basis regards the deferral testament off are $XXX,XXX XX.X% an And of this quarter. that pleased basis note tenant strong the base point deferrals important these and

be of approximately As paid scheduled October back XX% remaining all of million collected deferred have in October are quarter. to be deferrals XX collected. nearly fourth rent XX% of $X.X the we or with due in About million $X.X to $XXX,XXX the

leading our leveraged commitment to sheet a balance At we best class Turning now a balance have sheet. maintain to financing activities. in and low Rexford

has Our while over time balance same on capitalize allowed maintaining strong value true have sector model levered to creation. produced add leading growth low sheet and as balance external our to internal us value a testament sheet the a we time at our

ATM We includes At remain liquidity debt growth million on at have $XXX third position we $XX future had the $XXX the opportunities our in on never the disruption. approximately been ahead quarter cash of program. of until our XXXX with third revolver proceeds million better positioned maturities and to We our quarter time approximately no a million positioned strong being the related which for million same future very under XXXX disposition. for available available of $XXX any well end hand while

the closing acquisition the anticipate for we coming on in weeks million. discussed Howard of approximately Point $XXX Gateway As

and We acquisition. to in fund $X.XX estimate approximately transaction core to We on accretive FFO revolver this will that initially will use per hand this our contribute XXXX. cash share

Before questions, the call turning to discuss like XXXX over guidance. our for I would updated your

Given well of $X.XX Fernando as a a imminent our of and we the collections closing date, to as acquisition Gateway now Road guidance a increasing including $X.XX have a the core Point, order share. per $X.XX the of for to our are from per range visibility to share to per on $X.XX performance FFO previous guidance share we San announced

announced. have dispositions As yet for a acquisitions, that does transactions guidance assumptions capital been not not reminder, include prospective or

XXXX to health our also expected overall gains the growth debt increased than base same-property lower expense have the solid. our tenant remains primarily third expected as to driven well range by date X.X% X% NOI occupancy as of quarter in to as We bad

Our full XXX debt of assumption the updated guidance basis points approximately expense for range of includes bad year. the

it feel remain While current with that do environment. very collection the to we prudent is pleased be given continue levels, the to cautious we of uncertainty

of occupancy property anticipate includes non-cash operator the like million With year-end of previous we range range your to stabilized now change million $XX Lastly, to $XX.X the XX.X% our and that, which call to $XX.X the in compensation. to XX% for I same would equity questions. will over million, turn guidance be of no G&A to

from Thank question. time with the we'll session. with you. [Operator of And a Emmanuel Korchman At question be line Please Instructions] question-and-answer Citi. conducting this first proceed your our comes

is or a thought same obviously about morning Good everyone. you maybe store assumptions in guidance one change way. Laura, Howard Hey from and in significantly have afternoon. to this the for Maybe XQ XQ positive and the changed occupancy

did Just quarter fundamentals? straight change during maybe didn't projections or door you see sentiment what happen in you for drove that that the or third

one. This start with I'll is that Laura.

time think important the I was to it's really when So prior our go to back set. guidance

and remember were back wave when we So if we all remains. new to can that experiencing of shutdown July a uncertainty much

uncertainty while months fast in continues. three stock forward and So certainly

this as record record quarter levels at are demonstrated levels leasing pre-COVID. that much have so as visibility our absorption and leasing We as demand more and by well

really seeing what our regards a in seeing well you for XX%. as collections we're our that collections ranges and the at see from demand our we're to nearly XX% at guidance as reflect the nearly cash portfolio with of what standpoint. pleased collection really updated we're deferrals Our When

are give just guidance XQ XXX Great. of to And you year gave where points, basis I and could Laura, us debt bad the on for numbers you for year think date. actual you

million debt by a property Year points approximately expense points was was XXX Yeah impacted or property basis revenue. And of XQ our same it approximately XXX debt basis or third date then basis $X.X basis to revenue. of same NOI in bad million. growth quarter the absolutely. On is points XXX bad that $X.X

for remarks in as in be So we basis prepared the anticipate year bad point XXX debt mentioned I my expense full the to range.

comes from Thank Jamie with question. line of you. Please next Feldman question America. proceed with The the your of Bank

Great. debt just Thank expense. to guess you. confirm on bad the I

and I the date in there this in basis year thinking guidance go points points basis we're sure mean way. make XXX taken just basis right you've want that more is XX is about So a XXX to the there points to

absolutely. Yeah

kind if about So rolls. how think about it think of

and So to get to basis full date we've year. the that points XXX estimating for we're taken points basis to XXX

that bad experienced is know So XQ the -- that prior quarter. estimate amount what higher mean would you in on our of XQ than we've debt

So debt I expense. drivers think it's important in increase to here terms bad little we're dive what a about seeing talk in our in bit the and of of

of XX% our bad to in the we're advantage the doing our actually healthy today So cash approach pretty despite very with on we've regards list that taken know and in that watch And place. at as our our fact collections quite you you in tenants watch of list taking some always see moratoriums are And are a debt. actually conservative well. are the can

about So debt when the drivers I of the think increase.

really is first down broken I that struggling. buckets bucket tenants be think half the are can there's California those a it place. then moratoriums really in tenants are And following is are drivers that about of the tenants that into can two that of It’s

rent in that Once left, they first following bucket tenants the the So rents. California are of represents again that defer back unilateral generally tenants owe. the right healthy about believe that moratoriums we them that the these to but the half terms these given are and do of have moratoriums municipal the pay will nonpayers, pay amount

pandemic tenants be of have the and The been second struggling businesses those bucket post-COVID. have that may that are impacted by

do to up work quality to the as higher well. allow the better looking rents at are as to back have this and So proactively quarter that we will we that us opportunity opportunity tenants to to to release certainly take space up

debt our a impact say conservative reserve account what's we how So bad our about for what and debt think is when approach cumulative I really you of debt. important to would I our bad bad think is really

credit regardless fully than if accrues So rent rent tenant two with bad more isn't or for we of a months debt expense. paying reason either moratorium a reserve tenant and the rent, base our the risk, of the

you example, have commence moratoriums continue debt for are So in payments will that that grow the again. those to if our following are until bad place tenants expense

of I we the But deferral our overall into into with as insight continuing new evaluate gain as we small information can that think it's list you So in our is we're near have XX% policy that aren't important as again nearly into and that have see our well collections collection we relatively that as to paying note that list to are levels. tenants pre-pandemic are watch visibility further payments. levels

not Okay. Thank seller just that you a is you, market during they're a downturn a pandemic it's have willing it's or years. that's to you've acquisition sell you Do there been coming the And helpful. I talk lot acquisition Can potential think going be speaking matter. and really large mean to going of just about not to for you soon. changed in more is how then to downturn the a

Well word results the in of you Hi Jamie. all quarter you'd terms COVID put didn't Howard. know of first the thinking if our It's this yeah. we've just up things were Sure typical from business. probably pretty be

through So our that market. entirety of to the carries

still is Vacancy the amount incredibly paying advantage in moratorium significant tenant So that in or the having are amount rent fairly demand just Laura trouble and small. there taking described low just is spreads as of is of the portfolio a our of market.

they've to market things not of as really transactions the pandemic because entirety are real recent dramatically at anything when not of there. here few there that's really no increasing sell of they well the through There to But and any about and And is need hit. you on and their leading some there. that to values strictly if some think is seen sellers estate. that's So out rents the I going distress the look

more So in see issue the would has any selling been market incredibly financial respect. really create don't of that and strong that signs any we any

Okay.

over in a property I owned it's term activity the contributors a deal corporate add little hopper instance instance I for potential by think every did that large there on and -- own billion market promo other you to year but which in It’s have seeing who and users accelerating activity little very interest are leaseback small hard been incrementally pandemic. that [indiscernible] the great and the we interest Michael a we a think leaseback the do seeing bit owner maybe tied we that from trends and arguably of growing active over lot know on could years portfolios more to Jamie. continued just be those that's probably a say owners earlier $XXX transaction long some question some from pretty this and major tracked the the a we've seeing to well that square feet sale million sale the some X these directly we in are of we've private is the for

you Okay. to Thank on from how assume you or either I your cash mentioned you. And also fund going think putting long I disposition. you're gateway know you to that's I said kind do XXXX. debt something to that fund with But about it. in revolver term work point think of in

like $X.XX? moving So cap get about to to can you that rate disposition pieces just talk the

steady that capital that's $X.XX. in of are based upon point. transactions on of our today But a the have no pipeline including LOI. acquisition about opportunities other $XXX Yeah. under gateway Gateway It's million assuming terms circumstances a you. really what contract position Thank acquisition near-term strong or we Based the of state of

the in of obviously terms funding. somewhat capital forward So structure is go fungible our

great - to available importantly sheet as we'll and of leverage forward. us. to move equity So full really evaluate group we're our range continue and And maintaining balance profile we options a investment committed low to debt

in less. The them rest square building. are largest XXX,XXX but is are the There's that million a and hundreds feet of maybe XXXX X.X foot

nothing dramatic. So

of because the tenants. at with in the We've work In were with these now with about lower into that's even it XXX,XXX. goes renewal fact And there XXXX remaining discussions of expiring we're half remaining right end square down sent today footage it's already the more quarter when of expirations than expiration more our them you as actually that repositionings. break and remaining XXX,XXX

XXXX we're XX% today renewal and of tackling now place range those starting I within taking of have those I of activity think so XX discussions And And the expirations. the probably in occupants. think than we those and top more full-bore

think so we standpoint, a where good renewal the from sit feel pretty I And in about we market.

you of best to we in for submarkets have just of limited relocating know terms and moving. tenants the As quality and in tend each product options these there's

So earlier on about excited we're the some discussions that of are place already taking those renewals.

Okay. All right. you. Thank

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

sense have kind October? this are collections means at for Good Thanks. little First all that out on of in point that of do Can your deferrals repayments, of you of with the what the second these there. of rest in rent pace regular collection how any morning the October to of then month prior And comment collect quarters? deferral Great. XX% ability does on a you compare the collections bit? the

for Hey, Yeah. Thanks us today. Blaine. joining

yeah in XX.X%. point we are in we quarter. we at that's right back in were So so October where the of terms to point prior October look line and in month is really And at the when with over where this this QX of kind

in at QX. where So those we've October visibility we near and we’re or were collections seeing

we In terms got payment actually got payments, another and team this from the press just actually of that our morning. hot a the note deferral this I deferral off morning

were last deferral collections compared evening. that XX.X% So we're reported to XX% the about now at

collected that under we from leaves standpoint. still in about to in early relatively So have -- $XXX,XXX October that it's month be the and under

to to area. So percentages doing in percent contractual with we've line into our in good pretty pretty that X are XX% visibility what deferral collection percentages be those XX% collection

color ATM helpful quarter up bit. on guys on but just increase on That's the then is any a pretty leverage following shares little to collection. clearly And of which didn't atypical this had issue and capacity Jamie’s questions, you that the Okay. congrats additional you one

in it the we on to X% million still deal, debt including portfolio low think basis. $XXX a I remains the leverage EBITDA calculated

how before issuance that forward So looking question ATM do your the how targets? affords the going about think much hitting additional of And is forward, you capacity comfort of top think we kind leverage well? as you should

Yeah, Blaine.

So terms $XXX sheet, issuance the this million. quarter this we had our a note our of with significant think I to cash quarter balance it's know and on ended in important pretty cash that quarter ATM balance sheet

to we really this ample had need capacity - our our So quarter. -- fund had we needs

really kind lack drove that activity. So the ATM of of

In terms of your a sheet strengths balance our grade profile maintaining our really question and competencies and we is that believe competitive balance sheet our of is of key core investment strong strategy really our one on objective ours.

on So little external provides our that our execute flexibility us leverage have ultimate this take and us both much and disruption. ample I and it position today is us capacity internal balance And to certainly we what if sheet taught have with is other opportunities doesn't that think and to growth move leverage anything that considerably. be disruption downturns well think there's future what could for I that thus

today sheet maintain given the better continue never our balance going drive we've been can like expect to forward. the are feel positioned low we levers So to and than strategy we

comes the with Dave next from Rodgers Baird. line The question of

mix the Howard, on tenant you're seeing into fourth Yeah. of the in you're Can a with you the you seeing. Michael, seeing here or tenant that maybe that demand I I both question demand breadth quarter talk about the the guess start quarter. you're and what the

of the Are the from talking you in guys and I breadth you the you're of up to. quoted half first give can e-commerce seeing tenants year. think from national you Amazon and color XX% know have the similar XX% to on something numbers us more

not coming remarks marketplace. mentioned traditional demands that Hi, the a that of is we the demands there from It’s Dave. Howard, in been in have prepared from just e-commerce tenants lot

the up they're quarter. in it pent - some they great is second But of business because businesses market the expanding. in are and doing Some the look clearly and demand weren't growing

with Some think lot have of spoken a really taking a just on even bit more them for obvious to hand. little inventory space productivity. reasons might can I But more a the bit be to be

If I And a over about for you breaking the history the were more import activity the in never with X% August over the they're volume it, of in little little about think XX% ports in a that year. a first all the half down only imports they've the down been for ports. both for those record think ports August periods

incremental lot a put retailers. in place products and coming e-commerce from California need of creating a it's that's traditional commerce to or product. whether So even the They demand

then has helping demand you as so talk Amazon have. exceptionally mean largest and and diversified been space maintain I rate contributed market the Amazon pretty one all I submarkets vacancy low certainly and we of of in the And takers think our to of forth so the about and

far was So it's of e-commerce exciting this as and our highest then as quarters one well. demand as our

I to XX% from you've occurred had which what XX% over seen and significantly more the new lease which range. our e-commerce they average we had leasing some in that of relationship is think the seemed pretty quarters past a XX% in

a of online driver, revenue of not we've their generator. So heard clearly e-commerce Amazon, knows now and sales is more think is all every an than business never you that it's before an bringing insurance just policy. its companies but a It's can that

Mike. it’s Dave, Hey

it's think a I question. really great

the our hovering little these bit color of low of that you realize in But look a little X% our are functional - a half even to the demand that very how most competes they're when and them if the locations portfolio our with is acquire of us we less to that markets, best it. another on our out in maybe Howard’s vacancy not product and think X% the actually way buy make markets so vacancy market actual practically again markets over to just probably is submarkets because most when about comments in we're adding big average. Just we at are is the there vacancy mandate plus

in I in And competes or actually way. with you're So of the of half portfolio half the than by it's there. at the probably terms out think product vacancy less market reflected Rexford our that portfolio looking

I vacancy materially numbers our think higher. are

what about half numbers are the we vacancy are operate. Our where of submarkets

structural the and about that talking a above well dynamic Howard is have We're And and so what positioned business way exceptionally portfolio considered we layer from you in demand occupancy. is perspective. the the

That’s really a Thanks Great. lot helpful. Michael.

Yeah.

And to guys back you of quarter devices this the deferrals those, last up are the so. Are you have those then in the come that applied or Laura part on year. I collecting follow in wanted security

something that's that numbers? at we looking also be should those in So

collected Yeah. I number October talked deferral the at in mean that's just deferral number just we're when to rent. of base -- that that we've the is close base that not we include the that reporting replenishment deposit. look about That does security last XX% that rent of in of the XX% I question that

Okay. That's helpful. you. Thank

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

Yeah. Hi.

thinking dispositions you I think curious guess versus trading? you're today the issuance where mentioned equity I'm I stock is how of candidates? and what And disposition are then about dispositions, those the given opportunistic characteristics

Hi, Mike. us today. It’s Howard. Thanks for joining

we to properties that and more positions, an paid requiring capital some in can looking management-intensive don’t deep year-to-year. where which process really we values incremental As them users from on. near the or or in rate outperform of dispositions our for might return the was even during portfolio changed example looking the an either on quarter his We're far always feel be term hasn't cap as thought more owner will sell that much that quarter-to-quarter

multi-tenant be continue dispositions that will on do we provide of we as more -- of and hungry others frankly market exit the how multitenant and we mind took advantage sold into industrial to information new for one part So in capital in served building that sophisticated some product some that significantly we outperformed less transact. on on those as yeah coming San operate Diego. assets, and a have is we well And to

the Mike portfolio from that market. to just it’s they're is about adding know expirations And mark look Michael being you at when and aggregate to again expirations look XX% at portfolio market. for Difficulty] portfolio the that instance over [Technical next in is year You the below particularly the perspective probably

to creation value throughout of going probably So moreover really right I had portfolio. creation. But opportunistic be yeah a think be focused we're on the to the clarify. we're so to is lot way value But there is

it. Got

whatever are excess and that to today. any the requirement you price more the investment So what and it that than opposed to think to as digital when given cap make the like going be to come going of maybe fund would you they're you equity to situation issuance equity is traditional need dispositions would be it stock way from rates

that's I a statement. fair think

right. All

That Okay. was it. Thank you.

Thanks Mike.

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

taking questions. for you Thank my

just leasing in quarter. leases on this and rehab the activity - First renewal Can spread building obviously new rehab the I leases leasing guess the and you the new were between good is for difference Howard pretty spaces/ buildings clarify new sol you

was the larger tenant where that of that of XXX,XXX foot one the to just going it had had year about that toward the the a about leasing most was do at tenant on that. a for had others were that building to repositioning next a able driven quarter in terminations talk tenant one get thing feet by where bring and some gone few new were X.X% vacant. foot that we the we building had to hand end of expirations on into XXX,XXX a trying to in take for and stabilized total marketplace year achieved the to space. just been our we're the that were to part We able projects We repositioning them for -- end the the the think relinquishing is we've XXX,XXX the recurrent in lease What's in testament to of obviously And The we occur had the demand that one interesting cost. was pay. I were obviously we've mentioned quarter another expiring which space was same so us

the the a way lease incredibly as So of payers and -- by lot new those are strong rent an well.

the space. ourselves get lot leasing terms a is in in being of value trying new to created by to that So the of

You without ones replace in some as the even them of of of well. trying some these tenants to the heard work that been the leasing out them we any outside market those has substantial rent the because spaces being past get get in at lot the us about of value and done capital quickly high talk terms produce they weren't now us this a of spreads strong can paying

But to we it That's the guys you -- it's good hear pretty haven't you that Interesting. - it yet. Gateway just guys Albeit I've I earlier But purchasing achieve didn't Appreciate deal, closed obviously well comments the -- on I did a exactly expect a on say that. the call. you quite color. it receive that yield and in get X% and deal was didn't clarified. for your pretty quite would occur? when that it

square XX,XXX that a expires of next year, right now next lease XXX,XXX that on in square the There's think months. expires that leases rule couple in in product. the May I mid There's around lot this feet There's of year. feet like a - another

And a about growth recently think you if And next if think out you market averages first But count projected of mile about XX% market. and obviously on It on sprinklers. product because demand marketplace a of there a just in product now. some the container look highest eye really X% and over near high delivery. the compared year. the We underwrite it’s it's based the location of years is e-commerce five per didn't XX% compounded anything has to for I for conservative is that's interesting the XX% at It product It's about excess in CBRE back right XX% the look bull's underwriting. to is aggregate basis the so was in our gateway got at the the the XX% rent below type over typical about eye put parking about door that. little probably some the projections in last bull's rents more in day, with buildings right that

a greater built So optimistic A dearth in the XXXX. just market we're product years that outperform going the the really Angeles of the outperformed Classic the for rent a our that Los because past half is to product substantially over few there's is of products projections market, that we've lot of was bought

today California like enough And market that's isn't a to so you out at there. can imagine Southern just you the there look supply when space demand

even pipeline LA over construction quarter. this down greater fact is construction In XX% probably in quarter

there a So they'll to continue shortage be of and space is it.

even of excited the the the real the end it's day about type will perform very and we're elements gateway of it. very, of [indiscernible]. got all strongly our outperform think product We So potentially at that

disposition just investment thoroughly any but to guys class opportunities. in earnings that so good all bag of six in you industrials versus as I say cat final is the you this one look yesterday you're I And their doubt forward investment of any peers appreciate and I think competitiveness in do market of and an do opportunities foresee issues this increased see terms of its going But ago. sell like identifying buildings. I Yeah. They No color. that. alluded on very the think out marking guess your fundamentals Kansas attractiveness call your is the about you months still terms issues question obviously

today. markets frankly capitals new competitive for see time. there Michael. hyper And in for or arguably a our coming it's our very - joining competitive And and Hey it's market been us years. we many Thanks for Eric has consistently long

wouldn't say necessarily in an So it's from increase demand I investors.

great pops The are all is and not think all pop. professionals. infill is of then our class. public people what's REITs. upwards is probably estate majority XX% mom and mom I I frankly about that And it's amazing market asset only mom that real vast is of X% And those that pop, is REITs our our acknowledged think and California a industrial probably industrial Southern by is market owned about market

not And asset with majority in competing it's vast of capital. the arguably, in interest we're highly a astounding find And heightened is so I the still transactions despite what institutional the market. class our fragmented

broker think off market I this noted transactions research catalyze in-house. were year that marketed about Herman transactions [ph] through through and we and efforts our lightly our of our XX% we

our the premise with we're of so competitive. opportunities, prized namely couple capability. And started growth we originations just information it's really a to bring a by when we varied that business started create exciting third brokers relying a this company wouldn't this playing creating highly fundamentally throughout And very if fundamental on different we frankly that ago be they're it decades field that several because us advantage parties

we've translates into created And return opportunities. Rexford that our so directly own economics, flow cash the by large better growth better that’s at and better And machine and capable equity. investment of generating on

Next of question Please Securities. from One your from the comes Chris with Lucas question. Capital proceed line

morning good for and you me guys. for afternoon Good

guess was that sort Just from a questions, a building terms that segments great follow-up up opportunity rents right segment quarter. there now of I on assets? or that of specific disclosure. new has I the guys to is curious of push couple that to this five in in the most leases Is you Howard just the very the

think vacancy few I LA to so for it there's you to so tough if look makes think those There any of decades the market of Greater if quite replicate with instance you a of even throughout kind you product. any been product, impossible the back that the deliver that of and hasn't for just to low market. look the at about do a cost shortage smallest space space, weigh and the on

to shortage We've some evenly leasing product. that I throughout seen anything point don't dramatically this can So of distributed think quarter to that different mean there's a versus I quarter. quarter spreads bunch that our there's very pretty others. have still to even of a large some that spreads. as are speaking flat there's of leases strong of well. worthy whole that But larger now we a did had leases exposure we

if look at some and even the portfolio spaces. XX,XXX of this above though think X% in up think they is the half I the it's of the terms from make much in as of probably feet it's I larger comes smallest spaces So range today almost as portfolio you don't now. ABR ABR our contributed spaces smaller

the you think So we've of buying quarter and yeah, at a a fact from management as us what of of those has to in product taking been market some I see of product and also multi-tenant intensive these the lot type spaces of don't you of - majority some strong look assets advantage buying, well. if some selling this been selling quarter we've more been small

tenancies increasing you'll well. percentage over I of of ABR our think derived see through So time as the some larger

again just Great. And about in that And make is don't been that's at year. the tends process take then know of leasing I to guess decisions this time to I all terms changing impacted tenants this COVID you I don't you Can seeing or at from in are not recovering whether much responsiveness? point. a how their know it, terms give of us sense it's of what

leasing people or certainly really pull the even Well the quarter leasing is the third react. to not second obviously quarter of slowing COVID back hit saw quarter. know Yeah. Know slowed in during process people we showing second and as and part of down. certainly of their really because is how the But rebounded didn't down part slowing latter any about signs

past all of off ever in terms leasing. new of highest what from first quarter leasing think our start you quarter in was [ph] this our I

about our in amount leasing higher was leasing. in prior of that than occurred think new quarter the peak I this XX% new that

lot that what that on And when at concerning reasons those people space a focusing is they're for are space. vacant pandemic. decisions vacant so happening quicker obvious the are a And looking

and downtime I’m -- XX for was on almost about or over feet. the instance almost really square half the this they sorry of XXX,XXX right half we new quarter were move was outs of three of And quarter. little almost had a during I the from outs have there leasing So we move released days think those

a always on hopefully But the we've the seen terms size of space. it market. to decisions, leasing testament -- So leasing in that's really of really the depends

products is in leasing quick. fairly the of of our most so the portfolio And

Somebody They and that want saw market. lease what think move need sell solidifying quarter or really the And was and think demonstrating the process in leasing right I they really that's we They is space. to in I out this side new it. away. thought

for I the all for today. That’s color Howard. have Thanks

you. Thank

floor management the to Thank you. turn At for remarks. closing this time I'll back

hope to quarter. forward On you joining This everybody we healthy. families of We to look behalf team safe entire industrial and for you. your is Thank and thank And Rexford today. remain the want us I Mike. reconnecting next

does today's conference. This you. Thank conclude

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