Rexford Industrial Realty (REXR) 22 Apr 212021 Q1 Earnings call transcript

Greetings and welcome to Rexford Industrial Realty First Quarter 2021 Earnings Call. [Operator Instructions].

As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Kosta Karmaniolas, Senior Vice President of Corporate Finance and Investor Relations. Thank you.

begin. may You

joining call. for first XXXX quarter Thank Rexford conference earnings you Industrial’s

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

today's Michael and Officer, Financial Laura Howard Co-Chief Counsel General Chief Frankel; Clark; with are and Industrial’s along David Joining call, Officer Executive Rexford Schwimmer; Lanzer.

statements remarks, Management's as remind everyone questions call that remarks Before Litigation answers of to contain in Reform we on XXXX. defined like forward-looking begin Private Securities I would our your and prepared to Act today's

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

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

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

With non-GAAP pleasure to why earnings are useful supplemental explanation Our and Michael. release investors. of it present GAAP an call financial over measures hand and the that reconciliations is such package to to my

activity, will discuss Thank cover Rexford with quarter We call. a earnings I'll your Industrial’s overview, well. you to our and brief financial Howard you results. XXXX hope families transaction begin will first our are and and welcome Laura Today then

a From at drove We leasing Releasing and record portfolio. to an of results. basis. your in pleased operational will continue two the on a square for our occupancy XX% then feet regard with perspective, levels open question. cash our first exceptional spreads With the call XX% are quarter, we XX.X% million averaging stabilized GAAP robust

coupled share growth and in basis. growth, XX.X% with on strong our Our resulted FFO per investment XX% year-over-year a core extraordinary volume internal

spent restriction. rest retail UCLA the business of more California range the surge, to forward pandemic appears growing of Moreover, of diverse most representing faster purchases. in economists, $X United sectors, the for than infill nation's outperform. lifting than some combined As we California of driven ecommerce States, a will continues on $X look by grow project constraining to every positioned Southern with

focus pre First positioned XXXX. with tenant markets, Moreover, on the volumes growing imports outperform last XX% best our supply. of is functionality. due any locations new portfolio dearth resulting high our in markets, within first exceeded net land of unprecedented quarter a with to material to demand port our essentially barriers pandemic ability superior compared Rexford’s mile quarter Within and to the with no delivered the construction, of infill developable volume constrained introduce with new levels,

next to times of Greater remaining at year-over-year. In that than tenant supply to our the the itself rental most infill rate is rates nation. CBRE in average supply greater the continues continue the four lose strongest and Consequently, resilient on With demand projects major as years. Southern markets the grow base into California markets fact, imbalance, Los an X.X Southern California demand infill incurable highest Angeles prove a base to outside tenant

$XX million Overall, of project to our portfolio further months. NOI Looking internal within is the acquisitions positioned over external favorable forward, we growth XX for no approximately to the and in-place assuming XX% embedded next growth. XX equal Company

perhaps growth, better external been Company never the Regarding positioned. has

relationship of and research our driven methods us a pipeline local harvest to origination As opportunities. enable proprietary investment

the We within nation's share significantly are market. infill highly X.X% accretively, the well positioned market industrial to current our valued beyond grow most California, Southern

since team, year this marked past Rexford working March we our one remotely. Regarding began

despite leading entrepreneurial turn performance. and pleased that, the over Howard. team your rose market for at highest humbled by which to are levels many the estate industry. the Rexford the acknowledge perform spirit dedication, We hardships our like to to and task, call I'm to Rexford We'd with thank And with within to manner truly entire extraordinary the team the real tremendous very

with growing you, you industries everyone continued of torrid quarter, companies Vacancy fundamentals a diverse warehouse and unprecedented impacts And ecommerce infill the accelerated Thank pace. in group associated absorbed a space and as today. for first pandemic. thank strength at despite Market in California joining with the us Southern tightened Michael. demand

to Over infill asking rental the past markets up XX with on months CBRE weighted strong rents growth, average basis. according rate our experienced X.X% a

further within market the over comparable portfolio by our and California based perspective, believe for target For estimated increased on infill we our product year X.X% analytics, internal prior rents Southern an markets.

expiring leasing XXX,XXX quarter recent the Rexford repositioning year, and up. are East, XX% the portfolio, points, representing lease Empire our elevated this market. San market the Inland square renewed, tenant ended have X.X% add basis same-property future million the XX exclude leasing strong our new our XX.X% for our Valley top a comparison, or the Gabriel lease occupancy volume. retention approximately feet which The A remaining quarter square feet largest X.X Of example of XX been markets negotiations. [ph] testament of first headed XX to quality portfolio high by top spaces outperforming By vacancy. at ended already and leases target are portfolio value spaces Our the first in our the demonstrates in retentate with strength a of

and had infill of record we proposal for with searching spread space, original generated higher rent In similar market. within cash the spent rent representative to weighted. time set unprecedented XX% Unable During for and a a less occupying the renewed square not high full for months But our sub functional of a was the with releasing space. tenant they dismayed another finally renewal feet, of about XXX,XXX tenant quarter, alternative This end, was a rent the pace all that expensive XX%. our us. any at than markets, a higher the find was rate, growth

addition, annual the increases lease, X% In for term standard we historical our contractual of exceeds obtained rent through which X.XX% the the markets.

of X%. note, acres XX.X above coverage, XX of Year-to-date, increasingly as feet included some for are sites, high journal buildings, and land acquisitions, in we completed outdoor a including we rent as low our redevelopment. future boats which pushing and As storage annual XXX,XXX square X% cases

of FFO currently subject time, about We through the after initially $X.XX were guarantee with XX% enabled repositioning over growing contributing purchase value aggregate LOI, investment market an acquisitions greater per X.X% no about investments of or provide and $XXX projected aggregate lightly remainder or total cash through per of These strong under flow over stabilized to For contract. sourcing off or acquisitions transactions an driven our price of $XXX on share XXXX closing. due marketed, yield research these generate add to or These share methods. of redevelopment. customary diligence and are are to proprietary have million of growth million. $X.XX

will We as transactions you apprised keep are consummated.

Inland front, $XX properties were Empire tax sold disposition we activity. Fernando the efficiently East a portion fund, totaling San sub-markets. used in the of proceeds acquisition The On to Valley two our and million,

recycle expect to value to opportunistically and capital. to continue Moving assets unlock sell we forward,

to activities. repositioning Turning and redevelopment

million These feet have to investment over redevelopment are projects portfolio. current lease-up on feet an our We of million projects return detailed Of projects aggregate estimated X.X current in deliver of and X our repositioning total stabilized square I'm X%. at pleased supplemental square our call in planned these, of add to be value with Laura. are the throughout or premium to in expected creation, that point yield sub now that, market. represents compared a over they market the today's And value XXX substantial valued X% to rates are basis deliver as more turn than to cap a would which

on our were $X.X first of ahead Thank with same-property of Since billings million, of cash pickup basis we collected quarter a and first the collections you, in currently the $XXX,XXX NOI Howard. XX% today GAAP pre results. in to began, XXXX. by X.X% stabilized in quarter, point and begin contractual XX% have we nominal pandemic deferrals I'll have levels. spread. deferrals, relatively at financial driven provided representing rent about X.X% occupancy came growth remaining of have and built-to-date, leasing of our a amount only X.X% tenants a and operating forecast, average collect essentially around ADR details on over In over we strongly and basis, a the pandemic basis, totaling Rent XX with

addition, In XX than debt basis bad points at in better expected came in revenue.

bad are team. the proactive the Rexford of tenant lower as our debt the reflective well of efforts levels as quarter’s base, of health This

below strong results of discussed $X.XX our per first growth has spaces we quarter, last combination higher share of or core per team recapturing rent and market FFO returning successfully As generated The at share the risk. quarter. XX% over in substantially

now and financing Turning balance our to sheet activities.

enterprise to opportunistic sheet, our balance up debt X allows a which be capital to the target all was time, us net quarter in with maintaining to end at of net cycle. best-in-class the phases X.X coming XX%. during four low time, At to of low debt EBITDA are of range We leverage value

an was issued million average total quarter, ATM a the equity per through $XXX the the at price During $XX.XX of $XX share. of we raised with million program, basis of forward occur fund settlement later close Proceeds ATM year. next as used XX quarter within to from to this identified first to the were as quarters well this activity those months. acquisitions, on

availability had we and until under $XXX for approximately million credit of debt $XXX liquidity $XXX on ATM XX, on remain We March maturities hand. available no full in strong approximately of As XXXX with our facility, position program. cash a our million million

A represents to we $X.XX X% growth. share our midpoint are increasing range full year year-over-year core to guidance, projected Turning FFO $X.XX. per to revised

a practice, points NOI prior guidance does points strong the midpoint performance. same expense driven of to our sheet property XXX and the As basis, X.XX% our revenue include of of Other first a on not a to full to XX activities components with at from our of to percent previous - X.XX% year, debt notable and view. the points include our assumption X.XX% GAAP disposition, includes bad date. cash not balance our Updated basis on quarter have or closed yet an basis, a reminder of basis increase basis consistent XX by acquisition, as stabilized growth for that guidance reduction guidance a X.XX by

a for average our core forward our XXXX driven range a of activity. per are the We first XX.XX% share and increasing roll package pool We our guidance quarter included a a FFO robust to leasing the basis occupancy components between by property XX.XX%, points XX at further to stabilizing and details midpoint, expectation that guidance. up supplemental

be your employees the impacts publishing that will report the This committed now annual our are turning tenants, to questions. the remarks. question, to our of our are ESU positive to completes call Rexford, At prepared welcome communities, at we Before for end We shareholders. the optimizing announce environment, over and month. we your we excited our

[Operator Instructions].

question proceed Emmanuel Korchman, Please comes from first Our with line Citi. your question. with the of

pipeline, the Maybe with little bit to afternoon, that talked unit a are sales? Michael, had deals one are transactions Good straight sort everyone. unlocked. Amongst success going is and that this deals morning. of you've some those be in Hey, you good or included of Howard for doing about, unit to cash all there get

Howard. It's times Yes discussions your a But into some Manny. pipeline, Nice lot million turn just are voice. $XXX the there it’s Hi, to deals. of within cash funny, hear that. they

pipeline on future upgrade transactions being it's now right to year. been comment we the optimistic last lot we're specifics able UPREIT to There's as hard talk well. consummated So, of a really transaction has about growing. And is more

in guys expect you the just developments gets that close all NOI talked we from growth That's you to of come exclusive of embedded sort then annualizing that mark-to-market. of the That's about rate just rental And growth. if XX%. acquisitions sort XX% the way

today. you. from Yes, Hey the it's hear Manny, to And it joining includes just thanks mark-to-market. more Great for than Michael.

million also million includes repositioning it of the $XX $XX contributing million. $XX about So the

fact, that contributing million. only about million $XX of leasing are spreads In $XX.X

you. Thank Great.

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

there. Good up thanks. Great, morning

markets And continue to in to have about about change bit capital in industrial So have seen as compressed your talk historic lows a California product. you Can overall particular? level hear Southern competitive any you we the little really in chasing interest the just rates of more cap environment in here?

difficult, because we've on bit many lot interested the Hi, of Southern there penetrating Blaine. marketplace. a guess, cycles, back an over there's had out actively capital are not looking in quite a basis. always I transactions that It's of California Howard. marketed It’s into

past. people penetrating, difficulty So so the the cycle than do a point this in is have different no

of buying on unique focus to to really market of some well different transactions marketed. Some we sources, names where over our quarter, marketed XX% it's on market, obviously have lightly over. and lightly shifting of were product. transactions, market really, the capital our up the occasionally And access as as market off testament or changed, the Last are bang

we're even have compete the with really never it's buying. And so capital what a that interesting out chance most to there of

So industrial the best really Southern California and nothing new it's no in is secret, the country. market

of our place capital, what always So in that's markets. the plenty there's

And add little more is a Blaine, Michael. perspective. just this I’ll

a industrial, asset who more seen investors you lightly our at there's We as come if cetera, trend might that being increasingly our and retail, for about marketed have despite certain other have what's rotation transactions certainly so increased, market. but Howard the about et indicated, have targeted classes, the from the is look competition actually in really into approach market and up prior eight, of there through percentage more years, nine business Rexford line interesting transactions competition has

Rexford. XX% ago, we around XX%. today probably volume XX%, year, we're lightly increased were And as close this year, hovering so five marketed over despite off six deals. activity around years, years of we're at Last to market well And

do, the deeper tells we're leveraging developed technology, better and better we the penetrating our we that deeper team that what just we just digging deeper marketplace. into are think and into at is the markets, I are further we're So story, really

guess helpful. given related that, Yes, how that's really And just it to rates I compress. continued and to have cap

of Would valuation guys you is? You are consider have selling you assets guys capital your certainly But given portfolio small opportunistic thinking sources. of about where anymore dispositions? a pick

always be rates, portfolio, and overall through a selling, about we just that even and rent tend the those very our strong. sit we looking so in a in assets. growth our that ago, look mark-to-market to the And even market things, today lease year plenty upside the XX%, considering most portfolio, at creation of where is of below of always look there's you assets been opportunistic. the funny, if in And we've experienced we value We're sales and is so of terms at more back it's astounding, couple is that

on sales two, sometimes outperform we really that something have rate focus to something's make more tend a they sale, bit or little rents another a more that don't consider management really cap as or the maybe and growing to might type opportunistic intensive, we or focused, So more tend this, reason see quickly selling.

its point And Rexford And both to different a example opportunities, levels maybe give that, and scale is for instance, to an in the again, We're affording we’ve customers. add, that. of where I'll marketplace, just of I'll getting Michael recently Rexford our and solutions customers a at look that function Rexford we I established prior much more new -- opportunity able offer a might and California. our have and tenants throughout a strategic mentioned we're on call, at to customer prospective the market Southern

talking talking And greater we're scale also, operating not really in space, the throughout company, just And within region. to so today, tenants, a their we're terms about one needs beneficial maybe is about spaces leverage spaces as to the XX the for XX but portfolio. achieving of or

lot platform call going heavy in of the operating as going to accelerate So to months. margins platform, a XX I built see you're to to forward. move really incrementally see Rexford’s you're The the think over next start start not and we to is XX it out, fully expenditure

the company. this that's think portfolio the the Howard that's look the that given whole I But mentioned way, rate than as projecting really time mark-to-market the And growth exciting the market will approach end year, by higher at typically out might you And as through a of be we XX%. found, we probably be well. that expiring if around of mark-to-market in So, mark-to-market. is the the the year XX% next as leases a for rent

currently, about I for we're looking year. XX% at think next

lot a of rounded So a growth. lot

guys. Thanks, Yes.

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

kind tenants there's to coming a type the just the that just a color more approach hoping then downside off in just on the bottom. on was into even well. lingering type I bit your address or changed the how of little I spaces changed of also, tenant if as kind of of fact there to debt quarter, of you based that how kind kind we're first been a you. thank can And of has bad the expense, assume leasing get Great, the change

the is. change type, question part tenant of Maybe missed are to business demand. the Jamie, of what that first I understand the you’re question, by demand I saying try nature in

Yes, today the have and of businesses three, types the four or that leasing active become just types industries last have are of space the more months, things speakers]. over or [multiple five started

Maybe very the in we're brief on the mentioned on activity really up still started much Everything California. Southern by range really our May pharmaceuticals, year, a also all described it coming the and represent accelerate careers Laura that with, April, to dramatically Southern started vehicles electric I’lltouch last debt. in starting California, healthcare ecosystems. driven continue say healthcare, sectors year and ever of as was part as early really interesting and then infill staples, here. food, products, there stages March, accelerate and first you in in of that touch levels by a very really was and bottom in from And XX-XX And I've what's after out we leasing we've as you pandemic, and earlier consumer in the technology, if seen tremendous bottom And of heard Howard these expect, can there, now to a infill broad so beyond but bad pause space cycle you'd tend they also June pretty truly and mobility and products coming industries. aerospace

it's not those et cetera. instance. the supply service for the components, It's just the batteries, suppliers centers electric the sectors, that but it's vehicles, So all of

and industry that ecommerce, know course, there's what's the e-commerce. stages from based And of in from e-commerce what which indicative based we're people our impact seeing with still perspective. been market, have a impact so think examples, it's talk it's I positive going And happening markets layered a way. on drivers just as the in you all And But Amazon, of an broad about extraordinarily the we set reasonably in of penetrating couple than these these company demand these early our now in infill to long lot we're markets, the very same. the they're distribute do then like distribution. close a you've Walmart week, an using locally, they're more how spaces that bought ago, they're much to going and Uber doing efficient endpoints now the not and warehouses, vehicles local And very too using and but to trucks. seen They the it's in differently. are is to establishing there's the be same. last centers And announcement they're that And Target sortation vans of

the it what stages really the And impacting it configured. the exceedingly also way use driven way And impacts properties for frankly, well a plays the initial seeing of Rexford it that these our delivers wave so of into they product. the ecommerce you're into demand And market. is are to

So we position. couldn't be better

comment I'll add, demand and different other one also Yes, from around industries.

also I to those. and California, been one going use reopen have between to of million tenant are to sectors we that production. is some entertainment this of in see in We quarter, studio think slower space the starting with to that's a actually they're And $XX convert those going demand back million we space. a invest $X come for to lease signed

sectors capacity, it's to been as to well. operating market So come down, from had these and had limited see that shut some to back starting seeing those industries good demand been in and of that

around question about expectations. for little the and let bit talk clear your debt, of terms I'll and speak drivers then me bad In QX about a

quarter The primarily points. our mentioned year of basis in the this this in unanticipated list was cash as by a decline quarter, compared this of watch positive quarter, So of handful payments of to XXXX, points debt basis related quarter. the I the bad to tenants. impact or the resulted debt through in which And XXX was full recovery the for decline debt bad XX around revenue, was bad call as

which cash expense So, debt full year prior bad or recoveries our excluding basis was unforeseen about points, been line would these have with guidance. in XXX

reopen, came capturing XXX have basis QX. these better going the that that revised They in rent or forecast tenants pay once are being operating. the their color to collections. year, we're the QX in forecast travel especially It's term, these be So unilateral been in They points in our tenants tenants still debt to of they're full fulfill related rent. categories cash in right tenants to the being industries, little that slower pickup bad still are different that another. that ability really of for it's entertainment in place. A to And that from one, to expected than that certainly terms around really the optimistic obligations we're challenging of are given moratoriums to consistently near give fact those able rent

to are moratoriums But know, list all as back pushed So at in the set several they've been end June. we this of times.

we're and three with prudent quarters quarters. forecasts the cautious with is being through moratorium remaining, as So next place, three those in bad look we debt our

talk very discussion, numbers? are That's to across to going people you you. actually can to think then what get about, guess even cap you assumptions And thank the I think markets? different your sub importantly, maybe are in underwriting rates Okay, what And helpful. more cap those then back you rate,

question. a that's Yes, great

have very assets do acquisition, And capital cap on expansion out cap rates to cap you transactions, similar what we transactions that have is underwrite at to what the underwriting rate are sub marketed there's a term of rate in allocators we're you some say compression longer unusual that exit. our seen anywhere in don't there to that today. here not quality Rexford close marketplace assume rates exit we see so when allocators underwrite going leases. lot we think with where And But assumptions of are, I especially when obviously today the cap X%. So those on tenants some

cap where in assets short to terms term, course, really having and focused of stabilize time. seen But we've performance over strong term rate periods buyers, more the of expectations we're prepared And term, of assets near So marketplace. over yield yes, really continued we're these not of also really stabilizing on we're repositioning as you able the that Jamie, know, today results the creating compared to costs, stabilize Those in our marketplace. where X% we’re would assets pipeline, we the which mentioned trade on substantial is about in total remarks. that within of the on the value near

for think you are people do assuming NOI or growth? growth What rent

think dropping year that I for different maybe as out a to not the to single our if next two. or talk rent would our products. growth. in you down brokers still the pleasantly higher then over next year first be something We're growth we too in digit we into year, underwriting there. here, acquisitions, not pricing and aggressive maybe It's perfection In the bit opposed above absolute of rather how surprised buy to X%

great. Okay, Thank you.

of the proceed Berenberg. question Connor from with Siversky next comes with your Our question. Please line

cost pipeline. expecting over there. I'm call. if morning development of this on wondering repositioning in steel, from add disruption on procurement for on could inputs specifically. week environment? Good how the you're calls the having you everyone. Thanks earlier if from color Hey the any rising approaching me some Thinking of you're current one peer’s And about the here

disruption favorable the constructing commodities Connor. hi larger really you. we're there some of Sure, of rebidding are projects interesting in What saw actually this other what's there that hear shortages some some and pandemic, in are is we locked used and doing of the real on is some we and of pricing. to There Nice out buildings. seeing the we actually construction But from were in of that, projects. some go had middle costs steel down,

up numbers. are so internally really we're lower at those looking And seeing we costs what off is coming construction

significant a might we now fluctuations. into where some we six to have increases we're product over months Interestingly, other year safe. really in dollars, out not So cost to pricing not We perhaps on my projecting projects less next million different seeing though, And space smaller maybe higher projecting than that we contractors said, having been than of of a are any But view some far of coming be disruption attribute this that categories. kind of just a our a are shifted lot maybe and to too today the year. ago. underwriting other -- the about that something we our

being to from more in win they're order us. So jobs competitive

you. helps that hopefully, So

That's very or not seeing you helpful. Are delays yet? any schedules in

dates, delays, necessarily. that our bit, mean, on projected some repositioning of but some completion the page, point, a because I I at dramatic, those to. this point Not little projected can of of nothing adjusted we

Okay, fair there any whether enough. And me. the Is or this end XX% next missed one on think ABR. of then if of role one But I three is I earlier. lease for spread year, remaining quarters? throughout Apology, the the for it's last timing, this sense back waiting

into fourth About impacting our explorations Yes, the Connor, that's less lease And XX% I assumptions lease in explorations. can take that. visibility are quarter. those of certainly our occupancy as have we

around we get year. the provide assumptions move and year more we visibility, as lease updates for and our we'll up around through So timing the

all That's me. thanks. for Okay,

of Our Robert next your question. proceed Rodgers question comes from Dave with W. the with Baird. line Please

tenants, sub in by bit could think in for I geography markets there. you little the sub the in your average. the that I And growth aren't that assume. are would you're markets any push mostly market if by I morning that, you well Howard and and that you to prepared you longer rent guys, growth or compare out leases, think performing rent the term they good Yes, maybe targeted is seeing, a guess book wondering with guess your guess I how heard was said market for I there I X% comments, Michael, for that and I overall

some growth that we're on seeing. that you of little rent a I'll give color

we County Orange growth. that largest it If in Inland rent growth the was county at Bernardino West. followed which San you like very covers has the the the strong look rent from looked that by standpoint, Internally a or was saw mid-teens, in Empire area,

interestingly, size well of terms the In rent dispersed. spaces that growth, seeing we're the it's pretty

spaces I space a and interesting, market think over XX,XXX greater just the below a next bit QX. category. the largest XX% of from seeing foot strongest within rent the XXX,XXX XX%. an in the was MLAs Dave, five smaller we've was And QX through in on last What's like quarter, over growth we're foot listing end growth, that rent seen to the very just in the X% growth, our portfolio, acceleration is more to

this of strength you terms every I'm question, of has other of the was growth. indication that your one had throughout as parts that? So sorry, in what year well, that of continuing

growth lease longer of out the to on push length given that tenants terms, Just the rent the you're for any lease the get seeing? term,

for lock based Yes, term the And well, comfort us selling we're on in rates lends this what as these and is well try to certainly some record leases further a that achieving. cycle time as us now longer leases for in lease I'd X%, were able terms, achieving, larger mentioned earlier those increases we're the the to, we many and X% to even rent above push to capture down pushing in is to that projects. in that

really of quarter, that QX. sized in lot overall, XX% just on period for have higher attributed in much of they space interested a lease markets, a the don't for in time past tenants of about we the little than size in behind leasing a term past. the have they're longer as the our more what shortage concern being to of the could have about a But of completed just in space than recognize growth we lengthening controlling bit a and a So Also, space be you in might that bit basis. saw, average certainly longer terms was in average this we it term,

as well the increased you math, so sort the And term that to average. when of do attributes

curious I assets that numbers? and helpful. Laura. a In kind for of but bought million with one just for $X.XX had XX that's outsize, could. it's forward you million anything you curious follow XXX sold just up penny you assets helpful. for depending particular a and Laura provided, on the of you the in was if doing FFO had again, there was that, Great, contribution an negative Maybe was about delta which of I I on plus negative think Thanks roll in kind had those that, that realizing that those maybe

what of $XXX to acquired, which and quarter we've more end more the and it's is of think Yes, to acquisitions. million, today, I function subsequent that includes a related

$X.XX estimating that will So, as per mentioned, those acquisitions share. we're you contribute

in we heavily very yield core is of X.X%. expected and remarks, yield add properties, and with weighted a prepared value activity towards plus our stabilized acquisition As an discussed our today

is So, and per and that $X.XX to grow contribute cents growth share long-term embedded to contribution expected grow time prospects. per NOI share over to FFO certainly will our

you. That's Thank helpful.

next from Our the comes Chris your One with Please proceed Capital question. Security. Instructions] Lucas, question with line of [Operator

Couple question. then of morning good bigger picture there. Hey, ones, quick a out and

period debt back I first quarter. for Was what Laura expectations to it over is to related the improvement on to So bad he recoveries wanted the just that you prior go was? specifically that

the list. It's that tenants cash on collections related we are that received watch from to

amounts that prior owed So we those reserves receive by tenants.

cash And cash the tenants that's that so basis tenant currently so paying for that's -- is, current period.

Yes, correct. correct. That's that's

lease this Okay, schedule. any then great. thinking there And the That's at helpful. I about known Howard, point? outs guess, Are just expiration major move

sort always we're And want at larger where our explorations point. up spaces. tackling moderately it's handled We've sized blocking this to we just of where of on and really back predominance

step both between that your you have have of Okay, those portfolio guess, want was Michael curious use servicing the taking and sort ABR that define in whether last or or state your view a your nature that to then a your local however thank are versus sort those multi-regional reach. to just tenants economy, multi of you our mile exposure, of it, back, as I talked broken about. I down portfolio, you. And The

base our tenant of that's actually Southern the predominance base decades think in the And many infill really a focused. of California. The tenant function is evolution of I regionally

not the business nation business. So it's zone it's distribution, to largest the it's in fairly the This the but of consumer economy base. economic also and most to just Rexford margin, is in nation diverse population And largest unique not a regional tenant the a nation. by substantial

of country, own in be its it'd world. I think So, the one countries largest the

we're upwards are that port not product the Arizona. La Long out XX% a in distributed Beach focus. big to your in two the largest But as ports it's regionally. driven So, consumed country of quarter as of indication, in or ports of of regional estimated it's two the in by really read predominant eastern more the Empire or box properties And way of

just So regional sense, size you gives economy. for of the a the

focused. regionally really is predominance the So

Great, afternoon. That's had this thank you. all I

with JP Our next question your Mueller Morgan. proceed comes Mike from question. Please the line of with

the and that? the on Laura, guess because $X.XX how quarter north recovery, bad in if debt significant them, the And was well already you're ask I take just you realize the that of range?

question. That's good absolutely. a really Yes,

recoveries, our bad So as I cash debt those offset, mentioned, those, expense.

been those a points XXX closer the of recoveries or have expense for would have had had first bad revenue. percent not basis to quarter as So debt cash we

year, included of quarter terms the versus items of that impact question bad that the lower I first that about. full just cents In talked analyzing $X.XX debt few a for around

an occupancy. incurred pickup expense that's equate items to about are G&A QX well. $X.XXX in together is that second some per offset The share. These by a as And non-recurring average

use can run you our if get rate, as the of So run year if a use you to and midpoint that rate, you guidance. that as a full

process. I repositioning makes on that square like? look then, sense. feet, what rough how it's could into investment to the Okay, could and as give it? For? X.X soon go not sense us guess, an pipeline, incremental Got redevelopment And Can process the that a you million shadow,

add Sure, on some might about the want bit color maybe costs. I'll of mentioned you or those projects, just some a to

square we project timing have we few quarterly time, about I around those that more offline year. projects specifics like will if call further the be the the to some you We this locking quite to microphones starting about as end But, drill in. down to optimistic you'd starts. know in we'll next at think you prepared give on before don't the by And more project. of more footage detail update any a talked we're of we're

And square page. the square are way, majority of really target repositioning. on it, future in only about X.X the the By dates, XXX,XXX completion it of our feet million feet, kind rest the supplemental can see the you of

what through million feet X.X would of square work I about expect, almost the XXXX. we end of of of that repositioning lease-up current some also add the end the of

Okay,

One more page, projected cost redevelopment. our reposition do the on the Mike, repo we is and repositioning there, on add it provide

million. for $XXX total pipeline so those about our you together, it's And if

it. Got

Okay.

two say to completes years. square the of redevelopment, over majority feet future of looking the to I'd the million notes that starts our within that And just and next X.X one

to There are the in to remarks. hand call further for like queue. I'd no closing questions management back the

Rexford We'd forward Day time to like look to your thank everybody Earth in reconnecting for on Appreciate Happy and joining reconnecting every and three soon. stays and to months forward well. look we and hope about today. focus

conclude today's Ladies participation. Thank for and you gentlemen, your does teleconference. this

You this have disconnect lines your a at may day. time, and wonderful