Rexford Industrial Realty (REXR) 10 Feb 222021 Q4 Earnings call transcript

00:04 Greetings and welcome to Rexford Industrial Realty Fourth Quarter and Full Year 2021 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] Please note this conference is being recorded. 00:25 I will now turn the conference over to your host, David Lanzer, you may begin.

for year for XXXX you quarter Industrial's thank fiscal and earnings We joining Rexford us fourth XX:XX conference call.

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

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

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

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

Industrial's Our non-GAAP XX:XX and earnings why open conference Michael. hosted Howard of GAAP release prepared we call will to Officer, to present Frankel the then investors. useful Rexford Laura package Executive remarks, and an is your and together make Today's will reconciliation explanation and supplemental Co-Chief Financial They turn financial call will Clark. Officers are Michael measures such call XX:XX Now some for over questions. I with the Schwimmer by Chief

per platform increase for FFO are strength a As XXXX, metrics XX%, and Howard, consolidated our and activity dividend of share by to the families team followed look growth provide and REIT, five-year that consolidated lead which average growth on XX:XX your are XX:XX and work growing your struck of of FFO NOI as discuss joining acquisitions continues the billion our year all back provide cash in We the everyone hope XX% NOI average you To brief and into increased then, closed strongest we financial earnings of our drove will by David you update of by the of remarks, to and every for as Thank growth teammate differentiate value Rexford average share Rexford you, positioned put with an we industrial will XX%, Rexford XXXX our for well. performing industrial thank flow $X.X We which Industrial's fourth annual XX%, unique Laura per year. itself call. industry-leading full this continue to XX% nation's quarter fastest we our who some Rexford perspective, guidance. transaction drive creation. investments dedication. sector. on and are performance I'll growth substantial five XX:XX and think

we on XX% On our on square cash X feet the a average and leasing leasing volume drove year. the for basis of and leasing front, team a GAAP leasing million spreads basis completed nearly XX% of

downtime million demand over range satisfaction Our occupancy. as And at of intensity and operating our and unprecedented X XX:XX over yield development by level demand end unlevered our in nation. to construction continues diverse with exceptional generating stabilized completed value an $XXX of as XX:XX vacancy customer teams sectors. over superior the continue square of low same X.X% creating creation. of exceptionally of property are property The Southern of as drive lowest with incremental XX% an portfolio fundamentals market platform. and infill broad and year at feet add California Our driven highest million aggregate management operations metrics and Rexford's historically value projects team an and the

California at Southern currently infill occupancy. XX% is Our over market operating

rental same increase and that stabilized note property nation. the NOI to our continue over look California market. project Consequently, acquisitions representing higher as contributed over market X% our the net the the as incremental market of to California $XX XX% growing the value important United in our market market, projects XX:XX repositioning rents are markets the is next Southern most includes recent perspective, opportunity limited entire we research-driven current of we to never flow internal to as within market below-market California incremental cash largest million $XX our only portfolio NOI our well about approximately and substantial pace market market methods infill rates. value. to our this Southern increase been industrial all experience to from grow only XX growth, an It fragmented five and countries In incurable capitalizing approximately roll Behind As Southern a share. the NOI we've our other major of XX% extremely XX:XX our across the infill markets months, million portfolio the is net We a proprietary and as largest grow forward, XX:XX compared world's redevelopment effective to as within represents unique NOI in million access Consequently, growth higher Germany. embedded due on and million combined. a XX:XX beyond From $XXX rent positioned also substantially at which the to fourth an an basis at is basis. $XX currently U.S. cash rates nation, for we largest next estimated our originations and enable supply-demand the market-to-market we are States, to upon entire values but annualized of vast and on imbalance a now industrial approximately in-place supply. fact, of not XX% on incremental is better China ability Infill

under XX:XX investments favorably we originations low pipeline a balance extensive sheet year accretive or the value. accepted positioned at plus over offer volume. enterprise are substantial leverage, growth, a an fuel closing $XXX acquisitions debt with contract of best-in-class beyond with addition, new million pipeline this had X.X% our of we In To to

And dividend are we're performance, announce the with call I'm our turn to pleased over to that, company's to Finally, very strong pleased XX:XX as we a increasing reflection Howard. of XX%. over the that by

XX:XX thank us joining Michael you and Thank everyone today. you, for

other us to internal Southern California markets. according recent of our historical rental is on of portfolio XX% rate availability Our increased markets. XXXX lease continued average the with to target strong the major average Based all lease, rents X.X% metrics, square million fourth future. CBRE, is XX:XX feet on feet prior during our for same-store the capture on Market our to we X.X at over quarter leasing million net high the infill into continue quarters now markets, constrained the portfolio square much strong the And markets our from portfolio expected occupancy Southern California spreads infill acceleration XX% growth lease rent the for while Rexford's basis foreseeable and our underscores weighted market at quarter. The wide which exclude did exceed cash significant performance effective of not by supply expirations XX% of approximately XX:XX achieved space The ended XX% our strength estimated substantially East Empire lack basis. This quarter year. to Inland available to continues positions well a these land. of and XXX consolidated estimated vacancy. market XX:XX includes year mark-to-market million unlevered our coverage, of buildings the transactions have for X realizing For XXX a land signed through estimated and acquisition's add. processes through stabilized XX XX% generate were acquisitions square XX:XX industrial or XX% acres with X.X% of lightly price buildings we deep which aggregate land full XX:XX of spreads completed of unlevered acquisitions acquisitions proprietary XXXX, yield. of For XX% storage included research for of Turning feet $XXX for yield X marketed feet approximately XX including growth, acres and and near-term of X.X% purchase on and near-term value acres the In off-market XX% sourced relationships. of square million, fourth external X.X an of to $X.X This initial redevelopment. acquisitions an respectively. totaling the in acres XXX and generate acquisitions about land, we XX the adding redevelopment billion, GAAP of acres acquired initial outdoor million an of X.X% cash These sites of full aggregate stabilized completed of yield blended quarter, driven an on aggregate, within and our XX.X year, X.X% yield. low

On the aggregate properties an disposition sold five we unlevered XX.X% for the front, investment. which million, year, totaling generated on IRR $XX.X

investments. and we projected continue which aggregate in sell recycle capital. expect to As stabilized the $XXX to value-add completed end, to on aggregate yield of that X.X% acquisitions, X.X% an value a initial unlock Subsequent we an unlevered XX:XX with yield opportunities, were year past, assets predominantly total million opportunistically are generate to to

diligence to million $XXX transactions have currently or of no with investments LOI closing. guarantee subject we new ahead, due are These under Looking of contract. customary

Turning you and repositioning keep apprised are will We as activities. consummated. to XX:XX transactions redevelopment

turn full We the X on we total X.X%, For our the market have over that, and planned the value X.X% $X over rates call cap return in that an value total to on XX:XX with estimated estimated stabilized $XXX to investment representing million six across representing exceeding with in are investment add currently year, current than yield And are mid-X% properties approximately of investment investment total substantially million at an projected pleased and current more projects million unlevered aggregate deliver of to about of incremental and portfolio total of of aggregate now the I'm redevelopment stabilized range. square Laura. over billion feet $XXX creation.

came in XXXX basis. normalized impacts. NOI basis GAAP growth a and cash XX:XX Fourth property NOI Thank a COVID of on for same same on quarter that Howard. when projections at XX% Note related property with was you, growth results XX% ahead cash X.X%

and points Continued full XX:XX Property occupancy Average cash the on XX XX% basis XX% was basis strong Same our growth. in and the exceptional spreads XX%, leasing Leasing points were quarter year. and spreads basis XX GAAP and the for contributed sequentially year occupancy respectively. gains prior up a over to

zero capital and executed the expectations steps a on to year, with for normalized FFO fact to at Occupancy grow FFO fourth same-property embedded $X.XX core NOI on year, steps us as XX.X% leasing measured at full full that core growth renewal basis collectively tenant and the bad XX% average $X.XXX X.X% Cash GAAP on Rexford's growth commitment on demonstrating per year a a leases. XX%, with For impacts. superior markets quarter of even XX:XX share base XX:XX for related by X.X% to basis. the per activities. quarter share was full by Driven growth per new by cash XX% annual rent an Additionally, strong shareholder the COVID continued per robust and increase XX.X% share exceeded over share, spreads leases we when NOI representing our stable the per performance, remarkably full Board enabled and and for impressive a year Turning to expense share. balance by returns. declared have debt $X.XX dividend the now an to delivering sheet increase of total fourth

sheet outlook. strategy and $XXX December, of balance transactions our cash million continue favors agreements through equity through We sales at execute rating leverage In low Rexford subsequent we quarter an to on cycle. million quarter quarter provide remaining for questions, settlements to that forward times. net a associated of a forward $XXX common offering September stable. position our the X.X XX:XX our the fourth grade $XXX markets average our over overview activity X.X EBITDA stock is million ATM S&P price our facility. positive $XX.XX of approximately to on issuing our include proceeds capital public outlook Before which the of million X.X executed I'll And fourth of equity At proven and on forward of turn with full from including at of was for shares and ATM $XXX ATM and quarter, favorable the shares year-end, quarter debt we revising was the includes Fitch investment quarter sale million our from of credit approximately recognized liquidity end, an million $XXX in for maintain XXXX basis the to and per renewed capacity. In your we of proceeds fourth end, net to share. ATM settled the call Capital availability XX:XX our $XX for program, million million, all

per range midpoint. core share, at earnings Our XXXX projected guidance $X.XX FFO to growth X% $X.XX is representing the

reminder, this closed. guidance sheet related As acquisitions, activities not range dispositions does a have that not balance include or yet

highlights include basis to and guidance forward package. is X% of X%. A XX:XX our to We NOI property cash have detailing on same provided the a a our drivers be roll projected few supplemental growth

is to Same related to property to impact the X.XX% same growth repayments, GAAP X.X% to cash is of X.XX%. be COVID projected be NOI year-over-year property projected Excluding NOI X.X%.

as net of property to contribute growth same approximately extent points by to company be XX:XX non-cash of of XX XXXX contribution projected million leasing NOI performance-based of growth are XX.X%, their same in $XX only compensation, property to $XX and are driving the recoveries and a Assumptions XX%, is $XX incremental of the to basis include Our in to of $XX higher of percent remarks compared of equity to finally, debt exceptional to revenue spreads which $XX completes projected million expenses achieves XX% zero million are XX:XX approximately our welcome XXXX. in now bad when the $XX XXXX. offset performance to million we average and includes interest in G&A expenses projected realized projected basis XXX million million. occupancy And Operator? returns. XXXX net the shareholder superior $XX in expenses points your questions. compared to prepared acquisitions million range be This to range and to

from be time, And question your Our Instructions] America. a Jamie the we'll [Operator session. with question. this conducting with of question-and-answer proceed XX:XX Please line Feldman at Bank of first

Thank Great. XX:XX you.

So just gave moving I to appreciate on I guidance. all out. pieces guess you start the

it's kind mark-to-market be strong pieces had going in you us moderating 'XX, slower why given You biggest just of to gap? Can help have cash the next moving in XX% a XX% same-store year of you year, really understand it's the 'XX.

Jamie. for one. Thanks that Hi, XX:XX take I'll your question.

it'd further think walk same components. the, the into to on helpful walk the I property happy the to bit be once of little I through walk you dive through these and any components through a

a bad assuming around is and then are most And overhead normalized area. significant of at component to the level overhead expense of about property expense, point leasing does sitting that rent XXXX XX% by, an a taxes, occupancy component same include to guidance and decline the components we XX% is that and the last XX of insurance, spreads expense occupancy through bad X% XXX that a growth debt of cash finally It XX.X% the XX% was the, XX to bit of certainly growth. but same XX.X%. by tenants was of points. and basis in the point is same short currently percent net there, quite related to pool we're base and recoveries basis that's our to well full be XX are and in and insurance offsets estimating in XX year-end average our property a performing year the occupancy XX.X% occupancy pre-COVID are while more same debt is NOI I'll growth debt, the note And in offsetting Bad to guidance are basis property assumptions points XXXX. recoverable, increases tenants of allocation and net a that driving So, about growth be basis in property of growth basis expense projected about increases are we're and as NOI basis in passed allocation are in taxes offsets X% to and projected growth really same at our non-recoverable. our property about little revenue XX:XX color then So XXX XX:XX points include points. of in imply the that

of you the are those X.X% get significant midpoint guidance. the to same components cash our the property at your, so And that

the then you sticking that recently mean with fourth I Thank even XX:XX moved increase into expense you projected that's very That's you. expenses that quarter? is mentioned, how feel like helpful. into -- much as fourth on the much based or in pretty -- in bag And have Okay. the the

Yeah. XX:XX

net the the of net, bit So let's little a to expenses right. dive recoveries, down

largest And of allocation. driver around is so, overhead the that

allocation our has portfolio the you substantial. years there, think drivers been overhead the certainly about two when and in so So growth past

increased portfolio our Our has XX%. square footage of

growth years been last NOI the consolidated over XX%. two Our has

So, the $XXX also accepted growth million about right. date acquired and offer. thinking and million We've in pipeline under that's $XXX we're the another future or contract prospects, to certainly have

contributing growth to this I thing timing So, one think certainly our in think headcount. and is ebb-and-flow. Jamie to And the the is can hiring XX:XX about of

we can the So there future looking from growth catch in up. times where the can There where be there and also of points and hiring a in about portfolio. growth time thinking a hiring is ahead perspective are be the

in. So about baked what's when fully you think what's,

growth that think that XXXX that to in our component led in many some and hires team overall that and is XXXX back growth increased promotions that more the that like is is in of of XX:XX half -- of is, as year. I the And members compensation. part that. other those of that labor and end exceptional full important The others, cost occurred a of the the well. realizing levels we're is increases And at So impact experiencing certainly component team we to to performing so of all some are congrats mention the at impact we then,

So allocation. overhead that growth components that's in are key those the of --

is then Thank so Okay. And to said to you excluding growth that. you XX:XX the number just X.X COVID. confirm, for cash X.X

getting? number So that's just kind of of how the a portfolio clean

Yeah, XX:XX correct. that's

most than general of the as COVID in represented ADR. in our deferrals were quarter reminder second less X.X% our of COVID granted Just granted of were second quarter, a the deferrals and XXXX

XXXX, remainder the the were of XXXX XXXX. $X about million. granted collected in COVID deferrals We although, was about and of in So, those in collect those which bulk deferrals did XX%

impact of COVID And so pretty is collections insignificant. our XXXX

growth, COVID the you in impacted look same by positively decline at the So adjustments. property cash the when it's year-over-year

that's additional property midpoint So points cash at on basis our and X.X X.X NOI. that XX to the same guidance

XX:XX me, of did this last in think 'XX $X.X in acquisitions the billion Okay. that. Thank you in so year. acquisition terms of then do and you And for -- is what could do sorry, you realistic from volume 'XX you

You've got now. million $XXX under contract

Hi, say think the that XX:XX before well. offer million. we we out months every starting are $XXX with But Hope January, be I already time slower we question pipeline. Jamie. to February I you're robust and don't guidance would our told this we've on said, and It's closed you, acquisitions. you've a asked that just Well, year the Howard. seem

So we're momentum hard for to opportunities year, to of have what put strong and else under Obviously, the a excited out we of we and hope we closes banner and with see lot a it's another what pipeline we're contract starting that predict. year.

I a to way it's this anything pricing to sellers? potential for Thanks maybe better XX:XX is, last capital in desire or what's market the put Whether on that. it guess out year desirability or your changed versus has this or maybe year. time ask

Hey, question. Hey, team cash of rates, that or Thanks it's much level that. would that interest the focus in us inflationary flow even think XX:XX environment Jamie. remains even growth an associated We're you the say acquiring see so provide greatly same opportunities the and focused the that doing can buying and that. with transactions I I Michael. -- our impacts with on the would exceed increasing for

down opportunities. our done and on really on Rexford And we execute originate what doubled to so ability value-add at we've

we're rents. competitors our off-market to square way, to buying, value of add marketed market we're market that here value-add that's oftentimes were year the are projects front, lightly because California. through million majority XX:XX value the achieved not at a gave the yields vast you mean by solving I near-term acquisition the we're to you that And by that's below X.X%. about with The If we're in double add as originating over on also Southern X.X% and Infill mostly the on look embedded the we bought under look transactions last rise year, deeply available generally at mark-to-market in-place X%, solved competitors to feet. just are what what know that our opportunities. projects opportunities So you that last

that's that that's down than is that's focus. see we're as the I better And ever, And double you than investments. capability, really stronger that think we ever the markets, so the why our and think and value team you see you creation quality in digging see why -- of in I deeper

really that environment referring that's how you're against things I general. costs think hedge you're, I the of to increasing So an such think in and in we terms inflation in

Michael. XX:XX Thanks, Okay.

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

quickly XX:XX the Howard, seen than your a back rates there's be at impact thus going going retention are point, growing to Do how in everyone. rental on market. bigger on to just you comments think far? Hey, some we've

far and retention, operating tenants than we're to Well, nowhere XX:XX vacancy at as less for X% go. as there's

maybe it's we do is market to for have dramatically to begging of have we We've past, to we just a repositioning have because people. be options the that to the a nowhere to that lot projects vacancy marketplace. So it's to got terms there's change some to to for in And dysfunctionality in rate us exit, going they're property times the renew the go that of were there where in planning want mentioned a it. tenant

as the unexpected future, I our obtaining retention retention to tenants a but in mentioned XX:XX side. think So And out retention, option. the I lot what to be expect some even our are really in operating of retain we're and are similar in terms manner of terms in the those mind of a foreseeable move going of at for keep

further even on road. exceed rents plan what retaining tenant, might for can and they be are in that But tenants go we us renew. desperate so we an describing, above that the move review are might value instances, some thought existing forward ever assets to the -- just get little and space, paying worth want a them and was down building if they're able creation as far we we'll to be and to value create from we and So even get beyond what do Michael these a

they're nature XX:XX same you've managed they paying are of always off-market And tenants they -- rents even maybe that acquisitions discussed though we've those buying, past, and or your with happy are in less when the are, higher assets keep successes where so of even are been lower the leases those buying and where they professionally having to the rates have aren't doing continuity you're to just market they happy turn flows assets and actually but tenant though potentially they might the could be? were cash

Most right. buy All for are leased recently leased and in target assets we typically of a to adjusted place because XX:XX the assets they've market below-market a rents, has rents which have that while. been

lot capital data at smaller rents about the below In really and value quarter XX% tells and looking but still partnerships, is like they're thinking those Rexford, unlock rent they're the do than their have we get owner requires more a retain tight to those rent the a in fact, about, and the be, somebody getting just assets capital make if were rent bought there're bit worth market that our surprised growth still when or more they of times in also a well their and somebody willing could when since that a which even them came occupancy renewal what also and penny, the most that what investments and in getting rent they larger market them fourth our of of modernize And property's assets. do, they to markets from are invested spend on a they're not individuals shocked they below bit to in-place buildings, get especially our typical they're growth. don't acquisitions aggregate and for in and they in time little again

XX:XX Thank you.

the next from XX:XX Siversky with question Please Berenberg. line comes question. proceed of Connor your our And with

XX:XX spreads Hey, everybody on during me question and Appreciate detail thanks the always. we that leasing the A XQ. on saw for as having call.

you mentioned that the about portfolio mark-to-market number I and XX% So on the think baked is into had is guidance. the that

XX.X% number cash the for posted could and XX% 'XX. between that spread wondering I'm XQ So the what delta explain

have the lower a and just some even tenure quarter any that mark-to-market? of under the operating the appreciated. the older have So there of I'm assumption So during been color would may an little context, leases or that expired would be on

XX:XX Connor, hear This to from Howard. Sure. is you. nice

had renewals our tenant of We impacted feet building of of blends million extend a XXX,XXX Pacifica South Bay, lower with the in square spaces footage, by a that were on the in really mostly in So and couple larger we're Rancho leasing our occupies. couple a represented that project foot spreads the XX% working longer-term square where and quarter. of

cash So fixed-rate that on calculations in parameters and below-market had of a X.X% X.X% months in market and a Diego spread. we the in a that extend lease, XXX,XXX it building but and the seven met feet, that we had renewed included cash XXX,XXX short-term spread the [indiscernible] San being they and had all had a foot an in-place option to

XX% but were leasing to in very you had look our much spreads We still GAAP XX.X% leasing but and So cash as spreads, leasing our those new spreads, we didn't have new so spread. and at on we're lease, we strong. didn't space influence a leasing have huge new quarter, those when much the

you our talking are isn't occupancy just X.X% a typically those us there quarter. what portfolio So of hear past more able but space lot in about, to that that lease in we're

baked XXXX XX:XX into sort just XX% the But being of clarify guidance? Okay. what's number to that's

XX:XX to take Do want you that, Laura.

add Its little as well. Conner. XXXX a Laura. talk I'll Hey, there color about Yeah. then and XX:XX

XX% look certainly year next when basis. the results is certainly quarter-to-quarter a on impact to look XXXX, it's mark-to-market think quarter. the the you in XXXX to expirations you forward important on about basis, because the full But XXXX think at issue can I on our a when cash an individual

looking XX% mark-to-market on guidance our and at around we're significant our expirations. XX% forward XXXX pretty the So midpoint, seeing leasing spreads assumes some the

XX:XX That's very Okay. helpful.

thing, On one quarter, XX%. higher the for by XX.X% X.X% and instance, was FFO quarter an the rate which than add much of grew per-share QX growth key the FFO are metrics, the And share the quarter, for to X% for higher just XX.X% spreads of a I'll year. the overall grew for growth year. growth of component for core than Michael. saw It's XX:XX core XX%, in one by rate actually the a much annualized basis, per we the for acceleration

So cash I terms the company. for flow in acceleration growth think an was QX overall, actually of

XX:XX what remind look in-place just us Okay. you like? And then then could escalators

XX:XX Go ahead, Laura.

I'll Yeah. it. Okay. take XX:XX

the signed we've this at So seen accelerate. are ability that portfolio rent total the through place those escalation the and overall, across for increase in actually XXXX portfolio, certainly but to to steps now we've X.X% continue leases rent

rent quarter, the steps X.X% in third look from there and If at quarter. were fourth in the that we've X.X% up the you average that's signed

look at on leasing we of the that our the year, sign you if average all X.X%. full rent So steps was

that it the little cases, that X.X% seeing time move a to in-place some number bumps forward, is we're and seeing up, the we're X% market. some bit markets number rent So in in to of capture but more becoming move takes ability common portfolio to

seeing construction, Okay. more million Empire on million square at from is I'm specifically, about just for mean Thanks XX Inland focus XX:XX that. so activity, back. XX And feet about let's that one me, under I construction the looking of

but a service possibility market, of that see seem tenants or same know LA Empire some just the some tenants the a of in thinking into out there Empire. is kind LA provide could Inland it the I'm from your loud, proper from the Basin unlikely? is of you the does diffusion mean, we I the that Inland where could LA situation I out So in have some to presence

product because has been supply seen relief changed always Connor, the recently in the very that is limited of That's We've the lack Inland for the XX:XX infill there most Inland coming the of markets. lately ones the Empire supply right leased though ground that that pre-leased in either or see becoming is of or you out completion. and of lot Empire a availability at

just lower an is Inland markets. of narrow. in more we spread And today, and than rents western more it's infill And look have the in been some the used more the the Empire absorption the between it of So rents all market markets when amazing Inland interesting of Empire substantially also we've in some much of seen closer that amount and is our markets. that very to frankly what's at

building a do markets, some hour to the XX be times of So you of quality and only Inland while plus the that, the in they infill of other strategically then Empire a they're also lot from these do can't you location. a service minutes or it's need of side if these markets Inland really do tenants of Empire. like it is a And higher an located to need have in XX:XX it or other away their is more customers actually question

that are able their find Inland people's than So a infill you are in locate that to tenants in Empire different businesses be really lot the the the to markets there. needs there have because

there. XX:XX leave very it Got helpful. That's it. I'll

markets, is more said was be to just be our to in and Eastern in I the rental of he see deliveries referring for, construction know, and And XX:XX pretty demand haven't to seen rate seen in Connor, don't really the markets, think And But new type Eastern for impact your I which impacting infill Empire that Inland seven don't what deliveries clear. clear, in has Howard recurring. is I years, the it's infill demand too, been think past construction in growth just volume we in this when five Empire been of we terms are now that question. to we've that's consistent our

the development sense. yeah, about color somewhat square makes really No, was XX:XX I Yeah. a whether just concern, been Thanks. million or have of XX not would feet of but that curious spec

next question. our Rodgers your Baird. comes question And XX:XX proceed of with the with Dave line Please from

XX:XX there. morning Yeah. Good out

the ask Just to redevelopments. wanted about

million some I you to this in then a maybe the either see bit the generally changing that I spaces of little answer year but storage, XXXX? the here for are be you And had is to how plan up up $XXX guess current, thoughts? open completed million more scope start you is assume everything, because said just 'XX, warehouse might can and talk $XXX bit planned but on I in that little are think service or a spaces about orientation. maybe trying you curious cutting you your the projects, more

Sure. Dave. XX:XX Howard. It's, Hi,

be yields creation its probably $XXX years couple next strong about So, stabilizing about of $X in of over we'll spend X incremental square and the has million of X.X%. of and feet million projects, different over about building XX value total, buildings have that few we with an that's billion

incremental million stabilize we've of at bit we those today dock at XX counts the seen to that also similar In with will and space 'XX, terms projected $XXX about return of changes containers terms of higher an I start will and and X.X% XXXX, the is think stabilized second what quarter in then have of delivering that. want people the on-site projects spend more any on of anywhere market in from want XXXX a And we're total product, second store XX:XX quarter cost.

ability higher have instances coverage turning make down as in extensive a with and we're substantial those in lot we've success had were for more and terms in well. of little to that most sites of to an coverage So are typically on and improvement sites have you that excess are meaning, difficult XX% just sites very the creating that container buying for some buildings very work do that running, around some are loading allowing right no norm storage we'll storage and had land as our those site, of selected areas, space container on achieving that the large we a pieces storage do Maybe and industrial we're land for site these in repositionings becoming well that could even can as areas of fact and we yards, sites used some outdoor low storage buy containers. in what instances, on yard but that of excess only demand just cities have and call in sites of exterior deliver amount returns those of

that with I the change have in I as progresses? that in of thoughts just to imply in respect using Laura as one you, for aren't realize the mix and know versus and XX:XX outlook guidance expense kind as be us there, Appreciate on coming maybe 'XX interest think debt for acquisitions apple-to-oranges, expense equity Great. I your follow-up then preferred down think 'XX kind to due that year I of color. versus you is may anything And the interest maybe but maybe well

XX:XX Yeah.

The being of million, we is ended So the year by components, couple a is bit $XX a the interest our guidance guidance being to decline driven. was expense driven is little million million. over XXXX $XX $XX

Howard pretty driven $XXX we mentioned, termination of to that related And that's our 'XX, amount about higher driving of a is not in one interest, interest. by really just it's other, start so expense projects. 'XX capitalized look expect items as couple significant XXXX, we projected capitalized then and had it's we When our million our factors; and some So to those in off about and spend in at so swaps, are rate interest higher $XX million one-time some to the XXXX. interest are impacting of burned compares

funding ATM the of standpoint, balance the we And of our is of full And sheet about then we of balance $XXX million comp it question positioned terms your a answer do $XXX And proceeds end as on a from forward, our year, well program, availability about have then remaining of facility. So we renewed a little issuance. bit just there. million forward no XX:XX from no, certainly think very going so in have credit the our feel liquidity in to we issue. how

to from times. think EBITDA similar the in debt levels a target of forward X.X opportunistic sitting to is net look standpoint. our to into look as really approach going going to X.X take our number to And XXXX. strategy that certainly up We're I we times, So raises, funding for is sources XXXX, liquidity capital to our an our X times

that us in the as markets into equity future you and debt acquisition the see in So XXXX have fund think you'll tap opportunities. to past I

you. Thank Great. XX:XX

XX:XX Welcome.

next the Mike Our your Please question line comes XX:XX with Mueller from with proceed of JPMorgan. question.

difference spreads Hi. two you of wondering the the kind XX%, XX%, so if same-store XX% spreads you're what's to, metrics was a XX:XX the the between my just number, cash mind Laura, get in I growth, prior mid-teens the XX% GAAP Yeah. the GAAP goes cash and big based assuming I those because probably high-single when think you've NOI of comments, we're difference got expirations, GAAP on or digits. between

So there, offset? seems an like it that's

XX:XX Mike. It's a great Yeah. question,

our guidance XXX So that's the basis difference is GAAP about and points. in our spread cash between

with the four context, XXXX, point points four Just point was relating if the In to has to COVID GAAP basis past the XXX impact. that about basis put and that XXX years. past in of over gap points over to into some about with XXX cash years XXX historical -- back between that basis about that look impact we range, been gap basis about

XXX about look So if points historical, XXXX higher. point basis spread, to you and forward basis it's it's to the XXX relative

above points down below-market spread are as that's around non-cash XXXX. I of really couple XXX that's it's that we're things points, then second in XX:XX lower So where cash to happening basis to above some XXX to rents in mentioned few impact related income we split of factors; rents. converting move-outs is below. that a able is one-time then to that really second have around The some about XXXX those we from first impacts -- and a above did rents, expense represent were below: we basis is, proactive some take higher related market in and the certainly had One excess higher market some a back that's lower impacts of non-cash impacts below spread that between larger XXXX, but projected evenly that third generate really to one-time space just and that convert COVID is some in hit And

outsized the and straight-line projections. assumptions can of another in third assumptions straight-line spread. there's decline kind your that number things then XX:XX and rent last of impact that's a that component a is And So of rent

discussed, amount which lease And can I our be and driver are well. lease so projecting timing average were one of another of it activity those expirations occupancy, of can to overall that the lower just we as -- have

So that outsized was of about that spreads. another third

So what's lower XXXX. non-cash those in are driving

it. Got XX:XX

you. Okay. That's I helpful. That's all Thank had.

XX:XX Thank you, Mike.

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

expiration XX:XX just that, If next I'll with the year Howard, look relates schedule. the the to you Thanks for question are rent a taking which expirations years not start everyone. at just Hi, questions. this maybe levels. after around bigger Is my picture release five the plus but on that I coming the really is expiration can is schedule? that if lease XX%, environment stays there that the the years of it kind rest kind of assume XX% I XX% mix embedded or generates next mark-to-market of the six mark-to-market anything in that same entire over 'XX or throughout the same

add just XX:XX this on years. and latter the a little Laura year's let talk about color expirations Hi little Chris. Maybe I'll a quickly I'll

million In to XX is so this renew. And that's is expiring. third what's that expected X.XX no feet, what's terms leases or our repositioning are year, assets moving are today of about of top of that to interesting we

this Empire the And year none to of County's very XX% from pretty of of last look and now least lease forward, our get what mark-to-market in be third largest components marketplace happens to year going but really you've and terms of in terms the have a the how spreads, the at us fourth of for of XX% the literally our Inland Mid by where And in portfolio that is is seen the probably to So through adjust those it is at vacant. that's quarter. significantly then XX:XX XX% obviously biggest us expirations little quarter now, know we XX% we amount of just driver mark-to-market. followed mark-to-market West in

that I number. giving to think we or had I up be XX% guess might XX% the I wrong

to XX% XX% XX:XX Howard.

sorry. XX%, XX:XX

are moving and really happens future. markets what dictating the in it's So the fast not incredibly

other to hard spreads. future have thoughts Laura, So you on do I any don't know the predict.

just thanks we this But little relates Before pool, a cetera bit go growth, this it the back-ended et and is also Michael. again a its that Chris, us, the also lease it's expirations, because for more year's same-property for spreads. to contribution to the future on the little earlier XX:XX color year. from also question NOI Jamie's joining which impacts

equal the of XX% also second are the not half volume year, spreads about the of have the during the year. but you throughout expires rent So

of year. So of the expirations rent those the spreads compared for as are year materially higher first during half the half second the to

Chris the equal year So weighted it's of -- of towards question year. the the part not through sort half of also it's I and was think second your contribution an

-- helpful. I really driving to that. something for want I you just it across about this understand or strong mixed appreciate the in Laura really it portfolio comment expectation sort spread question? That's of is the extraordinarily I'm the lease sort did that is just that's board -- embedded and trying to or the whether guess is of point the XX:XX not the or

XX%, you average at mark-to-market XX:XX question. the that about then upcoming this XXXX Yeah. I a mean, when about the XX%, XXXX look what is that point, and mean a -- good it's at at XX% I look under XXXX, little XX% If we and into overall in at portfolio mark-to-market about years. XX%. that's are the lower bit in so puts it's implies

bit gives perspective. little a cadence mark-to-market there visibility the you more into from that So a

helpful. couple thank Great, detailed very a That's XX:XX as follow-ups. of you well got Laura you. I just

is of or is On sort locked the are brands trying prior understand vesting number? that this $XX.X of mentioned, there to got that based much non-cash on comp, Is guide. how variable. floating just you that in any of I'm million is you've a

out paid three Chris performance over XX:XX on Yeah, is I years. is next mean, and that is $XX based million what the

metrics shareholder out the and picture, absolute return. tied it's that relative as well in total what exactly our to big -- is But and paid proxy that's XX-K. So earnings exactly growth as how detail

hit each year. measurement points not we in those So realized those until are

trying guidance factor it's about to part it a since where with to you as filters ATM, you Okay. deal how as big And relates -- do do your just, that do as A your I'm you well, guide, or the forward understand think through? how assuming you unexercised currently, assumptions -- XX:XX that. that then into issue not just of how acquisitions not what's you're

$XXX I think you have forward. we the if outstanding Chris, million year-to-date, on about Look have and Yeah. $XXX XX:XX million acquired

certainly forward So assumption that that to is proceeds an funding -- be I that could think funding contributed And forward be million. from a forward these that perspective, on there based year-to-date could you -- $XXX could have

mentioned question number. you for mentioned or impacting me, that's unique last And a couple there renewals sort Okay. that fixed of some of earlier XX:XX renewals you just that of were

much renewal the as to portfolio curious Just has how it? to fixed options of

little. we bad buy in that exact very the me, We're Diego I Very overall, don't an a have the was saddled XX:XX of and an asset have one with fixed option, market. it's in-place which a made Rexford decision Occasionally, number anybody little. upmarket. the mentioned somebody with say, lease. -- on never it front but else may But San gives would and I I in everything's overall case

Thank color. all Okay. the Howard. Appreciate XX:XX you,

can't remember was I that XX ever say at XX:XX doing years providing going least. good to in I this, of

Thanks. XX:XX

Thank you, XX:XX Chris.

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

same-store same-store any you should I clear do future? are can I minimize you your raises, guys headwind are into XX:XX other Great. ways point year. you're there you Thanks. this the growth growth, this scale it up of on mitigate a and think a this but past allocation grow to Laura in as future it's these kind just kind hires or the which after as new of to at years at think you going looking we expense how mean overhead following think keep about affecting think forward non-recoverable growing,

XX:XX bit not around cadence. happy provide a a how about more the provide And It's Hey, think to we're Blaine. to good going today. guidance little color well, you question. I'm XXXX

and certainly as cases, can of some a So I on year-to-year the there be hiring can ebb-and-flow timing think in kind of mentioned catch-up. I basis, some

we you is about XXXX, of to years a I beginning a maybe hiring were bit operating say could and the with so going of at we environment of XXXX there be there slowed of and where when were some would COVID a that, little think lot where into uncertainty rapidly, end up. still So very a but pretty much growing in and extent catch the

We some right, our obviously ahead of hiring and look more So a that gives ahead, overhead in weighted bucket we to to look of impact XX:XX XXXX allocation ability occurred to a too but back-end understated the have that this in been grow. so little that then, it full could in was ahead in that way. we're you're certainly the XXXX. seeing we as and forward, bit want the that could into overhead far not extent, sure a way, allows XXXX through certainly be staying staying make us at And you could catch-up us --

look five So at scale, we G&A we've mean I continue year benefits think down number seeing past from in every that for or G&A and benefits to that XX.X% from four years. the was as XX.X% an perspective, down overall and for right. you're XXXX XXXX was of a of the seeing where revenue percent are I seen the our you tick

So and stay on we expect same trend in XXXX. to that

timing an of certainly we're impact bit issue synergies overhead we of think from the is recognizing are allocation I So an here platform perspective the little what within seeing a and

makes of Great. XX:XX a lot That sense.

internally internal end kind at per operating in AFFO level and substantial right to very is your the Blaine operating that dramatically. can and it's since a growth five our XXXX hallmark that performance And growing day, and the XX:XX years. if built which we and FFO accretive to company leverage all we're of be that's of growth the use it FFO very we very pretty believe I us, in accelerating it's and cash the FFO that of view great will think in embedded and towards leverage my the talked FFO that increasing our the is IPO we next, the it's generated two and a lot share business, have look reflected do company, briefly, per for business, growth the driving And just of XX:XX the do add important about the at And leverage measure strong generating operating to very is share shareholders. you to amount that into about in of we of of talked roadshow growth into we've another it, in we're call but driving growth, a think we lot our

that positioned we operating So we of we're think level margin in I well and business increasing leverage look to at metrics a be for the that really company the and grow as NOI and think embedded of across I model is range here. margin

there. guys That's maybe Michael. and and And seen helpful. you seems and are XX:XX upward the like guys given into even going how those that increasing wanted sticking construction we've ramp-up somehow? dealing the pressure are ask about mitigating and labor seen in we've with costs with you you it to I or Thanks, even continue and or investment redevelopment to on that repositioning Howard, costs maybe exposure

costs those one. that happening roofing further sprinkler those are projects for to to is XX:XX literally doing Those so commodity type rapidly. out example in them there an Sure, buying we're those yeah, I'll and increases buy and on, we cost take of instance, of that prices and we on is can up some buy and all Well, some fire you very trying mitigate rising have there been mystery are things the doing give lock-in early What obviously materials steel to systems, we're when then need early the roof avoid increases. XX materials. that construction months to is no in systems, prior price those these

a projected our and see growing the repositioning could have of it's or yields. and that all how we saw to redevelopment of assets it yields returns going that our we you So in thoughtful where to quarter-over-quarter very expanding in think terms in I approach you had show

Thanks Thanks, everyone. Great. Howard. XX:XX

have answer now turn session. we reached management I'll the over question call the for end XX:XX of And to remarks. closing and the

of entire Thank you, forward on today. everybody in and stay healthy, Directors, Well, XX:XX of everyone. we we us Board want reconnecting the thank joining to Stay Rexford and Company well, few a our to months. look behalf for

and Thank lines your you time. participation. XX:XX today's for conference This at concludes this may your disconnect you