Rexford Industrial Realty (REXR) 7 Feb 242023 Q4 Earnings call transcript

Greetings. Welcome to the Rexford Industrial Realty, Inc. Fourth Quarter 2023 Earnings Call. [Operator Instructions] I will now turn the conference over to your host David Lanzer, General Counsel.

You may begin.

joining Fourth for Conference XXXX you Call. thank Rexford Quarter Industrial's Earnings We

the yesterday your federal in release we addition remarks defined at press In to by call, today's distributed contain section our supplemental management's forward-looking and rexfordindustrial.com. as On Relations answers posted package after may investor securities Investor presentation to laws. the and on website questions a close, market statements

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

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

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

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

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

over Now I turn the to Michael. call

Thank by our Quarter begin remarks Laura operational provide Earnings then few Rexford and with results provide a you, Call. followed Industrial's Fourth detail, everyone, and who additional market I'll will will some and David, outlook. financial Howard, to welcome,

I'd to initiatives. with, of our our for Rexford value team strong begin To like creation results thank your across all

great to a a marked we look XXXX It's as exclusively focused business, decade. on and our as to and our Southern our next creating our year California. growth As XXth within position XXnd year company as reflect public forward our current value Infill upon a time

highly of fueled averaging XX% over average total or XX%. at XX year same average model offering a full shareholder years, return occupancy, year, We XX which differentiated strength our year years has the market generated opportunity. public a FFO our Since was almost for per earnings per prior growth per share essentially XX% we've our about the property of team, demonstrating and portfolio strong XXXX substantial on our business company. of our the maintained ago,

NOI of rent X.X million XX%, feet increased effective million driven and the square feet average XX% bumps investments, averaging net and projects. team highly rent over repositioned with X.X by embedded consolidated square principally of activity Our spreads by of square of lease-up new X.X leasing of over accretive feet X% value-add the absorption million

contract industrial markets degree California Southern post-pandemic and of year. demonstrated quality prior a ports increasing interest the demand, favorable about Infill with demonstrated to the in high Despite our by by well fundamentals of portfolio headwinds, to the normalizing Our last labor year's nominally similar Stability rents pandemic rent resilience exacerbated a rents within are negotiations also We over Infill rates. endured California for the over at markets. prolonged tenant our growth a Southern growth positive testament after of Southern Infill having X.X%. with through California, increased stability XX% associated industrial and supply-demand products

L.A. lower Asia Gulf via the Canal, compared Coast the Suez from trending due sized with may to ports importing to and shorter submarkets, we labor year's see market East through Middle a backdrop near-term driven are Port resolution favorable. our a instability the decline forward, Beach in with certain looks in extended in accelerated the cost associated Panama drought in long-term last capacity Long we and although for frames Canal demand select As a to look impacting time and the choppiness volumes negotiations, product East of growth by some ports. and port

exceptionally for deeply comprising and In next well our growth in-place scheduled market X embedded stable roll over mark-to-market expiring, X to estimated million to our providing addition, portfolio-wide pipeline and market internal rents, value-add square which environment our years team also for opportunity monetize the repositioning feet commit below may XX% effective rate more an and to to are growth leases our Overall, includes inventory of process net is rents. higher space repositioning substantially a enable positioned interest substantial more to proactively tenants needs. over their

supporting may Rexford's on uncertain while the leverage outlook, to investment Further company capitalize protect growth focused value, at as ending favorable net maintaining we to accretive year our the ability sheet, total to upon enterprise Rexford positioning also arise. balance the remain times opportunities low grade, they XX% provides debt during which

ago. to I'd team bringing years We that average our your once we are dividend acknowledge for to offering continue value for by with our about that drive annual our public our substantial shareholders. announce pleased to growth that, XX% again creation like market-leading increasing since are XX%, dividend Rexford And XX efforts also to our

And it's to my to hand now the call great over pleasure Howard.

irreplaceable and operating portfolio. year full everyone, and The quarter Rexford's and year activity, fourth highlighting Infill team Michael, quarter position you, thank advantageous the for Thank joining our highly functional full and our feet us fourth our performance you, performance square fourth driven today. strong demand million for delivered by our team's the our team Southern sustained of market. Rexford demonstrates dynamic In XXX,XXX square feet California driving lease X.X positive of the executed quarter, within portfolio. net absorption, results,

steps XX% respectively, effective and were were XX% both rent basis, net and year quarter cash average full embedded and spreads and X.X%. Leasing fourth a on

have activity increase of first incremental XX% an vacant our over we tenant the as into ended the year activity with space. in We on observed quarter, and

market. supply health strong also the pay in lack seen ability of their have of to We increased our available the indicative tenants, rent and the activity renewal of functional

flat vacancy the nominal CBRE. market the at quarter fourth to overall market The Rexford exceptionally remains comparable portfolio. quality positive X.XX% In product were Infill rents according absorption with the sequentially and to low, ending net quarter, for

Long are decrease increase Additionally, Gulf in ports prior port Coast while a quarter volumes year East over at XX% period. over saw L.A. and rebounding activity Beach same the with and the a

yield to closed which quarter, of of of projected million $XXX X.X% the Turning total fourth cost. stabilized to we our are investment activity unlevered an in investments, generate

the projected X.X% a $X.X completed XX% year, were marketed of unlevered in X.X% on these initial aggregate, or stabilized billion through yield are we Over generate an investments, which lately to transactions. of generating For total and sourced investments cost. yield of full off-market are

Additionally, which X a weighted initial is distribution state-of-the-art $XX in that San generated a for price an X.X% submarket the Subsequent we a Valley sold two-building acquired aggregate unlevered million, unlevered quarter yield. XX% sales we of $XX IRR. average for generating properties million to end, facility Gabriel

currently $XXX we of forward, of customary closing pipeline have or are to under subject contract acquisition million Looking which investments accepted conditions. offer, an approximately

X fourth the order, and in to also was yield our stabilized quarter, repositioning achieving With pre-leased the redevelopment pre-leased quarter projects in and our which X.X% in regard activity activity Quay the most X aggregate project Notably, rate pre-leased we exceeded stabilized our recent projections. on projects. unlevered the we an

and unlevered million For comprising total aggregate the full investment yield. X achieved year, an X.X% $XXX in projects stabilized we stabilized

feet on start a In redevelopment within have next X.X% have million incremental X.X projects the of an and addition, projected These we investment. aggregate or $XXX XX of remaining investments expected stabilized square repositioning months. spend total to million with yield approximately in process of

effort I'm Laura our entrepreneurial Finally, financial I'd on acknowledge to our with results. over discuss the pleased Rexford turn like that, in for achievements And tremendous to their team XXXX. call to to

effective basis on growth effective over of Howard. respectively. our prior the net was basis, high grew spreads XX%. X.X% end growth. of spreads by year XX% you, net NOI also quarter, core our came of in growth of full Full a Full of NOI guidance cash a effective year same-property cash XX% projections, on the at at share the earnings year guidance Thank topped $X.XX FFO XX% and and on With same-property and quarter, year X.X% and net basis. expectations. X.X% fourth core spreads In per per cash XX% FFO range a driven representing share leasing ahead Leasing

to full year shareholder result superior over year. annualized prior quarter and total As declared performance share Board delivering per commitment a increase $X.XXXX strong the XX% of dividend first Rexford's our a of return, representing continued our

to the Turning allocation sheet. and capital balance

demonstrated strategy share committed are disciplined the annually XX%. the by outperforming allocation growth, years, We nearly shareholder X XX% past has per by a earnings which our over value, peer capital focused averaged driving as on to group

revolver. sheet quarter of $XXX million of and net end, maintained to on was X.Xx debt-to-EBITDA forward enterprise XX%. $XX balance billion, our value execute hand net availability Fortress Our was to million $X debt We and remaining strategy. currently comprised net us $X.X settlement, At of creation our billion value substantial of equity full on cash positions liquidity for on

of material no XXXX, maturities debt have inclusive options. extension until We

the expected to next NOI As $XX we from over portfolio look years, NOI million $XX This from of and million Rexford's of quarter total next steps Over significant. market $XXX NOI from rent cash flow in in-place in assuming cash just no average project acquisitions. embedded million to opportunity in-place fourth over internal and includes the the NOI growth today's related stabilizing acquisitions year-to-date. our is the and conversion XX% $XXX rents growth redevelopment $XX the to annual X incremental total internal NOI is of to X million X This cash within portfolio. million next rents, million equal future the we years, incremental completed X.X% years, over to embedded earnings the grow repositioning and incremental of forward, and rent $XX

next annual existing to per our core within XX% average growth projected share the the growth NOI X years internal in significant This portfolio to XX% is range. over FFO generate

Infill substantial to as market core of square the $X.XX. addition, foot our guidance, In to range to capitalize we market. the upon XXXX With share $X.XX Southern X.X we current in growth regard to we opportunity share are per external California projecting within expand expect FFO continue X.X% billion our

As activities to projected and or guidance range balance X%, of and not to be our to is average effective is XXXX year cash be does respectively, same-property net in and related NOI to sheet include not the a same-property X% have acquisitions, growth XXXX dispositions range full that projected XX%. XX.X% occupancy yet closed. X% to X% reminder,

and spreads, of be respectively. in-place Cash a leasing net estimated renewal of around XX%. leasing growth, the basis contributes the net spread rate leasing the property that effective guidance XX% at and spreads Inland Cash our same-property is provide tenant Empire West. approximately growth. XX% approximately property non-same effective excluding approximately in same an to points Note net on from XX% further effective the and pool assumed of fixed XXX the of spreads are XX%, early To approximately components leases within impact mark-to-market detail the

XXX revenue to rates. basis increase growth allowing This year, rents amount of a burn and Last rents. the renewals, off us early outsized we straight-line from below-market offset an lower market noncash benefited higher by from point is impact to to of related

guidance practice, not our renewals in assume same early the our of is pace As does elevated XXXX.

points basis to and occupancy, bad of XXX net effective is that revenue basis lower XX of net by related same-property is to Our a guidance of range expenses percentage recoveries. be also impacted expected to debt points as average the in higher XX

impact same $XX incremental would In stabilizations and Other NOI XXXX offline X.X%. aggregate, in being net equal XXX property share of rebooking net NOI repositioning year-to-date a contribute to XXXX coming components into effective these placed have to NOI expected guided and guidance. XXXX a and million, approximately our of projects per growth share effective which to to per to components redevelopment contribute our related otherwise guidance redevelopment, brought of are points, neutral per FFO approximately approximately million include $XX share, are by FFO $X.XX NOI of offset growth same-property to and basis incremental contribution by repositioning investments approximately core million net and $XX projected decline from

and welcome team and for want for questions, of Before over you I to for incredible your Operator? direct result work. questions. turning Thank commitment great an success all now year excellence. us your your joining today, Rexford thank Rexford's to outstanding a call the your continued our is we

Our Instructions] line of first comes [Operator Wells the Heck question from with Fargo. Blaine

be of are seeing a in more long some you where think And choppiness you Michael, on you you the talk bit your how strength that conditions about demand mentioned in or headwind? little segment flip side, that market? And tenant sizes demand the Can then certain do market? in a improving could and submarkets.

a where saw little it's and markets Blaine, so as No, I mentioned, of And generally question. above for our much us it. Empire sizes of pandemic, well. the larger would bit And excess be a development XXX,XXX thanks for where feet. Inland starts, joining we a Appreciate little West, the impacting saw supply square during we today. are performing the bit in great really instance, exuberant that's space

bit IE space downtown see housing the fairly in frankly, in softness Central the and medium bigger for The of We a where see IE West next see much is that Los of term, in just X to to West adjusting over spaces office to the impacted we the little in the absorption multifamily out market, And or is near begin utilization larger even driver isolated news by of so period. and the the That the space we XX we it's the months shift occurring so. Rexford, size Angeles and And also is that very larger normalizing. have range. for Los Angeles demand in post-pandemic that even entire the really in over submarket. compete only good probably really

square Our average feet. is closer XX,XXX size space to

own for of space, Greater frankly, there X% really by threat impacting those markets saw San terms throughout the and grew So County IE fact growth Orange And but and during We XX% Diego, where Ventura of that's pretty rent L.A. of a quite the strength, over that And out where last favorable that's market Infill dynamics rate, particularly we markets, product. excluding rest pandemic. the pockets West. is the material growth Rexford, considering to year, particular. in meaning we and in not see a it actually about larger the market

rent signs West the I'll great holding IE levels. the over interesting pandemic, market IE rents the is we're increased these in market back seeing a West by during The by we very IE XXX%. we're way, in the So because just saw West. that also the touch on And

the the why different So the bit through explain in mean, was markets. Infill which with rent an in also in seeing positive help IE the than normalization and growth And of I West regard we that we're stabilization strength it's pandemic, XXXX again, IE see guidance, the to seeing as true rest markets. outlier may the a in But the well. accelerated we're West little near-term West IE

near-term in conservative mentioned feel issues with a there and geopolitical environment, my and But at timing that And been about point As this continued having the huge there stability, encouraged impact time out are be in expectations. we're positioned. I remarks, interest stable we're and this it's to that prudent the thoughtful just but by more are how to rate favorably we a extend has a I'll near-term case, believe storm clouds markets bit, setting on therefore, we performance. regard little economic

in don't about next each growth for So year we mentioned great that example. up substantial, per mean get a it that's actually, annualized benefit and FFO leased the but represents that, And those value-add what years. XX% share of of per on I'll each I projects. FFO following sets while up we $X.XX of just FFO be you our share give share lease by about of fully for to XX% And X significant contribution. Laura range growth we XXXX as that basis, estimate to to the coming XXXX $X.XX an us that on up although we and per basis, during reposition this the and in full 'XX year, year have

but year be about interesting for we're So more positioned. how Rexford, couldn't excited

seems be for That helpful real for is cash for NOI more free the that, that happening like you you just gives that switching maybe Thanks just the what did differences. going of that how burning is in biggest there, this year? you this year? type very And is It do this kind XXXX renewals of I GAAP of feel about color Michael. off that will question on quick commentary subdued activity there to hesitation same and my guys that had rent then thing drivers second the year. be Laura. early gears guess, one Or

great Blaine, Yes, question.

mean, I conservative In of terms of renewals. approach to take how the forecast, a certainly timing we we

rent year. the throughout revenue. has we like [indiscernible] outsized look and year, portfolio last his higher mentioned been activity that So we that renewals, renewal this the straight-line in and mentioned, have to I was as within strong did our very contributed, And forward, remarks, as early

look we'll guidance timing in with updating So we into certainly be accordingly. more we're as our tenants visibility the renewals, of and forward, discussions

the with Our of Bonnel line next Bank question comes of Camille from America.

a through hear coming I of I'm I hope clearly. so static, bit

a record activity like looks a leasing of up it feet the square So slightly last million you And new with 'XX. hit from even on level, you're X year. deal

the months expect do continue few can So year? the And you talk you similar how pipeline first for looking the is to leases signing pace? at a about leasing of

building. the We're Howard. activity It's pleased we've seen with really

end And in we October, continued saw bit. Looking that's then a pickup, through had the down slowed and significant the towards November, quite of year, a [indiscernible]. back things

So lot activity. of we a have

Of course, into activity that right leases. now, we have signed to turn

some mentioned concerns Michael the So and so forth. over economy

we've And to of respect. So ahead and a are we real, do while got real that work us sort see. wait some excited, of in

any concerns signed? around you or being been more economy those deals Are less Or into it the activity? changes 'XX consistent translating has the the are pace that of in seeing with

I'll even use a more were lengthening that We to out, back levels. in lease think is talking just in just a month, and now And of normalization, X I the example that Typically, XXXX seeing little space thinking looking longer. X the space. pre-COVID we're our seeing about months. X-month repositioned good redevelopment range, up maybe some word

than sooner. the really expirations in we of terms a seeing when compared market. expiring So our more really a going later yes, functioning think but definitely And we're I about half you'd think up, the first the normalized you the picked forward, see of year to I out, also in have pushing think, then stretching what nothing also second even and space typically into activity unusual lot

Right.

program around and to actually last you repositioning So follow-up on contribution. $X.XX guidance me the just provided leads the my that

many of leased, Just to target? to confident are that these this? you to tracking further in be happen to are reaching are what this given you upside be how And yet needs

Michael. form our work Yes. of is surprises. those. reduced also some we're like that No, respect setting actually -- opportunity upside I to the both with pleasant we time it's set in to But would and Camille, beat the environment And feel in lease-up repositionings. way the think very do leave a target we're we in frame the we'd And maybe our does expectations of expectations the going rents. appropriate confident maybe we're given to to for for and be hard

I'll Camille, these repositionings, redevelopments, comes in And and you looking at much especially as very close add competing there's that really not all when with the just the redevelopments, markets as space, size the even product ranges. tight even they're start to competing quality Infill that the well

So really that in the space part on terms lease our lends of ability to our up. optimism

next comes Markets. Our John from BMO question the of Capital with line Kim

we presentation wanted million with growth and anticipated. on seemed The I certainly, But Page than were thought at bridge than arguably, been $XX so that that lighter growth next The NOI past given portfolio, X a XX% that's if would years. of the the have lot the bit Because extending million. to NOI, look that the your million, amount we -- over modeling is just but of little mark-to-market $XX growth focus organic you the which X forecasted. or you're over Overall, potential. years, a of that's $XXX number I expecting XX% mark-to-market from revenue, you're expiring X over mark-to-market. be leases the using of higher should expecting entire

to that wanted just about I figure. So ask

John. Yes,

a X-year I of would is this I only period. couple Remember, things think a note. that

entire market. So it to marking the doesn't portfolio us capture

portfolio that's day, then we significant So And is, the of it. continue every market. side most of the to probably other mark to, I think the piece it

growth baseline the impacts fourth mark-to-market. includes the see the that quarter you leases and fourth quarter that annualized there in So NOI we mark-to-market from obviously future

realize. that, obviously, continues -- roll, X-year to I the mark-to-market. as that's So think portfolio we'll component is growth look to the a And the but most here additional important at from have mark-to-market only

growth. thing I you no includes to mentioned bridge note this that The other future the rent about that want is

are that So next today. the this where years, assumes rents X they over are

That presentation out, I had but where sit the you mark-to-market on quarter ballpark portfolio, it the of over And the you last right $XXX entire million. today? took it know is at that

components to to we that mark-to-market number. yes, portfolio. within you haven't see -- essential and We're calculate incorporate, allow you provided the We're provide to that to full that able continue that going to allow the be

last My midpoint, guidance. FFO question At is growth Okay. on it's your X.X%.

was at Your guidance dividend is GAAP growth XX%. announced at midpoint. X.X% The NOI that you

So with came you thought wondering XX% I stronger. bit a that correlated FFO the how little guidance. would versus have your I'm just up

Yes.

and growth terms dividend what we're dividend we've communicated pretty growth. In in to going terms our the is in this earnings seeing of to growth, of be past, similar

past Our year earnings XX%. this was growth in XXXX

growth dividend dividend growth, Our we announced XX%. of

in we're line as the those can. So we are much retaining capital pretty that

rates So you mirror continue as growth track those to forward. we other should each see

question next with the comes Our Crossett Paribas. BNP line from Nate of

I then wondering second what kind be I range of you How Tireco that levels about if is, like? the this and next below think renewal year. was think well your you're of we in year? X.X%. for could be should of could X% about balance how terms And should question my and guided of leverage January just of of lease probability the in spreads thinking talk expiration about we

now? is your right leverage for what tolerance more kind So of

provide vacating very are Thanks lease, on Tireco, that background so Tireco discussions, the everybody XXXX. they to no Tireco lease in can is the for rate a our the discussions that's just to renewal recent much option And on you In January joining based get intentions we the us space. expires on X%. have They today. of update constant with The that -- in Tireco. we have most fixed of regards

you the our lease practice, execution update an upon Tireco we'll around lease. So as with is provide

a at focused low there have perspective, those really where it opportunistic, a the leverage out very levels may allows In we from be them capital leverage, a leverage not sheet matter periods And below maintaining balance doesn't no times on in be of us we're that leverage when sheet. because leverage of balance X.Xx, X terms target we low at we cycle. for are to to maintaining mean

look opportunistic a the leverage really we're to us in drive about really take of position comfortable for we and shareholder and we think today sit forward. and value. to great leverage, that puts the we so us to accretion and allows where And When be year balance opportunities about moving really advantage sheet

Our question Citi. the Mailman from next comes Craig line of with

want had as -- Just come know quarterly, last guys disclosure mark-to-market that out in the in a guys go through just around effective as it but had presentation. back you mark-to-market took question I to you to I the the the net pertained of to the $X.XX the expected

I think $X.XX expected come 'XX. of had to that in

incremental you And same-store, are $X.XX in in basically $X.XX from an I saw expected to that. come getting the So 'XX. guys was

kind to that from what the would that could have the presentation? give was would $X.XX us been upside be incremental embedded And bridge in Just in you guidance to a that $X.XX? last that else of incremental comparable

a forward same provided I've our components guidance And those property then components. roll also think I provide of guidance. Craig, of Yes, we of the

X.X%. And kind that generate components I that of on NOI basis a you that out how a so cash gave through I that's a can think helpful the on walk you guidance basis basis. GAAP components on we same of property but I we know what the put and is cash I

average that's growth an within property with of same cash terms X.X% that associated of expiring pool basis with guidance, of our leases midpoint same the property XX% the mark-to-market leasing is XXX base in our NOI rent points So spread. the from of

X.X points line with Included this basis in steps, embedded on total about of projecting in XXX in averages. of another We're that about That's portfolio by our that year rent basis the concessions is pre-COVID the X.X% steps points. That's portfolio. averaged concessions XXX rent of months. offset

impact. In that terms in XX where point impact net and points, at a we're point basis a year, XX has of bad debt point given of about basis the basis bit assumptions higher XX basis higher occupancy of decline XX have expenses impact, recoveries another average then has another

X.X% to same you So cash these components our guidance. together property bring

to about you I million No, that -- if $XX there the the goes looked million the had at FFO that you maybe the quarter. at kind and no. impacts guys was question had But old back this versus more getting this $XXX in of conversion guys John's of was in disclosure just no the that end of 'XX $X.XX was 'XX, lease $X.XX assuming $X.XX 'XX. cumulative from you XQ incremental And that FFO, the would rent to called 'XX. in of hit near-term right? mark-to-market so $X.XX growth, implicitly It to in embedded

you And just in see I'm that know from out come any of $X.XX it, into still in that for guidance, should I'm bridge mark-to-market? don't for was bridge more. effective if if changed Or from of Is in I in there related number. a I FFO presentation. maybe you number $X.XX just provide come not 'XX? that a kind trying what seeing the $X.XX last I'm don't where pull to same-store but forward that the is net figuring what in previous incremental coming that FFO the there just or would $X.XX GAAP of that's retention year-end change if kind guys into where and through about, is to talked to your I play timing know

that. of components, lot different a to right, There's are that No. going impact

Some QX is XXXX. of of in some that that we've QX that already and converted of mark-to-market

repositioning of into we in impact that how pulled we and $X.XX from we XXXX. that the pulled that's about additional offline redevelopment coming that NOI the Some and be properties could talked

-- share share and issuance impacts additional as of from higher with share that some so count additional is well count. And share associated

So the our in of roll-forward get to they They our very into reconciliation thorough current there's go different number FFO a same of -- then walk bridge. provided that you that. and a guidance components through property And I FFO. we've think the prior

Okay.

So it equity share part dilution from count the into is $X.XX. just the of from

for 'XX and number should it. out -- to in So for bridge I to I same? just roughly the trying be you're adjusting coming want in of your the redevelopment year-end nominal want saying cumulative words kind mouth, don't put

Yes.

transparent really are look of what we're was I I components as terms today. it the really think in the about seeing of that a provided guidance components clear we've

just the a one then XX%, what's net the mark-to-market? And You one. guys on cash quick What's basis? of cash updated gave Okay. effect

basis provide cash the effective from Yes. and That's mark-to-market. we points -- XXX XXX the prior embedded signed, our from of that But much about leases leases. the we're those certainly that the similar On We in steps mark-to-market points said, moving mark-to-market rent from significant that It effect being quarter change captures of basis It conversion steps saw quarter mark-to-market. our the is net XX% to from rent under is feel about was helpful. in we cash like we're XX% repositioning. of achieving that fourth basis the more today. happy about basis points in a from down cash the the do a and by XXX mark-to-market as impacted properties net

Our McGinniss next Greg of line with question comes from Scotiabank. the

I or on rate tired expected $X.XX you originally to the by was expand know Craig's run may contribution point, the that question, expected year-end? that XXXX So to of but disclosed, just the contribution be answering that was

that every I point I leasing was not to it's the And one our take that of -- and out doing. a [indiscernible] back Mark-to-market because let's rate. we're that we and It of But changes quick. think to go one based day. that that on time, a the think reasons mark-to-market run mark-to-market is the reasons is in decided single really

XXXX on market expiring this marked some the in even some portfolio those fourth were to releases and were a in those of releases some year, daily we in expiring that basis, XXXX. of that So the quarter,

as to portfolio into really mark-to-market marking the So leases transparency I think expect role. market to achieve we portfolio important for really work what the to it's holistically provide and

Could levels guidance the this to future guidance, Okay. just walk through overall continue that not through and this year expected cadence downward we're to in us us get of the XXXX. expected you occupancy looking range is while whether trend for

not are XXXX providing We occupancy guidance.

average provide and guidance, occupancy which number, cadence occupancy impacts quarterly cadence allow the of you provide the terms occupancy We basis. the you guidance through to In a the on of those model year. appropriately we can of don't with

Okay. Maybe one just follow-up here.

of in that's in from currently offered ever And levels. are that concessions with the that concessions leases, of what Have line level? pre-COVID understand risk is months here? concessions X.X the gone seeing being increase above I Regarding

during I moments see which obviously but the rise And that above for time, financial don't that. on the are basis instance, consistent levels that a levels anything reasonable assumption. submarket those generally have we would a beat product on nature horizon type, on oftentimes, of are and we exceptional great very very There years seen it's average, really in certain size probably say crisis, not many today. or we during many, the a that probably pre-COVID,

example be we mentioned if market about different perhaps, and submarkets lot Inland see probably there, little think bit and the the on I you'll product earlier would on an in case-by-case larger what happening of majority some a competition those and you the what's more wouldn't. Michael buildings, out a concession variability about of on But Empire Infill could of basis, see whereas markets, those, -- think a

right. All

then, average an as months X.X take right? we So

indicator. a That's good

with Thillman Nick of line the from comes Baird. question next Our

in some transaction wanted Can we see maybe the competition noncore? a larger you more and what an Howard update seeing as market, to assets ability like do as more little institutions start Michael, you to on the view you seeing? maybe recycle you're of looking kind with buy? Are like And that market or that

much so joining Thanks today. for us

more generally seen hasn't months really probably and briefly, add speaking, But market if or Howard X the Just I'd color. say, much last the transaction could over change so. he has

out news the to is somewhat contributor buyer. we speaking, is I frankly. rate higher It uncertainty moderated, for continue competition buyer environment think quite that and or opportunities as there, generally means a is general good -- and maybe find great a some interest which just Rexford,

buyer our regard can big With we buyers because an marketing means sale we program impact the dispositions, market will that for have is market assets just might the speaking, environment. no change take to say it would disposition do to activity, also and recycling we transaction in if place, the this intend for year. little fewer have I a competition generally So be, on longer a there and sale in have although in that low,

goes. on see to of to going that judgment those. So we our we'll when in how where and we're best But terms continue use transact

represented mark-to-market, being that of ones maybe still And Of XX% in a only this helpful. Laura. couple footage statistic? quick square for just That's of is the then that

right. Yes, that's about

Okay. what the presentation like the you And then you're I presentation the on in around just bridge XX%, prior quoted XXXX, effective the other quoting prior one now the is based happened to for from net just think that past? spreads on Is said XX%. activity on that's

market We that's flat in rent saw Yes, quarter. growth the correct.

assumption. So that's good a

of with from Malhotra Mizuho. question next the comes Our Vikram line

do broad multiyear to usually you annually. Michael, give for Just of thinking a FFO same-store the few in you outlook X-year mind us you FFO, sort growth a think or just a growth? you've guess X of Since or on wondering where like will things you giving presentations, Laura, sort I a you've XX% given said kind you XX% out? growth. broader I'm are same-store given multiyear us X-year last I shake of years, next --

Yes.

a We which embedded providing XX% XXXX. beyond are basis haven't you look obviously, outlook on $XXX cash same-property NOI X-year internal with of our represents that growth. NOI million provided a But growth, is cash a we at

clarify, to to like no that just steady XX% assume properties And XX% state are repositioned? does more

already assumes it not current have pipeline the that and in what what disclosed does of -- anything we repositioning we've pipeline process outside redevelopments, of have we've disclosed. current That and

Got it.

Okay.

could -- in We're shake about? talk is broader trying the sort from second, kind market, you to I Just the in just perspective, where a year. of can what's like dollar you broader of near-term acquisition XXXX? number a just think volumes the Like sense are stress a out for the what under you contract get volumes a pipeline or close. of pursuing of But sort mentioned there better given

out, it's on But really pointed can offer the don't acquisition There's that in volume variable placed really We of can't we we around lot as be Michael market. the one guidance floating a capital know. because have not capital.

opportunities, idea too to opportunity an give in of So about. -- an really capture be difficult it's position what great we're but could just a know it's you to like that don't we

just more to And sort competitive of I a go Okay. wanted lastly, back question.

vacancy, SoCal incentives, markets, rent higher of cited a your yet just You you're extremely reconciling like growth. vacancy, low seeing X.X% having arguably little growth, a haven't a the given know data and rent growth point, market forecast, but by you then bit no you last debt. I'm just talked have you I time bad about no sequential hard sort Infill rent going

like between say, is I'm gap see to we're SoCal your product still in product, you of in trying what to competitive watching a just So the market? broader wonder the sort versus how going general? And our fundamentals "Hey, things market are to

us Vikram, thanks so joining much again for today.

First have of markets performed all, the well.

Let's be the our the clear. of bit of in X% rest which West, cover of markets we in we're a in, Infill that saw L.A., a Diego, with growth about I little little Orange County, IE the bit the portfolio exception mean, for the Ventura instance, Greater of markets. of XX% San

is backdrop given growth strong, the the saw those we rest. all prior rates, the particularly actually, are So weak. actually And the and interest great with that rates uncertainty not over year

to levels. period, try those no The spoiled very think we're not fact for sustainable. it's a we and rent the so market matter pandemic during Again, And prepare were too unsustainable much fundamentals I we strong. and how where change. And very not saw the were occupancy And fundamentals. the that perhaps growth about remain fundamentals worried we

XXXX again was think strong is a very to fundamentals important although I that are strong, also which the And remember thing levels, reflecting more market.

sort as of basis, broader market. will a thing, think important But talks on less compared also terms an lease months the functionality about indicators to that some is very it's And is average of to space market. much superior a time in less X.X remember strong our and downtime. I yes, is And up strong Laura that -- when a in those product that So vastly very and location that market. of concessions are and

because may And I to positioned, within seeing functional, market, in and expect our that spaces. market in value because so outperform it broader great deck to outperforming, and has we will our they irrespective data been some be be our portfolio continue there's effect, we of properties the what our tenants more think investor can are our general actually properties more of more productive to in are the better

So quite it's I is the positive to your in outlook, not think, question, underlying of the Actually, fundamentals. terms negative.

trying Okay. was enough. the No, rent fair growth is. just to with where that square market I

Our with next Vince line Green of Street. comes question Tibone the from

going of what SoCal. and into Seaport? now Cape the the instead of SoCal most the I've much around through issues seems How Suez read, like Pacific the at Canal From it are the Suez going ships impact avoiding

tenants routes the love hearing shipping topic are just on have to I'd color how any So your situation as you've or maybe from and hear evolving this you been unfolds?

going increases Ports coming down time And the Well, Suez we Cape time Beach. even without the go of had diverting through and Suez cost. to Canal, compared L.A. with cost the Long around that, the advantage a substantial and even direct originally to to associated and

becomes is cost greater advantage. so benefit terms a and And obviously, of timing that accelerated here in and

Long away it that I the to some also most about about Beach really and and concern reflects turns United more think Actually, from some the volumes was we there And entry we're have I that seeing reliable think case. I think out So impact. Long and be in just L.A. the point recently. which does that's diversification positive into think it Los Beach, -- the Angeles not and safest States,

think I'd had with for port that just pretty to after was this to And ports activity, a do like wrapped done. increased quickly associated really solidifying XX% I the to contract information lot add recently and labor I some finally that the the completion a JLL also, had that with contract saw and increase

driver. the Michael's lead Again, et incremental to to activity. comment But not timing. Panama, So it's that's cetera, really cost and Suez, the could

the by note. final way, to Vince, add And one just

it's to by our driven predominantly regional recall portfolio, is think important and goods demand to services that their our respect for I with base consumption. tenant

are the the largest day, much by end the distribution stable, of consumption is of the cetera, serving very So Southern ports most operating, this country benefit we're great we're far. driven. California labor et But diverse the at that here And in is a the economy in et zone regional consumption, cetera. and

fundamentals. what's superior really driving that these So was

per one their any give people comments guys just wanted new quick is I Or keep of year expecting in concessions. I on that. helpful months have confirm No, color. you I just of free to on all just that leases? clarification around of have form concessions spaces? X.X are to appreciate regard that's in to the to rent renewals to kind

Vince, that includes an Yes, aggregate that's number, new and renewal. so

just helpful so is And I color significantly? is doing just on it. expectations the well. is mean new to new terms is your like any market same increasing keep don't marketplace, asking in be versus question, the would pretty like as but of broader -- Got concessions like what the lease -- just maybe overall

again, we're seeing higher new a renewals. And space-driven location-driven. leasing are be concessions going bit to and it's the really than Vince,

an particular in of got abundance we've see little concession probably offered. a heavier So a being certain a you're size product going market, to

or additional to the over normalized so. of over periods, where And to also one near do bit instance, but by little more see see we that we supply/demand heavier a the have concessions, and Vince, way, predict, absorption next the we XX historical that do to ranges arguably I'll add for hard that compared maybe We size thing term see here, a scenario, see for IE more in just reverting the supply the months West, stabilizing.

Our next from comes Bely JPMorgan. with Nikita of the line question

talk do is you guys you're promise to and investment about how site all can to it, plan by just support land, about ownership -- can loan the I And like what what if to what a I going earnings know that came it, color how little you converting million something they want time? build on I it's much -- securitized into do loan with one. you over Can to that ask bit $XXX extended? a A the bridge more more Easy about, little anymore. when?

that. there surrounding Howard. But X%. was surface, that what It's transaction. you're of is the an On an interest effective Rexford That has amazing seeing not was rate opportunity

offer site. a purchase to We right first of have a

that's to XX not is JV right the a ] equity going sale. if have [ of else, top first And to have ticker We offer either we choose of years. if X% that we interest we're actually do achieve on sold a property fee site for be to net somebody going and rates on a to those, these to of place the in

on in we value to structuring now that being So ownership great work just value today by the on the And to low around puts the loan in were is transaction create that us XX to the successful on years the this very some and the position is on XXs loan that loan-to-value the about a that's on and areas in excavated other right value the low of done next really our completion a mining XX%, site. down site to XX% top the fill acres would a there use strip former buildable drop that of the first X over a is there land. time, within at

million the I on X.X available So built. for would the not a only feet be to of secure the land of And is site upwards square entirety of is it site. has development lot safe it and in accommodate but the a upside once us transaction, very believe

How guys off-market Was this on years working something transaction? did you've deal? it you been do for

transaction of on of It due repayment was a was borrower loan an a a relationships so and on. -- forth. based circling had dire off-market complete was to need that was the lot And another There deal.

goodies So one guess, other I that's, why in of the the this driver's some in we tossed here. seat are to get on

overall for properties for Got about XXXX talk you. Interesting, expectation the interesting. for comparable -- rents My the last year? question is, full did you your market

on rent last market a market that. expectations transparent be discussed as very We're growth the update Nikita, to be on to around basis. be providing going We'll an forward. going Yes, quarterly providing not going year, we're we

provided communicate perspective. market market continue growth the we we'll by you see demand As seeing activity it see, what as to in and and from can rent submarket we we're a

next line Anthony Securities. Truist with question the from of Our Hau comes

year? you. redevelopment for What Laura, is the $X.XX of I have a the quick and drag one repositioning cadence throughout the

construction XQ in stabilization. And NOI are around start year. we provide color completion the that from provide XQ our and It's and our well realized and redevelopments actually repositionings disclosure as pretty each within the we even around on then dates repositionings was that provide of and in XXXX throughout of the redevelopments, we And the pipeline. as

the allow should in terms -- and cadence. So you be timing of to that the appropriately should model

basis? what's also from Is that like on contribution And to annualized an it similar $X.XX redevelopment? the

$X.XX correct. basis. leased annualized about up That's It's fully

Vikram Our next the question Malhotra from line with Mizuho. of comes

quick my Just clarifications. X

Just that some one redevelopment. a the think, line on there's guidance, has line for, the it you have additional equity says equity in I which and there,

the equity assuming are guide? I any want to clear, So in you just incremental be more

a marginal It's amount.

we've free of equity to debt. we for remaining We have could XXXX that $XXX the remaining about and dispositions. million $XXX redevelopment could flow, with we have net options. cash for that number We a through repositioning fund and first We then fund spend And that through related have then fund projects funding, disclosed. remaining the forward could of in that settlement. We We fund equity. -- of of that terms remaining with million

that terms So goes equity, attributed year we've fund may for got we purposes as the to of the how roll forward, we've on. optionalities but of a that lot in of

that mark-to-market the because done that marked has The then And if up. you that say, the include are year big you've of And call it, those, it. those percent. I GAAP asked all X years was over acquire you XX-plus just gave acquisitions volume clarification. been or for arguably, reported last, volume? a already Got the you just Does the portfolio of impact last a

reflective that of acquisitions so well? And if want is those understand to I just as

Yes, it's included.

closing over the Michael of end I'll now remarks. session. call the reached the Frankel have to question-and-answer We turn for back

for day. great forward to quarter. Have much like everybody we'd we everybody. and us a connecting thank very Thanks, look next to joining Well, today,

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