Rexford Industrial Realty (REXR) 18 Apr 242024 Q1 Earnings call transcript

Thank you for standing by. My name is [Indiscernible], and I will be your conference operator today. At this time, I would like to welcome everyone to the Rexford Industrial Realty, Inc First Quarter 2024 Earnings Call. [Operator Instructions] I would now like to turn the conference over to David Lanzer, General Counsel.

You may begin.

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

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

management's answers today's statements questions forward-looking to may call, On defined by your contain as federal remarks and securities laws.

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

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

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

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

I over to will Michael. call turn Now the

will and and with welcome, begin first our earnings operational Industrial's quarter everyone, market Howard, then Rexford results will to I'll and detail, Laura David, followed financial provide few call. who outlook. remarks, a you, by provide Thank

our I'd substantial another quarter your platform. value Rexford Rexford like marked creation by to strong begin thanking by for team results and across the

detail monetize we our to million which notably, X.X within will shortly. leasing On And extended continue very substantial lease completed spreads front, square largest feet we of the as team tenant, portfolio. the leasing activity at mark-to-market Howard in-place favorable our rates the or

longer-term delivering completed over substantial our front, initial billion $X investment team of the acquisitions, accretion. and On

an entities focused sizes feet. combination $X portfolio of levels XX share, from to premier of basis assets for a XXXX tenant point FFO for is XX and in margin. portfolio comprising products portfolio. Los quality In The X the warehouse high cash $X.XX and feet of estimated significant alone, funding with averaging our large contribute purchase a contributed over submarkets, per flow the within operating XX,XXX off-market County an with transaction to of of included incremental to square of accretion notable activity million approximately along Angeles expected Orange Our cost, increase highest-quality net billion, acquired Blackstone-affiliated square is

be the Additional annual X.X% as time rent growth improvements within portfolio. over well will the some by embedded driven average as increases value-add

investment to portfolio was return portfolios work the Blackstone of testament The Rexford to is our both optimize principal unique for collaboration potential may we of The track assets and transaction associated and indicative an We benefits circumstances. also between accretion which to a by of The blend also result teams. that working a outcome drive selecting the of seller range the business. the to is curate to time a or to transaction it continue catalyzed be parties. the as investment by from quality, was principal off-market time to with together superior to on market

choppiness, particularly current certain ranges. With some within are regard and we conditions, market submarkets to seeing size

markets by exacerbated relative rate interest unrest. the expect current our in geopolitical uncertainty volatility ongoing some through heightened the term, We by near driven environment, within global principally the

strongest we time. prove itself uncertainty, some despite industrial over demonstrating fundamentals and to However, tenant by California market infill tenant base continue relative nation's will believe our supply-demand Southern the

performance primarily Inland larger over as of non-infill absorption, of XXX,XXX the relative we portfolio, perform we distinct may a how our the whether can't to measured net or seeing our accelerating Empire. as metrics feet, differentiation size change square such big-box related compared in stronger far, periods, performance between market into by SoCal in infill predict relative located so rents markets Although and product future are the

by long Consequently, ongoing feet tenants the the square single and tenant also contrast, box over SoCal typically our part needs mile has infill first diverse are nation's In where is an through prime with through as in virtually largest performance increases are regional we've be supply XXX% consumption through driven economy, is global short-term demand supply and Empire relatively for is XX,XXX to focused a space box network, distribution locations subject base, reactive which on Big largest last market, the compared logistics and the markets drivers. incurable which Big new any as cycles nation's impacting high-barrier elastic cycles, Inland and observed barrier generally more be scarcity smaller our to in infill substantial where big regional regional of averages infill such Rexford markets of prior serving market within the and occupancy can is fungible within product term. imbalance demand to and tended subject outperforming located to or across box space type. to most a cycles are of size space as super where volatility highly larger durable. our high supply-demand and

NOI Looking within the million or our to Over growing to $XXX increase total NOI. opportunity portfolio substantial. existing embedded in growth continues just be next X the we expect XX%, by years, forward, to million cash $XXX

rent million our future embedded market NOI million below-market rents, acquisitions steps Importantly, no today's the and market today's $XX $XX $XX $XX portfolio. closed future and is to of to rent leases related growth, conversion acquisitions rents current X.X% the and years, over from within year-to-date of and assuming contractual no X incremental million million comprised this repositioning to related from stabilizing the and next rents assumes redevelopments

of X-year through execute no beginning the forecast on average year. positioned basis per that our the expected XX% note FFO FFO share continue annual assumes XX% Please to to to We upon our acquisitions. be future annual we long-term which to update share growth plan core per core an at XXXX, growth

tremendous thank the like that, once for turn With pleased and and results, the I'm your to Howard. over again to I'd to call team dedication Rexford

strong Thank across our thank execution you us value-creation and today. year Michael, the Rexford for initiatives. with you, joining all began

team our square absorption. million experienced executing quarter, million X.X feet leasing feet XXXX. completed positive we on extended we the XXX,XXX activity into largest net first the very the of strong by first a square X.X feet occupying during tenant quarter, increased of tenant Notably, During driving Tireco, our square

next includes During the concession. we and X-month in quarter, and extension derisked Tireco's With X% was growing near-term which our rent expiration, the bump years. favorable flow cash this X carried lease The in-place lease a largest rent by X%, securing increased forward. year a X execution, for

Tireco a were were and basis sequentially. XX% a in months on in average net to X.X quarter Concessions spreads our effective and Excluding the with XX% increased extension, cash X.X from weighted line leasing expectations. normally the respectively, and

rent Additionally, ability annual diverse higher rent to our pay demonstrate tenant steps future embedded X% continuing leases, for averaged base's to periods. first the quarter in executed

portfolio, and size rent highly negative Rexford Within product, quality an market flat approximately of our X% growth to we was year-over-year in base our with assets. feet, for sequentially average that XX,XXX square observed functional comparable

submarkets to continue in with rents. we As fluctuations we some expect seeing and have ridges, size market near-term particularly to select respect communicated,

our rent today, steps. are within However, portfolio levels as ground leasing their tenants activity evidencing with seeing on embedded by comfort the rent plus the we and annual demonstrated are today's what X%

to analyzing absorption. XX to contrast Rexford's the positive to rate exceptional with basis points basis the in net market, Rexford's superior of of not CBRE, basis infill market, absorption continues points our the dysfunctional portfolio the to X.X%. portfolio. example, market's strong negative the to to similar functionality. XX%. market In XX increased in sequentially to markets According of prior retention net in plus obsolete quality quality, and or net to and By Notably, contributed drove Rexford's absorption In were was stark of competitive quarter backfill first outperform Rexford's activity and new buildings XX quarter quarters, nearly way renewal of vacancy the XX% in due that absorption points generally negative overall an contrast lower

vacant to XX% our of our see on interest We healthy continue approximately with relatively product higher-quality for tenant spaces. activity

feet investment million unleveraged one stabilized a to at $X.X $XX end, deal. Turning we of quarter activity X.X quarter. to across Rexford's We off-market initial Subsequent million completed for transaction closed through during billion X.X% square the investments transactions.

contract pipeline a initial on investments, near-term $XXX have pipeline offer, accepted are of year-to-date an coupled customary cost. total X% The stabilized yield we Additionally, to yield under which unleveraged aggregate projected acquisitions or with activity X%, generate are million growing to X% conditions. our subject closing to to of

Moving to X IRR. of property quarter recycling acquisition unlevered $XX a our program. end, to generating we Subsequent XX% for disposed million, and capital

are closing approximately have or subject In contract conditions. customary of which to $XX addition, accepted dispositions million currently we under offer,

our and redevelopment activity. Regarding repositioning

unlevered an approximately leased XX,XXX San and the total stabilized yield repositioned we investment. on in achieving feet During XX.X% Central Diego, property stabilized quarter, square of aggregate

repositioning have of in unlevered aggregate redevelopments projected XX deliver the we we yield to approximately X.X an remaining feet forward, incremental million, expect Looking next X.X%. with million or of to total months, of and spend the start stabilized $XXX within value-add which square on investment process

Finally, team results. another strong of their Rexford I'd and quarter like for to thank our innovation driving collaboration,

to turn the pleased over to Laura. call Now I'm

and value our drive Howard, near- market-leading to strong the for thanks Thank long-term team that efforts Rexford you, and creation. your

a basis a net and our share quarter growth. strong expectations. the strong $X.XX line NOI prior in year effective per spreads of was effective cash net over rental XX% XX% and X.X% quarter on cash a and on basis, trailing over and Leasing period X.X% on the core per FFO share increased basis, respectively. with drove XX% income to growth Same-property First XX-month a was

the and activities. markets Turning balance to sheet capital

debt X.Xx we external million sheet the X.Xx an internal including will was term. range reduce quarter, funding and to approximately our to balance opportunities, within to in embedded of we end, spend X to internal growth the incremental repositioning opportunistically target to incremental pipeline XX%. of redevelopments leveraged return net well that EBITDA that as projected are $XXX growth leverage anticipate generate near alone quarter accretive as near-term fund related of the This At and

transactions. of on $X.XX markets During the issuance of an notes billion a quarter, coupon capital average X.XX% at and a conversion executed the X- we of XX% exchangeable completed premium. and We X-year of number

the Recent and mechanics notes, accounting to the C rules, under combined here these minutes par attractive is an also the have and the additional Rexford which few capital case, is source. take $X.XX aggregate, pay the instrument convert, net share with to settlement a value cash describe known method like at in whereby pause as me ability net converts the convert. created maturity. treated in opportunity of Let Under a known bond, method, value settlement par of share issue as changes will a in billion the unique this in exchangeable

XX% provides is two excess is maturity the Rexford Rexford's premium, at a combination Regarding conversion more over shares price value conversion if than future in date of cash, point us at the maturity option. the capital the This at of the maximum or issuance, cycle. at with flexibility any the market price share on or par in settled

been The simplified. also accounting substantially for convert has

statement, averages are income shares the is equivalent is and In if our as the share net regards the reflected share when trading the the conversion which value to the only above On price. to stock coupon, conversion expense. interest for added X.XX% to count, count, issuance the excess the

no dilution upon change, always cash. structure, mechanics accounting the par no Rexford to the future dilution as cash through has as or shares mitigated the the this settle value issuance. to Importantly, it future. impact is the there of in flexibility premium immediate Under count for rule XX% is share with convert And and the in settled value in settlement potential above excess net well share any any is conversion the as share

quarter harvest investor completed long-only the with an Coast, settled Continuing forward million shares billion currently We program offering with forward for we equity based the $X forward to settlement, through of of cash proceeds million. well hand, expected net $XXX we prior to first of offering, offering quarter, value our note remaining availability activities revolver sale under billion offerings related of common agreements during $X a $XXX full our the of on West as as on million recycling exchangeable dispositions. as the for capital million. of a public substantial And subject proceeds concurrent liquidity for agreements to million maintain of stock $XXX equity and XX.X from gross remaining we value sale equity our existing net $XXX of comprised

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

Moving full to guidance. year

acquisitions, of FFO increasing of XXXX core to $X.XX $X.XX share per note range the that when not our does activity, a to activities result quarter include prior a the guidance from not As guidance our to positive have contribution balance Please $X.XX, XXXX closed. at sheet first or range our yet related we investment full midpoint year are compared up dispositions guidance. that

regard today, extent including guidance, the current tenant a assumes the circumstances of In deteriorate current property same observing we beyond is of we to and To experiencing today, and forecast based are range are the overall demand, markets health guidance our market base. supply the levels upon expectations leasing update or our and will we our dynamics activity accordingly.

the same-property guidance projected driven property that XXXX has Net straight-line revenue. range average XX.X% X%, to of occupancy same-property is to remain X.XX% Our quarter projected in been effective from cash the primarily of increased to in by and guidance Components same-property to driven X% X%. the XXXX strong the year early our X% NOI same X.XX%, NOI XX%, is full unchanged, lease average to level includes to of remains generates by be timing guidance higher range downtime. and renewal activity which of rental and unchanged, in up

and the that leasing of leasing quarter-to-quarter to net rents approximately the XX%, we excluding guidance incorporates lease expect Cash spreads Note of effective approximately impacted mix of aforementioned impact the spread XX% leases Tireco current spreads are extension. of and by execute. spreads market leasing

in our a Rexford in line revenue X.X-month to your to the We your the for average enables our welcome outstanding expected and basis in team differentiates again success. business as now percentage and debt Bad Thanks pre-pandemic area. ongoing to range point that levels Operator? of and XX concessions XX with be work questions. is the

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

little Michael, outlook incrementally California, your view be your segments in and/or rebound some earlier, which the negative your it was submarket more conservatism of with disparity, view, consistent bit a initial is what be as you it color Southern gave can helpful. though seems but about gave pretty really one But size might talk you that timing views. more in just So initial your different on peers of whether activity a in driving different just exposure?

on because appreciate us I the much Blaine, a setting an don't I relative a it's having joining more so in conservative expectations. just thanks think It's less for today. basis Rexford been question maybe question. about little important or

markets, the of the gets very, or fact are fundamentals the drive think than that space, different feet, surrounding fundamentals to I foot markets square for tenant the average really Inland portfolio the in very answer markets, XX,XXX the where non-infill Empire. fundamentals more more the in to that space the our market like size, square infill our the and often example, tend be under larger XXX,XXX larger which is

it. there a that designed get It also I to think infill with California. drivers. to of And reasons gets focus the differentiated that's is we truly its we the this exclusively own fact it on to where crux so many business market really Southern really are

markets the of And difference. impact in last It's consumption. trade the disproportionately by have the base drivers bigger serving regional The first and distribution the regional global tend market mile global super that. driven flows, And largest on I largest to in box mentioned, really zone is a our are in economy infill that's as fundamental the tenant demand country. big regional

case dramatic. the base naturally, the came saw an globally. relative drop Rexford's we study, performed way like real-world during greatest I demand you the dramatic financial market But the in crisis. smaller great if box And think was tenant big example a to the probably had

and was during relative, vacancy actually within was stable worst doubled, occupancy the on relatively For times, time submarket today. worse Eastern was markets. actually that vacancy like that or Empire tripled our nothing and and And depending instance, Inland infill at the of the

is the driver within So highest-quality of in I that the in our then our performance. layer think Rexford, infill that locations, to that's submarket. best key our mandate on product you really deliver markets, the functional, terms fact within highest differentiation And

should Rexford positive cycles, differentiated So and going see that's box submarket. market within to by within a submarket performance markets, outperform our the we even market, infill the within big through

So lot to there's it. a

through we've I many through cycles, think it cycles. observed

data clear. think is I the pretty

back we go when our at almost disclosures tracked can went You look it public. and then. XX We years

it's think the fairly by supported out consistent and I there. So data

try I that. that's and guidance we why conservative not future -- on things growth additionally, did the be and how about forward, And like And take happen market think thoughts we our look rent we try future. may we in to try the to in to don't incorporate prognosticate really our and what

Michael. helpful, Very Great.

spreads you for Second question, rent expectation cash XXXX. about XX% I an last quarter, in believe talked

XX.X%, Your mentioned, goal spreads you if Laura, now XX%, that I excluding that. were I misheard quarter me just Tireco. And is correct think this the but

So on wondering in be through giving just what higher spreads confidence you might in quarters? second comment can you if the guys fourth

just to Blaine, is line we with that's and Yes, our same quarter. that guidance in last set full for property clarify, our XX%, cash expectations year the

is guidance full Tireco. expectations set line XX% Our for net that year also we in and effective the quarter, excluding last with

So given vary executed that leases know, the that spreads you quarter the are quarter. can that in all rolling in that said, any as dependent are and being leases upon

in right sign. This that for expected our came leases we with quarter, spreads to line in the expectations

comfort forward, and that trading number on year. full the look for renewals that paper leasing a of spreads will expectations around we're achieve we able to we give As new be us our

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

investment strategy. have a I about questions few your

allows cost continue deploying this and you underwriting? rents a decline there's in do capital risk of how balance to market capital you to when raised the to you While accretively, transact

thank and you for today, for much so us the thanks Camille, joining question.

and overcome whatever of cost our investment about may key is So value the focus to creation be. capital strategy the ability around

which was we didn't And state the capital over create when cost of medium look to key inexpensive, capital the unique we're cases, take even investment question, strategy. assets value X term. market is environment inherent opportunities growth hurdle, greatest to our your nominal and our even capital, or flow cost strategy cash is business, of investment focused creation, differentiator have rent to that you In an a in because our some powerful. very overcome value or investment our will, of may value where the frankly, rents, the in where steady that long truly declining and you of increasing are if these at even to on means in capability declining that underwrite market fact, create generating we identifying strategies with we our And that

And continue I because that more more the itself more that Rexford decline, you're stabilize to think we're that's or properties generating through to inherent you overall market do the that going the and flow markets where see the work, to markets going the X going or differentiate increase even -- the renovations is to to us cash capabilities growth. rent flow modernizations with declining cash enable increasing

update And points I Got plan. ownership, understand that of business the you'll it. different your

through can option you are so in we than performs the Or pull? in line there underwriting? look your to levers better if you've extension or position are XXXX, asset lease this So created initial to being you in Tireco and how confident able it

the all, we just Camille, first increased extension it's Howard. was X% of done existing after lease. under the rent Well, Tireco

a increase. So they that option, fixed had

a under again year lease. pick really in initial up so we which X% only another the gave up And bump, we

X-year also So we options option in market so that fair a it, value. -- has that the with The we're lease are outcome. at pretty happy

which any to could substantially we deliveries to to there in competing come would product market we're even into the occur within marketplace at marketplace be product, rent what see the expirations in So could the market. exploration in that able looking that less in from [Indiscernible] reset

a it So looks be lease. better addressing that our window, much time from to like

actually so and And continue open we've window to performance the left the reset the of asset.

quite closed there. And elevated lot quarter of cash. level a excess added of capital the color an with Appreciate you've built the and

cash bit about shed you the year in a you're this balance how can assumed been what's light So more on and thinking guidance?

for question. thanks Camille, Yes, your

on of we today, $X liquidity. as million top our equity billion of billion about That of include as currently $XXX for the in sit that, $X.X $XXX revolver. settlement and liquidity, have remaining of we of does million cash forward terms $X.X In hand. is as cash our included well billion also On

of accepted of So we when capital, uses under and that contract. pipeline are we about that then under in acquisitions -- at look the million the offer have or $XXX

that have also capital $XXX We on are about redevelopments to spend this just process. year million of repositioning in and

drive liquidity sources to the other revolver. about of us thinking other So we leaves -- creation, in to that basis. terms our uses continue driving opportunities we're when into the really, executing investing value mean, the to of over -- just today on be with of and we on about but And I $XXX and an -- of on find going top with million of strategy capital, selective but very future not those are investment substantial accretive that can

of comes McGinniss with from line question Scotiabank. Greg Next the

a comparable based held the net on determining rents? us, data how quarter-over-quarter, I Rexford on steady rent but any bit market little in free market And concessions? guys showed portfolio? guess increase also, been you Have guys or down are effective you about the other seeing you rent what for have that year-over-year, rents

so Greg, for I'll much here. Thanks, in us today. joining Yes. jump

you Tireco excluding this were quarter concessions, of see, the can as terms our In X.X I concessions mean, lease. months,

in. as is the the the with did in month full estimated, for X.X that's from in that's And which we're think months. on that this we note year at guidance what And guidance we I'll last beginning the to we more we with that have XXXX. normalized operating Our increase of average concessions is consistent year consistent really, market quarter. had X

years, line to concessions back more we're XXXX, assuming with you in markets. those If the XXXX, look pre-pandemic

concessions new on concessions includes look our average new and leases. you When renewal and at guidance, it --

on to And new on activity concessions. activity of months our quarter, this leases. renewals you X.X this so quarter our at our XX% look were X.X Concessions when compared lower was renewals months just have that

concessions that the projecting we're X.X that's year. portfolio months So of average full for driving the entire the for certainly

certainly size between markets as varies. varies, varies concessions, terms In leases. the it It renewal certainly by submarket. It varies and across and new of by I mentioned,

rent we market we of to the each prior rent your terms our incredible within space question Thank team is the In market rent you market lease some space there lease prior call portfolio, they X,XXX and are within market at do quarter. quarter every around our a listening, incredible and portfolio, we growth single have every we that but to our that rents could the how does space over analysis, apply in way, determine quarterly, much And how on an that we market and for portfolio. by compare that and team, the that thought market our rent we the rent today. an rent second quarter. then growth back that job quarter. spaces that's at would Bottoms-up the we And the to determine so rent that job we believe we

the sticking you last with test I And Okay. cap equity the push And to and of Did did there you of year, seemed fund up activities. utilizing greater to was you to taking end it asset maybe like then dispositions investment guess the steps sales? any were openness of end at a the And market? on seeing convert instead kind that funding rates? to what

$XX of either million contract offer. Yes. on dispositions with or a dispositions this sale year. We under activity $XX Actually, we increased a accepted have announced million

point activity some year actually in rate this this actually. the this providing maybe on were least stable -- And environment. in they to question more maybe year more or transparency increase year, a so earlier interest And reflected to at your perception, we're

the disposition X.X%. Michael's And $XX rate million, to was cap completed comment, the just add we I'll for in-place

not you're will funds the -- guess of the but expectation it's spend? part acquisitions structure or capital terms But redevelopment I that for dispositions for raising portfolio not any in really repositioning a how Okay. meaningful there's become of

capital. of meaningful, important our Well, think important a it accretive it's you of we very strategy. It's depends a source part how define but very

to And activity really where a why of we how so is. a that's meaningful. also immediate define sense the it give disclosure you depends the better little And on pipeline additional folks provided

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

I a the on little cap wanted the have lot don't initial The but ask about to accretive of a tight cost your to your I realize, mark-to-market. seems just that off-market given with you, competitors cost rate transaction of of X.X% of based limited It pricing capital. was Blackstone. capital, your

wondering came I with think go and market? in the you how was that So up this pricing where open out you would

even in great rates terms just will recently. high-quality that think was with them. represent John, the of bit there with compression other cap the finding was we've cap in it's Howard. some But with literally under functionality lease-up And it. was in how location Well, just between we curated we're there's contract this year that think terms risk X of within seeing X assets -- market growth closed of one a with that -- when balance they was of a a that some it of -- vacancy current to in transactions rate I it it quite obviously little [X.X%] I some some growing some a and had few close, portfolio, seen transactions

underwriting. actually performing outperforming able already. portfolio little the place was that initial and We've conservatively interesting. the you yield, some are the been past, it's we've some so for. [X.X%] already [X.X%] to growing And rents in put the how about us were upside underwrite. the to probably heard In had And a talk that we looking renewals frankly, The bit we had

get sense to of gone of if assets Did go didn't pool one your it has you public a a that peers? to Rexford then similar

a unique to we're wasn't portfolio that a able Principles, with of seeking There Blackstone. where wasn't Not a necessarily really with that upon said, opportunity came was been directly Blackstone transact XX this it years curated because scenario be was we to with And have really where we hey, the they it up. involved. broker And And we've relationship building to something them. bringing market.

it. really early an of shot want You a It was here. out collaboration

that portfolio, marketplace we something to terms would else. would had, now even. And particular in wasn't market transacted capital So decided to market, have tighter no, just possibly if in the have to frankly, think this a right fact, somebody coming back the Blackstone really it gone of little

them. John, we additional them, assets with. We've familiar are long And even Blackstone an very on provide these before them them are offering perspective, just to underwriting and owned many been of that

So that crafting informational together portfolio gave us Blackstone. of an advantage in terms the with inherent

have larger wanted Okay. leasing portfolio of particularly demand about some you the there's for ask weaker and and larger... assets, redevelopment or the to if that including on Avenue, your XXX DuPont I interest projects demand repositioning redevelopment and strong under

Yes.

just well, I on want speculative -- not the happen to of and basis. a So first does of how Most Southern frame to a come but in lot generally of assets pre-leasing, market functions. Typically, all the it there's California there. here market here all,

We have many assets. the instances where we've pre-leased of some

and on speaking path. the frames the that the nothing West. paper the it. parties you we're in to, we're pipeline activity And the the Empire And very future. We we feet of right in asset unusual our completed about There's just were that now we repo XXX,XXX any So it. on on right with said, with. redevelopment activity we the Inland good we're actually trading encouraged near very do lease-up might time exceed have two something have But

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

have the if a you the submarket maybe methodology. is back of versus I you spread the from that out go of of rents of kind what's a here kind kind question. you it market just there? versus to versus market some are pool for view if broad of Can in quarter, guess with your in of the level are, held what hit kind we outperformance if that picture on where to give versus rents steady estimating CBRE the are reporting specific brokerage aggregate the guys the of your us of between I put understand accuracy firms where rent of bigger guys your of out To sort all kind terms headlines. focus of sense rate that's markets of the view on pretty the

observed consistently almost the lower to X XX% what I And even for -- generally negative think foot market we've the that of covering functionality, feet market Thanks much billion the we is assets. this much of Craig. question, numbers general time, hearing is And XXXX. fundamentally with is a over pool the and question, in great I joining well is billion net consistently square overall a quality, report things. product. think how a And couple today. different in versus a rents it's square driving X general market that One, lower think I in primary you're absorption so in in the built of through difference those around us by before very your obsolete driven market Yes,

then leasing performance, So of found activity that in the of is our also locations. portfolio. better rents, what exceed tended for higher our that our we've informed vast think move tend actual to what has activity, of forward also is which of terms rents as marketplace. our functionality, quality, to higher majority give were the interesting each a . And thought our we that I view And market by driving is our we but is leasing actual the it's quarter, function what's we

I the very portfolio. pretty our for been If pretty So think consistent. and it be the slightly underestimating we've this your accurate little to question might been we've a doesn't counterintuitive, necessarily anything, is future, that and actually, answer probably predict

it go submarket how of as from bit of? purchased, of of any a what helpful. versus about it dive it kind And the kind into That's traditional, think Just of maybe R&D? Okay. consists portfolio of the deeper little perspective, kind just Blackstone a is kind industrial much guys then through could you of characteristics you we just

I we a with Well, portfolio this in as curated all, comment, previous of Craig, Howard. it's mentioned Sure. Blackstone. first

foot of building The right is primarily what I Chino, in the So functional Orange County it's bull's which it all low XX% it in was owns in the West. product mean and in that by eye L.A. the product of industrial. operates is finish, and is highly Empire miniscule markets, And marketplace. XX,XXX is it was in XX% Inland the Rexford was X that of

where seen estate, it So performing the we that and it's own is through markets we've exactly to want real cycles. best

the that is XX,XXX space said, feet. square size portfolio average that in So

the size costs one research some no to construction the in done had is has that you'd work math rents. market, decades, between land on doesn't because deliveries able values, for marketplace to you what ranges to those if And deep the find been deliver space and

terms competition what of and of terms the sort the comes to to huge there's quality any of comments And especially in when in Michael's quality. of really so back of about market And barriers product. around that type age get assets, the you into

steps X.X% were were So -- market, looking leases at portfolio of then place XX% about years. X.X average term weighted below rent in-place that the averaged is and and the lease in

we're So near-term in locking escalators us in but these this gets which X% leases. there's that X.X%, up stabilization, to

can more then maybe bit add a work and to little that there's more of and bit loading a value-add potentially a in and some we great and so periods little of So creation add yard and forth even do here road. light some compounding value modernization improvements, there down will the future the fence and functional just there's effect some value

one guys, you And know try Michael, capital, that. I that Great. find you are assets one. cost of accretive to to last

cap to so equity be buyer kind Or where is. on move cost dependent stock you would But at necessarily a your your today or not improves? see Rexford compression? rate assets of levels, to sideline of there's just until capital if of we to at here you these of similar would And bought rates what cost the it's expect cap

haven't to we I lift the give what that time investment cost closed at believe yet, We of our on we buying. we're opportunities the stock will going we focus than capital don't overcome give but to more price tell that guidance that you on are that

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

through a 'XX guess, that of XX% touching level? the expecting expiring 'XX are into we your into saw Or activity like a similar moved leases little been leasing bit looking just is like 'XX? in scrolling expirations, or to the quarters, redevelopment. have repositioning and around on, X we I Maybe 'XX activity acquisition over XX% last just from and elevated

every I comes mean, at quarter, set execute point able we Yes. talked the and within I asset. opportunities we've lot acquisition around be the a portfolio plan, where single last to that we of value on our to about the think creation strategic that plans

number moved of projects so into redevelopment XX the -- and we And into last quarter, projects repositioning a pipeline.

as And the so give we've looked -- deep we as try as pipeline to far look possible visibility you much and possible. into as

a so redevelopment next and likelihood we'll the incorporating months. execute that that that over to a XX there's And plan XX repositioning we believe on we're projects reasonable

last You'll any into that look, didn't that giving properties also quarter repositioning because we move notice this included you forward redevelopment additional those projects quarter. and we're we and

disclosure So is today? kind visibility planned and what's the what you what you of have in

That's correct.

months. Yes. the Over next to XX XX

touching Okay. maybe Laura, quarter. in on just debt And the bit bad then, little a

You up of guys year. the specific then guide for expectations did but reaffirmed call kind a the X tenant,

a on little be So just more helpful. that bit color would

Yes, absolutely.

our So pre-pandemic the in line XX debt to levels. XX is for full bad guidance points, year basis with

and than within remained our list, Our we and we've remains and our at consistent in And less stable. XX in the XX that's have have past months. with what watch watch tenants when our very seen to tenant on X,XXX look tenants we over portfolio, X very line we health list,

debt. did bad terms this tenant. in see isolated single a In quarter, It an increase was of to we

seeing guidance. prewatchlist, incorporated Importantly, which was our guidance, tenant into is why that increase on was that already and us you're not

for for XX of basis our bad the debt of to the full points rest that QX, debt are good about year. feel we the QX imply where through about So would year. Currently, bad expectations

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

next Tireco quarter? you years last what do of first one, sort outlined extension XX% XX% that your outlook with with X to to to Blackstone, of sort the to X-year just kind the that this does Maybe deal of get the for

No communicated. expectations. our in This outlook as we our was within change

you're So be XX% to be FFO and to -- expecting XX%? still to about 'XX 'XX for

Well, X based anticipating year, to going on the is of back growth years at XX%. we're per of XX% next forecast X% share our basis the to midpoint. on math, the again, an This annual for FFO an average growth

-- to 'XX. that that's repositioning driven and So are importantly, higher and that that projected being start those. would And the pipeline in of the 'XX the imply redevelopments and growth we or in have by delivery

it. Got

think I mark-to-market us Laura, cash helpful. a mind mark-to-market the us GAAP That's as just is gave you giving where today? Do Okay. portfolio. you the

The XX% of the end you cash compares of XX%. at which I'm you'll helpful. That drivers the fourth mark-to-market sure that, Yes. find to quarter. is today give I'll

quarter, being by that's XXX So there. that's from the that a the of we leasing points X in the change conversion mark-to-market percentage driven point completed

vacates that capture of any we've -- As mark-to-market note, conversion basis within from impact point XXX able to the that impact NOI steps of acquisition. our portfolio of and portfolio, is basis million from a quarter. this annually contractual which to our the a equated $X impact rent a the XXX X.X%, just from XXX first point through point then average quarter been basis

are are peers a have some XPLs different, exposure XPL? Okay. these called out do in the What's sense or know I larger your I broader to weakness really have rough your box regional XPL last you then sort smaller of just different. the the one, ones? And markets market. SoCal whether guess of That's But of helpful. your are maybe portfolio

hear much feet. XXX,XXX about XPLs, And mentioned us, we Vikram, Michael. joining talking again, square averaging than larger feet peer thank it's square spaces closer you so XXX,XXX actually again to when for to they're XXX,XXX

it side but any movement industries. is the yes, been positive balanced, So there's demand on seen tenants type It's other and different infill absorption. side, dramatic both tenant of a on relative And base. we've to where think negative pretty other is, within to a and our not sectors XPLs, really really the what markets also been I other among some and

more little a balanced within our infill So markets.

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

to you portfolio maybe you aware your other situations in months? of XX the Tireco XX had that to Are any fixed are similar next renewal that over

at point. material this No

regarding maybe specifically, And terms are what activity most demand? of is category, you demand, in where And of to the which activity tenant that most date? seeing driving

reasons the California one no of on which trend beauty the It's the that's in is which extremely generic markets to most and diverse. we trend country, to of think and tenant on the focusing the base perspective, is deepest, focus diverse our probably widest, industrial broadest and us I base. by thing. enables I a great the many Southern single infill space, the world. And our strong from way, maybe Well, in sector a It's that appeal think tenant there's

by of a so from diverse way, the million surprising demand representing over the the sector, sources the California expect really very, fact products, are consumer increase at mandate vehicle housing. XX%, they've electric shown And by aerospace, momentum. very X.X that least some trades, has we of to which . And that's -- not units positive given housing building

give think in And so to we of XX-plus that's the next -- going about terms great for years. demand some us that's tailwinds actually

the in of prior and the of Actually, set way to extremely So activity e-commerce-driven which of quarter quarters we was way. terms that's our this drivers. tenants, diverse interest the market. e-commerce And actually early in from at notable a had We're surprising, stages lot a seeing last elevated of compared by still distribution of on activity in leasing all. not impacts

Got great. you ask one other it. That's question. can Laura, I

be that point portfolio over mark-to-market mark-to-market -- the will for future end willing are quarters? year can I provide talked you 'XX. point, recalculation on this next at on think the or portfolio if 'XX, several year-end wrong, you maybe correct you like about the something some of entire I'm what Is me guys the you think that did your the at the

to as quarter communicated we the as daily. changes I last going because mean that we've we we see mark-to-market each we're quarter know, as communicated, the Yes. actually provide mark-to-market it

into leases, -- annual market -- that mark-to-market dependent basis, a change and moving upon the sign the and resetting signed. the leases we moving we're we will As quarterly on that

most time. mark-to-market that in visibility with the point all every a you quarter the it's provide think at to we into So helpful

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

secured Inland and LA leased West Empire feet to I in to noticed mostly that you pool. and appear these X the under million pool, XXXX compared the XXXX County, assets be guys added square into the of assets

think if any at where do assets? these maybe be And to the curious on occupancy going provide you Just color year-end? can is you

question. Anthony, Thanks, for Yes. your

the number We've move leases of quarter terms signed into basis of a did have assets assets number add points the in the of contribute this lease-up opportunity. In about actually a XX will we as were year. to a that yes, few There through pool we same-store occupancy of that that pool. pool, actually same-store

there So prospects the and excited the or opportunity for about we're prospects growth.

[Operator Instructions] of line our with the from comes question next Vince Tibone Green And Street.

some spec Are leasing IE would grow you right? acquisition willing developers in risk opportunities Empire starting distressed take and actually any West on in and footprint see price Inland from to be your you if is to the

it's trend a I your anything Vince, of heard that. haven't of type Howard. seen like little but voice. terms to hear I've in bit, any Nice mass in

that market We're anything we're to in As product underwriting far not it. and vacancy interested in market putting that on that area in appetite that really as side product buy our the an any not been easily a to take is larger of supply? of hasn't delivered answer in terms It's has market we're be the no. more going to The focus. if would replicable that simple

West follow-up infill that. of lease do rate a it. adjusted sense. IE a Got kind Makes similar And and to stabilized spread you between What today is for mark-to-market? then cap the LA think just

basis say. of the point or see think under plus But XX to the we're I hard that It's is in from to we contract, starting some it's know or transactions product that minus probably somewhere range.

for now will I session. turn the Q&A team our conference over management remarks. concludes closing to back the That

next today's We wish very you months. you about look on well the with Rexford call. much joining X to for forward Industrial you reconnecting for Thank and

today's conference call. concludes This

disconnect. now may You