Rexford Industrial Realty Inc at Barclays Global Financial Services Conference Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Brendan Lynch - Barclays Bank PLC - Analyst : Great. Thank you. And again, a lot of that for our Q&A. Maybe I'll just want to start with, in mid-June, Rexford announced that you were going to be taking on the new role of COO. Can you talk a little bit about your transition to that position? And where you aim to the new role?

Question: Brendan Lynch - Barclays Bank PLC - Analyst : Maybe a question for you, Michael, on these lines. You've worked with Laura for a long time now. Is it reasonable to interpret the change in Laura's responsibility in the context of succession planning?

Question: Brendan Lynch - Barclays Bank PLC - Analyst : Great. And maybe a comment or two on the CFO search and where that stands currently? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. SEPTEMBER 09, 2024 / 1:00PM, REXR.N - Rexford Industrial Realty Inc at Barclays Global Financial Services Conference

Question: Brendan Lynch - Barclays Bank PLC - Analyst : Great. It's -- we're in the peak political season, as you well know, and trade policies are certainly part of the narrative that's out there. Trump is proposing a 10% to 20% tariff on most imports and greater than 60% on Chinese products. Kamala Harris has suggested that she will also be implementing some tariffs if she were elected, although she's been a little bit less clear about the specifics. Is the potential for these tariffs already impacting your portfolio?

Question: Brendan Lynch - Barclays Bank PLC - Analyst : If there were to be tariffs that were implemented, how do you think that might impact demand over the next three to five years? It sounds like you're somewhat insulated just by the size of your assets and the tenant base, but do you envision that there could be any change if those tariffs were implemented?

Question: Brendan Lynch - Barclays Bank PLC - Analyst : Great. Let's talk a little bit about supply. The Inland Empire clearly had a lot of attention for the supply growth that I've seen over the past couple of years. Maybe you can walk us through your portfolio and where you're seeing the most supply pressure and where it's leased?

Question: Brendan Lynch - Barclays Bank PLC - Analyst : Great. Maybe following on there on demand. I've heard one of your peers say we're much more focused on the durability of demand than supply growth. How would you characterize the demand outlook now relative to the past few years?

Question: Brendan Lynch - Barclays Bank PLC - Analyst : Great. In terms of occupancy, levels are offbeat but still well above the long-term average. I think, maybe broadly, it would be 94%. Maybe you could give us some color on what it has been in your specific Southern California markets? Do you think you can maintain the 97% range that you're in now over the next several years? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. SEPTEMBER 09, 2024 / 1:00PM, REXR.N - Rexford Industrial Realty Inc at Barclays Global Financial Services Conference

Question: Brendan Lynch - Barclays Bank PLC - Analyst : Maybe just one more on demand. How do you think your portfolio will perform in a recession? You addressed this a little bit, but maybe go a little bit further.

Question: Brendan Lynch - Barclays Bank PLC - Analyst : Let's stick with the theme of the quality of the assets. You have about 1 million square feet under repositioning now with an estimated unlevered stabilized yield of 6.2%. Maybe talk a little bit about some of those things that you were alluding to there, where you are adding value and making the assets more productive relative to increasing the curb appeal through -- [or superficial means.] REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. SEPTEMBER 09, 2024 / 1:00PM, REXR.N - Rexford Industrial Realty Inc at Barclays Global Financial Services Conference

Question: Brendan Lynch - Barclays Bank PLC - Analyst : And what is that opportunity going forward? I'd imagine this is an ongoing process all the time, but you can scale it up, scale it back as demand warrants. What do you see as the opportunity for repositioning assets over the next couple of years, especially considering the large acquisitions that you've made recently? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. SEPTEMBER 09, 2024 / 1:00PM, REXR.N - Rexford Industrial Realty Inc at Barclays Global Financial Services Conference

Question: Brendan Lynch - Barclays Bank PLC - Analyst : Michael, you mentioned doing a lot of internal research. Maybe you could talk a little bit about data and analytics that you're gathering and what that means for your portfolio? And what type of efficiency gains we might be able to recognize? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. SEPTEMBER 09, 2024 / 1:00PM, REXR.N - Rexford Industrial Realty Inc at Barclays Global Financial Services Conference

Question: Brendan Lynch - Barclays Bank PLC - Analyst : Great. I wanted to circle back on the 275,000-square-foot lease that you signed this morning. It was for a 3PL tenant. You talked about the pluses and minuses of 3PL tenants. I believe they comprised about 25% of your portfolio now. So just walk us through some of those dynamics.

Question: Brendan Lynch - Barclays Bank PLC - Analyst :

Question: Brendan Lynch - Barclays Bank PLC - Analyst : Great. I just want to open it up to the room. If anybody has any questions, please raise your hand. If not, I can keep going. Maybe another secular theme that we could dig in on is the onshoring and near-shoring trends that have been discussed at length. One, are you seeing any evidence of onshoring yet? And would you consider your portfolio won't be benefiting from that trend as it materializes? Or maybe more in terms of the growth that we're seeing in Mexico, is that having any impact on your Southern California portfolio?

Question: Brendan Lynch - Barclays Bank PLC - Analyst : Let's talk a little bit about net pricing. Your cash mark to market now, I think it's about 26%. You're signing leases with 4% escalators. Concessions are coming up a little bit. Occupancy is still around 97%, as we were discussing earlier. How should we think about each of these factors going forward, where you can push to be a little bit more aggressive and maybe where you might be experiencing some resistance?

Question: Brendan Lynch - Barclays Bank PLC - Analyst : You're guiding to 1.5 months of concessions in 2024, but lower in the back half. Maybe just walk us through those dynamics? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. SEPTEMBER 09, 2024 / 1:00PM, REXR.N - Rexford Industrial Realty Inc at Barclays Global Financial Services Conference

Question: Brendan Lynch - Barclays Bank PLC - Analyst : Great. Let's talk a little bit about the long-term guidance. You're guiding to 6% to 7% AFFO per share growth in 2024 and 11% to 13% from '23 through '26 based on organic growth. What dynamics do you expect to change to allow you the stronger acceleration in '25 and '26 relative to '24?

Question: Brendan Lynch - Barclays Bank PLC - Analyst : I believe it also excludes Blackstone acquisition. That was after you provided the original 11% to 13% guidance?

Question: Brendan Lynch - Barclays Bank PLC - Analyst : Okay. Fair enough. And a question, yes, sure thing. Unidentified Participant If you wouldn't mind talking about the competitive environment a little bit, especially with some of that external growth opportunities that you talked about at the beginning? Is it private equity? What -- has anything changed from a competitive environment? That would be helpful. Thanks. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. SEPTEMBER 09, 2024 / 1:00PM, REXR.N - Rexford Industrial Realty Inc at Barclays Global Financial Services Conference

Question: Brendan Lynch - Barclays Bank PLC - Analyst : Great. Well, it looks like we're just about out of time. Laura, Michael, John, thank you very much for doing this. And for those of you in the room, we have Extra Space Storage coming up in just a few minutes. Thank you.