Rexford Industrial Realty (REXR) Bank of America Securities 2024 Global Real Estate Conference summary

Company overview and market positioning

• Operates the largest pure-play, U.S.-focused industrial REIT, valued over $15 billion, focused exclusively on infill Southern California, the fourth largest industrial market globally.

• Portfolio includes 50 million sq ft of highly functional industrial property, serving a diverse tenant base in a region with over 24 million people.

• Persistent supply constraints and high demand in infill Southern California create a favorable supply-demand imbalance, supporting outperformance.

• Internal growth is driven by asset repositioning and redevelopment, while external growth leverages proprietary acquisition sourcing and deep market expertise.

• Maintains an investment-grade, low-leverage balance sheet with net debt to EBITDA at 4.6x, supporting accretive growth opportunities.

Financial performance and growth outlook

• Achieved average annual earnings per share growth of 16% over the past five years, outperforming peers by 75%.

• Projects internal cash NOI growth of 35% over the next three years, reaching nearly $900 million.

• Expects three-year average annual Core FFO per share growth in the 11%-13% range, driven by internal NOI growth.

Leasing activity and market trends

• Recently signed a 275,000 sq ft lease at 500 Dupont, with rent commencing in October, and leased another 100,000 sq ft at 302 Rockefeller.

• Leasing activity remains strong for units under 50,000 sq ft, with some softness in the 100-300,000 sq ft range in the Inland Empire.

• Tenant demand is diversified, with increased interest from aerospace, construction, food and beverage, and EV sectors.

• Renewal activity is robust, with higher rate increases on renewals than new leases; occupancy and leasing trends align with projections.