Rexford Industrial Realty (REXR) Barclays 22nd Annual Global Financial Services Conference 2024 summary

Company overview and strategy

• Largest pure-play, U.S.-focused industrial REIT with $15B+ entity value and 50M sq ft portfolio in infill Southern California, a top global industrial market.

• Internal growth driven by a vertically integrated team focused on renovating and repositioning assets for higher quality and functionality.

• External growth leverages proprietary access to a fragmented 1.8B sq ft market, enabling off-market acquisitions.

• Maintains investment-grade, low-leverage balance sheet (net debt/EBITDA 4.6x) and rigorous capital allocation.

• Achieved 16% annual EPS growth over five years, outperforming peers by 75%.

Leadership transition and succession planning

• COO role created to enhance operational collaboration and efficiency amid significant company growth.

• Transition to COO is part of broader succession planning, ensuring leadership continuity.

• Management aims to build a team capable of sustaining and growing the business beyond current leadership.

• Active search underway for a new CFO, with strong candidate interest.

Market dynamics and demand outlook

• Portfolio focused on infill Southern California, benefiting from a deep supply-demand imbalance and net reduction in supply due to conversions to other uses.

• Demand remains durable, supported by diverse sectors such as aerospace, food, consumer staples, electronics, 3PL, and e-commerce.

• Average unit size under 30,000 sq ft, a segment with limited new supply and high barriers to replication.

• Occupancy levels around 97% are seen as sustainable, with market vacancy near steady state.