Rexford Industrial Realty, Inc.

Greetings. Welcome to the Rexford Industrial Realty, Inc. Fourth Quarter and Full Year 2021 Earnings Call. At this time, all participants are in a listen-only mode. A question and answer session will follow the formal presentation. If anyone should require operator assistance during the conference, please press star zero on your telephone keypad. Please note this conference is being recorded. I'll now turn the conference over to your host, David Lanzer. You may begin.

We thank you for joining us for Rexford Industrial's fourth quarter and fiscal year 2021 earnings conference call. In addition to the press release distributed yesterday after market closed, we posted a supplemental package and investor presentation in the investor relations section on our website at www.rexfordindustrial.com. On today's call, management's remarks and answers to your questions may contain forward-looking statements. as defined in the Private Securities Litigation and Reform Act of 1995. Forward-looking statements address matters that are subject to risks and uncertainties that may cause actual results to differ from those discussed today. For more information about these risk factors, we encourage you to review our 10-K and other SEC filings. Rexford Industrial assumes no obligation to update any forward-looking statements in the future. In addition, certain financial information presented on this call represents non-GAAP financial measures. Our earnings release and supplemental package present GAAP reconciliation and an explanation of why such non-GAAP financial measures are useful to investors. Today's conference call is hosted by Rexford Industrial's Co-Chief Executive Officers Michael Frankel and Howard Schwimmer together with Chief Financial Officer Laura Clark. They will make some prepared remarks and then we will open the call for your questions. Now I will turn the call over to Michael.

Thank you, David, and thank you, everyone, for joining our Rexford Industrial fourth quarter 2021 earnings call. We hope you and your families are well. I'll provide some brief remarks, followed by Howard, who will discuss our transaction activity, and then Laura will provide an update on our financial metrics and guidance. As we look back on 2021, we are struck by the unique strength of our Rexford platform. As we increased consolidated NOI, by 38%, which drove a 24% increase in FFO per share for the full year. Rexford continues to differentiate itself as the nation's fastest growing and strongest performing industrial REIT, with five-year average annual FFO per share growth of 14%, average consolidated NOI growth of 31%, and five-year average dividend growth of 18%, all of which continue to lead the industrial sector. We thank every Rexford teammate for your industry-leading work and dedication. To put this performance into perspective, our acquisitions team closed $1.9 billion of investments that are positioned to drive substantial cash flow growth and value creation. On the leasing front, we completed nearly 7 million square feet of leasing volume, and our leasing team drove average leasing spreads of 43% on a gap basis, and 29% on a cash basis for the year. Our construction and development team completed over 1 million square feet of value-add projects, generating an aggregate stabilized unlevered yield of 6.6% and creating over $165 million of incremental value creation. Rexford's operations and property management teams continued to drive superior customer satisfaction metrics with historically low downtime, and ended the year with our same property portfolio at over 99% occupancy. Our infill Southern California market fundamentals are as exceptional as our operating platform. Tenant demand continues at an unprecedented level of intensity, driven by an exceptionally broad and diverse range of sectors. With the highest demand and lowest vacancy in the nation, our Southern California infill market is currently operating at over 99% occupancy. We continue to experience an incurable supply-demand imbalance due to an extremely limited ability to increase net supply. Consequently, market rent and property values are growing at a substantially higher pace within infill Southern California as compared to all other major markets across the nation. It is also important to note that our infill Southern California industrial market represents the world's fourth largest market, behind only the entire countries of the United States, China, and Germany. Infill Southern California is not only the largest and most fragmented industrial market in the nation, but the value of our market is about the same as the next five largest U.S. markets combined. Consequently, as our proprietary research-driven originations methods enable our unique access to this vast market, we are capitalizing upon a substantial opportunity to grow well beyond our current 2% market share. As we look forward, we've never been better positioned to grow our cash flow and value. From an internal growth perspective, we currently project over $120 million of annualized NOI growth, representing a 30% increase embedded within our in-place portfolio over the next 24 months, which includes Approximately $28 million of incremental NOI as our redevelopment and repositioning projects stabilize. Approximately $38 million of incremental NOI from recent acquisitions. And approximately $55 million of incremental NOI contributed as we roll below market rents to higher market rates. In fact, the mark-to-market on rental rates for our entire portfolio is now estimated at 41% on a cash basis, and 51% on a net effective basis. In addition, we have a substantial pipeline of new accretive investments with over $450 million of acquisitions under contract or accepted offer, plus an extensive originations pipeline beyond this volume. To fuel our growth, we are favorably positioned with a low leverage, best in class balance sheet, closing the year at 9.1% debt to enterprise value, Finally, as a reflection of the company's strong performance, we are pleased to announce that we're increasing our dividend by over 31%. And with that, I'm very pleased to turn the call over to Howard.