Rexford Industrial Realty, Inc.

Greetings and welcome to the Rexford Industrial Realty first quarter 2022 earnings call. At this time, all participants are in a listen-only mode. The 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. As a reminder, this conference is being recorded. I would now like to turn the call over to David Lanza, General Counsel. Thank you. You may begin.

We thank you for joining us for Rexford Investor's first quarter 2022 earnings conference call. In addition to the brochure release distributed yesterday after market close, we posted a supplemental package and investor presentation in the investor relations section on our website at www.rexfordinvestor.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 Reform Act of 1995. Forward-looking statements address matters that are subject to risk 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 Investor 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 reconciliations and an explanation of why such non-GAAP financial measures are useful to investors. Today's conference call is hosted by Rexford Industrials 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 first quarter 2022 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 start the new year, our exceptional first quarter performance demonstrates the extraordinary tenant demand that continues to strengthen Even beyond last year's historic levels, Rexford continues to differentiate itself as the nation's fastest-growing and strongest-performing industrial league. Our portfolio now comprises over 38 million square feet of industrial property, 100% located within Southern California infill markets, the strongest industrial market in the nation, and the fourth-largest industrial market in the world. Our portfolio is performing at essentially full occupancy with our same property pool ending the quarter at over 99% occupancy. We are seeing an exceptionally deep and diverse range of tenant demand across sectors. Demand substantially exceeds supply with overall market vacancy tracking at well below 1%. We expect to continue to experience an incurable supply-demand imbalance due to an extreme lack of developable land This inability to increase supply within infill Southern California is a key feature that we believe will differentiate our markets into the foreseeable future. In addition to this exceptional market backdrop, our entrepreneurial business model continues to position us to drive accretive cash flow growth and value creation well in excess of secular tailwinds. Our team is executing on a range of internal and external growth strategies, that are unlocking tremendous value. Leasing spreads for the quarter were a full 71% on a gap basis and 57% on a cash basis. On the external growth front, year to date, our team acquired $458 million of assets sourced predominantly through off-market or lightly marketed transactions. And compared to the prior year quarter, we grew net operating income by 41% and grew core FFO by a full 58%. As we look forward, we are very well positioned to continue to grow our cash flow and value. From an internal growth perspective, over the next 24 months, we project approximately $140 million, or 33% of annualized NOI growth, embedded within our in-place portfolio, assuming no further acquisitions, which includes $31 million of incremental NOI as our redevelopment and repositioning projects stabilize $29 million of incremental NOI from recent acquisitions, and $82 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 55% on a cash basis and 63% on a net effective basis. In addition, we have an extensive pipeline of additional investments currently comprising over $500 million of acquisitions under contract or accepted offer, and we have an extensive originations pipeline beyond these transactions. To fuel our growth, we are favorably positioned with a low leverage best-in-class balance sheet, closing the quarter at 10.3% net debt to enterprise value. As a reflection of the company's strong performance, our first quarter dividend represented a 31% increase compared to last year. And with that, we'd like to thank our entire Rexford team, for your extraordinary dedication, passion, and entrepreneurial approach to growing our great company. And now I'm very pleased to turn the call over to Howard.