Rexford Industrial Realty, Inc.

Good morning. My name is Holly and I will be your conference operator today. At this time, I would like to welcome everyone to the Rexford Industrial Realty, Inc. Second Quarter 2026 Earnings Call. Thank you. I will now hand the call over to Doug Bettisworth, Senior Vice President, Investor Relations and Capital Markets at Rexford Industrial. Doug, please go ahead.

Thank you, and welcome to Rexford Industrial's second quarter 2026 earnings conference call. In addition to yesterday's earnings release, we posted a supplemental package and earnings presentation in the investor relations section on our website to support today's remarks. As a reminder, management's remarks and responses to your questions may contain forward-looking statements as defined by the federal security laws, which are based on certain assumptions and subject to risks and uncertainties outlined in our 10-K and other SEC filings. As such, actual results may differ, and we assume no obligation to update any forward-looking statements in the future. We'll also discuss non-GAAP financial measures on today's call. Our earnings presentation and supplemental package provide gap reconciliations as well as an explanation of why these measures are useful to investors. Joining me today are Rexford CEO, Laura Clark, together with our COO, John Nahas, and our CFO, Mike Fitzmaurice. It's my pleasure to now introduce Laura Clark. Laura.

Thank you, Doug, and thank you all for joining us today. The Rexford team delivered another quarter of strong execution. Leasing volume is up 50% year-to-date compared to this time last year, and we are raising core FFO per share guidance for the second consecutive quarter. We are also encouraged by improving fundamentals across the broader infill Southern California industrial market with increasing tenant demand driving positive net absorption and lower market vacancy. Our second quarter results reflect continued progress against the strategic priorities we laid out earlier this year. Opportunistic dispositions, accretive capital recycling, and operational rigor. We have moved with discipline, conviction, and speed, taking meaningful action to position Rexford to deliver durable growth and shareholder value. Today, we are building on that momentum. by announcing a comprehensive portfolio realignment through the planned disposition of approximately $2 billion of non-core assets. This is a pivotal and deliberate step to further strengthen Rexford's portfolio, enhance the quality and sustainability of our cash flows, and position the company to deliver outsized total shareholder returns. Over the first half of the year, we conducted a comprehensive asset-by-asset review of the portfolio, evaluating every property through the lens of future growth potential, cash flow durability, and the opportunity to create value. That review identified approximately $2 billion of non-core assets, representing approximately 8 million square feet that do not align with our long-term strategy. These assets are generally characterized by more limited value creation opportunity, elevated competitive supply, shorter remaining lease durations, and substantially above market-in-place rents. Just as importantly, this process reinforced our conviction in the quality, durability, and embedded growth potential of the approximately 43 million square feet of core assets that will comprise our go-forward portfolio. These are assets we believe will drive outsized FFO and NAV per share growth and form the foundation of Rexford's next chapter. We have made significant progress executing this planned portfolio realignment. During the quarter, we launched a robust disposition process, and we are now in advanced discussions on a substantial portion of the planned sales. Based on the depth of interest and progress to date, We are confident in our ability to execute this realignment, and we expect the vast majority to be completed this year. The current valuation gap between private and public markets creates a compelling window to act now. Our disciplined capital recycling strategy gives us the ability to capitalize on this opportunity in a way that is accretive over the long term. As we redeploy capital, our priorities remain clear and unchanged. We will continue to allocate capital to the highest risk adjusted return opportunities available. This includes strengthening our balance sheet and liquidity profile, opportunistically repurchasing shares at a meaningful discount to intrinsic value, and selectively investing in high yielding repositioning and development opportunities across our portfolio. Taken together, This portfolio realignment enhances our financial flexibility, improves the quality and consistency of our cash flows, and positions Rexford for long-term growth and value creation. To be clear, these actions together reflect conviction around our long-term view of Enfield Southern California Industrial Real Estate. This market is powered by a robust local economy larger than most countries. New supply remains limited and barriers to future development are increasing. In fact, supply under construction today is at multi-decade lows, and recent regulatory changes have introduced additional development constraints that will make it increasingly difficult to bring new industrial supply to the market. These dynamics reinforce the scarcity and long-term value of the assets we are choosing to own and strengthen the competitive advantages of the Rexford business model. Operational rigor also remains a core priority and is reflected in our execution to date. Through an in-depth and ongoing review of our cost structure, we identified an additional $3 million of G&A savings this quarter, bringing our total G&A savings since 2025 to $22 million. Our focus remains on driving greater operational effectiveness and efficiency across the business. In summary, our transformative strategic actions combined with the strength of our team, value creation framework, dynamic market fundamentals, and commitment to operational rigor provide a powerful foundation for Rexford to deliver meaningful value for our shareholders in the years ahead. Before I turn it over, I want to thank the entire Rexford team for their extraordinary effort this quarter across the platform. I am energized by the focus, dedication, and execution our team continues to bring every day. John?