Group 1 - Rexford Industrial (NYSE: REXR) has been on the watchlist since 2019, with a desire to initiate a position that has not yet been realized [1] - The company is recognized for its potential in high-quality dividend stocks and long-term growth opportunities [1] - A hybrid investment strategy combining classic dividend growth stocks, Business Development Companies, REITs, and Closed End Funds is suggested to enhance investment income while achieving total returns comparable to traditional index funds [1] Group 2 - The analyst expresses intent to potentially initiate a long position in REXR within the next 72 hours [1]

Group 1 - iREIT+HOYA Capital focuses on income-producing asset classes that provide sustainable portfolio income, diversification, and inflation hedging [1] - The market can pursue growth stocks to unsustainable valuations, indicating volatility and potential corrections [2] Group 2 - The article emphasizes the importance of due diligence and personal investment conclusions, highlighting that it is for informational purposes only [4][5]

Core Insights - Rexford Industrial Realty, Inc. is set to release its first quarter 2025 financial results on April 16, 2025, after market close [1] - A conference call with senior management will take place on April 17, 2025, at 1 p.m. EDT [1] Company Overview - Rexford Industrial focuses on investing in and operating industrial properties in infill Southern California, which is recognized as the world's fourth largest industrial market [4] - The company has a portfolio of 425 properties, totaling approximately 50.8 million rentable square feet, occupied by a stable and diverse tenant base as of December 31, 2024 [4] - Rexford Industrial is structured as a real estate investment trust (REIT) and is listed on the New York Stock Exchange under the ticker "REXR" [4] - The company is a member of the S&P MidCap 400 Index, indicating its significant market presence [4]

Core Viewpoint - Rexford Industrial Realty, Inc. (REXR) has seen its stock price drop over 50% from its 2022 peak, reflecting market corrections rather than company failures [1][19]. Company Overview - Rexford owns a concentrated portfolio of premium warehouses in the Inland Empire, charging an annual rent of $16.71 per square foot, which is among the highest in the market [3]. - The company has a market capitalization of $9 billion and is recognized for its efficient scale and strong management [4]. Recent Performance - In Q4 2024, Rexford reported year-over-year growth rates of 8%-18% in key financial metrics such as FFO, AFFO, EBITDA, and NOI [5]. - Much of this growth was attributed to mark-to-market adjustments, as vintage leases were still based on lower rates from a decade ago, allowing for significant rent spreads on re-leasing [6]. Market Conditions - Market rental rates in Rexford's submarkets have shown weakness, with a decline of 1.5% sequentially and 8% year-over-year, although this is less severe compared to broader infill markets, which are down 12.5% year-over-year [8]. - The Inland Empire industrial market is currently facing challenges, as indicated by East Group Properties' strong performance in other regions [9]. Competitive Landscape - Rexford's stock decline is attributed to market mispricing rather than operational issues, as the market previously treated the boom in the Inland Empire as sustainable growth [12]. - The company has effectively capitalized on its asset selection during boom periods, doubling its earnings over the past six years [10]. Valuation Insights - Rexford's current trading multiple of 19.8X AFFO is closer to fair value, reflecting a correction from previous overvaluation [19]. - Despite a decline in leasing rates from 2023, they remain above 2014 levels, suggesting continued growth in NOI as leases roll [19]. Overall Assessment - Rexford Industrial Realty is considered a solid company with good assets and management, currently trading at a fair price, making it less attractive for immediate investment but worth monitoring for future opportunities [21][22].

Group 1 - Rexford Industrial Realty, Inc. (NYSE: REXR) is a midsized industrial REIT focused on the Southern California market, which is the largest and highest value industrial market in the nation [1] - The company operates as a pure play industrial player, emphasizing its specialization in the industrial real estate sector [1] - Roberts Berzins, with over a decade of financial management experience, has contributed to institutionalizing the REIT framework in Latvia and developing financing guidelines for state-owned enterprises [1]

Group 1 - The article promotes a 2-week free trial for iREIT on Alpha, which provides in-depth research on various investment vehicles including REITs, mREITs, Preferreds, BDCs, MLPs, and ETFs [1][2] - The service has received 438 testimonials, with most being 5-star ratings, indicating a high level of customer satisfaction [1] - The offer includes a free book by Brad Thomas, adding additional value to the trial [2]

Financial Obligations and Risks - The company has a balloon payment obligation that may adversely affect its financial condition and ability to make distributions [111]. - The company's debt level reduces cash available for distribution and may expose it to the risk of default under its debt obligations [113]. - The company may be unable to refinance its indebtedness at maturity or may face less favorable refinancing terms [117]. - The company’s ability to pay expected dividends depends on generating revenues in excess of expenses and scheduled principal payments on debt [120]. - Tax Matters Agreements may require the Operating Partnership to maintain certain debt levels, impacting operational flexibility [164]. - As of December 31, 2024, the total consolidated indebtedness of the company was $3.38 billion, with 100% of this being fixed-rate debt [415]. - The company is exposed to interest rate risk primarily due to variable-rate debt linked to SOFR, but it uses interest rate swaps to hedge this risk [414]. Real Estate and Market Risks - The company may face risks associated with investing in unfamiliar markets when acquiring properties in new locations [128]. - The company’s performance and value are subject to risks associated with real estate assets and the real estate industry [120]. - The company faces risks related to delinquency and foreclosure on commercial loans, which could materially affect results of operations [147]. Environmental Liabilities and Compliance - The company may incur significant costs related to government regulation and litigation over environmental matters, which could exceed the value of the property and aggregate net asset value [134]. - Environmental assessments conducted by independent consultants may not reveal all environmental conditions, exposing the company to potential liabilities [135]. - Contamination from current or prior uses of properties may require further investigation and remediation, leading to additional costs [136]. - The company usually performs Phase I environmental site assessments, which may not identify all potential environmental liabilities [137]. - Environmental laws impose requirements for managing asbestos-containing materials, potentially leading to fines and third-party liabilities [138]. - The company is subject to various federal, state, and local environmental, health, and safety regulations, which could increase potential liabilities [139]. - Significant environmental liabilities could adversely affect the company's financial position and ability to sell affected properties [140]. - Properties may contain lead-based paint or harmful mold, leading to potential remediation costs and liabilities [141]. - Compliance with federal, state, and local laws may result in significant costs and impact the company's growth strategy [142]. Corporate Governance and Structure - The company owned 96.4% of the outstanding common units in its Operating Partnership as of December 31, 2024 [169]. - The company has elected to be taxed as a REIT since its initial taxable year ended December 31, 2013, and intends to continue meeting REIT requirements [171]. - The company may issue additional common units to third parties without stockholder consent, potentially diluting existing ownership and distributions [169]. - The company’s board of directors has the authority to change investment and financing policies without stockholder approval, which could increase leverage and default risk [165]. - Certain provisions in the partnership agreement may delay or prevent unsolicited acquisitions or changes in control [160]. - The company’s charter limits stockholder rights to take action against directors and officers, potentially reducing accountability [167]. - The company’s interests are structurally subordinated to all liabilities of its Operating Partnership and subsidiaries, affecting stockholder claims in bankruptcy [168]. - The company’s bylaws exempt it from certain business combination provisions, but this could change in the future [158]. Taxation and REIT Compliance - Failure to maintain REIT qualification could lead to significant tax liabilities, reducing funds available for distribution to stockholders [171]. - To maintain REIT qualification, the company must distribute at least 90% of its REIT taxable income each year, which may necessitate borrowing during unfavorable market conditions [179]. - The company anticipates that the aggregate value of its taxable REIT subsidiaries will remain below 20% of its total assets, ensuring compliance with asset test limitations [178]. - If the company's Operating Partnership fails to qualify as a partnership for federal income tax purposes, it would cease to qualify as a REIT, leading to significant tax implications [175]. - The company may face a 100% penalty tax on income from prohibited transactions, which could limit its ability to engage in certain sales [181]. - Legislative changes affecting REITs could negatively impact the company's ability to maintain its REIT status and the tax consequences of such status [184]. - The company may need to liquidate or forgo attractive investments to comply with REIT requirements, potentially affecting profitability [183]. - The company is subject to federal income tax on its taxable REIT subsidiaries, which could impact cash flow available for distributions [177]. - The maximum tax rate on dividends payable by REITs is generally higher than that on qualified dividend income, potentially making REIT investments less attractive to investors [180].

Financial Data and Key Metrics Changes - For the full year 2024, the company delivered 7% growth in both core FFO per share and same-property cash NOI, demonstrating resilience despite challenging market conditions [22][24] - The fourth quarter performance included executing 1 million square feet of leasing at net effective leasing spreads of 55% and cash leasing spreads of 41% [14][22] - Same-property average occupancies declined by 120 basis points sequentially, driven by expected move-outs [14][24] Business Line Data and Key Metrics Changes - The company stabilized 10 repositioning and redevelopment projects across 825,000 square feet, achieving an aggregate 7.5% unlevered stabilized yield on total investment [15] - The average executed lease rate on 8 million square feet of 2024 leasing activity was 19% higher than the executed lease rate across the overall infill markets [12] Market Data and Key Metrics Changes - Market rents for quality products comparable to the Rexford portfolio declined by 1.5% sequentially and 8% year-over-year, which is better than the broader infill markets down 12.5% year-over-year [12] - The company observed a pickup in tenant activity and lease negotiations across vacant spaces since the start of the year [11] Company Strategy and Development Direction - The capital allocation strategy is focused on maximizing returns through capital recycling and repositioning of redevelopment opportunities [16] - The company has no acquisitions under contract or accepted offers, but has $105 million of dispositions under contract [16] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the impact of macroeconomic factors and political uncertainty on near-term growth but remains confident in long-term supply/demand fundamentals [10][11] - The company expects same-property net effective NOI growth of 1% for 2025, primarily driven by longer projected downtime and bad debt [24] Other Important Information - The company has a strong liquidity position with $1.4 billion in liquidity, including nearly full availability on a $1 billion revolver [27] - A $300 million share repurchase program has been authorized by the Board, expanding capital allocation opportunities [28] Q&A Session Summary Question: Leasing volumes from 3.2 million square feet in 1Q to 1 million in 4Q - Management noted that the 1 million square feet of leasing in Q4 was in line with expectations, driven by minimal lease expirations and a slower demand environment [32] Question: Components of cash same-store NOI growth - Management explained that elevated downtime, increased concessions, and higher bad debt were major drivers affecting NOI growth [37] Question: Market rent growth forecast - Management indicated that while it's hard to call a bottom for market rents, the business fundamentals remain sound, with smaller tenants showing more resiliency [44] Question: Retention ratios on lease expirations - Management guided to a 100 basis point decline in average portfolio occupancy for 2025, primarily due to higher projected downtime [48] Question: GAAP same-store NOI growth lower than cash - The gap is primarily due to straight-line rent as below-market leases burn off, impacting the overall NOI [54] Question: Demand for industrial space post-wildfires - Management anticipates increased demand for industrial space to support rebuilding efforts, particularly in infrastructure and housing [81]

Rexford Industrial Realty NYSE: REXR Earnings Presentation 4Q 2024 www.rexfordindustrial.com 20851 CURRIER ROAD, WALNUT Forward Looking Statements This presentation contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. We caution investors that any forward-looking statements presented herein are based on management's beliefs and assumptions and information currently available to management. Such statements are subject to risks, uncertainties and as ...

Group 1 - The Conservative Income Portfolio focuses on value stocks with high margins of safety and aims to reduce volatility through well-priced options [1][3] - The Enhanced Equity Income Solutions Portfolio is designed to generate yields of 7-9% while minimizing volatility [1] - Rexford Industrial Realty, Inc. (NYSE: REXR) has a buy under price of $42 and a HOLD rating following the review of its Q3 2024 results [2] Group 2 - Trapping Value is a team of analysts with over 40 years of combined experience in generating options income and capital preservation [3] - The investing group includes two income-generating portfolios and a bond ladder, focusing on lower volatility income investing [3]