Financial Data and Key Metrics Changes - Adjusted company FFO for Q4 was $0.79 per diluted common share, totaling approximately $47 million, while for the full year, it was $3.15 per diluted common share, or $187 million [14] - The company provided 2026 adjusted company FFO guidance of $3.22-$3.37 per common share, indicating a 4.6% growth at the midpoint [15] - Net debt to adjusted EBITDA improved from 5.9 times to 4.9 times [5][21] Business Line Data and Key Metrics Changes - The company leased nearly 5 million sq ft in 2025, achieving attractive mark-to-market outcomes of approximately 28% on a cash basis, excluding fixed-rate renewals [5] - Portfolio occupancy increased to 97.1% at year-end 2025, up from 93.6% at year-end 2024 [16] - Same-store NOI growth for the full year was 2.9%, with a flat performance in Q4 compared to the same period in 2024 [16] Market Data and Key Metrics Changes - The target markets contributed over 66% of the overall U.S. net absorption of about 54 million sq ft [6] - Larger users favored facilities exceeding 500,000 sq ft built within the last 5 years, with significant demand in markets like Phoenix, Indianapolis, Fort Worth, and Houston [7] Company Strategy and Development Direction - The company plans to focus on disciplined investment and external growth opportunities, particularly in its land bank, while executing opportunistic share repurchases [10] - The development program has yielded a 7.1% weighted average stabilized yield on first-generation leases, with 15 facilities developed since 2019 [10] - A new 1 million sq ft spec project is set to break ground in Phoenix, with completion anticipated in the first half of 2027 [12] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about improving market fundamentals and the potential for significant value creation in the land bank [9][12] - The company is focused on leasing remaining vacancies and generating robust mark-to-market outcomes in 2026 [12] - Management noted that concessions are expected to recede as the market becomes more landlord favorable [37] Other Important Information - The company exited five non-target markets in 2025, prioritizing investments in 12 target markets that account for 87% of gross book value [8] - Total disposition volume for the year was $389 million, with an average cash capitalization rate of 5.7% on stabilized assets sold [8] - The company repaid approximately $220 million of debt in 2025, including $140 million of senior notes due 2028 [21] Q&A Session Summary Question: Inquiry about planned development in Phoenix - Management indicated that the supply-demand equation is favorable, and there is interest in the facility even before completion [27] Question: Clarification on same-store NOI growth - Management explained that the variance from guidance was primarily due to higher property expense leakage across several properties [32] Question: Discussion on concessions and market environment - Management noted that concessions are expected to decrease as the market improves, leading to a more favorable environment for landlords [37] Question: Future transaction activity and capital allocation - Management mentioned ongoing negotiations for $200 million of assets in non-target markets, which could provide capital for redeployment [39]

Financial Data and Key Metrics Changes - Adjusted company FFO for Q4 was $0.79 per diluted common share, totaling approximately $47 million, while the full year adjusted company FFO was $3.15 per diluted common share, or $187 million [14][15] - The company reduced leverage from 5.9 times to 4.9 times net debt to adjusted EBITDA and increased occupancy by 350 basis points to 97.1% [5][16] - Same-store NOI growth for the full year was 2.9%, with flat growth in Q4 compared to the same period in 2024 [16] Business Line Data and Key Metrics Changes - Nearly 5 million sq ft was leased in 2025, with attractive mark-to-market outcomes of approximately 28% on a cash basis, excluding fixed-rate renewals [5][7] - In Q4, over 2 million sq ft was leased with base and cash rental increases of approximately 27% and 23%, respectively, excluding fixed-rate renewals [7] - The company addressed roughly 3 million sq ft, or 41% of its total 2026 rollover, achieving an average cash rental increase of approximately 28% [7] Market Data and Key Metrics Changes - The company's target markets drove over 66% of the overall U.S. net absorption of about 54 million sq ft [6] - Larger users favored facilities exceeding 500,000 sq ft built within the last 5 years, with markets like Phoenix, Indianapolis, Fort Worth, and Houston leading demand [6][7] Company Strategy and Development Direction - The company plans to focus on disciplined investment and external growth opportunities, mainly in its land bank, while executing opportunistic share repurchases [10][12] - The development program has produced 15 facilities since 2019 with a 7.1% weighted average stabilized yield on first-generation leases [10] - A new 1 million sq ft spec project is set to break ground in Phoenix, with completion anticipated in the first half of 2027 and an estimated budget of $120 million [11][12] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about improving market fundamentals and the positive momentum associated with advanced manufacturing investments [12] - The company is focused on leasing remaining vacancies and generating robust mark-to-market outcomes in 2026 [12][24] - Management noted that while cash balances are currently weighing on earnings, liquidity is valuable for future opportunities [9] Other Important Information - The company exited five non-target markets in 2025, prioritizing investments in 12 target markets that account for 87% of gross book value [8] - Total disposition volume for the year was $389 million, including $116 million from non-target market sales in Q4 [8] - The company repaid approximately $220 million of debt in 2025, including $140 million of senior notes due 2028 [21][22] Q&A Session Summary Question: Inquiry about development plans in Phoenix - Management indicated that the supply-demand equation is favorable, and there is interest in the facility even before completion [26][27] Question: Clarification on same-store NOI growth - Management explained that the variance in same-store NOI growth was primarily driven by higher property expense leakage across several properties [32][34] Question: Discussion on transaction activity and capital allocation - Management noted that there are $200 million of assets in negotiations that could lead to good outcomes, which are not included in guidance [39][40] Question: Inquiry about cash same-store NOI guidance - Management clarified that the 3.25% contribution from contractual bumps and spreads is expected, with fixed-rate renewals potentially dragging down figures [44][46] Question: Comments on build-to-suit opportunities - Management expressed interest in the build-to-suit space, noting that the supply dynamics are encouraging, particularly in their land bank [56][57]

Financial Data and Key Metrics Changes - Adjusted company FFO for Q4 2025 was $0.79 per diluted common share, totaling approximately $47 million, while for the full year, it was $3.15 per diluted common share, or $187 million [15] - The company provided 2026 adjusted company FFO guidance in the range of $3.22-$3.37 per common share, indicating a growth of 4.6% at the midpoint [15] - Net debt to adjusted EBITDA improved from 5.9 times to 4.9 times by year-end 2025 [6][22] Business Line Data and Key Metrics Changes - The company leased nearly 5 million sq ft in 2025, achieving attractive mark-to-market outcomes of approximately 28% on a cash basis, excluding fixed-rate renewals [6] - Portfolio occupancy increased to 97.1% at year-end 2025, up from 93.6% at year-end 2024 [16] - Same-store NOI growth for the full year was 2.9%, with flat performance in Q4 compared to the same period in 2024 [16] Market Data and Key Metrics Changes - The company’s target markets accounted for over 66% of the overall U.S. net absorption of about 54 million sq ft [6] - Larger users favored facilities exceeding 500,000 sq ft built within the last 5 years, with demand concentrated in markets like Phoenix, Indianapolis, Fort Worth, and Houston [7] Company Strategy and Development Direction - The company plans to focus on disciplined investment and external growth opportunities, particularly in its land bank, while executing opportunistic share repurchases [11] - The development program has yielded a 7.1% weighted average stabilized yield on first-generation leases, with 15 facilities developed since 2019 [11] - A new 1 million sq ft speculative project is set to break ground in Phoenix, with completion anticipated in the first half of 2027 [12][13] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about improving market fundamentals and the potential for significant value creation in the land bank [10][24] - The company is focused on leasing remaining vacancies and generating robust mark-to-market outcomes in 2026 [13][24] - Management noted that concessions are expected to recede as the market becomes more favorable for landlords [36] Other Important Information - The company exited five non-target markets in 2025, prioritizing investments in 12 target markets that now account for 87% of gross book value [8] - Total disposition volume for 2025 was $389 million, including $116 million from non-target market sales in Q4 [8] - The company repaid approximately $220 million of debt in 2025, including $140 million of senior notes due 2028 [22] Q&A Session Summary Question: Inquiry about development plans in Phoenix - Management indicated that the supply-demand equation is favorable, and there is interest in the facility even before completion [26][27] Question: Clarification on same-store NOI growth - The variance in same-store NOI growth was primarily due to higher property expense leakage across several properties [31][32] Question: Discussion on concessions and market environment - Management noted that concessions are expected to decrease as the market improves, leading to a more landlord-favorable environment [36] Question: Future transaction activity and capital allocation - Management mentioned ongoing negotiations for $200 million of assets in non-target markets, which could lead to favorable outcomes for capital redeployment [38][39] Question: Comments on build-to-suit opportunities - Management expressed interest in build-to-suit projects, particularly in light of favorable supply dynamics and their existing land bank [55][56]

INVESTOR PRESENTATION FOURTH QUARTER 2025 LXPINDUSTRIAL TRUST Forward-Looking Statements and Other Disclosure This presentation contains certain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements, which are based on certain assumptions and describe future plans, strategies and expectations, are generally identifiable by use of the words "believes," "expects," "i ...

Core Viewpoint - First Industrial Realty Trust (FR) is a prominent player in the real estate investment trust (REIT) sector, focusing on industrial properties, with RBC Capital maintaining an "Outperform" rating and raising the price target to $66 from $59.62 [1] Group 1: Stock Performance - FR's current stock price is $59.62, reflecting a slight decline of 0.28% or $0.17, with a trading range between $58.94 and $60.36 during the session [2] - Over the past year, the stock reached a high of $60.79 and a low of $40.31, indicating significant price fluctuations [2] - The company has a market capitalization of approximately $7.9 billion and a trading volume of 1,113,721 shares [2] Group 2: Volatility - FR has a beta of 1.14, indicating that its share price is 14% more volatile than the S&P 500, which may appeal to investors seeking higher returns [3] - In comparison, NETSTREIT has a beta of 0.88, suggesting it is 12% less volatile than the S&P 500 [3] Group 3: Profitability Metrics - FR demonstrates strong profitability with a net margin of 34.03%, a return on equity of 9.02%, and a return on assets of 4.48%, significantly outperforming NETSTREIT [4] - NETSTREIT's metrics include a net margin of 0.10% and both return on equity and return on assets at 0.01%, highlighting FR's operational efficiency [4]

Core Viewpoint - Rexford Industrial reported a GAAP loss of $0.30 per share in Q4 2025, leading to a stock drop of over 5%, but Core FFO was $0.59 per share for the quarter and $2.40 for the full year, indicating a discrepancy between GAAP figures and operational performance [1][2][3] Financial Performance - Q4 included $89.1 million in real estate impairments related to six development projects and $60.2 million in severance costs, totaling approximately $149 million in one-time charges [2] - Full-year Core FFO reached $558.6 million, a 9.2% year-over-year increase, while per-share growth slowed to 2.6% due to dilution [4] - Portfolio NOI increased by 5.7% to $752.7 million, suggesting that the company is not in distress but rather experiencing a deceleration in growth [4] Capital Allocation - Rexford made no acquisitions in 2025, marking a first for the company, and instead sold seven properties for $217.5 million at a 12.4% unlevered IRR, while initiating a $250 million share buyback program [5] - An additional $500 million buyback program was authorized, indicating a shift in capital allocation strategy from offensive to defensive [5] Market Conditions - Market rents in Southern California have declined by approximately 20% since early 2023, with a further 9% year-over-year drop noted in Q4 [5][6] - Portfolio occupancy fell to 90.2%, down 160 basis points from Q3, attributed to repositioning activities and tenant difficulties [6] Future Outlook - Rexford is targeting $400 million to $500 million in asset sales for 2026, with $230 million already under contract, which could support its capital recycling strategy [7] - Management guided for a decline of 1.5% to 2.5% in same-property NOI, marking the first negative guidance from the company [8] - The new CEO, Laura Clark, will focus on cash flow quality and operational efficiency starting April 1, 2026 [9] Guidance and Market Sentiment - The 2026 Core FFO guidance of $2.35 to $2.40 implies flat to slightly negative growth, reflecting a significant deceleration from the previous year's 9.2% growth [10] - The company maintains a clean balance sheet with $1.4 billion in liquidity and $3.3 billion in debt at 3.7%, indicating no leverage issues but highlighting a demand problem in the market [10]

Core Insights - The company aims to reduce General & Administrative (G&A) expenses to below the peer average, targeting approximately 6% of revenue by 2026 [1] - Rexford plans to sell $400 million to $500 million in properties in 2026, having already sold seven properties for $218 million in 2025 [2][8] - The company has identified six development projects totaling about 850,000 square feet that it will not pursue, intending to dispose of these sites [3][8] - Rexford executed 3 million square feet of leasing in the quarter, focusing on improving cash flow quality and optimizing shareholder returns [4] Financial Performance - Q4 core Funds From Operations (FFO) was reported at $0.59, with full-year 2025 core FFO at $2.40; guidance for 2026 core FFO is set at $2.35 to $2.40 [7][19] - The company recognized $89 million in impairments on development sites, allowing for the reallocation of about $285 million in capital [14][23] - Total portfolio occupancy ended the quarter at 90.2%, down 160 basis points sequentially, influenced by repositioning and development starts [15] Market Conditions - Management noted softer fundamentals in Southern California, with CBRE rents down approximately 9% year-over-year and occupancy at 90.2% [6][9] - Early signs of stabilization in select submarkets were mentioned, despite negative net absorption [9][10] - Market rents in Rexford's portfolio have decreased by about 20% since early 2023, impacting expected re-leasing spreads for 2026 [16] Strategic Initiatives - The company is prioritizing occupancy and cash flow, exemplified by an early renewal with its largest tenant, Tireco, which is expected to reduce 2026 same-property NOI by about 50 basis points [10][11] - Rexford's leadership transition includes COO Laura Clark becoming the new CEO, focusing on reducing development exposure and aligning compensation metrics [5][8] - Management expects to redeploy proceeds from asset sales into high-return projects and potential share repurchases [21][22] 2026 Guidance - Core FFO per share guidance for 2026 is set at $2.35 to $2.40, with expectations of stabilization and rent commencement from repositioning projects generating $20 million in annualized NOI [19][20] - The company anticipates a decline in same-property NOI growth of about 2%, with bad debt projected at 35 basis points of revenue [20][17] - Rexford expects to end 2026 with $166 million in cash, with total sources including dispositions estimated at $616 million [23]

Financial Data and Key Metrics Changes - Fourth quarter Core FFO per share was $0.59, in line with expectations, driven by higher Same Property NOI growth, lower G&A expense, and accretive share buybacks, partially offset by higher Bad Debt [14] - For the full year, after adjusting for co-CEO transition severance charges and other non-recurring costs, Core FFO per share was $2.40, placing the company at the high end of initial expectations [14] - Total portfolio occupancy ended the quarter at 90.2%, down 160 basis points sequentially [15] Business Line Data and Key Metrics Changes - In 2025, the company signed approximately 2 million sq ft of repositioning and development leases, generating nearly $40 million of annualized incremental NOI [15] - The company recognized $89 million of real estate impairments related to development sites that are being sold, allowing for the redirection of $285 million of capital into higher-yielding uses [15] Market Data and Key Metrics Changes - Market rents declined 10 basis points in the quarter and 9% year-over-year, with total market rent down 1% in the fourth quarter [9][16] - Vacancy increased 30 basis points during the quarter, and net absorption was negative, reflecting broader market softness [10] Company Strategy and Development Direction - The company is focused on enhancing cash flow quality, driving per share FFO and NAV growth, and optimizing returns for shareholders [6] - A programmatic disposition plan is a key component of the capital allocation strategy, targeting between $400 million and $500 million of dispositions in 2026 [8] - The company aims to reduce G&A as a percentage of revenue below the peer average, with a target of 6% for 2026 [8] Management's Comments on Operating Environment and Future Outlook - Management remains confident in the long-term fundamentals of infill Southern California despite near-term pressures impacting 2026 growth expectations [6] - The company is prioritizing occupancy to drive cash flow and is maintaining rigorous capital discipline in light of current market dynamics [10] - Management believes Rexford is well-positioned to capture recovering demand to drive occupancy and NOI growth [12] Other Important Information - The company executed a strategic early renewal of its largest tenant, Tireco, allowing for significant de-risking of cash flow [10] - The company is committed to aligning executive compensation with shareholder priorities, having recalibrated compensation metrics [9] Q&A Session Summary Question: Can you provide more understanding on the Tireco lease re-signing? - The decision to prioritize occupancy and de-risk future cash flow led to an early renewal of the Tireco lease, which was above market [23][24] Question: How much further do you expect rents to decline? - Management noted signs of stabilization but indicated challenges remain, making it difficult to call an inflection point [28][30] Question: What is driving the occupancy decline? - The occupancy decline is attributed to longer downtime for leasing and repositioning, with specific properties expected to move out [36][39] Question: What industries are on the watch list for bad debt? - The watch list remains similar year-over-year, with a higher concentration in logistics due to specific business issues [43] Question: What are the expected sources and uses of cash for 2026? - The company expects to have $413 million available for deployment after accounting for development spend, which can include share repurchases [78]

Financial Data and Key Metrics Changes - Fourth quarter Core FFO per share was $0.59, in line with expectations, driven by higher Same Property NOI growth, lower G&A expense, and accretive share buybacks, partially offset by higher bad debt [14] - For the full year, after adjusting for co-CEO transition severance charges and other non-recurring costs, Core FFO per share was $2.40, placing the company at the high end of initial expectations [14] - Total portfolio occupancy ended the quarter at 90.2%, down 160 basis points sequentially, largely driven by near-term repositioning and development starts [15] Business Line Data and Key Metrics Changes - The company executed 3 million sq ft of leasing in the fourth quarter, meeting guidance expectations [6] - In 2025, the company signed approximately 2 million sq ft of repositioning and development leases, generating nearly $40 million of annualized incremental NOI [15] - The company recognized $89 million of real estate impairments related to development sites that no longer meet investment hurdles, allowing for the redirection of $285 million of capital into higher-yielding uses [15] Market Data and Key Metrics Changes - Market rents declined 10 basis points in the quarter and 9% year-over-year, reflecting broader market softness [9] - Vacancy increased 30 basis points during the quarter, with net absorption being negative, indicating a more measured pace of demand [10] - The company noted that supply under construction in the market is near historic lows, supporting future rent growth potential [11] Company Strategy and Development Direction - The company outlined immediate strategic priorities to enhance cash flow quality, drive per share FFO and NAV growth, and optimize shareholder returns [6] - A programmatic disposition plan is a key component of the broader capital allocation strategy, targeting between $400 million and $500 million of dispositions in 2026 [8] - The company is committed to driving operating efficiencies, targeting a reduction in G&A as a percentage of revenue below the peer average, with a goal of 6% for 2026 [8] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the long-term fundamentals of infill Southern California, despite near-term pressures impacting 2026 growth expectations [6] - The company is maintaining rigorous capital discipline and prioritizing occupancy to drive cash flow, with a focus on maximizing risk-adjusted returns [12] - Management acknowledged the challenges in the current market but emphasized the unique upside potential of the company and its assets [11] Other Important Information - The company opportunistically sold seven properties in 2025, totaling $218 million, and plans to continue recycling capital into accretive opportunities [8] - The company recalibrated executive compensation metrics to align with shareholder priorities, underscoring its commitment to operating in direct alignment with shareholder interests [9] Q&A Session Summary Question: Insights on the Tireco lease re-signing - Management prioritized occupancy and de-risked future cash flow growth by negotiating an early renewal with Tireco, allowing for a strategic three-year lease to reset at market rent sooner [24][25] Question: Expectations for market rent trends - Management noted signs of stabilization in leasing activity but indicated challenges remain, making it difficult to call an inflection point in the market [30][34] Question: Factors driving occupancy decline - The decline in occupancy was attributed to longer downtime for leasing and repositioning, with specific properties expected to move out for redevelopment [37][39] Question: Bad debt and watchlist tenants - Management indicated that the watchlist size remained stable year-over-year, with a concentration in logistics, and emphasized a judicious approach to bad debt reserves [40][43] Question: Expected sources and uses of cash for 2026 - The company expects to have $413 million available for deployment after accounting for development spend, which can include share repurchases or future projects [79]

Financial Data and Key Metrics Changes - Fourth quarter Core FFO per share was $0.59, in line with expectations, driven by higher Same Property NOI growth, lower G&A expense, and accretive share buybacks, partially offset by higher Bad Debt [15] - For the full year, after adjusting for co-CEO transition severance charges and other non-recurring costs, Core FFO per share was $2.40, placing the company at the high end of initial expectations [15] - Total portfolio occupancy ended the quarter at 90.2%, down 160 basis points sequentially [16] Business Line Data and Key Metrics Changes - In 2025, the company signed approximately 2 million sq ft of repositioning and development leases, generating nearly $40 million of annualized incremental NOI [16] - The company recognized $89 million of real estate impairments related to development sites elected for sale, allowing redirection of $285 million of capital into higher-yielding uses [16] Market Data and Key Metrics Changes - Market rents declined 1% in the fourth quarter and have fallen 20% since the peak in early 2023, contributing to pressure on expected re-leasing spreads for 2026 [17] - Vacancy increased by 30 basis points during the quarter, and net absorption was negative, reflecting broader market softness [11] Company Strategy and Development Direction - The company is focused on enhancing cash flow quality, driving per share FFO and NAV growth, and optimizing shareholder returns through a rigorous approach to capital allocation [6][8] - A programmatic disposition plan is in place, targeting between $400 million and $500 million of dispositions in 2026 to recycle capital into accretive opportunities [9] - The company aims to reduce G&A as a percentage of revenue below the peer average, with a target of 6% for 2026 [9] Management's Comments on Operating Environment and Future Outlook - Management noted that tenant demand is influenced by macroeconomic forces and elevated market availability, contributing to a more measured pace of demand [10] - The company remains confident in the long-term fundamentals of infill Southern California, despite near-term pressures impacting growth expectations for 2026 [6] - Management emphasized the importance of prioritizing occupancy to maintain cash flow and de-risk future growth [12] Other Important Information - The company executed a strategic early renewal of its largest tenant, Tireco, allowing for significant cash flow preservation [11] - The company is committed to aligning executive compensation with shareholder priorities, having recalibrated incentive compensation metrics [10] Q&A Session Summary Question: Clarification on Tireco lease re-signing - Management prioritized occupancy and de-risked future cash flow growth by negotiating a 3-year lease renewal with Tireco, which was above market [24][25] Question: Expectations for market rent declines - Management indicated that while there are signs of stabilization, they are not ready to call an inflection point in the market yet [30][34] Question: Specifics on occupancy decline - Management noted that the decline in occupancy was driven by longer downtime for repositioning and redevelopment projects [37] Question: Bad debt concerns - Management reported a watch list of tenants with some concentration in logistics, indicating ongoing monitoring of larger tenants [44] Question: Expected sources and uses of cash for 2026 - Management expects to have approximately $413 million available for deployment after accounting for development spend, which can include share repurchases [78]