REXFORD INDUSTRIAL REALTY, INC. BofA NY Global Real Estate Conference 2026

Why don't we get started? I know it's 4:30. This is the last panel of the day, so I know everybody's excited from that perspective. Welcome to the Rexford Roundtable. Happy to have Laura Clark, CEO, up here. Laura, why don't you introduce your team, I mean, we have a big group here, and give us any opening remarks.

It sounds good. Well, thank you all for joining us today, and thank you for your interest in Rexford. Thank you all for hosting, Bank of America. With me today are Mike Fitzmaurice is our CFO, John Nahas, our COO, and Doug Bettisworth is our SVP of Investor Relations and Capital Markets. Before we move to your questions in Q&A and any questions that we have in the room, I'd like to provide an update on what we're seeing in the overall Southern California industrial market and an update on our current strategic priorities. Let me start with the market. The leasing activity continues to improve in our market. We are seeing evidence that demand is strengthening across Southern California.

In the second quarter, the market generated nearly 6 million square feet of positive net absorption, resulting in the first decline in overall vacancy that we've seen in the market in four years. Leasing activity has been strong throughout the third quarter, and we are seeing demand from a broad range of industries, including advanced manufacturing, logistics, and consumption-based users like food and beverage, automobile, and construction related businesses. Of note, demand across the market is broadening, and that's a good sign. We're seeing activity across more submarkets and size ranges than we were earlier in the year, and leasing momentum remains strong in spaces under 50,000 square feet. While activity in larger Class A spaces, especially in the North Orange County and Mid Counties market, has improved as corporate users have become increasingly active. While availability in the market remains elevated, we are moving in the right direction.

That said, incremental tenant demand driving net positive absorption is fundamental to the market's continued recovery. Turning to our strategic priorities, we have taken decisive actions this year to strengthen our platform and sharpen our focus. Earlier this year, we completed a comprehensive portfolio review, and we identified approximately $2 billion of non-core assets for dispositions. This initiative reflects a very disciplined effort to concentrate our portfolio around properties we believe offer the strongest long-term growth and value creation potential. Including our recently announced $1.2 billion transaction with EQT Real Estate, we have closed or have under contract approximately $1.5 billion of dispositions year to date, which positions us to achieve our full year disposition objectives. Proceeds from our dispositions will enhance our ability to execute on our capital allocation priorities and increase financial flexibility.

We are reducing near term debt maturities, repurchasing shares when attractive opportunities arise, and we are continuing to invest in our high return repositioning and development opportunities across our portfolio. At the same time, our conviction in the long term outlook for infill Southern California industrial real estate remains strong. The Southern California industrial market benefits from one of the most diverse demand bases in the country. At the same time, supply under construction has fallen to multi-decade lows, and increasing restrictive state and local regulations, specifically including AB 98 and Senate Bill 415, are making new development increasingly more difficult. These dynamics further strengthen the long term value of our portfolio and our differentiated platform. Before I conclude, I want to recognize the Rexford team. The progress that we've made this year reflects the exceptional execution across the entire organization.

In closing, we have acted decisively to strengthen Rexford. We have sharpened our portfolio, we have enhanced our balance sheet strength, we have improved operational efficiency, all reinforcing our long term growth platform. As market conditions continue to improve, we believe that Rexford is exceptionally well positioned to create value for shareholders and capitalize on the opportunities ahead. With that, I'll turn it to you for questions.

Samir. Yeah, I'll start, and I want to keep this interactive, so if anybody has questions, please.

Maybe talk about the submarkets. There are certain markets that are clearly doing well in L.A. and South Bay, but talk to us kind of broad, kind of what you're seeing within the markets.

Yeah. I'll start a little bit higher level, and then John can dive into some of the submarkets. As I mentioned in my prepared remarks, what we've seen from the second quarter into the third quarter is, I'd say, just a broad pickup across the market in terms of activity. And that includes across submarkets and size ranges. As I mentioned, that sub 50,000 square feet continues to be strong. That's been a spot of strength for several quarters now. We've even seen market rent growth for the past two quarters within that product that's sub 50,000 square feet. And what we've seen generally, in the third quarter, is that pickup in Class A, driven by those corporate users, as I mentioned. And that's been very positive for the pipeline, the leasing pipeline that we have from a development and repositioning perspective.

So generally, we've seen more activity and more lease executions around those assets that we have for lease up in the development and repositioning pipeline. John Nahas can certainly speak more about some of the submarkets.

Yeah. So you touched on South Bay. We've been describing that market in two parts. There's the coastal portion, which I think most people are familiar with. Advanced manufacturing demand is quite robust and that is continuing. But that is acutely focused on the most coastal areas of the beach cities between El Segundo down to Torrance, with some spilling over into Long Beach. When you look beyond that one tenant sector, beyond advanced manufacturing, it is a bit different. In general, logistics demand is there, but not nearly at the level that we're seeing with advanced manufacturers. The whole market is a bit bifurcated. We're seeing rents and occupancy and absorption behave differently across those two areas. Similarly, we have other markets like the San Gabriel Valley, which are exhibiting strength in pockets around the city of industry.

That's one area, as Laura Clark mentioned, where we're seeing increased demand for Class A product. We have a couple of development sites that were completed, and are happy with increased activity we're seeing there. But like the South Bay, there's a bit of a bifurcation. When you look at the Irwindale portion, which is the north part of the San Gabriel Valley market, it's not quite the same. We're seeing healthy demand, sub 50,000 square feet, as Laura noted, and as well as with product that's Class B with higher functionality. But Class A remains a bit slower in that market. Logistics demand is one of the bigger drivers for San Gabriel Valley overall. That is also true for the Inland Empire West. We're continuing to see good demand coming from those sectors. Our product in the IE is on the smaller scale as compared to most.

Our average unit size in that market is 30,000 square feet. Nevertheless, we do own a few bigger boxes and have some exposure to some of the increased 3PL, and warehousing tenant demand that we've seen there. Probably most notably what's different from earlier this year, certainly even last quarter, is some of the Class A demand focused on markets like Orange County and mid counties. Those markets year to date have been a bit quieter in that space. Over the last 60-90 days, we've seen increased activity and more deals getting to the finish line. Light manufacturing, some advanced manufacturing is driving a lot of that tenant activity in those markets. Mid counties, you'll see a little bit more logistics there as well. Then real quickly rounding out, San Fernando Valley, which is a big presence for us. Class A remains a bit slow there.

Class B product and smaller sized units are continuing to lease and perform very well. That market does historically have a larger component, roughly around 20%, that is tied to entertainment. That sector has not gotten any better. It is still a lot of the same. We have not seen that demand portion come back yet. Overall, activity generally is going in the right direction across all the markets and most size ranges that we operate in.