Rexford Industrial Realty, Inc. Provides Operating and Transaction Update for Second Quarter

Rexford Industrial Realty, Inc. has provided a comprehensive update on its operating and transaction activities for the second quarter. The company has excelled in leasing industrial properties, with a significant 1.2 million square feet of new and renewal leases executed to date. This impressive performance reflects the company's focus on creating value through strategic investments in infill Southern California.

Key Takeaways:

• The company executed 1.2 million square feet of new and renewal leases, with an average unit size of 17,000 square feet, including approximately 652,000 square feet of renewal leases and 571,000 square feet of new leases.
• Comparable rental rates on new and renewal leases increased by 17% compared to prior rents on a net effective basis and by 4% on a cash basis.
• Embedded annual rental rate increases averaged 3.7% for leases executed quarter to date.
• The company leased a 191,000-square-foot repositioning project at 218 Turnbull Canyon Road in the Los Angeles - San Gabriel Valley submarket, with a total investment of $31 million, generating a projected unlevered stabilized cash yield of 9.2%.
• The 5-year lease commences in September 2025 upon project completion and includes 3.8% embedded annual rental rate increases.
• The company disposed of 2270 Camino Vida Roble in the San Diego - North County submarket for $31 million, or $289 per square foot.
• The repositioned, 106,300-square-foot, multi-tenant industrial building was 95.1% occupied at the time of sale.
• The transaction generated an 11.9% unlevered IRR to the company.
• The company has $32 million of dispositions under contract or accepted offer.

Statistics:

• 1.2 million square feet of new and renewal leases executed by the company to date.
• 652,000 square feet of renewal leases executed by the company to date.
• 571,000 square feet of new leases executed by the company to date.
• 17% increase in comparable rental rates on new and renewal leases compared to prior rents on a net effective basis.
• 4% increase in comparable rental rates on new and renewal leases compared to prior rents on a cash basis.
• 3.7% average embedded annual rental rate increase for leases executed quarter to date.
• 191,000 square feet repositioning project leased by the company at 218 Turnbull Canyon Road in the Los Angeles - San Gabriel Valley submarket.
• $31 million total investment in the repositioning project.
• 9.2% projected unlevered stabilized cash yield for the repositioning project.
• 5-year lease term for the repositioning project.
• 3.8% embedded annual rental rate increase for the repositioning project.

Sources:

• Rexford Industrial Realty, Inc. (NYSE: REXR)
• Press release issued by Rexford Industrial Realty, Inc.