Rexford Industrial Realty Inc

Previous wording

As of March 31, 2024, our consolidated portfolio consisted of 422 properties with approximately 49.2 million rentable square feet.

Current wording

As of June 30, 2024, our consolidated portfolio consisted of 422 properties with approximately 49.7 million rentable square feet.

Previous wording

•Net income attributable to common stockholders increased by 1.3% to $58.6 million for the three months ended March 31, 2024, compared to the prior year.

Current wording

•Net income attributable to common stockholders increased by 26.5% to $138.4 million for the six months ended June 30, 2024, compared to the prior year.

Previous wording

•Core funds from operations (Core FFO)(1) attributable to common stockholders increased by 20.3% to $123.5 million for the three months ended March 31, 2024, compared to the prior year.

Current wording

•Core funds from operations (Core FFO)(1) attributable to common stockholders increased by 19.9% to $253.1 million for the six months ended June 30, 2024, compared to the prior year.

Previous wording

•Net operating income (NOI)(1) increased by 14.9% to $163.5 million for the three months ended March 31, 2024, compared to the prior year.

Current wording

•Net operating income (NOI)(1) increased by 18.0% to $344.6 million for the six months ended June 30, 2024, compared to the prior year.

Previous wording

•Total portfolio occupancy at March 31, 2024 was 92.8%.

Current wording

•Total portfolio occupancy at June 30, 2024 was 93.7%.

Previous wording

•Same Property Portfolio(2) average occupancy for the three months ended March 31, 2024 was 96.8% and ending occupancy at March 31, 2024 was 96.4%.

Current wording

•Same Property Portfolio(2) average occupancy for the six months ended June 30, 2024 was 97.0% and ending occupancy at June 30, 2024 was 97.3%.

Previous wording

•Executed a total of 114 new and renewal leases with a combined 3.2 million rentable square feet, with leasing spreads of 17.3% on a GAAP basis and 13.2% on a cash basis. Excluding one lease extension on a 1.1 million rentable square foot lease, leasing spreads were 53.0% on a GAAP basis and 33.6% on a cash basis.

Current wording

•Executed a total of 243 new and renewal leases with a combined 5.5 million rentable square feet, with leasing spreads of 35.3% on a GAAP basis and 26.3% on a cash basis. Excluding one lease extension executed in the first quarter of 2024 on a 1.1 million rentable square foot lease, leasing spreads were 61.7% on a GAAP basis and 42.7% on a cash basis.

Previous wording

•During the first quarter of 2024, we also completed construction of four other repositioning/redevelopment properties located at 500 Dupont Avenue, 11308-11350 Penrose Street, 4039 Calle Platino and 3071 Coronado Street. As of March 31, 2024 these four properties and two other properties located at 20851 Currier Road and 12752-12822 Monarch Street, were in the lease-up stage.

Current wording

•During the first quarter of 2024, we completed the construction of four repositioning/redevelopment properties located at 500 Dupont Avenue, 11308-11350 Penrose Street, 4039 Calle Platino and 3071 Coronado Street. During the second quarter of 2024, we completed the construction of two additional redevelopment properties located at 1901 Via Burton and 2390-2444 American Way. As of June 30, 2024 these six properties were in the lease-up stage.

Previous wording

•As of the date of this filing, we had approximately $837.3 million of forward net proceeds remaining for settlement prior to March 27, 2025, based on a weighted average forward sale price of $48.74 per share.

Current wording

•As of the date of this filing, we had approximately $752.5 million of forward net proceeds remaining for settlement prior to March 27, 2025, based on a weighted average forward sale price of $48.46 per share.

Previous wording

Tenant demand remains healthy within our portfolio, which is strategically located within prime infill Southern California industrial markets. The quality and intensity of tenant demand through the first quarter of 2024 is demonstrated through the Company’s strong leasing spreads and volume and retention rate (see “—Leasing Activity and Rental Rates” below). This tenant demand has been driven by a wide range of sectors, from consumer products, healthcare and medical products to aerospace, food, construction and logistics, as well as by an emerging electric vehicle industry, among other sectors. We also continue to observe a notable volume of ecommerce-oriented tenants securing space within our infill property locations driven in part by delivery demand associated with last-mile distribution and local omnichannel retail fulfillment which are driving discernible shifts in inventory-handling strategies among retailers and distributors. Our portfolio, which we believe represents prime locations with superior functionality within the largest last-mile logistics distribution market in the nation, is well-positioned to continue to serve our existing diverse tenant base and attract incremental ecommerce-oriented and traditional distribution demand over the long-term.

Current wording

Tenant demand remains healthy within our portfolio, which is strategically located within prime infill Southern California industrial markets. The quality and intensity of tenant demand through the second quarter of 2024 is demonstrated through the Company’s strong leasing spreads and volume and retention rate (see “—Leasing Activity and Rental Rates” below). This tenant demand has been driven by a wide range of sectors, from consumer products, healthcare and medical products to aerospace, food and beverage, construction and logistics, among other sectors. We also continue to observe a notable volume of ecommerce-oriented tenants securing space within our infill property locations driven in part by delivery demand associated with last-mile distribution and local omnichannel retail fulfillment which are driving discernible shifts in inventory-handling strategies among retailers and distributors. Our portfolio, which we believe represents prime locations with superior functionality within the largest last-mile logistics distribution market in the nation, is well-positioned to continue to serve our existing diverse tenant base and attract incremental ecommerce-oriented and traditional distribution demand over the long-term.

Previous wording

We believe our portfolio’s leasing performance during the first quarter of 2024 has generally outpaced that of the infill markets within which we operate, and, as discussed in more detail below, our target infill markets continue to operate at high levels of occupancy. We believe this performance has been driven by our highly entrepreneurial business model focused on acquiring and improving industrial property in superior locations so that our portfolio reflects a higher level of quality and functionality, on average, as compared to typical available product within the markets within which we operate. We believe that our portfolio, with last-mile infill locations and a smaller average tenant size versus other non-infill competitors, is well positioned to serve regional consumption and less susceptible to changes in global trade flows. We also believe the quality and entrepreneurial approach demonstrated by our team of real estate professionals actively managing our properties and our tenants enables the potential to outcompete within our markets that we believe are generally otherwise owned by more passive, less-focused real estate owners.

Current wording

We believe our portfolio’s leasing performance during the second quarter of 2024 has generally outpaced that of the infill markets within which we operate, and, as discussed in more detail below, our target infill markets continue to operate at high levels of occupancy. We believe this performance has been driven by our highly entrepreneurial business model focused on acquiring and improving industrial property in superior locations so that our portfolio reflects a higher level of quality and functionality, on average, as compared to typical available product within the markets within which we operate. We believe that our portfolio, with last-mile infill locations and a smaller average tenant size versus other non-infill competitors, is well positioned to serve regional consumption and less susceptible to changes in global trade flows. We also believe the quality and entrepreneurial approach demonstrated by our team of real estate professionals actively managing our properties and our tenants enables the potential to outcompete within our markets that we believe are generally otherwise owned by more passive, less-focused real estate owners.

Previous wording

In Los Angeles County, vacancy increased quarter-over-quarter and average asking lease rates decreased slightly quarter-over-quarter. Occupancy generally remains at high levels and new development is limited by a lack of land availability and an increase in land and development costs.

Current wording

In Los Angeles County, vacancy increased quarter-over-quarter and average asking lease rates increased slightly quarter-over-quarter. Occupancy generally remains at high levels and new development is limited by a lack of land availability and an increase in land and development costs.

Previous wording

In the Inland Empire West, which contains infill markets in which we operate, vacancy increased slightly quarter-over-quarter, primarily due to excess new construction supply in larger unit size ranges, and average taking lease rates in the market decreased quarter-over-quarter. We generally do not focus on properties located within the non-infill Inland Empire East sub-market where available land and the development and construction pipeline for new supply is substantial.

Current wording

In the Inland Empire West, which contains infill markets in which we operate, vacancy increased quarter-over-quarter, primarily due to excess new construction supply in larger unit size ranges, and average taking lease rates in the market decreased quarter-over-quarter. We generally do not focus on properties located within the non-infill Inland Empire East sub-market where available land and the development and construction pipeline for new supply is substantial.

Previous wording

In Ventura County, vacancy was flat quarter-over-quarter and average asking lease rates increased quarter-over-quarter.

Current wording

In Ventura County, vacancy increased quarter-over-quarter and average asking lease rates increased quarter-over-quarter.

Previous wording

As of March 31, 2024, 28 of our properties were under current repositioning or redevelopment and seven of our properties were in the lease-up stage. In addition, we have a pipeline of nine additional properties for which we anticipate beginning repositioning/redevelopment construction work between the second quarter of 2024 and the second quarter of 2025. The tables below set forth a summary of these properties, as well as the properties that were most recently stabilized in 2023 and 2024, as the timing of these stabilizations have a direct impact on our current and comparative results of operations. Furthermore, we estimate that over the next four years we have up to approximately 5.0 million rentable square feet of additional repositioning/redevelopment projects embedded in our portfolio that are not currently listed in the tables below. We consider a repositioning/redevelopment property to be stabilized upon the earlier of (i) reaching 90% occupancy or (ii) one year from the date construction work is completed.

Current wording

As of June 30, 2024, 28 of our properties were under current repositioning or redevelopment and six of our properties were in the lease-up stage. In addition, we have a pipeline of six additional properties for which we anticipate beginning repositioning/redevelopment construction work between the third quarter of 2024 and the second quarter of 2025. The tables below set forth a summary of these properties, as well as the properties that were most recently stabilized in 2023 and 2024, as the timing of these stabilizations have a direct impact on our current and comparative results of operations. Furthermore, we estimate that over the next four years we have up to approximately 5.0 million rentable square feet of additional repositioning/redevelopment projects embedded in our portfolio that are not currently listed in the tables below. We consider a repositioning/redevelopment property to be stabilized upon the earlier of (i) reaching 90% occupancy or (ii) one year from the date construction work is completed.

Previous wording

(3)As of March 31, 2024, 29120 Commerce Center Drive has been leased on a short-term basis through June 30, 2025. We are currently performing repositioning work around the short-term tenant.

Current wording

(4)As of June 30, 2024, 29120 Commerce Center Drive has been leased on a short-term basis through June 30, 2025. We are currently performing repositioning work around the short-term tenant.

Previous wording

(4)As of March 31, 2024, 17311 Nichols Lane has been leased and the tenant is expected to take occupancy in the third quarter of 2024 upon completion of the repositioning.

Current wording

(5)As of June 30, 2024, 17311 Nichols Lane has been leased and the tenant is expected to take occupancy in the third quarter of 2024 upon completion of the repositioning.

Previous wording

(5)As of March 31, 2024, 17000 Kingsview Avenue has been partially leased on a short-term basis through July 31, 2024. We are currently performing repositioning work around the short-term tenant.

Current wording

(7)As of June 30, 2024, 17000 Kingsview Avenue has been partially leased on a short-term basis through July 31, 2024. We are currently performing repositioning work around the short-term tenant.

Previous wording

(6)As of March 31, 2024, 29125 Avenue Paine has been leased on a short-term basis through June 30, 2025. We are currently performing repositioning work around the short-term tenant.

Current wording

(8)As of June 30, 2024, 29125 Avenue Paine has been leased on a short-term basis through June 30, 2025. We are currently performing repositioning work around the short-term tenant.

Previous wording

(9)Represents the estimated rentable square footage of the project upon completion of redevelopment.

Current wording

(11)Represents the estimated rentable square footage of the project upon completion of redevelopment.

Previous wording

(10)As of March 31, 2024, 3233 Mission Oaks Boulevard comprises 409,217 rentable square feet that are currently occupied and not being redeveloped. We are constructing one new building comprising 117,358 rentable square feet. We are also performing site work across the entire project. At completion, the total project will contain 526,575 rentable square feet.

Current wording

(12)As of June 30, 2024, 3233 Mission Oaks Boulevard comprises 409,217 rentable square feet that are currently occupied and not being redeveloped. We are constructing one new building comprising 117,358 rentable square feet. We are also performing site work across the entire project. At completion, the total project will contain 526,575 rentable square feet.

Previous wording

(11)Rancho Pacifica Building 5 is located at 2370-2398 Pacifica Place and comprises one building totaling 51,594 rentable square feet, out of six buildings at our Rancho Pacifica Park property, which has a total of 1,111,885 rentable square feet. We demolished the existing building and are constructing a new building comprising approximately 76,500 rentable square feet in its place.

Current wording

(14)Rancho Pacifica Building 5 is located at 2370-2398 Pacifica Place and comprises one building totaling 51,594 rentable square feet, out of six buildings at our Rancho Pacifica Park property, which has a total of 1,111,885 rentable square feet. We demolished the existing building and are constructing a new building comprising approximately 76,500 rentable square feet in its place.

Previous wording

(13)We consider a repositioning property to be stabilized upon the earlier of (i) reaching 90% occupancy or (ii) one year from the date construction work is completed.

Current wording

(16)We consider a repositioning property to be stabilized upon the earlier of (i) reaching 90% occupancy or (ii) one year from the date construction work is completed.

Previous wording

(14)As of March 31, 2024, 8210-8240 Haskell Avenue reached one year from the date of completion of repositioning work.

Current wording

(17)As of March 31, 2024, 8210-8240 Haskell Avenue reached one year from the date of completion of repositioning work. On May 17, 2024, we sold the vacant building located at 8210 Haskell Avenue (26,229 square feet). The remaining two buildings located at 8230-8240 Haskell Avenue (26,705 square feet) are 100% occupied as of June 30, 2024.

Previous wording

(8)As of March 31, 2024, 444 Quay has been leased and the tenant is expected to take occupancy in the second quarter of 2024.

Current wording

(18)As of June 30, 2024, 20851 Currier Road reached one year from the date of completion of repositioning work. The property has been leased and the tenant is expected to take occupancy in the third quarter of 2024.

Previous wording

(12)As of March 31, 2024, 12752-12822 Monarch Street comprises 275,189 rentable square feet. The project includes 111,325 rentable square feet with tenants in-place that were not redeveloped. We repositioned 65,968 rentable square feet, demolished 99,925 rentable square feet and constructed a new 97,896 rentable square foot building in its place.

Current wording

(19)12752-12822 Monarch Street comprises 275,189 rentable square feet. The project includes 111,325 rentable square feet with tenants in-place that were not redeveloped. We repositioned 65,968 rentable square feet, demolished 99,925 rentable square feet and constructed a new 97,896 rentable square foot building in its place.

Previous wording

Properties that are nonoperational as a result of repositioning or redevelopment activity may qualify for varying levels of interest, insurance and real estate tax capitalization during the redevelopment and construction period. An increase in our repositioning and redevelopment activities resulting from value-add acquisitions could cause an increase in the asset balances qualifying for interest, insurance and tax capitalization in future periods. We capitalized $7.9 million of interest expense and $2.4 million of insurance and real estate tax expenses during the three months ended March 31, 2024, respectively, related to our repositioning and redevelopment projects.

Current wording

Properties that are nonoperational as a result of repositioning or redevelopment activity may qualify for varying levels of interest, insurance and real estate tax capitalization during the redevelopment and construction period. An increase in our repositioning and redevelopment activities resulting from value-add acquisitions could cause an increase in the asset balances qualifying for interest, insurance and tax capitalization in future periods. We capitalized $7.4 million and $15.3 million of interest expense and $2.0 million and $4.4 million of insurance and real estate tax expenses during the three and six months ended June 30, 2024, respectively, related to our repositioning and redevelopment projects.

Previous wording

As of March 31, 2024, our consolidated portfolio, inclusive of space in repositioning as described in the subsequent paragraph, was approximately 92.8% occupied, while our stabilized consolidated portfolio exclusive of such space was approximately 96.9% occupied. We believe the opportunity to increase occupancy at our properties will be an important driver of future revenue growth. An opportunity to drive this growth will derive from the completion and lease-up of repositioning and redevelopment projects that are currently under construction.

Current wording

As of June 30, 2024, our consolidated portfolio, inclusive of space in repositioning as described in the subsequent paragraph, was approximately 93.7% occupied, while our stabilized consolidated portfolio exclusive of such space was approximately 97.9% occupied. We believe the opportunity to increase occupancy at our properties will be an important driver of future revenue growth. An opportunity to drive this growth will derive from the completion and lease-up of repositioning and redevelopment projects that are currently under construction.

Previous wording

As summarized in the tables under “—Acquisitions and Value-Add Repositioning and Redevelopment of Properties” above, as of March 31, 2024, 28 of our properties with a combined 3.1 million of estimated rentable square feet at completion are under current repositioning or redevelopment, seven properties with a combined 0.8 million of rentable square feet are in lease-up, and we have a near-term pipeline of nine repositioning and redevelopment projects with a combined 0.7 million of estimated rentable square feet at completion. Additionally, we have 0.5 million rentable square feet of other repositioning projects. Vacant space at these properties is concentrated in our Los Angeles, Orange County and San Bernardino markets and represents 4.3% of our total consolidated portfolio square footage as of March 31, 2024. Including vacant space at these properties, our weighted average occupancy rate as of March 31, 2024 in our Los Angeles, Orange County and San Bernardino markets was 93.8%, 89.4% and 90.9%, respectively. Excluding vacant space at these properties, our weighted average occupancy rate as of March 31, 2024, in these markets was 97.8%, 96.8% and 95.5%, respectively. We believe that an important portion of our long-term future growth will come from the completion of these projects currently under or scheduled for repositioning/redevelopment, as well as through the identification or acquisition of new opportunities for repositioning and redevelopment, whether in our existing portfolio or through new investments, which may vary from period to period subject to market conditions.

Current wording

As summarized in the tables under “—Acquisitions and Value-Add Repositioning and Redevelopment of Properties” above, as of June 30, 2024, 28 of our properties with a combined 2.9 million of estimated rentable square feet at completion are under current repositioning or redevelopment, six properties with a combined 0.8 million of rentable square feet are in lease-up, and we have a near-term pipeline of six repositioning and redevelopment projects with a combined 0.6 million of estimated rentable square feet at completion. Additionally, we have 0.2 million rentable square feet of other repositioning projects. Vacant space at these properties is concentrated in our Los Angeles, Orange County and San Bernardino markets and represents 4.2% of our total consolidated portfolio square footage as of June 30, 2024. Including vacant space at these properties, our weighted average occupancy rate as of June 30, 2024 in our Los Angeles, Orange County and San Bernardino markets was 94.9%, 88.0% and 94.8%, respectively. Excluding vacant space at these properties, our weighted average occupancy rate as of June 30, 2024, in these markets was 98.5%, 99.0% and 98.2%, respectively. We believe that an important portion of our long-term future growth will come from the completion of these projects currently under or scheduled for repositioning/redevelopment, as well as through the identification or acquisition of new opportunities for repositioning and redevelopment, whether in our existing portfolio or through new investments, which may vary from period to period subject to market conditions.

Previous wording

The following tables set forth our leasing activity for new and renewal leases for the three months ended March 31, 2024:

Current wording

The following tables set forth our leasing activity for new and renewal leases for the three and six months ended June 30, 2024:

Previous wording

(4)The GAAP and cash re-leasing spreads for new leases executed during the three months ended March 31, 2024, exclude 19 leases aggregating 605,362 rentable square feet for which there was no comparable lease data. Of these 19 excluded leases, nine leases for 265,696 rentable square feet were recently repositioned/redeveloped space. Comparable leases generally exclude: (i) space that has never been occupied under our ownership, (ii) repositioned/redeveloped space, including space in pre-development/entitlement process, (iii) space that has been vacant for over one year or (iv) space with lease terms shorter than six months.

Current wording

(4)The GAAP and cash re-leasing spreads for new leases executed during the six months ended June 30, 2024, exclude 42 leases aggregating 1,230,124 rentable square feet for which there was no comparable lease data. Of these 42 excluded leases, 19 leases for 676,558 rentable square feet were recently repositioned/redeveloped space. Comparable leases generally exclude: (i) space that has never been occupied under our ownership, (ii) repositioned/redeveloped space, including space in pre-development/entitlement process, (iii) space that has been vacant for over one year or (iv) space with lease terms shorter than six months.

Previous wording

(5)The GAAP and cash re-leasing rent spreads for renewal leases executed during the three months ended March 31, 2024, exclude four leases aggregating 593,951 rentable square feet for which there was no comparable lease data. Comparable leases generally exclude space with lease terms shorter than six months or space in pre-development/entitlement process.

Current wording

(5)The GAAP and cash re-leasing rent spreads for renewal leases executed during the six months ended June 30, 2024, exclude eight leases aggregating 772,015 rentable square feet for which there was no comparable lease data. Comparable leases generally exclude space with lease terms shorter than six months or space in pre-development/entitlement process.

Previous wording

(6)Includes leases totaling 732,083 rentable square feet that expired during the three months ended March 31, 2024, for which the space has been or will be placed into repositioning (including “other repositioning projects”) or redevelopment.

Current wording

(6)Includes leases totaling 907,616 rentable square feet that expired during the six months ended June 30, 2024, for which the space has been or will be placed into repositioning (including “other repositioning projects”) or redevelopment.

Previous wording

(8)Reflects our renewal leasing activity, weighted average lease term, effective rent per square foot and leasing spreads excluding a 1.1 million square foot lease extension with Tireco, Inc. at 10545 Production Avenue. The original Tireco, Inc. lease expiration date was January 2025 and included a fixed rate renewal option. During the three months ended March 31, 2024, the lease was extended through January 2027 at the current in-place rent at the time of execution and includes a 4% contractual rent increase in 2026 and two months of rent abatement. This lease extension was excluded for comparability purposes, in order to allow investors to make investment decisions based on our quarterly leasing statistics as compared to our prior periods.

Current wording

(8)Reflects our renewal leasing activity, weighted average lease term, effective rent per square foot and leasing spreads for the six months ended June 30, 2024, excluding a 1.1 million square foot lease extension with Tireco, Inc. at 10545 Production Avenue. The original Tireco, Inc. lease expiration date was January 2025 and included a fixed rate renewal option. In March 2024, the lease was extended through January 2027 at the current in-place rent at the time of execution and includes a 4% contractual rent increase in 2026 and two months of rent abatement. This lease extension was excluded for comparability purposes, in order to allow investors to make investment decisions based on our quarterly leasing statistics as compared to our prior periods.

Previous wording

Our leasing activity is impacted both by our repositioning and redevelopment efforts, as well as by market conditions. While we reposition a property, its space may become unavailable for leasing until completion of our repositioning efforts. As of March 31, 2024, we have 28 current repositioning/redevelopment projects with estimated construction completion periods ranging from the second quarter of 2024 through the fourth quarter of 2025, and an additional nine repositioning and redevelopment projects in our pipeline with estimated construction completion dates through the third quarter of 2026. We expect these properties to have positive impacts on our leasing activity and revenue generation as we complete our value-add plans and place these properties in service.

Current wording

Our leasing activity is impacted both by our repositioning and redevelopment efforts, as well as by market conditions. While we reposition a property, its space may become unavailable for leasing until completion of our repositioning efforts. As of June 30, 2024, we have 28 current repositioning/redevelopment projects with estimated construction completion periods ranging from the third quarter of 2024 through the fourth quarter of 2025, and an additional six repositioning and redevelopment projects in our pipeline with estimated construction completion dates through the third quarter of 2026. We expect these properties to have positive impacts on our leasing activity and revenue generation as we complete our value-add plans and place these properties in service.

Previous wording

(5)Represents vacant space (not under repositioning/redevelopment) as of March 31, 2024. Includes leases aggregating 425,142 rentable square feet that had been signed but had not yet commenced as of March 31, 2024.

Current wording

(5)Represents vacant space (not under repositioning/redevelopment) as of June 30, 2024. Includes leases aggregating 66,236 rentable square feet that had been signed but had not yet commenced as of June 30, 2024.

Previous wording

As of March 31, 2024, in addition to 1.5 million rentable square feet of currently available space in our portfolio and approximately 2.1 million rentable square feet of vacant space under current repositioning, leases representing 9.7% and 14.4% of the aggregate rentable square footage of our portfolio are scheduled to expire during the remainder of 2024 and 2025, respectively. During the three months ended March 31, 2024, we renewed 64 leases for 2.4 million rentable square feet, resulting in a retention rate of 82.2%. Our retention rate during the period was impacted by the combination of low vacancy and healthy demand in many of our key markets. During the three months ended March 31, 2024, new and renewal leases had a weighted average term of 4.2 and 4.1 years (excluding the 1.1 million square foot lease extension noted above under “—Leasing Activity and Rental Rates”), and we expect future new and renewal leases to have similar terms.

Current wording

As of June 30, 2024, in addition to 1.0 million rentable square feet of currently available space in our portfolio and approximately 2.1 million rentable square feet of vacant space under current repositioning, leases representing 6.4% and 14.3% of the aggregate rentable square footage of our portfolio are scheduled to expire during the remainder of 2024 and 2025, respectively. During the six months ended June 30, 2024, we renewed 133 leases for 3.6 million rentable square feet, resulting in a retention rate of 76.8%. During the six months ended June 30, 2024, new and renewal leases had a weighted average term of 4.7 and 4.3 years (excluding the 1.1 million square foot lease extension noted above under “—Leasing Activity and Rental Rates”), and we expect future new and renewal leases to have similar terms.

Previous wording

The leases scheduled to expire during the remainder of 2024 and 2025 represent approximately 9.4% and 14.0%, respectively, of the total annualized base rent for our portfolio as of March 31, 2024. We estimate that, on a weighted average basis, in-place rents of leases scheduled to expire during the remainder of 2024 and 2025 are currently below current market asking rates, although individual units or properties within any particular submarket may currently be leased either above, below, or at the current market asking rates within that submarket.

Current wording

The leases scheduled to expire during the remainder of 2024 and 2025 represent approximately 6.0% and 14.1%, respectively, of the total annualized base rent for our portfolio as of June 30, 2024. We estimate that, on a weighted average basis, in-place rents of leases scheduled to expire during the remainder of 2024 and 2025 are currently below current market asking rates, although individual units or properties within any particular submarket may currently be leased either above, below, or at the current market asking rates within that submarket.

Previous wording

As of March 31, 2024, our Operating Partnership indirectly and wholly owns Rexford Industrial Realty and Management, Inc., which we refer to as our services company. We have elected, together with our services company, to treat our services company as a taxable REIT subsidiary for federal income tax purposes. A taxable REIT subsidiary generally may provide non-customary and other services to our tenants and engage in activities that we or our subsidiaries (other than a taxable REIT subsidiary) may not engage in directly without adversely affecting our qualification as a REIT, provided a taxable REIT subsidiary may not operate or manage a lodging facility or health care facility or provide rights to any brand name under which any lodging facility or health care facility is operated. We may form additional taxable REIT subsidiaries in the future, and our Operating Partnership may contribute some or all of its interests in certain wholly owned subsidiaries or their assets to our services company. Any income earned by our taxable REIT subsidiaries will not be included in our taxable income for purposes of the 75% or 95% gross income tests, except to the extent such income is distributed to us as a dividend, in which case such dividend income will qualify under the 95%, but not the 75%, gross income test. Because a taxable REIT subsidiary is subject to federal income tax, and state and local income tax (where applicable) as a regular corporation, the income earned by our taxable REIT subsidiaries generally will be subject to an additional level of tax as compared to the income earned by our other subsidiaries. Our taxable REIT subsidiary is a C-corporation subject to federal and state income tax. However, it has a cumulative unrecognized net operation loss carryforward and therefore there is no income tax provision for the three months ended March 31, 2024 and 2023. Additionally, the taxable REIT subsidiary had minimal activity during these periods.

Current wording

As of June 30, 2024, our Operating Partnership indirectly and wholly owns Rexford Industrial Realty and Management, Inc., which we refer to as our services company. We have elected, together with our services company, to treat our services company as a taxable REIT subsidiary for federal income tax purposes. A taxable REIT subsidiary generally may provide non-customary and other services to our tenants and engage in activities that we or our subsidiaries (other than a taxable REIT subsidiary) may not engage in directly without adversely affecting our qualification as a REIT, provided a taxable REIT subsidiary may not operate or manage a lodging facility or health care facility or provide rights to any brand name under which any lodging facility or health care facility is operated. We may form additional taxable REIT subsidiaries in the future, and our Operating Partnership may contribute some or all of its interests in certain wholly owned subsidiaries or their assets to our services company. Any income earned by our taxable REIT subsidiaries will not be included in our taxable income for purposes of the 75% or 95% gross income tests, except to the extent such income is distributed to us as a dividend, in which case such dividend income will qualify under the 95%, but not the 75%, gross income test. Because a taxable REIT subsidiary is subject to federal income tax, and state and local income tax (where applicable) as a regular corporation, the income earned by our taxable REIT subsidiaries generally will be subject to an additional level of tax as compared to the income earned by our other subsidiaries. Our taxable REIT subsidiary is a C-corporation subject to federal and state income tax. However, it has a cumulative unrecognized net operation loss carryforward and therefore there is no income tax provision for the six months ended June 30, 2024 and 2023. Additionally, the taxable REIT subsidiary had minimal activity during these periods.