Rexford Industrial Realty Inc

Previous wording

•risks associated with redevelopment and repositioning activities, including the possibility that costs may exceed original estimates, the time to complete a project or to lease up the completed project may be greater than originally anticipated or changes in entitlements or laws may impact or prevent execution of intended projects;

Current wording

•risks associated with redevelopment and repositioning activities, including the possibility that costs may exceed original estimates, the time to complete a project or to lease up the completed project may be greater than originally anticipated or changes in entitlements or laws may impact or prevent execution of intended projects, including without limitation, newly enacted California Assembly Bill 98;

Previous wording

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

Current wording

As of September 30, 2024, our consolidated portfolio consisted of 423 properties with approximately 50.1 million rentable square feet.

Previous 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.

Current wording

•Net income attributable to common stockholders increased by 22.7% to $203.5 million for the nine months ended September 30, 2024, compared to the prior year.

Previous 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.

Current wording

•Core funds from operations (Core FFO)(1) attributable to common stockholders increased by 17.5% to $383.1 million for the nine months ended September 30, 2024, compared to the prior year.

Previous 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.

Current wording

•Net operating income (NOI)(1) increased by 17.8% to $528.1 million for the nine months ended September 30, 2024, compared to the prior year.

Previous wording

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

Current wording

•Total portfolio occupancy at September 30, 2024 was 93.0%.

Previous 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%.

Current wording

•Same Property Portfolio(2) average occupancy for the nine months ended September 30, 2024 was 96.9% and ending occupancy at September 30, 2024 was 96.7%.

Previous 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.

Current wording

•Executed a total of 351 new and renewal leases with a combined 7.1 million rentable square feet, with leasing spreads of 36.1% on a GAAP basis and 26.4% 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 55.3% on a GAAP basis and 38.2% on a cash basis.

Previous wording

•Subsequent to June 30, 2024, through the date of this filing, we partially settled the above mentioned forward equity sale agreement by issuing 1,650,916 shares of common stock for net proceeds of $80.0 million.

Current wording

•Subsequent to September 30, 2024, through the date of this filing, we partially settled the forward equity sale agreement related to our March 2024 underwritten public offering by issuing 2,884,380 shares of common stock for net proceeds of $140.0 million.

Previous 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.

Current wording

•As of the date of this filing, we had approximately $614.2 million of forward net proceeds remaining for settlement prior to March 27, 2025, based on a weighted average forward sale price of $48.58 per share.

Previous wording

The infill Southern California industrial real estate sector continues to exhibit strong long-term fundamentals. These high-barrier infill markets are characterized by a relative scarcity of highly functional product, coupled with the limited ability to introduce new supply due to high land and redevelopment costs and a dearth of developable land in markets experiencing a net reduction in supply as, over time, more industrial property is converted to non-industrial uses than can be delivered. Meanwhile, despite the post-pandemic normalization of demand, underlying tenant demand within our infill target markets continues to be healthy, which is illustrated by strong renewal leasing activity, a dynamic regional economy, continued ecommerce activity and delivery volumes, as well as further compression of delivery time-frames to consumers and to businesses, increasing the significance of last-mile facilities for timely fulfillment. While we believe that our infill Southern California industrial property markets have demonstrated a high degree of resiliency related to occupancy and rental rates in the context of key market drivers over the last several years, we expect some ongoing volatility within our markets through the near term, principally driven by continued inflation and heightened uncertainty in the interest rate environment exacerbated by the current global geopolitical unrest. Market rent growth has normalized and decreased in the quarter in our infill Southern California markets, after increasing by approximately 80%, on average, through the pandemic.

Current wording

The infill Southern California industrial real estate sector continues to exhibit strong long-term fundamentals. These high-barrier infill markets are characterized by a relative scarcity of highly functional product, coupled with the limited ability to introduce new supply due to high land and redevelopment costs and a dearth of developable land in markets experiencing a net reduction in supply as, over time, more industrial property is converted to non-industrial uses than can be delivered. Furthermore, despite some recent moderation, tenant demand within our infill target markets continues to be healthy, illustrated by strong leasing fundamentals as well as the dynamic Southern California regional economy which continues to exhibit growth in consumer spending with approximately $26 billion of incremental spending forecasted for 2024, according to Oxford Economics. While we believe that our infill Southern California industrial property markets have demonstrated a relatively high degree of resiliency related to occupancy and rental rates in the context of key market drivers over the last several years, we expect some ongoing volatility within our markets through the near term, principally driven by general macroeconomic and political uncertainty including an uncertain interest rate environment and global geopolitical unrest. Market rent growth continues to normalize, with rents decreasing in the current quarter within our infill Southern California markets, after increasing by approximately 80%, on average, through the pandemic. Also, during the quarter, California Governor Gavin Newsom signed Assembly Bill 98 (“AB 98”), which enacts statewide industrial development standards effective as of January 1, 2026. As is the case with local zoning requirements, the development standards of AB 98 will be considered in our investment decisions and construction projects. AB 98’s highest development standards focus on the development of larger buildings of 250,000 square feet or more where rezoning is required, and therefore we believe these new standards will have a minimal impact to our overall portfolio and business strategy given our primary focus on the repositioning and refurbishment of industrial buildings within the infill markets.

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 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.

Current wording

The quality and intensity of tenant demand through the third quarter of 2024 is demonstrated through the Company’s strong leasing spreads, as well as its leasing 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 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.

Current wording

We believe our portfolio’s leasing performance during the third quarter of 2024 has generally outpaced that of the infill markets within which we operate. 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 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.

Current wording

In Los Angeles County, vacancy increased quarter-over-quarter and average asking lease rates declined quarter-over-quarter. Occupancy generally remains at healthy 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 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 decreased quarter-over-quarter 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 San Diego, vacancy increased quarter-over-quarter and average asking lease rates increased quarter-over-quarter.

Current wording

In San Diego, vacancy increased quarter-over-quarter and average asking lease rates declined slightly quarter-over-quarter.

Previous wording

In Ventura County, vacancy increased 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 declined quarter-over-quarter.

Previous 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.

Current wording

As of September 30, 2024, 24 of our properties were under current repositioning or redevelopment and nine of our properties were in the lease-up stage. In addition, we have a pipeline of 15 additional properties for which we anticipate beginning repositioning/redevelopment construction work between the fourth quarter of 2024 and the fourth 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. 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)14434-14527 San Pedro Street is a low coverage site with 58,094 rentable square feet of buildings on 335,905 square feet, or 7.7 acres, of land.

Current wording

(3)14434-14527 San Pedro Street is a low coverage site with 61,398 rentable square feet of buildings on 335,905 square feet, or 7.7 acres, of land.

Previous wording

(6)As of June 30, 2024, 12907 Imperial Highway has been leased and the tenant has taken partial occupancy. The tenant is expected to take full occupancy in the fourth quarter of 2024 following completion of the repositioning.

Current wording

(5)As of September 30, 2024, 12907 Imperial Highway has been leased and the tenant has taken partial occupancy. The tenant is expected to take full occupancy in the fourth quarter of 2024 following completion of the repositioning.

Previous 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.

Current wording

(6)As of September 30, 2024, 17000 Kingsview Avenue has been partially leased on a short-term basis with the tenant now expected to vacate on December 31, 2024. We are currently performing repositioning work around the short-term tenant.

Previous 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.

Current wording

(7)As of September 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)Harcourt & Susana is a low coverage site with 34,000 rentable square feet of buildings on 239,364 square feet, or 5.5 acres, of land.

Current wording

(8)Harcourt & Susana is a low coverage site with 33,461 rentable square feet of buildings on 239,364 square feet, or 5.5 acres, of land.

Previous 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.

Current wording

(9)As of September 30, 2024, 500 Dupont Avenue has been leased. The tenant is expected to take occupancy in the fourth quarter of 2024.

Previous 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.

Current wording

(12)As of September 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 116,852 rentable square feet. We are also performing site work across the entire project. At completion, the total project will contain 526,069 rentable square feet.

Previous wording

(13)17907-18001 Figueroa Street will be a low coverage site with 76,722 rentable square feet of buildings on 221,055 square feet, or 5.1 acres, of land.

Current wording

(13)17907-18001 Figueroa Street will be a low coverage site with 76,468 rentable square feet of buildings on 221,055 square feet, or 5.1 acres, of land.

Previous 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.

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 76,553 rentable square feet in its place.

Previous 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.

Current wording

(17)As of June 30, 2024, 20851 Currier Road and 12752-12822 Monarch Street reached one year from the date of completion of repositioning/redevelopment work. During the third quarter of 2024, these projects rent commenced and reached 100% and 93% occupancy, respectively.

Previous 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.

Current wording

(18)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 $7.4 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.

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 $8.6 million and $23.9 million of interest expense and $2.1 million and $6.5 million of insurance and real estate tax expenses during the three and nine months ended September 30, 2024, respectively, related to our repositioning and redevelopment projects.

Previous wording

Continued inflationary and supply chain pressures have led to increased construction materials and labor costs, which when combined with longer lead times for governmental approvals and entitlements, have led to an overall increase in budgeted and actual construction costs as well as delays in starting and completing certain of our redevelopment projects. While low vacancy in our markets and continued rent growth (see “—Leasing Activity and Rental Rates” below) over the last several years has helped to mitigate some of the impact of rising construction costs and project delays, additional increases in costs, further delays or declining market rents could result in a lower expected yield on our redevelopment projects, which could negatively impact our future earnings.

Current wording

Recent inflationary and supply chain pressures have led to increased construction materials and labor costs, which when combined with longer lead times for governmental approvals and entitlements, have led to an overall increase in budgeted and actual construction costs as well as delays in starting and completing certain of our redevelopment projects. While rent growth (see “—Leasing Activity and Rental Rates” below) over the last several years has helped to mitigate some of the impact of rising construction costs and project delays, additional increases in costs, further delays or declining market rents could result in a lower expected yield on our redevelopment projects, which could negatively impact our future earnings.

Previous 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.

Current wording

As of September 30, 2024, our consolidated portfolio, inclusive of space in repositioning as described in the subsequent paragraph, was approximately 93.0% occupied, while our stabilized consolidated portfolio exclusive of such space was approximately 97.6% 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 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.

Current wording

As summarized in the tables under “—Acquisitions and Value-Add Repositioning and Redevelopment of Properties” above, as of September 30, 2024, 24 of our properties with a combined 2.5 million of estimated rentable square feet at completion are under current repositioning or redevelopment, nine properties with a combined 1.0 million of rentable square feet are in lease-up, and we have a near-term pipeline of 15 repositioning and redevelopment projects with a combined 1.7 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 4.7% of our total consolidated portfolio square footage as of September 30, 2024. Including vacant space at these properties, our weighted average occupancy rate as of September 30, 2024 in our Los Angeles, Orange County and San Bernardino markets was 93.6%, 90.6% and 93.9%, respectively. Excluding vacant space at these properties, our weighted average occupancy rate as of September 30, 2024, in these markets was 98.6%, 99.0% and 97.6%, 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 occupancy rate of properties not undergoing repositioning is affected by regional and local economic conditions in our Southern California infill markets. Although there has been a post-COVID normalization of market vacancy over the past year, the Los Angeles, Orange County, San Bernardino and San Diego markets are generally experiencing healthy tenant demand and low product availability. Accordingly, our properties in these markets have generally exhibited a similar trend. Although we cannot predict how our markets may perform in future periods, we believe that general market conditions will remain healthy through the remainder of 2024, and the long-term opportunity to increase occupancy and rental rates at our properties will be an important driver of future revenue growth.

Current wording

The occupancy rate of properties not undergoing repositioning is affected by regional and local economic conditions in our Southern California infill markets. Although there has been a post-COVID normalization of market rates and vacancy over the past year, the Los Angeles, Orange County, San Bernardino and San Diego markets are well-positioned for the long-term due to fundamental demand drivers and barriers for new supply. Although we cannot predict how our markets may perform in future periods, we believe that general market conditions will continue to offer the long-term opportunity to increase occupancy and rental rates at our properties which will be an important driver of future revenue growth.

Previous wording

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

Current wording

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

Previous 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.

Current wording

(4)The GAAP and cash re-leasing spreads for new leases executed during the nine months ended September 30, 2024, exclude 62 leases aggregating 1,856,703 rentable square feet for which there was no comparable lease data. Of these 62 excluded leases, 25 leases for 1,111,401 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 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.

Current wording

(5)The GAAP and cash re-leasing rent spreads for renewal leases executed during the nine months ended September 30, 2024, exclude nine leases aggregating 847,339 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 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.

Current wording

(6)Includes leases totaling 1,384,437 rentable square feet that expired during the nine months ended September 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 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.

Current wording

(8)Reflects our renewal leasing activity, weighted average lease term, effective rent per square foot and leasing spreads for the nine months ended September 30, 2024, excluding a 1.1 million square foot lease extension with Tireco, Inc. at 10545 Production Avenue during the first quarter of 2024. 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 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.

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 September 30, 2024, we have 24 current repositioning/redevelopment projects with estimated construction completion periods ranging from the fourth quarter of 2024 through the fourth quarter of 2025, and an additional 15 repositioning and redevelopment projects in our pipeline with estimated construction completion dates through the second quarter of 2027. 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.