Rexford Industrial Realty, Inc.
For the period ended Dec 31, 2025. Filed Feb 11, 2026.
View on SEC.govAbout this filing
A company's yearly report to the SEC, with audited financial statements. It is the fullest account a company gives of its business, its finances and the risks it sees.
FY2025 · Filed Feb 11, 2026
REXR$37.80-0.9%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-K
Period ended 2024-12-31; filed 2025-02-10.
0001571283-25-000006
Item 7. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-K
Period ended 2025-12-31; filed 2026-02-11.
0001571283-26-000006
Item 7. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 258 previous paragraphs and 272 current paragraphs.
117 unchanged; 103 reworded; 48 added; 35 removed; 3 previous and 4 current paragraphs rearranged.
Tables are not compared: 16 previous and 16 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (48)
Current report
Management Update
Current report
In November 2025, the Company announced that Laura Clark, Chief Operating Officer, will assume the role of Chief Executive Officer effective April 1, 2026, as part of the Company’s leadership succession plan. Ms. Clark was appointed to the Board of Directors in November 2025 and will succeed Co‑Chief Executive Officers Howard Schwimmer and Michael Frankel, who will depart from their roles effective March 31, 2026. Mr. Schwimmer and Mr. Frankel will continue to serve as members of the Board of Directors until their terms expire at the Company’s 2026 Annual Meeting of Stockholders. Management does not expect the leadership transition to disrupt the Company’s operations.
Current report
Following the November 2025 announcement, the Company began certain operating and capital initiatives, including changes to capital deployment priorities and a reduction in development exposure as part of its evaluation of potential property dispositions. In connection with these initiatives and the leadership transition, the Company incurred certain costs and non‑cash charges during 2025. These amounts are reflected in the Company’s 2025 results and have been considered in its outlook for 2026.
Current report
•We did not complete any property acquisitions during 2025.
Current report
Repositioning & Development
Current report
◦During 2025, we stabilized 21 repositioning and development properties totaling 2,225,865 rentable square feet, with projects delivered throughout the year across our portfolio.
Current report
◦As of December 31, 2025, our development project located at 12118 Bloomfield Avenue (107,045 rentable square feet) was 100% leased and is expected to stabilize in mid-2026 upon lease commencement. Excluding this property, as of December 31, 2025, we had 13 additional repositioning and development properties totaling 1,354,385 rentable square feet in the lease-up stage.
Current report
•During the second half of 2025, we repurchased 6,327,283 shares of our common stock under our stock repurchase programs at a weighted average price of $39.51 per share for a total of $250.1 million, including commissions.
Current report
•On May 30, 2025, we amended our senior unsecured credit agreement to, among other changes, increase the borrowing capacity under our unsecured revolving credit facility from $1.0 billion to $1.25 billion, extend the maturity date of the unsecured revolving credit facility from May 26, 2026 to May 30, 2029 (with two extension options of six months each), extend the maturity date of the $400.0 million unsecured term loan facility from July 18, 2025 to May 30, 2030, and lower the interest rate by eliminating the 0.10% SOFR adjustment that previously applied to both the unsecured revolving credit facility and the $400.0 million unsecured term loan facility.
Current report
•On November 21, 2025, we further amended our senior unsecured credit agreement to eliminate the 0.10% SOFR adjustment applicable to our $300.0 million unsecured term loan facility.
Current report
•On June 30, 2025, we executed three interest rate swaps with an aggregate notional value of $400.0 million to fix daily SOFR related to our $400.0 million unsecured term loan facility at a rate of 3.41375%, commencing on July 1, 2025 through May 30, 2030. These swaps take the place of the swaps that were previously in place from April 3, 2023 through June 30, 2025, which fixed daily SOFR at 3.97231%.
Current report
•On August 6, 2025, we paid in full the outstanding principal balance on the $100 million unsecured senior notes.
Current report
•On September 2, 2025, we amended our $60.0 million term loan facility to, among other changes, add two additional one-year extension options. As of December 31, 2025, we have three remaining one-year extension options available, subject to certain terms and conditions.
Current report
•Subsequent to December 31, 2025, we certified that the sustainability performance targets associated with our unsecured credit agreement were met for 2025, resulting in a reduction of the applicable margin and applicable credit facility fee by 0.040% and 0.01%, respectively.
Current report
Leasing activity across our portfolio was steady in 2025, with positive absorption for the year, when excluding properties placed into repositioning or development, driven in part by leasing at our repositioning and development projects. Activity at these projects increased in the second half of 2025 compared to the first half. However, we recognize that heightened macroeconomic and tariff uncertainty continues to weigh on tenant decision-making and may influence tenant demand going forward.
Current report
Acquisitions and Value-Add Repositioning and Development of Properties
Current report
The Company’s growth strategy remains centered on creating long‑term, per‑share value through disciplined capital allocation, targeted industrial investment within infill Southern California, and the execution of value‑add initiatives across our industrial portfolio. While we did not complete any acquisitions during the current year, our long‑term strategy continues to prioritize opportunities that demonstrate the potential for accretion to Core FFO and net asset value per share that will be evaluated through rigorous underwriting criteria reflecting current market conditions and our cost of capital. We will continue to evaluate and execute upon the repositioning and improvement of properties already within our portfolio to enhance functionality, marketability, future cash‑flow growth and drive value creation that meet our strengthened risk-adjusted return thresholds.
Current report
Consistent with our refined capital‑allocation strategy communicated in November 2025, the Company is placing heightened emphasis on maximizing risk‑adjusted returns through a programmatic disposition strategy, recycling capital into higher‑return repositioning projects within our existing portfolio, share repurchases, and selective development and acquisition opportunities aligned with rigorous underwriting standards. These refinements build upon our longstanding focus on infill Southern California industrial real estate, a market that we believe continues to offer superior long‑term fundamentals.
Current report
– See footnotes starting on page 67 –
Current report
– See footnotes starting on page 67 –
Current report
(3)As of December 31, 2025, the entire project includes 526,069 rentable square feet, comprised of: (i) 3211 Mission Oaks Boulevard, a newly constructed building totaling 116,852 rentable square feet, and (ii) 3233 Mission Oaks Boulevard, with 409,217 rentable square feet which were not redeveloped. Site improvements were completed across the entire project. The rentable square feet and property leased percentage apply only to 3211 Mission Oaks Boulevard.
Current report
(5)As of December 31, 2025, 1315 Storm Parkway is considered stabilized, as it reached one year from the date of completion of construction work, but remains in lease-up for presentation purposes, as the property has not yet achieved 90% occupancy.
Current report
(6)9400-9500 Santa Fe Springs Road totals 595,304 rentable square feet and the proposed repositioning project pertains to work at only one of the units, totaling 184,270 rentable square feet.
Current report
(8)11308-11350 Penrose Street and 3071 Coronado were both considered stabilized in the first quarter of 2025 as they reached one year from the date of completion of construction work and were still in lease-up. In the third quarter of 2025 both projects achieved 100% occupancy and for presentation purposes above are reflected as stabilized in the third quarter of 2025.
Current report
(5)The net effective and cash releasing spreads for new leases signed in the second quarter were disproportionately impacted by a 106,251-square-foot lease with a net effective and cash releasing spread of (31.6)% and (36.9)%, respectively. This lease represented approximately 54% of the 196,430 square feet of comparable new leases signed during the second quarter. Excluding this lease, net effective and cash releasing spreads for new leases signed in the second quarter would have been 4.2% and (0.5)%, respectively.
Current report
(6)New leases signed in the third quarter included a 504,016-square-foot lease with a net effective leasing rate of $6.31 per square foot and a net effective and cash releasing spread of 68.2% and 42.8%, respectively. Excluding this lease, the net effective leasing rate would have been $16.82 per square foot, with net effective and cash releasing spreads of 15.1% and 2.5% respectively.
Current report
We generally hold and operate our real estate assets for long-term investment, which decreases the likelihood that their carrying values are not recoverable. However, changes in events, circumstances or our intent or strategy, including a decision to shorten the expected holding period or to pursue a sale, may result in an impairment loss.
Current report
When indicators of impairment are present, we assess recoverability by comparing the carrying amount of a real estate asset to the sum of undiscounted future cash flows expected to result from its use and eventual disposition. If the carrying value is not recoverable on an undiscounted cash flow basis, we recognize an impairment charge for the amount by which the carrying value exceeds the asset’s estimated fair value. Fair value is determined through various valuation techniques, including discounted cash flow models, the application of capitalization rates to estimated net operating income, quoted market values and third-party appraisals, where considered necessary.
Current report
Our Total Portfolio interest income increased by $8.5 million, or 61.8%, during the year ended December 31, 2025, compared to the year ended December 31, 2024, primarily due to an increase in the average cash balance invested in money market accounts.
Current report
Our Total Portfolio general and administrative expenses decreased by $3.3 million, or 4.0% for the year ended December 31, 2025, compared to the year ended December 31, 2024, primarily due to a net decrease in overall employee compensation costs.
Current report
Our Total Portfolio other expenses increased by $70.4 million from $2.2 million for the year ended December 31, 2024, to $72.6 million for the year ended December 31, 2025, primarily due to $60.2 million of accelerated non-cash equity compensation expense recognized in the fourth quarter of 2025 in connection with transition and separation arrangements with two executive officers. For additional information, see Note 14 to our consolidated financial statements included in Item 15 of this Report on Form 10-K. The increase also reflects $6.9 million of nonrecurring advisory costs and $4.4 million of severance costs related to a workforce reduction and reorganization, both incurred during 2025.
Current report
Impairment of Real Estate
Current report
During the year ended December 31, 2025, we recognized impairment charges totaling $89.1 million related to seven development properties. In the fourth quarter of 2025, management approved a change in strategy for these properties, resulting in a shortened expected holding period and a plan to pursue their sale rather than continue with future development for long-term ownership and operation. For additional information, see Note 3 to our consolidated financial statements included in Item 15 of this Report on Form 10-K. No impairment charges were recognized during the year ended December 31, 2024.
Current report
Debt Extinguishment and Modification Expenses
Current report
During the year ended December 31, 2025, we recognized debt extinguishment and modification expenses of $0.3 million, consisting of (i) a $0.2 million loss on extinguishment of debt from the write-off of unamortized debt issuance costs attributable to creditors in the unsecured revolving credit facility that were not included in the amended senior unsecured credit agreement entered into in May 2025, and (ii) $0.1 million of third-party fees associated with the modification of the $400.0 million unsecured term loan facility. No debt extinguishment and modification expenses were recognized during the year ended December 31, 2024.
Current report
(1)Amounts are included in the line item “Other expenses” in the consolidated statements of operations.
Current report
(2)Reflects accelerated non-cash share-based compensation expense recognized in the fourth quarter of 2025 in connection with transition and separation arrangements for two executive officers, including transition-related restricted stock awards and other pre-existing awards.
Current report
(3)Includes costs associated with workforce reduction and workforce reorganization.
Current report
(4)Reflects nonrecurring advisory service costs.
Current report
During the first quarter of 2025, we settled the remaining portion of the March 2024 Forward Sale Agreement by issuing the remaining 9,776,768 shares of common stock for net proceeds of $478.0 million, based on a weighted average forward price of $48.89 per share at settlement.
Showing the first 40 of 48 passages. Open the source sections for the rest.
Removed paragraphs (35)
Previous report
•During 2024, we completed $1.5 billion in total investments representing 56 properties with a combined 4.6 million rentable square feet of buildings on 218.3 acres of land.
Previous report
Dispositions
Previous report
Repositioning & Redevelopment
Previous report
•During 2024, we stabilized 10 of our repositioning/redevelopment properties located at 9755 Distribution Avenue, 8902-8940 Activity Road, 444 Quay Avenue, 263-321 Gardena Boulevard, 20851 Currier Road, 17311 Nichols Lane, 12752-12822 Monarch Street, 12907 Imperial Highway and 500 Dupont Avenue, which have a combined 826,442 rentable square feet of buildings, as well as 2880 Ana Street, which is an industrial outdoor storage sites with 3.7 acres of land.
Previous report
•As of December 31, 2024, we had 12 repositioning/redevelopment properties with a combined 1,175,688 rentable square feet in the lease-up stage.
Previous report
•During 2024, we issued 12,666,152 shares of common stock for total net proceeds of $650.2 million through a range of equity transactions, as follows:
Previous report
◦We settled the forward equity sale agreement that was outstanding as of December 31, 2023 under our 2023 at-the-market equity offering program by issuing 3,010,568 shares of our common stock for net proceeds of $164.5 million, based on a weighted average forward price of $54.65 per share at settlement.
Previous report
◦In March 2024, we completed a public offering of 17,179,318 shares of common stock to an existing investor, subject to a forward equity sale agreement, at a price of $48.95 per share for a gross offering value of $840.9 million. In 2024, we partially settled the forward equity sale agreement by issuing 7,402,550 shares of common stock for net proceeds of $360.0 million, based on a weighted average forward price of $48.63 per share at settlement.
Previous report
•Subsequent to December 31, 2024, through the date of this filing, we partially settled forward equity sale agreement related to the March 2024 public offering by issuing 1,543,191 shares of common stock in exchange for net proceeds of $75.0 million, based on a weighted average forward price of $48.60 per share at settlement.
Previous report
•As of the date of this filing, we had 8,233,577 shares of common stock, or approximately $401.1 million of net forward proceeds remaining for settlement prior to March 27, 2025, based on a weighted average forward price of $48.72 per share.
Previous report
•In March 2024, we completed the issuance of three-year $575.0 million exchangeable senior notes with a 4.375% coupon and a 30% conversion premium and five-year $575.0 million exchangeable senior notes with a 4.125% coupon and a 30% conversion premium. Net proceeds were approximately $1.126 billion after deducting the initial purchasers’ discounts and commissions and offering expenses.
Previous report
Acquisitions and Value-Add Repositioning and Redevelopment of Properties
Previous report
(4)As of December 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.
Previous report
(5)As of December 31, 2024, we were performing repositioning work at 17000 Kingsview Avenue around a short-term tenant who subsequently vacated the property in January 2025.
Previous report
(6)As of December 31, 2024, 29125 Avenue Paine has been leased on a short-term basis through June 30, 2025. We are planning to perform repositioning work around the short-term tenant.
Previous report
(7)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 report
(9)As of December 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 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 report
(12)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 report
(14)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 report
(8)Reflects our renewal leasing activity, weighted average lease term, effective rent per square foot and leasing spreads for the year ended December 31, 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 compare quarterly and year-to-date leasing statistics to our prior periods.
Previous report
The leases scheduled to expire during the years ending December 31, 2025 and 2026, represent 14.8% and 16.4%, respectively, of the total annualized base rent for our portfolio as of December 31, 2024. We estimate that, on a weighted average basis, in-place rents of leases scheduled to expire in 2025 and 2026 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 report
As described under “Market and Portfolio Fundamentals” above, while market indicators, including changes in vacancy rates and average asking lease rates, varied by market and showed signs of a post-pandemic normalizing of tenant demand, overall there was a continued supply and demand imbalance across our submarkets, which continues to support favorable long-term market fundamentals.
Previous report
Impairment of Long-Lived Assets
Previous report
Our Total Portfolio interest income increased from $5.8 million for the year ended December 31, 2023 to $13.7 million for the year ended December 31, 2024, primarily due to a $8.2 million increase related to interest earned on the $125.0 million loan that we originated on October 26, 2023.
Previous report
Our Total Portfolio general and administrative expenses increased by $7.1 million, or 9.5% for the year ended December 31, 2024, compared to the year ended December 31, 2023, primarily due to increases in non-cash equity compensation expense related to annual performance unit and LTIP unit awards and payroll/benefits related costs due to a higher employee headcount and rising labor costs.
Previous report
Our Total Portfolio other expenses increased by $0.4 million from $1.8 million for the year ended December 31, 2023, to $2.2 million for the year ended December 31, 2024, primarily due to a $0.6 million increase in write-offs of construction costs related to cancelled projects and a $0.2 million increase in construction demolition costs, partially offset by a $0.2 million decrease in acquisition expenses and a $0.2 million impairment charge recorded in 2023 to reduce the carrying value of the right-of-use asset in connection with the early termination of a sublease for one of our corporate office space leases.
Previous report
During the year ended December 31, 2024, we physically settled the forward equity sale agreements that were outstanding as of December 31, 2023 under the 2023 ATM Program by issuing 3,010,568 shares of our common stock for net proceeds of $164.5 million, based on a weighted average forward price of $54.65 per share at settlement.
Previous report
Issuance of Exchangeable Senior Notes —In March 2024, we issued $575.0 million in aggregate principal amount of 4.375% exchangeable senior unsecured notes due 2027 and $575.0 million in aggregate principal amount of 4.125% exchangeable senior unsecured notes due 2029. The net proceeds from the issuance, after deducting the initial purchasers’ discounts, underwriting commissions and other offering expenses, were approximately $563.1 million for the 2027 Exchangeable Notes and $563.1 million for the 2029 Exchangeable Notes. Interest on the Exchangeable Notes is payable semiannually on March 15 and September 15 of each year beginning on September 15, 2024. The 2027 Exchangeable Notes will mature on March 15, 2027 and the 2029 Exchangeable Notes will mature on March 15, 2029, in each case unless earlier repurchased, exchanged or (in the case of 2029 Exchangeable Notes) redeemed.
Previous report
Before December 15, 2026 (in the case of the 2027 Exchangeable Notes) or December 15, 2028 (in the case of the 2029 Exchangeable Notes), noteholders will have the right to exchange their notes only upon the occurrence of certain events. From and after December 15, 2026 (in the case of the 2027 notes) or December 15, 2028 (in the case of the 2029 notes), noteholders may exchange their notes at any time at their election until the close of business on the second scheduled trading day immediately before the maturity date of the applicable series of Exchangeable Notes. Exchanges will be settled by delivering cash up to the principal amount of the Exchangeable Notes exchanged, and in respect of the remainder of the exchanged value, if any, in excess thereof, in cash or in a combination of cash and shares of our common stock, at our option. The initial exchange rate is 15.7146 shares of our common stock per $1,000 principal amount of the Exchangeable Notes, which represents an initial exchange price of approximately $63.64 per share of our common stock. The initial exchange price represents a premium of approximately 30.0% over the last reported sale price of $48.95 per share of our common stock on March 26, 2024.
Previous report
During 2024, we partially settled the March 2024 Forward Sale Agreement by issuing 7,402,550 shares of common stock for net proceeds of $360.0 million, based on a weighted average forward price of $48.63 per share at settlement. Subsequent to December 31, 2024, through the date of this filing, we partially settled the March 2024 public offering by issuing 1,543,191 shares of common stock in exchange for net proceeds of $75.0 million, based on a weighted average forward price of $48.60 per share at settlement.
Previous report
We currently expect to physically settle the remaining 8,233,577 shares under the March 2024 Forward Sale Agreement by issuing shares of our common stock in exchange for cash proceeds upon one or more settlement dates, at our discretion, prior to the scheduled maturity date of March 27, 2025. As of February 7, 2025, the date of this Annual Report on Form 10-K, the net forward sale price was $48.72 and would result in $401.1 million of cash proceeds upon physical settlement of the shares under the March 2024 Forward Sale Agreement.
Previous report
During the year ended December 31, 2024, we settled the outstanding May 2023 Forward Sale Agreements by issuing 2,253,034 shares of common stock for net proceeds of $125.7 million, based on a weighted average forward price of $55.79 per share at settlement.
Previous report
Credit Agreement
Previous report
The Revolver is scheduled to mature on May 26, 2026 and has two six-month extension options available. The $400 Million Term Loan was scheduled to mature on July 19, 2024 and has two one-year extension options available. On July 12, 2024, we extended the maturity date of the $400 Million Term Loan by one year to July 18, 2025. The $300 Million Term Loan matures on May 26, 2027.
Previous report
(1)Holders of these units are entitled to cumulative cash distributions at the rate of 4.00% per annum through March 4, 2025, and 5.00% per annum thereafter. We have the option to convert the 4.00% Cumulative Redeemable Convertible Preferred Units into OP units at any time after March 5, 2025. See “Note 13 – Noncontrolling Interests” to the consolidated financial statements for additional details.
Reworded paragraphs (103)
Previous wording
Rexford Industrial Realty, Inc. is a self-administered and self-managed full-service REIT focused on owning and operating industrial properties in Southern California infill markets. We were formed as a Maryland corporation on January 18, 2013 and Rexford Industrial Realty, L.P. (the “Operating Partnership”), of which we are the sole general partner, was formed as a Maryland limited partnership on January 18, 2013. Through our controlling interest in our Operating Partnership and its subsidiaries, we acquire, own, improve, reposition, redevelop, lease and manage industrial real estate principally located in Southern California infill markets, and from time to time, acquire or provide mortgage debt secured by industrial zoned property or property suitable for industrial development. We are organized and conduct our operations to qualify as a REIT under the Code, and generally are not subject to federal taxes on our income to the extent we distribute our income to our shareholders and maintain our qualification as a REIT.
Current wording
Rexford Industrial Realty, Inc. is a self-administered and self-managed full-service REIT focused on owning and operating industrial properties in Southern California infill markets. We were formed as a Maryland corporation on January 18, 2013 and Rexford Industrial Realty, L.P. (the “Operating Partnership”), of which we are the sole general partner, was formed as a Maryland limited partnership on January 18, 2013. Through our controlling interest in our Operating Partnership and its subsidiaries, we acquire, own, improve, reposition, develop, lease and manage industrial real estate principally located in Southern California infill markets, and from time to time, acquire or provide mortgage debt secured by industrial zoned property or property suitable for industrial development. From time to time we also sell assets as part of our capital allocation strategy. We are organized and conduct our operations to qualify as a REIT under the Code, and generally are not subject to federal taxes on our income to the extent we distribute our income to our shareholders and maintain our qualification as a REIT.
Previous wording
As of December 31, 2024, our consolidated portfolio consisted of 425 properties with approximately 50.8 million rentable square feet.
Current wording
As of December 31, 2025, our consolidated portfolio consisted of 419 properties with approximately 51.2 million rentable square feet.
Previous wording
Our goal is to generate attractive risk-adjusted returns for our stockholders by providing superior access to industrial property investments and mortgage debt investments secured by industrial property in high-barrier Southern California infill markets. Periodically we also engage in mortgage debt investments secured by industrial zoned property or property suitable for industrial development within these markets. Our target markets provide us with opportunities to acquire both stabilized properties generating favorable cash flow, as well as properties or land parcels where we can enhance returns over time through value-add repositioning and redevelopments. Scarcity of available space and high barriers limiting new construction of for-lease product all contribute to create superior long-term supply/demand fundamentals within our target infill Southern California industrial property markets. With our vertically integrated operating platform and extensive value-add investment and management capabilities, we believe we are positioned to capitalize upon the opportunities in our markets to achieve our objectives.
Current wording
Our goal is to generate attractive risk-adjusted returns for our stockholders by providing superior access to industrial property investments and mortgage debt investments secured by industrial property in high-barrier Southern California infill markets. Periodically we also engage in mortgage debt investments secured by industrial zoned property or property suitable for industrial development within these markets. Our target markets provide us with opportunities to acquire both stabilized properties generating favorable cash flow, as well as properties or land parcels where we can enhance returns over time through value-add repositioning and developments. Scarcity of available space and high barriers limiting new construction of for-lease product all contribute to create superior long-term supply/demand fundamentals within our target infill Southern California industrial property markets. With our vertically integrated operating platform and extensive value-add investment and management capabilities, we believe we are positioned to capitalize upon the opportunities in our markets to achieve our objectives.
Previous wording
•Net income attributable to common stockholders increased by 15.6% to $262.9 million in 2024 compared to 2023.
Current wording
•Net income attributable to common stockholders decreased by 23.9% to $200.2 million in 2025 compared to 2024.
Previous wording
•Core funds from operations (Core FFO)(1) attributable to common stockholders increased by 15.0% to $511.7 million in 2024 compared to 2023.
Current wording
•Core funds from operations (Core FFO)(1) attributable to common stockholders increased by 9.2% to $558.6 million in 2025 compared to 2024.
Previous wording
•Net operating income (NOI)(1) increased by 17.3% to $711.8 million in 2024 compared to 2023.
Current wording
•Net operating income (NOI)(1) increased by 5.7% to $752.7 million in 2025 compared to 2024.
Previous wording
•Total portfolio occupancy at year-end was 91.3%.
Current wording
•Total portfolio occupancy at year-end was 90.2%.
Previous wording
•Same Property Portfolio(2) average occupancy for the year ended December 31, 2024 was 96.6% and ending occupancy at year-end was 94.1%.
Current wording
•Same Property Portfolio(2) average occupancy for the year ended December 31, 2025 was 96.4% and ending occupancy at year-end was 96.5%.
Previous wording
•Executed a total 436 new and renewal leases with a combined 8.1 million rentable square feet, with leasing spreads of 38.9% on a GAAP basis and 28.6% 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 38.7% on a cash basis.
Current wording
•Executed a total 478 new and renewal leases with a combined 10.4 million rentable square feet, with leasing spreads of 23.4% on a GAAP basis and 10.7% on a cash basis.
Previous wording
•During 2024, we sold five properties with a combined 170,293 rentable square feet for an aggregate gross sales price of $44.3 million and recognized $18.0 million in gains on sale of real estate.
Current wording
•During 2025, we sold seven properties totaling 589,534 rentable square feet for an aggregate gross sales price of $217.5 million and recognized $106.0 million in gains on sale of real estate.
Previous wording
◦We settled the remaining forward equity sale agreements related to our May 2023 underwritten public offering by issuing 2,253,034 shares of common stock for net proceeds of $125.7 million, based on a weighted average forward price of $55.79 per share at settlement.
Current wording
•During the first quarter of 2025, we settled the remaining portion of the forward equity sale agreement related to our March 2024 underwritten public offering by issuing 9,776,768 shares of common stock for net proceeds of $478.0 million, based on a weighted average forward price of $48.89 per share at settlement.
Previous wording
The infill Southern California industrial real estate sector continues to exhibit favorable long-term supply-demand 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 over the long-term due to high land and redevelopment costs, regulatory hurdles with restrictive development constraints 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. Additionally, regional consumption, which we believe represents an important driver of industrial tenant demand within our target markets, continues to exhibit growth as measured by consumer spending with approximately $31.6 billion of incremental spending forecasted for 2025, according to Oxford Economics. While we believe that our infill Southern California industrial property markets have demonstrated 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, persistent inflation, changes in trade policy, and global geopolitical unrest. Market rent growth continues to normalize, with rents decreasing approximately 12.5% over 2024, according to third-party market data, within our infill Southern California markets, after having increased by approximately 80.0%, on average, through the pandemic years of 2020 through 2022.
Current wording
The infill Southern California industrial real estate sector continues to exhibit favorable long-term supply-demand 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 over the long-term due to high land and development costs, regulatory hurdles with restrictive development constraints 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. That said, we expect some ongoing volatility within our markets through the near term, principally driven by general macroeconomic and political uncertainty including recent changes in trade and tariff policy, an uncertain interest rate environment, persistent inflation and global geopolitical unrest. According to third-party market data, market rent growth within our infill Southern California markets has decreased by approximately 22% from the peak levels reached in mid-2023. This decline follows an average increase of approximately 80% during the pandemic years of 2020 through 2022. Based on the same third-party market data, overall market rents remain approximately 40% above pre-pandemic levels.
Previous wording
The quality of tenant demand in 2024 is demonstrated through the Company’s strong leasing spreads and leasing volume (see “—Leasing Activity and Rental Rates” below). 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
Tenant demand has been driven by a wide range of sectors, from consumer products, healthcare and medical products to aerospace and defense, food and beverage, construction and logistics, e-commerce, among other sectors. 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 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 in 2024 has generally outpaced that of the infill markets within which we operate. By way of example, the observed rent decline within our portfolio of approximately 8.3% through 2024 compares favorably to the approximately 12.5% decline in rents, on average, for our broader infill Southern California market as reported by third-party market data. We believe this relative 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 in 2025 has generally outpaced that of the infill markets within which we operate. We believe this relative 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, comprised of smaller space sizes averaging 26,000 square feet located entirely within last-mile, infill Southern California locations is well positioned to serve regional consumption and may be less susceptible to changes in global trade flows as compared to large warehouses located within non-infill submarkets. 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 where we believe competing properties are generally otherwise owned by more passive, less-focused real estate owners.
Previous wording
In Los Angeles County, vacancy increased year-over-year to 4.2% and average asking lease rates decreased 13% year-over-year after increasing by 78% over the prior three year period. 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 year-over-year to 5.2% and average asking lease rates decreased 14% year-over-year. New development is limited by a lack of land availability and an increase in land and development costs.
Previous wording
In Orange County, average asking lease rates decreased year-over-year and vacancy increased year-over-year to 3.1%. Market conditions are expected to be favorable over the long-term due to steady demand and the continued low availability of industrial product in this region.
Current wording
In Orange County, vacancy increased year-over-year to 4.9% and average asking lease rates decreased 4% year-over-year. Market conditions are expected to be favorable over the long-term due to steady demand and the continued low availability of industrial product in this region.
Previous wording
In the Inland Empire West, which contains infill markets in which we operate, vacancy increased year-over-year to 5.5% and average taking lease rates declined 21% year-over-year as the market readjusted from the unsustainable levels of hyper-growth from 2020 to 2022, which also drove a temporary increase in the development of new, typically larger space product. Consequently, the increased vacancy was primarily due to vacant construction deliveries, as well as an increase in the supply of buildings over 100,000 square feet. 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 year-over-year to 6.0% and average taking lease rates declined 6% year-over-year. 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
The Company’s growth strategy targets industrial property investments demonstrating the potential for accretion in Core FFO and net asset value, both on a per share basis, over the near- to longer-term. These target investments may comprise acquiring leased, stabilized properties as well as properties with value-add opportunities to improve functionality and to deploy our value-driven asset management programs in order to increase cash flow and value. Additionally, from time to time, we may acquire industrial outdoor storage sites, land parcels or properties with excess land for ground-up redevelopment projects. Acquisitions may comprise single property investments as well as the purchase of portfolios of properties, with transaction values ranging from approximately $10 million single property investments to portfolios potentially valued in the billions of dollars. The Company’s geographic focus remains infill Southern California. However, from time-to-time, portfolios could be acquired comprising a critical mass of infill Southern California industrial property that could include some assets located in markets outside of infill Southern California. In general, to the extent non-infill-Southern California assets were to be acquired as part of a larger portfolio, the Company may underwrite such investments with the potential to dispose such assets over a certain period of time in order to maximize its core focus on infill Southern California, while endeavoring to take appropriate steps to satisfy REIT safe harbor requirements to avoid prohibited transactions under REIT tax laws. Similarly, while our focus is owning and operating industrial properties in Southern California infill markets, occasionally an acquisition may include non-industrial properties, such as office and other uses, with the intent to reposition or redevelop the properties into industrial use or to dispose of the non-industrial assets in a manner intended to satisfy REIT safe harbor requirements to avoid prohibited transactions under REIT tax laws.
Current wording
The Company’s historical investment strategy targets industrial property investments demonstrating the potential for accretion in Core FFO and net asset value, both on a per share basis, over the near- to longer-term. These target investments may comprise acquiring leased, stabilized properties as well as properties with value-add opportunities to improve functionality and to deploy our value-driven asset management programs in order to increase cash flow and value. Additionally, from time to time, we may acquire industrial outdoor storage sites, land parcels or properties with excess land for ground-up development projects. Acquisitions may comprise single property investments as well as the purchase of portfolios of properties, with transaction values ranging from approximately $10 million single property investments to portfolios potentially valued in the billions of dollars. The Company’s geographic focus remains infill Southern California. However, from time-to-time, portfolios could be acquired comprising a critical mass of infill Southern California industrial property that could include some assets located in markets outside of infill Southern California. In general, to the extent non-infill-Southern California assets were to be acquired as part of a larger portfolio, the Company may underwrite such investments with the potential to dispose such assets over a certain period of time in order to maximize its core focus on infill Southern California, while endeavoring to take appropriate steps to satisfy REIT safe harbor requirements to avoid prohibited transactions under REIT tax laws. Similarly, while our focus is owning and operating industrial properties in Southern California infill markets, occasionally an acquisition may include non-industrial properties, such as office and other uses, with the intent to reposition or develop the properties into industrial use or to dispose of the non-industrial assets in a manner intended to satisfy REIT safe harbor requirements to avoid prohibited transactions under REIT tax laws.
Previous wording
A key component of our growth strategy is to acquire properties through off-market and lightly marketed transactions that are often operating at below-market occupancy or below-market rent at the time of acquisition or that have near-term lease roll-over or that provide opportunities to add value through functional or physical repositioning and improvements. Through various repositioning, redevelopment, and professional leasing and marketing strategies, we seek to increase the properties’ functionality and attractiveness to prospective tenants and, over time, to stabilize the properties at occupancy rates that meet or exceed market rates.
Current wording
A key component of our growth strategy has historically been to acquire properties through off-market and lightly marketed transactions that are often operating at below-market occupancy or below-market rent at the time of acquisition or that have near-term lease roll-over or that provide opportunities to add value through functional or physical repositioning and improvements. Through various repositioning, development, and professional leasing and marketing strategies, we seek to increase the properties’ functionality and attractiveness to prospective tenants and, over time, to stabilize the properties at occupancy rates that meet or exceed market rates.
Previous wording
A repositioning can provide a range of property improvements. This may include a complete structural renovation of a property whereby we convert large underutilized spaces into a series of smaller and more functional spaces, or it may include the creation of additional square footage, the modernization of the property site, the elimination of functional obsolescence, the addition or enhancement of loading areas and truck access, the enhancement of fire-life-safety systems or other accretive improvements, in each case designed to improve the cash flow and value of the property.
Current wording
Repositioning remains a central component of our value‑creation strategy, as we seek to modernize, reconfigure, and enhance existing properties to align with tenant demand and maximize risk‑adjusted returns. A repositioning can provide a range of property improvements. This may include a complete structural renovation of a property whereby we convert large underutilized spaces into a series of smaller and more functional spaces, or it may include the creation of additional square footage, the modernization of the property improvements, the elimination of functional obsolescence, the addition or enhancement of loading areas and truck access, the enhancement of fire-life-safety systems or other accretive improvements, in each case designed to improve the cash flow and value of the property.
Previous wording
We have a number of significant repositioning properties, which are individually presented in the tables below. A repositioning property that is considered significant is typically defined as a property where a significant amount of space is held vacant in order to implement capital improvements, the cost to complete repositioning work and lease-up is estimated to be greater than $1 million and the repositioning and lease-up time frame is estimated to be greater than six months. We also have a range of other spaces in repositioning, that due to their smaller size, relative scope, projected repositioning costs or relatively nominal amount of down-time, are not presented below, however, in the aggregate, may be substantial (and which we refer to as “other repositioning projects”).
Current wording
We have a number of repositioning properties, which are individually presented in the tables below. A repositioning property that is considered significant is typically defined as a property where a significant amount of space is held vacant in order to implement capital improvements, the cost to complete repositioning work and lease-up is estimated to be greater than $2.5 million and the repositioning and lease-up time frame is estimated to be greater than six months. We also have a range of other spaces in repositioning, that due to their smaller size, relative scope, projected repositioning costs or relatively nominal amount of down-time, are not presented below, however, in the aggregate, may be substantial (and which we refer to as “other repositioning projects”).
Previous wording
A redevelopment property is defined as a property where we plan to fully or partially demolish an existing building(s) due to building obsolescence and/or a property with excess or vacant land where we plan to construct a ground-up building.
Current wording
A development property is defined as a property where we plan to fully demolish an existing building(s) due to building obsolescence and/or construct a ground-up building on a property with excess or vacant land. We recently re-evaluated our near-term development pipeline to focus on opportunities that satisfy enhanced underwriting criteria. As part of this process, we evaluated alternatives including proceeding with development, postponing construction, or selling the site based on relative risk‑adjusted returns. Following this review, we determined not to proceed with six projects totaling approximately 850,000 square feet.
Previous wording
As of December 31, 2024, 22 of our properties were under current repositioning or redevelopment and 12 of our properties were in the lease-up stage. In addition, we have a pipeline of 21 additional properties for which we anticipate beginning repositioning/redevelopment construction work over the near term. 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.
Current wording
As of December 31, 2025, nine of our repositioning and development properties were under construction and 14 of our properties were in the lease-up stage. In addition, following our re-evaluation of the development pipeline, we have six properties as near-term potential future repositioning and development opportunities. The tables below set forth a summary of these properties, as well as the properties that were most recently stabilized in 2024 and 2025, as the timing of these stabilizations have a direct impact on our current and comparative results of operations. We consider a repositioning/development 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
(2)“Repositioning/Lease-up Rentable Square Feet” is the actual rentable square footage that is subject to repositioning at the property/building, and may be less than the total rentable square footage of the entire property or particular building(s) under repositioning.
Current wording
(2)Rentable square feet is the actual rentable square footage that is subject to repositioning at the property/building, and may be less than the total rentable square footage of the entire property or particular building(s) under repositioning. For developments, rentable square feet represents the estimated rentable square footage of the project upon completion of the development.
Previous wording
(11)1500 Raymond Avenue contains one acre of excess paved land.
Current wording
(4)1500 Raymond Avenue contains one acre of excess paved land.
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
(7)We consider a repositioning or development 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 61,398 rentable square feet of buildings on 335,905 square feet, or 7.7 acres, of land.
Current wording
(9)14434-14527 San Pedro Street is a low coverage site with 58,225 rentable square feet of buildings on 335,905 square feet, or 7.7 acres, of land.
Previous wording
(10)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.
Current wording
(10)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
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 $31.4 million of interest expense and $8.1 million of insurance and real estate tax expenses during the year ended December 31, 2024, related to our repositioning and redevelopment projects.
Current wording
Properties that are nonoperational as a result of repositioning or development activity may qualify for varying levels of interest, insurance and real estate tax capitalization during the development and construction period. An increase in our repositioning and development 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 $35.3 million of interest expense and $10.1 million of insurance and real estate tax expenses during the year ended December 31, 2025, related to our repositioning and development projects.
Previous 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. 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
Currently proposed trade and other political policies may lead to increased construction materials and labor costs, which when combined with longer lead times for governmental approvals and entitlements, has the potential to increase budgeted and actual construction costs and may cause delays in starting and completing certain development projects. Additional increases in costs, further delays or declining market rents could result in a lower expected yield on our development projects, which could negatively impact our future earnings.
Previous wording
As of December 31, 2024, our consolidated portfolio, inclusive of space in repositioning as described in the subsequent paragraph, was approximately 91.3% occupied, while our stabilized consolidated portfolio exclusive of such space was approximately 96.0% 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 December 31, 2025, our consolidated portfolio, inclusive of space in repositioning as described in the subsequent paragraph, was approximately 90.2% occupied, while our stabilized consolidated portfolio exclusive of such space was approximately 96.0% occupied. Our improved land and industrial outdoor storage (IOS) sites, totaling approximately 8.4 million land square feet or 191.9 acres, were 97.8% occupied at December 31, 2025. We believe the opportunity to increase occupancy at our properties will continue to be an important driver of future revenue growth, particularly as repositioning and development projects are completed and move through the lease-up phase.
Previous wording
As summarized in the tables under “Acquisitions and Value-Add Repositioning and Redevelopment of Properties” above, as of December 31, 2024, 22 of our properties with a combined 2.3 million of estimated rentable square feet at completion are under current repositioning or redevelopment, 12 properties with a combined 1.2 million rentable square feet are in lease-up, and we have a near-term potential pipeline of 21 repositioning and redevelopment projects with a combined 3.4 million of estimated rentable square feet at completion. Additionally, as of December 31, 2024, we had 0.6 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 4.9% of our total consolidated portfolio square footage as of December 31, 2024. Including vacant space at these properties, our weighted average occupancy rate as of December 31, 2024, in our Los Angeles, Orange County and San Bernardino markets was 90.2%, 90.3% and 96.0%, respectively. Excluding vacant space at these properties, our weighted average occupancy rate as of December 31, 2024, in these markets was 95.4%, 98.7% and 98.0%, 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
Vacant space at our repositioning, development and lease-up properties is concentrated in our Los Angeles, Orange County and San Diego markets and represented 6.0% of our total consolidated portfolio square footage as of December 31, 2025. Including vacant space at these properties, our weighted average occupancy rate as of December 31, 2025, in our Los Angeles, Orange County and San Diego markets was 88.3%, 93.6% and 85.9%, respectively. Excluding vacant space at these properties, our weighted average occupancy rate as of December 31, 2025, in these markets was 95.3%, 99.2% and 96.4%, respectively. We believe that an important portion of our long-term future growth will come from the completion and lease-up of projects currently under or scheduled for repositioning/development, as well as from select opportunities that meet established return thresholds, whether within 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 rates and vacancy over the past two years, the Los Angeles, Orange County, San Bernardino–Inland Empire West 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.
Current wording
The occupancy rate of properties not undergoing repositioning is affected by regional and local economic conditions in our Southern California infill markets. In the current market environment, our near‑term leasing focus for these operating properties is on preserving occupancy and maintaining cash flow. Although there has been a post-pandemic normalization of market rates and vacancy over the last few years, the Los Angeles, Orange County, San Bernardino–Inland Empire West 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
(4)The net effective and cash re-leasing spreads for new leases executed during the year ended December 31, 2024, exclude 72 leases aggregating 1,922,676 rentable square feet for which there was no comparable lease data. Of these 72 excluded leases, 27 leases aggregating 1,118,439 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 net effective and cash re-leasing spreads for new leases executed during the year ended December 31, 2025, exclude 103 leases aggregating 3,617,125 rentable square feet for which there was no comparable lease data. Of these 103 excluded leases, 46 leases aggregating 2,646,805 rentable square feet were recently repositioned or developed space. Comparable leases generally exclude: (i) space that has never been occupied under our ownership, (ii) repositioned/developed 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 twelve months. Because leasing spreads are based on building square footage, land lease activity is not captured in these calculations. However, during the year ended December 31, 2025, we executed the following land lease transactions: (i) two new leases totaling 65,424 land square feet and (ii) four renewal leases totaling 388,079 land square feet. For the renewal land lease transactions, the net effective and cash leasing spreads were 94.0% and 27.0%, respectively. The new land lease transactions did not have any prior comparable lease data, and therefore no spread calculation is applicable.
Previous wording
(5)The net effective and cash re-leasing rent spreads for renewal leases executed during the year ended December 31, 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.
Current wording
(7)The net effective and cash re-leasing rent spreads for renewal leases executed during the year ended December 31, 2025, exclude six leases aggregating 48,440 rentable square feet for which there was no comparable lease data. Comparable leases generally exclude space with lease terms shorter than twelve months or space in pre-development/entitlement process.
Previous wording
(6)Includes leases totaling 2,298,380 rentable square feet that expired during the year ended December 31, 2024, for which the space has been or will be placed into repositioning (including “other repositioning projects”) or redevelopment.
Current wording
(8)Includes leases totaling 2,514,365 rentable square feet that expired during the year ended December 31, 2025, for which the space has been or will be placed into repositioning or development.
Previous wording
(7)Retention is calculated as renewal lease square footage plus relocation/expansion square footage, divided by the square footage of leases expiring during the period. Retention excludes square footage related to the following: (i) expiring leases associated with space that is placed into repositioning (including “other repositioning project”) after the tenant vacates, (ii) early terminations with pre-negotiated replacement leases and (iii) move outs where space is directly leased by subtenants.
Current wording
(9)Retention is calculated as renewal lease square footage plus relocation/expansion square footage, divided by the square footage of leases expiring during the period. Retention excludes square footage related to the following: (i) expiring leases associated with space that is placed into repositioning (including “other repositioning projects”) after the tenant vacates, (ii) early terminations with pre-negotiated replacement leases and (iii) move outs where space is directly leased by subtenants.
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 December 31, 2024, we have 22 current repositioning/redevelopment projects with estimated construction completion periods ranging from the first quarter of 2025 through the first 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.
Current wording
Our leasing activity is impacted both by our repositioning and development 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 December 31, 2025, we have nine projects under construction that are expected to become available for leasing beginning in the second quarter of 2026 through the fourth 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.
Previous wording
As of December 31, 2024, 1.9 million rentable square feet of our portfolio was available for lease, 2.5 million rentable square feet of vacant space was under repositioning/redevelopment or in the lease-up stage and leases representing 0.4 million rentable square feet of our portfolio expired on December 31, 2024. Additionally, leases representing 14.4% and 17.1% of the aggregate rentable square footage of our portfolio are scheduled to expire during the years ending December 31, 2025 and 2026, respectively. During the year ended December 31, 2024, we renewed 226 leases for 4.9 million rentable square feet, resulting in a 67.9% retention rate. New and renewal leases signed during the current year had a weighted average term of 4.5 and 4.4 years (excluding the 1.1 million square foot lease extension noted above under “—Leasing Activity and Rental Rates”), respectively, and we expect future new and renewal leases to have similar terms.
Current wording
As of December 31, 2025, 1.9 million rentable square feet of our portfolio was available for lease, 3.1 million rentable square feet of vacant space was under repositioning/development or in the lease-up stage, and leases representing 0.7 million rentable square feet of our portfolio expired on December 31, 2025. Additionally, leases representing 15.1% and 14.0% of the aggregate rentable square footage of our portfolio are scheduled to expire during the years ending December 31, 2026 and 2027, respectively. During the year ended December 31, 2025, we renewed 257 leases for 4.9 million rentable square feet, resulting in a 66.6% retention rate. New and renewal leases signed during the current year had a weighted average term of 5.0 and 4.6 years, respectively.
Previous wording
The properties in our portfolio are located primarily in Southern California infill markets. Positive or negative changes in economic or other conditions, high or persistent inflation and adverse weather conditions and natural disasters in this market may affect our overall performance.
Current wording
The properties in our portfolio are located primarily in Southern California infill markets. Positive or negative changes in economic or other conditions, trade policy, high or persistent inflation and adverse weather conditions and natural disasters in this market may affect our overall performance.
Showing the first 40 of 103 pairs. Open the source sections for the rest.
Rearranged current paragraphs (4)
Current report — wording carried from elsewhere
Impairment of Investments in Real Estate, Net
Current report — wording carried from elsewhere
See “Note 2 – Summary of Significant Accounting Policies” to our consolidated financial statements included in Item 15 of this Annual Report on Form 10-K for further details regarding our estimation process for impairment of long-lived assets.
Current report — wording carried from elsewhere
Fifth Amended and Restated Credit Agreement
Current report — wording carried from elsewhere
Subject to certain terms and conditions set forth in the Credit Agreement, we may request additional lender commitments and increase the size of the Credit Agreement by an additional $1.05 billion, which may be comprised of additional revolving commitments under the Revolver, an increase to the Term Facility, additional term loan tranches or any combination of the foregoing.
Rearranged previous paragraphs (3)
Previous report — wording carried elsewhere
(8)Represents the estimated rentable square footage of the project upon completion of redevelopment.
Previous report — wording carried elsewhere
We demolished the existing building and are constructing a new building comprising approximately 76,553 rentable square feet in its place.
Previous report — wording carried elsewhere
March 2024 Forward Equity Offering —In March 2024, we entered into a forward equity sale agreement with a financial institution acting as forward purchaser in connection with an underwritten public offering of 17,179,318 shares of common stock (the “March 2024 Forward Sale Agreement”), pursuant to which, the forward purchaser borrowed and sold an aggregate of 17,179,318 shares of common stock in the offering. We did not receive any proceeds from the sale of common shares by the forward purchaser at the time of the offering. The net forward sale price that we will receive upon physical settlement of the agreement, which was initially $48.61 per share, will be subject to adjustment for (i) a floating interest rate factor equal to a specified daily rate less a spread, (ii) the forward purchaser’s stock borrowing costs and (iii) scheduled dividends during the term of the forward sale agreement.