Rexford Industrial Realty, Inc. (REXR) Q2 2022 Earnings Call Transcript

For the period ending June 30, 2022

July 20, 2022 1:00 p.m. ET

Prepared Remarks

Questions and Answers

Call Participants

Prepared Remarks:

Operator

Greetings. Welcome to the Rexford Industrial Realty Second Quarter 2022 Earnings Call. At this time, all participants are in a listen-only mode. A question-and-answer session will follow the formal presentation. [Operator Instructions] Please note, this conference is being recorded.

I'll now turn the conference over to your host, David Lanzer, General Counsel. You may begin.

David Lanzer

We thank you for joining us for Rexford Industrial's second quarter 2022 earnings conference call. In addition to the press release distributed yesterday after market close, we posted a supplemental package and investor presentation in the Investor Relations section on our website at rexfordindustrial.com.

On today's call, management's remarks and answers to your questions may contain forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995. Forward-looking statements address matters that are subject to risks and uncertainties that may cause actual results to differ from those discussed today. For more information about these risk factors, we encourage you to review our 10-K and other SEC filings. Rexford Industrial assumes no obligation to update any forward-looking statements in the future.

In addition, certain financial information presented on this call represents non-GAAP financial measures. Our earnings release and supplemental package present GAAP reconciliations and an explanation of why such non-GAAP financial measures are useful to investors.

Today's conference call is hosted by Rexford Industrial's Co-Chief Executive Officers, Michael Frankel and Howard Schwimmer, together with Chief Financial Officer, Laura Clark. They will make some prepared remarks, and then we will open the call for your questions.

Now, I will turn the call over to Michael.

Michael Frankel

Thank you, David, and thank you, everyone, for joining our Rexford Industrial second quarter 2022 earnings call. We hope you and your families are well. I'll provide some brief remarks followed by Howard, who will discuss our transaction activity, and then Laura will provide an update on our performance and guidance.

As we head into the second half of the year, we continue to see strong levels of tenant demand and positive market rent growth within infill Southern California. Our portfolio continues to perform at essentially full occupancy with our same property pool average occupancy over 99%. Demand continues to exceed supply with overall market vacancy tracking at well below 1%. We expect the supply-demand imbalance within our infill markets to persist into the foreseeable future due to an extreme lack of available space or developable land within infill Southern California.