Good afternoon. My name is Pryla, and I will be your conference operator today. At this time, I would like to welcome everyone to the Rexford Industrial Realty, Inc. First Quarter 2026 Earnings Call. All lines have been placed on mute to prevent any background noise. After the speakers' remarks, there will be a question and answer session. If you would like to ask a question during this time, simply press the star followed by the number one on your telephone keypad. If you would like to withdraw your question, you may press star one again. Thank you. I will now hand the call over to Mikaela Lynch, Director of Investor Relations and Capital Markets at Rexford Industrial Realty, Inc. Mikaela, please go ahead.

Thank you, and welcome to Rexford Industrial Realty, Inc.'s First Quarter 2026 Earnings Conference Call. In addition to yesterday's earnings release, we posted a supplemental package and earnings presentation in the Investor Relations section on our website to support today's remarks. As a reminder, management's remarks and responses to your questions may contain forward-looking statements as defined by federal securities laws, which are based on certain assumptions and subject to risks and uncertainties outlined in our 10-Ks and other SEC filings. As such, actual results may differ, and we assume no obligation to update any forward-looking statements in the future. We will also discuss non-GAAP financial measures on today's call. Our earnings presentation and supplemental package provide GAAP reconciliations as well as an explanation of why these measures are useful to investors. Joining me today are Rexford Industrial Realty, Inc.'s CEO, Laura Clark, together with our COO, John Nahas, and our CFO, Michael P. Fitzmaurice. It is my pleasure to now introduce Laura Clark. Laura?

Thank you, Mikaela, and thank you all for joining us today. The Rexford Industrial Realty, Inc. team delivered a strong quarter. We set a record for leasing activity, executing 4.1 million square feet of leases, reflecting increased tenant activity and demand for our higher-quality portfolio. The decisive actions we are taking to advance our strategic priorities are driving top- and bottom-line growth, supporting our outperformance and higher expectations for the full year. Today, I will provide an update on our strategic focus areas and the broader environment. John will then discuss our operating performance and share a deeper view on market trends. Finally, Fitz will walk through our financial results and increased full year outlook. We entered the year with clearly defined goals to drive long-term shareholder value. In the first quarter, we made meaningful progress against our three strategic areas of focus: opportunistic dispositions, accretive capital recycling, and operational rigor. I will start with our programmatic disposition strategy, which is focused on strengthening future cash flows and reducing development exposure. To date, we have closed on $144 million of dispositions with another $170 million under contract or accepted offer, keeping us firmly on track to achieve our target for the year. Through these strategic dispositions, we are de-risking cash flows, capturing premium valuations, and avoiding future dilutive capital spend, all while directly supporting our next priority: accretive capital recycling. As we redeploy capital from dispositions, our investment decisions remain anchored in our commitment to delivering superior risk-adjusted returns. Given the dislocation between Rexford Industrial Realty, Inc.'s public market valuation and the intrinsic value of our platform, share repurchases remain a compelling driver of FFO and NAV per share accretion. In the first quarter, we executed $200 million of share repurchases. Looking ahead, we will continue to evaluate opportunities across our portfolio to increase the quality and durability of our future cash flow growth and unlock meaningful value through accretive capital recycling. We also made material progress against our commitment to enhanced operational rigor. Last quarter, we shared our focus on prioritizing occupancy amid softer market fundamentals. Our team's strength of execution—proactively engaging tenants, addressing end-market requirements, and driving demand for our assets—translated into stronger leasing and shorter downtime. Our first quarter results and increased full-year guidance expectations directly reflect our efforts to preserve cash flows and reduce capital costs, a continued focus moving forward. Regarding operational efficiency, our actions to date have positioned us to achieve meaningful G&A savings, bringing G&A as a percentage of revenue below the peer average, and we expect to continue reducing this level over time. Turning to the infill Southern California industrial market, where Rexford Industrial Realty, Inc.'s unique positioning provides unparalleled visibility into conditions on the ground. Infill Southern California is home to more than 24 million people, represents the twelfth largest economy in the world, and includes the fourth largest industrial market globally. A diverse set of macro and microeconomic drivers shapes demand and supply across the segment and market, meaning that no submarket, building size, or quality tier performs the same. Importantly, this diversity underpins strong long-term supply and demand fundamentals. Against that backdrop, the first quarter reflected a shift across the market. Increased tenant activity translated into higher leasing volumes. Specifically, first quarter leasing activity for the Rexford Industrial Realty, Inc. portfolio was over 70% higher year over year. In addition, current leasing interest on our vacant spaces increased to approximately 90% compared to 75% last quarter and a year ago. Notably, momentum accelerated through the quarter, with the majority of our leases executed in the second half of the quarter. While demand in certain submarkets and product types remained soft and market fundamentals are still under pressure, we are encouraged by the early positive signs we are seeing within our portfolio and the market. We view this incremental improvement as a necessary precursor to broader stabilization, setting the stage for an eventual tightening in availability and lower vacancy across the market. Importantly, our high-quality, functional assets and supply-constrained locations reinforce our confidence in Rexford Industrial Realty, Inc.'s ability to deliver outsized growth. Supply under construction remains near historic lows, and the structural barriers to new supply that have emerged in recent years, including significantly increased regulatory restrictions, have fundamentally altered the market's ability to add supply. We believe these long-term constraints will deepen Rexford Industrial Realty, Inc.'s competitive moat and reinforce the value of our irreplaceable portfolio. These favorable dynamics are amplified for buildings under 50 thousand square feet and align with Rexford Industrial Realty, Inc.'s core focus on smaller-format, consumption-driven industrial. Supply under construction in this size range is immaterial, and approximately 80% of the existing inventory was built over 50 years ago, reflecting the longstanding difficulty of adding smaller-format product and positioning our value-creation platform to deliver outsized per-share growth over time. In closing, we are encouraged by the incremental improvement we are seeing in the market. We are confident Rexford Industrial Realty, Inc. will continue to capitalize as the market approaches a trough and demand conditions improve. We remain well positioned to deliver meaningful, sustainable value creation for our shareholders. Before turning the call over to John, I would like to congratulate him on his well-deserved promotion to COO, recognizing his exceptional leadership and substantial contributions across Rexford Industrial Realty, Inc.'s operations. John?

Thank you, Laura, and good morning, everyone. Before I begin, I would like to express my gratitude for the opportunity to step into the COO role. I am proud to be a part of a tremendous Rexford Industrial Realty, Inc. team, and I am excited to help lead Rexford Industrial Realty, Inc. as we execute upon our strategy to drive performance. Overall, we delivered a solid first quarter, with results tracking ahead of our expectations and reinforcing the durability of our platform. Leasing activity gained momentum throughout the quarter. Our focus on prioritizing occupancy has resulted in over 4.1 million square feet of lease transactions. The volume is comprised of 144 deals averaging 29 thousand square feet, with approximately 70% coming from renewals, including the renewal of Tireco at our 1.1 million square foot building on Production Avenue in the Inland Empire West. Cash releasing spreads for the quarter were negative 15.4% inclusive of the Tireco renewal and negative 1.8% excluding the Tireco renewal, in line with our expectations. I would like to take a moment to further describe the Tireco renewal given its relative size and impact. The renewal was strategic for a number of factors. First, at the time of negotiation, we had visibility to the upcoming vacancy of an immediately adjacent building similar in size and functionality that would have represented an efficient, low-cost relocation option for the tenant. Second, considering the significant capital investment and downtime associated with the potential vacancy next year, it was financially advantageous to preserve the occupancy. Finally, we opportunistically chose to limit the extended term to three years and to convert the lease structure to gross, thereby allowing us to collect a material reduction in property tax assessments anticipated to occur over the term. While this renewal generated an approximately 30% negative spread, it was amplified by the above-market in-place rent that was established during the last lease extension and is not indicative of future leasing spreads in the portfolio. Turning to the market, as Laura noted, we are seeing higher levels of leasing activity. Demand drivers continue to emanate from consumption-related sectors such as construction-related uses, food and beverage, and automotive businesses, and notably, we have not seen a negative impact on demand related to the current geopolitical conflict. Importantly, the level of activity and conversion rate to leases continues to be dependent on product size, class, and submarket. Demand for spaces under 50 thousand square feet remains healthy and well diversified. Tenants seeking larger spaces over 50 thousand square feet are generally focused on functional space that can be leased at value rates. As a result, Class A product in certain submarkets, such as San Fernando Valley, Orange County, and San Gabriel Valley, continues to see slow activity, as evidenced by delayed rent commencement on development projects that we have delivered in those markets. Focusing further on submarket-specific demand, we continue to see notable increased activity from 3PLs in the Inland Empire West and from advanced manufacturers which are seeking both larger and smaller-format spaces in specific portions of the San Fernando Valley and South Bay markets. One such example is the stabilization of our completed repositioning project at 1315 Storm Parkway, which is a 38 thousand square foot building in the South Bay that we leased to an advanced manufacturer. Overall, we are encouraged by these trends and the general increase in activity. However, we continue to closely monitor net absorption across our markets. The overall infill SoCal market continues to experience negative net absorption, resulting in a 20 basis point increase in vacancy with rents declining approximately 70 basis points compared to last quarter. Deal terms aside from rate continue to be stable, including concessions and annual escalations. Moving on to capital allocation, we remain focused on our disposition strategy and disciplined capital deployment. During the quarter, we disposed of five assets comprised of two development projects that did not meet our current return requirements and three operating assets that were sold to users at premium valuations. Subsequent to quarter end, we closed on one additional property that was formerly in our near-term development pipeline, and we have $170 million of additional dispositions under contract or accepted offer which are subject to customary closing conditions. In regard to repositioning and development, we continue to rigorously evaluate the strategy for each asset in our pipeline with a focus on maximizing risk-adjusted returns. As a result, two projects were removed from our prior near-term pipeline to pursue more accretive outcomes. At Green Drive in the City of Industry, we were able to meet an active user-sale requirement and have pivoted to executing a sale and capitalizing on a premium valuation. At Mulberry Avenue in the Inland Empire West, we are foregoing a previously planned repositioning project that no longer meets our return requirements, and the property is now being offered both for sale and for lease as-is. At the same time, we continue to move forward with value-creation opportunities that meet our underwriting targets. Ruffin Road in San Diego was added to our future development pipeline, as it will ultimately deliver a highly competitive building in a desirable location and is forecasted to achieve a 200 basis point development spread. With that, I will turn it over to Fitz.

Thanks, Laura and John, and good morning, everyone. We are pleased with our first quarter financial results, which reflect our continued focus on what we can control: driving occupancy, recycling capital accretively, and preserving balance sheet flexibility and strength. Starting with financial results, first quarter core FFO per share of $0.61 was $0.01 above our internal forecast and up $0.02 sequentially from the fourth quarter last year. The $0.01 beat was largely driven by stronger NOI growth and accretive share buybacks. The $0.02 sequential improvement was driven primarily by lower G&A, and also accretive share buybacks and stronger NOI growth. Same-property NOI growth was 90 basis points on a net effective basis and negative 40 basis points on cash. While the year-over-year change benefited from average occupancy gains, we did experience higher concessions. Regarding bad debt, as expected, expense was elevated this quarter. It was concentrated in a few tenants and not broad based. Our tenant watch list continues to trend low, underscoring the strong credit quality and stability inherent in our diverse tenant base. Turning to capital recycling and the balance sheet, disposition proceeds were redeployed into share buybacks. We bought back $200 million of shares at a weighted average price of $36, bringing our cumulative total since mid-2025 to $450 million. This capital rotation was meaningfully accretive. Selling assets and redeploying into shares at a significant discount to intrinsic value was a key factor in our ability to raise full-year guidance. We view share buybacks at these price levels as a superior use of capital, providing a direct and meaningful increase to shareholder returns. We ended the quarter with net debt to adjusted EBITDA of 4.5x and $1.3 billion of total liquidity, with no significant maturities until 2027—a balance sheet that gives us strength and flexibility. Based on approximately $300 million of remaining dispositions expected to be completed by the end of the year, we have significant liquidity and opportunity to deploy capital towards the highest risk-adjusted returns across our suite of opportunities: share buybacks, repositionings, and select developments. Turning to our 2026 guidance increase, we are raising our full-year core FFO per share midpoint by $0.02, primarily driven by outperformance in the first quarter due to strong leasing activity as we continue to prioritize occupancy and accretive capital recycling. We have also raised our same-property NOI growth outlook by 50 basis points at the midpoint, both on a net effective and cash basis. Average same-property occupancy is now expected to be 95.1% to 95.6%, up 30 basis points at the midpoint. Our bad debt assumption of 75 basis points of revenue remains unchanged, as does our net effective releasing spreads of 5% to 10%. All other assumptions—G&A of approximately $60 million and interest expense of approximately $112 million—remain intact. On the repositioning and development front, we expect to stabilize and commence rent on approximately 1.1 million square feet of value-added projects, generating $17 million of annualized NOI, with the majority expected to come online in the second half of this year. This is down slightly from our earlier expectations due to rent commencement delays that John noted. Conversely, approximately $12 million of annualized in-place NOI will come offline related to 2026 construction starts, in line with last quarter. The weighted average timing of the annualized NOI coming offline is late in the third quarter. Before we open up the call for questions, we acknowledge the near-term pressure from releasing spreads given the market rent decline over the past three years. However, our focus is clear: control the controllables. We are navigating the current phase of the cycle with a clear, disciplined strategy centered on execution. Our primary bridge to growth is a rigorous focus on driving occupancy in our overall portfolio. And we have a robust repositioning and development pipeline representing roughly $50 million of NOI poised to come online over the next two-plus years, which serves as a powerful offset to current market rent resets. Furthermore, we are aggressively optimizing our capital allocation by selling non-core assets and redeploying those proceeds into accretive share buybacks at attractive valuations. By pairing these actions with a lean approach to G&A, we are strengthening our cash flows while positioning us for outsized growth as the broader environment improves. In closing, a big congrats to John on his promotion. John, I truly appreciate your leadership and our continued partnership. Finally, on behalf of Laura, John, and myself, I want to extend our gratitude to the entire Rexford Industrial Realty, Inc. team for their ongoing dedication and consistent execution of our strategic goals. I will now turn the call back to the operator and open the line for questions.

Thank you. And at this time, I would like to remind everyone, in order to ask a question, simply press star then 1 on your telephone keypad. We will now open the call for questions. I will now hand the call back to Mikaela Lynch to begin the Q&A session.

Thank you, and good morning. Our first question comes from Craig Mailman from Citigroup. Craig, please go ahead.

Hey, good morning, everyone. Laura, you had mentioned that you are seeing some improvement that accelerated through the back end of the quarter. Can you talk about where you are seeing those pockets of strength in terms of your submarkets? I have heard John's comments on 3PLs and the Inland Empire West, but any other verticals or tenant types to call out as you are seeing some kind of continuing bottoming in the process in L.A.?

Yeah. Hey, Craig, this is John Nahas. I will jump in and take that. So overall, we have continued to see some consistent themes—construction-related uses, advanced manufacturing in certain submarkets as I mentioned in the prepared remarks, food and beverage. Those are themes that we saw active last quarter, and those continue this quarter across all markets. And then from there, there is really a bifurcation, whether we are talking about below 50 thousand square feet—where we continue to see a broad base of demand, just based on consumption in the infill markets—and then above 50 thousand square feet, it gets a little bit more submarket dependent. So while 3PL activity remains increased in the Inland Empire, it is not the only tenant activity we are seeing out there. It does go beyond a bit more, but it is really mixed and micro-market dependent. I think it is maybe helpful to talk a little bit about where we are today with activity compared to where we were last year. We saw the back half of 2025 show increased activity as compared to the first half of the year, where there was a bit more turmoil from tariffs and other macroeconomic impacts, and that produced some good volumes in the market. When we got to the fourth quarter, there were deals that were being executed, but what we did not see at the time was the early formation of the leasing pipeline. So there was slower touring activity, and as a result, this quarter we saw less conversion into executed deals, particularly around some of the Class A product. And I mentioned this in the prepared remarks as well. That is a pocket in a number of submarkets where we still do not see the same levels of demand recovery. There are exceptions to that. The South Bay market, in particular, is one to point out where Class A really fits the advanced manufacturing demand. I mentioned San Fernando Valley. There are certain pockets, particularly Santa Clarita Valley, where we see that tenant demand forming, as well as in San Diego. And then there have been some recent deals that hit the market in the Long Beach area where demand is forming as well. So it is really kind of across the board—feeling better. There is better sentiment in the market this quarter. We are seeing more signs of that early leasing pipeline starting to form, but we are watching it very closely in terms of how that is going to convert into executed deals, which we would expect to see happen over the next two to three months.

Thanks, Craig.

Our next question comes from Samir Khanal from Bank of America. Samir, please go ahead.

Thank you. Good morning, everybody. I guess, Laura, on the one hand, it looks like you are starting to see improvements in the market. You talked about tenant activity. But when I look at the development leasing side, it is still taking a bit longer. I guess maybe just reconcile the two items. Thanks.

John just touched on what we are seeing from a development perspective in terms of some of the drivers there, but just overall, Samir, what I would say is we are encouraged by the early signs of improvement—a pickup in activity. We are seeing increased tenant decision making and an increased level of lease executions, and that certainly varies by size, submarket, and product type. All that said, market fundamentals are under pressure. Net absorption is negative and vacancy ticked up. So we take all these different dynamics into account. We do see the bottom forming of the cycle, and these are good early signs. As we look ahead, we expect and hope to continue to see quarters of improved incremental demand, and that is what is really going to be critical to net absorption turning positive in the market, vacancy moving down, and rates firming.

Thanks, Samir.

Our next question comes from Greg McGinniss from Scotiabank. Greg, please go ahead.

Hey. Good morning. I am curious who you are finding as buyers for the dispositions, whether those are in-place assets or ones that are coming from the redevelopment pipeline, and what types of cap rates are being achieved on those.

Yeah. Hi, Greg. This is John. So if you look at what we sold in the first quarter as an example, there are really two buckets. There are the development sites that we sold, and the buyer profile for that tends to be merchant developers that are well known in the region and good groups that develop product here. Those deals do not really trade on a cap rate basis. It is more about land basis that supports their underwriting targets. And then the other half of the sales that completed were operating assets that were sold to users, and so that pricing there represents pretty strong cap rates. On a blended basis, we were below 4% this quarter with the three assets that we sold to users. The reason for that is the users do not really look at it from a cap rate basis; they are looking at it from a dollar-per-square-foot standpoint. There are other considerations that drive that demand, such as some of the accelerated depreciation benefits that they now have, not only from the real estate but investments that they are making into fixturization and equipment. Right now in the market overall, we are still seeing low transaction volume, and it presents this opportunity for users to continue to be active, and so we are capitalizing on that where it generates these low cap rates that allow us to accretively recycle capital. We actually had a couple of repositioning projects that I mentioned in my prepared remarks where we have shifted gears on strategy to take advantage of interest in the market. So we are going to continue to do that where we see low cap rate opportunities that will allow us to collect those proceeds and put them to work at higher yields.

Thank you, Greg. Our next question comes from Michael Griffin from Evercore. Michael, please go ahead.

Just wondering if you can give us some more color on where market rents are. I realize it can be submarket by submarket, but maybe for the portfolio broadly. Rents signed in the quarter were, call it, in the mid-$15 range, but you have $18 rents expiring for the rest of the year. If you kept your net effective and cash mark-to-market guidance the same—which I believe on a cash basis is 0% to down 5%—does that imply the rents you are signing on those expiring leases are going to come in in the mid-$16 range? Is it $17? Just help us contextualize where market rents are and the expectations for the rest of the year. Thank you.

Yeah. Our expectations for releasing spreads have not changed since last quarter. On a net effective basis, they are going to be between 5% and 10%, and on a cash basis, flat to negative 5%. As we disclosed last night, Tireco did have a disproportionate impact on releasing spreads this quarter. As we move throughout the remaining part of the year, we do expect releasing spreads to reaccelerate into the back half of this year.

Thanks, Michael. Our next question comes from Michael Mueller from JPMorgan. Michael, please go ahead.

Yeah, hi. If you continue to buy stock back like you did in the first quarter, would it likely be coupled with an increase in disposition activity?

Hi, Michael. Good morning. Yeah, look, buybacks are tied to disposition activity. Our expectations for this year are between $400 million and $500 million. To date, we have about $145 million already closed and another $170 million under contract. We view buybacks through an opportunistic lens. When we see a disconnect between our intrinsic value and the current market price, we are going to lean in. We demonstrated this approach over the last six months. We have $500 million remaining on the program. In terms of appetite, it is obviously share-price sensitive, balanced with ensuring we maintain our low leverage of 4.5x and other competing uses of capital.

Thanks, Michael. Our next question comes from John Kim from BMO. John, please go ahead.

Thanks, Mikaela. Just on the buybacks, you certainly make a compelling case to continue it. But looking at the market's reaction today and year to date, it does not seem like you are really being rewarded for it. So I am wondering, if this thing continues, would you consider pausing buyback activity?

Hey, John. Thanks so much for the question. At the foundation of how we are allocating capital is directing capital to the highest risk-adjusted returns and where we can drive FFO per share, NAV per share, and shareholder value and growth. We are going to continue to assess where those opportunities are. As Fitz mentioned, when you look at the disconnect between our intrinsic value and where the stock is trading, that has been a compelling use of capital to date. So we will continue to assess that, as well as opportunities to invest within our value-creation platform through our repositionings and select developments as we move through the year.

Thanks, John.

Our next question comes from Vince Tibone from Green Street. Vince, please go ahead.

Hi, good morning. I wanted to dive into the leasing activity you mentioned was at a record high. Looking at the stuff, it looks like it is mostly driven by renewals and then the Tireco lease being a part of that. Outside of Tireco, are you generally trying to do more early renewals than in the past? Spreads have held up a little better there. Just trying to get a sense of your strategy on the renewal side in a softer market. Are you going after more renewals as a way to help retention or hold up better on the rent side of things? Curious about your approach.

Yeah. Hi, Vince. This is John. As you noted, the Tireco transaction did help lift the overall leasing volumes. Beyond that, there are a number of deals that were made across various unit sizes across our portfolio. When it comes to renewals and retention, we are prioritizing that where we can. It is part of our overall strategy to prioritize occupancy. I will say that tenants in today's market—depending on the size range and depending on the submarket—might have more options that work for them. Part of the activity levels we are seeing with tenant touring is being driven by tenants evaluating what is available in the market relative to the space they currently have. When we see that happening, we are proactive in engagement and, in some cases, trying to preempt that exercise. That was part of the strategy with the Tireco renewal, as I mentioned. Our numbers show that. Our retention is up a bit, and renewals are making up a slightly higher component of our overall leasing activity in the quarter, which is a result of that approach.

Thanks, Vince. Our next question comes from Vikram Malhotra from Mizuho. Vikram, please go ahead.

Good morning. Thanks for taking the questions. I had one clarification and then a broader question. First, you mentioned sort of the leasing dollar ramp up. I am wondering if you can give us a square footage target you have to put to keep the core portfolio occupancy, and then how much you need to lease square footage-wise for the development portfolio to meet your goals? And then a bigger picture question: clearly you are selling attractively and buying back stock, but is there a thought to take a deep dive into the portfolio, maybe identify markets or submarkets you do not want to be in long term, and take advantage right now by doing a bigger sale, a $1 billion sale, or a mini-portfolio sale where you position this portfolio for the long run? Thanks.

Sure. Good morning, Vikram. In terms of square footage that we expect to commence as it relates to our guidance, between 8 million and 8.5 million square feet this year, which includes about 1 million square feet from our repositioning and development.

In regards to your question on additional dispositions, we do continually assess the portfolio. We are looking to identify additional opportunities to build a more resilient and higher-growth platform and portfolio going forward. We are assessing risk, we are assessing capital needs, and we are assessing product that aligns with our ability to drive true value creation and differentiated growth. Importantly, as is contemplated in our current disposition guidance for the year, we are focused on recycling capital on an accretive basis that enables us to drive FFO and NAV per share growth.

Thanks, Vikram. Our next question comes from Richard Anderson from Cantor Fitzgerald. Richard, please go ahead.

Thanks. Good morning. I wanted to ask a broad question around some of the tangential demand factors around advanced manufacturing and data centers and even, in your case, aerospace and defense being a potential lightning rod of demand in Southern California, and how that manifests itself in your smaller-format consumption-oriented platform. Is there a dotted line, a straight line, a dark line to your business from these outside demand factors, or do you feel it directly in your leasing process? Thanks.

Yeah. Hi, Richard. Data centers are not really a core component of our business. There are a lot of power demands that come with that, and so that one is not something that makes up a material opportunity for our portfolio. When it comes to advanced manufacturing, the answer is yes—it is a very bold, connected line. We see that demand being applied to spaces both large and small. The property I mentioned in the prepared remarks, Storm Parkway—pretty close to our average unit size—represents the typical unit in the Rexford Industrial Realty, Inc. portfolio, and we leased that to an advanced manufacturer. It is important to note there are different facets and layers to this sector. Some of them are the biggest household names that everyone recognizes, and then there are all the vendors and service providers that come with that industry. We see a lot of demand, especially in the South Bay markets, specifically the coastal portions of that market, where there is demand across all those ranges. We have executed deals with the household names, and we have been very happy with the level of demand that ranges from some of our smallest units in that market—going down to 5 thousand square feet that are a little bit more incubator type—up to things like Storm and beyond. Even Western, which we stabilized last year, which is a Class A development we delivered in Torrance, fits into that category. So it is a very relevant and active sector. As I mentioned, we see this demand in other pockets of San Fernando Valley, San Diego, and now a little bit in Long Beach and a little bit in Orange County. We spend a lot of time focused on the demand that comes from that sector in the market and have had some success to date. We are pretty pleased by it.

Thanks, Richard.

Our next question comes from Brendan Lynch from Barclays. Brendan, please go ahead.

Great. Good morning. Thanks for taking the question. Maybe talk about the long-term plan for the Tireco asset. I would imagine getting the lease renewal makes it easier to dispose of if you so choose, and it does not really fit in with the rest of your portfolio. How should we think about that going forward?

Hi, Brendan.

Our focus was on addressing the lease roll for next year as we thought about structuring that renewal, so it is not really a read-through to any longer-term strategic plan for that asset.

Thanks, Brendan.

Our next question comes from Baird. Please go ahead.

Hey, good morning out there. I was hoping to unpack the decline in lease term signings during the quarter—if there is anything specific to call out there. You would think if tenants were seeing an inflection point or a bottoming-out phase, they would be seeking a little bit more term and lock in favorable terms. Is this a strategy that Rexford Industrial Realty, Inc. is pursuing to weather the near term and kick out for a cycle in, say, 2029 and beyond? Is there anything worth highlighting within the lease term, or are we just reading through one print and there is some hodgepodge numbers in there?

Yeah. Hi. It really depends. There are tenants in the market who are trying to capitalize on current market rate levels and lock them up for longer periods of time, and in some cases, that might be the best decision to meet that requirement and do that deal. In others, we may proactively try to shorten terms strategically so that we can get to a reset moment if we believe that is going to come in the next few years. Tireco is a good example of that. We chose to limit that term on the extension to three years. It really depends on competitive supply and how much leverage there is on each side of the table for each situation. In terms of the overall statistics for the activity that we converted in the first quarter, it also comes down to size. The mix of units that falls into our volume can have an impact. Generally speaking, the smaller units in our portfolio on average tend to have shorter terms anyway, so that is impacting the number as well.

Thanks. Our final question comes from Wells Fargo. Please go ahead.

Yes. Thank you. Good morning out there. I wanted to go back to rent a little bit. It looks like the pro forma targeted rent in your redevelopment portfolio seems to be a little bit higher than current market rent. Is that part of a mix issue, or is there some type of rent growth that is baked into that pro forma?

No. That has to do with the mix issue.

Thank you.

That concludes the Q&A portion of our earnings call. I would now like to turn the call over to Laura Clark for closing remarks.

Thank you all for joining us today. We look forward to spending time with you throughout the quarter, and I hope everyone has a wonderful weekend.

Thank you. Ladies and gentlemen, this concludes today's conference call. You may now disconnect.