Greetings. Welcome to the Rexford Industrial Realty third quarter 2018 earnings call. At this time, all participants are in listen only mode. A brief question and answer session will follow the formal presentation. If anyone should require operator assistance during the conference, please press star 0 from your telephone keypad. As a reminder, this conference is being recorded. I would now like to turn the conference over to investor relations.
We would like to thank you for joining us for Rexford Industrial's third quarter 2018 earnings conference call. In addition to the press release distributed yesterday after market close, we have posted a quarterly supplemental package with additional details on our results 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 are usually identified by the use of the words such as anticipates, believes, estimates, expects, intends, may, plans, projects, seeks, should, will, potential, predicts, and variations of such words or similar expressions. Forward-looking statements address matters that are subject to risks and uncertainties that may cause actual results to differ from those discussed today. Examples of forward-looking statements include those related to revenue, operating income, or financial guidance.
As a reminder, forward-looking statements represent management's current estimates. Rexford Industrial assumes no obligation to update any forward-looking statements in the future. We encourage listeners to review the more detailed discussions related to these forward-looking statements contained in the company's filings with the SEC. In addition, certain of the financial information presented on this call represents non-GAAP financial measures. The company's earnings release and supplemental information package, which were released yesterday afternoon and are available on the company's website, present reconciliations to the appropriate GAAP measure and an explanation of why the company believes 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, Adeel Khan. 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.
Thank you. Welcome to Rexford Industrial's third quarter 2018 earnings call. I will start with a summary of our operating results and some perspective on our go-forward market opportunity. Howard will then cover our recent acquisition activity as well as an update on our repositioning project. Adeel will follow with more details on our financial results and our guidance. We will then open the call for your questions. We are pleased to report strong results that demonstrate our team's continued execution of our value-driven strategy, capitalizing upon the sustained strength of the infill Southern California industrial market. Specifically, company share of core FFO grew by 44% year-over-year, driven by strong 26% top-line revenue growth and $504 million in acquisitions completed over the prior 12 months. On a per share basis, core FFO was $0.28, up 12% year-over-year.
We generated exceptional same-property NOI growth of 12.6% on a GAAP basis and 14.8% on a cash basis. After netting out the impact of repositioning, our stabilized same-property NOI grew 8.7% on a GAAP basis and 11.6% on a cash basis. Stabilized same-property portfolio occupancy ended the quarter at 98.4%. Our leasing spreads continue to reflect historic levels of tenant demand with 32.2% spreads on a GAAP basis and 21.1% on a cash basis. Leasing volumes also remain strong with 106 leases signed during the quarter for a total of 944,000 sq ft. Our retention rate this quarter was 55%, reflecting our strategy to trade some incremental retention for substantially higher rents with little downtime. As a result, on new leases, we achieved GAAP leasing spreads of an impressive 47%.
Market conditions within our infill Southern California industrial markets continue at unprecedented levels of high tenant demand and record low availability, with overall market vacancy continuing at below 2%. Our infill markets are truly differentiated as we continue to see a net reduction in supply with more product removed from the market than can feasibly be constructed over time. We don't have to look far to see very different supply-demand fundamentals, with cyclical new supply and availability increasing in many other major industrial markets. With regard to tenant demand, we see no relief in sight for the deep supply-demand imbalance within the infill Southern California market, particularly as the dramatic growth in e-commerce and the push for shorter delivery timeframes continue to drive sustained incremental demand growth into the foreseeable future.
Our warehouses provide not only the first stop for goods emanating from the nation's two largest ports, but also serve as the last stop or last mile, fulfilling directly to consumers, businesses, and retailers within the largest regional zone of consumption in the nation. In fact, California is now the fifth largest economy in the world measured by GDP, surpassed only by the entire United States, China, Japan, and Germany. California's share of the national economy grew from 12.8% to 14.2% from 2012 to 2017. Southern California accounts for over half of our state's GDP. Further, infill Southern California industrial valuation metrics are in a class by themselves. Rental rates are over 90% higher on average than the next 10 largest markets, and market cap rates are comparatively low, reflecting superior long-term tenant demand fundamentals.
Consequently, the implied value of our infill Southern California industrial market equals the value of about the next five largest U.S. markets combined. While we probably don't need to debate the extraordinary quality and size of the infill Southern California industrial market, I'd like to focus briefly on Rexford's tremendous growth opportunity before us. Although we have grown our portfolio nearly fourfold since our July 2013 IPO, with sector-leading total shareholder returns of 163%, our 20.6 million sq ft portfolio currently only represents about 1% market share in Southern California. Looking forward, we are positioned for continued high-quality accretive growth driven by the following key factors. To begin with, the quality and depth of our investment pipeline continues to increase as we leverage our extensive originations research and decades of market relationships to capitalize on the extreme size and fragmentation of our infill SoCal markets.
Consequently, about 60%-70% of our transactions continue to be generated through off-market and lightly marketed opportunities, which have translated into better economics and substantially better than core unlevered cash yields. We are also hyper-focused on creating and adding value wherever possible. Not only do our research-driven originations efforts enable a substantial volume of value-add investments, but we are also deploying our extensive team of construction, leasing, and asset management specialists to create value at every stage of the ownership life cycle on a space-by-space, property-by-property basis throughout our portfolio. The above-market cash yields achieved on our value-add repositioning projects and our sector-leading re-leasing spreads demonstrate our capacity for value creation and our ability to capitalize upon the 3.4 million square feet of expiring leases through the end of 2019, which are estimated to be about 15% below market.
With over 1 billion square feet within infill Southern California built prior to 1980, we have a deep well of value creation opportunities available to us. Finally, we are positioned to capitalize on emerging market opportunities with a potent low-leverage balance sheet comprising a debt-to-EBITDA ratio of 3.8 times and a net debt to enterprise value of 15.3%. Our capital structure represents our long-term commitment to maintain a low-leverage balance sheet as an integral part of our business model. In fact, we've now completed nine consecutive quarters with our debt-to-EBITDA ratio well below six times, and we intend to maintain this ratio below six times. On a related note, we are pleased to advise that our investment-grade rating was increased to BBB with a stable outlook as reported by Fitch Ratings this week, which further validates the strength of our business model.
Most importantly, we'd like to thank and acknowledge the entire Rexford team. It is your tireless work, dedication, and entrepreneurial creativity that enable our extraordinary growth. With that, I'm now very pleased to turn the call over to Howard.
Thanks, Michael. Thank you everyone for joining us today. Our infill Southern California industrial markets continue to differentiate themselves with superior demand and supply fundamentals as we move through this cycle. Our target markets, excluding the Eastern Inland Empire, ended the third quarter at 98.2% occupancy, with asking rents up 4.7% on a weighted average basis over the past 12 months. Infill Southern California industrial continues to benefit from strong growth in demand combined with a shrinking supply due to an accelerating conversion of industrial property to other uses. These factors have produced long-term sustained rental growth. Looking forward, unlike past cycles, today there is virtually no land available to deliver the new supply needed to meet demand, fueling further pressure on rent growth. While we are certainly a beneficiary of these sustained strong market fundamentals, Rexford does not rely solely on market tailwinds for our growth.
As Michael stated, we are uniquely positioned within a market with nearly 1 billion square feet of industrial space built before 1980, much of which has been passively managed and undercapitalized for decades. Core to our strategy is curing functional obsolescence to unlock value as we deliver modernized space back to market. We believe our team's single-market focus and unique approach to sourcing and repositioning industrial property at accretive returns may allow us to produce sustained outperformance throughout market cycles, continuing to position us to generate long-term value creation for our shareholders. Moving on to our recent transaction activity. Since the start of the third quarter, we've completed four acquisitions of high-quality industrial product for a total of $43.8 million, bringing year-to-date acquisitions to $371 million, adding approximately 2.3 million square feet to our portfolio. Two-thirds of acquisitions for the year have been off-market or lightly marketed transactions.
We continue to benefit from our internal research efforts as well as our deep local relationships as we capitalize on attractive investment opportunities in our target markets. In July, we acquired Norwalk Boulevard in the Mid-County sub-market for $10.8 million. The 100% leased 53,000 square foot high image property is 24-foot clear with seven dock-high loading positions. The current rent is estimated to be 13% below market, with an initial yield of 4.3%. In July, we acquired Avenue Sherman in the Greater San Fernando Valley sub-market for $9.5 million. The 68,000 square foot single tenant building is currently vacant. After moderate cosmetic and functional upgrades, we will deliver a modern 26-foot clear building to a very supply constrained market. We project to achieve a 5.2% stabilized yield on costs. Also, we acquired Carmenita Road in the Mid-County sub-market for $13.3 million in an off-market transaction.
The 109,000 square foot building is currently leased by one tenant at rates estimated to be 26% below market. The property is designed to accommodate two tenants, and we plan to implement cosmetic and functional improvements at December lease roll to reposition the building for two-tenant occupancy at substantially higher expected rents. The projected stabilized yield on cost is 5.6%. Subsequent to quarter end, we acquired Rocky Point in the North San Diego sub-market for $10.2 million. The three-tenant, high quality buildings totaling 74,000 square feet are 31% occupied, and we project a 5.7% yield on cost upon stabilization. Looking ahead, our pipeline of acquisitions under LOI or contract totals approximately $194 million. These acquisitions are subject to completion of due diligence and satisfaction of customary closing conditions, and we will provide more details as transactions are completed.
Regarding our disposition activity, we sold $38 million of assets year to date and continue to mine the portfolio for opportunities where we feel value has been maximized or we can realize outsized returns. We are presently marking buildings for sale totaling 441,000 square feet, with projected sales consideration totaling approximately $182 million. These sales are subject to customary closing conditions, and there can be no assurance that they will close. We'll update you when sales are completed. Now I'd like to update you on a few of our repositioning projects, where our platform continues to create significant shareholder value. We're pleased with the progress we have made both in the execution and lease up of our repositioning pipeline. Specifically, we've achieved 100% occupancy at our 134,000 square foot port adjacent 14-unit Figueroa project. The stabilized yield on the project increased slightly to 7.8%.
We are 85% leased at our 200,000 sq ft Nelson project in the San Gabriel Valley, leasing 12 of 15 spaces in only four months at higher than projected rents. The projected stabilized yield has increased from 7.4% to 8%. We pre-leased the 112,000 sq ft single tenant Avenue Paine building in the San Fernando Valley sub-market. The repositioned 30-foot clear building was stabilized at a 6.1% yield on cost. We are also pleased to report that our 57,000 sq ft Surveyor Avenue new development project in Ventura County was 100% pre-leased to an e-commerce tenant, with delivery expected in January of 2019. We outperformed projected rent, increasing the previously projected 5.3% yield on cost to 5.7%. We continue to take advantage of our opportunity to be a consolidator in what we believe is the strongest industrial market in the country.
Our data-driven acquisition platform and local sharpshooter expertise allow us to catalyze a volume of investment opportunities not available to many competitors. Our in-house redevelopment team unlocks maximum value from each acquisition we make. I'll now turn the call over to Adeel.
Thank you, Howard. Beginning with our operating results. For the third quarter 2018, net income attributable to common stockholders was approximately $6.3 million, or $0.07 a fully diluted share. This compares to $600,000 or $0.01 a fully diluted share for the third quarter of 2017. For the three months ended September 30, 2018, company share of Core FFO was $26.1 million as compared to $18 million for the three months ended September 30, 2017. On a per share basis, company share of Core FFO was $0.28 per fully diluted share, representing a 12% increase year-over-year. Core FFO per share increased to our strong acquisition activity completed in the past 12 months and same property portfolio growth, which was partially offset by higher diluted share count.
Same property NOI was $28.8 million in the third quarter, which compares with $25.6 million for the same quarter in 2017, an increase of 12.6%. Our same property NOI was driven by a 10.3% increase in total rental revenue and a 3.6% increase in property operating expenses. On a cash basis, same property NOI increased by 14.8% year-over-year. Stabilized same property NOI growth net of the impact of repositioning was 8.7% in the third quarter on a GAAP basis and 11.6% on a cash basis. Turning now to our balance sheet and financing activity. We continue to diversify our capital sources, optimize our cost of capital, and maintain balance sheet flexibility as we grow our business over the long term.
During the third quarter, we issued approximately 1.5 million shares of common stock through our ATM at a weighted average price of $31.79 per share, which resulted in net proceeds to Rexford of approximately $46.7 million. We utilized these funds to fund our acquisition for working capital and other corporate purposes. At the end of the quarter, we had $183.9 million of cash, full availability on our $350 million credit facility and approximately $194.1 million available under the $400 million ATM program. We have no debt maturities through 2021, with our next maturity being our $100 million term loan in 2022. With regard to our dividend, on October 29, our board of directors declared a cash dividend of $0.16 per share for the fourth quarter of 2018, payable on January 15, 2019, to common stock and unit holders of record on December 31, 2018.
Our board of directors declared a preferred stock cash dividend of approximately $0.37 per share for the fourth quarter of 2018, payable on December 31, 2018, to our preferred stockholders as of December 14, 2018. We're increasing our full-year 2018 guidance for company share core FFO to a range of $1.08-$1.10 per share from our previous range of $1.05-$1.07 per share. This was driven by our strong acquisition activity as well as better than expected portfolio NOI growth so far this year. Specifically, we now expect same property NOI growth to range from 9.5%-10.5%, up from our previous range of 8%-9.5%. We expect stabilized same property NOI growth in a range of 7%-8%, up from our previous range of 5.5%-7%.
For G&A, we're tightening our guidance to a range of $24.8 million-$25 million, including about $8.5 million of non-cash company-wide equity compensation. Please note that our guidance does not include the impact of any transactions or capital market activities that have not yet been announced, nor acquisition costs or other costs that we typically eliminate when calculating this metric. That completes our prepared remarks. With that, we'll open the line to take any questions. Operator?
Thank you. If you would like to ask a question today, please press *1 on your telephone keypad, and a confirmation tone will indicate your line is in the question queue. You may press *2 if you would like to remove your question from the queue. For participants that are using speaker equipment, it may be necessary to pick up your handset before pressing the star keys. One moment please, while we poll for questions. Thank you. The first question comes from the line of Manny Korchman with Citigroup. Please proceed with your questions.
Hey, guys. You mentioned the $194 million near-term pipeline. Over what time period do you expect, or could we expect for that to all close?
Hi, Manny, it's Howard. Yeah, I mentioned we had $194 million worth of transactions. We generally don't give guidance on what the timing is. We're pretty excited about what we have lined up, these are not typically transactions that take months and months to close. That's not typically how we've reported on the pipeline. I can't tell you specifically, but hopefully that info helps.
Great.
Manny, this is Adeel. Just to add one further comment. Obviously, with the capital that we have on the books, we further always think through how best to deploy that capital in terms of timing-wise. That also should add a little bit more color in terms of what Howard added just now.
Got it. In terms of given the tight leasing markets, I was wondering if there's been any changes in lease terms or bumps or anything else, sort of from lease economics that you've been able to push tenants on given their lack of other options.
Well, I think our example of mentioning some of the updates on our repositioning projects are really the most telling about the market. We're pre-leasing buildings before they're done. We leased up that Nelson project 85% in only four months. In that particular project, we're pushing rents in terms of the increases. We're getting 4% increases on an annualized basis. We're trying to push on a few of the other projects as well. Yeah, the market's still tight as a drum. There's not a lot of quality product out there. The results we're showing are really emblematic of what's happening throughout the market.
Thanks, guys.
Our next question is from the line of Blaine Heck with Wells Fargo. Please proceed with your question.
Thanks. Hey, guys. Michael, I just wanted to go back to your last point in the prepared remarks, which I thought was worded interestingly. You talked about capitalizing on emerging market opportunities. I think you were referring mostly to your balance sheet capacity, but I wanted to focus on the emerging market opportunities. I guess, are there any segments of the market that you guys think are going to be particularly strong areas of growth for you guys that maybe you guys aren't taking advantage of now? Similarly, any additional markets or sub-markets that you guys would look to expand into?
Hey, Blaine. Yeah, thanks for the question. Look, generally speaking, I think our focus remains consistent. We're going to stay focused on the same markets that you see us investing in consistently. Greater L.A., Orange County, the Ontario area. That represents well over 70% of our portfolio and probably should represent the lion's share of our acquisitions going forward. It's not as if there's a specific emerging geographic opportunity within the infill markets. Really more referring to the quality of our pipeline. Frankly, that's a testament to the research-driven originations methods that we've been deploying here for 15 years or so, and been able to invest in those processes in an accelerated fashion since we went public about five and a half years ago. Today, we're in a very unique position to benefit from the cumulative impacts of all that research and relationships in the market.
Frankly, the quality of our pipeline today is far better than it was two years ago or three years ago because of all the work that we've been doing in the marketplace. Although literally every week we're seeing new opportunities to consider, our primary source, our largest source of new investments is through the mining of our existing pipeline of opportunities in our workflow system, which I know you guys have seen. Really, it's just a testament to the work here at Rexford. We do have a very active pipeline, as Howard mentioned. It's not as if we see an incremental opportunity that we haven't really shared with you in the past. It's just the consistent strategy that we've always expressed. We're just getting better, we're digging deeper, and I think we're going to see the results.
Great. Very helpful. Then, just looking at the reposition properties that have stabilized over the past few years, they've stabilized at a kind of 5.5%-8% yield. Obviously, there's been upward pressure and movement in land and construction costs. Have you guys seen any signs that this could cause a little bit of a decrease in the yields you guys can generate? Or has the growth in rents been strong enough that we should expect a similar range on the properties that are currently under repositioning?
Well, hi, Blaine. It's Howard. It's hard to predict quarter to quarter really what those opportunities will be. If you look at our repositioning page, the assets on there have an aggregate blended yield of about 6.6%. New opportunities that we're looking at today, I think fit into the range you were describing earlier, in the 5.5% and well north of six, seven cap rates. Just the timing and so forth in the markets and what we happen to unearth in any one quarter. The pipeline's fairly robust, and I think in terms of the percentages you see us quoting in the past in terms of what we buy, the vast majority, about half of what we buy tends to be what we call the core plus type assets.
We kind of bookend that with some core, and then on the other side, obviously, the value-add transactions. The pipeline, in terms of its deals under contract or LOI, seems to mirror those percentages.
Blaine, it's Michael. I'll just add to that because I think an important aspect of our ability to deliver those outsized above-market, call it better than core yields. Of course, when you have tailwinds, that helps. I think what's going to truly differentiate Rexford is that when those tailwinds, when those market tailwinds start to slow down, you're going to still see us continuing to create value. I think on average, the primary determinant of our ability to create value is our originations efforts, which Howard described, through the off-market, lightly marketed transactions. Our team is disproportionately focused on seeking and developing value-add opportunities. When we go to work to create physical value and intrinsic value in these assets, the value we're creating is more often than not dependent on market rent growth.
The work that we do with the properties, the ability to increase the cash flow generating ability of these properties without market rent growth is really a key to our business. I think as we move through the cycle, we're going to see that differentiate Rexford in an even greater way as we move forward.
Okay. Very helpful. Adeel, looks like you've got a couple of swaps expiring, one late this year, one early next year. I think the one later this year has been extended, but can you just touch on those and how you're thinking about those expirations?
Yeah, Blaine. As of right now, we have a $150 million term loan that is not swapped, and that puts us at about 80/20 swap for fixed to variable. I think we monitor the yield curve consistently. I think that's not a bad percentage to have in a portfolio, and obviously, it allows us some flexibility after a couple of years with that $150 million term loan. We're constantly monitoring it. I think we like to operate in this range. Previously, we've operated in about 92% swapped fixed range. We're not out of the zone. We're looking at those numbers consistently and trying to match that up to the yield curve and how we see that progressing, and we'll make the right decision, hopefully, for the company. Overall, I think we're in a really good spot in terms of where we ended the quarter.
Great. Thanks, guys.
The next question is from the line of John Guinee with Stifel. Please [inaudible] with your questions.
Great. Adeel, does Rexford remind you of your days at Maguire?
It does not whatsoever because I have a tape player that reminds me of those times, and I play it every morning when I get up.
Talk about 2020 Proposition 13 likely gets on the ballot, split roll, all that sort of thing. How's that work for you guys?
Hi, John. It's Howard.
Hi, Howard.
Well, there actually were enough signatures already obtained, and it's going to be on the 2020 ballot. Obviously, all the commercial landlords are going to throw a lot of weight behind defeating it.
In terms of our portfolio, we've bought our assets very recently. Keep in mind, five years ago, we had about five million feet. We're over 20 million feet today.
The majority of the assets were bought within the past couple of years. The market, let me call it on the tax side of it, isn't that dramatic anyway. Then you look at the lease structures we have, we could pass through literally almost 100% of those tax increases. There's only a handful of leases that limit us in our ability to pass through any increases. What we think of in terms of the impact to Rexford is really just maybe a short-term disruption in our ability to continue pushing rent higher.
Okay. Very fair. The next question is, how do you think land on a per FAR, per buildable foot is being valued in your various markets right now? Or is that something you guys don't look at? Is it over 50% of replacement cost yet, or is it still under 50%?
It's probably gone over 50%. Land values in Central Los Angeles, South Bay, even in some of the Orange County and Mid-County areas, there's land costs you're going to start seeing that are well above $60 a square foot. So you marry that to construction costs that are going to be in the, say, $40 to $60-plus square foot range, and yeah, your land basis is well over 50% of the building cost.
Great. Thank you very much. Keep up the good work.
Thanks.
The next question is from the line of Joshua Dennerlein with Bank of America Merrill Lynch. Please proceed with your question.
Hey, guys. Let me turn to the big picture. What's the latest on-the-ground feedback from leasing brokers? Are tenants getting nervous at all from tariffs, seeing any impact to their tenants' business?
Hey, Joshua, it's Michael. Thanks for connecting with us today. Good question. To date, we have really not seen any indication from our tenants whatsoever that they're changing their view on their space needs, resulting from anything in the economy or tariffs or the potential for changing trade flows. We have seen shifts in trade flows in the past. Frankly, we've had periods where the ports shut down in 2002, slowed down in 2014, both due to labor-related issues. Even during those periods, which were extreme in terms of the disruption of the movement of goods through the ports, we saw really no change, no hiccup in our tenants. I think the key there is, again, our tenants are consumption-driven. They're serving the largest zone of consumption in the nation by far. They're literally a stone's throw from the endpoints where they need to deliver goods.
The key for them is that infill location. The key to them is less where the goods come from. It's more about their ability to deliver in a timely fashion. Of course, those delivery times are shortening pretty dramatically. The space, in terms of value to these businesses, is pretty dramatically increasing despite the possibility for tariffs. We just haven't seen any indication whatsoever from the tenants.
Got it. Thank you, Michael. Maybe, I saw the retention ratio fell this quarter. Any thoughts on how that might feed into your ability to push rent going forward in the next few quarters?
Yeah, actually, the story behind the retention rate is a great indication of our ability to push rents because, for example, if it weren't for one 112,000 sq ft space in the South Bay, which we could have extended, the tenant was about $0.52. Instead, we let the tenant go. We didn't extend the tenant. We did a little bit of work in the space, upgraded to ESFR sprinklers, did some work on the office to modernize the office space. The work didn't take six months, so it didn't go into the repositioning pool, so it stayed in the measure pool for retention. Frankly, we're marketing that, and we have leases in play at $0.72. About a 42% mark-to-market or leasing spread on that. Frankly, if it weren't for even just that one space, if we kept that tenant, retention would have been at 70%.
There are a few other tenants with similar examples. The low retention is frankly a direct result of our deliberate strategy, to trade a little bit of retention for NAV growth, and to drive substantially higher rental rates and value. By the way, the incremental investment in that space relative, it's a substantial return on capital. It's payback in about two years, but a 42% annual return on the incremental investment. We love that map. I think the story behind that retention is really fundamentally our ability to drive rents.
Awesome. Thank you, Michael. Appreciate it.
Thank you.
Thanks.
We'll pause a moment for questions. Thank you. The next question is coming from the line of Chris Lucas with Capital One. Please proceed with your question.
Hi, guys. Just a quick sort of follow-up on the trade-related question. Just curious if you're hearing anything about the new NAFTA agreement that would impact sort of the demand side of the markets you're in.
Again, it might be early yet, but we really haven't heard or seen any indication from the tenants. I think the idea is to bring some more economic output back to the U.S., frankly. If that is a benefit to demand overall, that could be a benefit to us. We really haven't seen any indication of an impact.
Okay, great. That's all I had. Thank you.
Thank you. At this time, I'll turn the floor back to management for closing remarks.
On behalf of the entire team at Rexford, we'd like to thank everybody for joining us today, and we look forward to reconnecting next quarter.
Thank you. This will conclude today's teleconference. You may disconnect your lines at this time. Thank you for your participation.