What Rexford Industrial Realty, Inc. told the SEC could break it.

All 419 of Rexford's properties (~51.2M sq ft) are located in Southern California infill markets, concentrating its performance entirely in that region's economic, regulatory and social conditions.

“Concentration of Properties in Southern California As of December 31, 2025, all of our properties are located in the Southern California infill markets. The ability of the tenants to honor the terms of their respective leases is dependent upon the economic, regulatory and social factors affecting the markets in which the tenants operate and other conditions.”

Although no single tenant exceeds 2.4% of annualized base rent, Rexford's tenant base is concentrated in a few industries — Manufacturing (22.5%), Wholesale Trade (21.7%) and Transportation & Warehousing (21.6%) — making it susceptible to adverse events affecting those sectors.

“Our properties are concentrated in certain industries, which, as of December 31, 2025, included the following (and accounted for the percentage of our total annualized base rent indicated): Manufacturing (22.5%), Wholesale Trade (21.7%) and Transportation and Warehousing (21.6%).”

Rexford faces California property-tax/transfer-tax policy risk — LA's Measure ULA imposes a 4%–5.5% fee on property sales above $5M, and proposed ballot measures to remove Proposition 13 protections could significantly raise property taxes at its properties.

“Beginning on April 1, 2023, Measure ULA imposed an additional fee at the time of sale at a rate of 4% for properties between $5 million and $10 million and 5.5% for those $10 million or above. During 2025, we did not sell any of our properties located in the City of Los Angeles, and as such, we were not impacted by Measure ULA. Additional California ballot measure initiatives have sought the removal of Proposition 13 property tax protections, which proposals have not passed, but if successful could cause a significant increase in property taxes at our properties.”