– Industrial Property Acquisition within Prime
Infill Southern California Submarket –
– Year-to-Date Investments total $1.1
Billion –
LOS
ANGELES, July 24, 2023 /PRNewswire/ -- Rexford
Industrial Realty, Inc. (the "Company" or "Rexford Industrial")
(NYSE: REXR), a real estate investment trust focused on creating
value by investing in and operating industrial properties located
throughout infill Southern
California, today announced the acquisition of an
industrial property for a purchase price of
$210 million. The acquisition was funded using proceeds
from forward equity settlements of which the Company now has
approximately $448 million remaining for settlement.
"Our year to date investment activity demonstrates Rexford
Industrial's unique ability to leverage our proprietary market
access and value-creation strategies to drive accretive cash flow
and net asset value growth within our infill Southern California market, the nation's
largest and highest-demand industrial market," stated Howard
Schwimmer and Michael Frankel, Co-Chief Executive
Officers of the Company. "We continue to take a highly
selective approach to capital allocation, demonstrated by the
quality of our investments to date and our acquisition pipeline
comprising $50 million of additional
acquisitions under contract or accepted offer. In addition to the
Company's favorable external growth profile, we continue to
capitalize upon opportunities to drive substantial internal cash
flow growth through our nine million square feet of value-add
repositioning and redevelopment projects embedded within our
portfolio and through the conversion of our substantial
mark-to-market for in-place rents as we roll below-market leases to
higher market rates. The Company maintains a fortress-like,
low-leverage balance sheet designed to maximize our ability to
deliver long-term value creation for our stakeholders."
The Company acquired 9400 Santa Fe Springs Road, Santa Fe Springs, located in the LA –
Mid-Counties submarket for $210
million, or $353 per square
foot. Situated on 22.4 acres and 100% leased to two tenants, the
595,304 square foot building delivers a high degree of
functionality within a submarket demonstrating an extreme scarcity
of similar size and quality available product. The investment
generates an initial unlevered cash yield of 5.0% projected to grow
to an unlevered stabilized cash yield on total investment of 6.2%
through re-leasing at market rents and contractual annual rent
increases of 4.0%. According to CBRE, the vacancy rate in the 105
million square foot LA – Mid-Counties submarket was 1.0% at the end
of the second quarter 2023.
About Rexford Industrial
Rexford Industrial creates value by investing in, operating and
redeveloping industrial properties throughout infill Southern California, the world's fourth
largest industrial market and consistently the highest-demand,
lowest supply market in the nation. The Company's highly
differentiated strategy enables internal and external growth
opportunities through its proprietary value creation and asset
management capabilities. Rexford Industrial's high-quality,
irreplaceable portfolio comprises 368 properties with
approximately 45.1 million rentable square feet occupied
by a stable and diverse tenant base. Structured as a real estate
investment trust (REIT) listed on the New York Stock Exchange under
the ticker "REXR," Rexford Industrial is an S&P MidCap 400
Index member. For more information, please visit
www.rexfordindustrial.com.
Forward-Looking Statements
This press release may contain forward-looking statements within
the meaning of the federal securities laws, which are based on
current expectations, forecasts and assumptions that involve risks
and uncertainties that could cause actual outcomes and results to
differ materially. Forward-looking statements relate to
expectations, beliefs, projections, future plans and strategies,
anticipated events or trends and similar expressions concerning
matters that are not historical facts. In some cases, you can
identify forward-looking statements by the use of forward-looking
terminology such as "may," "will," "should," "expects," "intends,"
"plans," "anticipates," "believes," "estimates," "predicts," or
"potential" or the negative of these words and phrases or similar
words or phrases which are predictions of or indicate future events
or trends and which do not relate solely to historical matters.
While forward-looking statements reflect the Company's good faith
beliefs, assumptions and expectations, they are not guarantees of
future performance. For a further discussion of these and other
factors that could cause the Company's future results to differ
materially from any forward-looking statements, see the reports and
other filings by the Company with the U.S. Securities and Exchange
Commission, including the Company's Annual Report on Form 10-K for
the year ended December 31, 2022. The
Company disclaims any obligation to publicly update or revise any
forward-looking statement to reflect changes in underlying
assumptions or factors, of new information, data or methods, future
events or other changes.
Contact:
investorrelations@rexfordindustrial.com
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SOURCE Rexford Industrial Realty, Inc.