LOS
ANGELES, April 17, 2024 /PRNewswire/ -- Rexford
Industrial Realty, Inc. (the "Company" or "Rexford Industrial")
(NYSE: REXR), a real estate investment trust ("REIT") focused on
creating value by investing in and operating industrial properties
throughout infill Southern
California, today announced financial and operating results
for the first quarter of 2024.
First Quarter 2024 Financial and Operational
Highlights:
- Net income attributable to common stockholders of $58.6 million, or $0.27 per diluted share, as compared to
$57.9 million, or $0.30 per diluted share, for the prior year
quarter.
- Company share of Core FFO of $123.5
million, an increase of 20.3% as compared to the prior year
quarter.
- Company share of Core FFO per diluted share of $0.58, an increase of 11.5% as compared to the
prior year quarter.
- Consolidated Portfolio NOI of $163.5
million, an increase of 14.9% as compared to the prior year
quarter.
- Same Property Portfolio NOI increased 5.5% and Same Property
Portfolio Cash NOI increased 8.5% as compared to the prior year
quarter.
- Average Same Property Portfolio occupancy of 96.8%.
- Comparable rental rates increased by 17.3% compared to prior
rents on a GAAP basis and by 13.2% on a cash basis on 3.2 million
rentable square feet of new and renewal leases.
- Excluding the Tireco, Inc. lease extension, comparable rental
rates increased by 53.0% compared to prior rents on a GAAP basis
and by 33.6% on a cash basis.
- Completed 3.2 million square feet of acquisitions totaling
$1.1 billion.
- Ended the quarter with a low-leverage balance sheet measured by
a net debt-to-enterprise value ratio of 20.9%.
"Rexford continues to deliver exceptional value and accretive
cash flow growth generated by our entrepreneurial team and
value-driven strategy," stated Michael
Frankel and Howard Schwimmer,
Co-Chief Executive Officers of the Company. "Looking forward,
Rexford is well-positioned with extensive embedded and external
growth opportunities, positioning the Company to create significant
value for our stakeholders for years to come."
Financial Results:
The Company reported net income attributable to common
stockholders for the first quarter of $58.6
million, or $0.27 per diluted
share, compared to $57.9 million, or
$0.30 per diluted share, for the
prior year quarter. Net income in the prior year quarter included
$12.1 million of gains on sale of
real estate for which there was no comparable amount during the
first quarter of 2024.
The Company reported Core FFO for the first quarter of
$123.5 million, representing a 20.3%
increase compared to $102.7 million
for the prior year quarter. The Company reported Core FFO of
$0.58 per diluted share, representing
an increase of 11.5% compared to $0.52 per diluted share for the prior year
quarter.
In the first quarter, the Company's consolidated portfolio NOI
and Cash NOI increased 14.9% and 17.5%, respectively, compared to
the prior year quarter.
In the first quarter, the Company's Same Property Portfolio NOI
increased 5.5% compared to the prior year quarter, driven by a 5.5%
increase in Same Property Portfolio rental income and a 5.7%
increase in Same Property Portfolio expenses. Same Property
Portfolio Cash NOI increased 8.5% compared to the prior year
quarter.
Operating Results:
First quarter 2024 leasing activity demonstrates strong
tenant demand fundamentals within Rexford Industrial's target
Southern California infill
markets:
|
|
Q1-2024 Leasing
Activity
|
|
|
|
|
|
|
Releasing
Spreads
|
|
Releasing
Spreads
Excluding Tireco,
Inc.
Lease
Extension(1)
|
|
|
# of Leases
Executed
|
|
SF
of Leasing
|
|
GAAP
|
|
Cash
|
|
GAAP
|
|
Cash
|
New
Leases
|
|
50
|
|
830,941
|
|
41.3 %
|
|
31.2 %
|
|
41.3 %
|
|
31.2 %
|
Renewal
Leases
|
|
64
|
|
2,398,076
|
|
14.8 %
|
|
11.3 %
|
|
56.8 %
|
|
34.4 %
|
Total
Leases
|
|
114
|
|
3,229,017
|
|
17.3 %
|
|
13.2 %
|
|
53.0 %
|
|
33.6 %
|
|
(1)
|
Excludes the 1.1
million square foot lease extension with Tireco, Inc. at 10545
Production Avenue. The original Tireco, Inc. lease expiration date
was January 2025 and included a fixed rate renewal option. During
the first quarter of 2024, the lease was extended through January
2027 at the current in-place rent and includes a 4% contractual
rent increase in 2026 and two months of rent abatement. This lease
extension was excluded for comparability purposes, in order to
allow investors to make investment decisions based on our quarterly
leasing statistics as compared to our prior periods.
|
As of March 31, 2024, the
Company's Same Property Portfolio occupancy was 96.4%. Average Same
Property Portfolio occupancy for the first quarter was 96.8%. The
Company's consolidated portfolio, excluding value-add repositioning
assets, was 96.9% occupied and 97.8% leased, and the Company's
consolidated portfolio, including value-add repositioning assets,
was 92.8% occupied and 94.0% leased.
Transaction Activity:
During the first quarter of 2024, the Company completed
$1.1 billion in total investments
including 3.2 million square feet of buildings on 158 acres of
land. In aggregate, these investments are projected to generate a
weighted average unlevered initial yield of 4.8% and an unlevered
stabilized yield on total investment of 5.6%.
Subsequent to the first quarter of 2024, the Company
acquired:
- 4422 Airport Drive, Ontario,
located in the Inland Empire - West submarket, for
$26.7 million or $303 per square foot. The 88,283 square foot
building is 100% leased to two tenants and is generating a 5.5%
initial unlevered stabilized yield. According to CBRE, the vacancy
rate in the 347 million square foot IE - West submarket was 5.1% at
the end of the first quarter 2024.
In addition, the Company disposed of one property subsequent to
the first quarter of 2024 for a sales price of $10.0 million, which generated a 13.3% unlevered
IRR on investment.
During the first quarter of 2024, the Company stabilized two
repositioning projects, including two spaces totaling 38,021 square
feet, representing a total investment of $12.1 million. The projects achieved a weighted
average unlevered stabilized yield on total investment of
10.8%.
Balance Sheet:
The Company ended the first quarter with $337.0 million in cash on hand and $1.0 billion available under its unsecured
revolving credit facility. As of March 31, 2024, the Company
had $3.4 billion of outstanding debt,
with an average interest rate of 3.8%, an average term-to-maturity
of 4.2 years and no floating rate debt exposure. Including
extension options available at the Company's option, the Company
has no significant debt maturities until 2026.
In the first quarter of 2024, the Company executed the following
equity transactions:
- Completed a public offering of 17,179,318 shares of common
stock to an existing long-only investor based on the West Coast,
subject to forward equity sale agreements at a public offering
price of $48.95 per share for a gross
offering value of $840.9
million.
- Settlement of the remaining forward equity sale agreements
related to its May 2023 public
offering by issuing 2,253,034 shares of common stock for net
proceeds of $125.7 million.
- Settlement of the outstanding forward equity sale agreements
under its at-the-market equity offering program ("ATM Program") by
issuing 3,010,568 shares of common stock for net proceeds of
$164.5 million.
As of April 17, 2024, the Company had approximately
$837.1 million of net forward
proceeds remaining for settlement.
During the first quarter of 2024, the Company did not execute on
its ATM Program. As of March 31, 2024, the Company's ATM
Program had approximately $927.4
million of remaining capacity.
In March 2024, the Company issued
$575.0 million principal amount of
4.375% exchangeable senior notes due in 2027 and $575.0 million principal amount of 4.125%
exchangeable senior notes due in 2029. Net proceeds were
approximately $1.126 billion after
deducting the initial purchasers' discounts and commissions and
offering expenses. The 2027 Notes will mature on March 15, 2027, and the 2029 Notes will mature on
March 15, 2029.
Dividends:
On April 15, 2024, the Company's
Board of Directors authorized a dividend in the amount of
$0.4175 per share for the second
quarter of 2024, payable in cash on July 15,
2024, to common stockholders and common unit holders of
record as of June 28, 2024.
On April 15, 2024, the Company's Board of Directors
authorized a quarterly dividend of $0.367188 per share of its Series B Cumulative
Redeemable Preferred Stock and a quarterly dividend of $0.351563 per share of its Series C Cumulative
Redeemable Preferred Stock, payable in cash on June 28, 2024, to preferred stockholders of
record as of June 14, 2024.
Guidance:
The Company is updating its full year 2024 guidance as indicated
below. The Core FFO guidance refers to the Company's in-place
portfolio as of April 17, 2024, and does not include any
assumptions for additional acquisitions, dispositions or related
balance sheet activities that have not closed. Please refer to the
Company's supplemental information package for a complete detail of
guidance and 2024 Guidance Rollforward.
2024 Outlook
(1)
|
|
Q1 2024 Updated
Guidance
|
|
Initial
Guidance
|
Net Income Attributable
to Common Stockholders per diluted share
|
|
$1.17 -
$1.20
|
|
$1.11 -
$1.14
|
Company share of Core
FFO per diluted share
|
|
$2.31 -
$2.34
|
|
$2.27 -
$2.30
|
Same Property Portfolio
NOI Growth - GAAP
|
|
4.25% -
5.25%
|
|
4.0% - 5.0%
|
Same Property Portfolio
NOI Growth - Cash
|
|
7.0% - 8.0%
|
|
7.0% - 8.0%
|
Average Same Property
Portfolio Occupancy (Full Year) (2)
|
|
96.5% -
97.0%
|
|
96.5% -
97.0%
|
General and
Administrative Expenses (3)
|
|
+/- $83.0M
|
|
+/- $83.0M
|
Net Interest
Expense
|
|
+/- $99.0M
|
|
$60.0M -
$61.0M
|
|
|
(1)
|
2024 Guidance
represents the in-place portfolio as of April 17, 2024, and does
not include any assumptions for additional prospective
acquisitions, dispositions or related balance sheet activities that
have not closed.
|
(2)
|
Our 2024 Same Property
Portfolio is a subset of our consolidated portfolio and includes
properties that were wholly owned by us for the period from January
1, 2023 through March 31, 2024 and excludes properties that were or
will be classified as repositioning/redevelopment (current and
future) or lease-up during 2023 and 2024 (unless otherwise
noted).
|
(3)
|
2024 General and
Administrative expense guidance includes estimated non-cash equity
compensation expense of $35.5 million. Non-cash equity compensation
includes restricted stock, time-based LTIP units and performance
units that are tied to the Company's overall performance and may or
may not be realized based on actual results.
|
A number of factors could impact the Company's ability to
deliver results in line with its guidance, including, but not
limited to, the potential impacts related to interest rates,
inflation, the economy, the supply and demand of industrial real
estate, the availability and terms of financing to the Company or
to potential acquirers of real estate and the timing and yields for
divestment and investment. There can be no assurance that the
Company can achieve such results.
Supplemental Information and Updated Investor
Presentation:
The Company's supplemental financial reporting package as well
as an updated investor presentation are available on the Company's
investor relations website at ir.rexfordindustrial.com.
Earnings Release, Investor Conference Webcast and Conference
Call:
A conference call with executive management will be held on
Thursday, April 18, 2024, at
1:00 p.m. Eastern Time.
To participate in the live telephone conference call, please
access the following dial-in numbers at least five minutes prior to
the start time using Conference ID 9448082.
1 (800) 715-9871 (for domestic callers)
1 (646) 307-1963 (for international callers)
A live webcast and replay of the conference call will also be
available at ir.rexfordindustrial.com.
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 with
lowest-supply major 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 422 properties with approximately
49.2 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. In addition, projections, assumptions and
estimates of our future performance and the future performance of
the industry in which we operate are necessarily subject to a high
degree of uncertainty and risk due to a variety of factors,
including those described above. These and other factors could
cause results to differ materially from those expressed in our
estimates and beliefs and in the estimates prepared by independent
parties. 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, 2023, and other
filings with the Securities and Exchange Commission. 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.
Definitions / Discussion of Non-GAAP Financial
Measures:
Funds from Operations (FFO): We calculate FFO in
accordance with the standards established by the National
Association of Real Estate Investment Trusts ("NAREIT"). FFO
represents net income (loss) (computed in accordance with GAAP),
excluding gains (or losses) from sales of depreciable operating
property, gains (or losses) from sales of assets incidental to our
business, impairment losses of depreciable operating property or
assets incidental to our business, real estate related depreciation
and amortization (excluding amortization of deferred financing
costs and amortization of above/below-market lease intangibles) and
after adjustments for unconsolidated joint ventures. Management
uses FFO as a supplemental performance measure because, in
excluding real estate related depreciation and amortization, gains
and losses from property dispositions, other than temporary
impairments of unconsolidated real estate entities, and impairment
on our investment in real estate, it provides a performance measure
that, when compared year over year, captures trends in occupancy
rates, rental rates and operating costs. We also believe that, as a
widely recognized measure of performance used by other REITs, FFO
may be used by investors as a basis to compare our operating
performance with that of other REITs. However, because FFO excludes
depreciation and amortization and captures neither the changes in
the value of our properties that result from use or market
conditions nor the level of capital expenditures and leasing
commissions necessary to maintain the operating performance of our
properties, all of which have real economic effects and could
materially impact our results from operations, the utility of FFO
as a measure of our performance is limited. Other equity REITs may
not calculate or interpret FFO in accordance with the NAREIT
definition as we do, and, accordingly, our FFO may not be
comparable to such other REITs' FFO. FFO should not be used as a
measure of our liquidity and is not indicative of funds available
for our cash needs, including our ability to pay dividends. FFO
should be considered only as a supplement to net income computed in
accordance with GAAP as a measure of our performance. A
reconciliation of net income, the nearest GAAP equivalent, to FFO
is set forth below in the Financial Statements and Reconciliations
section. "Company Share of FFO" reflects FFO attributable to common
stockholders, which excludes amounts allocable to noncontrolling
interests, participating securities and preferred stockholders.
Core Funds from Operations (Core FFO): We calculate
Core FFO by adjusting FFO for non-comparable items outlined in the
"Reconciliation of Net Income to Funds From Operations and Core
Funds From Operations" table which is located in the Financial
Statements and Reconciliations section below. We believe that Core
FFO is a useful supplemental measure and that by adjusting for
items that are not considered by the Company to be part of its
on-going operating performance, provides a more meaningful and
consistent comparison of the Company's operating and financial
performance period-over-period. Because these adjustments have a
real economic impact on our financial condition and results from
operations, the utility of Core FFO as a measure of our performance
is limited. Other REITs may not calculate Core FFO in a consistent
manner. Accordingly, our Core FFO may not be comparable to other
REITs' Core FFO. Core FFO should be considered only as a supplement
to net income computed in accordance with GAAP as a measure of our
performance. "Company Share of Core FFO" reflects Core FFO
attributable to common stockholders, which excludes amounts
allocable to noncontrolling interests, participating securities and
preferred stockholders.
Reconciliation of Net Income Attributable to Common
Stockholders per Diluted Share Guidance to Company Share of Core
FFO per Diluted Share Guidance:
The following is a reconciliation of the Company's 2024 guidance
range of net income attributable to common stockholders per diluted
share, the most directly comparable forward-looking GAAP financial
measure, to Company share of Core FFO per diluted share.
|
2024
Estimate
|
|
Low
|
|
High
|
Net income
attributable to common stockholders
|
$
1.17
|
|
$
1.20
|
Company share of
depreciation and amortization
|
1.17
|
|
1.17
|
Company share of gains
on sale of real estate(1)
|
(0.03)
|
|
(0.03)
|
Company share of
Core FFO
|
$
2.31
|
|
$
2.34
|
|
(1) Reflects the
sale of 2360-2364 East Sturgis Road on April 16, 2024.
|
Net Operating Income (NOI): NOI is a non-GAAP
measure, which includes the revenue and expense directly
attributable to our real estate properties. NOI is calculated as
rental income from real estate operations less property expenses
(before interest expense, depreciation and amortization). We use
NOI as a supplemental performance measure because, in excluding
real estate depreciation and amortization expense and gains (or
losses) from property dispositions, it provides a performance
measure that, when compared year over year, captures trends in
occupancy rates, rental rates and operating costs. We also believe
that NOI will be useful to investors as a basis to compare our
operating performance with that of other REITs. However, because
NOI excludes depreciation and amortization expense and captures
neither the changes in the value of our properties that result from
use or market conditions, nor the level of capital expenditures and
leasing commissions necessary to maintain the operating performance
of our properties (all of which have a real economic effect and
could materially impact our results from operations), the utility
of NOI as a measure of our performance is limited. Other equity
REITs may not calculate NOI in a similar manner and, accordingly,
our NOI may not be comparable to such other REITs' NOI.
Accordingly, NOI should be considered only as a supplement to net
income as a measure of our performance. NOI should not be used as a
measure of our liquidity, nor is it indicative of funds available
to fund our cash needs.
NOI should not be used as a substitute for cash flow from
operating activities in accordance with GAAP. We use NOI to help
evaluate the performance of the Company as a whole, as well as the
performance of our Same Property Portfolio. A calculation of NOI
for our Same Property Portfolio, as well as a reconciliation of net
income to NOI for our Same Property Portfolio, is set forth below
in the Financial Statements and Reconciliations section.
Cash NOI: Cash NOI is a non-GAAP measure, which we
calculate by adding or subtracting from NOI: (i) amortization of
above/(below) market lease intangibles and amortization of other
deferred rent resulting from sale leaseback transactions with below
market leaseback payments and (ii) straight-line rent adjustments.
We use Cash NOI, together with NOI, as a supplemental performance
measure. Cash NOI should not be used as a measure of our liquidity,
nor is it indicative of funds available to fund our cash needs.
Cash NOI should not be used as a substitute for cash flow from
operating activities computed in accordance with GAAP. We use Cash
NOI to help evaluate the performance of the Company as a whole, as
well as the performance of our Same Property Portfolio. A
calculation of Cash NOI for our Same Property Portfolio, as well as
a reconciliation of net income to Cash NOI for our Same Property
Portfolio, is set forth below in the Financial Statements and
Reconciliations section.
Same Property Portfolio: Our 2024 Same Property
Portfolio is a subset of our consolidated portfolio and includes
properties that were wholly owned by us for the period from
January 1, 2023 through
March 31, 2024, and excludes (i) properties that were acquired
or sold during the period from January 1,
2023 through March 31, 2024, and (ii) properties
acquired prior to January 1, 2023
that were or will be classified as repositioning/redevelopment
(current and future) or lease-up during 2023 and 2024 and select
buildings in "Other Repositioning," which we believe will
significantly affect the properties' results during the comparative
periods. As of March 31, 2024, our 2024 Same Property
Portfolio consisted of buildings aggregating 37,109,867 rentable
square feet at 296 of our properties.
Properties and Space Under Repositioning: Typically
defined as properties or units where a significant amount of space
is held vacant in order to implement capital improvements that
improve the functionality (not including basic refurbishments,
i.e., paint and carpet), cash flow and value of that space. A
repositioning is generally considered complete once the investment
is fully or nearly fully deployed and the property is available for
occupancy. We consider a repositioning property to be stabilized at
the earlier of the following: (i) upon reaching 90% occupancy or
(ii) one year from the date of completion of repositioning
construction work.
Net Debt to Enterprise Value: As of March 31,
2024, we had consolidated indebtedness of $3.4 billion, reflecting a net debt to enterprise
value of approximately 20.9%. Our enterprise value is defined as
the sum of the liquidation preference of our outstanding preferred
stock and preferred units plus the market value of our common stock
excluding shares of nonvested restricted stock, plus the aggregate
value of common units not owned by us, plus the value of our net
debt. Our net debt is defined as our consolidated indebtedness less
cash and cash equivalents.
Contact:
investorrelations@rexfordindustrial.com
Financial Statements and Reconciliations:
Rexford Industrial
Realty, Inc.
Consolidated Balance Sheets
(In thousands except share data)
|
|
|
March 31,
2024
|
|
December 31,
2023
|
|
(unaudited)
|
|
|
ASSETS
|
|
|
|
Land
|
$
7,568,720
|
|
$
6,815,622
|
Buildings and
improvements
|
4,260,512
|
|
3,933,379
|
Tenant
improvements
|
172,707
|
|
167,251
|
Furniture, fixtures,
and equipment
|
132
|
|
132
|
Construction in
progress
|
258,413
|
|
240,010
|
Total real estate held
for investment
|
12,260,484
|
|
11,156,394
|
Accumulated
depreciation
|
(827,576)
|
|
(782,461)
|
Investments in real
estate, net
|
11,432,908
|
|
10,373,933
|
Cash and cash
equivalents
|
336,960
|
|
33,444
|
Loan receivable,
net
|
122,899
|
|
122,784
|
Rents and other
receivables, net
|
17,896
|
|
17,494
|
Deferred rent
receivable, net
|
130,694
|
|
123,325
|
Deferred leasing
costs, net
|
61,017
|
|
59,351
|
Deferred loan costs,
net
|
3,069
|
|
3,426
|
Acquired lease
intangible assets, net
|
223,698
|
|
153,670
|
Acquired
indefinite-lived intangible
|
5,156
|
|
5,156
|
Interest rate swap
asset
|
16,737
|
|
9,896
|
Other
assets
|
22,114
|
|
25,225
|
Acquisition related
deposits
|
7,975
|
|
2,125
|
Total
Assets
|
$
12,381,123
|
|
$
10,929,829
|
LIABILITIES &
EQUITY
|
|
|
|
Liabilities
|
|
|
|
Notes
payable
|
$
3,349,120
|
|
$
2,225,914
|
Accounts payable,
accrued expenses and other liabilities
|
148,920
|
|
128,842
|
Dividends and
distributions payable
|
94,356
|
|
83,733
|
Acquired lease
intangible liabilities, net
|
171,687
|
|
147,561
|
Tenant security
deposits
|
91,034
|
|
84,872
|
Tenant prepaid
rents
|
110,727
|
|
115,002
|
Total
Liabilities
|
3,965,844
|
|
2,785,924
|
Equity
|
|
|
|
Rexford Industrial
Realty, Inc. stockholders' equity
|
|
|
|
Preferred stock, $0.01
par value per share, 10,050,000 shares authorized:
|
|
|
|
5.875%
series B cumulative redeemable preferred
stock, 3,000,000 shares
outstanding at March 31, 2024 and December 31, 2023
($75,000 liquidation
preference)
|
72,443
|
|
72,443
|
5.625%
series C cumulative redeemable preferred
stock, 3,450,000 shares
outstanding at March 31, 2024 and December 31, 2023
($86,250 liquidation
preference)
|
83,233
|
|
83,233
|
Common Stock,$ 0.01
par value per share, 489,950,000 authorized and
217,822,056 and 212,346,450 shares outstanding at March 31,
2024 and
December 31, 2023, respectively
|
2,178
|
|
2,123
|
Additional paid in
capital
|
8,233,127
|
|
7,940,781
|
Cumulative
distributions in excess of earnings
|
(370,720)
|
|
(338,835)
|
Accumulated other
comprehensive loss
|
13,922
|
|
7,172
|
Total stockholders'
equity
|
8,034,183
|
|
7,766,917
|
Noncontrolling
interests
|
381,096
|
|
376,988
|
Total
Equity
|
8,415,279
|
|
8,143,905
|
Total Liabilities
and Equity
|
$
12,381,123
|
|
$
10,929,829
|
Rexford Industrial
Realty, Inc.
Consolidated Statements of Operations
(Unaudited and in thousands, except per share data)
|
|
|
Three Months Ended
March 31,
|
|
2024
|
|
2023
|
REVENUES
|
|
|
|
Rental
income
|
$
210,990
|
|
$
185,164
|
Management and leasing
services
|
132
|
|
190
|
Interest
income
|
2,974
|
|
882
|
TOTAL
REVENUES
|
214,096
|
|
186,236
|
OPERATING
EXPENSES
|
|
|
|
Property
expenses
|
47,482
|
|
42,825
|
General and
administrative
|
19,980
|
|
18,197
|
Depreciation and
amortization
|
66,278
|
|
59,429
|
TOTAL OPERATING
EXPENSES
|
133,740
|
|
120,451
|
OTHER
EXPENSES
|
|
|
|
Other
expenses
|
1,408
|
|
647
|
Interest
expense
|
14,671
|
|
13,701
|
TOTAL
EXPENSES
|
149,819
|
|
134,799
|
Gains on sale of real
estate
|
—
|
|
12,133
|
NET
INCOME
|
64,277
|
|
63,570
|
Less: net income
attributable to noncontrolling interests
|
(2,906)
|
|
(3,064)
|
NET INCOME
ATTRIBUTABLE TO REXFORD INDUSTRIAL REALTY, INC.
|
61,371
|
|
60,506
|
Less: preferred stock
dividends
|
(2,314)
|
|
(2,314)
|
Less: earnings
attributable to participating securities
|
(418)
|
|
(320)
|
NET INCOME
ATTRIBUTABLE TO COMMON STOCKHOLDERS
|
$
58,639
|
|
$
57,872
|
Net income
attributable to common stockholders per share – basic
|
$
0.27
|
|
$
0.30
|
Net income
attributable to common stockholders per share – diluted
|
$
0.27
|
|
$
0.30
|
Weighted-average
shares of common stock outstanding – basic
|
214,402
|
|
195,367
|
Weighted-average
shares of common stock outstanding – diluted
|
214,438
|
|
195,779
|
Rexford Industrial
Realty, Inc.
Same Property Portfolio Occupancy and NOI and Cash NOI
(Unaudited, dollars in thousands)
|
|
Same Property
Portfolio Occupancy:
|
|
March
31,
|
|
|
|
2024
|
|
2023
|
|
Change (basis
points)
|
Quarterly Weighted
Average Occupancy:(1)
|
|
|
|
|
|
Los Angeles
County
|
96.9 %
|
|
97.5 %
|
|
(60) bps
|
Orange
County
|
99.6 %
|
|
98.8 %
|
|
80 bps
|
Riverside / San
Bernardino County
|
94.8 %
|
|
93.4 %
|
|
140 bps
|
San Diego
County
|
98.4 %
|
|
98.9 %
|
|
(50) bps
|
Ventura
County
|
96.4 %
|
|
99.6 %
|
|
(320) bps
|
Same Property
Portfolio Weighted Average Occupancy
|
96.8 %
|
|
97.0 %
|
|
(20) bps
|
|
|
|
|
|
|
Ending
Occupancy:
|
96.4 %
|
|
97.0 %
|
|
(60) bps
|
|
|
(1)
|
Calculated by averaging
the occupancy rate at the end of each month in 1Q-2024 and December
2023 (for 1Q-2024) and the end of each month in 1Q-2023 and
December 2022 (for 1Q-2023).
|
Same Property
Portfolio NOI and Cash NOI:
|
|
|
|
Three Months Ended
March 31,
|
|
2024
|
|
2023
|
|
$
Change
|
|
%
Change
|
Rental
income
|
$ 171,557
|
|
$ 162,571
|
|
$
8,986
|
|
5.5 %
|
Property
expenses
|
38,928
|
|
36,840
|
|
2,088
|
|
5.7 %
|
Same Property
Portfolio NOI
|
$ 132,629
|
|
$ 125,731
|
|
$
6,898
|
|
5.5 %
|
Straight line rental
revenue adjustment
|
(4,753)
|
|
(6,924)
|
|
2,171
|
|
(31.4) %
|
Above/(below) market
lease revenue adjustments
|
(5,642)
|
|
(6,196)
|
|
554
|
|
(8.9) %
|
Same Property
Portfolio Cash NOI
|
$ 122,234
|
|
$ 112,611
|
|
$
9,623
|
|
8.5 %
|
Rexford Industrial
Realty, Inc.
Reconciliation of Net Income to NOI, Cash NOI, Same Property
Portfolio NOI and
Same Property Portfolio Cash NOI
(Unaudited and in thousands)
|
|
|
Three Months Ended
March 31,
|
|
2024
|
|
2023
|
Net income
|
$
64,277
|
|
$
63,570
|
General and
administrative
|
19,980
|
|
18,197
|
Depreciation and
amortization
|
66,278
|
|
59,429
|
Other
expenses
|
1,408
|
|
647
|
Interest
expense
|
14,671
|
|
13,701
|
Management and leasing
services
|
(132)
|
|
(190)
|
Interest
income
|
(2,974)
|
|
(882)
|
Gains on sale of real
estate
|
—
|
|
(12,133)
|
Net operating income
(NOI)
|
$
163,508
|
|
$
142,339
|
Straight line rental
revenue adjustment
|
(7,368)
|
|
(7,628)
|
Above/(below) market
lease revenue adjustments(1)
|
(7,591)
|
|
(8,290)
|
Cash NOI
|
$
148,549
|
|
$
126,421
|
|
|
|
|
NOI
|
$
163,508
|
|
$
142,339
|
Non-Same Property
Portfolio rental income
|
(39,433)
|
|
(22,593)
|
Non-Same Property
Portfolio property expenses
|
8,554
|
|
5,985
|
Same Property Portfolio
NOI
|
$
132,629
|
|
$
125,731
|
Straight line rental
revenue adjustment
|
(4,753)
|
|
(6,924)
|
Above/(below) market
lease revenue adjustments
|
(5,642)
|
|
(6,196)
|
Same Property Portfolio
Cash NOI
|
$
122,234
|
|
$
112,611
|
|
(1)
|
Above/(below) market
lease revenue adjustments include the write-off of $1,318 for the
three months March 31, 2023, that is attributable to a below-market
fixed rate renewal option that was not exercised due to the
termination of the lease at the end of the initial lease term.
There was no comparable write-off amount for the three months March
31, 2024.
|
Rexford Industrial
Realty, Inc.
Reconciliation of Net Income to Funds From Operations and Core
Funds From Operations
(Unaudited and in thousands, except per share data)
|
|
|
Three Months Ended
March 31,
|
|
2024
|
|
2023
|
Net
income
|
$
64,277
|
|
$
63,570
|
Adjustments:
|
|
|
|
Depreciation and
amortization
|
66,278
|
|
59,429
|
Gains on sale of real
estate
|
—
|
|
(12,133)
|
Funds From
Operations (FFO)
|
$
130,555
|
|
$
110,866
|
Less: preferred stock
dividends
|
(2,314)
|
|
(2,314)
|
Less: FFO attributable
to noncontrolling interests(1)
|
(5,188)
|
|
(4,833)
|
Less: FFO attributable
to participating securities(2)
|
(570)
|
|
(427)
|
Company share of
FFO
|
$
122,483
|
|
$
103,292
|
|
|
|
|
Company Share of FFO
per common share – basic
|
$
0.57
|
|
$
0.53
|
Company Share of FFO
per common share – diluted
|
$
0.57
|
|
$
0.53
|
|
|
|
|
FFO
|
$
130,555
|
|
$
110,866
|
Adjustments:
|
|
|
|
Acquisition
expenses
|
50
|
|
73
|
Impairment of
right-of-use asset
|
—
|
|
188
|
Amortization of loss
on termination of interest rate swaps
|
59
|
|
59
|
Non-capitalizable
demolition costs
|
998
|
|
340
|
Write-offs of
below-market lease intangibles related to unexercised renewal
options(3)
|
—
|
|
(1,318)
|
Core
FFO
|
$
131,662
|
|
$
110,208
|
Less: preferred stock
dividends
|
(2,314)
|
|
(2,314)
|
Less: Core FFO
attributable to noncontrolling interest(1)
|
(5,226)
|
|
(4,809)
|
Less: Core FFO
attributable to participating securities(2)
|
(575)
|
|
(425)
|
Company share of
Core FFO
|
$
123,547
|
|
$
102,660
|
|
|
|
|
Company share of Core
FFO per common share – basic
|
$
0.58
|
|
$
0.53
|
Company share of Core
FFO per common share – diluted
|
$
0.58
|
|
$
0.52
|
|
|
|
|
Weighted-average shares
of common stock outstanding – basic
|
214,402
|
|
195,367
|
Weighted-average shares
of common stock outstanding – diluted
|
214,438
|
|
195,779
|
|
|
(1)
|
Noncontrolling
interests relate to interests in the Company's operating
partnership, represented by common units and preferred units
(Series 1, 2 & 3 CPOP units) of partnership interests in
the operating partnership that are owned by unit holders other than
the Company.
|
(2)
|
Participating
securities include unvested shares of restricted stock, unvested
LTIP units and unvested performance units.
|
(3)
|
Reflects the write-off
of the portion of a below-market lease intangible attributable to a
below-market fixed rate renewal option that was not exercised due
to the termination of the lease at the end of the initial lease
term.
|
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SOURCE Rexford Industrial Realty, Inc.