Rexford Industrial Announces 10 Percent Increase in Quarterly Common Stock Dividend

Rhea-AI Summary

Rexford Industrial Realty, Inc. (REXR) has announced a 10% increase in its quarterly common stock dividend to $0.4175 per share. The Board of Directors declared a regular cash dividend for the first quarter of 2024, reflecting the company's commitment to driving long-term shareholder value. The Co-Chief Executive Officers emphasized the company's strong dividend growth, averaging 23% annually since its initial public offering ten years ago.

Insights

Financial Analyst

The announcement of Rexford Industrial Realty's dividend increase is a positive signal to the market, indicating the company's strong financial health and confidence in its future earnings. A 10% increase in the quarterly dividend is substantial, especially considering the company's historical average annual dividend growth of 23%. This suggests that Rexford's operational strategies in the competitive Southern California industrial real estate market are yielding results.

For shareholders, the increased dividend translates to higher passive income, which could potentially attract income-focused investors. Moreover, it reflects well on the company's capital allocation strategy and could be a sign of prudent financial management. However, investors should also consider the payout ratio and whether the increased dividend is sustainable in the long-term given the company's earnings and cash flow projections.

Real Estate Market Analyst

The focus on infill Southern California industrial properties is noteworthy, as this region is known for limited supply and high demand due to its strategic importance for logistics and distribution. Rexford Industrial's strategy of investing in this niche market could offer a competitive edge and robust income streams from property leases. The consistent dividend growth over the past decade reinforces the strength of this strategy.

However, it is essential to monitor market trends, including industrial vacancy rates, rent growth and the impact of e-commerce on warehouse demand. These factors could influence Rexford's property values and rental income, thus affecting future dividends. Investors should also be aware of local zoning laws and environmental regulations that could impact property development and operations in Southern California.

Economist

From an economic perspective, dividend policy changes can reflect broader economic conditions. In a stable or growing economy, companies may increase dividends to share profits with investors. Rexford's dividend increase could thus be seen as a positive economic indicator, especially within the industrial real estate sector, which has been bolstered by the growth in e-commerce and changes in supply chain management.

However, economic downturns, rising interest rates, or market saturation could pose risks to dividend sustainability. It is critical to assess the company's resilience to economic cycles and its ability to maintain dividend payouts during periods of economic stress. The historical dividend growth rate is impressive, but forward-looking statements should be balanced with an understanding of economic uncertainties and industry-specific challenges.

LOS ANGELES, Feb. 5, 2024 /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 Board of Directors has approved a 10% increase in the Company's quarterly common stock dividend to $0.4175 per share.

On February 5, 2024, the Company's Board of Directors declared a regular cash dividend for the first quarter of 2024 on the following securities:

• A dividend of $0.4175 per share payable in cash on April 15, 2024, to common stockholders and common unit holders of record as of March 28, 2024; and
• A dividend of $0.367188 per share of its Series B Cumulative Redeemable Preferred Stock and $0.351563 per share of its Series C Cumulative Redeemable Preferred Stock, payable in cash on March 28, 2024, to preferred stockholders of record as of March 15, 2024.

"Our commitment to driving long-term shareholder value is evidenced by our strong dividend growth, which has averaged 23% annually, since our initial public offering ten years ago," stated Michael Frankel and Howard Schwimmer, Co-Chief Executive Officers of the Company. "Looking forward, the Rexford Industrial team remains focused on executing on our proven value creation strategies to fuel long-term value for our shareholders."

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 373 properties with approximately 45.8 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.

FAQ

What is the new quarterly common stock dividend for Rexford Industrial Realty, Inc. (REXR)?

The new quarterly common stock dividend for REXR is $0.4175 per share.

When will the new dividend be payable to common stockholders and common unit holders?

The new dividend will be payable in cash on April 15, 2024, to common stockholders and common unit holders of record as of March 28, 2024.

What is the average annual dividend growth for Rexford Industrial Realty, Inc. (REXR) since its initial public offering?

The average annual dividend growth for REXR has been 23% since its initial public offering ten years ago.

Who are the Co-Chief Executive Officers of Rexford Industrial Realty, Inc. (REXR)?

The Co-Chief Executive Officers of REXR are Michael Frankel and Howard Schwimmer.

What are the dividend amounts for the Series B and Series C Cumulative Redeemable Preferred Stock of Rexford Industrial Realty, Inc. (REXR)?

The dividend amounts are $0.367188 per share for Series B and $0.351563 per share for Series C, payable in cash on March 28, 2024, to preferred stockholders of record as of March 15, 2024.