Rexford Industrial Announces Second Quarter 2024 Financial Results
Rexford Industrial Realty (NYSE: REXR) reported strong financial results for Q2 2024. Net income attributable to common stockholders increased to $79.8 million ($0.37 per diluted share), up from $51.6 million in Q2 2023. Core FFO grew 19.5% to $129.6 million ($0.60 per diluted share). Consolidated Portfolio NOI rose 20.9% to $181.1 million.
The company demonstrated robust leasing activity with rental rate increases of 67.7% (GAAP) and 49.0% (cash) on 2.3 million sq ft of new and renewal leases. Rexford completed three acquisitions for $169.5 million and sold four properties for $37.0 million. The company maintains a strong balance sheet with a net debt-to-enterprise value ratio of 24.1%.
Rexford updated its 2024 guidance, projecting Core FFO per diluted share of $2.32-$2.34 and Same Property Portfolio NOI growth of 4.25%-5.25% (GAAP) and 7.0%-8.0% (cash).
- Net income increased to $79.8 million ($0.37 per diluted share) from $51.6 million in Q2 2023
- Core FFO grew 19.5% to $129.6 million ($0.60 per diluted share)
- Consolidated Portfolio NOI rose 20.9% to $181.1 million
- Rental rate increases of 67.7% (GAAP) and 49.0% (cash) on 2.3 million sq ft of leases
- Completed three acquisitions for $169.5 million
- Strong balance sheet with net debt-to-enterprise value ratio of 24.1%
- Updated 2024 guidance projects Core FFO per diluted share of $2.32-$2.34
- None.
Insights
The financial performance Rexford Industrial disclosed for the second quarter of 2024 reveals noteworthy growth across several key metrics. Net income attributable to common stockholders surged to
A closer look at the Core FFO (Funds From Operations) indicates a strong performance as well. The company reported $129.6 million, marking a
The NOI (Net Operating Income) is another area of strength, showing a year-over-year increase of
The company's low-leverage balance sheet with a net debt-to-enterprise value ratio of
These strong financial metrics suggest a robust performance and a positive outlook for the company, although the growth rates might moderate in the future due to market and economic conditions. By maintaining a healthy balance sheet and delivering consistent FFO growth, Rexford Industrial demonstrates strong potential for long-term investors.
Rexford Industrial's operational metrics display solid performance, notably in the leasing activity area. The company executed 129 leases encompassing 2.3 million square feet, with high releasing spreads of
Furthermore, the company's average same property portfolio occupancy of
The strategic acquisitions and disposals also reflect the company's emphasis on optimizing its portfolio. Acquiring properties worth
However, investors should be mindful of the broader market conditions, including potential impacts related to interest rates, inflation and economic factors. While the company’s current performance is strong, these external variables could influence future operational outcomes.
Second Quarter 2024 Financial and Operational Highlights:
- Net income attributable to common stockholders of
$79.8 million $0.37 $51.6 million $0.26 - Company share of Core FFO of
$129.6 million 19.5% as compared to the prior year quarter. - Company share of Core FFO per diluted share of
$0.60 11.1% as compared to the prior year quarter. - Consolidated Portfolio NOI of
$181.1 million 20.9% as compared to the prior year quarter. - Same Property Portfolio NOI increased
6.0% and Same Property Portfolio Cash NOI increased9.1% as compared to the prior year quarter. - Average Same Property Portfolio occupancy of
96.9% . - Comparable rental rates increased by
67.7% compared to prior rents on a GAAP basis and by49.0% on a cash basis on 2.3 million rentable square feet of new and renewal leases. - Completed three acquisitions for an aggregate purchase price of
$169.5 million $37.0 million - Ended the quarter with a low-leverage balance sheet measured by a net debt-to-enterprise value ratio of
24.1% .
"Rexford Industrial's strong year-to-date performance demonstrates the resilience of our value-driven business model and associated outsized cash flow growth," stated Michael Frankel and Howard Schwimmer, Co-Chief Executive Officers of the Company. "As we look forward, we believe Rexford Industrial's entrepreneurial asset management program and accretive approach to capital allocation and recycling will enable us to further differentiate our performance as we continue to capitalize upon a significant market opportunity to create value for our stakeholders."
Financial Results:
The Company reported net income attributable to common stockholders for the second quarter of
The Company reported its share of Core FFO for the second quarter of
In the second quarter, the Company's consolidated portfolio NOI and Cash NOI increased
In the second quarter, the Company's Same Property Portfolio NOI and Cash NOI increased
Operating Results:
Second quarter 2024 leasing activity demonstrates strong tenant demand fundamentals within Rexford Industrial's target infill
Q2-2024 Leasing Activity | ||||||||
Releasing Spreads | ||||||||
# of Leases | SF of Leasing | GAAP | Cash | |||||
New Leases | 60 | 1,033,006 | 45.2 % | 29.7 % | ||||
Renewal Leases | 69 | 1,228,905 | 78.6 % | 58.2 % | ||||
Total Leases | 129 | 2,261,911 | 67.7 % | 49.0 % | ||||
As of June 30, 2024, the Company's Same Property Portfolio occupancy was
Transaction Activity:
During the second quarter of 2024, the Company completed three acquisitions totaling
Additionally, the Company sold four properties for an aggregate sales price of
The Company currently has a near-term acquisition pipeline comprising approximately
During the second quarter of 2024, the Company rent commenced and stabilized two repositioning projects equal to 84,998 square feet, representing a total investment of
Year to date, the Company stabilized four repositioning projects totaling 123,019 square feet, which represent a total investment of
Balance Sheet:
The Company ended the second quarter with
During the second quarter of 2024, the Company did not execute on its ATM Program or settle outstanding forward equity sale agreements. As of June 30, 2024, the Company's ATM Program had approximately
Dividends:
On July 15, 2024, the Company's Board of Directors authorized a dividend in the amount of
On July 15, 2024, the Company's Board of Directors authorized a quarterly dividend of
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 July 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) | Q2 2024 Updated | Q1 2024 | ||
Net Income Attributable to Common Stockholders per diluted share | ||||
Company share of Core FFO per diluted share | ||||
Same Property Portfolio NOI Growth - GAAP | ||||
Same Property Portfolio NOI Growth - Cash | ||||
Average Same Property Portfolio Occupancy (Full Year) (2) | ||||
General and Administrative Expenses (3) | +/- | +/- | ||
Net Interest Expense | +/- | +/- |
(1) | 2024 Guidance represents the in-place portfolio as of July 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 June 30, 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 |
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, July 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
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
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 | $ 1.19 | $ 1.21 | |
Company share of depreciation and amortization | 1.20 | 1.20 | |
Company share of gains on sale of real estate(1) | (0.07) | (0.07) | |
Company share of Core FFO | $ 2.32 | $ 2.34 | |
(1) | Reflects the sale of four properties during the six months ended June 30, 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 June 30, 2024, and excludes (i) properties that were acquired or sold during the period from January 1, 2023 through June 30, 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 June 30, 2024, our 2024 Same Property Portfolio consisted of buildings aggregating 36,956,243 rentable square feet at 293 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.
Stabilization Date - Repositioning/Redevelopment Properties: We consider a repositioning/redevelopment property to be stabilized at the earlier of the following: (i) upon rent commencement and achieving
Net Debt to Enterprise Value: As of June 30, 2024, we had consolidated indebtedness of
Contact:
investorrelations@rexfordindustrial.com
Financial Statements and Reconciliations: | |||
Rexford Industrial Realty, Inc. Consolidated Balance Sheets (In thousands except share data) | |||
June 30, 2024 | December 31, 2023 | ||
(unaudited) | |||
ASSETS | |||
Land | $ 7,650,740 | $ 6,815,622 | |
Buildings and improvements | 4,330,709 | 3,933,379 | |
Tenant improvements | 178,832 | 167,251 | |
Furniture, fixtures, and equipment | 132 | 132 | |
Construction in progress | 343,275 | 240,010 | |
Total real estate held for investment | 12,503,688 | 11,156,394 | |
Accumulated depreciation | (874,413) | (782,461) | |
Investments in real estate, net | 11,629,275 | 10,373,933 | |
Cash and cash equivalents | 125,710 | 33,444 | |
Loan receivable, net | 123,014 | 122,784 | |
Rents and other receivables, net | 17,685 | 17,494 | |
Deferred rent receivable, net | 140,196 | 123,325 | |
Deferred leasing costs, net | 68,161 | 59,351 | |
Deferred loan costs, net | 2,713 | 3,426 | |
Acquired lease intangible assets, net | 220,021 | 153,670 | |
Acquired indefinite-lived intangible asset | 5,156 | 5,156 | |
Interest rate swap assets | 16,510 | 9,896 | |
Other assets | 18,501 | 25,225 | |
Acquisition related deposits | 1,250 | 2,125 | |
Total Assets | $ 12,368,192 | $ 10,929,829 | |
LIABILITIES & EQUITY | |||
Liabilities | |||
Notes payable | $ 3,348,697 | $ 2,225,914 | |
Accounts payable, accrued expenses and other liabilities | 153,993 | 128,842 | |
Dividends and distributions payable | 94,582 | 83,733 | |
Acquired lease intangible liabilities, net | 163,109 | 147,561 | |
Tenant security deposits | 91,162 | 84,872 | |
Tenant prepaid rents | 101,473 | 115,002 | |
Total Liabilities | 3,953,016 | 2,785,924 | |
Equity | |||
Rexford Industrial Realty, Inc. stockholders' equity | |||
Preferred stock, | |||
| 72,443 | 72,443 | |
| 83,233 | 83,233 | |
Common Stock, | 2,178 | 2,123 | |
Additional paid in capital | 8,235,484 | 7,940,781 | |
Cumulative distributions in excess of earnings | (381,507) | (338,835) | |
Accumulated other comprehensive loss | 13,834 | 7,172 | |
Total stockholders' equity | 8,025,665 | 7,766,917 | |
Noncontrolling interests | 389,511 | 376,988 | |
Total Equity | 8,415,176 | 8,143,905 | |
Total Liabilities and Equity | $ 12,368,192 | $ 10,929,829 | |
Rexford Industrial Realty, Inc. Consolidated Statements of Operations (Unaudited and in thousands, except per share data) | |||||||
Three Months Ended June 30, | Six Months Ended June 30, | ||||||
2024 | 2023 | 2024 | 2023 | ||||
REVENUES | |||||||
Rental income | $ 232,973 | $ 194,098 | $ 443,963 | $ 379,262 | |||
Management and leasing services | 156 | 171 | 288 | 361 | |||
Interest income | 4,444 | 1,497 | 7,418 | 2,379 | |||
TOTAL REVENUES | 237,573 | 195,766 | 451,669 | 382,002 | |||
OPERATING EXPENSES | |||||||
Property expenses | 51,905 | 44,310 | 99,387 | 87,135 | |||
General and administrative | 19,307 | 18,267 | 39,287 | 36,464 | |||
Depreciation and amortization | 67,896 | 58,793 | 134,174 | 118,222 | |||
TOTAL OPERATING EXPENSES | 139,108 | 121,370 | 272,848 | 241,821 | |||
OTHER EXPENSES | |||||||
Other expenses | 304 | 306 | 1,712 | 953 | |||
Interest expense | 28,412 | 17,180 | 43,083 | 30,881 | |||
TOTAL EXPENSES | 167,824 | 138,856 | 317,643 | 273,655 | |||
Gains on sale of real estate | 16,268 | — | 16,268 | 12,133 | |||
NET INCOME | 86,017 | 56,910 | 150,294 | 120,480 | |||
Less: net income attributable to noncontrolling interests | (3,541) | (2,717) | (6,447) | (5,781) | |||
NET INCOME ATTRIBUTABLE TO REXFORD INDUSTRIAL REALTY, INC. | 82,476 | 54,193 | 143,847 | 114,699 | |||
Less: preferred stock dividends | (2,315) | (2,315) | (4,629) | (4,629) | |||
Less: earnings attributable to participating securities | (409) | (318) | (827) | (638) | |||
NET INCOME ATTRIBUTABLE TO COMMON STOCKHOLDERS | $ 79,752 | $ 51,560 | $ 138,391 | $ 109,432 | |||
Net income attributable to common stockholders per share – basic | $ 0.37 | $ 0.26 | $ 0.64 | $ 0.55 | |||
Net income attributable to common stockholders per share – diluted | $ 0.37 | $ 0.26 | $ 0.64 | $ 0.55 | |||
Weighted-average shares of common stock outstanding – basic | 217,389 | 200,611 | 215,895 | 198,003 | |||
Weighted-average shares of common stock outstanding – diluted | 217,389 | 200,667 | 215,913 | 198,238 | |||
Rexford Industrial Realty, Inc. Same Property Portfolio Occupancy and NOI and Cash NOI (Unaudited, dollars in thousands)
| |||||
Same Property Portfolio Occupancy: | |||||
June 30, | |||||
2024 | 2023 | Change (basis points) | |||
Quarterly Weighted Average Occupancy:(1) | |||||
97.0 % | 97.4 % | (40) bps | |||
99.7 % | 98.6 % | 110 bps | |||
96.5 % | 94.0 % | 250 bps | |||
96.3 % | 98.7 % | (240) bps | |||
94.8 % | 99.4 % | (460) bps | |||
Same Property Portfolio Weighted Average Occupancy | 96.9 % | 97.1 % | (20) bps | ||
Ending Occupancy: | 97.3 % | 97.3 % | — bps | ||
(1) | Calculated by averaging the occupancy rate at the end of each month in 2Q-2024 and March 2024 (for 2Q-2024) and the end of each month in 2Q-2023 and March 2023 (for 2Q-2023). |
Same Property Portfolio NOI and Cash NOI: | |||||||||||||||
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2024 | 2023 | $ Change | % Change | 2024 | 2023 | $ Change | % Change | ||||||||
Rental income | $ 9,529 | 5.8 % | 5.8 % | ||||||||||||
Property expenses | 38,821 | 36,934 | 1,887 | 5.1 % | 77,595 | 73,641 | 3,954 | 5.4 % | |||||||
Same Property Portfolio NOI | $ 7,642 | 6.0 % | 5.9 % | ||||||||||||
Straight line rental revenue adjustment | (5,116) | (7,015) | 1,899 | (27.1) % | (9,868) | (13,947) | 4,079 | (29.2) % | |||||||
Above/(below) market lease revenue adjustments | (5,230) | (6,036) | 806 | (13.4) % | (10,872) | (12,233) | 1,361 | (11.1) % | |||||||
Same Property Portfolio Cash NOI | 9.1 % | 9.0 % | |||||||||||||
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 June 30, | Six Months Ended June 30, | ||||||
2024 | 2023 | 2024 | 2023 | ||||
Net income | $ 86,017 | $ 56,910 | $ 150,294 | $ 120,480 | |||
General and administrative | 19,307 | 18,267 | 39,287 | 36,464 | |||
Depreciation and amortization | 67,896 | 58,793 | 134,174 | 118,222 | |||
Other expenses | 304 | 306 | 1,712 | 953 | |||
Interest expense | 28,412 | 17,180 | 43,083 | 30,881 | |||
Management and leasing services | (156) | (171) | (288) | (361) | |||
Interest income | (4,444) | (1,497) | (7,418) | (2,379) | |||
Gains on sale of real estate | (16,268) | — | (16,268) | (12,133) | |||
Net operating income (NOI) | $ 181,068 | $ 149,788 | $ 344,576 | $ 292,127 | |||
Straight line rental revenue adjustment | (9,567) | (8,653) | (16,935) | (16,281) | |||
Above/(below) market lease revenue adjustments(1) | (7,268) | (6,232) | (14,859) | (14,522) | |||
Cash NOI | $ 164,233 | $ 134,903 | $ 312,782 | $ 261,324 | |||
NOI | $ 181,068 | $ 149,788 | $ 344,576 | $ 292,127 | |||
Non-Same Property Portfolio rental income | (59,453) | (30,107) | (99,167) | (53,260) | |||
Non-Same Property Portfolio property expenses | 13,084 | 7,376 | 21,792 | 13,494 | |||
Same Property Portfolio NOI | $ 134,699 | $ 127,057 | $ 267,201 | $ 252,361 | |||
Straight line rental revenue adjustment | (5,116) | (7,015) | (9,868) | (13,947) | |||
Above/(below) market lease revenue adjustments | (5,230) | (6,036) | (10,872) | (12,233) | |||
Same Property Portfolio Cash NOI | $ 124,353 | $ 114,006 | $ 246,461 | $ 226,181 | |||
(1) | Above/(below) market lease revenue adjustments include the write-off of |
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 June 30, | Six Months Ended June 30, | ||||||
2024 | 2023 | 2024 | 2023 | ||||
Net income | $ 86,017 | $ 56,910 | $ 150,294 | $ 120,480 | |||
Adjustments: | |||||||
Depreciation and amortization | 67,896 | 58,793 | 134,174 | 118,222 | |||
Gains on sale of real estate | (16,268) | — | (16,268) | (12,133) | |||
Funds From Operations (FFO) | $ 137,645 | $ 115,703 | $ 268,200 | $ 226,569 | |||
Less: preferred stock dividends | (2,315) | (2,315) | (4,629) | (4,629) | |||
Less: FFO attributable to noncontrolling interests(1) | (5,410) | (4,812) | (10,598) | (9,645) | |||
Less: FFO attributable to participating securities(2) | (582) | (451) | (1,152) | (878) | |||
Company share of FFO | $ 129,338 | $ 108,125 | $ 251,821 | $ 211,417 | |||
Company Share of FFO per common share – basic | $ 0.59 | $ 0.54 | $ 1.17 | $ 1.07 | |||
Company Share of FFO per common share – diluted | $ 0.59 | $ 0.54 | $ 1.17 | $ 1.07 | |||
FFO | $ 137,645 | $ 115,703 | $ 268,200 | $ 226,569 | |||
Adjustments: | |||||||
Acquisition expenses | 58 | 247 | 108 | 320 | |||
Impairment of right-of-use asset | — | — | — | 188 | |||
Amortization of loss on termination of interest rate swaps | 59 | 59 | 118 | 118 | |||
Non-capitalizable demolition costs | 129 | — | 1,127 | 340 | |||
Write-offs of below-market lease intangibles related to unexercised | — | — | — | (1,318) | |||
Core FFO | $ 137,891 | $ 116,009 | $ 269,553 | $ 226,217 | |||
Less: preferred stock dividends | (2,315) | (2,315) | (4,629) | (4,629) | |||
Less: Core FFO attributable to noncontrolling interest(1) | (5,418) | (4,823) | (10,644) | (9,632) | |||
Less: Core FFO attributable to participating securities(2) | (583) | (452) | (1,158) | (877) | |||
Company share of Core FFO | $ 129,575 | $ 108,419 | $ 253,122 | $ 211,079 | |||
Company share of Core FFO per common share – basic | $ 0.60 | $ 0.54 | $ 1.17 | $ 1.07 | |||
Company share of Core FFO per common share – diluted | $ 0.60 | $ 0.54 | $ 1.17 | $ 1.06 | |||
Weighted-average shares of common stock outstanding – basic | 217,389 | 200,611 | 215,895 | 198,003 | |||
Weighted-average shares of common stock outstanding – diluted | 217,389 | 200,667 | 215,913 | 198,238 | |||
(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.
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