Rexford Industrial Announces Third Quarter 2021 Financial Results
Rexford Industrial Realty reported a robust financial performance for Q3 2021, with net income reaching $31.5 million, or $0.23 per diluted share, up from $25.9 million in Q3 2020. Core FFO surged by 46.9% to $59.6 million, translating to $0.43 per diluted share. The company's consolidated NOI increased by 39.4%, with a Same Property Portfolio NOI growth of 9.7%. Rexford executed 1.8 million square feet of leasing activity, achieving a 54.3% increase in rental rates. The company ended the quarter with a low net debt-to-enterprise value ratio of 12.7%. Guidance for full-year metrics was revised upward, reflecting a positive outlook.
- Net income rose to $31.5 million, a 21.5% increase YoY.
- Core FFO jumped 46.9% to $59.6 million.
- Consolidated NOI grew 39.4% year-over-year.
- Executed 1.8 million square feet of leasing with GAAP spreads at 54.3%.
- Low net debt-to-enterprise value ratio of 12.7%.
- Revised full-year guidance showing positive outlook.
- None.
LOS ANGELES, Oct. 20, 2021 /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 within Southern California infill markets, today announced financial and operating results for the third quarter of 2021.
Third Quarter 2021 Financial and Operational Highlights:
- Net income attributable to common stockholders of
$31.5 million , or$0.23 per diluted share, as compared to$25.9 million , or$0.21 per diluted share, for the third quarter of 2020. - Company share of Core FFO of
$59.6 million , an increase of46.9% as compared to the third quarter 2020. - Company share of Core FFO per diluted share of
$0.43 , an increase of30.3% as compared to the third quarter 2020. - Consolidated Portfolio Net Operating Income (NOI) of
$87.8 million , an increase of39.4% as compared to the third quarter of 2020. - Same Property Portfolio(1) NOI increased
9.7% and Same Property Portfolio(1) Cash NOI increased13.3% as compared to the third quarter 2020. - Average Same Property Portfolio occupancy was
98.6% . - Comparable rental rates on 1.8 million rentable square feet of new and renewal leases were
54.3% higher than prior rents on a GAAP basis and38.5% higher on a cash basis. - Acquired thirteen properties for an aggregate purchase price of
$880.5 million and sold one property for a sales price of$18.6 million . - Completed a debt offering of
$400 million aggregate principal2.150% Senior Notes due September 1, 2031. - Issued a total of 13.7 million shares of common stock for total net proceeds of
$783 million through a range of equity transactions. - Ended the quarter with a low-leverage balance sheet measured by a net debt-to-enterprise value ratio of
12.7% .
"Our team produced another quarter of extraordinary results, reflecting the unique, entrepreneurial nature of the Rexford business model and the strength of our infill Southern California industrial market. We achieved Core FFO growth of
_____________________________ | |
(1) | The Same Property Portfolio was previously referred to as the "Stabilized Same Property Portfolio." No definitional changes have been made. |
Financial Results:
The Company reported net income attributable to common stockholders of
The Company reported net income attributable to common stockholders of
For the three months ended September 30, 2021, Company share of Core FFO increased
For the nine months ended September 30, 2021, Company share of Core FFO increased
For the three months ended September 30, 2021, the Company's consolidated portfolio NOI increased
For the nine months ended September 30, 2021, the Company's consolidated portfolio NOI increased
For the three months ended September 30, 2021, the Company's Same Property Portfolio NOI increased
For the nine months ended September 30, 2021, the Company's Same Property Portfolio NOI increased
Operating Results:
Third quarter 2021 leasing activity demonstrates strong tenant demand fundamentals within Rexford's target Southern California infill markets:
Q3-2021 Leasing Activity | ||||||||
Releasing Spreads | ||||||||
# of Leases Executed | SF of Leasing | GAAP | Cash | |||||
New Leases | 65 | 717,104 | ||||||
Renewal Leases | 68 | 1,104,424 | ||||||
Total Leases | 133 | 1,821,528 | ||||||
At September 30, 2021, the Company's Same Property Portfolio occupancy was
Transaction Activity:
During the third quarter of 2021, the Company acquired thirteen properties, including 2,083,892 square feet of buildings and 139.7 acres of low-coverage outdoor storage sites and land for future redevelopment for an aggregate purchase price of
Subsequent to the third quarter of 2021, the Company acquired two properties with a total of 118,023 rentable square feet of buildings for an aggregate purchase price of
Balance Sheet:
The Company ended the third quarter with
In August 2021, the Company completed a public bond offering of
During the third quarter, the Company executed on its ATM program, selling 3,397,958 shares of common stock at a weighted average share price of
- Issued 786,174 shares of common stock at an average price of
$60.42 per share, receiving proceeds of approximately$47.5 million before issuance costs. - Sold 2,611,784 shares of common stock that were subject to a forward equity sale agreement at an average price of
$61.73 per share for a gross value of$161.2 million . The Company fully settled this forward sale agreement in the third quarter and received net proceeds of approximately$159.1 million .
As of September 30, 2021, the ATM program had approximately
In September 2021, the Company fully settled the remaining 7,190,474 shares outstanding under the forward equity sale agreements from the Company's May 2021 public offering for total net proceeds of approximately
In September 2021, the Company completed a public offering of 9,600,000 shares of common stock comprising 3,100,000 shares of common stock offered directly by the Company for gross proceeds of
Dividends:
On October 18, 2021, the Company's Board of Directors declared a dividend in the amount of
On October 18, 2021, the Company's Board of Directors declared a quarterly dividend of
COVID-19 Collections Update
Through October 18, 2021, the Company collected
As of September 30, 2021, the Company had 1,559 leases representing in-place annualized base rent ("ABR") of
Guidance
The Company is revising its full year 2021 guidance as follows:
2021 Outlook (1) | Q3'21 UPDATED | Q2'21 GUIDANCE | ||
Net Income Attributable to Common Stockholders per diluted share | ||||
Company share of Core FFO per diluted share | ||||
Same Property Portfolio NOI Growth (2) | ||||
Same Property Portfolio Cash NOI Growth (2) | ||||
Average 2021 Same Property Portfolio Occupancy (Full Year) (2) | ||||
General and Administrative Expenses (3) | ||||
Net Interest Expense |
(1) | 2021 Guidance represents the in-place portfolio as of October 20, 2021, and does not include any assumptions for prospective acquisitions, dispositions or balance sheet activities that have not closed. |
(2) | The Same Property Portfolio was previously referred to as the "Stabilized Same Property Portfolio." No definitional changes have been made. For a full definition of the Same Property Portfolio please see definitions herein. |
(3) | 2021 General and Administrative expense guidance includes estimated non-cash equity compensation expense of |
The Core FFO guidance refers only to the Company's in-place portfolio as of October 20, 2021, and does not include any assumptions for other acquisitions, dispositions or balance sheet activities that have not closed. A number of factors could impact the Company's ability to deliver results in line with its guidance, including, but not limited to, the duration and severity of the impact of the COVID-19 pandemic, interest rates, 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 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 www.ir.rexfordindustrial.com.
Earnings Release, Investor Conference Webcast and Conference Call:
The Company will host a webcast and conference call on Thursday, October 21, 2021, at 1:00 p.m. Eastern Time to review third quarter results, discuss recent events and conduct a question-and-answer period. The live webcast will be available on the Company's investor relations website at ir.rexfordindustrial.com.
To Participate in the Telephone Conference Call:
Dial in at least 5 minutes prior to start time:
Domestic: 1-877-407-0789
International: 1-201-689-8562
Conference Call Playback:
Domestic: 1-844-512-2921
International: 1-412-317-6671
Pass code: 13722855
The playback can be accessed through November 21, 2021.
About Rexford Industrial:
Rexford Industrial, a real estate investment trust focused on owning and operating industrial properties throughout Southern California infill markets, owns 280 properties with approximately 35.1 million rentable square feet and manages an additional 20 properties with approximately 1.0 million rentable square feet.
For additional information, 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, 2020, 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. "Company Share of FFO" reflects FFO attributable to common stockholders, which excludes amounts allocable to noncontrolling interests, participating securities and preferred stockholders (which consists of preferred stock dividends and any preferred stock redemption charges related to the write-off of original issuance costs).
Core Funds from Operations (Core FFO): We calculate Core FFO by adjusting FFO to exclude the impact of certain items that we do not consider reflective of our core revenue or expense streams. These adjustments consist of (i) acquisition expenses, (ii) loss on extinguishment of debt, (iii) the amortization of the loss on termination of interest rate swaps and (iv) other amounts as they may occur. Management believes that Core FFO is a useful supplemental measure as it provides a more meaningful and consistent comparison of operating performance and allows investors to more easily compare the Company's operating results. Because certain of 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. A reconciliation of FFO to Core FFO is set forth below. "Company Share of Core FFO" reflects Core FFO attributable to common stockholders, which excludes amounts allocable to noncontrolling interests, participating securities and preferred stockholders (which consists of preferred stock dividends, but excludes non-recurring preferred stock redemption charges related to the write-off of original issuance costs which we do not consider reflective of our core revenue or expense streams).
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 2021 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.
2021 Estimate | |||||||
Low | High | ||||||
Net income attributable to common stockholders | $ | 0.70 | $ | 0.71 | |||
Company share of depreciation and amortization | 1.06 | 1.06 | |||||
Company share of gains on sale of real estate | (0.19) | (0.19) | |||||
Company share of FFO | $ | 1.57 | $ | 1.58 | |||
Add: Series A Preferred Stock redemption charge(1) | 0.02 | 0.02 | |||||
Add: Amortization of loss on termination of interest rate swap | 0.01 | 0.01 | |||||
Company share of Core FFO | $ | 1.60 | $ | 1.61 | |||
(1) | In connection with the redemption of the |
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.
Cash NOI: Cash NOI is a non-GAAP measure, which we calculate by adding or subtracting from NOI: (i) fair value lease revenue 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.
Same Property Portfolio:
Our 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, 2020 through September 30, 2021, and excludes properties that were acquired or sold during the period from January 1, 2020 through September 30, 2021, and properties acquired prior to January 1, 2020, that were classified as current or future repositioning, redevelopment or lease-up during 2020 or 2021 (unless otherwise noted), which we believe significantly affected the properties' results during the comparative periods. As of September 30, 2021, our 2021 Same Property Portfolio consists of 194 properties aggregating 24,652,152 rentable square feet. The Same Property Portfolio was previously referred to as the "Stabilized Same Property Portfolio." No definitional changes have been made.
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
Net Debt to Enterprise Value: At September 30, 2021, we had consolidated indebtedness of
In-Place Annualized Base Rent (ABR): Calculated as the monthly contractual base rent (before rent abatements) per the terms of the lease, as of September 30, 2021, multiplied by 12. Includes leases that have commenced as of September 30, 2021 or leases where tenant has taken early possession of space as of September 30, 2021. Excludes tenant reimbursements.
Contact:
Investor Relations:
Stephen Swett
424-256-2153 ext 401
investorrelations@rexfordindustrial.com
Rexford Industrial Realty, Inc. Consolidated Balance Sheets (In thousands except share data) | |||||||
September 30, 2021 | December 31, 2020 | ||||||
(unaudited) | |||||||
ASSETS | |||||||
Land | $ | 3,714,038 | $ | 2,636,816 | |||
Buildings and improvements | 2,466,435 | 2,201,187 | |||||
Tenant improvements | 124,156 | 84,462 | |||||
Furniture, fixtures, and equipment | 132 | 132 | |||||
Construction in progress | 50,823 | 25,358 | |||||
Total real estate held for investment | 6,355,584 | 4,947,955 | |||||
Accumulated depreciation | (452,019) | (375,423) | |||||
Investments in real estate, net | 5,903,565 | 4,572,532 | |||||
Cash and cash equivalents | 60,154 | 176,293 | |||||
Restricted cash | 50 | 1,230 | |||||
Rents and other receivables, net | 9,863 | 10,208 | |||||
Deferred rent receivable, net | 55,726 | 40,893 | |||||
Deferred leasing costs, net | 33,531 | 23,148 | |||||
Deferred loan costs, net | 2,192 | 2,240 | |||||
Acquired lease intangible assets, net | 125,697 | 92,172 | |||||
Acquired indefinite-lived intangible | 5,156 | 5,156 | |||||
Other assets | 18,213 | 14,390 | |||||
Acquisition related deposits | 9,610 | 4,067 | |||||
Assets associated with real estate held for sale, net | — | 8,845 | |||||
Total Assets | $ | 6,223,757 | $ | 4,951,174 | |||
LIABILITIES & EQUITY | |||||||
Liabilities | |||||||
Notes payable | $ | 1,386,649 | $ | 1,216,160 | |||
Interest rate swap liability | 10,205 | 17,580 | |||||
Accounts payable, accrued expenses and other liabilities | 77,968 | 45,384 | |||||
Dividends and distributions payable | 37,970 | 29,747 | |||||
Acquired lease intangible liabilities, net | 111,444 | 67,256 | |||||
Tenant security deposits | 55,487 | 31,602 | |||||
Prepaid rents | 16,358 | 12,660 | |||||
Liabilities associated with real estate held for sale | — | 193 | |||||
Total Liabilities | 1,696,081 | 1,420,582 | |||||
Equity | |||||||
Rexford Industrial Realty, Inc. stockholders' equity | |||||||
Preferred stock, | |||||||
— | 86,651 | ||||||
72,443 | 72,443 | ||||||
83,233 | 83,233 | ||||||
Common Stock, | 1,514 | 1,313 | |||||
Additional paid in capital | 4,283,600 | 3,182,599 | |||||
Cumulative distributions in excess of earnings | (187,510) | (163,389) | |||||
Accumulated other comprehensive loss | (13,234) | (17,709) | |||||
Total stockholders' equity | 4,240,046 | 3,245,141 | |||||
Noncontrolling interests | 287,630 | 285,451 | |||||
Total Equity | 4,527,676 | 3,530,592 | |||||
Total Liabilities and Equity | $ | 6,223,757 | $ | 4,951,174 | |||
Rexford Industrial Realty, Inc. Consolidated Statements of Operations (Unaudited and in thousands, except per share data) | |||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||
2021 | 2020 | 2021 | 2020 | ||||||||||||
REVENUES | |||||||||||||||
Rental income | $ | 115,260 | $ | 83,622 | $ | 319,140 | $ | 240,882 | |||||||
Management, leasing and development services | 136 | 118 | 350 | 325 | |||||||||||
Interest income | 7 | 116 | 36 | 279 | |||||||||||
TOTAL REVENUES | 115,403 | 83,856 | 319,526 | 241,486 | |||||||||||
OPERATING EXPENSES | |||||||||||||||
Property expenses | 27,501 | 20,684 | 75,631 | 57,682 | |||||||||||
General and administrative | 11,806 | 9,464 | 33,981 | 27,753 | |||||||||||
Depreciation and amortization | 38,676 | 28,811 | 110,048 | 84,715 | |||||||||||
TOTAL OPERATING EXPENSES | 77,983 | 58,959 | 219,660 | 170,150 | |||||||||||
OTHER EXPENSES | |||||||||||||||
Acquisition expenses | 4 | 70 | 35 | 89 | |||||||||||
Interest expense | 10,427 | 7,299 | 29,772 | 22,176 | |||||||||||
TOTAL EXPENSES | 88,414 | 66,328 | 249,467 | 192,415 | |||||||||||
Loss on extinguishment of debt | (505) | — | (505) | — | |||||||||||
Gains on sale of real estate | 13,702 | 13,669 | 27,312 | 13,669 | |||||||||||
NET INCOME | 40,186 | 31,197 | 96,866 | 62,740 | |||||||||||
Less: net income attributable to noncontrolling interests | (2,173) | (1,531) | (5,852) | (3,332) | |||||||||||
NET INCOME ATTRIBUTABLE TO REXFORD INDUSTRIAL REALTY, INC. | 38,013 | 29,666 | 91,014 | 59,408 | |||||||||||
Less: preferred stock dividends | (2,976) | (3,636) | (10,249) | (10,909) | |||||||||||
Less: original issuance costs of redeemed preferred stock | (3,349) | — | (3,349) | — | |||||||||||
Less: earnings attributable to participating securities | (143) | (129) | (423) | (389) | |||||||||||
NET INCOME ATTRIBUTABLE TO COMMON STOCKHOLDERS | $ | 31,545 | $ | 25,901 | $ | 76,993 | $ | 48,110 | |||||||
Net income attributable to common stockholders per share – basic | $ | 0.23 | $ | 0.21 | $ | 0.57 | $ | 0.40 | |||||||
Net income attributable to common stockholders per share – diluted | $ | 0.23 | $ | 0.21 | $ | 0.57 | $ | 0.40 | |||||||
Weighted-average shares of common stock outstanding – basic | 138,762 | 123,549 | 134,922 | 119,154 | |||||||||||
Weighted-average shares of common stock outstanding – diluted | 139,630 | 123,844 | 135,429 | 119,425 | |||||||||||
Rexford Industrial Realty, Inc. Same Property Portfolio Occupancy and NOI and Cash NOI (Unaudited, dollars in thousands) | |||||
Same Property Portfolio Occupancy: | |||||
September 30, | |||||
2021 | 2020 | Change (basis | |||
Weighted Average Occupancy:(1) | |||||
Los Angeles County | 30 bps | ||||
Orange County | 140 bps | ||||
San Bernardino County | 70 bps | ||||
San Diego County | 210 bps | ||||
Ventura County | 130 bps | ||||
Same Property Portfolio Weighted Average Occupancy | 80 bps | ||||
Ending Occupancy: | 50 bps | ||||
(1) | Calculated by averaging the occupancy rate at the end of each month in 3Q-2021 and June 2021 (for 3Q-2021) and the end of each month in 3Q-2020 and June 2020 (for 3Q-2020). |
Same Property Portfolio NOI and Cash NOI: | |||||||||||||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||||||
2021 | 2020 | $ | % | 2021 | 2020 | $ | % | ||||||||||||||||||||
Rental income | $ | 80,278 | $ | 74,543 | $ | 5,735 | $ | 236,442 | $ | 219,630 | $ | 16,812 | |||||||||||||||
Property expenses | 18,104 | 17,866 | 238 | 53,278 | 51,412 | 1,866 | |||||||||||||||||||||
Same Property Portfolio NOI | $ | 62,174 | $ | 56,677 | $ | 5,497 | $ | 183,164 | $ | 168,218 | $ | 14,946 | |||||||||||||||
Straight line rental revenue adjustment | (2,096) | (2,842) | 746 | (26.2)% | (5,713) | (10,588) | 4,875 | (46.0)% | |||||||||||||||||||
Amortization of above/below market lease intangibles | (1,280) | (1,956) | 676 | (34.6)% | (4,122) | (6,030) | 1,908 | (31.6)% | |||||||||||||||||||
Same Property Portfolio Cash NOI | $ | 58,798 | $ | 51,879 | $ | 6,919 | $ | 173,329 | $ | 151,600 | $ | 21,729 | |||||||||||||||
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 | Nine Months Ended | ||||||||||||||
2021 | 2020 | 2021 | 2020 | ||||||||||||
Net income | $ | 40,186 | $ | 31,197 | $ | 96,866 | $ | 62,740 | |||||||
Add: | |||||||||||||||
General and administrative | 11,806 | 9,464 | 33,981 | 27,753 | |||||||||||
Depreciation and amortization | 38,676 | 28,811 | 110,048 | 84,715 | |||||||||||
Acquisition expenses | 4 | 70 | 35 | 89 | |||||||||||
Interest expense | 10,427 | 7,299 | 29,772 | 22,176 | |||||||||||
Loss on extinguishment of debt | 505 | — | 505 | — | |||||||||||
Deduct: | |||||||||||||||
Management, leasing and development services | 136 | 118 | 350 | 325 | |||||||||||
Interest income | 7 | 116 | 36 | 279 | |||||||||||
Gain on sale of real estate | 13,702 | 13,669 | 27,312 | 13,669 | |||||||||||
Net operating income (NOI) | $ | 87,759 | $ | 62,938 | $ | 243,509 | $ | 183,200 | |||||||
Straight line rental revenue adjustment | (5,865) | (3,088) | (14,904) | (10,968) | |||||||||||
Amortization of above/below market lease intangibles | (3,191) | (2,751) | (9,289) | (7,822) | |||||||||||
Cash NOI | $ | 78,703 | $ | 57,099 | $ | 219,316 | $ | 164,410 | |||||||
NOI | $ | 87,759 | $ | 62,938 | $ | 243,509 | $ | 183,200 | |||||||
Non-Same Property Portfolio rental income | (34,982) | (9,079) | (82,698) | (21,252) | |||||||||||
Non-Same Property Portfolio property expenses | 9,397 | 2,818 | 22,353 | 6,270 | |||||||||||
Same Property Portfolio NOI | $ | 62,174 | $ | 56,677 | $ | 183,164 | $ | 168,218 | |||||||
Straight line rental revenue adjustment | (2,096) | (2,842) | (5,713) | (10,588) | |||||||||||
Amortization of above/below market lease intangibles | (1,280) | (1,956) | (4,122) | (6,030) | |||||||||||
Same Property Portfolio Cash NOI | $ | 58,798 | $ | 51,879 | $ | 173,329 | $ | 151,600 | |||||||
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 | Nine Months Ended | ||||||||||||||
2021 | 2020 | 2021 | 2020 | ||||||||||||
Net income | $ | 40,186 | $ | 31,197 | $ | 96,866 | $ | 62,740 | |||||||
Add: | |||||||||||||||
Depreciation and amortization | 38,676 | 28,811 | 110,048 | 84,715 | |||||||||||
Deduct: | |||||||||||||||
Gain on sale of real estate | 13,702 | 13,669 | 27,312 | 13,669 | |||||||||||
Funds From Operations (FFO) | $ | 65,160 | $ | 46,339 | $ | 179,602 | $ | 133,786 | |||||||
Less: preferred stock dividends | (2,976) | (3,636) | (10,249) | (10,909) | |||||||||||
Less: original issuance costs of redeemed preferred stock | (3,349) | — | (3,349) | — | |||||||||||
Less: FFO attributable to noncontrolling interests(1) | (3,277) | (2,017) | (9,667) | (5,472) | |||||||||||
Less: FFO attributable to participating securities(2) | (223) | (197) | (656) | (584) | |||||||||||
Company share of FFO | $ | 55,335 | $ | 40,489 | $ | 155,681 | $ | 116,821 | |||||||
Company Share of FFO per common share – basic | $ | 0.40 | $ | 0.33 | $ | 1.15 | $ | 0.98 | |||||||
Company Share of FFO per common share – diluted | $ | 0.40 | $ | 0.33 | $ | 1.15 | $ | 0.98 | |||||||
FFO | $ | 65,160 | $ | 46,339 | $ | 179,602 | $ | 133,786 | |||||||
Adjust: | |||||||||||||||
Acquisition expenses | 4 | 70 | 35 | 89 | |||||||||||
Loss on extinguishment of debt | 505 | — | 505 | — | |||||||||||
Amortization of loss on termination of interest rate swaps | 615 | — | 1,435 | — | |||||||||||
Core FFO | $ | 66,284 | $ | 46,409 | $ | 181,577 | $ | 133,875 | |||||||
Less: preferred stock dividends | (2,976) | (3,636) | (10,249) | (10,909) | |||||||||||
Less: Core FFO attributable to noncontrolling interest(1) | (3,475) | (2,019) | (9,905) | (5,474) | |||||||||||
Less: Core FFO attributable to participating securities(2) | (241) | (197) | (678) | (584) | |||||||||||
Company share of Core FFO | $ | 59,592 | $ | 40,557 | $ | 160,745 | $ | 116,908 | |||||||
Company share of Core FFO per common share – basic | $ | 0.43 | $ | 0.33 | $ | 1.19 | $ | 0.98 | |||||||
Company share of Core FFO per common share – diluted | $ | 0.43 | $ | 0.33 | $ | 1.19 | $ | 0.98 | |||||||
Weighted-average shares of common stock outstanding – basic | 138,762 | 123,549 | 134,922 | 119,154 | |||||||||||
Weighted-average shares of common stock outstanding – diluted | 139,630 | 123,844 | 135,429 | 119,425 | |||||||||||
(1) | Noncontrolling interests relate to interests in the Company's operating partnership, represented by common units and preferred units (Series 1 & 2 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. |
View original content:https://www.prnewswire.com/news-releases/rexford-industrial-announces-third-quarter-2021-financial-results-301405034.html
SOURCE Rexford Industrial Realty, Inc.
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