REXFORD INDUSTRIAL ANNOUNCES THIRD QUARTER 2022 FINANCIAL RESULTS
Rexford Industrial Realty reported strong Q3 2022 results, with net income of $36.8 million ($0.21/share) up from $31.5 million ($0.23/share) YoY. Core FFO surged 44.5% to $86.1 million, with a 16.3% rise in per share metrics. NOI increased 40.1% to $123 million. The company maintained a 98.6% average occupancy rate and executed 1.7 million square feet of leasing at impressive spreads of 88.6% (GAAP). Acquisitions reached $977.5 million, bolstering its balance sheet with a net debt-to-enterprise value ratio of 15.9%. The firm upgraded its guidance for net income and Core FFO for 2022.
- Core FFO increased by 44.5% YoY to $86.1 million.
- Occupancy rate stands at 98.6%, highlighting strong tenant demand.
- Executed leasing activity of 1.7 million square feet with 88.6% GAAP re-leasing spreads.
- Acquired 15 properties for $977.5 million, enhancing portfolio value.
- Upgraded full-year guidance for net income and Core FFO.
- Net income per share decreased from $0.23 to $0.21 YoY.
- Prior year included $13.7 million in gains on sale of real estate, affecting comparability.
LOS ANGELES, Oct. 19, 2022 /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 2022.
Third Quarter 2022 Financial and Operational Highlights:
- Net income attributable to common stockholders of
$36.8 million , or$0.21 per diluted share, as compared to$31.5 million , or$0.23 per diluted share, for the prior year quarter. - Company share of Core FFO of
$86.1 million , an increase of44.5% as compared to the prior year quarter. - Company share of Core FFO per diluted share of
$0.50 , an increase of16.3% as compared to the prior year quarter. - Consolidated Portfolio Net Operating Income (NOI) of
$123.0 million , an increase of40.1% as compared to the prior year quarter. - Same Property Portfolio NOI increased
7.2% and Same Property Portfolio Cash NOI increased9.7% as compared to the prior year quarter. 98.6% Average Same Property Portfolio occupancy.- Comparable rental rates on 1.7 million rentable square feet of new and renewal leases increased by
88.6% compared to prior rents on a GAAP basis and by62.9% on a cash basis. - Acquired 15 properties for an aggregate purchase price of
$977.5 million . - Issued a total of 11.5 million shares of common stock for total net proceeds of
$697.0 million . - Ended the quarter with a low-leverage balance sheet measured by a net debt-to-enterprise value ratio of
15.9% . - Received credit rating upgrades to BBB+ (S&P) and Baa2 (Moody's).
"Our team produced exceptional third quarter results, a testament to our entrepreneurial and differentiated business model focused on value creation within the infill Southern California industrial market. Despite growing macroeconomic uncertainty, our infill Southern California industrial markets continue to demonstrate healthy tenant demand, operating at
Financial Results:
The Company reported net income attributable to common stockholders for the third quarter of
The Company reported Core FFO for the third quarter of
In the third quarter, the Company's consolidated portfolio NOI and Cash NOI increased
In the third quarter, the Company's Same Property Portfolio NOI and Cash NOI increased
Operating Results:
Third quarter 2022 leasing activity demonstrates strong tenant demand fundamentals within Rexford Industrial's target Southern California infill markets:
Q3-2022 Leasing Activity | ||||||||
Releasing Spreads | ||||||||
# of Leases | SF of Leasing | GAAP | Cash | |||||
New Leases | 53 | 702,882 | 70.5 % | 53.6 % | ||||
Renewal Leases | 77 | 994,945 | 95.3 % | 66.3 % | ||||
Total Leases | 130 | 1,697,827 | 88.6 % | 62.9 % | ||||
As of September 30, 2022, the Company's Same Property Portfolio occupancy was
Transaction Activity:
During the third quarter of 2022, the Company completed 13 acquisitions with 2.2 million square feet of buildings on 105.1 acres of land, including 1.0 acres of land for near term redevelopment, for an aggregate purchase price of
- 13301 Main Street, Los Angeles, located within the LA – South Bay submarket, was acquired for
$51.2 million , or$478 per square foot. The 106,969 square foot, single-tenant modern industrial building, situated on 4.5 acres, is leased and generates an initial4.2% unlevered yield on investment, growing over time by4.0% annual contractual rent increases.
Subsequent to the third quarter of 2022, the Company completed one acquisition through an off-market transaction in October:
- 20851 Currier Road, City of Industry, located within the LA – San Gabriel Valley submarket, was acquired for
$21.8 million , or$367 per square foot. The 59,412 square foot, Class-A single tenant building, situated on 2.8 acres, is currently vacant and projected to generate a5.0% unlevered stabilized yield on total investment following a light renovation and lease up at market rents.
Year-to-date, including the property acquired subsequent to quarter end, the Company has completed 46 acquisitions with 5.1 million square feet of buildings on 275.6 acres of land, including 31.4 acres of land for near term redevelopment, for an aggregate purchase price of
During the third quarter of 2022, the Company stabilized two repositioning projects with 230,353 square feet and
Balance Sheet:
The Company ended the third quarter with
As previously disclosed, on July 19, 2022, the Company amended its senior unsecured credit agreement to add a
On July 21, 2022, the Company executed five interest rate swap agreements to manage its exposure to changes in 1-month term SOFR related to
During the third quarter of 2022, the Company executed on its ATM program, selling 5,127,587 shares of common stock subject to forward sale agreements at an average price of
As of September 30, 2022, the
In the third quarter of 2022, Rexford Industrial's investment grade issuer and senior unsecured ratings were upgraded by Moody's Investors Service ("Moody's") and S&P Global Ratings ("S&P"). Moody's upgraded the Company's ratings to Baa2 from Baa3 with a stable outlook. S&P upgraded the Company's ratings to BBB+ from BBB with a stable outlook.
Dividends:
On October 17, 2022, the Company's Board of Directors declared a dividend in the amount of
On October 17, 2022, the Company's Board of Directors declared a quarterly dividend of
Guidance
The Company is revising its full year 2022 guidance as indicated below. The Core FFO guidance refers only to the Company's in-place portfolio as of October 19, 2022, and does not include any assumptions for other acquisitions, dispositions or related balance sheet activities that have not closed. Please refer to the Company's supplemental information package for a complete list of guidance and 2022 Guidance Rollforward.
2022 Outlook (1) | Q3'22 Updated | Q2'22 Guidance | ||
Net Income Attributable to Common Stockholders per diluted share | ||||
Company share of Core FFO per diluted share | ||||
Same Property Portfolio NOI Growth | ||||
Same Property Portfolio Cash NOI Growth | ||||
Average Same Property Portfolio Occupancy (Full Year) | ||||
General and Administrative Expenses (2) | ||||
Net Interest Expense |
(1) | 2022 Guidance represents the in-place portfolio as of October 19, 2022, and does not include any assumptions for prospective acquisitions, dispositions or related balance sheet activities that have not closed. |
(2) | 2022 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 impact of the ongoing COVID-19 pandemic, 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 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:
A conference call with senior management will be held on Thursday, October 20, 2022, 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.
1-877-407-0789 (for domestic callers)
1-201-689-8562 (for international callers)
Conference call playback will be available through November 20, 2022 and can be accessed using the following numbers and pass code 13733021.
1-844-512-2921 (for domestic callers)
1-412-317-6671 (for international callers)
A live webcast and replay of the conference call will also be available at www.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, 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 346 properties with approximately 41.8 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, 2021, 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.
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, (iv) preferred stock redemption charges and (v) 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.
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 2022 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.
2022 Estimate | |||
Low | High | ||
Net income attributable to common stockholders | $ 0.88 | $ 0.90 | |
Company share of depreciation and amortization | 1.09 | 1.09 | |
Company share of gains on sale of real estate | (0.05) | (0.05) | |
Company share of FFO | $ 1.92 | $ 1.94 | |
Add: Core FFO adjustments(1) | 0.01 | 0.01 | |
Company share of Core FFO | $ 1.93 | $ 1.95 | |
(1) | Core FFO adjustments consist of (i) acquisition expenses, (ii) loss on extinguishment of debt and (iii) the amortization of the loss on termination of interest rate swaps. |
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 2022 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, 2021 through September 30, 2022, and excludes properties that were acquired or sold during the period from January 1, 2021 through September 30, 2022, and properties acquired prior to January 1, 2021, that were classified as current or future repositioning, redevelopment or lease-up during 2021 or 2022 (unless otherwise noted), which we believe significantly affected the properties' results during the comparative periods. As of September 30, 2022, our 2022 Same Property Portfolio consists of 224 properties aggregating 28,581,460 rentable square feet.
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: As of September 30, 2022, we had consolidated indebtedness of
Contact:
Aric Chang
Senior Vice President, Investor Relations and Capital Markets
310.734.6952
achang@rexfordindustrial.com
Rexford Industrial Realty, Inc. Consolidated Balance Sheets (In thousands except share data) | |||
September 30, 2022 | December 31, 2021 | ||
(unaudited) | |||
ASSETS | |||
Land | $ 5,559,795 | $ 4,143,021 | |
Buildings and improvements | 3,275,572 | 2,588,836 | |
Tenant improvements | 141,413 | 127,708 | |
Furniture, fixtures, and equipment | 132 | 132 | |
Construction in progress | 88,545 | 71,375 | |
Total real estate held for investment | 9,065,457 | 6,931,072 | |
Accumulated depreciation | (576,004) | (473,382) | |
Investments in real estate, net | 8,489,453 | 6,457,690 | |
Cash and cash equivalents | 37,141 | 43,987 | |
Restricted cash | — | 11 | |
Rents and other receivables, net | 12,592 | 11,027 | |
Deferred rent receivable, net | 81,867 | 61,511 | |
Deferred leasing costs, net | 42,758 | 32,940 | |
Deferred loan costs, net | 5,184 | 1,961 | |
Acquired lease intangible assets, net | 175,913 | 132,158 | |
Acquired indefinite-lived intangible | 5,156 | 5,156 | |
Interest rate swap asset | 12,565 | — | |
Other assets | 27,868 | 19,066 | |
Acquisition related deposits | 8,200 | 8,445 | |
Assets associated with real estate held for sale, net | — | 7,213 | |
Total Assets | $ 8,898,697 | $ 6,781,165 | |
LIABILITIES & EQUITY | |||
Liabilities | |||
Notes payable | $ 1,934,082 | $ 1,399,565 | |
Interest rate swap liability | — | 7,482 | |
Accounts payable, accrued expenses and other liabilities | 113,770 | 65,833 | |
Dividends and distributions payable | 59,926 | 40,143 | |
Acquired lease intangible liabilities, net | 154,851 | 127,017 | |
Tenant security deposits | 69,756 | 57,370 | |
Prepaid rents | 19,992 | 15,829 | |
Liabilities associated with real estate held for sale | — | 231 | |
Total Liabilities | 2,352,377 | 1,713,470 | |
Equity | |||
Rexford Industrial Realty, Inc. stockholders' equity | |||
Preferred stock, | |||
| 72,443 | 72,443 | |
| 83,233 | 83,233 | |
Common Stock, | 1,826 | 1,605 | |
Additional paid in capital | 6,254,853 | 4,828,292 | |
Cumulative distributions in excess of earnings | (237,135) | (191,120) | |
Accumulated other comprehensive loss | 9,223 | (9,874) | |
Total stockholders' equity | 6,184,443 | 4,784,579 | |
Noncontrolling interests | 361,877 | 283,116 | |
Total Equity | 6,546,320 | 5,067,695 | |
Total Liabilities and Equity | $ 8,898,697 | $ 6,781,165 | |
Rexford Industrial Realty, Inc. Consolidated Statements of Operations (Unaudited and in thousands, except per share data) | |||||||
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||
2022 | 2021 | 2022 | 2021 | ||||
REVENUES | |||||||
Rental income | $ 162,581 | $ 115,260 | $ 452,156 | $ 319,140 | |||
Management and leasing services | 163 | 136 | 456 | 350 | |||
Interest income | 3 | 7 | 5 | 36 | |||
TOTAL REVENUES | 162,747 | 115,403 | 452,617 | 319,526 | |||
OPERATING EXPENSES | |||||||
Property expenses | 39,614 | 27,501 | 108,448 | 75,631 | |||
General and administrative | 14,951 | 11,806 | 44,531 | 33,981 | |||
Depreciation and amortization | 51,146 | 38,676 | 140,226 | 110,048 | |||
TOTAL OPERATING EXPENSES | 105,711 | 77,983 | 293,205 | 219,660 | |||
OTHER EXPENSES | |||||||
Other expenses(1) | 413 | 4 | 746 | 35 | |||
Interest expense | 14,975 | 10,427 | 34,826 | 29,772 | |||
TOTAL EXPENSES | 121,099 | 88,414 | 328,777 | 249,467 | |||
Loss on extinguishment of debt | — | (505) | (877) | (505) | |||
Gains on sale of real estate | — | 13,702 | 8,486 | 27,312 | |||
NET INCOME | 41,648 | 40,186 | 131,449 | 96,866 | |||
Less: net income attributable to noncontrolling interests | (2,368) | (2,173) | (7,142) | (5,852) | |||
NET INCOME ATTRIBUTABLE TO REXFORD INDUSTRIAL REALTY, INC. | 39,280 | 38,013 | 124,307 | 91,014 | |||
Less: preferred stock dividends | (2,314) | (2,976) | (6,943) | (10,249) | |||
Less: original issuance costs of redeemed preferred stock | — | (3,349) | — | (3,349) | |||
Less: earnings attributable to participating securities | (201) | (143) | (605) | (423) | |||
NET INCOME ATTRIBUTABLE TO COMMON STOCKHOLDERS | $ 36,765 | $ 31,545 | $ 116,759 | $ 76,993 | |||
Net income attributable to common stockholders per share – basic | $ 0.21 | $ 0.23 | $ 0.70 | $ 0.57 | |||
Net income attributable to common stockholders per share – diluted | $ 0.21 | $ 0.23 | $ 0.70 | $ 0.57 | |||
Weighted-average shares of common stock outstanding – basic | 171,909 | 138,762 | 165,852 | 134,922 | |||
Weighted-average shares of common stock outstanding – diluted | 172,831 | 139,630 | 166,401 | 135,429 | |||
(1) | Acquisition expenses for the three and nine months ended September 30, 2021, have been reclassified to "Other expenses" to conform to the current period presentation. |
Rexford Industrial Realty, Inc. Same Property Portfolio Occupancy and NOI and Cash NOI (Unaudited, dollars in thousands)
| |||||
Same Property Portfolio Occupancy: | |||||
September 30, | |||||
2022 | 2021 | Change (basis points) | |||
Quarterly Weighted Average Occupancy:(1) | |||||
Los Angeles County | 99.1 % | 98.6 % | 50 bps | ||
Orange County | 98.8 % | 98.9 % | (10) bps | ||
Riverside / San Bernardino County | 96.5 % | 99.1 % | (260) bps | ||
San Diego County | 98.9 % | 98.3 % | 60 bps | ||
Ventura County | 99.2 % | 97.3 % | 190 bps | ||
Same Property Portfolio Weighted Average Occupancy | 98.6 % | 98.6 % | — bps | ||
Ending Occupancy: | 98.4 % | 98.8 % | (40) bps | ||
(1) | Calculated by averaging the occupancy rate at the end of each month in 3Q-2022 and June 2022 (for 3Q-2022) and the end of each month in 3Q-2021 and June 2021 (for 3Q-2021). |
Same Property Portfolio NOI and Cash NOI: | |||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2022 | 2021 | $ Change | % Change | 2022 | 2021 | $ Change | % Change | ||||||||
Rental income | $ 96,156 | $ 7,307 | 7.6 % | $ 305,883 | $ 282,791 | $ 23,092 | 8.2 % | ||||||||
Property expenses | 24,286 | 22,320 | 1,966 | 8.8 % | 72,278 | 65,321 | 6,957 | 10.7 % | |||||||
Same Property Portfolio NOI | $ 79,177 | $ 73,836 | $ 5,341 | 7.2 % | $ 233,605 | $ 217,470 | $ 16,135 | 7.4 % | |||||||
Straight line rental revenue adjustment | (2,329) | (3,137) | 808 | (25.8) % | (8,251) | (10,864) | 2,613 | (24.1) % | |||||||
Amortization of above/below market lease intangibles | (1,527) | (2,018) | 491 | (24.3) % | (4,734) | (6,907) | 2,173 | (31.5) % | |||||||
Same Property Portfolio Cash NOI | $ 75,321 | $ 68,681 | $ 6,640 | 9.7 % | $ 220,620 | $ 199,699 | $ 20,921 | 10.5 % | |||||||
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 | Nine Months Ended | ||||||
2022 | 2021 | 2022 | 2021 | ||||
Net income | $ 41,648 | $ 40,186 | $ 131,449 | $ 96,866 | |||
Add: | |||||||
General and administrative | 14,951 | 11,806 | 44,531 | 33,981 | |||
Depreciation and amortization | 51,146 | 38,676 | 140,226 | 110,048 | |||
Other expenses | 413 | 4 | 746 | 35 | |||
Interest expense | 14,975 | 10,427 | 34,826 | 29,772 | |||
Loss on extinguishment of debt | — | 505 | 877 | 505 | |||
Deduct: | |||||||
Management, leasing and development services | 163 | 136 | 456 | 350 | |||
Interest income | 3 | 7 | 5 | 36 | |||
Gain on sale of real estate | — | 13,702 | 8,486 | 27,312 | |||
Net operating income (NOI) | $ 122,967 | $ 87,759 | $ 343,708 | $ 243,509 | |||
Straight line rental revenue adjustment | (8,411) | (5,865) | (23,753) | (14,904) | |||
Amortization of above/below market lease intangibles | (7,033) | (3,191) | (18,250) | (9,289) | |||
Cash NOI | $ 107,523 | $ 78,703 | $ 301,705 | $ 219,316 | |||
NOI | $ 122,967 | $ 87,759 | $ 343,708 | $ 243,509 | |||
Non-Same Property Portfolio rental income | (59,118) | (19,104) | (146,273) | (36,349) | |||
Non-Same Property Portfolio property expenses | 15,328 | 5,181 | 36,170 | 10,310 | |||
Same Property Portfolio NOI | $ 79,177 | $ 73,836 | $ 233,605 | $ 217,470 | |||
Straight line rental revenue adjustment | (2,329) | (3,137) | (8,251) | (10,864) | |||
Amortization of above/below market lease intangibles | (1,527) | (2,018) | (4,734) | (6,907) | |||
Same Property Portfolio Cash NOI | $ 75,321 | $ 68,681 | $ 220,620 | $ 199,699 | |||
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 | ||||||
2022 | 2021 | 2022 | 2021 | ||||
Net income | $ 41,648 | $ 40,186 | $ 131,449 | $ 96,866 | |||
Add: | |||||||
Depreciation and amortization | 51,146 | 38,676 | 140,226 | 110,048 | |||
Deduct: | |||||||
Gain on sale of real estate | — | 13,702 | 8,486 | 27,312 | |||
Funds From Operations (FFO) | $ 92,794 | $ 65,160 | $ 263,189 | $ 179,602 | |||
Less: preferred stock dividends | (2,314) | (2,976) | (6,943) | (10,249) | |||
Less: original issuance costs of redeemed preferred stock | — | (3,349) | — | (3,349) | |||
Less: FFO attributable to noncontrolling interests(1) | (4,454) | (3,277) | (12,372) | (9,667) | |||
Less: FFO attributable to participating securities(2) | (306) | (223) | (909) | (656) | |||
Company share of FFO | $ 85,720 | $ 55,335 | $ 242,965 | $ 155,681 | |||
Company Share of FFO per common share – basic | $ 0.50 | $ 0.40 | $ 1.46 | $ 1.15 | |||
Company Share of FFO per common share – diluted | $ 0.50 | $ 0.40 | $ 1.46 | $ 1.15 | |||
FFO | $ 92,794 | $ 65,160 | $ 263,189 | $ 179,602 | |||
Adjust: | |||||||
Acquisition expenses | 359 | 4 | 451 | 35 | |||
Loss on extinguishment of debt | — | 505 | 877 | 505 | |||
Amortization of loss on termination of interest rate swaps | 59 | 615 | 194 | 1,435 | |||
Core FFO | $ 93,212 | $ 66,284 | $ 264,711 | $ 181,577 | |||
Less: preferred stock dividends | (2,314) | (2,976) | (6,943) | (10,249) | |||
Less: Core FFO attributable to noncontrolling interest(1) | (4,471) | (3,475) | (12,433) | (9,905) | |||
Less: Core FFO attributable to participating securities(2) | (307) | (241) | (914) | (678) | |||
Company share of Core FFO | $ 86,120 | $ 59,592 | $ 244,421 | $ 160,745 | |||
Company share of Core FFO per common share – basic | $ 0.50 | $ 0.43 | $ 1.47 | $ 1.19 | |||
Company share of Core FFO per common share – diluted | $ 0.50 | $ 0.43 | $ 1.47 | $ 1.19 | |||
Weighted-average shares of common stock outstanding – basic | 171,909 | 138,762 | 165,852 | 134,922 | |||
Weighted-average shares of common stock outstanding – diluted | 172,831 | 139,630 | 166,401 | 135,429 | |||
(1) | Noncontrolling interests relate to interests in the Company's operating partnership, represented by common units and preferred units |
(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-2022-financial-results-301654072.html
SOURCE Rexford Industrial Realty, Inc.
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