Rexford Industrial Announces Third Quarter 2024 Financial Results
Rexford Industrial Realty (NYSE: REXR) announced its Q3 2024 financial results, showing strong performance. Net income rose to $65.1 million, or $0.30 per share, from $56.3 million, or $0.27 per share, in Q3 2023. Core FFO increased by 13.1% to $130.0 million, or $0.59 per share. NOI for the consolidated portfolio grew by 17.6% to $183.5 million. Same Property Portfolio NOI and Cash NOI increased by 2.6% and 5.3%, respectively. The average Same Property Portfolio occupancy was 96.9%, with rental rates rising 39.2% on a GAAP basis and 26.7% on a cash basis for new and renewal leases.
Rexford completed two acquisitions for $60.5 million and sold one property for $7.3 million. It ended the quarter with a net debt-to-enterprise value ratio of 22.2%. The company updated its 2024 guidance, projecting a net income of $1.20-$1.22 per share and Core FFO of $2.33-$2.35 per share. The board declared dividends for common and preferred stockholders. A conference call will be held on October 17, 2024, to discuss these results.
Rexford Industrial Realty (NYSE: REXR) ha annunciato i risultati finanziari del terzo trimestre 2024, mostrando una forte performance. Il reddito netto è aumentato a 65,1 milioni di dollari, ovvero 0,30 dollari per azione, rispetto ai 56,3 milioni di dollari, ovvero 0,27 dollari per azione, nel terzo trimestre 2023. Il Core FFO è aumentato del 13,1% a 130,0 milioni di dollari, ovvero 0,59 dollari per azione. NOI per il portafoglio consolidato è cresciuto del 17,6% a 183,5 milioni di dollari. NOI del Portafoglio Proprietà Stessa e Cash NOI sono aumentati rispettivamente del 2,6% e del 5,3%. L'occupazione media del Portafoglio Proprietà Stessa era del 96,9%, con tassi di affitto in aumento del 39,2% su base GAAP e del 26,7% su base di cassa per affitti nuovi e di rinnovo.
Rexford ha completato due acquisizioni per 60,5 milioni di dollari e venduto una proprietà per 7,3 milioni di dollari. Ha concluso il trimestre con un rapporto debito netto-valore aziendale del 22,2%. La società ha aggiornato le sue previsioni per il 2024, prevedendo un reddito netto compreso tra 1,20 e 1,22 dollari per azione e un Core FFO compreso tra 2,33 e 2,35 dollari per azione. Il consiglio ha dichiarato dividendi per gli azionisti comuni e privilegiati. Una conferenza telefonica si svolgerà il 17 ottobre 2024 per discutere di questi risultati.
Rexford Industrial Realty (NYSE: REXR) anunció sus resultados financieros del tercer trimestre de 2024, mostrando un fuerte rendimiento. Los ingresos netos aumentaron a 65,1 millones de dólares, o 0,30 dólares por acción, desde 56,3 millones de dólares, o 0,27 dólares por acción, en el tercer trimestre de 2023. El Core FFO aumentó un 13,1% a 130,0 millones de dólares, o 0,59 dólares por acción. NOI para la cartera consolidada creció un 17,6% a 183,5 millones de dólares. El NOI de la Cartera de Propiedades Comparables y el Cash NOI aumentaron un 2,6% y un 5,3%, respectivamente. La ocupación promedio de la Cartera de Propiedades Comparables fue del 96,9%, con tasas de alquiler que aumentaron un 39,2% en base GAAP y un 26,7% en base de efectivo para nuevos contratos y renovaciones.
Rexford completó dos adquisiciones por 60,5 millones de dólares y vendió una propiedad por 7,3 millones de dólares. Terminó el trimestre con un ratio de deuda neta-valor empresarial del 22,2%. La empresa actualizó su guía para 2024, proyectando un ingreso neto de 1,20 a 1,22 dólares por acción y un Core FFO de 2,33 a 2,35 dólares por acción. La junta declaró dividendos para los accionistas comunes y preferentes. Se llevará a cabo una conferencia telefónica el 17 de octubre de 2024 para discutir estos resultados.
렉스퍼드 산업 부동산 (NYSE: REXR)은 2024년 3분기 재무 결과를 발표하며 강력한 성과를 보여주었습니다. 순소득은 5630만 달러에서 6510만 달러(주당 0.30달러)로 증가했습니다. Core FFO는 13.1% 증가하여 1억 3천만 달러(주당 0.59달러)에 도달했습니다. NOI는 통합 포트폴리오에서 176% 증가하여 1억 8350만 달러에 도달했습니다. 동일 부동산 포트폴리오 NOI 및 Cash NOI는 각각 2.6% 및 5.3% 증가했습니다. 동일 부동산 포트폴리오의 평균 점유율은 96.9%였으며, 새 계약 및 갱신 계약의 임대료는 GAAP 기준으로 39.2%, 현금 기준으로 26.7% 상승했습니다.
렉스퍼드는 6천5백만 달러에 두 건의 인수를 완료하고, 730만 달러에 한 건의 부동산을 판매했습니다. 분기는 순부채-기업가치 비율 22.2%로 마감했습니다. 회사는 2024년 전망을 업데이트하며, 주당 1.20~1.22달러의 순소득과 2.33~2.35달러의 Core FFO를 예상하고 있습니다. 이사회는 보통주 및 우선주 주주에 대한 배당금을 선언했습니다. 이 결과에 대해 논의하기 위해 2024년 10월 17일에 전화 회의가 진행될 예정입니다.
Rexford Industrial Realty (NYSE: REXR) a annoncé ses résultats financiers pour le troisième trimestre 2024, montrant une forte performance. Le revenu net a augmenté à 65,1 millions de dollars, soit 0,30 dollar par action, contre 56,3 millions de dollars, soit 0,27 dollar par action, au troisième trimestre 2023. Le Core FFO a augmenté de 13,1% pour atteindre 130,0 millions de dollars, soit 0,59 dollar par action. NOI pour le portefeuille consolidé a augmenté de 17,6% pour atteindre 183,5 millions de dollars. Le NOI du portefeuille de propriétés comparables et le Cash NOI ont augmenté respectivement de 2,6% et 5,3%. Le taux d'occupation moyen du portefeuille de propriétés comparables était de 96,9%, avec des taux de location en hausse de 39,2% sur une base GAAP et de 26,7% sur une base de liquidité pour les nouveaux baux et les renouvellements.
Rexford a réalisé deux acquisitions pour 60,5 millions de dollars et a vendu une propriété pour 7,3 millions de dollars. L'entreprise a terminé le trimestre avec un ratio de dette nette / valeur d'entreprise de 22,2%. Elle a mis à jour ses prévisions pour 2024, projetant un revenu net de 1,20 à 1,22 dollar par action et un Core FFO de 2,33 à 2,35 dollars par action. Le conseil a déclaré des dividendes pour les actionnaires ordinaires et privilégiés. Une conférence téléphonique aura lieu le 17 octobre 2024 pour discuter de ces résultats.
Rexford Industrial Realty (NYSE: REXR) hat seine Finanzzahlen für das 3. Quartal 2024 bekannt gegeben, die eine starke Leistung zeigen. Der Nettogewinn stieg auf 65,1 Millionen Dollar, oder 0,30 Dollar pro Aktie, im Vergleich zu 56,3 Millionen Dollar, oder 0,27 Dollar pro Aktie, im 3. Quartal 2023. Das Core FFO erhöhte sich um 13,1% auf 130,0 Millionen Dollar, oder 0,59 Dollar pro Aktie. NOI für das konsolidierte Portfolio wuchs um 17,6% auf 183,5 Millionen Dollar. Der NOI für das Comparable Property Portfolio und der Cash NOI stiegen um 2,6% und 5,3% respektive. Die durchschnittliche Belegung des Comparable Property Portfolio betrug 96,9%, mit Mietpreiserhöhungen von 39,2% auf GAAP-Basis und 26,7% auf Cash-Basis für neue und erneuerte Mietverträge.
Rexford hat zwei Akquisitionen für 60,5 Millionen Dollar abgeschlossen und eine Immobilie für 7,3 Millionen Dollar verkauft. Am Ende des Quartals hatte das Unternehmen ein Verhältnis von Nettoverschuldung zu Unternehmenswert von 22,2%. Das Unternehmen hat seine Prognose für 2024 aktualisiert und erwartet einen Nettogewinn von 1,20-1,22 Dollar pro Aktie und ein Core FFO von 2,33-2,35 Dollar pro Aktie. Der Vorstand hat Dividenden für Stamm- und Vorzugsaktionäre erklärt. Eine Telefonkonferenz wird am 17. Oktober 2024 stattfinden, um diese Ergebnisse zu erörtern.
- Net income increased to $65.1 million, up from $56.3 million.
- Core FFO rose by 13.1% to $130.0 million.
- Consolidated Portfolio NOI grew by 17.6% to $183.5 million.
- Rental rates increased by 39.2% on a GAAP basis.
- Completed acquisitions worth $60.5 million.
- None.
Insights
Rexford Industrial's Q3 2024 results demonstrate strong performance and growth. Key highlights include:
- Net income up
15.6% to$65.1 million - Core FFO up
13.1% to$130.0 million - Same Property Portfolio NOI increased
2.6% - Impressive leasing spreads of
39.2% on a GAAP basis
The company's focus on infill Southern California markets continues to drive results, with high occupancy rates and favorable supply-demand dynamics. Their low leverage (net debt-to-enterprise value of
Rexford's value-add strategy through acquisitions and redevelopments is yielding strong returns, with stabilized yields of
While guidance was only slightly raised, the consistent execution and strong market fundamentals bode well for continued outperformance. The industrial real estate sector remains robust, particularly in supply-constrained markets like Southern California.
Rexford's Q3 results underscore the strength of their niche strategy in infill Southern California. The
Their acquisition strategy is savvy, targeting properties with value-add potential. The Torrance acquisition at
The company's ability to maintain high occupancy (
Rexford's focus on redevelopment and repositioning (achieving
Third Quarter 2024 Financial and Operational Highlights:
- Net income attributable to common stockholders of
$65.1 million $0.30 $56.3 million $0.27 - Company share of Core FFO of
$130.0 million 13.1% as compared to the prior year quarter. - Company share of Core FFO per diluted share of
$0.59 5.4% as compared to the prior year quarter. - Consolidated Portfolio NOI of
$183.5 million 17.6% as compared to the prior year quarter. - Same Property Portfolio NOI increased
2.6% and Same Property Portfolio Cash NOI increased5.3% as compared to the prior year quarter. - Average Same Property Portfolio occupancy of
96.9% . - Comparable rental rates increased by
39.2% compared to prior rents on a GAAP basis and by26.7% on a cash basis on 1.6 million rentable square feet of new and renewal leases. - Completed two acquisitions for an aggregate purchase price of
$60.5 million $7.3 million - Ended the quarter with a low-leverage balance sheet measured by a net debt-to-enterprise value ratio of
22.2% .
"Rexford Industrial continues to deliver strong operating results, underscoring the quality of our value-driven business model and dynamic team," stated Michael Frankel and Howard Schwimmer, Co-Chief Executive Officers of the Company. "As we look ahead, we believe our extensive value-creation opportunity and favorable supply-demand dynamics inherent within our infill
Financial Results:
The Company reported net income attributable to common stockholders for the third quarter of
The Company reported its share of 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 2024 activity demonstrates strong leasing fundamentals within Rexford Industrial's target infill
Q3-2024 Leasing Activity | ||||||||
Releasing Spreads | ||||||||
# of Leases | SF of Leasing | GAAP | Cash | |||||
New Leases | 56 | 994,566 | 35.8 % | 25.7 % | ||||
Renewal Leases | 52 | 599,529 | 41.4 % | 27.3 % | ||||
Total Leases | 108 | 1,594,095 | 39.2 % | 26.7 % | ||||
As of September 30, 2024, the Company's Same Property Portfolio occupancy was
Transaction Activity:
During the third quarter of 2024, the Company completed two acquisitions totaling
- 950 W. 190th Street,
Torrance , located in theLos Angeles — South Bay submarket, for$41.3 million $103 Los Angeles andLong Beach as well as the LAX air freight terminal. Upon expiration of a short-term sale leaseback, the Company intends to redevelop the site into a 195,000-square-foot Class-A industrial facility, featuring a 1-acre paved storage yard. The investment generates an initial7.3% unlevered cash yield and is projected to stabilize at an unlevered cash yield of6.7% on total investment. According to CBRE, the vacancy rate in the 198-million-square-foot LA — South Bay submarket was4.2% at the end of the third quarter 2024. - 12900 Alondra Boulevard,
Cerritos , located in theLos Angeles — Mid Counties submarket, for$19.2 million $232 35% below market rates. The investment is generating a4.8% initial unlevered cash yield and is projected to stabilize in year three at a6.5% unlevered cash yield. According to CBRE, the vacancy rate in the 103-million-square-foot LA – Mid Counties submarket was5.2% at the end of the third quarter 2024.
Subsequent to the third quarter of 2024, through an off-market transaction, the Company acquired:
- 13201 Dahlia Street,
Fontana , located in the Inland Empire — West submarket, for$70.1 million $251 5.2% unlevered cash yield. According to CBRE, the vacancy rate in the 354-million-square-foot IE — West submarket was5.6% at the end of the third quarter 2024.
Year to date, the Company has completed
The Company currently has a near-term acquisition pipeline comprising approximately
During the third quarter of 2024, the Company completed the disposition of 2553 Garfield Avenue,
Year to date, the Company has sold five properties for an aggregate sales price of
During the third quarter of 2024, the Company rent commenced and stabilized three repositioning and redevelopment projects equal to 327,458 square feet, representing a total investment of
Year to date, the Company stabilized seven repositioning and redevelopment projects totaling 450,477 square feet, which represent a total investment of
Balance Sheet:
The Company ended the third quarter with
During the third quarter of 2024, the Company partially settled the outstanding forward equity sale agreement related to its March 2024 public offering by issuing 1,650,916 shares of common stock for net proceeds of
Subsequent to the third quarter of 2024, the Company partially settled the outstanding forward equity sale agreement related to its March 2024 public offering by issuing 2,884,380 shares of common stock for net proceeds of
As of October 16, 2024, the Company had approximately
During the third quarter of 2024, the Company did not execute on its ATM Program. As of September 30, 2024, the Company's ATM Program had approximately
Dividends:
On October 14, 2024, the Company's Board of Directors authorized a dividend in the amount of
On October 14, 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 October 16, 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) | Q3 2024 Updated | Q2 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 October 16, 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 September 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). Our 2024 Same Property Portfolio represents approximately |
(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, October 17, 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 | $ 1.20 | $ 1.22 | |
Company share of depreciation and amortization | 1.21 | 1.21 | |
Company share of gains on sale of real estate(1) | (0.08) | (0.08) | |
Company share of Core FFO | $ 2.33 | $ 2.35 | |
(1) | Reflects the sale of five properties during the nine months ended September 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 September 30, 2024, and excludes (i) properties that were acquired or sold during the period from January 1, 2023 through September 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 September 30, 2024, our 2024 Same Property Portfolio consisted of buildings aggregating 36,961,821 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 September 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) | |||
September 30, 2024 | December 31, 2023 | ||
(unaudited) | |||
ASSETS | |||
Land | $ 7,703,232 | $ 6,815,622 | |
Buildings and improvements | 4,416,032 | 3,933,379 | |
Tenant improvements | 181,785 | 167,251 | |
Furniture, fixtures, and equipment | 132 | 132 | |
Construction in progress | 370,431 | 240,010 | |
Total real estate held for investment | 12,671,612 | 11,156,394 | |
Accumulated depreciation | (925,373) | (782,461) | |
Investments in real estate, net | 11,746,239 | 10,373,933 | |
Cash and cash equivalents | 61,836 | 33,444 | |
Loan receivable, net | 123,129 | 122,784 | |
Rents and other receivables, net | 17,315 | 17,494 | |
Deferred rent receivable, net | 151,637 | 123,325 | |
Deferred leasing costs, net | 69,152 | 59,351 | |
Deferred loan costs, net | 2,356 | 3,426 | |
Acquired lease intangible assets, net | 205,510 | 153,670 | |
Acquired indefinite-lived intangible asset | 5,156 | 5,156 | |
Interest rate swap assets | 3,880 | 9,896 | |
Other assets | 34,092 | 25,225 | |
Acquisition related deposits | — | 2,125 | |
Total Assets | $ 12,420,302 | $ 10,929,829 | |
LIABILITIES & EQUITY | |||
Liabilities | |||
Notes payable | $ 3,350,190 | $ 2,225,914 | |
Interest rate swap liability | 295 | — | |
Accounts payable, accrued expenses and other liabilities | 169,084 | 128,842 | |
Dividends and distributions payable | 95,288 | 83,733 | |
Acquired lease intangible liabilities, net | 155,328 | 147,561 | |
Tenant security deposits | 91,983 | 84,872 | |
Tenant prepaid rents | 93,218 | 115,002 | |
Total Liabilities | 3,955,386 | 2,785,924 | |
Equity | |||
Rexford Industrial Realty, Inc. stockholders' equity | |||
Preferred stock, | |||
| 72,443 | 72,443 | |
| 83,233 | 83,233 | |
Common Stock, | 2,195 | 2,123 | |
Additional paid in capital | 8,318,979 | 7,940,781 | |
Cumulative distributions in excess of earnings | (407,695) | (338,835) | |
Accumulated other comprehensive loss | 1,474 | 7,172 | |
Total stockholders' equity | 8,070,629 | 7,766,917 | |
Noncontrolling interests | 394,287 | 376,988 | |
Total Equity | 8,464,916 | 8,143,905 | |
Total Liabilities and Equity | $ 12,420,302 | $ 10,929,829 | |
Rexford Industrial Realty, Inc. Consolidated Statements of Operations (Unaudited and in thousands, except per share data) | |||||||
Three Months Ended | Nine Months Ended | ||||||
2024 | 2023 | 2024 | 2023 | ||||
REVENUES | |||||||
Rental income | $ 238,396 | $ 204,212 | $ 682,359 | $ 583,474 | |||
Management and leasing services | 156 | 158 | 444 | 519 | |||
Interest income | 3,291 | 1,029 | 10,709 | 3,408 | |||
TOTAL REVENUES | 241,843 | 205,399 | 693,512 | 587,401 | |||
OPERATING EXPENSES | |||||||
Property expenses | 54,867 | 48,085 | 154,254 | 135,220 | |||
General and administrative | 20,926 | 18,575 | 60,213 | 55,039 | |||
Depreciation and amortization | 69,241 | 60,449 | 203,415 | 178,671 | |||
TOTAL OPERATING EXPENSES | 145,034 | 127,109 | 417,882 | 368,930 | |||
OTHER EXPENSES | |||||||
Other expenses | 492 | 551 | 2,204 | 1,504 | |||
Interest expense | 27,340 | 15,949 | 70,423 | 46,830 | |||
TOTAL EXPENSES | 172,866 | 143,609 | 490,509 | 417,264 | |||
Gains on sale of real estate | 1,745 | — | 18,013 | 12,133 | |||
NET INCOME | 70,722 | 61,790 | 221,016 | 182,270 | |||
Less: net income attributable to noncontrolling interests | (2,952) | (2,824) | (9,399) | (8,605) | |||
NET INCOME ATTRIBUTABLE TO REXFORD INDUSTRIAL REALTY, INC. | 67,770 | 58,966 | 211,617 | 173,665 | |||
Less: preferred stock dividends | (2,314) | (2,314) | (6,943) | (6,943) | |||
Less: earnings attributable to participating securities | (395) | (314) | (1,222) | (952) | |||
NET INCOME ATTRIBUTABLE TO COMMON STOCKHOLDERS | $ 65,061 | $ 56,338 | $ 203,452 | $ 165,770 | |||
Net income attributable to common stockholders per share – basic | $ 0.30 | $ 0.27 | $ 0.94 | $ 0.83 | |||
Net income attributable to common stockholders per share – diluted | $ 0.30 | $ 0.27 | $ 0.94 | $ 0.83 | |||
Weighted-average shares of common stock outstanding – basic | 218,760 | 205,280 | 216,857 | 200,455 | |||
Weighted-average shares of common stock outstanding – diluted | 219,133 | 205,448 | 216,994 | 200,668 | |||
Rexford Industrial Realty, Inc. Same Property Portfolio Occupancy and NOI and Cash NOI (Unaudited, dollars in thousands)
| |||||
Same Property Portfolio Occupancy: | |||||
September 30, | |||||
2024 | 2023 | Change (basis | |||
Quarterly Weighted Average Occupancy:(1) | |||||
97.3 % | 97.4 % | (10) bps | |||
99.4 % | 98.5 % | 90 bps | |||
96.9 % | 95.2 % | 170 bps | |||
94.4 % | 97.8 % | (340) bps | |||
92.9 % | 98.8 % | (590) bps | |||
Same Property Portfolio Weighted Average Occupancy | 96.9 % | 97.2 % | (30) bps | ||
Ending Occupancy: | 96.7 % | 97.4 % | (70) bps | ||
(1) | Calculated by averaging the occupancy rate at the end of each month in 3Q-2024 and June 2024 (for 3Q-2024) and the end of each month in 3Q-2023 and June 2023 (for 3Q-2023). |
Same Property Portfolio NOI and Cash NOI: | |||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2024 | 2023 | $ | % | 2024 | 2023 | $ | % | ||||||||
Rental income | $ 4,942 | 2.9 % | 4.8 % | ||||||||||||
Property expenses | 41,207 | 39,620 | 1,587 | 4.0 % | 118,803 | 113,261 | 5,542 | 4.9 % | |||||||
Same Property Portfolio NOI | $ 3,355 | 2.6 % | 4.7 % | ||||||||||||
Straight line rental revenue adjustment | (5,946) | (7,720) | 1,774 | (23.0) % | (15,813) | (21,666) | 5,853 | (27.0) % | |||||||
Above/(below) market lease revenue adjustments | (4,905) | (5,977) | 1,072 | (17.9) % | (15,778) | (18,210) | 2,432 | (13.4) % | |||||||
Same Property Portfolio Cash NOI | $ 6,201 | 5.3 % | 7.7 % | ||||||||||||
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 | ||||||
2024 | 2023 | 2024 | 2023 | ||||
Net income | $ 70,722 | $ 61,790 | $ 221,016 | $ 182,270 | |||
General and administrative | 20,926 | 18,575 | 60,213 | 55,039 | |||
Depreciation and amortization | 69,241 | 60,449 | 203,415 | 178,671 | |||
Other expenses | 492 | 551 | 2,204 | 1,504 | |||
Interest expense | 27,340 | 15,949 | 70,423 | 46,830 | |||
Management and leasing services | (156) | (158) | (444) | (519) | |||
Interest income | (3,291) | (1,029) | (10,709) | (3,408) | |||
Gains on sale of real estate | (1,745) | — | (18,013) | (12,133) | |||
Net operating income (NOI) | $ 183,529 | $ 156,127 | $ 528,105 | $ 448,254 | |||
Straight line rental revenue adjustment | (11,441) | (11,792) | (28,376) | (28,073) | |||
Above/(below) market lease revenue adjustments(1) | (6,635) | (7,241) | (21,494) | (21,763) | |||
Cash NOI | $ 165,453 | $ 137,094 | $ 478,235 | $ 398,418 | |||
NOI | $ 183,529 | $ 156,127 | $ 528,105 | $ 448,254 | |||
Non-Same Property Portfolio rental income | (63,062) | (33,820) | (162,228) | (87,081) | |||
Non-Same Property Portfolio property expenses | 13,660 | 8,465 | 35,451 | 21,959 | |||
Same Property Portfolio NOI | $ 134,127 | $ 130,772 | $ 401,328 | $ 383,132 | |||
Straight line rental revenue adjustment | (5,946) | (7,720) | (15,813) | (21,666) | |||
Above/(below) market lease revenue adjustments | (4,905) | (5,977) | (15,778) | (18,210) | |||
Same Property Portfolio Cash NOI | $ 123,276 | $ 117,075 | $ 369,737 | $ 343,256 | |||
(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 | Nine Months Ended | ||||||
2024 | 2023 | 2024 | 2023 | ||||
Net income | $ 70,722 | $ 61,790 | $ 221,016 | $ 182,270 | |||
Adjustments: | |||||||
Depreciation and amortization | 69,241 | 60,449 | 203,415 | 178,671 | |||
Gains on sale of real estate | (1,745) | — | (18,013) | (12,133) | |||
Funds From Operations (FFO) | $ 138,218 | $ 122,239 | $ 406,418 | $ 348,808 | |||
Less: preferred stock dividends | (2,314) | (2,314) | (6,943) | (6,943) | |||
Less: FFO attributable to noncontrolling interests(1) | (5,389) | (4,909) | (15,987) | (14,554) | |||
Less: FFO attributable to participating securities(2) | (566) | (461) | (1,718) | (1,339) | |||
Company share of FFO | $ 129,949 | $ 114,555 | $ 381,770 | $ 325,972 | |||
Company Share of FFO per common share – basic | $ 0.59 | $ 0.56 | $ 1.76 | $ 1.63 | |||
Company Share of FFO per common share – diluted | $ 0.59 | $ 0.56 | $ 1.76 | $ 1.62 | |||
FFO | $ 138,218 | $ 122,239 | $ 406,418 | $ 348,808 | |||
Adjustments: | |||||||
Acquisition expenses | 6 | 10 | 114 | 330 | |||
Impairment of right-of-use asset | — | — | — | 188 | |||
Amortization of loss on termination of interest rate swaps | 59 | 59 | 177 | 177 | |||
Non-capitalizable demolition costs | — | 361 | 1,127 | 701 | |||
Write-offs of below-market lease intangibles related to unexercised renewal options(3) | — | — | — | (1,318) | |||
Core FFO | $ 138,283 | $ 122,669 | $ 407,836 | $ 348,886 | |||
Less: preferred stock dividends | (2,314) | (2,314) | (6,943) | (6,943) | |||
Less: Core FFO attributable to noncontrolling interest(1) | (5,391) | (4,924) | (16,035) | (14,556) | |||
Less: Core FFO attributable to participating securities(2) | (567) | (462) | (1,725) | (1,339) | |||
Company share of Core FFO | $ 130,011 | $ 114,969 | $ 383,133 | $ 326,048 | |||
Company share of Core FFO per common share – basic | $ 0.59 | $ 0.56 | $ 1.77 | $ 1.63 | |||
Company share of Core FFO per common share – diluted | $ 0.59 | $ 0.56 | $ 1.77 | $ 1.62 | |||
Weighted-average shares of common stock outstanding – basic | 218,760 | 205,280 | 216,857 | 200,455 | |||
Weighted-average shares of common stock outstanding – diluted | 219,133 | 205,448 | 216,994 | 200,668 | |||
(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. On April 10, 2024, we exercised our conversion right to convert all Series 1 CPOP units into common units of the Company's operating partnership. |
(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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