LOS ANGELES, Jan. 11, 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
in Southern California infill
markets, today announced operating results, transaction and capital
markets activity for the fourth quarter and full year 2020.
"Rexford's exceptional performance throughout 2020 demonstrates
the strength of our strategy and team, focused on creating value by
investing, improving and operating industrial property within
infill Southern California, the
world's fourth largest industrial market and highest-demand,
lowest-supply industrial property market in the nation," stated
Michael Frankel and Howard Schwimmer, Co-Chief Executive Officers of
the Company. "We are pleased to announce our team's
outstanding operating results for the fourth quarter and full year
2020, despite the circumstances surrounding the COVID-19 pandemic.
In the fourth quarter we executed over 1.8 million square feet of
new and renewal leases at strong leasing spreads representing 30%
growth, demonstrating the continued intensity of tenant demand for
our high-quality, irreplaceable industrial portfolio and our team's
entrepreneurial approach to asset management and customer service.
Our full year acquisition volume of over $1.2 billion, with $875
million acquired during the fourth quarter, is a testament
to our unparalleled sourcing model in which 75% of transactions
were executed through off-market or lightly-marketed transactions.
Our 2020 investments are expected to contribute $48 million of NOI in 2021, with this
contribution expected to grow at a compounded average rate of
approximately 8% over the next three years as we capitalize on
value-creation opportunities, below-market leases and contractual
embedded rent growth. Looking ahead, our pipeline of acquisition
opportunities remains strong with approximately $140 million of new investments under LOI or
contract and expected to close in the near-term. Our superior
internal and external growth opportunities, highly differentiated
and entrepreneurial business model and team, coupled with our
low-leverage, fortress-like balance sheet position the Company to
maximize cash flow growth and long-term shareholder
value."
Operating Results:
Fourth quarter and full year 2020 leasing activity demonstrate
strong tenant demand fundamentals within Rexford's target
Southern California infill
markets.
|
|
Q4 2020 Leasing
Activity
|
|
|
|
|
|
|
Releasing
Spreads
|
|
|
# of Leases
Executed
|
|
SF of
Leasing
|
|
GAAP
|
|
Cash
|
New
Leases
|
|
57
|
|
672,134
|
|
|
31.0%
|
|
20.5%
|
Renewal
Leases
|
|
51
|
|
1,132,687
|
|
|
29.5%
|
|
17.3%
|
Total
Leases
|
|
108
|
|
1,804,821
|
|
|
29.9%
|
|
18.1%
|
|
|
Full Year 2020
Leasing Activity
|
|
|
|
|
|
|
Releasing
Spreads
|
|
|
# of Leases
Executed
|
|
SF of
Leasing
|
|
GAAP
|
|
Cash
|
New
Leases
|
|
205
|
|
|
2,634,722
|
|
|
35.7%
|
|
22.1%
|
Renewal
Leases
|
|
234
|
|
|
3,696,142
|
|
|
30.2%
|
|
18.9%
|
Total
Leases
|
|
439
|
|
|
6,330,864
|
|
|
31.6%
|
|
19.8%
|
In the fourth quarter, the Company executed approximately
900,000 square feet of leases that were previously scheduled to
expire in 2021 at cash releasing spreads of 17.3%. As of
December 31, 2020, lease expirations
for the full year 2021 total 4.8 million rentable square feet,
representing approximately 15% of total portfolio rentable square
feet. The mark-to-market on the remaining 2021 expiring
leases is estimated to be approximately 17%. At December 31, 2020, the Company's Stabilized Same
Property Portfolio occupancy was 98.2%.
Rent Collections Update:
As of January 8, 2021, the company
has collected 97.3% of contractual fourth quarter billings,
including 96.0% of the $3.35 million
of fourth quarter Covid-19 related deferral repayment billings.
Collections of contractual billings for the second and third
quarter 2020 were 87.9% and 97.3%, respectively.
Transaction Activity:
During the fourth quarter, the Company completed 10 acquisitions
representing 17 properties and 3.4 million square feet for an
aggregate purchase price of $874.9
million. Additionally, the Company sold one property
for a sales price of $1.3
million. Fourth quarter acquisitions included two
UPREIT transactions, whereby the Company issued 2.4 million
operating partnership units ("OP Units"), representing $111.8 million of purchase price value.
During the full year of 2020, the Company completed 20
acquisitions representing 38 properties and 5.0 million square feet
for an aggregate purchase price of $1.2
billion. The estimated weighted average unlevered
stabilized yield for 2020 acquisitions is 4.4%, with ongoing
embedded cash flow growth projected into future periods.
Additionally, the Company sold four properties for an aggregate
sales price of $45.5 million.
Full year acquisition activity included a total of three UPREIT
transactions, whereby the Company issued 3.8 million OP Units,
representing $179.3 million of
purchase price value.
Subsequent to year end, the Company acquired 15010 Don Julian
Road, a 100% leased property located in the Los Angeles – San Gabriel Valley submarket,
for $22.2 million or $46 per land square foot. At lease expiration in
2022, the Company plans to redevelop the 10.97 acre site into a
218,000 square foot newly constructed Class A
warehouse/distribution facility, with an estimated unlevered
stabilized yield of approximately 5.5%. The acquisition was funded
using cash on hand.
Capital Markets Activity:
In November, the company completed its inaugural public bond
offering of $400 million 2.125%
senior notes due 2030 (the "Notes"). The Notes were priced at
99.211% of the principal amount and will mature on December 1, 2030. Proceeds of the Notes were used
to fund acquisitions, development and redevelopment activities, and
the repayment of the Company's $100
million term loan due in 2022.
In December, the Company completed a common stock offering
issuing 6,900,000 shares of its common stock, including 900,000
shares sold pursuant to the exercise in full of the underwriters'
option to purchase additional shares at a net price of $47.15 per share. The Company received proceeds
of approximately $325.3 million,
before deducting offering expenses. Proceeds of the offering are
being used to fund acquisition, development and redevelopment
activities, and for general corporate purposes.
During the fourth quarter, the Company issued an aggregate of
709,981 shares of common stock through its at-the-market equity
offering program ("ATM program") at an average price of
$50.13 per share, receiving proceeds
of approximately $35.6 million before
issuance costs. On November 9,
2020, the Company renewed its ATM program to include
$750 million of capacity with the
option to offer shares on a forward basis. As of December 31, 2020, the renewed ATM program had
approximately $720.7 million of
remaining capacity.
As of December 31, 2020, Rexford
had a cash balance of approximately $176
million and zero outstanding balance under its $500 million revolving credit facility. The
Company has no debt maturities through 2022.
Fourth Quarter Earnings Release:
The Company will release audited fourth quarter and full year
2020 financial results after the market closes on Wednesday, February 10, 2021. A conference call
will be held on Thursday, February 11,
2021, at 1:00 p.m. Eastern
Time to review the Company's fourth quarter results, discuss
recent events and conduct a question-and-answer period. The
conference call will be available on the Company's 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: 13714732
The playback can be accessed through March
11, 2021.
About Rexford Industrial:
Rexford Industrial, a real estate investment trust focused on
owning and operating industrial properties throughout Southern California infill markets, owns 249
properties with approximately 31.5 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.
Contact:
Investor Relations:
Stephen Swett
424-256-2153 ext 401
investorrelations@rexfordindustrial.com
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SOURCE Rexford Industrial Realty, Inc.