LOS ANGELES, Feb. 10, 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 financial and operating results for the
fourth quarter and full year of 2020.
Fourth Quarter 2020 Financial and Operational
Highlights:
- Net income attributable to common stockholders of $13.2 million, or $0.10 per diluted share, as compared to
$19.9 million, or $0.18 per diluted share, for the fourth quarter
of 2019.
- Company share of Core FFO of $43.1
million, an increase of 20.5% as compared to the fourth
quarter 2019.
- Company share of Core FFO per diluted share of $0.34, an increase of 6.3% as compared to the
fourth quarter 2019.
- Stabilized Same Property Portfolio GAAP NOI increased 2.5% and
Stabilized Same Property Portfolio Cash NOI increased 7.1% as
compared to the fourth quarter 2019.
- Stabilized Same Property Portfolio occupancy at quarter end of
98.2%.
- Comparable rental rates on 1.8 million rentable square feet of
new and renewal leases were 29.9% higher than prior rents on a GAAP
basis and 18.1% higher on a cash basis.
- Acquired 17 properties for an aggregate purchase price of
$874.9 million and sold one property
for a sales price of $1.3
million.
- Ended the quarter with a low-leverage balance sheet measured by
a net debt-to-enterprise value ratio of 12.9%.
Full Year 2020 Financial and Operational Highlights:
- Net income attributable to common stockholders of $61.3 million, or $0.51 per diluted share for the full year 2020,
as compared to $50.5 million, or
$0.47 per diluted share, for the full
year 2019.
- Company share of Core FFO of $160.0
million, an increase of 22.1% year-over-year.
- Company share of Core FFO per diluted share of $1.32, an increase of 7.3% as compared to the
full year 2019.
- Stabilized Same Property Portfolio GAAP NOI increased 3.7% and
Stabilized Same Property Portfolio Cash NOI increased 4.5% as
compared to the full year 2019.
- Acquired 38 properties for an aggregate purchase price of
$1.2 billion and sold four properties
for an aggregate sales price of $45.5
million.
- The Company increased its quarterly dividend by 11.6% to
$0.24 per share.
"Our outstanding fourth quarter and full year 2020 results
reflect the strength of our infill Southern California industrial markets and the
exceptional focus and dedication of Rexford's entrepreneurial team.
While 2020 brought unpredictable challenges due to the pandemic,
Rexford achieved Core FFO growth of 22% for the full year, driven
by, among other factors, resilient tenant demand enabling full year
GAAP and cash re-leasing spreads of 32% and 20%, respectively, on
6.3 million square feet of leasing activity, as well as the
completion of 20 investments for an aggregate purchase price of
$1.2 billion," stated Michael Frankel and Howard Schwimmer, Co-Chief Executive Officers of
the Company. "Our strong growth and financial results allowed us to
increase our quarterly dividend by approximately 12% while
continuing to maintain our low-leverage, investment grade balance
sheet. Looking ahead, we believe Rexford is well positioned to
create value for shareholders by capitalizing upon our significant
internal and external growth opportunities through 2021 and
beyond."
Financial Results:
The Company reported net income attributable to common
stockholders of $13.2 million, or
$0.10 per diluted share, for the
three months ended December 31, 2020, as compared to net
income attributable to common stockholders of $19.9 million, or $0.18 per diluted share, for the three months
ended December 31, 2019. Net income for the three months ended
December 31, 2020 includes a $0.1
million loss on sale of real estate, as compared to a
$10.6 million gain on sale of real
estate for the three months ended December 31, 2019.
The Company reported net income attributable to common
stockholders of $61.3 million, or
$0.51 per diluted share, for the year
ended December 31, 2020, as compared to net income
attributable to common stockholders of $50.5
million, or $0.47 per diluted
share, for the year ended December 31, 2019. Net income for
the year ended December 31, 2020 includes a $13.6 million gain on sale of real estate, as
compared to a $16.3 million gain on
sale of real estate for the year ended December 31, 2019.
The Company reported Company share of Core FFO of $43.1 million, or $0.34 per diluted share of common stock, for the
three months ended December 31, 2020, as compared to Company
share of Core FFO of $35.8 million,
or $0.32 per diluted share of common
stock, for the three months ended December 31, 2019.
Amounts are adjusted for non-core expenses of $0.4 million for the three months ended
December 31, 2020.
The Company reported Company share of Core FFO of $160.0 million, or $1.32 per diluted share of common stock, for the
year ended December 31, 2020, as compared to Company share of
Core FFO of $131.1 million, or
$1.23 per diluted share of common
stock, for the year ended December 31, 2019. Amounts are
adjusted for non-core expenses of $0.4
million for the year ended December 31, 2020, and
$0.2 million for the year ended
December 31, 2019.
For the three months ended December 31, 2020, the Company's
consolidated portfolio NOI increased 19.0% compared to the three
months ended December 31, 2019, and the Company's consolidated
portfolio Cash NOI increased 23.0% compared to the three months
ended December 31, 2019.
For the year ended December 31, 2020, the Company's
consolidated portfolio NOI increased 24.2% compared to the year
ended December 31, 2019, and the Company's consolidated
portfolio Cash NOI increased 22.8% compared to the year ended
December 31, 2019.
For the three months ended December 31, 2020, the Company's
Stabilized Same Property Portfolio NOI increased 2.5% compared to
the fourth quarter of 2019, driven by a 2.8% increase in Stabilized
Same Property Portfolio rental income and a 3.5% increase in
Stabilized Same Property Portfolio expenses. Stabilized Same
Property Portfolio Cash NOI increased 7.1% compared to the fourth
quarter of 2019.
For the year ended December 31, 2020, the Company's
Stabilized Same Property Portfolio NOI increased 3.7% compared to
the year ended December 31, 2019, driven by a 3.8% increase in
Stabilized Same Property Portfolio rental income and a 4.2%
increase in Stabilized Same Property Portfolio expenses. Stabilized
Same Property Portfolio Cash NOI increased 4.5% compared to the
year ended December 31, 2019.
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%
|
At December 31, 2020, the Company's Stabilized Same
Property Portfolio occupancy was 98.2%. At December 31,
2020, the Company's consolidated portfolio, excluding value-add
repositioning assets, was 96.7% occupied and 97.7% leased, and the
Company's consolidated portfolio, including value-add repositioning
assets, was 95.2% occupied and 96.2% leased.
Transaction Activity:
During the fourth quarter of 2020, the Company completed 10
acquisitions representing 17 properties and totaling
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. Seven of these acquisitions included low coverage
outdoor storage sites and land for redevelopment totaling 36.73
acres with improvements equating to 14% site coverage.
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 the fourth quarter of 2020, the Company acquired
three industrial properties representing 176,670 square feet of
improvements, a 2.5 acre industrial outdoor storage site, and two
redevelopment sites totaling 16.57 acres for an aggregate purchase
price of $94.8 million.
Balance Sheet:
The Company ended the fourth quarter with $676 million in liquidity, including $176 million in cash on hand and $500 million available under its unsecured
revolving credit facility. As of December 31, 2020, the
Company had $1.2 billion of
outstanding debt, with an average interest rate of 3.06% and an
average term-to-maturity of 6.6 years. The Company has no debt
maturities until 2023.
In November, the Company completed its inaugural public bond
offering of $400.0 million 2.125%
senior notes due in 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 that was due in 2022.
In conjunction with the repayment of the $100 million term loan noted above, the Company
also terminated a $100 million
notional swap that was due to mature in August 2021. The
Company will amortize the related $1.2
million termination charge through August 2021.
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 proposes.
During the fourth quarter, the Company issued an aggregate of
709,891 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.
Dividends:
On February 8, 2021, the Company's Board of Directors
declared a dividend in the amount of $0.24 per share for the first quarter of 2021,
payable in cash on April 15, 2021, to common stockholders and
common unit holders of record as of March 31, 2021.
On February 8, 2021, the Company's Board of Directors
declared a quarterly dividend of $0.367188 per share of its Series A Cumulative
Redeemable Preferred Stock, a quarterly dividend of $0.367188 per share of its Series B Cumulative
Redeemable Preferred Stock and a quarterly dividend of $0.351563 per share of its Series C Cumulative
Redeemable Preferred Stock, in each case, payable in cash on
March 31, 2021, to preferred stockholders of record as of
March 15, 2021.
COVID-19 Collections Update (As of February 8, 2021)
As of December 31, 2020, the Company had a total of 1,533
leases representing in-place annualized base rent ("ABR") of
$310.4 million. ABR is
defined/calculated as the monthly contractual base rent per the
leases, excluding any rent abatements, as of December 31,
2020, multiplied by 12. As of December 31, 2020, the Company
has executed rent relief agreements with 270 tenants, including 120
tenants receiving deferred base rent of $4.6
million or 1.5% of ABR.
The following table sets forth the following information
regarding the second, third and fourth quarters of 2020
contractual rent: (i) amount billed, (ii) percentage collected
prior to the impact of consummated rent relief agreements, (iii)
the amount of rent relief provided to tenants by the (a)
application of security deposits, (b) acceleration of future
existing contractual rent concessions and (c) deferral of
contractual base rent and (iv) percentage collected after adjusting
for rent relief provided by rent relief agreements.
|
|
|
|
|
|
Rent
Relief
|
|
|
Period
|
|
Contractual
Billings(1)
|
|
% of
Contractual
Billings
Collected(2)
|
|
Security
Deposits
|
|
Acceleration
of
Concessions
|
|
Deferral
of Base
Rent(3)
|
|
Total
|
|
% of
Contractual
Billings
Collected
after
Relief(4)
|
Total
Q2-2020
|
|
$
|
77,061
|
|
|
87.9
|
%
|
|
$
|
4,206
|
|
|
$
|
825
|
|
|
$
|
3,635
|
|
|
$
|
8,666
|
|
|
99.1
|
%
|
Total
Q3-2020
|
|
$
|
78,345
|
|
|
97.3
|
%
|
|
$
|
372
|
|
|
$
|
—
|
|
|
$
|
686
|
|
|
$
|
1,058
|
|
|
98.6
|
%
|
Total
Q4-2020
|
|
$
|
86,624
|
|
|
97.7
|
%
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
250
|
|
|
$
|
250
|
|
|
98.0
|
%
|
***Reflects
collections through February 8, 2021 for all periods noted
above***
|
|
|
(1)
|
Contractual Billings
include contractual base rent and tenant reimbursements (including
prior year recoverable expense reconciliation adjustments) charged
to in-place tenants before the impact of COVID-19 related rent
relief agreements.
|
(2)
|
Represents the cash
collection percentage of Contractual Billings.
|
(3)
|
The typical deferral
period is approximately 1.5 months with repayment generally
scheduled to begin in the third or fourth quarter of
2020.
|
(4)
|
Represents the cash
collection percentage of Contractual Billings after adjusting for
rent relief provided by executed rent relief agreements.
|
The following table provides a breakdown of third and fourth
quarter 2020 Contractual Billings between regular billings and
Covid-19 deferral billings and percentage collected through
February 8, 2021:
|
Q3-2020
|
|
Q4-2020
|
|
Contractual
Billings
|
|
% of
Contractual
Billings Collected
|
|
Contractual
Billings
|
|
% of
Contractual
Billings Collected
|
Regular
Billings
|
$
|
78,185
|
|
|
97.3
|
%
|
|
$
|
83,272
|
|
|
97.8
|
%
|
Covid-19 Deferral
Billings
|
160
|
|
|
100.0
|
%
|
|
3,352
|
|
|
96.2
|
%
|
Total
|
$
|
78,345
|
|
|
|
|
$
|
86,624
|
|
|
|
Guidance:
The Company is initiating its full year 2021 guidance as
indicated below. The Core FFO guidance refers only to the Company's
in-place portfolio as of February 10, 2021, and does not
include any assumptions for other acquisitions, dispositions or
balance sheet activities that have not closed. Please refer
to the Company's supplemental information package for a complete
list of guidance and 2021 Guidance Rollforward.
2021 Outlook
(1)
|
|
2020
Actual
|
|
2021
Guidance
|
Net Income
Attributable to Common Stockholders per diluted share
|
|
$0.51
|
|
$0.40 -
$0.43
|
Company share of Core
FFO per diluted share
|
|
$1.32
|
|
$1.40 -
$1.43
|
Stabilized Same
Property Portfolio NOI Growth - GAAP
|
|
3.7%
|
|
3.0% -
4.0%
|
Stabilized Same
Property Portfolio NOI Growth - Cash
|
|
4.5%
|
|
6.0% -
7.0%
|
Average 2021
Stabilized Same Property Portfolio Occupancy (Full Year)
|
|
97.8%
|
|
97.0% -
97.5%
|
General and
Administrative Expenses (2)
|
|
$36.8M
|
|
$44.5M -
$45.5M
|
Net Interest
Expense
|
|
$30.8M
|
|
$36.0M -
$36.5M
|
|
|
(1)
|
2021 Guidance
represents the in-place portfolio as of February 10, 2021, and does
not include any assumptions for prospective acquisitions,
dispositions or balance sheet activities that have not
closed.
|
(2)
|
2021 General and
Administrative expense guidance includes estimated non-cash equity
compensation expense of $17.1 million. Non-cash equity compensation
includes restricted stock, time-based LTIP units and performance
units that are tied to the Company's overall performance and may or
may not be realized based on actual results.
|
A number of factors could impact the Company's ability to
deliver results in line with its guidance, including, but not
limited to, the number of tenants requesting rent relief or failing
to pay rent in future periods, 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:
Details regarding these results can be found in the Company's
supplemental information package 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, February 11, 2021, at
1:00 p.m. Eastern Time to review
fourth 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: 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 254
properties with approximately 31.9 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, 2019, the
Company's Quarterly Report on Form 10-Q for the quarters ended
March 31, 2020, June 30, 2020, and September 30, 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 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.
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 swap 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.
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
|
$
|
0.40
|
|
|
$
|
0.43
|
|
Company share of
depreciation and amortization
|
1.00
|
|
|
1.00
|
|
Company share of
Core FFO
|
$
|
1.40
|
|
|
$
|
1.43
|
|
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 Stabilized Same Property Portfolio. A
calculation of NOI for our Stabilized Same Property Portfolio, as
well as a reconciliation of net income to NOI for our Stabilized
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 Stabilized Same Property Portfolio. A
calculation of Cash NOI for our Stabilized Same Property Portfolio,
as well as a reconciliation of net income to Cash NOI for our
Stabilized Same Property Portfolio, is set forth below.
Stabilized Same Property Portfolio:
Our 2020 Stabilized 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,
2019 through December 31, 2020, and that were
stabilized as of January 1,
2019. Therefore, our Stabilized Same Property Portfolio
excludes any properties that were acquired or sold during the
period from January 1, 2019 through
December 31, 2020, and properties acquired prior to
January 1, 2019, that were classified
as current or future repositioning, redevelopment or lease-up
during 2019 or 2020, which we believe significantly affected the
properties' results during the comparative periods. As of
December 31, 2020, our 2020 Stabilized Same Property Portfolio
consists of 159 properties aggregating 19,688,025 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 considered complete once the investment is fully
or nearly fully deployed and the property is marketable for
leasing. We consider a repositioning property to be stabilized at
the earlier of the following: (i) upon reaching 90% occupancy or
(ii) one year from the date of completion of repositioning
construction work.
Net Debt to Enterprise Value: At December 31,
2020, we had consolidated indebtedness of $1.2 billion, reflecting a net debt to enterprise
value of approximately 12.9%. Our enterprise value is defined as
the sum of the liquidation preference of our outstanding preferred
stock and preferred units plus the market value of our common stock
excluding shares of nonvested restricted stock, plus the aggregate
value of common units not owned by us, plus the value of our net
debt. Our net debt is defined as our consolidated indebtedness
less cash and cash equivalents.
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)
|
|
|
December 31,
2020
|
|
December 31,
2019
|
|
(unaudited)
|
|
|
ASSETS
|
|
|
|
Land
|
$
|
2,636,816
|
|
|
$
|
1,927,098
|
|
Buildings and
improvements
|
2,201,187
|
|
|
1,680,178
|
|
Tenant
improvements
|
84,462
|
|
|
72,179
|
|
Furniture, fixtures,
and equipment
|
132
|
|
|
141
|
|
Construction in
progress
|
25,358
|
|
|
18,794
|
|
Total real estate held
for investment
|
4,947,955
|
|
|
3,698,390
|
|
Accumulated
depreciation
|
(375,423)
|
|
|
(296,777)
|
|
Investments in real
estate, net
|
4,572,532
|
|
|
3,401,613
|
|
Cash and cash
equivalents
|
176,293
|
|
|
78,857
|
|
Restricted
cash
|
1,230
|
|
|
—
|
|
Rents and other
receivables, net
|
10,208
|
|
|
5,889
|
|
Deferred rent
receivable, net
|
40,893
|
|
|
29,671
|
|
Deferred leasing
costs, net
|
23,148
|
|
|
18,688
|
|
Deferred loan costs,
net
|
2,240
|
|
|
695
|
|
Acquired lease
intangible assets, net
|
92,172
|
|
|
73,090
|
|
Acquired
indefinite-lived intangible
|
5,156
|
|
|
5,156
|
|
Interest rate swap
asset
|
—
|
|
|
766
|
|
Other
assets
|
14,390
|
|
|
9,671
|
|
Acquisition related
deposits
|
4,067
|
|
|
14,526
|
|
Assets associated with
real estate held for sale, net
|
8,845
|
|
|
—
|
|
Total
Assets
|
$
|
4,951,174
|
|
|
$
|
3,638,622
|
|
LIABILITIES &
EQUITY
|
|
|
|
Liabilities
|
|
|
|
Notes
payable
|
$
|
1,216,160
|
|
|
$
|
857,842
|
|
Interest rate swap
liability
|
17,580
|
|
|
8,488
|
|
Accounts payable,
accrued expenses and other liabilities
|
45,384
|
|
|
31,112
|
|
Dividends
payable
|
29,747
|
|
|
21,624
|
|
Acquired lease
intangible liabilities, net
|
67,256
|
|
|
59,340
|
|
Tenant security
deposits
|
31,602
|
|
|
28,779
|
|
Prepaid
rents
|
12,660
|
|
|
8,988
|
|
Liabilities associated
with real estate held for sale
|
193
|
|
|
—
|
|
Total
Liabilities
|
1,420,582
|
|
|
1,016,173
|
|
Equity
|
|
|
|
Rexford Industrial
Realty, Inc. stockholders' equity
|
|
|
|
Preferred stock, $0.01
par value per share, 10,050,000 shares authorized, at December 31,
2020 and December 31, 2019
|
|
|
|
5.875% series A
cumulative redeemable preferred stock, 3,600,000 shares outstanding
at December 31, 2020 and December 31, 2019 ($90,000 liquidation
preference)
|
86,651
|
|
|
86,651
|
|
5.875% series B
cumulative redeemable preferred stock, 3,000,000 shares outstanding
at December 31, 2020 and December 31, 2019 ($75,000 liquidation
preference)
|
72,443
|
|
|
72,443
|
|
5.625% series C
cumulative redeemable preferred stock, 3,450,000 shares outstanding
at December 31, 2020 and December 31, 2019 ($86,250 liquidation
preference)
|
83,233
|
|
|
83,233
|
|
Common Stock, $0.01
par value per share, 489,950,000 authorized and 131,426,038 and
113,793,300 shares outstanding at December 31, 2020 and December
31, 2019, respectively
|
1,313
|
|
|
1,136
|
|
Additional paid in
capital
|
3,182,599
|
|
|
2,439,007
|
|
Cumulative
distributions in excess of earnings
|
(163,389)
|
|
|
(118,751)
|
|
Accumulated other
comprehensive income
|
(17,709)
|
|
|
(7,542)
|
|
Total stockholders'
equity
|
3,245,141
|
|
|
2,556,177
|
|
Noncontrolling
interests
|
285,451
|
|
|
66,272
|
|
Total
Equity
|
3,530,592
|
|
|
2,622,449
|
|
Total Liabilities
and Equity
|
$
|
4,951,174
|
|
|
$
|
3,638,622
|
|
Rexford Industrial
Realty, Inc.
|
Consolidated
Statements of Operations
|
(Unaudited and in
thousands, except per share data)
|
|
|
Three Months Ended
December 31,
|
|
Year Ended
December 31,
|
|
2020
|
|
2019
|
|
2020
|
|
2019
|
REVENUES
|
|
|
|
|
|
|
|
Rental
income
|
$
|
88,495
|
|
|
$
|
74,015
|
|
|
$
|
329,377
|
|
|
$
|
264,252
|
|
Management, leasing
and development services
|
95
|
|
|
105
|
|
|
420
|
|
|
406
|
|
Interest
income
|
59
|
|
|
279
|
|
|
338
|
|
|
2,555
|
|
TOTAL
REVENUES
|
88,649
|
|
|
74,399
|
|
|
330,135
|
|
|
267,213
|
|
OPERATING
EXPENSES
|
|
|
|
|
|
|
|
Property
expenses
|
22,034
|
|
|
18,156
|
|
|
79,716
|
|
|
63,272
|
|
General and
administrative
|
9,042
|
|
|
8,215
|
|
|
36,795
|
|
|
30,300
|
|
Depreciation and
amortization
|
30,554
|
|
|
26,877
|
|
|
115,269
|
|
|
98,891
|
|
TOTAL OPERATING
EXPENSES
|
61,630
|
|
|
53,248
|
|
|
231,780
|
|
|
192,463
|
|
OTHER
EXPENSES
|
|
|
|
|
|
|
|
Acquisition
expenses
|
35
|
|
|
(3)
|
|
|
124
|
|
|
171
|
|
Interest
expense
|
8,673
|
|
|
7,364
|
|
|
30,849
|
|
|
26,875
|
|
TOTAL
EXPENSES
|
70,338
|
|
|
60,609
|
|
|
262,753
|
|
|
219,509
|
|
Loss on extinguishment
of debt
|
(104)
|
|
|
—
|
|
|
(104)
|
|
|
—
|
|
(Loss) gain on sale of
real estate
|
(52)
|
|
|
10,592
|
|
|
13,617
|
|
|
16,297
|
|
NET
INCOME
|
18,155
|
|
|
24,382
|
|
|
80,895
|
|
|
64,001
|
|
Less: net income
attributable to noncontrolling interest
|
(1,160)
|
|
|
(734)
|
|
|
(4,492)
|
|
|
(2,022)
|
|
NET INCOME
ATTRIBUTABLE TO REXFORD INDUSTRIAL REALTY, INC.
|
16,995
|
|
|
23,648
|
|
|
76,403
|
|
|
61,979
|
|
Less: preferred stock
dividends
|
(3,636)
|
|
|
(3,636)
|
|
|
(14,545)
|
|
|
(11,055)
|
|
Less: earnings
attributable to participating securities
|
(120)
|
|
|
(108)
|
|
|
(509)
|
|
|
(447)
|
|
NET INCOME
ATTRIBUTABLE TO COMMON STOCKHOLDERS
|
$
|
13,239
|
|
|
$
|
19,904
|
|
|
$
|
61,349
|
|
|
$
|
50,477
|
|
Net income
attributable to common stockholders per share
– basic
|
$
|
0.11
|
|
|
$
|
0.18
|
|
|
$
|
0.51
|
|
|
$
|
0.47
|
|
Net income
attributable to common stockholders per share
– diluted
|
$
|
0.10
|
|
|
$
|
0.18
|
|
|
$
|
0.51
|
|
|
$
|
0.47
|
|
Weighted-average
shares of common stock outstanding – basic
|
125,995
|
|
|
111,612
|
|
|
120,874
|
|
|
106,407
|
|
Weighted-average
shares of common stock outstanding – diluted
|
126,401
|
|
|
112,097
|
|
|
121,178
|
|
|
106,799
|
|
Rexford Industrial
Realty, Inc.
|
Stabilized Same
Property Portfolio Occupancy and NOI and Cash NOI
|
(Unaudited, dollars
in thousands)
|
|
Stabilized Same
Property Portfolio Occupancy:
|
|
December
31,
|
|
|
|
2020
|
|
2019
|
|
Change (basis
points)
|
Occupancy:
|
|
|
|
|
|
Los Angeles
County
|
98.6%
|
|
98.6%
|
|
0 bps
|
Orange
County
|
98.9%
|
|
99.1%
|
|
(20) bps
|
San Bernardino
County
|
98.8%
|
|
97.4%
|
|
140 bps
|
San Diego
County
|
97.6%
|
|
97.1%
|
|
50 bps
|
Ventura
County
|
92.6%
|
|
99.1%
|
|
(650) bps
|
Total/Weighted
Average
|
98.2%
|
|
98.3%
|
|
(10) bps
|
Stabilized Same
Property Portfolio NOI and Cash NOI:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
December 31,
|
|
Year Ended
December 31,
|
|
2020
|
|
2019
|
|
$
Change
|
|
%
Change
|
|
2020
|
|
2019
|
|
$
Change
|
|
%
Change
|
Rental
income
|
$
|
58,763
|
|
|
$
|
57,185
|
|
|
$
|
1,578
|
|
|
2.8%
|
|
$
|
232,477
|
|
|
$
|
223,985
|
|
|
$
|
8,492
|
|
|
3.8%
|
Property
expenses
|
14,232
|
|
|
13,757
|
|
|
475
|
|
|
3.5%
|
|
54,434
|
|
|
52,228
|
|
|
2,206
|
|
|
4.2%
|
Stabilized Same
Property Portfolio NOI
|
$
|
44,531
|
|
|
$
|
43,428
|
|
|
$
|
1,103
|
|
|
2.5%
|
|
$
|
178,043
|
|
|
$
|
171,757
|
|
|
$
|
6,286
|
|
|
3.7%
|
Straight line rental
revenue adjustment
|
530
|
|
|
(885)
|
|
|
1,415
|
|
|
(159.9)%
|
|
(4,629)
|
|
|
(4,268)
|
|
|
(361)
|
|
|
8.5%
|
Amortization of
above/below market lease intangibles
|
(1,148)
|
|
|
(1,537)
|
|
|
389
|
|
|
(25.3)%
|
|
(5,411)
|
|
|
(6,790)
|
|
|
1,379
|
|
|
(20.3)%
|
Stabilized Same
Property Portfolio Cash NOI
|
$
|
43,913
|
|
|
$
|
41,006
|
|
|
$
|
2,907
|
|
|
7.1%
|
|
$
|
168,003
|
|
|
$
|
160,699
|
|
|
$
|
7,304
|
|
|
4.5%
|
Rexford Industrial
Realty, Inc.
|
Reconciliation of Net
Income to NOI, Stabilized Same Property Portfolio NOI
and
|
Stabilized Same
Property Portfolio Cash NOI
|
(Unaudited and in
thousands)
|
|
|
Three Months
Ended
December 31,
|
|
Year Ended
December 31,
|
|
2020
|
|
2019
|
|
2020
|
|
2019
|
Net income
|
$
|
18,155
|
|
|
$
|
24,382
|
|
|
$
|
80,895
|
|
|
$
|
64,001
|
|
Add:
|
|
|
|
|
|
|
|
General and
administrative
|
9,042
|
|
|
8,215
|
|
|
36,795
|
|
|
30,300
|
|
Depreciation and
amortization
|
30,554
|
|
|
26,877
|
|
|
115,269
|
|
|
98,891
|
|
Acquisition
expenses
|
35
|
|
|
(3)
|
|
|
124
|
|
|
171
|
|
Interest
expense
|
8,673
|
|
|
7,364
|
|
|
30,849
|
|
|
26,875
|
|
Deduct:
|
|
|
|
|
|
|
|
Management, leasing
and development services
|
95
|
|
|
105
|
|
|
420
|
|
|
406
|
|
Interest
income
|
59
|
|
|
279
|
|
|
338
|
|
|
2,555
|
|
Loss on extinguishment
of debt
|
(104)
|
|
|
—
|
|
|
(104)
|
|
|
—
|
|
(Loss) gain on sale of
real estate
|
(52)
|
|
|
10,592
|
|
|
13,617
|
|
|
16,297
|
|
Net operating income
(NOI)
|
$
|
66,461
|
|
|
$
|
55,859
|
|
|
$
|
249,661
|
|
|
$
|
200,980
|
|
Non-Stabilized Same
Property Portfolio rental income
|
(29,732)
|
|
|
(16,830)
|
|
|
(96,900)
|
|
|
(40,267)
|
|
Non-Stabilized Same
Property Portfolio property expenses
|
7,802
|
|
|
4,399
|
|
|
25,282
|
|
|
11,044
|
|
Stabilized Same
Property Portfolio NOI
|
$
|
44,531
|
|
|
$
|
43,428
|
|
|
$
|
178,043
|
|
|
$
|
171,757
|
|
Straight line rental
revenue adjustment
|
530
|
|
|
(885)
|
|
|
(4,629)
|
|
|
(4,268)
|
|
Amortization of
above/below market lease intangibles
|
(1,148)
|
|
|
(1,537)
|
|
|
(5,411)
|
|
|
(6,790)
|
|
Stabilized Same
Property Portfolio Cash NOI
|
$
|
43,913
|
|
|
$
|
41,006
|
|
|
$
|
168,003
|
|
|
$
|
160,699
|
|
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
December 31,
|
|
Year Ended
December 31,
|
|
2020
|
|
2019
|
|
2020
|
|
2019
|
Net
income
|
$
|
18,155
|
|
|
$
|
24,382
|
|
|
$
|
80,895
|
|
|
$
|
64,001
|
|
Add:
|
|
|
|
|
|
|
|
Depreciation and
amortization
|
30,554
|
|
|
26,877
|
|
|
115,269
|
|
|
98,891
|
|
Deduct:
|
|
|
|
|
|
|
|
(Loss) gain on sale of
real estate
|
(52)
|
|
|
10,592
|
|
|
13,617
|
|
|
16,297
|
|
Funds From
Operations (FFO)
|
$
|
48,761
|
|
|
$
|
40,667
|
|
|
$
|
182,547
|
|
|
$
|
146,595
|
|
Less: preferred stock
dividends
|
(3,636)
|
|
|
(3,636)
|
|
|
(14,545)
|
|
|
(11,055)
|
|
Less: FFO attributable
to noncontrolling interest(1)
|
(2,182)
|
|
|
(1,087)
|
|
|
(7,654)
|
|
|
(3,897)
|
|
Less: FFO attributable
to participating securities(2)
|
(188)
|
|
|
(188)
|
|
|
(772)
|
|
|
(733)
|
|
Company share of
FFO
|
$
|
42,755
|
|
|
$
|
35,756
|
|
|
$
|
159,576
|
|
|
$
|
130,910
|
|
|
|
|
|
|
|
|
|
Company Share of FFO
per common share – basic
|
$
|
0.34
|
|
|
$
|
0.32
|
|
|
$
|
1.32
|
|
|
$
|
1.23
|
|
Company Share of FFO
per common share – diluted
|
$
|
0.34
|
|
|
$
|
0.32
|
|
|
$
|
1.32
|
|
|
$
|
1.23
|
|
|
|
|
|
|
|
|
|
FFO
|
$
|
48,761
|
|
|
$
|
40,667
|
|
|
$
|
182,547
|
|
|
$
|
146,595
|
|
Adjust:
|
|
|
|
|
|
|
|
Acquisition
expenses
|
35
|
|
|
(3)
|
|
|
124
|
|
|
171
|
|
Loss on extinguishment
of debt
|
104
|
|
|
—
|
|
|
104
|
|
|
—
|
|
Amortization of loss
on termination of interest rate swap
|
218
|
|
|
—
|
|
|
218
|
|
|
—
|
|
Core
FFO
|
$
|
49,118
|
|
|
$
|
40,664
|
|
|
$
|
182,993
|
|
|
$
|
146,766
|
|
Less: preferred stock
dividends
|
(3,636)
|
|
|
(3,636)
|
|
|
(14,545)
|
|
|
(11,055)
|
|
Less: Core FFO
attributable to noncontrolling interest(1)
|
(2,193)
|
|
|
(1,086)
|
|
|
(7,667)
|
|
|
(3,899)
|
|
Less: Core FFO
attributable to participating securities(2)
|
(190)
|
|
|
(188)
|
|
|
(774)
|
|
|
(733)
|
|
Company share of
Core FFO
|
$
|
43,099
|
|
|
$
|
35,754
|
|
|
$
|
160,007
|
|
|
$
|
131,079
|
|
|
|
|
|
|
|
|
|
Company share of Core
FFO per common share – basic
|
$
|
0.34
|
|
|
$
|
0.32
|
|
|
$
|
1.32
|
|
|
$
|
1.23
|
|
Company share of Core
FFO per common share – diluted
|
$
|
0.34
|
|
|
$
|
0.32
|
|
|
$
|
1.32
|
|
|
$
|
1.23
|
|
|
|
|
|
|
|
|
|
Weighted-average
shares of common stock outstanding – basic
|
125,995
|
|
|
111,612
|
|
|
120,874
|
|
|
106,407
|
|
Weighted-average
shares of common stock outstanding – diluted
|
126,401
|
|
|
112,097
|
|
|
121,178
|
|
|
106,799
|
|
|
|
(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:http://www.prnewswire.com/news-releases/rexford-industrial-announces-fourth-quarter-and-full-year-2020-financial-results-301226309.html
SOURCE Rexford Industrial Realty, Inc.