LOS ANGELES, July 21, 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 second quarter of 2021.
Second Quarter 2021 Financial and Operational
Highlights:
- Net income attributable to common stockholders of $20.6 million, or $0.15 per diluted share, as compared to
$11.4 million, or $0.10 per diluted share, for the second quarter
of 2020.
- Company share of Core FFO of $52.8
million, an increase of 35.9% as compared to the second
quarter 2020.
- Company share of Core FFO per diluted share of $0.39, an increase of 21.9% as compared to the
second quarter 2020.
- Consolidated Portfolio Net Operating Income (NOI) of
$79.7 million, an increase of 30.9%
as compared to the second quarter of 2020.
- Stabilized Same Property Portfolio GAAP NOI increased 10.1% and
Stabilized Same Property Portfolio Cash NOI increased 22.0% as
compared to the second quarter 2020.
- Average Stabilized Same Property Portfolio occupancy was
98.5%.
- Comparable rental rates on 2.2 million rentable square feet of
new and renewal leases were 33.9% higher than prior rents on a GAAP
basis and 21.3% higher on a cash basis.
- Acquired ten properties for an aggregate purchase price of
$256.9 million and sold one
property for a sales price of $8.2 million.
- Completed an equity offering in which 9,000,000 shares of
common stock were sold through forward sale agreements at
$55.60 per share.
- Ended the quarter with a low-leverage balance sheet measured by
a net debt-to-enterprise value ratio of 12.0%.
"Rexford's second quarter results continued at exceptional
levels, producing Core FFO growth of 36% and 22% on a per share
basis, fueled by consolidated NOI growth of 31% compared to the
prior year quarter. Our team executed 2.2 million square feet
of leasing activity at extraordinary GAAP and cash releasing
spreads of 34% and 21%, respectively," stated Michael Frankel and Howard Schwimmer, Co-Chief Executive Officers of
the Company. "As we scale our Rexford operating platform and deepen
our market penetration, we are harvesting the benefits of our
value-add approach to consolidating a high-quality, irreplaceable
industrial property portfolio within infill Southern California, the nation's strongest
and most supply-constrained industrial market. With
$470 million of investments completed
year-to-date, plus over $650 million
of new acquisitions under contract or accepted offer, the Company
is well-positioned with substantial liquidity and a best-in-class,
low leverage balance sheet to generate internally- and
externally-driven cash flow growth and shareholder value."
Financial Results:
The Company reported net income attributable to common
stockholders of $20.6 million, or
$0.15 per diluted share, for the
three months ended June 30, 2021, as compared to net income
attributable to common stockholders of $11.4
million, or $0.10 per diluted
share, for the three months ended June 30, 2020. Net income
for the three months ended June 30, 2021 includes $2.8 million of gains on sale of real estate.
The Company reported net income attributable to common
stockholders of $45.4 million, or
$0.34 per diluted share, for the six
months ended June 30, 2021, as compared to net income
attributable to common stockholders of $22.2
million, or $0.19 per diluted
share, for the six months ended June 30, 2020. Net income for
the six months ended June 30, 2021 includes $13.6 million of gains on sale of real
estate.
For the three months ended June 30, 2021, Company share of
Core FFO increased 35.9% year-over-year to $52.8 million, or $0.39 per diluted share of common stock, equal to
a 21.9% increase, as compared to Company share of Core FFO of
$38.8 million, or $0.32 per diluted share of common stock, for the
three months ended June 30, 2020. Amounts are adjusted
for non-core expenses of $0.4 million
for the three months ended June 30, 2021.
For the six months ended June 30, 2021, Company share of
Core FFO increased 32.5% year-over-year to $101.2 million, or $0.76 per diluted share of common stock, equal to
a 16.9% increase, as compared to Company share of Core FFO of
$76.4 million, or $0.65 per diluted share of common stock, for the
six months ended June 30, 2020. Amounts are adjusted for
non-core expenses of $0.9 million for
the six months ended June 30, 2021.
For the three months ended June 30, 2021, the Company's
consolidated portfolio NOI increased 30.9% compared to the three
months ended June 30, 2020, and the Company's consolidated
portfolio Cash NOI increased 37.4% compared to the three months
ended June 30, 2020.
For the six months ended June 30, 2021, the Company's
consolidated portfolio NOI increased 29.5% compared to the six
months ended June 30, 2020, and the Company's consolidated
portfolio Cash NOI increased 31.0% compared to the six months ended
June 30, 2020.
For the three months ended June 30, 2021, the Company's
Stabilized Same Property Portfolio NOI increased 10.1% compared to
the three months ended June 30, 2020, driven by a 9.2%
increase in Stabilized Same Property Portfolio rental income and a
6.2% increase in Stabilized Same Property Portfolio expenses.
Stabilized Same Property Portfolio Cash NOI increased 22.0%
compared to the three months ended June 30, 2020. When
adjusted for the impact of short-term rent deferral agreements
executed in response to the COVID-19 pandemic, Stabilized
Same Property Portfolio Cash NOI increased 11.3% compared to the
three months ended June 30, 2020.
For the six months ended June 30, 2021, the Company's
Stabilized Same Property Portfolio NOI increased 8.5% compared to
the six months ended June 30, 2020, driven by a 7.6% increase
in Stabilized Same Property Portfolio rental income and a 4.8%
increase in Stabilized Same Property Portfolio expenses. Stabilized
Same Property Portfolio Cash NOI increased 14.8% compared to the
six months ended June 30, 2020. When adjusted for the impact
of short-term rent deferral agreements executed in response to the
COVID-19 pandemic, Stabilized Same Property Portfolio Cash NOI
increased 9.4% compared to the six months ended June 30,
2020.
Operating Results:
Second quarter 2021 leasing activity demonstrates strong tenant
demand fundamentals within Rexford's target Southern California infill markets:
|
|
Q2-2021 Leasing
Activity
|
|
|
|
|
|
|
Releasing
Spreads
|
|
|
# of Leases
Executed
|
|
SF of
Leasing
|
|
GAAP
|
|
Cash
|
New
Leases
|
|
71
|
|
1,207,516
|
|
38.9%
|
|
25.3%
|
Renewal
Leases
|
|
68
|
|
981,781
|
|
30.7%
|
|
18.8%
|
Total
Leases
|
|
139
|
|
2,189,297
|
|
33.9%
|
|
21.3%
|
At June 30, 2021, the Company's Stabilized Same Property
Portfolio occupancy was 98.4%. Average Stabilized Same
Property Portfolio occupancy for the second quarter 2021 was
98.5%. At June 30, 2021, the Company's consolidated
portfolio, excluding value-add repositioning assets, was 98.2%
occupied and 98.7% leased, and the Company's consolidated
portfolio, including value-add repositioning assets, was 95.4%
occupied and 96.6% leased.
Transaction Activity:
During the second quarter of 2021, the Company acquired ten
properties, including 805,415 square feet of buildings and 15.5
acres of low-coverage outdoor storage sites and land for future
redevelopment for an aggregate purchase price of $256.9 million. These investments are
projected to generate an aggregate stabilized unlevered yield on
total investment of 5.2%. Additionally, the Company sold one
property for a sales price of $8.2
million.
Subsequent to the second quarter of 2021, the Company acquired
two properties, including a 150,144 square foot building and a 5.5
acre industrial outdoor storage site for an aggregate purchase
price of $49.3 million. The
combined aggregate stabilized unlevered yield on total investment
is projected to be 5.1%.
Balance Sheet:
The Company ended the second quarter with $1.2 billion in liquidity, including $64.2 million in cash on hand, $700 million available under its unsecured
revolving credit facility and an estimated $395.5 million of forward equity proceeds to be
settled by the fourth quarter 2022. As of June 30, 2021,
the Company had $1.2 billion of
outstanding debt, with an average interest rate of 2.99% and an
average term-to-maturity of 6.2 years. The Company has no debt
maturities until 2023.
During the second quarter, the Company executed its ATM program,
selling 282,270 shares of common stock subject to a forward sale
agreement at an average price of $55.36 per share for a gross value of
$15.6 million. In June 2021, the Company fully settled all
outstanding forward equity sale agreements related to the ATM
program, including those executed in prior quarters, by issuing
1,797,787 shares of common stock for net proceeds of $91.2 million.
As of June 30, 2021, the ATM program had approximately
$508.1 million of remaining
capacity.
In May 2021, the Company completed
a public offering of 9,000,000 shares of common stock subject to
forward equity sales agreements at an initial offering price of
$55.60 per share, for a gross
offering value of $500.4
million. In June 2021,
the Company partially settled the forward equity sales agreements
by issuing 1,809,526 shares of common stock for net proceeds of
$100.0 million. As of
June 30, 2021, the Company had $395.5
million of forward net proceeds remaining for settlement to
occur by November 23, 2022.
In June 2021, the Company
exercised the accordion option on its existing credit facility to
increase the borrowing capacity of its senior unsecured revolving
credit facility by $200.0 million to
$700.0 million from $500.0 million.
In June 2021, the Company amended
its $150 million unsecured term loan
facility maturing May 22, 2025, to
reduce the applicable margin by 60 basis points so that current
pricing is LIBOR plus a spread of 95 basis points, subject to the
Company's credit ratings.
Subsequent to quarter-end, on July 12,
2021, the Company announced that it will redeem all
3,600,000 shares of its 5.875% Series A Cumulative Redeemable
Preferred Stock ("Series A Preferred Stock") on August 16, 2021, for a redemption price of
$25.00 per share, plus all accrued
and unpaid dividends through August 15,
2021, in an amount equal to $0.183594 per share, for a total payment of
$25.183594 per share.
Dividends:
On July 19, 2021, the Company's Board of Directors declared
a dividend in the amount of $0.24 per
share for the third quarter of 2021, payable in cash on
October 15, 2021, to common stockholders and common unit
holders of record as of September 30, 2021.
On July 19, 2021, the Company's Board of Directors declared
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 September 30, 2021, to preferred
stockholders of record as of September 15, 2021. As
noted above with respect to the Series A Preferred Stock, all
accrued and unpaid dividends through August
15, 2021, in an amount equal to $0.183594 per share, will be paid on the
August 16, 2021 redemption date.
COVID-19 Collections Update
Through July 19, 2021, the Company collected 98.6% of
contractual second quarter billings, which includes contractual
base rent (including COVID-19 deferral billings) and tenant
reimbursements charged to tenants.
As of June 30, 2021, the Company had 1,532 leases
representing in-place annualized base rent ("ABR") of $340.8 million. As of June 30, 2021,
the Company had outstanding COVID-19 related deferrals of
$554,000 or 0.2% of ABR, of which
$413,000 will be charged to tenants
through December 2021.
Guidance
The Company is revising its full year 2021 guidance as
follows:
2021 Outlook
(1)
|
|
Q2'21 UPDATED
GUIDANCE
|
|
Q1'21
GUIDANCE
|
Net Income
Attributable to Common Stockholders per diluted share
|
|
$0.53 -
$0.56
|
|
$0.48 -
$0.51
|
Company share of Core
FFO per diluted share
|
|
$1.48 -
$1.51
|
|
$1.41 -
$1.44
|
Stabilized Same
Property Portfolio NOI Growth - GAAP
|
|
5.75% -
6.75%
|
|
3.75% -
4.75%
|
Stabilized Same
Property Portfolio NOI Growth - Cash
|
|
9.00% -
10.00%
|
|
6.75% -
7.75%
|
Average 2021
Stabilized Same Property Portfolio Occupancy (Full Year)
|
|
97.75% -
98.25%
|
|
97.25% -
97.75%
|
General and
Administrative Expenses (2)
|
|
$45.0M -
$46.0M
|
|
$44.5M -
$45.5M
|
Net Interest
Expense
|
|
$36.0M -
$36.5M
|
|
$36.0M -
$36.5M
|
|
|
(1)
|
2021 Guidance
represents the in-place portfolio as of July 21, 2021, and
does not include any assumptions for prospective acquisitions,
dispositions or balance sheet activities that have not closed,
other than the planned redemption of the Company's Series A
Preferred Stock on August 16, 2021, which was announced on July 12,
2021.
|
(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.
|
The Core FFO guidance refers only to the Company's in-place
portfolio as of July 21, 2021, and does not include any
assumptions for other acquisitions, dispositions or balance sheet
activities that have not closed. A number of factors could
impact the Company's ability to deliver results in line with its
guidance, including, but not limited to, the duration and severity
of the impact of the COVID-19 pandemic, interest rates, the
economy, the supply and demand of industrial real estate, the
availability and terms of financing to the Company or to potential
acquirers of real estate and the timing and yields for divestment
and investment. There can be no assurance that the Company can
achieve such results.
Supplemental Information:
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, July 22, 2021, at
1:00 p.m. Eastern Time to review
second 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: 13720736
The playback can be accessed through August
22, 2021.
About Rexford Industrial:
Rexford Industrial, a real estate investment trust focused on
owning and operating industrial properties throughout Southern California infill markets, owns 268
properties with approximately 33.1 million rentable square feet and
manages an additional 20 properties with approximately 1.0 million
rentable square feet.
For additional information, visit www.rexfordindustrial.com.
Forward Looking Statements:
This press release may contain forward-looking statements within
the meaning of the federal securities laws, which are based on
current expectations, forecasts and assumptions that involve risks
and uncertainties that could cause actual outcomes and results to
differ materially. Forward-looking statements relate to
expectations, beliefs, projections, future plans and strategies,
anticipated events or trends and similar expressions concerning
matters that are not historical facts. In some cases, you can
identify forward-looking statements by the use of forward-looking
terminology such as "may," "will," "should," "expects," "intends,"
"plans," "anticipates," "believes," "estimates," "predicts," or
"potential" or the negative of these words and phrases or similar
words or phrases which are predictions of or indicate future events
or trends and which do not relate solely to historical matters.
While forward-looking statements reflect the Company's good faith
beliefs, assumptions and expectations, they are not guarantees of
future performance. For a further discussion of these and other
factors that could cause the Company's future results to differ
materially from any forward-looking statements, see the reports and
other filings by the Company with the U.S. Securities and Exchange
Commission, including the Company's Annual Report on Form 10-K for
the year ended December 31, 2020, and
other filings with the Securities and Exchange Commission. The
Company disclaims any obligation to publicly update or revise any
forward-looking statement to reflect changes in underlying
assumptions or factors, of new information, data or methods, future
events or other changes.
Definitions / Discussion of Non-GAAP Financial
Measures:
Funds from Operations (FFO): We calculate FFO in
accordance with the standards established by the National
Association of Real Estate Investment Trusts ("NAREIT"). FFO
represents net income (loss) (computed in accordance with GAAP),
excluding gains (or losses) from sales of depreciable operating
property, gains (or losses) from sales of assets incidental to our
business, impairment losses of depreciable operating property or
assets incidental to our business, real estate related depreciation
and amortization (excluding amortization of deferred financing
costs and amortization of above/below-market lease intangibles) and
after adjustments for unconsolidated joint ventures. Management
uses FFO as a supplemental performance measure because, in
excluding real estate related depreciation and amortization, gains
and losses from property dispositions, other than temporary
impairments of unconsolidated real estate entities, and impairment
on our investment in real estate, it provides a performance measure
that, when compared year over year, captures trends in occupancy
rates, rental rates and operating costs. We also believe that, as a
widely recognized measure of performance used by other REITs, FFO
may be used by investors as a basis to compare our operating
performance with that of other REITs. However, because FFO excludes
depreciation and amortization and captures neither the changes in
the value of our properties that result from use or market
conditions nor the level of capital expenditures and leasing
commissions necessary to maintain the operating performance of our
properties, all of which have real economic effects and could
materially impact our results from operations, the utility of FFO
as a measure of our performance is limited. Other equity REITs may
not calculate or interpret FFO in accordance with the NAREIT
definition as we do, and, accordingly, our FFO may not be
comparable to such other REITs' FFO. FFO should not be used as a
measure of our liquidity and is not indicative of funds available
for our cash needs, including our ability to pay dividends.
FFO should be considered only as a supplement to net income
computed in accordance with GAAP as a measure of our performance. A
reconciliation of net income, the nearest GAAP equivalent, to FFO
is set forth below.
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, (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.
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
|
$
|
0.53
|
|
|
$
|
0.56
|
|
Company share of
depreciation and amortization
|
1.03
|
|
|
1.03
|
|
Company share of
gains on sale of real estate
|
(0.10)
|
|
|
(0.10)
|
|
Company share of
FFO
|
$
|
1.46
|
|
|
$
|
1.49
|
|
Add: Series A
Preferred Stock redemption charge(1)
|
0.02
|
|
|
0.02
|
|
Company share of
Core FFO
|
$
|
1.48
|
|
|
$
|
1.51
|
|
|
|
(1)
|
Upon redemption of
the outstanding Series A Preferred Stock on August 16, 2021, the
Company will incur an associated non-cash charge of approximately
$3.3 million, as a reduction to net income attributable to common
stockholders for the original related issuance
costs.
|
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 2021 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,
2020 through June 30, 2021, and excludes properties
that were acquired or sold during the period from January 1, 2020 through June 30, 2021, and
properties acquired prior to January 1,
2020, that were classified as current or future
repositioning, redevelopment or lease-up during 2020 or 2021
(unless otherwise noted), which we believe significantly affected
the properties' results during the comparative periods. As of
June 30, 2021, our 2021 Stabilized Same Property Portfolio
consists of 195 properties aggregating 24,721,010 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 June 30, 2021,
we had consolidated indebtedness of $1.2
billion, reflecting a net debt to enterprise value of
approximately 12.0%. 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.
In-Place Annualized Base Rent (ABR): Calculated as the
monthly contractual base rent (before rent abatements) per the
terms of the lease, as of June 30, 2021, multiplied by 12.
Includes leases that have commenced as of June 30, 2021 or
leases where tenant has taken early possession of space as of
June 30, 2021. Excludes tenant reimbursements.
Contact:
Investor Relations:
Stephen Swett
424-256-2153 ext 401
investorrelations@rexfordindustrial.com
Rexford Industrial
Realty, Inc.
Consolidated Balance
Sheets
(In thousands except
share data)
|
|
|
June 30,
2021
|
|
December 31,
2020
|
|
(unaudited)
|
|
|
ASSETS
|
|
|
|
Land
|
$
|
2,942,639
|
|
|
$
|
2,636,816
|
|
Buildings and
improvements
|
2,339,640
|
|
|
2,201,187
|
|
Tenant
improvements
|
93,221
|
|
|
84,462
|
|
Furniture, fixtures,
and equipment
|
132
|
|
|
132
|
|
Construction in
progress
|
33,250
|
|
|
25,358
|
|
Total real estate held
for investment
|
5,408,882
|
|
|
4,947,955
|
|
Accumulated
depreciation
|
(427,387)
|
|
|
(375,423)
|
|
Investments in real
estate, net
|
4,981,495
|
|
|
4,572,532
|
|
Cash and cash
equivalents
|
64,219
|
|
|
176,293
|
|
Restricted
cash
|
26
|
|
|
1,230
|
|
Rents and other
receivables, net
|
8,228
|
|
|
10,208
|
|
Deferred rent
receivable, net
|
49,933
|
|
|
40,893
|
|
Deferred leasing
costs, net
|
31,183
|
|
|
23,148
|
|
Deferred loan costs,
net
|
2,545
|
|
|
2,240
|
|
Acquired lease
intangible assets, net
|
89,560
|
|
|
92,172
|
|
Acquired
indefinite-lived intangible
|
5,156
|
|
|
5,156
|
|
Other
assets
|
18,841
|
|
|
14,390
|
|
Acquisition related
deposits
|
14,540
|
|
|
4,067
|
|
Assets associated with
real estate held for sale, net
|
—
|
|
|
8,845
|
|
Total
Assets
|
$
|
5,265,726
|
|
|
$
|
4,951,174
|
|
LIABILITIES &
EQUITY
|
|
|
|
Liabilities
|
|
|
|
Notes
payable
|
$
|
1,219,021
|
|
|
$
|
1,216,160
|
|
Interest rate swap
liability
|
12,694
|
|
|
17,580
|
|
Accounts payable,
accrued expenses and other liabilities
|
49,699
|
|
|
45,384
|
|
Dividends
payable
|
34,681
|
|
|
29,747
|
|
Acquired lease
intangible liabilities, net
|
65,646
|
|
|
67,256
|
|
Tenant security
deposits
|
38,489
|
|
|
31,602
|
|
Prepaid
rents
|
12,724
|
|
|
12,660
|
|
Liabilities associated
with real estate held for sale
|
—
|
|
|
193
|
|
Total
Liabilities
|
1,432,954
|
|
|
1,420,582
|
|
Equity
|
|
|
|
Rexford Industrial
Realty, Inc. stockholders' equity
|
|
|
|
Preferred stock, $0.01
par value per share, 10,050,000 shares authorized, at June 30,
2021 and December 31, 2020
|
|
|
|
5.875% series A
cumulative redeemable preferred stock, 3,600,000 shares outstanding
at June 30, 2021 and December 31, 2020 ($90,000
liquidation preference)
|
86,651
|
|
|
86,651
|
|
5.875% series B
cumulative redeemable preferred stock, 3,000,000 shares outstanding
at June 30, 2021 and December 31, 2020 ($75,000
liquidation preference)
|
72,443
|
|
|
72,443
|
|
5.625% series C
cumulative redeemable preferred stock, 3,450,000 shares outstanding
at June 30, 2021 and December 31, 2020 ($86,250
liquidation preference)
|
83,233
|
|
|
83,233
|
|
Common Stock,$ 0.01
par value per share, 489,950,000 authorized and 137,727,998 and
131,426,038 shares outstanding at June 30, 2021 and
December 31, 2020, respectively
|
1,377
|
|
|
1,313
|
|
Additional paid in
capital
|
3,499,623
|
|
|
3,182,599
|
|
Cumulative
distributions in excess of earnings
|
(182,851)
|
|
|
(163,389)
|
|
Accumulated other
comprehensive loss
|
(12,319)
|
|
|
(17,709)
|
|
Total stockholders'
equity
|
3,548,157
|
|
|
3,245,141
|
|
Noncontrolling
interests
|
284,615
|
|
|
285,451
|
|
Total
Equity
|
3,832,772
|
|
|
3,530,592
|
|
Total Liabilities
and Equity
|
$
|
5,265,726
|
|
|
$
|
4,951,174
|
|
Rexford Industrial
Realty, Inc.
Consolidated
Statements of Operations
(Unaudited and in
thousands, except per share data)
|
|
|
Three Months Ended
June 30,
|
|
Six Months Ended
June 30,
|
|
2021
|
|
2020
|
|
2021
|
|
2020
|
REVENUES
|
|
|
|
|
|
|
|
Rental
income
|
$
|
104,236
|
|
|
$
|
79,770
|
|
|
$
|
203,880
|
|
|
$
|
157,260
|
|
Management, leasing
and development services
|
109
|
|
|
114
|
|
|
214
|
|
|
207
|
|
Interest
income
|
15
|
|
|
66
|
|
|
29
|
|
|
163
|
|
TOTAL
REVENUES
|
104,360
|
|
|
79,950
|
|
|
204,123
|
|
|
157,630
|
|
OPERATING
EXPENSES
|
|
|
|
|
|
|
|
Property
expenses
|
24,555
|
|
|
18,884
|
|
|
48,130
|
|
|
36,998
|
|
General and
administrative
|
10,695
|
|
|
8,972
|
|
|
22,175
|
|
|
18,289
|
|
Depreciation and
amortization
|
36,228
|
|
|
28,381
|
|
|
71,372
|
|
|
55,904
|
|
TOTAL OPERATING
EXPENSES
|
71,478
|
|
|
56,237
|
|
|
141,677
|
|
|
111,191
|
|
OTHER
EXPENSES
|
|
|
|
|
|
|
|
Acquisition
expenses
|
2
|
|
|
14
|
|
|
31
|
|
|
19
|
|
Interest
expense
|
9,593
|
|
|
7,428
|
|
|
19,345
|
|
|
14,877
|
|
TOTAL
EXPENSES
|
81,073
|
|
|
63,679
|
|
|
161,053
|
|
|
126,087
|
|
Gains on sale of real
estate
|
2,750
|
|
|
—
|
|
|
13,610
|
|
|
—
|
|
NET
INCOME
|
26,037
|
|
|
16,271
|
|
|
56,680
|
|
|
31,543
|
|
Less: net income
attributable to noncontrolling interest
|
(1,710)
|
|
|
(1,084)
|
|
|
(3,679)
|
|
|
(1,801)
|
|
NET INCOME
ATTRIBUTABLE TO REXFORD INDUSTRIAL REALTY, INC.
|
24,327
|
|
|
15,187
|
|
|
53,001
|
|
|
29,742
|
|
Less: preferred stock
dividends
|
(3,637)
|
|
|
(3,637)
|
|
|
(7,273)
|
|
|
(7,273)
|
|
Less: earnings
attributable to participating securities
|
(139)
|
|
|
(129)
|
|
|
(280)
|
|
|
(260)
|
|
NET INCOME
ATTRIBUTABLE TO COMMON STOCKHOLDERS
|
$
|
20,551
|
|
|
$
|
11,421
|
|
|
$
|
45,448
|
|
|
$
|
22,209
|
|
Net income
attributable to common stockholders per share
– basic
|
$
|
0.15
|
|
|
$
|
0.10
|
|
|
$
|
0.34
|
|
|
$
|
0.19
|
|
Net income
attributable to common stockholders per share
– diluted
|
$
|
0.15
|
|
|
$
|
0.10
|
|
|
$
|
0.34
|
|
|
$
|
0.19
|
|
Weighted-average
shares of common stock outstanding – basic
|
134,313
|
|
|
119,810
|
|
|
132,970
|
|
|
116,932
|
|
Weighted-average
shares of common stock outstanding – diluted
|
134,820
|
|
|
120,068
|
|
|
133,297
|
|
|
117,191
|
|
Rexford Industrial
Realty, Inc.
Stabilized Same
Property Portfolio Occupancy and NOI and Cash NOI
(Unaudited, dollars
in thousands)
|
|
Stabilized Same
Property Portfolio Occupancy:
|
|
June
30,
|
|
|
|
2021
|
|
2020
|
|
Change (basis
points)
|
Weighted Average
Occupancy:(1)
|
|
|
|
|
|
Los Angeles
County
|
99.0%
|
|
98.6%
|
|
40 bps
|
Orange
County
|
98.7%
|
|
96.9%
|
|
180 bps
|
San Bernardino
County
|
99.1%
|
|
97.1%
|
|
200 bps
|
San Diego
County
|
97.2%
|
|
95.4%
|
|
180 bps
|
Ventura
County
|
95.5%
|
|
95.5%
|
|
— bps
|
Total Portfolio
Weighted Average Occupancy
|
98.5%
|
|
97.5%
|
|
100 bps
|
|
|
|
|
|
|
Ending
Occupancy:
|
98.4%
|
|
97.4%
|
|
100 bps
|
|
|
(1)
|
Calculated by
averaging the occupancy rate at the end of each month in 2Q-2021
and March 2021 (for 2Q-2021) and the end of each month in 2Q-2020
and March 2020 (for 2Q-2020).
|
Stabilized Same
Property Portfolio NOI and Cash NOI:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
June 30,
|
|
Six Months Ended
June 30,
|
|
2021
|
|
2020
|
|
$
Change
|
|
%
Change
|
|
2021
|
|
2020
|
|
$
Change
|
|
%Change
|
Rental
income
|
$
|
79,376
|
|
|
$
|
72,682
|
|
|
$
|
6,694
|
|
|
9.2%
|
|
$
|
156,724
|
|
|
$
|
145,648
|
|
|
$
|
11,076
|
|
|
7.6%
|
Property
expenses
|
17,940
|
|
|
16,887
|
|
|
1,053
|
|
|
6.2%
|
|
35,294
|
|
|
33,683
|
|
|
1,611
|
|
|
4.8%
|
Stabilized Same
Property Portfolio NOI
|
$
|
61,436
|
|
|
$
|
55,795
|
|
|
$
|
5,641
|
|
|
10.1%
|
|
$
|
121,430
|
|
|
$
|
111,965
|
|
|
$
|
9,465
|
|
|
8.5%
|
Straight line rental
revenue adjustment
|
(1,851)
|
|
|
(6,055)
|
|
|
4,204
|
|
|
(69.4)%
|
|
(3,607)
|
|
|
(7,734)
|
|
|
4,127
|
|
|
(53.4)%
|
Amortization of
above/below market lease intangibles
|
(1,340)
|
|
|
(2,002)
|
|
|
662
|
|
|
(33.1)%
|
|
(2,842)
|
|
|
(4,074)
|
|
|
1,232
|
|
|
(30.2)%
|
Stabilized Same
Property Portfolio Cash NOI
|
$
|
58,245
|
|
|
$
|
47,738
|
|
|
$
|
10,507
|
|
|
22.0%
|
|
$
|
114,981
|
|
|
$
|
100,157
|
|
|
$
|
14,824
|
|
|
14.8%
|
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
June 30,
|
|
Six Months Ended
June 30,
|
|
2021
|
|
2020
|
|
2021
|
|
2020
|
Net income
|
$
|
26,037
|
|
|
$
|
16,271
|
|
|
$
|
56,680
|
|
|
$
|
31,543
|
|
Add:
|
|
|
|
|
|
|
|
General and
administrative
|
10,695
|
|
|
8,972
|
|
|
22,175
|
|
|
18,289
|
|
Depreciation and
amortization
|
36,228
|
|
|
28,381
|
|
|
71,372
|
|
|
55,904
|
|
Acquisition
expenses
|
2
|
|
|
14
|
|
|
31
|
|
|
19
|
|
Interest
expense
|
9,593
|
|
|
7,428
|
|
|
19,345
|
|
|
14,877
|
|
Deduct:
|
|
|
|
|
|
|
|
Management, leasing
and development services
|
109
|
|
|
114
|
|
|
214
|
|
|
207
|
|
Interest
income
|
15
|
|
|
66
|
|
|
29
|
|
|
163
|
|
Gain on sale of real
estate
|
2,750
|
|
|
—
|
|
|
13,610
|
|
|
—
|
|
Net operating income
(NOI)
|
$
|
79,681
|
|
|
$
|
60,886
|
|
|
$
|
155,750
|
|
|
$
|
120,262
|
|
Non-Stabilized Same
Property Portfolio rental income
|
(24,860)
|
|
|
(7,088)
|
|
|
(47,156)
|
|
|
(11,612)
|
|
Non-Stabilized Same
Property Portfolio property expenses
|
6,615
|
|
|
1,997
|
|
|
12,836
|
|
|
3,315
|
|
Stabilized Same
Property Portfolio NOI
|
$
|
61,436
|
|
|
$
|
55,795
|
|
|
$
|
121,430
|
|
|
$
|
111,965
|
|
Straight line rental
revenue adjustment
|
(1,851)
|
|
|
(6,055)
|
|
|
(3,607)
|
|
|
(7,734)
|
|
Amortization of
above/below market lease intangibles
|
(1,340)
|
|
|
(2,002)
|
|
|
(2,842)
|
|
|
(4,074)
|
|
Stabilized Same
Property Portfolio Cash NOI
|
$
|
58,245
|
|
|
$
|
47,738
|
|
|
$
|
114,981
|
|
|
$
|
100,157
|
|
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
June 30,
|
|
Six Months Ended
June 30,
|
|
2021
|
|
2020
|
|
2021
|
|
2020
|
Net
income
|
$
|
26,037
|
|
|
$
|
16,271
|
|
|
$
|
56,680
|
|
|
$
|
31,543
|
|
Add:
|
|
|
|
|
|
|
|
Depreciation and
amortization
|
36,228
|
|
|
28,381
|
|
|
71,372
|
|
|
55,904
|
|
Deduct:
|
|
|
|
|
|
|
|
Gain on sale of real
estate
|
2,750
|
|
|
—
|
|
|
13,610
|
|
|
—
|
|
Funds From
Operations (FFO)
|
$
|
59,515
|
|
|
$
|
44,652
|
|
|
$
|
114,442
|
|
|
$
|
87,447
|
|
Less: preferred stock
dividends
|
(3,637)
|
|
|
(3,637)
|
|
|
(7,273)
|
|
|
(7,273)
|
|
Less: FFO attributable
to noncontrolling interest(1)
|
(3,256)
|
|
|
(2,005)
|
|
|
(6,390)
|
|
|
(3,455)
|
|
Less: FFO attributable
to participating securities(2)
|
(224)
|
|
|
(192)
|
|
|
(433)
|
|
|
(387)
|
|
Company share of
FFO
|
$
|
52,398
|
|
|
$
|
38,818
|
|
|
$
|
100,346
|
|
|
$
|
76,332
|
|
|
|
|
|
|
|
|
|
Company Share of FFO
per common share – basic
|
$
|
0.39
|
|
|
$
|
0.32
|
|
|
$
|
0.75
|
|
|
$
|
0.65
|
|
Company Share of FFO
per common share – diluted
|
$
|
0.39
|
|
|
$
|
0.32
|
|
|
$
|
0.75
|
|
|
$
|
0.65
|
|
|
|
|
|
|
|
|
|
FFO
|
$
|
59,515
|
|
|
$
|
44,652
|
|
|
$
|
114,442
|
|
|
$
|
87,447
|
|
Adjust:
|
|
|
|
|
|
|
|
Acquisition
expenses
|
2
|
|
|
14
|
|
|
31
|
|
|
19
|
|
Amortization of loss
on termination of interest rate swap
|
410
|
|
|
—
|
|
|
820
|
|
|
—
|
|
Core
FFO
|
$
|
59,927
|
|
|
$
|
44,666
|
|
|
$
|
115,293
|
|
|
$
|
87,466
|
|
Less: preferred stock
dividends
|
(3,637)
|
|
|
(3,637)
|
|
|
(7,273)
|
|
|
(7,273)
|
|
Less: Core FFO
attributable to noncontrolling interest(1)
|
(3,275)
|
|
|
(2,005)
|
|
|
(6,430)
|
|
|
(3,455)
|
|
Less: Core FFO
attributable to participating securities(2)
|
(226)
|
|
|
(192)
|
|
|
(437)
|
|
|
(387)
|
|
Company share of
Core FFO
|
$
|
52,789
|
|
|
$
|
38,832
|
|
|
$
|
101,153
|
|
|
$
|
76,351
|
|
|
|
|
|
|
|
|
|
Company share of Core
FFO per common share – basic
|
$
|
0.39
|
|
|
$
|
0.32
|
|
|
$
|
0.76
|
|
|
$
|
0.65
|
|
Company share of Core
FFO per common share – diluted
|
$
|
0.39
|
|
|
$
|
0.32
|
|
|
$
|
0.76
|
|
|
$
|
0.65
|
|
|
|
|
|
|
|
|
|
Weighted-average
shares of common stock outstanding – basic
|
134,313
|
|
|
119,810
|
|
|
132,970
|
|
|
116,932
|
|
Weighted-average
shares of common stock outstanding – diluted
|
134,820
|
|
|
120,068
|
|
|
133,297
|
|
|
117,191
|
|
|
|
(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.
|
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content:https://www.prnewswire.com/news-releases/rexford-industrial-announces-second-quarter-2021-financial-results-301338868.html
SOURCE Rexford Industrial Realty, Inc.