LOS ANGELES, Oct. 20, 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
within Southern California infill
markets, today announced financial and operating results for the
third quarter of 2021.
Third Quarter 2021 Financial and Operational
Highlights:
- Net income attributable to common stockholders of $31.5 million, or $0.23 per diluted share, as compared to
$25.9 million, or $0.21 per diluted share, for the third quarter of
2020.
- Company share of Core FFO of $59.6
million, an increase of 46.9% as compared to the third
quarter 2020.
- Company share of Core FFO per diluted share of $0.43, an increase of 30.3% as compared to the
third quarter 2020.
- Consolidated Portfolio Net Operating Income (NOI) of
$87.8 million, an increase of 39.4%
as compared to the third quarter of 2020.
- Same Property Portfolio(1) NOI increased 9.7% and
Same Property Portfolio(1) Cash NOI increased 13.3% as
compared to the third quarter 2020.
- Average Same Property Portfolio occupancy was 98.6%.
- Comparable rental rates on 1.8 million rentable square feet of
new and renewal leases were 54.3% higher than prior rents on a GAAP
basis and 38.5% higher on a cash basis.
- Acquired thirteen properties for an aggregate purchase price of
$880.5 million and sold one property
for a sales price of $18.6
million.
- Completed a debt offering of $400
million aggregate principal 2.150% Senior Notes due
September 1, 2031.
- Issued a total of 13.7 million shares of common stock for total
net proceeds of $783 million through
a range of equity transactions.
- Ended the quarter with a low-leverage balance sheet measured by
a net debt-to-enterprise value ratio of 12.7%.
"Our team produced another quarter of extraordinary results,
reflecting the unique, entrepreneurial nature of the Rexford
business model and the strength of our infill Southern California industrial market. We
achieved Core FFO growth of 47% and 30% on a per share basis,
fueled by consolidated NOI growth of 39%, compared to the prior
year quarter. Our team executed 1.8 million square feet of
leasing activity at outstanding GAAP and cash releasing spreads of
54% and 39%, respectively," stated Michael
Frankel and Howard Schwimmer,
Co-Chief Executive Officers of the Company. "We continued to scale
our operating platform and deepen our market penetration with
thirteen acquisitions during the quarter for $880 million, surpassing $1.3 billion of investments completed
year-to-date. Our investment activity is planting the seeds for
what we believe will be sustained cash flow growth into future
periods. Meanwhile, with over $300 million of
opportunities under contract or accepted offer, we remain
well-positioned with substantial liquidity and a best-in-class, low
leverage balance sheet at 12.7% net debt to enterprise value to
drive substantial value creation and long-term shareholder
value."
_____________________________
|
(1)
|
The Same Property
Portfolio was previously referred to as the "Stabilized Same
Property Portfolio." No definitional changes have been
made.
|
Financial Results:
The Company reported net income attributable to common
stockholders of $31.5 million, or
$0.23 per diluted share, for the
three months ended September 30, 2021, as compared to net
income attributable to common stockholders of $25.9 million, or $0.21 per diluted share, for the three months
ended September 30, 2020. Net income for both the three months
ended September 30, 2021 and the three months ended
September 30, 2020, include $13.7
million of gains on sale of real estate.
The Company reported net income attributable to common
stockholders of $77.0 million, or
$0.57 per diluted share, for the nine
months ended September 30, 2021, as compared to net income
attributable to common stockholders of $48.1
million, or $0.40 per diluted
share, for the nine months ended September 30, 2020. Net
income for the nine months ended September 30, 2021 includes
$27.3 million of gains on sale of
real estate, as compared to $13.7
million for the nine months ended September 30,
2020.
For the three months ended September 30, 2021, Company
share of Core FFO increased 46.9% year-over-year to $59.6 million, or $0.43 per diluted share of common stock, equal to
a 30.3% increase, as compared to Company share of Core FFO of
$40.6 million, or $0.33 per diluted share of common stock, for the
three months ended September 30, 2020.
For the nine months ended September 30, 2021, Company share
of Core FFO increased 37.5% year-over-year to $160.7 million, or $1.19 per diluted share of common stock, equal to
a 21.4% increase, as compared to Company share of Core FFO of
$116.9 million, or $0.98 per diluted share of common stock, for the
nine months ended September 30, 2020.
For the three months ended September 30, 2021, the
Company's consolidated portfolio NOI increased 39.4% compared to
the three months ended September 30, 2020, and the Company's
consolidated portfolio Cash NOI increased 37.8% compared to the
three months ended September 30, 2020.
For the nine months ended September 30, 2021, the Company's
consolidated portfolio NOI increased 32.9% compared to the nine
months ended September 30, 2020, and the Company's
consolidated portfolio Cash NOI increased 33.4% compared to the
nine months ended September 30, 2020.
For the three months ended September 30, 2021, the
Company's Same Property Portfolio NOI increased 9.7% compared to
the three months ended September 30, 2020, driven by a 7.7%
increase in Same Property Portfolio rental income and a 1.3%
increase in Same Property Portfolio expenses. Same Property
Portfolio Cash NOI increased 13.3% compared to the three months
ended September 30, 2020. When adjusted for the impact of
short-term rent deferral agreements executed in response to the
COVID-19 pandemic, Same Property Portfolio Cash NOI increased 12.0%
compared to the three months ended September 30, 2020.
For the nine months ended September 30, 2021, the Company's
Same Property Portfolio NOI increased 8.9% compared to the nine
months ended September 30, 2020, driven by a 7.7% increase in
Same Property Portfolio rental income and a 3.6% increase in Same
Property Portfolio expenses. Same Property Portfolio Cash NOI
increased 14.3% compared to the nine months ended
September 30, 2020. When adjusted for the impact of short-term
rent deferral agreements executed in response to the COVID-19
pandemic, Same Property Portfolio Cash NOI increased 10.3% compared
to the nine months ended September 30, 2020.
Operating Results:
Third quarter 2021 leasing activity demonstrates strong tenant
demand fundamentals within Rexford's target Southern California infill markets:
|
|
Q3-2021 Leasing
Activity
|
|
|
|
|
|
|
Releasing
Spreads
|
|
|
# of Leases
Executed
|
|
SF of
Leasing
|
|
GAAP
|
|
Cash
|
New
Leases
|
|
65
|
|
717,104
|
|
42.2%
|
|
28.4%
|
Renewal
Leases
|
|
68
|
|
1,104,424
|
|
60.8%
|
|
43.7%
|
Total
Leases
|
|
133
|
|
1,821,528
|
|
54.3%
|
|
38.5%
|
At September 30, 2021, the Company's Same Property
Portfolio occupancy was 98.8%. Average Same Property
Portfolio occupancy for the third quarter 2021 was 98.6%. At
September 30, 2021, the Company's consolidated portfolio,
excluding value-add repositioning assets, was 98.4% occupied and
98.9% leased, and the Company's consolidated portfolio, including
value-add repositioning assets, was 96.1% occupied and 96.6%
leased.
Transaction Activity:
During the third quarter of 2021, the Company acquired thirteen
properties, including 2,083,892 square feet of buildings and 139.7
acres of low-coverage outdoor storage sites and land for future
redevelopment for an aggregate purchase price of $880.5 million. These investments are
projected to generate an aggregate stabilized unlevered yield on
total investment of 5.9%. Additionally, the Company sold one
property for a sales price of $18.6
million.
Subsequent to the third quarter of 2021, the Company acquired
two properties with a total of 118,023 rentable square feet of
buildings for an aggregate purchase price of $33.5 million.
Balance Sheet:
The Company ended the third quarter with $1.1 billion in liquidity, including $60.2 million in cash on hand, $700.0 million available under its unsecured
revolving credit facility and an estimated $379.6 million of forward equity proceeds to be
settled by the first quarter 2023. As of September 30,
2021, the Company had $1.4 billion of
outstanding debt, with an average interest rate of 2.8% and an
average term-to-maturity of 7.8 years. The Company has no debt
maturities until 2023.
In August 2021, the Company
completed a public bond offering of $400.0
million 2.15% senior notes due in 2031 (the "Notes"). The
Notes were priced at 99.014% of the principal amount and will
mature on September 1, 2031. The proceeds from the Notes are
expected to be allocated to investments in recently completed or
future green building, energy and resource efficiency and renewable
energy projects, including the redevelopment of such
projects. Pending the allocation to eligible green projects,
net proceeds of the Notes were used to repay the Company's
$225 million term loan due in 2023,
fund the redemption of all shares of the Company's 5.875% Series A
Cumulative Redeemable Preferred Stock and acquisition
activities.
During the third quarter, the Company executed on its ATM
program, selling 3,397,958 shares of common stock at a weighted
average share price of $61.43 per
share, or $208.7 million of common
stock, as follows:
- Issued 786,174 shares of common stock at an average price of
$60.42 per share, receiving proceeds
of approximately $47.5 million before
issuance costs.
- Sold 2,611,784 shares of common stock that were subject to a
forward equity sale agreement at an average price of $61.73 per share for a gross value of
$161.2 million. The Company fully
settled this forward sale agreement in the third quarter and
received net proceeds of approximately $159.1 million.
As of September 30, 2021, the ATM program had approximately
$299.4 million of remaining
capacity.
In September 2021, the Company
fully settled the remaining 7,190,474 shares outstanding under the
forward equity sale agreements from the Company's May 2021 public offering for total net proceeds
of approximately $395.0 million.
In September 2021, the Company
completed a public offering of 9,600,000 shares of common stock
comprising 3,100,000 shares of common stock offered directly by the
Company for gross proceeds of $181.8
million and 6,500,000 shares of common stock subject to
forward equity sale agreements at an initial forward price of
$58.65 per share for a gross offering
value of $381.2 million. As of
September 30, 2021, the Company expects to receive
approximately $379.6 million upon the
settlement of the forward equity sale agreements which is expected
to occur by March 22, 2023.
Dividends:
On October 18, 2021, the Company's Board of Directors
declared a dividend in the amount of $0.24 per share for the fourth quarter of 2021,
payable in cash on January 18,
2022, to common stockholders and common unit holders of record as
of December 31, 2021.
On October 18, 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
December 31, 2021, to preferred stockholders of record as of
December 15, 2021.
COVID-19 Collections Update
Through October 18, 2021, the Company collected 98.5% of
contractual third quarter billings, which includes contractual base
rent (including COVID-19 deferral billings) and tenant
reimbursements charged to tenants.
As of September 30, 2021, the Company had 1,559 leases
representing in-place annualized base rent ("ABR") of $391.9 million. As of September 30,
2021, the Company had outstanding COVID-19 related deferrals of
$251,000 or 0.1% of ABR, of which
$110,000 will be charged to tenants
through December 2021.
Guidance
The Company is revising its full year 2021 guidance as
follows:
2021 Outlook
(1)
|
|
Q3'21 UPDATED
GUIDANCE
|
|
Q2'21
GUIDANCE
|
Net Income
Attributable to Common Stockholders per diluted share
|
|
$0.70 -
$0.71
|
|
$0.53 -
$0.56
|
Company share of Core
FFO per diluted share
|
|
$1.60 -
$1.61
|
|
$1.48 -
$1.51
|
Same Property
Portfolio NOI Growth (2)
|
|
8.25% -
8.75%
|
|
5.75% -
6.75%
|
Same Property
Portfolio Cash NOI Growth (2)
|
|
11.50% -
12.00%
|
|
9.00% -
10.00%
|
Average 2021 Same
Property Portfolio Occupancy (Full Year) (2)
|
|
98.0% -
98.5%
|
|
97.75% -
98.25%
|
General and
Administrative Expenses (3)
|
|
$46.0M -
$47.0M
|
|
$45.0M -
$46.0M
|
Net Interest
Expense
|
|
$39.5M -
$40.0M
|
|
$36.0M -
$36.5M
|
|
|
(1)
|
2021 Guidance
represents the in-place portfolio as of October 20, 2021, and
does not include any assumptions for prospective acquisitions,
dispositions or balance sheet activities that have not
closed.
|
(2)
|
The Same Property
Portfolio was previously referred to as the "Stabilized Same
Property Portfolio." No definitional changes have been
made. For a full definition of the Same Property Portfolio
please see definitions herein.
|
(3)
|
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 October 20, 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 and Investor Presentation:
The Company's supplemental financial reporting package as well
as an updated investor presentation are available on the Company's
investor relations website at www.ir.rexfordindustrial.com.
Earnings Release, Investor Conference Webcast and Conference
Call:
The Company will host a webcast and conference call on Thursday,
October 21, 2021, at 1:00 p.m. Eastern
Time to review third 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: 13722855
The playback can be accessed through November 21, 2021.
About Rexford Industrial:
Rexford Industrial, a real estate investment trust focused on
owning and operating industrial properties throughout Southern California infill markets, owns 280
properties with approximately 35.1 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. "Company Share of FFO" reflects FFO
attributable to common stockholders, which excludes amounts
allocable to noncontrolling interests, participating securities and
preferred stockholders (which consists of preferred stock dividends
and any preferred stock redemption charges related to the write-off
of original issuance costs).
Core Funds from Operations (Core FFO): We calculate Core
FFO by adjusting FFO to exclude the impact of certain items that we
do not consider reflective of our core revenue or expense streams.
These adjustments consist of (i) acquisition expenses, (ii) loss on
extinguishment of debt, (iii) the amortization of the loss on
termination of interest rate swaps 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. "Company Share of Core FFO" reflects Core FFO
attributable to common stockholders, which excludes amounts
allocable to noncontrolling interests, participating securities and
preferred stockholders (which consists of preferred stock
dividends, but excludes non-recurring preferred stock redemption
charges related to the write-off of original issuance costs which
we do not consider reflective of our core revenue or expense
streams).
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
|
$
|
0.70
|
|
|
$
|
0.71
|
|
Company share of
depreciation and amortization
|
1.06
|
|
|
1.06
|
|
Company share of
gains on sale of real estate
|
(0.19)
|
|
|
(0.19)
|
|
Company share of
FFO
|
$
|
1.57
|
|
|
$
|
1.58
|
|
Add: Series A
Preferred Stock redemption charge(1)
|
0.02
|
|
|
0.02
|
|
Add: Amortization of
loss on termination of interest rate swap
|
0.01
|
|
|
0.01
|
|
Company share of
Core FFO
|
$
|
1.60
|
|
|
$
|
1.61
|
|
|
|
(1)
|
In connection with
the redemption of the 5.875% Series A Cumulative Redeemable
Preferred Stock on August 16, 2021, the Company incurred 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 Same Property Portfolio. A calculation of NOI
for our Same Property Portfolio, as well as a reconciliation of net
income to NOI for our Same Property Portfolio, is set forth
below.
Cash NOI: Cash NOI is a non-GAAP measure, which we
calculate by adding or subtracting from NOI: (i) fair value lease
revenue and (ii) straight-line rent adjustments. We use Cash NOI,
together with NOI, as a supplemental performance measure. Cash NOI
should not be used as a measure of our liquidity, nor is it
indicative of funds available to fund our cash needs. Cash NOI
should not be used as a substitute for cash flow from operating
activities computed in accordance with GAAP. We use Cash NOI to
help evaluate the performance of the Company as a whole, as well as
the performance of our Same Property Portfolio. A calculation of
Cash NOI for our Same Property Portfolio, as well as a
reconciliation of net income to Cash NOI for our Same Property
Portfolio, is set forth below.
Same Property Portfolio:
Our 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 September 30, 2021, and excludes properties that were
acquired or sold during the period from January 1, 2020 through September 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
September 30, 2021, our 2021 Same Property Portfolio consists
of 194 properties aggregating 24,652,152 rentable square
feet. The Same Property Portfolio was previously referred to
as the "Stabilized Same Property Portfolio." No definitional
changes have been made.
Properties and Space Under Repositioning: Typically
defined as properties or units where a significant amount of space
is held vacant in order to implement capital improvements that
improve the functionality (not including basic refurbishments,
i.e., paint and carpet), cash flow and value of that space. A
repositioning is generally considered complete once the investment
is fully or nearly fully deployed and the property is available for
occupancy. We consider a repositioning property to be stabilized at
the earlier of the following: (i) upon reaching 90% occupancy or
(ii) one year from the date of completion of repositioning
construction work.
Net Debt to Enterprise Value: At September 30,
2021, we had consolidated indebtedness of $1.4 billion, reflecting a net debt to enterprise
value of approximately 12.7%. 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 September 30, 2021, multiplied by
12. Includes leases that have commenced as of September 30,
2021 or leases where tenant has taken early possession of space as
of September 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)
|
|
|
September 30,
2021
|
|
December 31,
2020
|
|
(unaudited)
|
|
|
ASSETS
|
|
|
|
Land
|
$
|
3,714,038
|
|
|
$
|
2,636,816
|
|
Buildings and
improvements
|
2,466,435
|
|
|
2,201,187
|
|
Tenant
improvements
|
124,156
|
|
|
84,462
|
|
Furniture, fixtures,
and equipment
|
132
|
|
|
132
|
|
Construction in
progress
|
50,823
|
|
|
25,358
|
|
Total real estate held
for investment
|
6,355,584
|
|
|
4,947,955
|
|
Accumulated
depreciation
|
(452,019)
|
|
|
(375,423)
|
|
Investments in real
estate, net
|
5,903,565
|
|
|
4,572,532
|
|
Cash and cash
equivalents
|
60,154
|
|
|
176,293
|
|
Restricted
cash
|
50
|
|
|
1,230
|
|
Rents and other
receivables, net
|
9,863
|
|
|
10,208
|
|
Deferred rent
receivable, net
|
55,726
|
|
|
40,893
|
|
Deferred leasing
costs, net
|
33,531
|
|
|
23,148
|
|
Deferred loan costs,
net
|
2,192
|
|
|
2,240
|
|
Acquired lease
intangible assets, net
|
125,697
|
|
|
92,172
|
|
Acquired
indefinite-lived intangible
|
5,156
|
|
|
5,156
|
|
Other
assets
|
18,213
|
|
|
14,390
|
|
Acquisition related
deposits
|
9,610
|
|
|
4,067
|
|
Assets associated with
real estate held for sale, net
|
—
|
|
|
8,845
|
|
Total
Assets
|
$
|
6,223,757
|
|
|
$
|
4,951,174
|
|
LIABILITIES &
EQUITY
|
|
|
|
Liabilities
|
|
|
|
Notes
payable
|
$
|
1,386,649
|
|
|
$
|
1,216,160
|
|
Interest rate swap
liability
|
10,205
|
|
|
17,580
|
|
Accounts payable,
accrued expenses and other liabilities
|
77,968
|
|
|
45,384
|
|
Dividends and
distributions payable
|
37,970
|
|
|
29,747
|
|
Acquired lease
intangible liabilities, net
|
111,444
|
|
|
67,256
|
|
Tenant security
deposits
|
55,487
|
|
|
31,602
|
|
Prepaid
rents
|
16,358
|
|
|
12,660
|
|
Liabilities associated
with real estate held for sale
|
—
|
|
|
193
|
|
Total
Liabilities
|
1,696,081
|
|
|
1,420,582
|
|
Equity
|
|
|
|
Rexford Industrial
Realty, Inc. stockholders' equity
|
|
|
|
Preferred stock, $0.01
par value per share, 10,050,000 shares authorized:
|
|
|
|
5.875% series A
cumulative redeemable preferred stock, zero and 3,600,000 shares
outstanding at September 30, 2021 and December 31, 2020,
respectively ($90,000 liquidation preference)
|
—
|
|
|
86,651
|
|
5.875% series B
cumulative redeemable preferred stock, 3,000,000 shares outstanding
at September 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 September 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 151,444,908 and
131,426,038 shares outstanding at September 30, 2021 and
December 31, 2020, respectively
|
1,514
|
|
|
1,313
|
|
Additional paid in
capital
|
4,283,600
|
|
|
3,182,599
|
|
Cumulative
distributions in excess of earnings
|
(187,510)
|
|
|
(163,389)
|
|
Accumulated other
comprehensive loss
|
(13,234)
|
|
|
(17,709)
|
|
Total stockholders'
equity
|
4,240,046
|
|
|
3,245,141
|
|
Noncontrolling
interests
|
287,630
|
|
|
285,451
|
|
Total
Equity
|
4,527,676
|
|
|
3,530,592
|
|
Total Liabilities
and Equity
|
$
|
6,223,757
|
|
|
$
|
4,951,174
|
|
Rexford Industrial
Realty, Inc.
Consolidated
Statements of Operations
(Unaudited and in
thousands, except per share data)
|
|
|
Three Months
Ended
September 30,
|
|
Nine Months
Ended
September 30,
|
|
2021
|
|
2020
|
|
2021
|
|
2020
|
REVENUES
|
|
|
|
|
|
|
|
Rental
income
|
$
|
115,260
|
|
|
$
|
83,622
|
|
|
$
|
319,140
|
|
|
$
|
240,882
|
|
Management, leasing
and development services
|
136
|
|
|
118
|
|
|
350
|
|
|
325
|
|
Interest
income
|
7
|
|
|
116
|
|
|
36
|
|
|
279
|
|
TOTAL
REVENUES
|
115,403
|
|
|
83,856
|
|
|
319,526
|
|
|
241,486
|
|
OPERATING
EXPENSES
|
|
|
|
|
|
|
|
Property
expenses
|
27,501
|
|
|
20,684
|
|
|
75,631
|
|
|
57,682
|
|
General and
administrative
|
11,806
|
|
|
9,464
|
|
|
33,981
|
|
|
27,753
|
|
Depreciation and
amortization
|
38,676
|
|
|
28,811
|
|
|
110,048
|
|
|
84,715
|
|
TOTAL OPERATING
EXPENSES
|
77,983
|
|
|
58,959
|
|
|
219,660
|
|
|
170,150
|
|
OTHER
EXPENSES
|
|
|
|
|
|
|
|
Acquisition
expenses
|
4
|
|
|
70
|
|
|
35
|
|
|
89
|
|
Interest
expense
|
10,427
|
|
|
7,299
|
|
|
29,772
|
|
|
22,176
|
|
TOTAL
EXPENSES
|
88,414
|
|
|
66,328
|
|
|
249,467
|
|
|
192,415
|
|
Loss on extinguishment
of debt
|
(505)
|
|
|
—
|
|
|
(505)
|
|
|
—
|
|
Gains on sale of real
estate
|
13,702
|
|
|
13,669
|
|
|
27,312
|
|
|
13,669
|
|
NET
INCOME
|
40,186
|
|
|
31,197
|
|
|
96,866
|
|
|
62,740
|
|
Less: net income
attributable to noncontrolling interests
|
(2,173)
|
|
|
(1,531)
|
|
|
(5,852)
|
|
|
(3,332)
|
|
NET INCOME
ATTRIBUTABLE TO REXFORD INDUSTRIAL REALTY, INC.
|
38,013
|
|
|
29,666
|
|
|
91,014
|
|
|
59,408
|
|
Less: preferred stock
dividends
|
(2,976)
|
|
|
(3,636)
|
|
|
(10,249)
|
|
|
(10,909)
|
|
Less: original
issuance costs of redeemed preferred stock
|
(3,349)
|
|
|
—
|
|
|
(3,349)
|
|
|
—
|
|
Less: earnings
attributable to participating securities
|
(143)
|
|
|
(129)
|
|
|
(423)
|
|
|
(389)
|
|
NET INCOME
ATTRIBUTABLE TO COMMON STOCKHOLDERS
|
$
|
31,545
|
|
|
$
|
25,901
|
|
|
$
|
76,993
|
|
|
$
|
48,110
|
|
Net income
attributable to common stockholders per share
– basic
|
$
|
0.23
|
|
|
$
|
0.21
|
|
|
$
|
0.57
|
|
|
$
|
0.40
|
|
Net income
attributable to common stockholders per share
– diluted
|
$
|
0.23
|
|
|
$
|
0.21
|
|
|
$
|
0.57
|
|
|
$
|
0.40
|
|
Weighted-average
shares of common stock outstanding – basic
|
138,762
|
|
|
123,549
|
|
|
134,922
|
|
|
119,154
|
|
Weighted-average
shares of common stock outstanding – diluted
|
139,630
|
|
|
123,844
|
|
|
135,429
|
|
|
119,425
|
|
Rexford Industrial
Realty, Inc.
Same Property
Portfolio Occupancy and NOI and Cash NOI
(Unaudited, dollars
in thousands)
|
|
Same Property
Portfolio Occupancy:
|
|
September
30,
|
|
|
|
2021
|
|
2020
|
|
Change (basis
points)
|
Weighted Average
Occupancy:(1)
|
|
|
|
|
|
Los Angeles
County
|
98.7%
|
|
98.4%
|
|
30 bps
|
Orange
County
|
98.9%
|
|
97.5%
|
|
140 bps
|
San Bernardino
County
|
98.9%
|
|
98.2%
|
|
70 bps
|
San Diego
County
|
98.3%
|
|
96.2%
|
|
210 bps
|
Ventura
County
|
97.1%
|
|
95.8%
|
|
130 bps
|
Same Property
Portfolio Weighted Average Occupancy
|
98.6%
|
|
97.8%
|
|
80 bps
|
|
|
|
|
|
|
Ending
Occupancy:
|
98.8%
|
|
98.3%
|
|
50 bps
|
|
|
(1)
|
Calculated by
averaging the occupancy rate at the end of each month in 3Q-2021
and June 2021 (for 3Q-2021) and the end of each month in 3Q-2020
and June 2020 (for 3Q-2020).
|
Same Property
Portfolio NOI and Cash NOI:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
September 30,
|
|
Nine Months Ended
September 30,
|
|
2021
|
|
2020
|
|
$
Change
|
|
%
Change
|
|
2021
|
|
2020
|
|
$
Change
|
|
%
Change
|
Rental
income
|
$
|
80,278
|
|
|
$
|
74,543
|
|
|
$
|
5,735
|
|
|
7.7%
|
|
$
|
236,442
|
|
|
$
|
219,630
|
|
|
$
|
16,812
|
|
|
7.7%
|
Property
expenses
|
18,104
|
|
|
17,866
|
|
|
238
|
|
|
1.3%
|
|
53,278
|
|
|
51,412
|
|
|
1,866
|
|
|
3.6%
|
Same Property
Portfolio NOI
|
$
|
62,174
|
|
|
$
|
56,677
|
|
|
$
|
5,497
|
|
|
9.7%
|
|
$
|
183,164
|
|
|
$
|
168,218
|
|
|
$
|
14,946
|
|
|
8.9%
|
Straight line rental
revenue adjustment
|
(2,096)
|
|
|
(2,842)
|
|
|
746
|
|
|
(26.2)%
|
|
(5,713)
|
|
|
(10,588)
|
|
|
4,875
|
|
|
(46.0)%
|
Amortization of
above/below market lease intangibles
|
(1,280)
|
|
|
(1,956)
|
|
|
676
|
|
|
(34.6)%
|
|
(4,122)
|
|
|
(6,030)
|
|
|
1,908
|
|
|
(31.6)%
|
Same Property
Portfolio Cash NOI
|
$
|
58,798
|
|
|
$
|
51,879
|
|
|
$
|
6,919
|
|
|
13.3%
|
|
$
|
173,329
|
|
|
$
|
151,600
|
|
|
$
|
21,729
|
|
|
14.3%
|
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
September 30,
|
|
Nine Months
Ended
September 30,
|
|
2021
|
|
2020
|
|
2021
|
|
2020
|
Net income
|
$
|
40,186
|
|
|
$
|
31,197
|
|
|
$
|
96,866
|
|
|
$
|
62,740
|
|
Add:
|
|
|
|
|
|
|
|
General and
administrative
|
11,806
|
|
|
9,464
|
|
|
33,981
|
|
|
27,753
|
|
Depreciation and
amortization
|
38,676
|
|
|
28,811
|
|
|
110,048
|
|
|
84,715
|
|
Acquisition
expenses
|
4
|
|
|
70
|
|
|
35
|
|
|
89
|
|
Interest
expense
|
10,427
|
|
|
7,299
|
|
|
29,772
|
|
|
22,176
|
|
Loss on extinguishment
of debt
|
505
|
|
|
—
|
|
|
505
|
|
|
—
|
|
Deduct:
|
|
|
|
|
|
|
|
Management, leasing
and development services
|
136
|
|
|
118
|
|
|
350
|
|
|
325
|
|
Interest
income
|
7
|
|
|
116
|
|
|
36
|
|
|
279
|
|
Gain on sale of real
estate
|
13,702
|
|
|
13,669
|
|
|
27,312
|
|
|
13,669
|
|
Net operating income
(NOI)
|
$
|
87,759
|
|
|
$
|
62,938
|
|
|
$
|
243,509
|
|
|
$
|
183,200
|
|
Straight line rental
revenue adjustment
|
(5,865)
|
|
|
(3,088)
|
|
|
(14,904)
|
|
|
(10,968)
|
|
Amortization of
above/below market lease intangibles
|
(3,191)
|
|
|
(2,751)
|
|
|
(9,289)
|
|
|
(7,822)
|
|
Cash NOI
|
$
|
78,703
|
|
|
$
|
57,099
|
|
|
$
|
219,316
|
|
|
$
|
164,410
|
|
|
|
|
|
|
|
|
|
NOI
|
$
|
87,759
|
|
|
$
|
62,938
|
|
|
$
|
243,509
|
|
|
$
|
183,200
|
|
Non-Same Property
Portfolio rental income
|
(34,982)
|
|
|
(9,079)
|
|
|
(82,698)
|
|
|
(21,252)
|
|
Non-Same Property
Portfolio property expenses
|
9,397
|
|
|
2,818
|
|
|
22,353
|
|
|
6,270
|
|
Same Property
Portfolio NOI
|
$
|
62,174
|
|
|
$
|
56,677
|
|
|
$
|
183,164
|
|
|
$
|
168,218
|
|
Straight line rental
revenue adjustment
|
(2,096)
|
|
|
(2,842)
|
|
|
(5,713)
|
|
|
(10,588)
|
|
Amortization of
above/below market lease intangibles
|
(1,280)
|
|
|
(1,956)
|
|
|
(4,122)
|
|
|
(6,030)
|
|
Same Property
Portfolio Cash NOI
|
$
|
58,798
|
|
|
$
|
51,879
|
|
|
$
|
173,329
|
|
|
$
|
151,600
|
|
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
September 30,
|
|
Nine Months
Ended
September 30,
|
|
2021
|
|
2020
|
|
2021
|
|
2020
|
Net
income
|
$
|
40,186
|
|
|
$
|
31,197
|
|
|
$
|
96,866
|
|
|
$
|
62,740
|
|
Add:
|
|
|
|
|
|
|
|
Depreciation and
amortization
|
38,676
|
|
|
28,811
|
|
|
110,048
|
|
|
84,715
|
|
Deduct:
|
|
|
|
|
|
|
|
Gain on sale of real
estate
|
13,702
|
|
|
13,669
|
|
|
27,312
|
|
|
13,669
|
|
Funds From
Operations (FFO)
|
$
|
65,160
|
|
|
$
|
46,339
|
|
|
$
|
179,602
|
|
|
$
|
133,786
|
|
Less: preferred stock
dividends
|
(2,976)
|
|
|
(3,636)
|
|
|
(10,249)
|
|
|
(10,909)
|
|
Less: original
issuance costs of redeemed preferred stock
|
(3,349)
|
|
|
—
|
|
|
(3,349)
|
|
|
—
|
|
Less: FFO attributable
to noncontrolling interests(1)
|
(3,277)
|
|
|
(2,017)
|
|
|
(9,667)
|
|
|
(5,472)
|
|
Less: FFO attributable
to participating securities(2)
|
(223)
|
|
|
(197)
|
|
|
(656)
|
|
|
(584)
|
|
Company share of
FFO
|
$
|
55,335
|
|
|
$
|
40,489
|
|
|
$
|
155,681
|
|
|
$
|
116,821
|
|
|
|
|
|
|
|
|
|
Company Share of FFO
per common share – basic
|
$
|
0.40
|
|
|
$
|
0.33
|
|
|
$
|
1.15
|
|
|
$
|
0.98
|
|
Company Share of FFO
per common share – diluted
|
$
|
0.40
|
|
|
$
|
0.33
|
|
|
$
|
1.15
|
|
|
$
|
0.98
|
|
|
|
|
|
|
|
|
|
FFO
|
$
|
65,160
|
|
|
$
|
46,339
|
|
|
$
|
179,602
|
|
|
$
|
133,786
|
|
Adjust:
|
|
|
|
|
|
|
|
Acquisition
expenses
|
4
|
|
|
70
|
|
|
35
|
|
|
89
|
|
Loss on extinguishment
of debt
|
505
|
|
|
—
|
|
|
505
|
|
|
—
|
|
Amortization of loss
on termination of interest rate swaps
|
615
|
|
|
—
|
|
|
1,435
|
|
|
—
|
|
Core
FFO
|
$
|
66,284
|
|
|
$
|
46,409
|
|
|
$
|
181,577
|
|
|
$
|
133,875
|
|
Less: preferred stock
dividends
|
(2,976)
|
|
|
(3,636)
|
|
|
(10,249)
|
|
|
(10,909)
|
|
Less: Core FFO
attributable to noncontrolling interest(1)
|
(3,475)
|
|
|
(2,019)
|
|
|
(9,905)
|
|
|
(5,474)
|
|
Less: Core FFO
attributable to participating securities(2)
|
(241)
|
|
|
(197)
|
|
|
(678)
|
|
|
(584)
|
|
Company share of
Core FFO
|
$
|
59,592
|
|
|
$
|
40,557
|
|
|
$
|
160,745
|
|
|
$
|
116,908
|
|
|
|
|
|
|
|
|
|
Company share of Core
FFO per common share – basic
|
$
|
0.43
|
|
|
$
|
0.33
|
|
|
$
|
1.19
|
|
|
$
|
0.98
|
|
Company share of Core
FFO per common share – diluted
|
$
|
0.43
|
|
|
$
|
0.33
|
|
|
$
|
1.19
|
|
|
$
|
0.98
|
|
|
|
|
|
|
|
|
|
Weighted-average
shares of common stock outstanding – basic
|
138,762
|
|
|
123,549
|
|
|
134,922
|
|
|
119,154
|
|
Weighted-average
shares of common stock outstanding – diluted
|
139,630
|
|
|
123,844
|
|
|
135,429
|
|
|
119,425
|
|
|
|
(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:https://www.prnewswire.com/news-releases/rexford-industrial-announces-third-quarter-2021-financial-results-301405034.html
SOURCE Rexford Industrial Realty, Inc.