LOS ANGELES, Jan. 10, 2022
/PRNewswire/ -- Rexford Industrial Realty, Inc. (the "Company"
or "Rexford Industrial") (NYSE: REXR), a real estate investment
trust focused on creating value by investing in and operating
industrial properties in Southern
California infill markets, today announced operating
results, investment and capital markets activity for the
fourth quarter and full year 2021.
"Rexford's exceptional fourth quarter and full year results
reflect the strength of our entrepreneurial team and highly-focused
business model dedicated to creating value by investing in
industrial property throughout infill Southern California, the world's fourth
largest industrial market and highest-demand, lowest supply market
in the nation," stated Michael
Frankel and Howard Schwimmer,
Co-Chief Executive Officers of the Company. "Southern California's extensive supply-demand
imbalance and extraordinary level of tenant demand continue to
drive an operating environment that favors landlord pricing
power. Our team completed nearly 7 million square feet
of leases during the year, achieving full year GAAP and cash
releasing spreads of 43% and 29%, respectively, which brought Same
Property occupancy to 99.1% at year-end. We
completed $1.9 billion of investments projected to
generate a 5.4% weighted average stabilized unlevered cash
yield, representing returns significantly
above current sub-4.0% market cap
rates. Approximately 90% of our 2021 acquisitions were
acquired through off-market or lightly-marketed
transactions enabled by our proprietary, research- and
relationship-driven originations methods. Rexford's ongoing
growth opportunity is substantial, with over $400 million of new investments under contract or
accepted offer and with extensive current and future
value-add internal growth initiatives, including approximately
$635 million of in-process and
near-term repositioning and redevelopment projects projected to
generate an aggregate 6.5% stabilized unlevered yield on total
investment. Further, our low-leverage, fortress-like
balance sheet positions the Company to maximize cash
flow growth and long-term value for our stakeholders.
Operating Results:
Fourth quarter and full year 2021 leasing activity demonstrate
strong tenant demand fundamentals within Rexford's target
Southern California infill
markets.
|
|
Q4 2021 Leasing
Activity
|
|
|
|
|
|
|
Releasing
Spreads
|
|
|
# of Leases
Executed
|
|
SF of
Leasing
|
|
GAAP
|
|
Cash
|
New
Leases
|
|
30
|
|
223,347
|
|
46.1%
|
|
31.5%
|
Renewal
Leases
|
|
62
|
|
776,554
|
|
32.1%
|
|
19.8%
|
Total
Leases
|
|
92
|
|
999,901
|
|
34.2%
|
|
21.5%
|
|
|
|
|
|
|
|
|
|
|
|
Full Year 2021
Leasing Activity
|
|
|
|
|
|
|
Releasing
Spreads
|
|
|
# of Leases
Executed
|
|
SF of
Leasing
|
|
GAAP
|
|
Cash
|
New
Leases
|
|
218
|
|
3,057,661
|
|
41.7%
|
|
27.2%
|
Renewal
Leases
|
|
268
|
|
3,912,306
|
|
43.2%
|
|
29.5%
|
Total
Leases
|
|
486
|
|
6,969,967
|
|
42.7%
|
|
28.8%
|
At December 31, 2021, the
Company's Same Property Portfolio occupancy was 99.1%.
Average Same Property Portfolio occupancy for the fourth quarter
2021 and full year 2021 was 99.0% and 98.6%,
respectively. As of December 31,
2021, lease expirations for the full year 2022 total 4.9
million rentable square feet, representing approximately 13% of
total portfolio rentable square feet. The mark-to-market on the
2022 expiring leases is estimated to be 37%.
Investment Activity:
During the fourth quarter, the Company completed 19 acquisitions
representing 19 properties and 2.0 million square feet for an
aggregate purchase price of $551.4
million. Additionally, the Company sold one property
for a sales price of $11.7
million.
During the full year of 2021, the Company completed
51 acquisitions representing 53 properties and 5.7
million square feet for an aggregate purchase price of $1.9 billion, which are projected to generate an
aggregate 5.4% unlevered stabilized yield. Additionally,
the Company sold five properties for an aggregate sales price
of $59.3 million, which generated an
aggregate 26.5% unlevered IRR on investment.
For the full year 2021, the Company stabilized six repositioning
and redevelopment projects representing 1.0 million square
feet and an aggregate $207.5 million of total
investment at a 6.6% weighted average unlevered stabilized
yield.
Capital Markets Activity:
During the fourth quarter, the Company executed on its
at-the-market equity offering program, selling 4,180,001 shares of
common stock subject to forward equity sale agreements at an
average price of $70.17 per share for
a gross value of $293.3 million. In
December 2021, the Company partially
settled these forward equity sale agreements by issuing
2,273,645 shares of common stock for net proceeds of $155.0 million. As of December 31, 2021, the
Company had approximately $134.0 million of forward net
proceeds remaining for settlement to occur by November 15, 2022.
In December 2021, the Company also
fully settled the 6,500,000 shares outstanding under the forward
equity sale agreements from the Company's September 2021 public offering for total net
proceeds of $379.1
million. Proceeds from forward equity settlements in
the quarter were used to fund acquisition activity.
As of December 31, 2021, Rexford
had a cash balance of approximately $44
million and full availability under its $700 million revolving credit facility. The
Company has no debt maturities through 2022.
Investor Presentation:
An updated investor presentation with additional information is
available on the Company's investor relations website
at www.ir.rexfordindustrial.com.
Fourth Quarter Earnings Release:
The Company will release fourth quarter and full year 2021
financial results after the market closes on Wednesday, February 9, 2022. A conference call
with senior management will be held on Thursday, February 10, 2022, at 1:00 p.m. Eastern Time. To participate in
the live telephone conference call, please dial 1-877-407-0789 (for
domestic callers) or 1-201-689-8562 (for international callers) at
least five minutes prior to start time. A webcast of the conference
call will also be available in a listen-only mode at
ir.rexfordindustrial.com. Conference call playback will be
available through March 10, 2022 and
can be accessed by dialing 1-844-512-2921 (for domestic callers) or
1-412-317-6671 (for international callers), using the pass code
13725995.
About Rexford Industrial
Rexford Industrial, a real estate investment trust focused on
creating value by investing in and operating industrial properties
throughout Southern California
infill markets, owns 296 properties with approximately 36.9 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,
2020, and the Company's most recent Form 10-Q. 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.
Contact:
Investor Relations:
Stephen Swett
424 256 2153 ext. 401
investorrelations@rexfordindustrial.com
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SOURCE Rexford Industrial Realty, Inc.