LOS
ANGELES, Oct. 19, 2022 /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 2022.
Third Quarter 2022 Financial and Operational
Highlights:
- Net income attributable to common stockholders of $36.8 million, or $0.21 per diluted share, as compared to
$31.5 million, or $0.23 per diluted share, for the prior year
quarter.
- Company share of Core FFO of $86.1
million, an increase of 44.5% as compared to the prior year
quarter.
- Company share of Core FFO per diluted share of $0.50, an increase of 16.3% as compared to the
prior year quarter.
- Consolidated Portfolio Net Operating Income (NOI) of
$123.0 million, an increase of 40.1%
as compared to the prior year quarter.
- Same Property Portfolio NOI increased 7.2% and Same Property
Portfolio Cash NOI increased 9.7% as compared to the prior year
quarter.
- 98.6% Average Same Property Portfolio occupancy.
- Comparable rental rates on 1.7 million rentable square feet of
new and renewal leases increased by 88.6% compared to prior rents
on a GAAP basis and by 62.9% on a cash basis.
- Acquired 15 properties for an aggregate purchase price of
$977.5 million.
- Issued a total of 11.5 million shares of common stock for total
net proceeds of $697.0 million.
- Ended the quarter with a low-leverage balance sheet measured by
a net debt-to-enterprise value ratio of 15.9%.
- Received credit rating upgrades to BBB+ (S&P) and Baa2
(Moody's).
"Our team produced exceptional third quarter results, a
testament to our entrepreneurial and differentiated business model
focused on value creation within the infill Southern California industrial market. Despite
growing macroeconomic uncertainty, our infill Southern California industrial markets
continue to demonstrate healthy tenant demand, operating at 99%
occupancy amidst a persistent, virtually incurable supply-demand
imbalance," stated Michael Frankel
and Howard Schwimmer, Co-Chief
Executive Officers of the Company. "In the third quarter Rexford
Industrial grew Core FFO on a per share basis by 16% compared to
the prior year, driven by Core FFO growth of 45%. Our team executed
1.7 million square feet of leasing activity at re-leasing spreads
of 89% and 63%, on a GAAP and cash basis, respectively. We
completed $977 million of investments
in the third quarter, plus an additional $22
million of acquisitions completed subsequent to quarter end,
bringing our year-to-date total investments to $2.1 billion. The Company is well-positioned,
with over $250 million of additional
investments under contract or accepted offer, which are subject to
customary closing conditions, that are projected to deliver an
aggregate stabilized unlevered yield on total investment of
approximately 5.5%, well in-excess of current market yields. Our
highly selective approach to capital allocation combined with our
investment grade, fortress-like balance sheet, positions the
Company to capitalize on accretive internal and external growth
strategies that drive long-term value creation for our shareholders
through all phases of the economic cycle."
Financial Results:
The Company reported net income attributable to common
stockholders for the third quarter of $36.8
million, or $0.21 per diluted
share, compared to $31.5 million, or
$0.23 per diluted share, for the
prior year quarter. The net income in the prior year quarter
includes $13.7 million of gains on
sale of real estate. For the nine months ended September 30,
2022, net income attributable to common stockholders was
$116.8 million, or $0.70 per diluted share, compared to $77.0 million, or $0.57 per diluted share for the prior year. The
net income for the nine months ended September 30, 2022, includes $8.5 million of gains on sale of real estate, as
compared to $27.3 million for the
prior year.
The Company reported Core FFO for the third quarter of
$86.1 million, representing a 44.5%
increase compared to $59.6 million
for the prior year quarter. The Company reported Core FFO of
$0.50 per diluted share, representing
an increase of 16.3% compared to $0.43 per diluted share for the prior year
quarter. For the nine months ended September 30, 2022, Core
FFO was $244.4 million, representing
a 52.1% increase compared to $160.7
million for the prior year. For the nine months ended
September 30, 2022, the Company reported Core FFO of
$1.47 per diluted share, representing
an increase of 23.5% compared to $1.19 per diluted share for the prior year.
In the third quarter, the Company's consolidated portfolio NOI
and Cash NOI increased 40.1% and 36.6%, respectively, compared to
the prior year quarter. For the nine months ended
September 30, 2022, the Company's consolidated portfolio NOI
and Cash NOI increased 41.1% and 37.6%, respectively, compared to
the prior year.
In the third quarter, the Company's Same Property Portfolio NOI
and Cash NOI increased 7.2% and 9.7%, respectively, compared to the
prior year quarter. For the nine months ended September 30,
2022, the Company's Same Property Portfolio NOI and Cash NOI
increased 7.4% and 10.5%, respectively compared to the prior
year.
Operating Results:
Third quarter 2022 leasing activity demonstrates strong
tenant demand fundamentals within Rexford Industrial's target
Southern California infill
markets:
|
|
Q3-2022
Leasing Activity
|
|
|
|
|
|
|
Releasing
Spreads
|
|
|
# of Leases
Executed
|
|
SF of
Leasing
|
|
GAAP
|
|
Cash
|
New
Leases
|
|
53
|
|
702,882
|
|
70.5 %
|
|
53.6 %
|
Renewal
Leases
|
|
77
|
|
994,945
|
|
95.3 %
|
|
66.3 %
|
Total
Leases
|
|
130
|
|
1,697,827
|
|
88.6 %
|
|
62.9 %
|
As of September 30, 2022, the Company's Same Property
Portfolio occupancy was 98.4%. Average Same Property Portfolio
occupancy for the third quarter 2022 was 98.6%. As of
September 30, 2022, the Company's consolidated portfolio,
excluding value-add repositioning assets, was 97.8% occupied and
98.0% leased, and the Company's consolidated portfolio, including
value-add repositioning assets, was 94.5% occupied and 95.3%
leased.
Transaction Activity:
During the third quarter of 2022, the Company completed 13
acquisitions with 2.2 million square feet of buildings on 105.1
acres of land, including 1.0 acres of land for near term
redevelopment, for an aggregate purchase price of $977.5 million. This includes one transaction not
previously disclosed that was acquired through an off-market
transaction in mid-September:
- 13301 Main Street, Los
Angeles, located within the LA – South Bay submarket, was
acquired for $51.2 million, or
$478 per square foot. The 106,969
square foot, single-tenant modern industrial building, situated on
4.5 acres, is leased and generates an initial 4.2% unlevered yield
on investment, growing over time by 4.0% annual contractual rent
increases.
Subsequent to the third quarter of 2022, the Company completed
one acquisition through an off-market transaction in October:
- 20851 Currier Road, City of Industry, located within the LA –
San Gabriel Valley submarket, was acquired for $21.8 million, or $367 per square foot. The 59,412 square foot,
Class-A single tenant building, situated on 2.8 acres, is currently
vacant and projected to generate a 5.0% unlevered stabilized yield
on total investment following a light renovation and lease up at
market rents.
Year-to-date, including the property acquired subsequent to
quarter end, the Company has completed 46 acquisitions with 5.1
million square feet of buildings on 275.6 acres of land, including
31.4 acres of land for near term redevelopment, for an aggregate
purchase price of $2.1 billion. In
aggregate, these investments are projected to generate a weighted
average unlevered initial yield of 3.0% and an estimated weighted
average stabilized yield on total investment of 4.7%.
During the third quarter of 2022, the Company stabilized two
repositioning projects with 230,353 square feet and $35.7 million of total investment at a weighted
average 11.1% unlevered stabilized yield. Year to date, the Company
has stabilized four repositioning/redevelopment projects with
404,220 square feet and $72.6 million
of total investment at a weighted average 8.9% unlevered stabilized
yield.
Balance Sheet:
The Company ended the third quarter with $1.2 billion in liquidity, including $37.1 million in cash on hand, $1.0 billion available under its unsecured
revolving credit facility and an estimated $188.6 million of forward equity proceeds
available for settlement to occur before the fourth quarter of
2023. As of September 30, 2022, the Company had $1.9 billion of outstanding debt, with an average
interest rate of 3.2% and an average term-to-maturity of 5.8
years.
As previously disclosed, on July 19,
2022, the Company amended its senior unsecured credit
agreement to add a $400 million
unsecured term loan with a maturity date of July 19, 2024 (with two extension options of one
year each). Proceeds from the $400
million term loan were used to fund acquisitions, reduce
outstanding borrowings under the unsecured revolving credit
facility and for general corporate purposes.
On July 21, 2022, the Company
executed five interest rate swap agreements to manage its exposure
to changes in 1-month term SOFR related to $300 million of its variable-rate debt. These
swaps, which are effective July 27,
2022, and mature on May 26,
2027, fix 1-month term SOFR at a weighted average rate of
2.81725%. Including the impact of these interest rate swaps, the
hedged effective interest rate on the $300
million unsecured term loan maturing in May 2027 is 3.717%.
During the third quarter of 2022, the Company executed on its
ATM program, selling 5,127,587 shares of common stock subject to
forward sale agreements at an average price of $65.43 per share for a gross value of
$335.5 million. On September 22, 2022, the Company partially settled
these forward equity sale agreements and all the outstanding
forward equity sale agreements from prior quarter sales by issuing
11,515,553 shares of common stock for net proceeds of $697.0 million.
As of September 30, 2022, the $1.0
billion ATM program had approximately $201.0 million of remaining capacity.
In the third quarter of 2022, Rexford Industrial's investment
grade issuer and senior unsecured ratings were upgraded by Moody's
Investors Service ("Moody's") and S&P Global Ratings
("S&P"). Moody's upgraded the Company's ratings to Baa2 from
Baa3 with a stable outlook. S&P upgraded the Company's ratings
to BBB+ from BBB with a stable outlook.
Dividends:
On October 17, 2022, the Company's Board of Directors
declared a dividend in the amount of $0.315 per share for the fourth quarter of 2022,
payable in cash on January 17, 2023, to common stockholders
and common unit holders of record as of December 30, 2022.
On October 17, 2022, 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, payable in cash on December 30,
2022, to preferred stockholders of record as of December 15,
2022.
Guidance
The Company is revising its full year 2022 guidance as indicated
below. The Core FFO guidance refers only to the Company's in-place
portfolio as of October 19, 2022, and does not include any
assumptions for other acquisitions, dispositions or related balance
sheet activities that have not closed. Please refer to the
Company's supplemental information package for a complete list of
guidance and 2022 Guidance Rollforward.
2022 Outlook
(1)
|
|
Q3'22 Updated
Guidance
|
|
Q2'22
Guidance
|
Net Income Attributable
to Common Stockholders per diluted share
|
|
$0.88 -
$0.90
|
|
$0.84 -
$0.87
|
Company share of Core
FFO per diluted share
|
|
$1.93 -
$1.95
|
|
$1.87 -
$1.90
|
Same Property Portfolio
NOI Growth
|
|
7.00% -
7.25%
|
|
5.75% -
6.25%
|
Same Property Portfolio
Cash NOI Growth
|
|
9.75% -
10.00%
|
|
8.50% -
9.00%
|
Average Same Property
Portfolio Occupancy (Full Year)
|
|
98.50% -
98.75%
|
|
98.50% -
98.75%
|
General and
Administrative Expenses (2)
|
|
$62.5M -
$63.5M
|
|
$60.5M -
$61.5M
|
Net Interest
Expense
|
|
$50.5M -
$51.0M
|
|
$51.0M -
$52.0M
|
|
|
(1)
|
2022 Guidance
represents the in-place portfolio as of October 19, 2022, and does
not include any assumptions for prospective acquisitions,
dispositions or related balance sheet activities that have not
closed.
|
(2)
|
2022 General and
Administrative expense guidance includes estimated non-cash equity
compensation expense of $26.0 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 impact of the ongoing COVID-19 pandemic, interest
rates, inflation, 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:
A conference call with senior management will be held on
Thursday, October 20, 2022, at 1:00
p.m. Eastern Time.
To participate in the live telephone conference call, please
access the following dial-in numbers at least five minutes prior to
the start time.
1-877-407-0789 (for domestic callers)
1-201-689-8562 (for international callers)
Conference call playback will be available through November 20, 2022 and can be accessed using the
following numbers and pass code 13733021.
1-844-512-2921 (for domestic callers)
1-412-317-6671 (for international callers)
A live webcast and replay of the conference call will also be
available at www.ir.rexfordindustrial.com.
About Rexford Industrial:
Rexford Industrial creates value by investing in, operating and
redeveloping industrial properties throughout infill Southern California, the world's fourth
largest industrial market and consistently the highest-demand,
lowest supply market in the nation. The Company's highly
differentiated strategy enables internal and external growth
opportunities through its proprietary value creation and asset
management capabilities. Rexford Industrial's high-quality,
irreplaceable portfolio comprises 346 properties with approximately
41.8 million rentable square feet occupied by a stable and diverse
tenant base. Structured as a real estate investment trust (REIT)
listed on the New York Stock Exchange under the ticker "REXR,"
Rexford Industrial is an S&P MidCap 400 Index member. For more
information, please 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, 2021, 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.
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, (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. "Company Share of Core FFO" reflects Core FFO
attributable to common stockholders, which excludes amounts
allocable to noncontrolling interests, participating securities and
preferred stockholders.
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 2022 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.
|
2022
Estimate
|
|
Low
|
|
High
|
Net income
attributable to common stockholders
|
$
0.88
|
|
$
0.90
|
Company share of
depreciation and amortization
|
1.09
|
|
1.09
|
Company share of gains
on sale of real estate
|
(0.05)
|
|
(0.05)
|
Company share of
FFO
|
$
1.92
|
|
$
1.94
|
Add: Core FFO
adjustments(1)
|
0.01
|
|
0.01
|
Company share of
Core FFO
|
$
1.93
|
|
$
1.95
|
|
|
(1)
|
Core FFO adjustments
consist of (i) acquisition expenses, (ii) loss on extinguishment of
debt and (iii) the amortization of the loss on termination of
interest rate swaps.
|
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 2022 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, 2021 through
September 30, 2022, and excludes properties that were acquired
or sold during the period from January 1,
2021 through September 30, 2022, and properties
acquired prior to January 1, 2021,
that were classified as current or future repositioning,
redevelopment or lease-up during 2021 or 2022 (unless otherwise
noted), which we believe significantly affected the properties'
results during the comparative periods. As of September 30,
2022, our 2022 Same Property Portfolio consists of 224 properties
aggregating 28,581,460 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 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: As of
September 30, 2022, we had consolidated indebtedness of
$1.9 billion, reflecting a net debt
to enterprise value of approximately 15.9%. 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:
Aric Chang
Senior Vice President, Investor Relations and Capital Markets
310.734.6952
achang@rexfordindustrial.com
Rexford Industrial
Realty, Inc.
Consolidated Balance
Sheets
(In thousands except
share data)
|
|
|
September 30,
2022
|
|
December 31,
2021
|
|
(unaudited)
|
|
|
ASSETS
|
|
|
|
Land
|
$
5,559,795
|
|
$
4,143,021
|
Buildings and
improvements
|
3,275,572
|
|
2,588,836
|
Tenant
improvements
|
141,413
|
|
127,708
|
Furniture, fixtures,
and equipment
|
132
|
|
132
|
Construction in
progress
|
88,545
|
|
71,375
|
Total real estate held
for investment
|
9,065,457
|
|
6,931,072
|
Accumulated
depreciation
|
(576,004)
|
|
(473,382)
|
Investments in real
estate, net
|
8,489,453
|
|
6,457,690
|
Cash and cash
equivalents
|
37,141
|
|
43,987
|
Restricted
cash
|
—
|
|
11
|
Rents and other
receivables, net
|
12,592
|
|
11,027
|
Deferred rent
receivable, net
|
81,867
|
|
61,511
|
Deferred leasing
costs, net
|
42,758
|
|
32,940
|
Deferred loan costs,
net
|
5,184
|
|
1,961
|
Acquired lease
intangible assets, net
|
175,913
|
|
132,158
|
Acquired
indefinite-lived intangible
|
5,156
|
|
5,156
|
Interest rate swap
asset
|
12,565
|
|
—
|
Other
assets
|
27,868
|
|
19,066
|
Acquisition related
deposits
|
8,200
|
|
8,445
|
Assets associated with
real estate held for sale, net
|
—
|
|
7,213
|
Total
Assets
|
$
8,898,697
|
|
$
6,781,165
|
LIABILITIES &
EQUITY
|
|
|
|
Liabilities
|
|
|
|
Notes
payable
|
$
1,934,082
|
|
$
1,399,565
|
Interest rate swap
liability
|
—
|
|
7,482
|
Accounts payable,
accrued expenses and other liabilities
|
113,770
|
|
65,833
|
Dividends and
distributions payable
|
59,926
|
|
40,143
|
Acquired lease
intangible liabilities, net
|
154,851
|
|
127,017
|
Tenant security
deposits
|
69,756
|
|
57,370
|
Prepaid
rents
|
19,992
|
|
15,829
|
Liabilities associated
with real estate held for sale
|
—
|
|
231
|
Total
Liabilities
|
2,352,377
|
|
1,713,470
|
Equity
|
|
|
|
Rexford Industrial
Realty, Inc. stockholders' equity
|
|
|
|
Preferred stock, $0.01
par value per share, 10,050,000 shares authorized:
|
|
|
|
5.875%
series B cumulative redeemable preferred
stock, 3,000,000 shares
outstanding at September 30, 2022 and December 31, 2021
($75,000 liquidation preference)
|
72,443
|
|
72,443
|
5.625%
series C cumulative redeemable preferred
stock, 3,450,000 shares
outstanding at September 30, 2022 and December 31, 2021
($86,250 liquidation preference)
|
83,233
|
|
83,233
|
Common Stock,$ 0.01
par value per share, 489,950,000 authorized and
182,576,706 and 160,511,482 shares outstanding at
September 30, 2022 and December 31, 2021,
respectively
|
1,826
|
|
1,605
|
Additional paid in
capital
|
6,254,853
|
|
4,828,292
|
Cumulative
distributions in excess of earnings
|
(237,135)
|
|
(191,120)
|
Accumulated other
comprehensive loss
|
9,223
|
|
(9,874)
|
Total stockholders'
equity
|
6,184,443
|
|
4,784,579
|
Noncontrolling
interests
|
361,877
|
|
283,116
|
Total
Equity
|
6,546,320
|
|
5,067,695
|
Total Liabilities
and Equity
|
$
8,898,697
|
|
$
6,781,165
|
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,
|
|
2022
|
|
2021
|
|
2022
|
|
2021
|
REVENUES
|
|
|
|
|
|
|
|
Rental
income
|
$
162,581
|
|
$
115,260
|
|
$
452,156
|
|
$
319,140
|
Management and leasing
services
|
163
|
|
136
|
|
456
|
|
350
|
Interest
income
|
3
|
|
7
|
|
5
|
|
36
|
TOTAL
REVENUES
|
162,747
|
|
115,403
|
|
452,617
|
|
319,526
|
OPERATING
EXPENSES
|
|
|
|
|
|
|
|
Property
expenses
|
39,614
|
|
27,501
|
|
108,448
|
|
75,631
|
General and
administrative
|
14,951
|
|
11,806
|
|
44,531
|
|
33,981
|
Depreciation and
amortization
|
51,146
|
|
38,676
|
|
140,226
|
|
110,048
|
TOTAL OPERATING
EXPENSES
|
105,711
|
|
77,983
|
|
293,205
|
|
219,660
|
OTHER
EXPENSES
|
|
|
|
|
|
|
|
Other
expenses(1)
|
413
|
|
4
|
|
746
|
|
35
|
Interest
expense
|
14,975
|
|
10,427
|
|
34,826
|
|
29,772
|
TOTAL
EXPENSES
|
121,099
|
|
88,414
|
|
328,777
|
|
249,467
|
Loss on extinguishment
of debt
|
—
|
|
(505)
|
|
(877)
|
|
(505)
|
Gains on sale of real
estate
|
—
|
|
13,702
|
|
8,486
|
|
27,312
|
NET
INCOME
|
41,648
|
|
40,186
|
|
131,449
|
|
96,866
|
Less: net income
attributable to noncontrolling interests
|
(2,368)
|
|
(2,173)
|
|
(7,142)
|
|
(5,852)
|
NET INCOME
ATTRIBUTABLE TO REXFORD INDUSTRIAL REALTY, INC.
|
39,280
|
|
38,013
|
|
124,307
|
|
91,014
|
Less: preferred stock
dividends
|
(2,314)
|
|
(2,976)
|
|
(6,943)
|
|
(10,249)
|
Less: original
issuance costs of redeemed preferred stock
|
—
|
|
(3,349)
|
|
—
|
|
(3,349)
|
Less: earnings
attributable to participating securities
|
(201)
|
|
(143)
|
|
(605)
|
|
(423)
|
NET INCOME
ATTRIBUTABLE TO COMMON STOCKHOLDERS
|
$
36,765
|
|
$
31,545
|
|
$
116,759
|
|
$
76,993
|
Net income
attributable to common stockholders per share – basic
|
$
0.21
|
|
$
0.23
|
|
$
0.70
|
|
$
0.57
|
Net income
attributable to common stockholders per share – diluted
|
$
0.21
|
|
$
0.23
|
|
$
0.70
|
|
$
0.57
|
Weighted-average
shares of common stock outstanding – basic
|
171,909
|
|
138,762
|
|
165,852
|
|
134,922
|
Weighted-average
shares of common stock outstanding – diluted
|
172,831
|
|
139,630
|
|
166,401
|
|
135,429
|
|
|
(1)
|
Acquisition expenses
for the three and nine months ended September 30, 2021, have been
reclassified to "Other expenses" to conform to the current period
presentation.
|
Rexford Industrial
Realty, Inc.
Same Property
Portfolio Occupancy and NOI and Cash NOI
(Unaudited, dollars
in thousands)
|
|
Same Property
Portfolio Occupancy:
|
|
September
30,
|
|
|
|
2022
|
|
2021
|
|
Change (basis
points)
|
Quarterly Weighted
Average Occupancy:(1)
|
|
|
|
|
|
Los Angeles
County
|
99.1 %
|
|
98.6 %
|
|
50 bps
|
Orange
County
|
98.8 %
|
|
98.9 %
|
|
(10) bps
|
Riverside / San
Bernardino County
|
96.5 %
|
|
99.1 %
|
|
(260) bps
|
San Diego
County
|
98.9 %
|
|
98.3 %
|
|
60 bps
|
Ventura
County
|
99.2 %
|
|
97.3 %
|
|
190 bps
|
Same Property
Portfolio Weighted Average Occupancy
|
98.6 %
|
|
98.6 %
|
|
— bps
|
|
|
|
|
|
|
Ending
Occupancy:
|
98.4 %
|
|
98.8 %
|
|
(40) bps
|
|
|
(1)
|
Calculated by averaging
the occupancy rate at the end of each month in 3Q-2022 and June
2022 (for 3Q-2022) and the end of each month in 3Q-2021 and June
2021 (for 3Q-2021).
|
Same Property
Portfolio NOI and Cash NOI:
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
September 30,
|
|
Nine Months Ended
September 30,
|
|
2022
|
|
2021
|
|
$
Change
|
|
%
Change
|
|
2022
|
|
2021
|
|
$
Change
|
|
%
Change
|
Rental
income
|
$ 103,463
|
|
$
96,156
|
|
$ 7,307
|
|
7.6 %
|
|
$
305,883
|
|
$
282,791
|
|
$
23,092
|
|
8.2 %
|
Property
expenses
|
24,286
|
|
22,320
|
|
1,966
|
|
8.8 %
|
|
72,278
|
|
65,321
|
|
6,957
|
|
10.7 %
|
Same Property
Portfolio NOI
|
$
79,177
|
|
$
73,836
|
|
$ 5,341
|
|
7.2 %
|
|
$
233,605
|
|
$
217,470
|
|
$
16,135
|
|
7.4 %
|
Straight line rental
revenue adjustment
|
(2,329)
|
|
(3,137)
|
|
808
|
|
(25.8) %
|
|
(8,251)
|
|
(10,864)
|
|
2,613
|
|
(24.1) %
|
Amortization of
above/below market lease intangibles
|
(1,527)
|
|
(2,018)
|
|
491
|
|
(24.3) %
|
|
(4,734)
|
|
(6,907)
|
|
2,173
|
|
(31.5) %
|
Same Property
Portfolio Cash NOI
|
$
75,321
|
|
$
68,681
|
|
$ 6,640
|
|
9.7 %
|
|
$
220,620
|
|
$
199,699
|
|
$
20,921
|
|
10.5 %
|
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,
|
|
2022
|
|
2021
|
|
2022
|
|
2021
|
Net income
|
$
41,648
|
|
$
40,186
|
|
$
131,449
|
|
$
96,866
|
Add:
|
|
|
|
|
|
|
|
General and
administrative
|
14,951
|
|
11,806
|
|
44,531
|
|
33,981
|
Depreciation and
amortization
|
51,146
|
|
38,676
|
|
140,226
|
|
110,048
|
Other
expenses
|
413
|
|
4
|
|
746
|
|
35
|
Interest
expense
|
14,975
|
|
10,427
|
|
34,826
|
|
29,772
|
Loss on extinguishment
of debt
|
—
|
|
505
|
|
877
|
|
505
|
Deduct:
|
|
|
|
|
|
|
|
Management, leasing
and development services
|
163
|
|
136
|
|
456
|
|
350
|
Interest
income
|
3
|
|
7
|
|
5
|
|
36
|
Gain on sale of real
estate
|
—
|
|
13,702
|
|
8,486
|
|
27,312
|
Net operating income
(NOI)
|
$
122,967
|
|
$
87,759
|
|
$
343,708
|
|
$
243,509
|
Straight line rental
revenue adjustment
|
(8,411)
|
|
(5,865)
|
|
(23,753)
|
|
(14,904)
|
Amortization of
above/below market lease intangibles
|
(7,033)
|
|
(3,191)
|
|
(18,250)
|
|
(9,289)
|
Cash NOI
|
$
107,523
|
|
$
78,703
|
|
$
301,705
|
|
$
219,316
|
|
|
|
|
|
|
|
|
NOI
|
$
122,967
|
|
$
87,759
|
|
$
343,708
|
|
$
243,509
|
Non-Same Property
Portfolio rental income
|
(59,118)
|
|
(19,104)
|
|
(146,273)
|
|
(36,349)
|
Non-Same Property
Portfolio property expenses
|
15,328
|
|
5,181
|
|
36,170
|
|
10,310
|
Same Property Portfolio
NOI
|
$
79,177
|
|
$
73,836
|
|
$
233,605
|
|
$
217,470
|
Straight line rental
revenue adjustment
|
(2,329)
|
|
(3,137)
|
|
(8,251)
|
|
(10,864)
|
Amortization of
above/below market lease intangibles
|
(1,527)
|
|
(2,018)
|
|
(4,734)
|
|
(6,907)
|
Same Property Portfolio
Cash NOI
|
$
75,321
|
|
$
68,681
|
|
$
220,620
|
|
$
199,699
|
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
September 30,
|
|
Nine Months
Ended
September 30,
|
|
2022
|
|
2021
|
|
2022
|
|
2021
|
Net
income
|
$
41,648
|
|
$
40,186
|
|
$
131,449
|
|
$
96,866
|
Add:
|
|
|
|
|
|
|
|
Depreciation and
amortization
|
51,146
|
|
38,676
|
|
140,226
|
|
110,048
|
Deduct:
|
|
|
|
|
|
|
|
Gain on sale of real
estate
|
—
|
|
13,702
|
|
8,486
|
|
27,312
|
Funds From
Operations (FFO)
|
$
92,794
|
|
$
65,160
|
|
$
263,189
|
|
$
179,602
|
Less: preferred stock
dividends
|
(2,314)
|
|
(2,976)
|
|
(6,943)
|
|
(10,249)
|
Less: original
issuance costs of redeemed preferred stock
|
—
|
|
(3,349)
|
|
—
|
|
(3,349)
|
Less: FFO attributable
to noncontrolling interests(1)
|
(4,454)
|
|
(3,277)
|
|
(12,372)
|
|
(9,667)
|
Less: FFO attributable
to participating securities(2)
|
(306)
|
|
(223)
|
|
(909)
|
|
(656)
|
Company share of
FFO
|
$
85,720
|
|
$
55,335
|
|
$
242,965
|
|
$
155,681
|
|
|
|
|
|
|
|
|
Company Share of FFO
per common share – basic
|
$
0.50
|
|
$
0.40
|
|
$
1.46
|
|
$
1.15
|
Company Share of FFO
per common share – diluted
|
$
0.50
|
|
$
0.40
|
|
$
1.46
|
|
$
1.15
|
|
|
|
|
|
|
|
|
FFO
|
$
92,794
|
|
$
65,160
|
|
$
263,189
|
|
$
179,602
|
Adjust:
|
|
|
|
|
|
|
|
Acquisition
expenses
|
359
|
|
4
|
|
451
|
|
35
|
Loss on extinguishment
of debt
|
—
|
|
505
|
|
877
|
|
505
|
Amortization of loss
on termination of interest rate swaps
|
59
|
|
615
|
|
194
|
|
1,435
|
Core
FFO
|
$
93,212
|
|
$
66,284
|
|
$
264,711
|
|
$
181,577
|
Less: preferred stock
dividends
|
(2,314)
|
|
(2,976)
|
|
(6,943)
|
|
(10,249)
|
Less: Core FFO
attributable to noncontrolling interest(1)
|
(4,471)
|
|
(3,475)
|
|
(12,433)
|
|
(9,905)
|
Less: Core FFO
attributable to participating securities(2)
|
(307)
|
|
(241)
|
|
(914)
|
|
(678)
|
Company share of
Core FFO
|
$
86,120
|
|
$
59,592
|
|
$
244,421
|
|
$
160,745
|
|
|
|
|
|
|
|
|
Company share of Core
FFO per common share – basic
|
$
0.50
|
|
$
0.43
|
|
$
1.47
|
|
$
1.19
|
Company share of Core
FFO per common share – diluted
|
$
0.50
|
|
$
0.43
|
|
$
1.47
|
|
$
1.19
|
|
|
|
|
|
|
|
|
Weighted-average shares
of common stock outstanding – basic
|
171,909
|
|
138,762
|
|
165,852
|
|
134,922
|
Weighted-average shares
of common stock outstanding – diluted
|
172,831
|
|
139,630
|
|
166,401
|
|
135,429
|
|
|
(1)
|
Noncontrolling
interests relate to interests in the Company's operating
partnership, represented by common units and preferred units
(Series 1, 2 & 3 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-2022-financial-results-301654072.html
SOURCE Rexford Industrial Realty, Inc.