LOS ANGELES, Feb. 11, 2020 /PRNewswire/ -- Rexford
Industrial Realty, Inc. (the "Company" or "Rexford Industrial")
(NYSE: REXR), a real estate investment trust ("REIT") focused on
creating value by investing in and operating industrial properties
in Southern California infill
markets, today announced financial and operating results for the
fourth quarter and full year 2019.
Fourth Quarter 2019 Financial and Operational
Highlights:
- Net income attributable to common stockholders of $0.18 per diluted share compared to $0.13 per diluted share for the fourth quarter of
last year.
- Company share of Core FFO increased 31.4% to $35.8 million year-over-year.
- Company share of Core FFO per diluted share increased 10.3% to
$0.32 per diluted share
year-over-year.
- Consolidated Portfolio Net Operating Income (NOI) of
$55.9 million, an increase of 31.5%
year-over-year.
- Consolidated Portfolio Cash NOI of $51.5
million, representing an increase of 30.7%
year-over-year.
- Same Property Portfolio GAAP and Cash NOI increased 5.5% and
7.2%, respectively, year-over-year.
- Stabilized Same Property Portfolio GAAP and Cash NOI increased
4.1% and 5.1%, respectively, year-over-year.
- Comparable rental rates on 1,461,431 rentable square feet of
new and renewal leases were 42.0% higher than prior rents on a GAAP
basis and 27.1% higher on a cash basis.
- Acquired ten industrial properties for an aggregate purchase
price of $258.1 million.
Full Year 2019 Financial and Operational Highlights:
- Net income attributable to common stockholders of $0.47 per diluted share compared to $0.41 per diluted share for the full year
2018.
- Company share of Core FFO increased 34.3% to $131.1 million year-over-year.
- Company share of Core FFO per diluted share increased 9.8% to
$1.23 per diluted share
year-over-year
- At December 31, 2019, the
Stabilized Same Property Portfolio occupancy was 97.6% and the Same
Property Portfolio occupancy, inclusive of assets in value-add
repositioning, was 97.4%.
- At December 31, 2019, the
consolidated portfolio, excluding approximately 0.5 million
rentable square feet of repositioning assets, was 98.0% leased and
97.9% occupied and the consolidated portfolio, inclusive of such
repositioning assets, was 96.3% leased and 96.1% occupied.
- Acquired 40 industrial properties for an aggregate purchase
price of $970.7 million.
- Year-end Company leverage measured by a debt-to-enterprise
value ratio of 12.3%.
- The Company increased its 2020 quarterly dividend by 16.2% to
$0.215 per share.
"We'd like to thank the entire Rexford Industrial team for their
extraordinary focus and dedication resulting in our exceptional
fourth quarter and full year 2019 results. We achieved Core FFO
growth of 31.4% for the fourth quarter 2019 and 34.3% for the full
year 2019, driven by, among other factors: a) robust tenant demand
enabling fourth quarter GAAP and cash re-leasing spreads of 42.0%
and 27.1%, respectively, b) completion of 876,131 square feet of
repositioning projects generating an aggregate 8.1% stabilized
unlevered yield on cost, and c) the completion of 34 investments
for an aggregate purchase price of $970.7
million, representing a 24.7% increase in portfolio square
footage," stated Michael Frankel and
Howard Schwimmer, Co-Chief Executive
Officers of the Company. "We generated an increase in Core FFO per
share of 10.3% and 9.8%, respectively, for the quarter and full
year, while maintaining a fortress-like, low-leverage balance sheet
that ended the year at a debt-to-enterprise value ratio of
12.3%. Our sustained growth enabled us to increase our
quarterly dividend by 16.2%, representing a total increase in our
dividend of 79.2% since our 2013 initial public offering.
Looking forward, we couldn't be more excited at the quality of
internal and external growth opportunities before us as we remain
focused on creating value for shareholders by investing in and
improving industrial property throughout infill Southern California's highly-sought-after
industrial property markets."
Financial Results:
The Company reported net income attributable to common
stockholders of $19.9 million, or
$0.18 per diluted share, for the
three months ended December 31, 2019, as compared to net
income attributable to common stockholders of $12.4 million, or $0.13 per diluted share, for the three months
ended December 31, 2018.
The Company reported net income attributable to common
stockholders of $50.5 million, or
$0.47 per diluted share, for the year
ended December 31, 2019, as compared to net income
attributable to common stockholders of $36.1
million, or $0.41 per diluted
share, for the year ended December 31, 2018. Net income for
the year ended December 31, 2019, includes $16.3 million of gains on sale of real estate, as
compared to $17.2 million for the
year ended December 31, 2018.
The Company reported Company share of Core FFO of $35.8 million, or $0.32 per diluted share of common stock, for the
three months ended December 31, 2019, as compared to Company
share of Core FFO of $27.2 million,
or $0.29 per diluted share of common
stock, for the three months ended December 31, 2018.
Amounts are adjusted for non-core expenses of $(3) thousand for the three months ended
December 31, 2019, and $0.2
million for the three months ended December 31,
2018.
The Company reported Company share of Core FFO of $131.1 million, or $1.23 per diluted share of common stock, for the
year ended December 31, 2019, as compared to Company share of
Core FFO of $97.6 million, or
$1.12 per diluted share of common
stock, for the year ended December 31, 2018. Amounts are
adjusted for non-core expenses of $0.2
million for the year ended December 31, 2019, and
$0.3 million for the year ended
December 31, 2018.
For the three months ended December 31, 2019, the Company's
consolidated portfolio NOI increased 31.5% compared to the three
months ended December 31, 2018, and the Company's consolidated
portfolio Cash NOI increased 30.7% compared to the three months
ended December 31, 2018.
For the year ended December 31, 2019, the Company's
consolidated portfolio NOI increased 26.4% compared to the year
ended December 31, 2018, and the Company's consolidated
portfolio Cash NOI increased 26.6% compared to the year ended
December 31, 2018.
For the three months ended December 31, 2019, the Company's
Same Property Portfolio NOI increased 5.5% compared to the fourth
quarter of 2018, driven by a 6.7% increase in Same Property
Portfolio rental income and a 10.5% increase in Same Property
Portfolio expenses, driven in part by unfavorable supplemental
property tax adjustments recorded in the fourth quarter of 2019 as
compared to favorable supplemental property tax adjustments
recorded in the fourth quarter of 2018. Same Property
Portfolio Cash NOI increased 7.2% compared to the fourth quarter of
2018. Stabilized Same Property Portfolio NOI increased 4.1%
in the fourth quarter of 2019 compared to the fourth quarter of
2018 and Stabilized Same Property Portfolio Cash NOI increased 5.1%
in the fourth quarter of 2019 compared to the fourth quarter of
2018.
For the year ended December 31, 2019, the Company's Same
Property Portfolio NOI increased 6.2% compared to the year ended
December 31, 2018, driven by a 5.7% increase in Same Property
Portfolio rental income and a 3.9% increase in Same Property
Portfolio expenses. Same Property Portfolio Cash NOI
increased 8.7% compared to the year ended December 31,
2018. Stabilized Same Property Portfolio NOI increased 3.7%
during the year ended December 31, 2019, compared to the year
ended December 31, 2018, and Stabilized Same Property
Portfolio Cash NOI increased 6.1% during the year ended
December 31, 2019, compared to the year ended
December 31, 2018.
Operating Results:
During the fourth quarter of 2019, the Company signed 115 new
and renewal leases totaling 1,461,431 rentable square feet.
Average rental rates on comparable new and renewal leases were up
42.0% on a GAAP basis and up 27.1% on a cash basis. The Company
signed 49 new leases for 439,138 rentable square feet, with GAAP
rents up 63.0% compared to the prior in-place leases. The Company
signed 66 renewal leases for 1,022,293 rentable square feet, with
GAAP rents up 37.5% compared to the prior in-place leases. For the
49 new leases, cash rents increased 43.3%, and for the 66 renewal
leases, cash rents were up 23.5%, compared to the ending cash rents
for the prior leases.
At December 31, 2019, the Stabilized Same Property
Portfolio occupancy was 97.6% and the Same Property Portfolio
occupancy, including value-add repositioning assets, was
97.4%. At December 31, 2019, the Company's consolidated
portfolio, excluding value-add repositioning assets, was 97.9%
occupied and the Company's consolidated portfolio, including
value-add repositioning assets, was 96.1% occupied.
The Company has included in a supplemental information package
the detailed results and operating statistics that reflect the
activities of the Company for the three months ended
December 31, 2019. See below for information regarding the
supplemental information package.
Transaction Activity:
In the fourth quarter 2019, the Company acquired 10 properties,
for an aggregate purchase price of $258.1
million, as detailed below. Additionally, the Company
sold two properties for an aggregate sale price of $20.8 million.
In October 2019, the Company
acquired:
- Slauson Commerce Center/6277-6289 E. Slauson Avenue, a 98%
leased industrial complex containing 336,085 square feet on 10.51
acres of land, located in the Central Los
Angeles submarket, for $41.3
million or $123 per square
foot.
- 750 W. Manville Street, a 100%
leased single-tenant industrial building containing 59,996 square
feet on 2.76 acres of land, located in the Los Angeles - South Bay submarket, for
$11.5 million, or $192 per square foot.
- 8985 Crestmar Point, an 88% leased two-tenant industrial
building containing 55,816 square feet on 3.42 acres of land,
located in the Central San Diego
submarket, for $8.0 million, or
$143 per square foot.
In November 2019, the Company
acquired:
- 404-430 Berry Way, a 100% leased
three-building industrial complex containing 120,250 square feet on
11.79 acres of land, located in the North
Orange County submarket, for $27.6
million, or $54 per land
square foot.
- 415 South Motor Avenue, a 4.2 acre land parcel, located in the
Los Angeles - San Gabriel Valley
submarket, for $7.2 million, or
$39 per land square foot.
- 508 East E Street, a 100% leased three-tenant industrial
building containing 57,522 square feet on 3.45 acres of land,
located in the Los Angeles - South
Bay submarket, for $14.89 million, or
$259 per square foot.
- 12752-12822 Monarch Street, a 93% leased two-building
industrial complex containing 276,585 square feet on 11.1 acres of
land, located in the West Orange County submarket, for $34.0 million or $123 per square foot.
In December 2019, the Company
acquired:
- Pomona Distribution Center/1601 Mission Boulevard, a 100%
leased two-tenant industrial building containing 751,528 square
feet on 32.2 acres of land, located in the Los Angeles - San Gabriel Valley submarket,
for $87.8 million or $117 per square foot.
- 2757 E. Del Amo Boulevard, a 100% leased single tenant
industrial building containing 57,300 square feet on 3.48 acres of
land, located in the Los Angeles -
South Bay submarket, for $11.9
million or $208 per square
foot.
- 18250 Euclid Street, a 100% leased single tenant industrial
building containing 62,838 square feet on 3.54 acres of land,
located in the West Orange County submarket, for $14.0 million or $223 per square foot.
In October, the Company sold 13914-13928 East Valley Boulevard,
a 100% leased multi-tenant industrial park containing 58,084 square
feet, located in the Los Angeles -
San Gabriel Valley submarket, for $11.2
million, or $192 per square
foot.
In December, the Company sold Eastman Business Park, an 89%
leased multi-tenant industrial park containing 55,321 square feet,
located in the Ventura County
submarket for $9.6 million, or
$173 per square foot.
Balance Sheet:
During the quarter ended December 31, 2019, the Company
issued 2,972,129 shares of common stock under its at-the-market
equity offering program (ATM program). The shares were issued at a
weighted average price of $46.77 per
share, providing gross proceeds of approximately $139.0 million and net proceeds of approximately
$136.9 million. As of
December 31, 2019, the current ATM program had approximately
$344.1 million of remaining
capacity.
As of December 31, 2019, the Company had $861.0 million of outstanding debt, with an
average interest rate of 3.54% and an average term-to-maturity of
5.5 years. As of December 31, 2019, $802.5 million, or 93%, of the Company's
outstanding debt was fixed-rate with an average interest rate of
3.55% and an average term-to-maturity of 5.7 years. The remaining
$58.5 million, or 7%, of the
Company's outstanding debt was floating-rate, with an average
interest rate of LIBOR + 1.70% and an average term-to-maturity of
3.6 years.
Guidance
The Company is introducing its full year 2020 guidance as
follows:
- Net income attributable to common stockholders within a range
of $0.37 to $0.39 per diluted share
- Company share of Core FFO within a range of $1.30 to $1.32 per
diluted share
- Year-end Stabilized Same Property Portfolio occupancy within a
range of 96.0% to 97.0%
- Stabilized Same Property Portfolio NOI growth for the year
within a range of 3.7% to 4.2%
- General and administrative expenses within a range of
$36.5 million to $37.0 million
The Core FFO guidance refers only to the Company's in-place
portfolio as of February 11, 2020, and the pending acquisition
of a portfolio of 11 properties (the "Pending Portfolio") that is
expected to close no later than April 21,
2020 (for additional details, refer to the Company's Form
8-K that was filed with Securities and Exchange Commission on
December 23, 2019). Our guidance does
not include any assumptions for other acquisitions, dispositions or
balance sheet activities that may or may not occur through the end
of the year. A number of factors could impact the Company's ability
to deliver results in line with its guidance, including, but not
limited to, interest rates, the economy, the supply and demand of
industrial real estate, failure to satisfy the closing conditions
for the Pending Portfolio, 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.
Dividends:
On February 10, 2020, the Company's Board of Directors
declared a dividend in the amount of $0.215 per share for the first quarter of 2020,
payable in cash on April 15, 2020, to common stockholders and
common unit holders of record as of March 31, 2020. The
new divided rate represents a 16.2% increase from the prior rate of
$0.185 per share.
On February 10, 2020, the Company's Board of Directors
declared a quarterly dividend of $0.367188 per share of its Series A Cumulative
Redeemable Preferred Stock, a quarterly dividend of $0.367188 per share of its Series B Cumulative
Redeemable Preferred Stock and a quarterly dividend of $0.351563 per share of its Series C Cumulative
Redeemable Preferred Stock, in each case, payable in cash on
March 31, 2020, to preferred stockholders of record as of
March 13, 2020.
Supplemental Information:
Details regarding these results can be found in the Company's
supplemental financial package available on the Company's investor
relations website at ir.rexfordindustrial.com.
Earnings Release, Investor Conference Webcast and Conference
Call:
The Company will host a webcast and conference call on
Wednesday, February 12, 2020, at
1:00 p.m. Eastern Time to review
fourth quarter results and discuss recent events. The live webcast
will be available on the Company's investor relations website at
ir.rexfordindustrial.com. To participate in the call, please dial
877-407-0789 (domestic) or 201-689-8562 (international). A replay
of the conference call will be available through March 12, 2020, by dialing 844-512-2921
(domestic) or 412-317-6671 (international) and entering the pass
code 13698187.
About Rexford Industrial:
Rexford Industrial, a real estate investment trust focused on
owning and operating industrial properties throughout Southern California infill markets, owns 213
properties with approximately 26.6 million rentable square feet and
manages an additional 19 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, 2018, and
subsequent 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, impairment losses, real estate related depreciation and
amortization (excluding amortization of deferred financing costs)
and after adjustments for unconsolidated partnerships and 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 acquisition expenses. 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 2020 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.
|
2020
Estimate
|
|
Low
|
|
High
|
Net income
attributable to common stockholders
|
$
|
0.37
|
|
|
$
|
0.39
|
|
Company share of
depreciation and amortization
|
$
|
0.93
|
|
|
$
|
0.93
|
|
Company share of
Core FFO
|
$
|
1.30
|
|
|
$
|
1.32
|
|
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 and Stabilized 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 and 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 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 and Stabilized 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 as of January
1, 2018, and still owned by us as of December 31, 2019.
Therefore, we excluded from our Same Property Portfolio any
properties that were acquired or sold during the period from
January 1, 2018 through
December 31, 2019. The Company's computation of same property
performance may not be comparable to other REITs.
Stabilized Same Property Portfolio: Our Stabilized Same
Property Portfolio represents the properties included in our Same
Property Portfolio, adjusted to exclude the properties listed in
the table below that were under repositioning/lease-up during
comparable years.
Stabilized Same Property Portfolio occupancy/leasing statistics
excludes vacant/unleased repositioning space at each of these
properties as of the end of each reporting period. Stabilized Same
Property Portfolio NOI excludes the NOI for the entire property for
all comparable periods.
Our 2019 Stabilized Same Property Portfolio excludes the
following Same Property Portfolio properties that were in various
stages of repositioning or lease-up during 2018 and 2019:
14748-14750 Nelson
Avenue
|
|
301-445 Figueroa
Street
|
15401 Figueroa
Street
|
|
3233 Mission Oaks
Boulevard
|
1601 Alton
Parkway
|
|
7110 E. Rosecrans
Avenue
|
2700-2722 Fairview
Street
|
|
9615 Norwalk
Boulevard
|
28903 Avenue
Paine
|
|
|
As of December 31, 2019, the difference between our 2019
Same Property Portfolio and our 2019 Stabilized Same Property
Portfolio is 37,417 rentable square feet of space at one of our
properties that was classified as repositioning or lease-up.
As of December 31, 2018, the difference between our 2019
Same Property Portfolio and our 2019 Stabilized Same Property
Portfolio is space aggregating 247,615 rentable square feet at five
of our properties that were in various stages of repositioning or
lease-up.
Our 2020 Stabilized Same Property Portfolio is a subset of our
consolidated portfolio and includes properties that were wholly
owned by us for the period from January 1,
2019 through February 11, 2020, and that were
stabilized as of January 1,
2019. Therefore, our 2020 Stabilized Same Property Portfolio
excludes the properties listed below that were or will be
classified as repositioning (current and future) or lease-up during
2019 and 2020. As of January 1,
2020, our 2020 Stabilized Same Property Portfolio consists
of 160 properties aggregating 19,791,344 rentable square feet.
1210 N. Red Gum
Street
|
|
2700-2722 Fairview
Street
|
1332-1340 Rocky Point
Drive
|
|
28903 Avenue
Paine
|
14748-14750 Nelson
Avenue
|
|
29003 Avenue
Sherman
|
15401 Figueroa
Street
|
|
3233 Mission Oaks
Boulevard
|
1580 Carson
Street
|
|
7110 E. Rosecrans
Avenue
|
16121 Carmenita
Road
|
|
851 Lawrence
Drive
|
1998 Surveyor
Avenue
|
|
9615 Norwalk
Boulevard
|
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.
We define a significant amount of space at a property as the lower
of (i) 35,000 square feet of space or (ii) 50% of a property's
square footage. Typically, we would include properties or
space where the repositioning and lease-up time frame is estimated
to be greater than six months. 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. We look to update this
definition on an annual basis based on the growth and size of the
Company's consolidated portfolio.
Contact:
Investor Relations:
Stephen Swett
424-256-2153 ext 401
investorrelations@rexfordindustrial.com
Rexford Industrial
Realty, Inc.
|
Consolidated Balance
Sheets
|
(In thousands except
share data)
|
|
|
December 31,
2019
|
|
December 31,
2018
|
|
(unaudited)
|
|
|
ASSETS
|
|
|
|
Land
|
$
|
1,927,098
|
|
|
$
|
1,298,957
|
|
Buildings and
improvements
|
1,680,178
|
|
|
1,332,438
|
|
Tenant
improvements
|
72,179
|
|
|
60,024
|
|
Furniture, fixtures,
and equipment
|
141
|
|
|
149
|
|
Construction in
progress
|
18,794
|
|
|
24,515
|
|
Total real estate
held for investment
|
3,698,390
|
|
|
2,716,083
|
|
Accumulated
depreciation
|
(296,777)
|
|
|
(228,742)
|
|
Investments in real
estate, net
|
3,401,613
|
|
|
2,487,341
|
|
Cash and cash
equivalents
|
78,857
|
|
|
180,601
|
|
Rents and other
receivables, net
|
5,889
|
|
|
4,944
|
|
Deferred rent
receivable, net
|
29,671
|
|
|
22,228
|
|
Deferred leasing
costs, net
|
18,688
|
|
|
14,002
|
|
Deferred loan costs,
net
|
695
|
|
|
1,312
|
|
Acquired lease
intangible assets, net
|
73,090
|
|
|
55,683
|
|
Acquired
indefinite-lived intangible
|
5,156
|
|
|
5,156
|
|
Interest rate swap
asset
|
766
|
|
|
8,770
|
|
Other
assets
|
9,671
|
|
|
6,723
|
|
Acquisition related
deposits
|
14,526
|
|
|
925
|
|
Total
Assets
|
$
|
3,638,622
|
|
|
$
|
2,787,685
|
|
LIABILITIES &
EQUITY
|
|
|
|
Liabilities
|
|
|
|
Notes
payable
|
$
|
857,842
|
|
|
$
|
757,371
|
|
Interest rate swap
liability
|
8,488
|
|
|
2,351
|
|
Accounts payable,
accrued expenses and other liabilities
|
31,112
|
|
|
21,074
|
|
Dividends
payable
|
21,624
|
|
|
15,938
|
|
Acquired lease
intangible liabilities, net
|
59,340
|
|
|
52,727
|
|
Tenant security
deposits
|
28,779
|
|
|
23,262
|
|
Prepaid
rents
|
8,988
|
|
|
6,539
|
|
Total
Liabilities
|
1,016,173
|
|
|
879,262
|
|
Equity
|
|
|
|
Rexford Industrial
Realty, Inc. stockholders' equity
|
|
|
|
Preferred stock,
$0.01 par value per share, 10,050,000 and 10,000,000 shares
authorized, at December 31, 2019 and December 31, 2018,
respectively
|
|
|
|
5.875% series A
cumulative redeemable preferred stock, 3,600,000 shares outstanding
at December 31, 2019 and December 31, 2018 ($90,000 liquidation
preference)
|
86,651
|
|
|
86,651
|
|
5.875% series B
cumulative redeemable preferred stock, 3,000,000 shares outstanding
at December 31, 2019 and December 31, 2018 ($75,000 liquidation
preference)
|
72,443
|
|
|
72,443
|
|
5.625% series C
cumulative redeemable preferred stock, 3,450,000 and zero shares
outstanding at December 31, 2019 and December 31, 2018,
respectively ($86,250 liquidation preference)
|
83,233
|
|
|
—
|
|
Common Stock, $0.01
par value per share, 489,950,000 and 490,000,000 authorized and
113,793,300 and 96,810,504 shares outstanding at December 31, 2019
and December 31, 2018, respectively
|
1,136
|
|
|
966
|
|
Additional paid in
capital
|
2,439,007
|
|
|
1,798,113
|
|
Cumulative
distributions in excess of earnings
|
(118,751)
|
|
|
(88,341)
|
|
Accumulated other
comprehensive income
|
(7,542)
|
|
|
6,262
|
|
Total stockholders'
equity
|
2,556,177
|
|
|
1,876,094
|
|
Noncontrolling
interests
|
66,272
|
|
|
32,329
|
|
Total
Equity
|
2,622,449
|
|
|
1,908,423
|
|
Total Liabilities
and Equity
|
$
|
3,638,622
|
|
|
$
|
2,787,685
|
|
Rexford Industrial
Realty, Inc.
|
Consolidated
Statements of Operations
|
(Unaudited and in
thousands, except per share data)
|
|
|
Three Months
Ended
December
31,
|
|
Year Ended
December 31,
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
REVENUES
|
|
|
|
|
|
|
|
Rental
income
|
74,015
|
|
|
56,125
|
|
|
264,252
|
|
|
210,643
|
|
Management, leasing
and development services
|
105
|
|
|
114
|
|
|
406
|
|
|
473
|
|
Interest
income
|
279
|
|
|
769
|
|
|
2,555
|
|
|
1,378
|
|
TOTAL
REVENUES
|
74,399
|
|
|
57,008
|
|
|
267,213
|
|
|
212,494
|
|
OPERATING
EXPENSES
|
|
|
|
|
|
|
|
Property
expenses
|
18,156
|
|
|
13,642
|
|
|
63,272
|
|
|
51,671
|
|
General and
administrative
|
8,215
|
|
|
6,297
|
|
|
30,300
|
|
|
25,194
|
|
Depreciation and
amortization
|
26,877
|
|
|
20,671
|
|
|
98,891
|
|
|
80,042
|
|
TOTAL OPERATING
EXPENSES
|
53,248
|
|
|
40,610
|
|
|
192,463
|
|
|
156,907
|
|
OTHER
EXPENSES
|
|
|
|
|
|
|
|
Acquisition
expenses
|
(3)
|
|
|
166
|
|
|
171
|
|
|
318
|
|
Interest
expense
|
7,364
|
|
|
6,656
|
|
|
26,875
|
|
|
25,416
|
|
TOTAL
EXPENSES
|
60,609
|
|
|
47,432
|
|
|
219,509
|
|
|
182,641
|
|
Gains on sale of real
estate
|
10,592
|
|
|
5,631
|
|
|
16,297
|
|
|
17,222
|
|
NET
INCOME
|
24,382
|
|
|
15,207
|
|
|
64,001
|
|
|
47,075
|
|
Less: net income
attributable to noncontrolling interest
|
(734)
|
|
|
(277)
|
|
|
(2,022)
|
|
|
(865)
|
|
NET INCOME
ATTRIBUTABLE TO REXFORD INDUSTRIAL REALTY, INC.
|
23,648
|
|
|
14,930
|
|
|
61,979
|
|
|
46,210
|
|
Less: preferred stock
dividends
|
(3,636)
|
|
|
(2,424)
|
|
|
(11,055)
|
|
|
(9,694)
|
|
Less: earnings
attributable to participating securities
|
(108)
|
|
|
(93)
|
|
|
(447)
|
|
|
(378)
|
|
NET INCOME
ATTRIBUTABLE TO COMMON STOCKHOLDERS
|
$
|
19,904
|
|
|
$
|
12,413
|
|
|
$
|
50,477
|
|
|
$
|
36,138
|
|
Net income
attributable to common stockholders per share – basic
|
$
|
0.18
|
|
|
$
|
0.13
|
|
|
$
|
0.47
|
|
|
$
|
0.42
|
|
Net income
attributable to common stockholders per share – diluted
|
$
|
0.18
|
|
|
$
|
0.13
|
|
|
$
|
0.47
|
|
|
$
|
0.41
|
|
Weighted-average
shares of common stock outstanding – basic
|
111,612
|
|
|
93,996
|
|
|
106,407
|
|
|
86,824
|
|
Weighted-average
shares of common stock outstanding – diluted
|
112,097
|
|
|
94,488
|
|
|
106,799
|
|
|
87,336
|
|
Rexford Industrial
Realty, Inc.
|
Same Property
Portfolio Occupancy and NOI and Cash NOI
|
(Unaudited, dollars
in thousands)
|
|
Same Property
Portfolio Occupancy:
|
|
|
|
|
|
|
|
December 31,
2019
|
|
December 31,
2018
|
|
Change (basis
points)
|
|
Same
Property
Portfolio
|
|
Stabilized
Same
Property
Portfolio(1)
|
|
Same
Property
Portfolio
|
|
Stabilized
Same
Property
Portfolio(2)
|
|
Same
Property
Portfolio
|
|
Stabilized
Same
Property
Portfolio
|
Occupancy:
|
|
|
|
|
|
|
|
|
|
|
|
Los Angeles
County
|
97.7%
|
|
98.1%
|
|
96.7%
|
|
97.5%
|
|
100 bps
|
|
60 bps
|
Orange
County
|
96.6%
|
|
96.6%
|
|
94.6%
|
|
97.0%
|
|
200 bps
|
|
(40) bps
|
San Bernardino
County
|
97.5%
|
|
97.5%
|
|
96.7%
|
|
96.7%
|
|
80 bps
|
|
80 bps
|
San Diego
County
|
96.1%
|
|
96.1%
|
|
98.6%
|
|
98.6%
|
|
(250) bps
|
|
(250) bps
|
Ventura
County
|
98.4%
|
|
98.4%
|
|
90.9%
|
|
97.2%
|
|
750 bps
|
|
120 bps
|
Total/Weighted
Average
|
97.4%
|
|
97.6%
|
|
96.0%
|
|
97.4%
|
|
140 bps
|
|
20 bps
|
|
|
(1)
|
Reflects the
occupancy of our Same Property Portfolio as of December 31,
2019, adjusted for 37,417 rentable square feet at one property that
was in lease-up as of December 31, 2019.
|
(2)
|
Reflects the
occupancy of our Same Property Portfolio as of December 31,
2018, adjusted for space aggregating 247,615 rentable square feet
at five properties that were in various stages of repositioning or
lease-up as of December 31, 2018.
|
Same Property
Portfolio NOI and Cash NOI
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
December 31,
|
|
Year Ended
December 31,
|
|
2019
|
|
2018
|
|
$
Change
|
|
%
Change
|
|
2019
|
|
2018
|
|
$
Change
|
|
%
Change
|
Rental
income
|
$
|
52,285
|
|
|
$
|
49,009
|
|
|
$
|
3,276
|
|
|
6.7%
|
|
$
|
203,470
|
|
|
$
|
192,577
|
|
|
$
|
10,893
|
|
|
5.7%
|
Property
expenses
|
12,986
|
|
|
11,750
|
|
|
1,236
|
|
|
10.5%
|
|
48,692
|
|
|
46,886
|
|
|
1,806
|
|
|
3.9%
|
Same Property
Portfolio NOI
|
$
|
39,299
|
|
|
$
|
37,259
|
|
|
$
|
2,040
|
|
|
5.5%
|
|
$
|
154,778
|
|
|
$
|
145,691
|
|
|
$
|
9,087
|
|
|
6.2%
|
Straight line rental
revenue adjustment
|
(792)
|
|
|
(1,053)
|
|
|
261
|
|
|
(24.8)%
|
|
(3,434)
|
|
|
(5,364)
|
|
|
1,930
|
|
|
(36.0)%
|
Amortization of
above/below market lease intangibles
|
(816)
|
|
|
(1,052)
|
|
|
236
|
|
|
(22.4)%
|
|
(3,671)
|
|
|
(4,496)
|
|
|
825
|
|
|
(18.3)%
|
Same Property
Portfolio Cash NOI
|
$
|
37,691
|
|
|
$
|
35,154
|
|
|
$
|
2,537
|
|
|
7.2%
|
|
$
|
147,673
|
|
|
$
|
135,831
|
|
|
$
|
11,842
|
|
|
8.7%
|
Rexford Industrial
Realty, Inc.
|
Reconciliation of Net
Income to NOI, Same Property Portfolio NOI, Same Property Portfolio
Cash NOI, Stabilized Same Property Portfolio NOI and Stabilized
Same Property Portfolio Cash NOI
|
(Unaudited and in
thousands)
|
|
|
Three Months
Ended
December
31,
|
|
Year Ended
December 31,
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
Net income
|
$
|
24,382
|
|
|
$
|
15,207
|
|
|
$
|
64,001
|
|
|
$
|
47,075
|
|
Add:
|
|
|
|
|
|
|
|
General and
administrative
|
8,215
|
|
|
6,297
|
|
|
30,300
|
|
|
25,194
|
|
Depreciation and
amortization
|
26,877
|
|
|
20,671
|
|
|
98,891
|
|
|
80,042
|
|
Acquisition
expenses
|
(3)
|
|
|
166
|
|
|
171
|
|
|
318
|
|
Interest
expense
|
7,364
|
|
|
6,656
|
|
|
26,875
|
|
|
25,416
|
|
Deduct:
|
|
|
|
|
|
|
|
Management, leasing
and development services
|
105
|
|
|
114
|
|
|
406
|
|
|
473
|
|
Interest
income
|
279
|
|
|
769
|
|
|
2,555
|
|
|
1,378
|
|
Gains on sale of real
estate
|
10,592
|
|
|
5,631
|
|
|
16,297
|
|
|
17,222
|
|
Net operating income
(NOI)
|
$
|
55,859
|
|
|
$
|
42,483
|
|
|
$
|
200,980
|
|
|
$
|
158,972
|
|
Non-Same Property
Portfolio rental income
|
(21,730)
|
|
|
(7,116)
|
|
|
(60,782)
|
|
|
(18,066)
|
|
Non-Same Property
Portfolio property expenses
|
5,170
|
|
|
1,892
|
|
|
14,580
|
|
|
4,785
|
|
Same Property
Portfolio NOI
|
$
|
39,299
|
|
|
$
|
37,259
|
|
|
$
|
154,778
|
|
|
$
|
145,691
|
|
Straight line rental
revenue adjustment
|
(792)
|
|
|
(1,053)
|
|
|
(3,434)
|
|
|
(5,364)
|
|
Amortization of
above/below market lease intangibles
|
(816)
|
|
|
(1,052)
|
|
|
(3,671)
|
|
|
(4,496)
|
|
Same Property
Portfolio Cash NOI
|
$
|
37,691
|
|
|
$
|
35,154
|
|
|
$
|
147,673
|
|
|
$
|
135,831
|
|
|
|
|
|
|
|
|
|
NOI (from
above)
|
$
|
55,859
|
|
|
$
|
42,483
|
|
|
$
|
200,980
|
|
|
$
|
158,972
|
|
Non-Stabilized Same
Property Portfolio rental income
|
(25,166)
|
|
|
(9,828)
|
|
|
(73,223)
|
|
|
(25,985)
|
|
Non-Stabilized Same
Property Portfolio property expenses
|
5,990
|
|
|
2,574
|
|
|
17,426
|
|
|
6,972
|
|
Stabilized Same
Property Portfolio NOI
|
$
|
36,683
|
|
|
$
|
35,229
|
|
|
$
|
145,183
|
|
|
$
|
139,959
|
|
Straight line rental
revenue adjustment
|
(519)
|
|
|
(551)
|
|
|
(2,645)
|
|
|
(4,446)
|
|
Amortization of
above/below market lease intangibles
|
(823)
|
|
|
(1,065)
|
|
|
(3,699)
|
|
|
(4,609)
|
|
Stabilized Same
Property Portfolio Cash NOI
|
$
|
35,341
|
|
|
$
|
33,613
|
|
|
$
|
138,839
|
|
|
$
|
130,904
|
|
Rexford Industrial
Realty, Inc.
|
Reconciliation of Net
Income to Funds From Operations and Core Funds From
Operations
|
(Unaudited and in
thousands, except per share data)
|
|
|
Three Months
Ended
December
31,
|
|
Year Ended
December 31,
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
Net
income
|
$
|
24,382
|
|
|
$
|
15,207
|
|
|
$
|
64,001
|
|
|
$
|
47,075
|
|
Add:
|
|
|
|
|
|
|
|
Depreciation and
amortization
|
26,877
|
|
|
20,671
|
|
|
98,891
|
|
|
80,042
|
|
Deduct:
|
|
|
|
|
|
|
|
Gains on sale of real
estate
|
10,592
|
|
|
5,631
|
|
|
16,297
|
|
|
17,222
|
|
Funds From
Operations (FFO)
|
$
|
40,667
|
|
|
$
|
30,247
|
|
|
$
|
146,595
|
|
|
$
|
109,895
|
|
Less: preferred stock
dividends
|
(3,636)
|
|
|
(2,424)
|
|
|
(11,055)
|
|
|
(9,694)
|
|
Less: FFO
attributable to noncontrolling interest(1)
|
(1,087)
|
|
|
(602)
|
|
|
(3,897)
|
|
|
(2,295)
|
|
Less: FFO
attributable to participating securities(2)
|
(188)
|
|
|
(166)
|
|
|
(733)
|
|
|
(642)
|
|
Company share of
FFO
|
$
|
35,756
|
|
|
$
|
27,055
|
|
|
$
|
130,910
|
|
|
$
|
97,264
|
|
|
|
|
|
|
|
|
|
Company Share of FFO
per common share – basic
|
$
|
0.32
|
|
|
$
|
0.29
|
|
|
$
|
1.23
|
|
|
$
|
1.12
|
|
Company Share of FFO
per common share – diluted
|
$
|
0.32
|
|
|
$
|
0.29
|
|
|
$
|
1.23
|
|
|
$
|
1.11
|
|
|
|
|
|
|
|
|
|
FFO
|
$
|
40,667
|
|
|
$
|
30,247
|
|
|
$
|
146,595
|
|
|
$
|
109,895
|
|
Adjust:
|
|
|
|
|
|
|
|
Acquisition
expenses
|
(3)
|
|
|
166
|
|
|
171
|
|
|
318
|
|
Core
FFO
|
$
|
40,664
|
|
|
$
|
30,413
|
|
|
$
|
146,766
|
|
|
$
|
110,213
|
|
Less: preferred stock
dividends
|
(3,636)
|
|
|
(2,424)
|
|
|
(11,055)
|
|
|
(9,694)
|
|
Less: Core FFO
attributable to noncontrolling interest(1)
|
(1,086)
|
|
|
(606)
|
|
|
(3,899)
|
|
|
(2,302)
|
|
Less: Core FFO
attributable to participating securities(2)
|
(188)
|
|
|
(167)
|
|
|
(733)
|
|
|
(645)
|
|
Company share of
Core FFO
|
$
|
35,754
|
|
|
$
|
27,216
|
|
|
$
|
131,079
|
|
|
$
|
97,572
|
|
|
|
|
|
|
|
|
|
Company share of Core
FFO per common share – basic
|
$
|
0.32
|
|
|
$
|
0.29
|
|
|
$
|
1.23
|
|
|
$
|
1.12
|
|
Company share of Core
FFO per common share – diluted
|
$
|
0.32
|
|
|
$
|
0.29
|
|
|
$
|
1.23
|
|
|
$
|
1.12
|
|
|
|
|
|
|
|
|
|
Weighted-average
shares of common stock outstanding – basic
|
111,612
|
|
|
93,996
|
|
|
106,407
|
|
|
86,824
|
|
Weighted-average
shares of common stock outstanding – diluted
|
112,097
|
|
|
94,488
|
|
|
106,799
|
|
|
87,336
|
|
|
|
(1)
|
Noncontrolling
interests relate to interests in the Company's operating
partnership, represented by common units and preferred units
(Series 1 CPOP units) of partnership interests in the operating
partnership that are owned by unit holders other than the
Company.
|
(2)
|
Participating
securities include unvested shares of restricted stock, unvested
LTIP units and unvested performance units.
|
View original
content:http://www.prnewswire.com/news-releases/rexford-industrial-announces-fourth-quarter-and-full-year-2019-financial-results-301003225.html
SOURCE Rexford Industrial Realty, Inc.