LOS ANGELES, April 17, 2024 /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 throughout infill Southern California, today announced financial and operating results for the first quarter of 2024. First Quarter 2024 Financial and Operational Highlights: Net income attributable to common stockholders of $58.6 million, or $0.27 per diluted share, as compared to $57.9 million, or $0.30 per diluted share, for the prior year quarter. Company share of Core FFO of $123.5 million, an increase of 20.3% as compared to the prior year quarter. Company share of Core FFO per diluted share of $0.58, an increase of 11.5% as compared to the prior year quarter. Consolidated Portfolio NOI of $163.5 million, an increase of 14.9% as compared to the prior year quarter. Same Property Portfolio NOI increased 5.5% and Same Property Portfolio Cash NOI increased 8.5% as compared to the prior year quarter. Average Same Property Portfolio occupancy of 96.8%. Comparable rental rates increased by 17.3% compared to prior rents on a GAAP basis and by 13.2% on a cash basis on 3.2 million rentable square feet of new and renewal leases. Excluding the Tireco, Inc. lease extension, comparable rental rates increased by 53.0% compared to prior rents on a GAAP basis and by 33.6% on a cash basis. Completed 3.2 million square feet of acquisitions totaling $1.1 billion. Ended the quarter with a low-leverage balance sheet measured by a net debt-to-enterprise value ratio of 20.9%. "Rexford continues to deliver exceptional value and accretive cash flow growth generated by our entrepreneurial team and value-driven strategy," stated Michael Frankel and Howard Schwimmer, Co-Chief Executive Officers of the Company. "Looking forward, Rexford is well-positioned with extensive embedded and external growth opportunities, positioning the Company to create significant value for our stakeholders for years to come." Financial Results: The Company reported net income attributable to common stockholders for the first quarter of $58.6 million, or $0.27 per diluted share, compared to $57.9 million, or $0.30 per diluted share, for the prior year quarter. Net income in the prior year quarter included $12.1 million of gains on sale of real estate for which there was no comparable amount during the first quarter of 2024. The Company reported Core FFO for the first quarter of $123.5 million, representing a 20.3% increase compared to $102.7 million for the prior year quarter. The Company reported Core FFO of $0.58 per diluted share, representing an increase of 11.5% compared to $0.52 per diluted share for the prior year quarter. In the first quarter, the Company's consolidated portfolio NOI and Cash NOI increased 14.9% and 17.5%, respectively, compared to the prior year quarter. In the first quarter, the Company's Same Property Portfolio NOI increased 5.5% compared to the prior year quarter, driven by a 5.5% increase in Same Property Portfolio rental income and a 5.7% increase in Same Property Portfolio expenses. Same Property Portfolio Cash NOI increased 8.5% compared to the prior year quarter. Operating Results: First quarter 2024 leasing activity demonstrates strong tenant demand fundamentals within Rexford Industrial's target Southern California infill markets: Q1-2024 Leasing Activity Releasing Spreads Releasing Spreads Excluding Tireco, Inc. Lease Extension(1) # of LeasesExecuted SF ofLeasing GAAP Cash GAAP Cash New Leases 50 830,941 41.3 % 31.2 % 41.3 % 31.2 % Renewal Leases 64 2,398,076 14.8 % 11.3 % 56.8 % 34.4 % Total Leases 114 3,229,017 17.3 % 13.2 % 53.0 % 33.6 % (1) Excludes the 1.1 million square foot lease extension with Tireco, Inc. at 10545 Production Avenue. The original Tireco, Inc. lease expiration date was January 2025 and included a fixed rate renewal option. During the first quarter of 2024, the lease was extended through January 2027 at the current in-place rent and includes a 4% contractual rent increase in 2026 and two months of rent abatement. This lease extension was excluded for comparability purposes, in order to allow investors to make investment decisions based on our quarterly leasing statistics as compared to our prior periods. As of March 31, 2024, the Company's Same Property Portfolio occupancy was 96.4%. Average Same Property Portfolio occupancy for the first quarter was 96.8%. The Company's consolidated portfolio, excluding value-add repositioning assets, was 96.9% occupied and 97.8% leased, and the Company's consolidated portfolio, including value-add repositioning assets, was 92.8% occupied and 94.0% leased. Transaction Activity: During the first quarter of 2024, the Company completed $1.1 billion in total investments including 3.2 million square feet of buildings on 158 acres of land. In aggregate, these investments are projected to generate a weighted average unlevered initial yield of 4.8% and an unlevered stabilized yield on total investment of 5.6%. Subsequent to the first quarter of 2024, the Company acquired: 4422 Airport Drive, Ontario, located in the Inland Empire - West submarket, for $26.7 million or $303 per square foot. The 88,283 square foot building is 100% leased to two tenants and is generating a 5.5% initial unlevered stabilized yield. According to CBRE, the vacancy rate in the 347 million square foot IE - West submarket was 5.1% at the end of the first quarter 2024. In addition, the Company disposed of one property subsequent to the first quarter of 2024 for a sales price of $10.0 million, which generated a 13.3% unlevered IRR on investment. During the first quarter of 2024, the Company stabilized two repositioning projects, including two spaces totaling 38,021 square feet, representing a total investment of $12.1 million. The projects achieved a weighted average unlevered stabilized yield on total investment of 10.8%. Balance Sheet: The Company ended the first quarter with $337.0 million in cash on hand and $1.0 billion available under its unsecured revolving credit facility. As of March 31, 2024, the Company had $3.4 billion of outstanding debt, with an average interest rate of 3.8%, an average term-to-maturity of 4.2 years and no floating rate debt exposure. Including extension options available at the Company's option, the Company has no significant debt maturities until 2026. In the first quarter of 2024, the Company executed the following equity transactions: Completed a public offering of 17,179,318 shares of common stock to an existing long-only investor based on the West Coast, subject to forward equity sale agreements at a public offering price of $48.95 per share for a gross offering value of $840.9 million. Settlement of the remaining forward equity sale agreements related to its May 2023 public offering by issuing 2,253,034 shares of common stock for net proceeds of $125.7 million. Settlement of the outstanding forward equity sale agreements under its at-the-market equity offering program ("ATM Program") by issuing 3,010,568 shares of common stock for net proceeds of $164.5 million. As of April 17, 2024, the Company had approximately $837.1 million of net forward proceeds remaining for settlement. During the first quarter of 2024, the Company did not execute on its ATM Program. As of March 31, 2024, the Company's ATM Program had approximately $927.4 million of remaining capacity. In March 2024, the Company issued $575.0 million principal amount of 4.375% exchangeable senior notes due in 2027 and $575.0 million principal amount of 4.125% exchangeable senior notes due in 2029. Net proceeds were approximately $1.126 billion after deducting the initial purchasers' discounts and commissions and offering expenses. The 2027 Notes will mature on March 15, 2027, and the 2029 Notes will mature on March 15, 2029. Dividends: On April 15, 2024, the Company's Board of Directors authorized a dividend in the amount of $0.4175 per share for the second quarter of 2024, payable in cash on July 15, 2024, to common stockholders and common unit holders of record as of June 28, 2024. On April 15, 2024, the Company's Board of Directors authorized 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 June 28, 2024, to preferred stockholders of record as of June 14, 2024. Guidance: The Company is updating its full year 2024 guidance as indicated below. The Core FFO guidance refers to the Company's in-place portfolio as of April 17, 2024, and does not include any assumptions for additional acquisitions, dispositions or related balance sheet activities that have not closed. Please refer to the Company's supplemental information package for a complete detail of guidance and 2024 Guidance Rollforward. 2024 Outlook (1) Q1 2024 Updated Guidance Initial Guidance Net Income Attributable to Common Stockholders per diluted share $1.17 - $1.20 $1.11 - $1.14 Company share of Core FFO per diluted share $2.31 - $2.34 $2.27 - $2.30 Same Property Portfolio NOI Growth - GAAP 4.25% - 5.25% 4.0% - 5.0% Same Property Portfolio NOI Growth - Cash 7.0% - 8.0% 7.0% - 8.0% Average Same Property Portfolio Occupancy (Full Year) (2) 96.5% - 97.0% 96.5% - 97.0% General and Administrative Expenses (3) +/- $83.0M +/- $83.0M Net Interest Expense +/- $99.0M $60.0M - $61.0M (1) 2024 Guidance represents the in-place portfolio as of April 17, 2024, and does not include any assumptions for additional prospective acquisitions, dispositions or related balance sheet activities that have not closed. (2) Our 2024 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, 2023 through March 31, 2024 and excludes properties that were or will be classified as repositioning/redevelopment (current and future) or lease-up during 2023 and 2024 (unless otherwise noted). (3) 2024 General and Administrative expense guidance includes estimated non-cash equity compensation expense of $35.5 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 potential impacts related to 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 Updated 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 ir.rexfordindustrial.com. Earnings Release, Investor Conference Webcast and Conference Call: A conference call with executive management will be held on Thursday, April 18, 2024, 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 using Conference ID 9448082. 1 (800) 715-9871 (for domestic callers)1 (646) 307-1963 (for international callers) A live webcast and replay of the conference call will also be available at 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 with lowest-supply major 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 422 properties with approximately 49.2 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. In addition, projections, assumptions and estimates of our future performance and the future performance of the industry in which we operate are necessarily subject to a high degree of uncertainty and risk due to a variety of factors, including those described above. These and other factors could cause results to differ materially from those expressed in our estimates and beliefs and in the estimates prepared by independent parties. 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, 2023, 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, ...