Rexford Industrial Realty, Inc. · NYSE:REXR
Rexford Industrial Realty — Q4 2023 Earnings Presentation
36 slides from Rexford Industrial Realty's earnings presentation, Feb 7, 2024
Slide 1: Fourth Quarter 2023 Supplemental Financial Reporting Package
FOURTH QUARTER 2023 Supplemental Financial Reporting Package Rexford Industrial Realty, Inc. NYSE: REXR 11620 Wilshire Boulevard, Suite 1000. Los Angeles, CA 90025, 310.966.1680 2800 CASITAS AVENUE | LOS ANGELES
Slide 2: Table of Contents
Table of Contents. Section Page Corporate Data: Investor Company Summary ............................................................................................................................................................................................................................ 3 Comp
Slide 3: Investor Company Summary
Investor Company Summary. Executive Management Team Howard Schwimmer Co-Chief Executive Officer, Director Michael S. Frankel Co-Chief Executive Officer, Director Laura Clark Chief Financial Officer David Lanzer General Counsel and Corporate Secretary Board of Directors Richard Ziman Chairman Tyler H
Slide 4: Company Overview
Company Overview. For the Quarter Ended December 31, 2023 Fourth Quarter 2023 Page 4 Supplemental Financial Reporting Package
Slide 5: Highlights - Consolidated Financial Results
Highlights - Consolidated Financial Results. Quarterly Results (in millions) Net Operating Income (NOI) Adjusted EBITDA 16% Year-over-Year Growth 17% Year-over-Year Growth $156.1 $158.7 $160 $149.8 $160 $147.9 $152.1 $142.3 $139.8 $141.3 $136.4 $129.5 $120 $120 $80 $80 $40 $40 $0 $0 Q4 2022 Q1 2023
Slide 6: Financial and Portfolio Highlights and Capitalization Data
Financial and Portfolio Highlights and Capitalization Data. (1) (in thousands except share and per share data and portfolio statistics) Three Months Ended December 31, 2023 September 30, 2023 June 30, 2023 March 31, 2023 December 31, 2022 Financial Results: Total rental income $ 207,909 $ 204,212 $
Slide 7: Guidance
Guidance. As of December 31, 2023 2024 OUTLOOK* YTD RESULTS AS OF 2024 METRIC DECEMBER 31, 2023 GUIDANCE Net Income Attributable to Common Stockholders per diluted share (1)(2) $1.12 $1.11 - $1.14 Company share of Core FFO per diluted share (1)(2) $2.19 $2.27 - $2.30 Same Property Portfolio NOI Grow
Slide 8: Guidance (Continued): 2024 Guidance Rollforward
Guidance (Continued). As of December 31, 2023 2024 Guidance Rollforward(1) Range Earnings Components ($ per share) Notes 2023 Core FFO Per Diluted Share $2.19 $2.19 Same Property Portfolio NOI Growth 0.10 0.12 Guidance range of 4.0% - 5.0% SPP NOI Growth Incremental contribution of +$0.06/sh from pr
Slide 9: Consolidated Balance Sheets
Consolidated Balance Sheets. (unaudited and in thousands) December 31, 2023 September 30, 2023 June 30, 2023 March 31, 2023 December 31, 2022 ASSETS Land $ 6,815,622 $ 6,606,022 $ 6,400,698 $ 6,334,926 $ 5,841,195 Buildings and improvements 3,933,379 3,869,303 3,723,837 3,671,384 3,370,494 Tenant im
Slide 10: Consolidated Statements of Operations
Consolidated Statements of Operations. Quarterly Results (unaudited and in thousands, except share and per share data) Three Months Ended Dec 31, 2023 Sep 30, 2023 Jun 30, 2023 Mar 31, 2023 Dec 31, 2022 Revenues Rental income(1) $ 207,909 $ 204,212 $ 194,098 $ 185,164 $ 178,422 Management and leasin
Slide 11: Consolidated Statements of Operations (continued)
Consolidated Statements of Operations. Quarterly Results (continued) (unaudited and in thousands, except share and per share data) Three Months Ended December 31, Year Ended December 31, 2023 2022 2023 2022 Revenues Rental income $ 207,909 $ 178,422 $ 791,383 $ 630,578 Management and leasing service
Slide 12: Non-GAAP FFO and Core FFO Reconciliations
Non-GAAP FFO and Core FFO Reconciliations. (1) (unaudited and in thousands, except share and per share data) Three Months Ended December 31, 2023 September 30, 2023 June 30, 2023 March 31, 2023 December 31, 2022 Net Income $ 67,321 $ 61,790 $ 56,910 $ 63,570 $ 45,708 Adjustments: Depreciation and am
Slide 13: Non-GAAP FFO and Core FFO Reconciliations
Non-GAAP FFO and Core FFO Reconciliations. (1) (unaudited and in thousands, except share and per share data) Three Months Ended December 31, Year Ended December 31, 2023 2022 2023 2022 Net Income $ 67,321 $ 45,708 $ 249,591 $ 177,157 Adjustments: Depreciation and amortization 65,839 56,568 244,510 1
Slide 14: Non-GAAP AFFO Reconciliation
Non-GAAP AFFO Reconciliation. (1) (unaudited and in thousands, except share and per share data) Three Months Ended December 31, September 30, June 30, March 31, December 31, 2023 2023 2023 2023 2022 Funds From Operations(2) $ 126,292 $ 122,239 $ 115,703 $ 110,866 $ 102,276 Adjustments: Amortization
Slide 15: Statement of Operations Reconciliations - NOI, EBITDAre and Adjusted EBITDA
Statement of Operations Reconciliations - NOI, Cash NOI, EBITDAre and Adjusted EBITDA. (1) (unaudited and in thousands) NOI and Cash NOI Three Months Ended Dec 31, 2023 Sep 30, 2023 Jun 30, 2023 Mar 31, 2023 Dec 31, 2022 Rental income(2)(3) $ 207,909 $ 204,212 $ 194,098 $ 185,164 $ 178,422 Less: Pro
Slide 16: Same Property Portfolio Performance
Same Property Portfolio Performance.(1) (unaudited and dollars in thousands) Same Property Portfolio: Number of properties 254 Square Feet 32,476,716 Same Property Portfolio NOI and Cash NOI: Three Months Ended December 31, Year Ended December 31, 2023 2022 $ Change % Change 2023 2022 $ Change % Cha
Slide 17: Capitalization Summary
Capitalization Summary. (unaudited and in thousands, except share and per share data) Capitalization as of December 31, 2023 Net Debt: 15.0% Preferred Stock/Units: 1.6% Common Stock: 80.5% Operating Partnership Units: 2.9% Description December 31, 2023 September 30, 2023 June 30, 2023 March 31, 2023
Slide 18: Debt Summary
Debt Summary. (unaudited and dollars in thousands) Debt Detail: As of December 31, 2023 Stated Effective Principal Debt Description Maturity Date Interest Rate Interest Rate(1) Balance(2) Unsecured Debt: $1.0 Billion Revolving Credit Facility(3) 5/26/2026(4) SOFR+0.685%(5) 6.165% $ — $400M Term Loan
Slide 19: Debt Summary (Continued)
Debt Summary (Continued). (unaudited and dollars in thousands) Debt Maturity Schedule Unsecured Secured $600,000 $472,471 $444,796 $500,000 $400,000 $401,741 $400,000 $314,152 $300,000 $200,000 $100,000 $77,881 $100,000 $6,984 $25,000 $0 $0 $0 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 Therea
Slide 20: Operations
Operations. Quarterly Results Leasing Volume, Square Feet (in millions) Consolidated Portfolio Ending Occupancy 2.5 Occupancy 2.1 Occupancy Excluding Repositioning/Redevelopment 2.0 1.9 100.0% 1.8 1.5 97.9% 97.9% 97.6% 98.0% 97.4% 97.3% 1.5 1.1 96.0% 1.0 94.6% 93.8% 94.0% 94.1% 94.1% 94.0% 0.5 92.0%
Slide 21: Portfolio Overview
Portfolio Overview. At December 31, 2023 (unaudited results) Consolidated Portfolio: Rentable Square Feet Ending Occupancy % In-Place ABR(3) Total Portfolio Same Non-Same Same Non-Same Excluding # of Property Property Total Property Property Total Repositioning/ Total Per Square Market Properties Po
Slide 22: Leasing Statistics and Trends
Leasing Statistics and Trends. (unaudited results) Leasing Activity and Weighted Average New / Renewal Leasing Spreads: Three Months Ended Dec 31, 2023 Sep 30, 2023 Jun 30, 2023 Mar 31, 2023(1) Dec 31, 2022(2) Leasing Spreads: GAAP Rent Change 63.1% 64.8% 96.8 % 80.2% 77.0% Cash Rent Change 45.6% 51
Slide 23: Leasing Statistics (Continued)
Leasing Statistics (Continued). (unaudited results) Lease Expiration Schedule as of December 31, 2023: Lease Expirations % of In-Place + Uncommenced Annualized Base Rent (ABR) 18% 16% 16.4% 16.7% 14% 12% 12.9% 12.6% 10% 10.9% 8% 6% 7.0% 7.2% 7.5% 4% 4.5% 2% 1.0% 3.1% 0.2% 0% MTM 2023 2024 2025 2026
Slide 24: Top Tenants and Lease Segmentation
Top Tenants and Lease Segmentation. (unaudited results) Top 20 Tenants as of December 31, 2023 Leased In-Place + Uncommenced % of In-Place + In-Place + Uncommenced Lease Tenant Submarket Rentable SF ABR (in 000’s)(1) Uncommenced ABR(1) ABR per SF(1) Expiration Tireco, Inc. Inland Empire West 1,101,8
Slide 25: Capital Expenditure Summary
Capital Expenditure Summary. (unaudited results, in thousands, except square feet and per square foot data) Year Ended December 31, 2023 Year to Date Q4-2023 Q3-2023 Q2-2023 Q1-2023 Total SF(1) PSF Tenant Improvements: New Leases – 1st Generation(2) $ 1,401 $ 77 $ 56 $ 38 $ 1,572 1,400,053 $ 1.12 Ne
Slide 26: Properties and Space Under Repositioning/Redevelopment
Properties and Space Under Repositioning/Redevelopment.(1) As of December 31, 2023 (unaudited results, $ in millions) Repositioning Est. Constr. Total Period(1) Est. Est. Total Repo/ Property Est. Proj. Proj. Cumulative Actual Annual Unlevered Property Lease-Up Leased % Target Stabilization Purch. R
Slide 27: Properties and Space Under Repositioning/Redevelopment (Continued)
Properties and Space Under Repositioning/Redevelopment (Continued).(1) As of December 31, 2023 (unaudited results, $ in millions) Redevelopment Total Est. Constr. Period(1) Est. Est. Property Est. Proj. Proj. Cumulative Actual Annual Unlevered Projected Leased % Target Stabilization Purch. Redev Tot
Slide 28: Properties and Space Under Repositioning/Redevelopment (Continued)
Properties and Space Under Repositioning/Redevelopment (Continued).(1) As of December 31, 2023 (unaudited results, in thousands, except square feet) Prior and Current Year Stabilized Repositioning/Redevelopment Property (Submarket) Rentable Square Feet Stabilized Period Unlevered Stabilized Yield 29
Slide 29: Current Year Investments and Dispositions Summary
Current Year Investments and Dispositions Summary. As of December 31, 2023 (unaudited results) 2023 Acquisitions Est. Investment Unlevered Investment Rentable Price Occ. % at Stabilized Date Property Address County Submarket Square Feet ($ in MM) Acquisition Yield 1/6/2023 16752 Armstrong Avenue Ora
Slide 30: Subsequent Investments and Dispositions Summary
Subsequent Investments and Dispositions Summary. As of February 6, 2024 (unaudited results) 2024 Subsequent Period Acquisitions Est. Acquisition Unlevered Acquisition Rentable Price Occ. % at Stabilized Date Property Address County Submarket Square Feet ($ in MM) Acquisition Yield 1/31/2024 5000 & 5
Slide 31: Net Asset Value Components
Net Asset Value Components. As of December 31, 2023 (unaudited and in thousands, except share data) Net Operating Income Pro Forma Net Operating Income (NOI)(1) Three Months Ended Dec 31, 2023 Total operating rental income $207,909 Property operating expenses (49,259) Pro forma effect of uncommenced
Slide 32: Notes and Definitions
Notes and Definitions. Adjusted Funds from Operations (“AFFO”): We calculate adjusted funds from operations, or Capital Expenditures, Non-recurring: Expenditures made with respect to a property for AFFO, by adding to or subtracting from FFO, as defined below, the following items: (i) certain non- re
Slide 33: Notes and Definitions
Notes and Definitions. Debt Covenants ($ in thousands) measure of our liquidity. EBITDAre and Adjusted EBITDA should not be considered as alternatives to net income or loss as an indicator of our operating performance. Other Equity REITs may calculate December 31, 2023 EBITDAre and Adjusted EBITDA d
Slide 34: Notes and Definitions
Notes and Definitions. NAREIT Defined Funds from Operations (“FFO”): We calculate FFO in accordance with the Proforma NOI: Proforma NOI is calculated by adding to NOI the following adjustments: (i) the standards established by NAREIT. FFO represents net income (loss) (computed in accordance with est
Slide 35: Notes and Definitions
Notes and Definitions. • Estimated Annual Stabilized Cash NOI: Represents management’s estimate of each project’s 2022 and 2023 (as separately listed on pages 26-27) and select buildings in “Other Repositioning,” annual Cash NOI once the property has reached stabilization and initial rental concessi
Slide 36: Notes and Definitions
Notes and Definitions. Reconciliation of Net Income to Total Portfolio NOI, Same Property Portfolio NOI and Same Occupancy by County: Property Portfolio Cash NOI: Dec 31, Sep 30, Jun 30, Mar 31, Dec 31, 2023 2023 2023 2023 2022 Three Months Ended Year Ended December December 31, 31, Ending Occupancy
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