Rexford Industrial Realty, Inc. · NYSE:REXR
Rexford Industrial Realty — Q1 2024 Earnings Presentation
37 slides from Rexford Industrial Realty's earnings presentation, Apr 18, 2024
Slide 1: First Quarter 2024 Supplemental Financial Reporting Package
E] Rexford Industrial 1500 E WALNUT AVENUE | FULLERTON FIRST QUARTER 2024 Supplemental Financial Reporting Package Rexford Industrial Realty, Inc. 11620 Wilshire Boulevard, Suite 1000 Los Angeles, CA 90025 310.966.1680
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 March 31, 2024 First Quarter 2024 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 15% Year-over-Year Growth 20% Year-over-Year Growth $180 $163.5 $180 $167.2 $156.1 $158.7 $149.8 $147.9 $152.1 $150 $142.3 $150 $139.8 $141.3 $120 $120 $90 $90 $60 $60 $30 $30 $0 $
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 March 31, 2024 December 31, 2023 September 30, 2023 June 30, 2023 March 31, 2023 Financial Results: Total rental income $ 210,990 $ 207,909 $ 204
Slide 7: Guidance: 2024 Outlook
Guidance. As of March 31, 2024 2024 OUTLOOK* Q1-2024 INITIAL 2024 YTD RESULTS AS OF METRIC UPDATED GUIDANCE GUIDANCE MARCH 31, 2024 Net Income Attributable to Common Stockholders per diluted share (1)(2) $1.17 - $1.20 $1.11 - $1.14 $0.27 Company share of Core FFO per diluted share (1)(2) $2.31 - $2.
Slide 8: Guidance (Continued): 2024 Guidance Rollforward
Guidance (Continued). As of March 31, 2024 2024 Guidance Rollforward (1) Range Earnings Components ($ per share) Notes 2024 Core FFO Per Diluted Share Guidance (Previous) $2.27 $2.30 Initial 2024 Guidance Same Property Portfolio NOI Growth — — FY 2024 SP NOI Growth (GAAP) Guidance range of 4.25% - 5
Slide 9: Consolidated Balance Sheets
Consolidated Balance Sheets. (unaudited and in thousands) March 31, 2024 December 31, 2023 September 30, 2023 June 30, 2023 March 31, 2023 ASSETS Land $ 7,568,720 $ 6,815,622 $ 6,606,022 $ 6,400,698 $ 6,334,926 Buildings and improvements 4,260,512 3,933,379 3,869,303 3,723,837 3,671,384 Tenant impro
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 Mar 31, 2024 Dec 31, 2023 Sep 30, 2023 Jun 30, 2023 Mar 31, 2023 Revenues Rental income(1) $ 210,990 $ 207,909 $ 204,212 $ 194,098 $ 185,164 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 March 31, 2024 2023 Revenues Rental income $ 210,990 $ 185,164 Management and leasing services 132 190 Interest income 2,974 882 Total Revenues 214,09
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 March 31, 2024 December 31, 2023 September 30, 2023 June 30, 2023 March 31, 2023 Net Income $ 64,277 $ 67,321 $ 61,790 $ 56,910 $ 63,570 Adjustments: Depreciation and amort
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 March 31, 2024 2023 Net Income $ 64,277 $ 63,570 Adjustments: Depreciation and amortization 66,278 59,429 Gains on sale of real estate — (12,133) Funds From Operations (FFO
Slide 14: Non-GAAP AFFO Reconciliation
Non-GAAP AFFO Reconciliation. (1) (unaudited and in thousands, except share and per share data) Three Months Ended March 31, December 31, September 30, June 30, March 31, 2024 2023 2023 2023 2023 Funds From Operations(2) $ 130,555 $ 126,292 $ 122,239 $ 115,703 $ 110,866 Adjustments: Amortization of
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 Mar 31, 2024 Dec 31, 2023 Sep 30, 2023 Jun 30, 2023 Mar 31, 2023 Rental income(2)(3) $ 210,990 $ 207,909 $ 204,212 $ 194,098 $ 185,164 Less: Pro
Slide 16: Same Property Portfolio Performance
Same Property Portfolio Performance.(1) (unaudited and dollars in thousands) Same Property Portfolio: Number of properties 296 Square Feet 37,109,867 Same Property Portfolio NOI and Cash NOI: Three Months Ended March 31, 2024 2023 $ Change % Change Rental income(2)(3)(4) $ 171,557 $ 162,571 $ 8,986
Slide 17: Capitalization Summary
Capitalization Summary. (unaudited and in thousands, except share and per share data) Capitalization as of March 31, 2024 Net Debt: 20.9% Preferred Stock/Units: 1.6% Operating Partnership Units: 2.6% Common Stock: 74.9% Description March 31, 2024 December 31, 2023 September 30, 2023 June 30, 2023 Ma
Slide 18: Debt Summary
Debt Summary. (unaudited and dollars in thousands) Debt Detail: As of March 31, 2024 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) 6.125% $ — $400M Term Loan Fa
Slide 19: Debt Summary (Continued)
Debt Summary (Continued). (unaudited and dollars in thousands) Debt Maturity Schedule Unsecured Secured $1,200,000 $1,019,702 $1,000,000 $800,000 $600,000 $600,000 $468,763 $400,000 $401,692 $400,000 $314,132 $200,000 $100,000 $77,848 $6,951 $0 $0 $0 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033
Slide 20: Operations
Operations. Quarterly Results Leasing Volume, Square Feet (in millions) Consolidated Portfolio Ending Occupancy 3.5 3.2 Occupancy Occupancy Excluding Repositioning/Redevelopment 3.0 100.0% 2.5 97.9% 2.1 98.0% 97.4% 97.3% 97.6% 1.9 96.9% 2.0 1.8 1.5 96.0% 1.5 93.8% 94.0% 94.1% 94.1% 94.0% 1.0 92.8% 0
Slide 21: Portfolio Overview
Portfolio Overview. At March 31, 2024 (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 Portf
Slide 22: Leasing Statistics and Trends
Leasing Statistics and Trends. (unaudited results) Leasing Activity and Weighted Average New / Renewal Leasing Spreads: Three Months Ended Mar 31, 2024 Dec 31, 2023 Sep 30, 2023 Jun 30, 2023 Mar 31, 2023(1) Leasing Spreads: GAAP Rent Change(2) 53.0% 63.1% 64.8 % 96.8% 80.2% Cash Rent Change(2) 33.6%
Slide 23: Leasing Statistics (Continued)
Leasing Statistics (Continued). (unaudited results) Lease Expiration Schedule as of March 31, 2024: Lease Expirations % of In-Place + Uncommenced Annualized Base Rent (ABR) 18% 16% 17.0% 16.2% 14% 12% 13.8% 13.7% 10% 8% 9.2% 8.6% 6% 6.7% 6.4% 4% 4.2% 2% 2.9% 1.0% 0.3% 0% MTM 2024 2025 2026 2027 2028
Slide 24: Top Tenants and Lease Segmentation
Top Tenants and Lease Segmentation. (unaudited results) Top 20 Tenants as of March 31, 2024 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.(2) 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) Three months ended March 31, 2024 Year to Date Total SF(1) PSF Tenant Improvements: New Leases – 1st Generation $ 378 224,102 $ 1.69 New Leases – 2nd Generation — — $ 0.00 Renewals 226 238,579
Slide 26: Properties and Space Under Repositioning/Redevelopment
Properties and Space Under Repositioning/Redevelopment.(1) As of March 31, 2024 (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. Repo
Slide 27: Properties and Space Under Repositioning/Redevelopment (Continued)
Properties and Space Under Repositioning/Redevelopment (Continued).(1) As of March 31, 2024 (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 Total
Slide 28: Stabilized Repositioning/Redevelopment Properties
Properties and Space Under Repositioning/Redevelopment (Continued).(1) As of March 31, 2024 (unaudited results, in thousands, except square feet) Prior and Current Year Stabilized Repositioning/Redevelopment Property (Submarket) Rentable Square Feet Stabilized Period Unlevered Stabilized Yield 12821
Slide 29: Current Year Investments and Dispositions Summary
Current Year Investments and Dispositions Summary. As of March 31, 2024 (unaudited results) 2024 Current Period Acquisitions Est. Investment Unlevered Investment Rentable Price Occ. % at Stabilized Date Property Address County Submarket Square Feet ($ in MM) Acquisition Yield 1/31/2024 5000 & 5010 A
Slide 30: Investments and Dispositions - Blackstone Industrial Assets
Current Year Investments and Dispositions Summary (Continued). As of March 31, 2024 (unaudited results) 2024 Current Period Acquisitions - Blackstone Industrial Assets Investment Rentable Occ. % at Date Property Address County Submarket Square Feet Acquisition 3/28/2024 11120 Sherman Way Los Angeles
Slide 31: Investments and Dispositions - Blackstone Industrial Assets
Current Year Investments and Dispositions Summary (Continued). As of March 31, 2024 (unaudited results) 2024 Current Period Acquisitions - Blackstone Industrial Assets Investment Rentable Occ. % at Date Property Address County Submarket Square Feet Acquisition 3/28/2024 1212 Howell Avenue Orange Nor
Slide 32: Net Asset Value Components
Net Asset Value Components. As of March 31, 2024 (unaudited and in thousands, except share data) Net Operating Income Pro Forma Net Operating Income (NOI)(1) Three Months Ended Mar 31, 2024 Total operating rental income $210,990 Property operating expenses (47,482) Pro forma effect of uncommenced le
Slide 33: Notes and Definitions
Notes and Definitions. Adjusted Funds from Operations (“AFFO”): We calculate adjusted funds from operations, or Capital Expenditures, Non-recurring: Expenditures made with respect to a property for AFFO, by adding to or subtracting from FFO, as defined below, the following items: (i) certain non- re
Slide 34: Notes and Definitions
Notes and Definitions. Debt Covenants ($ 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 March 31, 2024 EBITDAre and Adjusted EBITDA diff
Slide 35: 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 36: Notes and Definitions
Notes and Definitions. • Estimated Annual Stabilized Cash NOI: Represents management’s estimate of each project’s (as separately listed on pages 26-27) and select buildings in “Other Repositioning,” which we believe annual Cash NOI once the property has reached stabilization and initial rental conce
Slide 37: 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: Mar 31, Dec 31, Sep 30, Jun 30, Mar 31, 2024 2023 2023 2023 2023 Three Months Ended March 31, Ending Occupancy: 2024 2023 Los Angeles Cou
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