Rexford Industrial Realty, Inc. · NYSE:REXR
Rexford Industrial Realty — Q3 2024 Earnings Presentation
38 slides from Rexford Industrial Realty's earnings presentation, Oct 17, 2024
Slide 1: Third Quarter 2024 Supplemental Financial Reporting Package
EY Rexford Industrial 500 S. DUPONT AVENUE | ONTARIO THIRD QUARTER 2024 Supplemental Financial Reporting Package Rexford Industrial Realty, Inc. NYSE: REXR 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 September 30, 2024 Third 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 EBITDAre 18% Year-over-Year Growth 19% Year-over-Year Growth $200 $181.1 $183.5 $200 $178.1 $175.9 $163.5 $167.2 $156.1 $158.7 $152.1 $147.9 $150 $150 $100 $100 $50 $50 $0 $0 Q3 2023 Q4 2
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 September 30, 2024 June 30, 2024 March 31, 2024 December 31, 2023 September 30, 2023 Financial Results: Total rental income $ 238,396 $ 232,973 $
Slide 7: Guidance: 2024 Outlook
Guidance. As of September 30, 2024 2024 OUTLOOK* Q3-2024 UPDATED Q2-2024 YTD RESULTS AS OF PRIMARY DRIVERS OF Q3-2024 METRIC GUIDANCE GUIDANCE SEPTEMBER 30, 2024 UPDATED GUIDANCE Net Income Attributable to Common Stockholders per diluted share (1)(2) $1.20 - $1.22 $1.19 - $1.21 $0.94 Increase in FFO
Slide 8: Guidance (Continued): 2024 Guidance Rollforward
Guidance (Continued). As of September 30, 2024 2024 Guidance Rollforward (1) Range Earnings Components ($ per share) Notes 2024 Core FFO Per Diluted Share Guidance (Previous) $2.32 $2.34 Q2 2024 Guidance Same Property Portfolio NOI Growth — (0.01) FY 2024 SP NOI Growth (GAAP) Guidance range of 4.25%
Slide 9: Consolidated Balance Sheets
Consolidated Balance Sheets. (unaudited and in thousands) September 30, 2024 June 30, 2024 March 31, 2024 December 31, 2023 September 30, 2023 ASSETS Land $ 7,703,232 $ 7,650,740 $ 7,568,720 $ 6,815,622 $ 6,606,022 Buildings and improvements 4,416,032 4,330,709 4,260,512 3,933,379 3,869,303 Tenant i
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 Sep 30, 2024 Jun 30, 2024 Mar 31, 2024 Dec 31, 2023 Sep 30, 2023 Revenues Rental income(1) $ 238,396 $ 232,973 $ 210,990 $ 207,909 $ 204,212 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 September 30, Nine Months Ended September 30, 2024 2023 2024 2023 Revenues Rental income $ 238,396 $ 204,212 $ 682,359 $ 583,474 Management and leasin
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 September 30, 2024 June 30, 2024 March 31, 2024 December 31, 2023 September 30, 2023 Net Income $ 70,722 $ 86,017 $ 64,277 $ 67,321 $ 61,790 Adjustments: Depreciation and a
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 September 30, Nine Months Ended September 30, 2024 2023 2024 2023 Net Income $ 70,722 $ 61,790 $ 221,016 $ 182,270 Adjustments: Depreciation and amortization 69,241 60,449
Slide 14: Non-GAAP AFFO Reconciliation
Non-GAAP AFFO Reconciliation. (1) (unaudited and in thousands, except share and per share data) Three Months Ended September 30, June 30, March 31, December 31, September 30, 2024 2024 2024 2023 2023 Funds From Operations(2) $ 138,218 $ 137,645 $ 130,555 $ 126,292 $ 122,239 Adjustments: Amortization
Slide 15: Statement of Operations Reconciliations - NOI, Cash NOI, EBITDAre
Statement of Operations Reconciliations - NOI, Cash NOI, EBITDAre and Adjusted EBITDAre. (1) (unaudited and in thousands) NOI and Cash NOI Three Months Ended Sep 30, 2024 Jun 30, 2024 Mar 31, 2024 Dec 31, 2023 Sep 30, 2023 Rental income(2)(3) $ 238,396 $ 232,973 $ 210,990 $ 207,909 $ 204,212 Less: P
Slide 16: Same Property Portfolio Performance
Same Property Portfolio Performance.(1) (unaudited and dollars in thousands) Same Property Portfolio: Number of properties 293 Square Feet 36,961,821 Same Property Portfolio NOI and Cash NOI: Three Months Ended Nine Months Ended September 30, September 30, 2024 2023 $ Change % Change 2024 2023 $ Cha
Slide 17: Capitalization Summary
Capitalization Summary. (unaudited and in thousands, except share and per share data) Capitalization as of September 30, 2024 Net Debt: 22.2% Preferred Stock/Units: 1.4% Operating Partnership Units: 2.7% Common Stock: 73.7% Description September 30, 2024 June 30, 2024 March 31, 2024 December 31, 202
Slide 18: Debt Summary
Debt Summary. (unaudited and dollars in thousands) Debt Detail: As of September 30, 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+0.725%(5) 5.785% $ — $400M Term Loa
Slide 19: Debt Summary (Continued)
Debt Summary (Continued). (unaudited and dollars in thousands) Debt Maturity Schedule Unsecured Secured $1,200,000 $1,019,510 $1,000,000 $800,000 $560,000 $600,000 $600,000 $400,000 $401,590 $314,092 $400,000 $200,000 $6,415 $6,885 $0 $0 $77,781 $0 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 T
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 2.3 97.9% 97.9% 98.0% 97.6% 97.6% 1.9 96.9% 2.0 1.5 1.6 96.0% 1.5 94.1% 94.1% 93.7% 94.0% 93.0% 1.0 92.8% 0
Slide 21: Portfolio Overview
Portfolio Overview. At September 30, 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 P
Slide 22: Executed Leasing Statistics and Trends
Executed Leasing Statistics and Trends. (unaudited results) Executed Leasing Activity and Weighted Average New / Renewal Leasing Spreads: Three Months Ended Sep 30, 2024 Jun 30, 2024 Mar 31, 2024 Dec 31, 2023 Sep 30, 2023 Leasing Spreads: GAAP Rent Change(1) 39.2 % 67.7 % 53.0 % 63.1% 64.8% Cash Ren
Slide 23: Leasing Statistics (Continued)
Leasing Statistics (Continued). (unaudited results) Lease Expiration Schedule as of September 30, 2024: Lease Expirations % of In-Place + Uncommenced Annualized Base Rent (ABR) 18% 16% 16.5% 16.3% 14% 15.0% 14.4% 12% 12.1% 10% 8% 6% 6.5% 6.5% 4% 4.9% 2% 3.2% 3.3% 1.0% 0.3% 0% MTM 2024 2025 2026 2027
Slide 24: Top Tenants and Lease Segmentation
Top Tenants and Lease Segmentation. (unaudited results) Top 20 Tenants as of September 30, 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 1,1
Slide 25: Capital Expenditure Summary
Capital Expenditure Summary. (unaudited results, in thousands, except square feet and per square foot data) Nine months ended September 30, 2024 Year to Date Q3-2024 Q2-2024 Q1-2024 Total SF(1) PSF Tenant Improvements: New Leases – 1st Generation $ 470 $ 681 $ 378 $ 1,529 934,870 $ 1.64 New Leases –
Slide 26: Properties and Space Under Repositioning/Redevelopment
Properties and Space Under Repositioning/Redevelopment.(1) As of September 30, 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.
Slide 27: Properties Under Repositioning/Redevelopment (Continued)
Properties and Space Under Repositioning/Redevelopment (Continued).(1) As of September 30, 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 To
Slide 28: Properties Under Repositioning/Redevelopment (Continued)
Properties and Space Under Repositioning/Redevelopment (Continued).(1) As of September 30, 2024 (unaudited results, $ in millions) Redevelopment (Continued) Total Est. Constr. Period(1) Est. Est. Property Est. Proj. Proj. Cumulative Actual Annual Unlevered Projected Leased % Target Stabilization Pur
Slide 29: Stabilized Repositioning/Redevelopment Properties
Properties and Space Under Repositioning/Redevelopment (Continued).(1) As of September 30, 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 1
Slide 30: Current Year Investments and Dispositions Summary
Current Year Investments and Dispositions Summary. As of September 30, 2024 (unaudited results) 2024 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 Azusa Canyon
Slide 31: Current Year Investments and Dispositions Summary (Continued)
Current Year Investments and Dispositions Summary (Continued). As of September 30, 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 Ang
Slide 32: Current Year Investments and Dispositions Summary (Continued)
Current Year Investments and Dispositions Summary (Continued). As of September 30, 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
Slide 33: Net Asset Value Components
Net Asset Value Components. As of September 30, 2024 (unaudited and in thousands, except share data) Net Operating Income Pro Forma Net Operating Income (NOI)(1) Three Months Ended Sep 30, 2024 Total operating rental income $238,396 Property operating expenses (54,867) Pro forma effect of uncommence
Slide 34: Notes and Definitions
Notes and Definitions. Adjusted Funds from Operations (“AFFO”): We calculate adjusted funds from operations, or Capital Expenditures, Non-recurring: Expenditures made with respect to a property for AFFO, by adding to or subtracting from FFO, as defined below, the following items: (i) certain non- re
Slide 35: Notes and Definitions
Notes and Definitions. Debt Covenants ($ in thousands) as a measure of our liquidity. EBITDAre and Adjusted EBITDAre should not be considered as alternatives to net income or loss as an indicator of our operating performance. Other Equity REITs September 30, 2024 may calculate EBITDAre and Adjusted
Slide 36: 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 37: Notes and Definitions
Notes and Definitions. • Actual Cash NOI: Represents the actual cash NOI (a non-GAAP measure defined on page 34) SPP Historical Information: The table below reflects selected information related to our SPP as for the repositioning/redevelopment property for the entire reported quarter or from the da
Slide 38: 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: Sep 30, Jun 30, Mar 31, Dec 31, Sep 30, 2024 2024 2024 2023 2023 Three Months Ended Nine Months Ended September 30, September 30, Ending
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