Rexford: Rexford Industrial Announces First Quarter 2025 Financial Results

LOS ANGELES , April 16, 2025 /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 2025. First Quarter 2025 Financial and Operational Highlights Net income attributable to common stockholders of $68.3 million , or $0.30 per diluted share, as compared to $58.6 million , or $0.27 per diluted share, for the prior year. Company share of Core FFO of $141.0 million , an increase of 14.1% as compared to the prior year. Company share of Core FFO per diluted share of $0.62 , an increase of 6.9% as compared to the prior year. Consolidated Portfolio NOI of $193.6 million , an increase of 18.4% as compared to the prior year. Same Property Portfolio NOI increased 0.7% and Same Property Portfolio Cash NOI increased 5.0% as compared to the prior year. Average Same Property Portfolio occupancy of 95.9%. Executed 2.4 million rentable square feet of new and renewal leases. Comparable rental rates increased by 23.8%, compared to prior rents, on a net effective basis and by 14.7% on a cash basis. Sold one property for a sales price of $52.5 million . Subsequent to quarter end, sold one property for a sales price of $50.9 million . In aggregate, these transactions generated an 11.9% unlevered IRR to the Company. Ended the quarter with a low-leverage balance sheet measured by a Net Debt to Enterprise Value ratio of 22.8% and Net Debt to Adjusted EBITDA re of 3.9x. "Rexford Industrial delivered solid first quarter performance, underscoring the strength of our platform and the discipline of our execution," stated Howard Schwimmer and Michael Frankel , Co-Chief Executive Officers of the Company. "Our differentiated business model and investment-grade balance sheet will continue to afford us the ability to unlock substantial embedded growth and drive long-term shareholder value, while navigating current macroeconomic uncertainty." Financial Results The Company reported net income attributable to common stockholders for the first quarter of $68.3 million , or $0.30 per diluted share, compared to $58.6 million , or $0.27 per diluted share, for the prior year quarter. Net income in the first quarter includes $13.2 million of gains on sale of real estate for which there was no comparable amount during the prior year quarter. The Company reported Core FFO for the first quarter of $141.0 million , representing a 14.1% increase compared to $123.5 million for the prior year quarter. The Company reported Core FFO of $0.62 per diluted share, representing an increase of 6.9% compared to $0.58 per diluted share for the prior year quarter. In the first quarter, the Company's consolidated portfolio NOI and Cash NOI increased 18.4% and 20.4%, respectively, compared to the prior year quarter. In the first quarter, the Company's Same Property Portfolio NOI increased 0.7% compared to the prior year quarter, driven by a 1.2% increase in Same Property Portfolio rental income. Same Property Portfolio Cash NOI increased 5.0% compared to the prior year quarter. Operating Results Q1 2025 Leasing Activity Releasing Spreads (1) # of Leases Executed SF of Leasing Net Effective Cash New Leases 54 882,403 3.2 % (5.4) % Renewal Leases 84 1,511,946 29.4 % 20.2 % Total Leases 138 2,394,349 23.8 % 14.7 % (1) Net effective and cash rent statistics only include leases in which there is comparable lease data. Please see the Company's supplemental financial reporting package for additional detail. As of March 31, 2025 , the Company's Same Property Portfolio occupancy was 95.7%. Average Same Property Portfolio occupancy for the first quarter was 95.9%. The Company's consolidated portfolio, excluding value-add repositioning assets, was 95.1% occupied and 95.5% leased, and the Company's consolidated portfolio, including value-add repositioning assets, was 89.6% occupied and 90.4% leased. Transaction Activity During the first quarter of 2025, the Company disposed of 1055 Sandhill Avenue, Carson , located in the Los Angeles - South Bay submarket, for $52.5 million or $410 per square foot. The 127,775-square-foot, single-tenant industrial building was sold vacant to a user for an unlevered IRR to the Company of 10.5%. Subsequent to the first quarter of 2025, the Company disposed of 20 Icon, Lake Forest , located in the Orange County - South submarket, for $50.9 million or $497 per square foot. The 102,299-square-foot, single-tenant industrial flex building was 100% occupied at the time of sale and was sold to a user for an unlevered IRR to the Company of 13.3%. The Company currently has no acquisitions under contract or accepted offer. Separately, the Company has $30 million of dispositions under contract or accepted offer. These transactions are subject to customary due diligence and closing conditions; as such, there is no guarantee the Company will close on these transactions. During the first quarter of 2025, the Company stabilized five repositioning projects, totaling 560,255 square feet, representing a total investment of $145.4 million . The projects achieved a weighted average unlevered stabilized yield of 7.6% on total investment. Balance Sheet The Company ended the first quarter of 2025 with $504.6 million in unrestricted cash on hand, $50.1 million in restricted cash and $995.0 million available under its unsecured revolving credit facility. As of March 31, 2025, the Company had $3.4 billion of outstanding debt, with an average interest rate of 3.8%, an average term-to-maturity of 3.3 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. On March 14, 2025 , Fitch Ratings, Inc. affirmed the Company's Long-Term Issuer Default Rating of BBB+ with a Stable Outlook. During the first quarter of 2025, the Company settled the outstanding forward equity sale agreement related to its March 2024 public offering by issuing 9,776,768 shares of common stock for net proceeds of $478.0 million , based on a weighted average forward price of $48.89 per share at settlement. During the first quarter of 2025, the Company did not execute on its ATM Program. As of March 31, 2025 , the Company's ATM Program had approximately $927.4 million of remaining capacity. During the first quarter of 2025, the Company did not execute on its $300 million common stock repurchase program, which was authorized through February 3, 2027 . Dividends On April 14, 2025 , the Company's Board of Directors authorized a dividend in the amount of $0.43 per share for the second quarter of 2025, payable in cash on July 15, 2025 , to common stockholders and common unit holders of record as of June 30, 2025 . On April 14, 2025 , 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 30, 2025 , to preferred stockholders of record as of June 16, 2025 . Guidance The Company is updating its full year 2025 guidance as indicated below. Please refer to the Company's supplemental information package for a complete detail of guidance and the 2025 Guidance Rollforward. 2025 Outlook (1) Q1 2025 Updated Guidance Initial Guidance Net Income Attributable to Common Stockholders per diluted share $1.31 - $1.35 $1.21 - $1.25 Company share of Core FFO per diluted share $2.37 - $2.41 $2.37 - $2.41 Same Property Portfolio NOI Growth - Net Effective 0.75% - 1.25% 0.75% - 1.25% Same Property Portfolio NOI Growth - Cash 2.25% - 2.75% 2.25% - 2.75% Average Same Property Portfolio Occupancy (Full Year) (2) 95.5% - 96.0% 95.5% - 96.0% General and Administrative Expenses (3) +/- $82.0M +/- $82.0M Net Interest Expense +/- $109.5M $110.5M - $111.5M (1) 2025 Guidance represents the in-place portfolio as of April 16, 2025, and does not include any assumptions for additional prospective acquisitions, dispositions or related balance sheet activities that have not closed. (2) As of April 16, 2025, our 2025 Same Property Portfolio consisted of 291 properties totaling 38.3 million rentable square feet representing approximately 76% of Q1 2025 consolidated portfolio NOI. As of December 31, 2024, Same Property Portfolio ending occupancy was 96.3% for the 2025 Same Property Portfolio. For the full year 2024, average Same Property Portfolio occupancy was 96.8% for the 2025 Same Property Portfolio. (3) 2025 General and Administrative expense guidance includes estimated non-cash equity compensation expense of $37.3 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, tariffs, 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 Earnings Presentation The Company's supplemental financial reporting package as well as an earnings 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 17, 2025 , at 1:00 p.m. Eastern Time . To participate in the live telephone conference call, pl