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Sep 30, 2023

Rexford Industrial Q3 2023 Earnings Report

Announced financial results for the third quarter of 2023, demonstrating strong growth in Core FFO, NOI, and leasing spreads.

Key Takeaways

Rexford Industrial reported a strong third quarter in 2023, with a net income of $56.3 million, Core FFO of $115.0 million, and a consolidated portfolio NOI of $156.1 million. The company completed six acquisitions for $314.8 million and saw significant increases in rental rates and occupancy.

Net income attributable to common stockholders was $56.3 million, or $0.27 per diluted share.

Company share of Core FFO reached $115.0 million, a 33.5% increase year-over-year.

Consolidated Portfolio Net Operating Income (NOI) increased by 27.0% to $156.1 million.

Comparable rental rates on new and renewal leases increased by 64.8% on a GAAP basis and 51.4% on a cash basis.

Total Revenue
$204M
Previous year: $163M
+25.6%
EPS
$0.56
Previous year: $0.5
+12.0%
Avg. occupancy
97.8%
Previous year: 98.6%
-0.8%
Cash rent spread
51.4%
Gross Profit
$157M
Previous year: $123M
+27.8%
Cash and Equivalents
$83.3M
Previous year: $37.1M
+124.2%
Total Assets
$10.6B
Previous year: $8.9B
+18.9%

Rexford Industrial

Rexford Industrial

Rexford Industrial Revenue by Segment

Forward Guidance

The Company is updating its full year 2023 guidance. The Core FFO guidance refers to the Company’s in-place portfolio as of October 18, 2023 and the imminent closing of $245.0 million of transactions in the LA — San Gabriel Valley market, and does not include any assumptions for additional acquisitions, dispositions or related balance sheet activities that have not closed.

Positive Outlook

  • Net Income Attributable to Common Stockholders per diluted share: $1.06 - $1.08
  • Company share of Core FFO per diluted share: $2.16 - $2.18
  • Same Property Portfolio NOI Growth - GAAP: 8.00% - 8.25%
  • Same Property Portfolio NOI Growth - Cash: 9.75% - 10.00%
  • Average Same Property Portfolio Occupancy (Full Year): +/- 97.75%

Challenges Ahead

  • General and Administrative Expenses: $76.0M - $76.5M
  • Net Interest Expense: $62.0M - $62.5M
  • Potential impacts related to interest rates.
  • Potential impacts related to inflation.
  • Potential impacts related to the economy.

Revenue & Expenses

Visualization of income flow from segment revenue to net income