On July 17, 2024, Rexford Industrial Realty Inc (REXR, Financial) released its 8-K filing detailing the financial and operational results for the second quarter of 2024. Rexford Industrial Realty Inc is a real estate investment trust engaged in the acquisition, ownership, and operation of industrial properties in Southern California, focusing on infill markets with limited developable land.
Performance Overview
Rexford Industrial Realty Inc reported net income attributable to common stockholders of $79.8 million, or $0.37 per diluted share, compared to $51.6 million, or $0.26 per diluted share, for the same quarter last year. This represents a significant year-over-year increase in net income, highlighting the company's strong performance.
The company’s share of Core Funds From Operations (Core FFO) was $129.6 million, an increase of 19.5% compared to the prior year quarter. Core FFO per diluted share rose by 11.1% to $0.60 from $0.54 in the previous year.
Operational Highlights
Rexford Industrial Realty Inc's consolidated portfolio Net Operating Income (NOI) increased by 20.9% to $181.1 million, while Same Property Portfolio NOI grew by 6.0%. The company maintained a high average Same Property Portfolio occupancy rate of 96.9%, reflecting strong tenant demand.
Comparable rental rates saw a substantial increase of 67.7% on a GAAP basis and 49.0% on a cash basis for 2.3 million rentable square feet of new and renewal leases. This indicates robust leasing activity and favorable market conditions.
Strategic Acquisitions and Dispositions
During the second quarter, Rexford Industrial Realty Inc completed three acquisitions totaling $169.5 million and sold four properties for an aggregate sales price of $37.0 million. These strategic transactions are expected to enhance the company's portfolio and generate attractive returns.
Balance Sheet and Liquidity
As of June 30, 2024, the company had $125.7 million in cash on hand and $995.0 million available under its unsecured revolving credit facility. Rexford Industrial Realty Inc's net debt-to-enterprise value ratio stood at a low 24.1%, indicating a strong balance sheet and financial flexibility.
Dividend Declaration
On July 15, 2024, the company's Board of Directors authorized a dividend of $0.4175 per share for the third quarter of 2024, payable on October 15, 2024, to common stockholders and common unit holders of record as of September 30, 2024. Additionally, quarterly dividends were declared for the Series B and Series C Cumulative Redeemable Preferred Stock.
Guidance Update
Rexford Industrial Realty Inc updated its full-year 2024 guidance, projecting net income attributable to common stockholders per diluted share to be in the range of $1.19 to $1.21 and Core FFO per diluted share to be between $2.32 and $2.34. The company expects Same Property Portfolio NOI growth of 4.25% to 5.25% on a GAAP basis and 7.0% to 8.0% on a cash basis.
Conclusion
Rexford Industrial Realty Inc's strong financial performance in Q2 2024 underscores the resilience of its business model and strategic focus on high-demand, low-supply infill markets in Southern California. The company's robust growth in net income, Core FFO, and NOI, coupled with strategic acquisitions and a solid balance sheet, positions it well for continued success.
For more detailed information, please refer to the company's 8-K filing.
Explore the complete 8-K earnings release (here) from Rexford Industrial Realty Inc for further details.
