Rexford Industrial Realty (REXR) Q3 2024 earnings summary

Executive summary

• Achieved 5.4% FFO per share growth year-over-year for Q3, and 9.3% growth for the first nine months of 2024 compared to the prior year period.

• Net income attributable to common stockholders rose 22.7% to $203.5M for the nine months ended September 30, 2024, with Q3 net income at $70.7M, up from $61.8M in Q3 2023.

• Portfolio consists of 424 properties and 720 buildings totaling 50M square feet, serving over 1,600 customers, with Q3 portfolio occupancy at 97.6% and same property average occupancy at 96.9%.

• Leasing activity remains robust, with 7.1M sq ft of leases executed year-to-date and Q3 leasing spreads of 39% GAAP and 27% cash.

• Embedded cash NOI growth of 34% projected over the next three years, assuming no market rent growth.

Financial highlights

• Q3 FFO per share was $0.59, up 5.4% year-over-year; Core FFO for the nine months was $383.1M ($1.77 per diluted share), up 17.5% and 9.3% year-over-year, respectively.

• Q3 2024 same property GAAP NOI grew 5.3% year-over-year; consolidated portfolio NOI up 17.6% year-over-year.

• Rental income for Q3 2024 was $238.4M, up 16.7% year-over-year; total revenues reached $241.8M.

• Leasing spreads in Q3 were 39% net effective and 27% cash, with annual embedded rent steps averaging 3.9%.

• Net debt to EBITDA at 4.7x; net debt to enterprise value at 22.2%.

Outlook and guidance

• 2024 FFO per share guidance raised to $2.33–$2.35, representing 6–7% YoY growth at the midpoint.

• 2024 same property NOI growth guidance set at 4.25%–4.75% GAAP and 7%–7.5% cash.

• Average occupancy for 2024 expected at 96.5%–96.75%.

• Management expects continued volatility due to macroeconomic and political uncertainty, but long-term fundamentals remain strong.

• Guidance may be impacted by interest rates, inflation, economic conditions, and investment timing.