Rexford Industrial Realty (REXR) Q4 2023 earnings summary

Executive summary

• Portfolio spans 374 properties and 46M SF, concentrated in infill Southern California; five-year average annual growth was 16% for consolidated NOI and 32% for FFO/share.

• Internal initiatives are projected to increase annualized cash NOI from $568M in 4Q23 to $808M in 2026, a 42% increase, excluding future rent growth and acquisitions.

Financial highlights

• Q4 same-property NOI grew 8.4% GAAP and 9.5% cash; consolidated portfolio NOI rose 16.3%, Core FFO increased 31.5%, and Core FFO/share rose 14.3%.

• Q4 net income was $67.3M versus $45.7M; net income attributable to common stockholders was $61.7M versus $40.7M.

• FY2023 net income attributable to common stockholders was $227.4M, or $1.12 per diluted share; Core FFO was $444.8M, up 32.9%.

• FY consolidated portfolio NOI rose 26.4% and cash NOI 29.4%; same-property NOI rose 8.2% and cash NOI 10.0%.

Outlook and guidance

• FY2024 diluted EPS guidance is $1.11–$1.14 and Core FFO/share guidance is $2.27–$2.30, representing 4%–5% annual Core FFO/share growth.

• FY2024 same-property NOI growth guidance is 4%–5% GAAP and 7%–8% cash; average occupancy guidance is 96.5%–97.0%.

• FY2024 G&A guidance is $83M, including estimated $36M of non-cash equity compensation; net interest expense guidance is $60M–$61M.

• Guidance reflects the in-place portfolio as of Feb. 6, 2024, and excludes prospective acquisitions, dispositions and related balance-sheet activity not yet closed.