Rexford Industrial Realty Reports 15.6% Increase in Net Income for 2024

Rexford Industrial Realty, Inc. (REXR) reported a 15.6% increase in net income attributable to common stockholders for the year ended December 31, 2024, reaching $262.9 million, compared to $227.4 million in 2023. Core funds from operations (Core FFO) attributable to common stockholders also saw a significant rise, increasing by 15.0% to $511.7 million. Net operating income (NOI) experienced a 17.3% increase, reaching $711.8 million for the year. The company's total portfolio occupancy at year-end was 91.3%, while the same-property portfolio average occupancy for the year was 96.6%, ending at 94.1% at year-end.

The company's growth was fueled by significant acquisitions. During 2024, REXR completed $1.5 billion in total investments, acquiring 56 properties with a combined 4.6 million rentable square feet of buildings on 218.3 acres of land. This acquisition activity was offset by dispositions; the company sold five properties totaling 170,293 rentable square feet for a gross sales price of $44.3 million, resulting in $18.0 million in gains on the sale of real estate. Repositioning and redevelopment efforts also contributed to the company's performance, with 10 properties totaling 826,442 rentable square feet stabilized during the year. As of December 31, 2024, 12 repositioning/redevelopment properties with a combined 1,175,688 rentable square feet were in the lease-up stage.

REXR's equity activities included issuing 12,666,152 shares of common stock for net proceeds of $650.2 million through various transactions, including a public offering and forward equity sale agreements. The company also completed the issuance of $1.126 billion in exchangeable senior notes in March 2024. As of the filing date, the company had the capacity to issue up to $927.4 million of additional shares under its at-the-market equity offering program and $995.0 million available for borrowings under its credit agreement. The company employed 271 individuals as of December 31, 2024, supported by five regional offices in Southern California.

The company's financial performance was influenced by several factors, including market conditions, leasing activity, and acquisition and redevelopment costs. While market rents declined by approximately 12.5% in 2024, REXR's portfolio experienced a smaller decline of approximately 8.3%, attributed to its focus on high-quality, functional properties in prime locations. The company's leasing spreads were strong, with 38.9% on a GAAP basis and 28.6% on a cash basis for all new and renewal leases. The company highlighted risks associated with its business, including economic downturns, interest rate changes, competition, tenant defaults, and environmental liabilities. The company also discussed its plans to continue growing its portfolio through acquisitions and value-add repositioning and redevelopment activities. The company's outlook is positive, based on the continued favorable long-term supply-demand fundamentals in its target markets.