LOS ANGELES, Sept. 5, 2024 /PRNewswire/ -- Rexford Industrial Realty, Inc. (the "Company" or "Rexford Industrial") (NYSE: REXR), a real estate investment trust ("REIT") focused on creating value by investing in and operating industrial properties throughout infill Southern California, today announced that the Company will present at the Barclays 22nd Annual Global Financial Services Conference on September 9, 2024 at 9 a.m. EDT. The Company will also present at the Bank of America Securities 2024 Global Rea ...

Core Viewpoint - Rexford Industrial (REXR) presents a compelling investment opportunity due to its strong income yield of 3.3% and growth potential, despite recent stock price declines [1][12] Company Performance - REXR operates in the infill Southern California market with a low vacancy rate of 3.9% and high base rents averaging $17.11 per square foot [2] - The company has a portfolio of 422 properties with 49.7 million square feet of rentable space, achieving sector-leading NOI growth of 31% annualized over the past five years, compared to a 16% peer average [3] - REXR's net operating margin has increased by 50 basis points year-over-year to 77.7%, contributing to a consolidated NOI growth of 21% from the prior year [3][4] Financial Outlook - Management projects full-year FFO per share of $2.33, representing a 7% growth from 2023, driven by a 7.5% growth in same-property cash NOI [3][4] - REXR anticipates a 35% increase in cash NOI over the next three years through modernization and redevelopment initiatives [3][4] Market Dynamics - The long-term supply/demand imbalance in the Southern California market is expected to support continued rent growth, with tenants indicating a willingness to pay higher rents [4][5] - REXR has $1.4 billion in investments and a pipeline expected to contribute $0.48 net FFO per share by year five [6] Balance Sheet Strength - REXR maintains a strong balance sheet with a net debt to enterprise value of 24% and a low net debt to adjusted EBITDA ratio of 4.6x, along with $2.0 billion in liquidity [6][7] Dividend and Valuation - The current dividend yield is 3.3%, with a payout ratio of 71% and a five-year CAGR of 18% [7] - Although REXR has a forward P/FFO of 21.6, it is below its historical average of 28.3, making the current valuation attractive given expected FFO growth of 10-14% from 2025 to 2027 [8] Preferred Stock Option - The Preferred Series C Stock offers a yield of 6.4% and is cumulative, providing a safer dividend option for conservative investors [9][10]

These stocks have some qualities Buffett likes to see but are too small to be Berkshire investments. There are some characteristics Warren Buffett looks for when selecting stocks for Berkshire Hathaway's (BRK.A 0.74%) (BRK.B 0.86%) portfolio -- stable cash flows, competitive advantages, and good management are some examples. But he also needs a company to be large enough to make an impact on Berkshire's portfolio. In this video, Fool.com contributors Tyler Crowe and Matt Frankel discuss two stocks that coul ...

This REIT is down materially from its 2022 highs, but it continues to operate at a high level as it benefits from a unique regional focus. Rexford Industrial (REXR 1.60%) is offering a 3.3% dividend yield today, which is more than twice the yield of the S&P 500 index. It has increased its dividend annually for a decade and at a rapid pace of more than 10% a year. The stock is still 40% below the highs reached in 2022, despite continued strong operating performance. Here's why you might want to buy this real ...

Feverpitched/iStock via Getty Images Introduction Rexford Industrial (NYSE:REXR) is one of the favorite REITs here on Seeking Alpha. And while most authors focus on the potential capital gains and dividend yield of the common units, I discussed the REIT's preferred shares in an article last year. As the REIT has published financial results on four more quarters since my previous article was published, I thought it's about time to review the REIT's financial performance to see if the preferred shares still o ...

halbergman/E+ via Getty Images Introduction Close to 50% of my portfolio is invested in stocks from the industrial sector. This includes mainly wide-moat companies like anti-cyclical defense contractors, Class I railroads, machinery producers, suppliers of building materials, and others. As the S&P 500 has roughly 8.5% industrial exposure, my 50% exposure looks like a lot. However, less than half of these companies are cyclical, and all companies have business models that make them stand out in a way. That' ...

Company Overview - Verizon (VZ) is recognized as a top dividend stock with a 19-year history of paying growing dividends, outperforming the S&P 500 index with a 30% return since the last analysis [7] - Rexford Industrial (REXR) demonstrates strong operating performance with a 49% weighted average lease spread on a cash basis and a 97.3% occupancy rate, reflecting high demand and low supply in its market [3][10] Financial Performance - Verizon's wireless service revenue grew by 3.5% YoY to $19.8 billion, driven by a 12% increase in consumer postpaid phone gross additions, despite total revenue missing estimates [7][10] - Rexford Industrial achieved an 11% YoY increase in FFO per share and is guiding for same property cash NOI growth of 7-8% and FFO per share growth of 6-7% for the year [3][10] Growth Potential - Verizon's management expects wireless service revenue growth of 2.75% this year, supported by pricing actions and growth in fixed wireless access customers [13] - Rexford Industrial has significant mark-to-market leasing potential, with management estimating its overall portfolio-wide leases to be 26% undervalued on a cash basis [3][16] Valuation Metrics - Verizon is currently priced at $40.09 with a forward PE of 8.8x, significantly below its historical PE of 13.6x, indicating potential undervaluation [13] - Rexford Industrial is priced at $49.05 with a forward P/FFO of 20.8, below its historical P/FFO of 28.3, suggesting it is undervalued relative to its historical performance [4][10] Dividend Yield - Verizon offers a 6.6% dividend yield, well-covered by a 58% payout ratio, with expectations for dividend growth to increase as leverage improves [13] - Rexford Industrial provides a 3.4% dividend yield, supported by a 71% payout ratio, with potential for market-beating returns when combined with anticipated FFO/share growth [16]

In March 2024, we issued $575.0 million in aggregate principal amount of 4.375% exchangeable senior unsecured notes due 2027 (the "2027 Exchangeable Notes") and $575.0 million in aggregate principal amount of 4.125% exchangeable senior unsecured notes due 2029 (the "2029 Exchangeable Notes" and together with the 2027 Exchangeable Notes, the "Exchangeable Notes"). The net proceeds from the issuance, after deducting the initial purchasers' discounts, underwriting commissions and other offering expenses, were ...

Financial Data and Key Metrics Changes - The second quarter consolidated net operating income (NOI) increased by 21% year-over-year, and funds from operations (FFO) per share rose by 11% compared to the prior year quarter [31][72] - Net operating margins improved by 50 basis points to 77.7% compared to the prior year quarter, indicating enhanced operating leverage [32] - Cash NOI is projected to grow to $886 million over the next three years, representing a 35% internal growth, assuming today's market rents and no future acquisitions [22][75] Business Line Data and Key Metrics Changes - The company completed 2.3 million square feet of leasing activity in the second quarter, achieving leasing spreads of 68% on a net effective basis and 49% on a cash basis [30][57] - Same-property NOI growth was reported at 6% on a net effective basis and 9.1% on a cash basis, driven by strong leasing spreads executed over the trailing 12 months [57] - The average annual embedded rent steps for the total portfolio increased to 3.7%, contributing an estimated $47 million [42] Market Data and Key Metrics Changes - The infill Southern California industrial market continues to show resilience, with a same-property portfolio occupancy rate of 97.3%, up 70 basis points [31][50] - Year-over-year, rents for high-quality products comparable to the company's portfolio increased by about 4.5%, outperforming the overall infill market [51] - The market is experiencing nominal volatility in rents, with a 2% sequential decline for highly functional products comparable to the company's assets [68] Company Strategy and Development Direction - The company focuses on value-add modernization, repositioning, and redevelopment of vintage properties, which is the primary driver of growth [26][48] - The company has a substantial pipeline of value-add repositioning and redevelopment projects, with 4.2 million square feet in process or projected to start within the next 18 months [95] - The company aims to differentiate itself through high-quality, highly functional spaces, which are expected to outperform lower-quality assets in the market [30][131] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the long-term fundamentals of the infill Southern California market, despite near-term volatility in occupancy and rents [35][181] - The company anticipates capturing an additional $82 million of NOI from mark-to-market adjustments over the next three years [99][111] - Management noted that the tenant base remains strong, with bad debt as a percentage of revenue at 30 basis points, indicating resilience [55][189] Other Important Information - The company disposed of four properties for an aggregate sales price of $37 million, generating a weighted average unlevered internal rate of return (IRR) of 12.9% [94] - The company has nearly $2 billion of total liquidity, with no near-term debt maturities until mid-2026 [73] - Full-year 2024 FFO per share guidance has been increased to a range of $2.32 to $2.34, reflecting 6% to 7% year-over-year earnings growth [100] Q&A Session Summary Question: What is the company's appetite for acquisitions today? - The company maintains a focus on quality acquisitions rather than volume, looking for appropriate yield profiles and investments that deliver cash flow growth [80][81] Question: Can you provide an update on the CFO search and the COO position? - The company is seeing strong candidates for the CFO position and views the COO role as an opportunity to drive further efficiencies and operating leverage [82][83] Question: What are the dynamics in the Inland Empire West submarket? - The company reports strong leasing activity in the Inland Empire West, indicating it is a strong performing market despite some nominal volatility [143][144] Question: How does the company view the competitive landscape? - The company believes it competes on a different playing field due to its focus on high-quality, highly functional spaces, which are scarce in the market [131][152]

Realized & Future Value Creation From Repositioning & Redevelopment1 Cumulative Projected Net Value Creation by 2026 Repositioning & Redevelopment In-Process & Pipeline (expected to start within 18 months) Investor Presentation July 2024 www.rexfordindustrial.com Rexford Industrial Realty NYSE: REXR Forward Looking Statements 12822 MONARCH STREET, GARDEN GROVE 2 This presentation contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. We caution inve ...