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Rexford Industrial Realty(REXR) - 2025 Q1 - Quarterly Results
REXRRexford Industrial Realty(REXR)2025-04-16 20:30
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Financial Performance - Total rental income for Q1 2025 was 248.8million,anincreasefrom248.8 million, an increase from 239.7 million in Q4 2024, representing a growth of 4.5%[12] - Net income for Q1 2025 reached 74.0million,comparedto74.0 million, compared to 64.9 million in Q4 2024, marking a growth of 14.5%[12] - Net Operating Income (NOI) for Q1 2025 was 193.6million,upfrom193.6 million, up from 183.7 million in Q4 2024, reflecting a growth of 5.0%[12] - Core FFO for Q1 2025 was 141.0million,anincreaseof9.7141.0 million, an increase of 9.7% from 128.6 million in Q4 2024[12] - Total revenues for Q1 2025 reached 252,287,000,a17.8252,287,000, a 17.8% increase from 214,096,000 in Q1 2024[29] - Rental income increased to 248,821,000inQ12025,up17.9248,821,000 in Q1 2025, up 17.9% from 210,990,000 in Q1 2024[29] - Net income attributable to common stockholders was 68,346,000,representinga16.668,346,000, representing a 16.6% increase compared to 58,639,000 in Q1 2024[29] - Funds From Operations (FFO) for Q1 2025 was 147,631,000,a13.1147,631,000, a 13.1% increase from 130,555,000 in Q1 2024[35] - Core FFO for Q1 2025 was 149,558,000,up13.6149,558,000, up 13.6% from 131,662,000 in Q1 2024[35] - Net income per common share (basic and diluted) for Q1 2025 was 0.30,comparedto0.30, compared to 0.27 in Q1 2024[29] Occupancy and Leasing - Total portfolio occupancy decreased to 89.6% in Q1 2025 from 91.3% in Q4 2024[12] - Same Property Portfolio NOI growth was 0.7% in Q1 2025, while Same Property Cash NOI growth was 5.0%[12] - The quarterly weighted average occupancy rate decreased to 95.9% in Q1 2025 from 96.9% in Q1 2024, a decline of 100 basis points[52] - The consolidated portfolio's ending occupancy rate was 89.6% as of March 31, 2025[77] - Total leasing activity for Q1 2025 reached 2,394,349 square feet, with new leases accounting for 882,403 square feet and renewal leases for 1,511,946 square feet[73] - The retention rate for leases was 68%, and the retention plus backfill rate was 82%[73][74] - The total leased percentage of the portfolio stands at 90.3%, excluding properties under repositioning or redevelopment[86] Debt and Equity - The company reported a net debt to total combined market capitalization ratio of 22.8% in Q1 2025, down from 26.5% in Q4 2024[12] - Total equity market capitalization increased to 9.74billioninQ12025from9.74 billion in Q1 2025 from 9.23 billion in Q4 2024[12] - Net debt decreased to 2,874,804,000from2,874,804,000 from 3,323,651,000, a reduction of 13.5%[57] - The company reported a net debt to Adjusted EBITDAre ratio of 3.9x, down from 4.6x in the previous quarter[57] - Total consolidated debt amounts to 3,379,383,withaleverageratioof20.73,379,383, with a leverage ratio of 20.7%, significantly below the maximum allowable of 60%[1][120] - The company has a 1.0 billion revolving credit facility with a maturity date of May 26, 2026, and an effective interest rate of 5.235%[63] Guidance and Projections - Net income attributable to common stockholders per diluted share for Q1 2025 was 0.30,withguidancefor2025setat0.30, with guidance for 2025 set at 1.31 - 1.35[19]−CoreFFOperdilutedshareguidancefor2025ismaintainedat1.35[19] - Core FFO per diluted share guidance for 2025 is maintained at 2.37 - 2.41,reflectinga12.41, reflecting a 1% to 3% annual growth[23] - Same Property Portfolio NOI growth (GAAP) guidance for FY 2025 is set at 0.75% - 1.25%, with YTD results showing a growth of 0.7%[19] - Cash Same Property Portfolio NOI growth for FY 2025 guidance is 2.25% - 2.75%, with YTD results at 5.0%[19] - Average Same Property Portfolio occupancy for the full year is guided at 95.5% - 96.0%, with YTD results at 95.9%[19] Expenses and Costs - Total operating expenses increased to 161,869,000 in Q1 2025, up from 133,740,000inQ12024,reflectinga21.0133,740,000 in Q1 2024, reflecting a 21.0% rise[29] - Depreciation and amortization expenses rose to 86,740,000 in Q1 2025, compared to 66,278,000inQ12024,markinga30.966,278,000 in Q1 2024, marking a 30.9% increase[30] - Net General and Administrative Expenses guidance for 2025 is approximately 82.0 million, with YTD expenses reported at 19.9million[19]−NetInterestExpenseguidancefor2025isapproximately19.9 million[19] - Net Interest Expense guidance for 2025 is approximately 109.5 million, with YTD expenses reported at 27.3million[19]CapitalExpendituresandInvestments−Nonrecurringcapitalexpendituresamountedto27.3 million[19] Capital Expenditures and Investments - Nonrecurring capital expenditures amounted to 43,361,000, primarily for repositioning and redevelopment projects[88] - The estimated remaining cost to complete repositioning/redevelopment projects is 163,536[1]−Thecompanyhasidentifiedpotentialfuturerepositioningandredevelopmentprojectstotalingapproximately2,000,000RSFacrossvariouslocations[95]PropertyandPortfolioDetails−Thecompanyreportedatotalof50,952,137RSF(RentableSquareFeet)initsportfolioasofMarch31,2025,anincreasefrom49,162,216RSFayearago[141]−Theaveragein−placeannualbaserent(ABR)persquarefootacrosstheportfoliowas163,536[1] - The company has identified potential future repositioning and redevelopment projects totaling approximately 2,000,000 RSF across various locations[95] Property and Portfolio Details - The company reported a total of 50,952,137 RSF (Rentable Square Feet) in its portfolio as of March 31, 2025, an increase from 49,162,216 RSF a year ago[141] - The average in-place annual base rent (ABR) per square foot across the portfolio was 16.97[77] - The top 20 tenants occupy a total of 8,604,329 square feet, contributing 160,394,000inannualbaserent(ABR),whichrepresents20.4160,394,000 in annual base rent (ABR), which represents 20.4% of the total ABR[82] - The largest tenant, Tireco, Inc., leases 1,101,840 square feet with an ABR of 19,251,000, accounting for 2.5% of the total ABR[82]