Rexford Industrial Realty(REXR) - 2025 Q1 - Quarterly Report

Financial Performance - Net income attributable to common stockholders increased by 16.6% to $68.3 million for the three months ended March 31, 2025, compared to the prior year[197]. - Core funds from operations (Core FFO) attributable to common stockholders increased by 14.1$141.0 million for the three months ended March 31, 2025, compared to the prior year[197]. - Net operating income (NOI) increased by 18.4% to $193.6 million for the three months ended March 31, 2025, compared to the prior year[197]. - For the three months ended March 31, 2025, net income was$74,048,000, an increase from $64,277,000 in the same period of 2024, representing a growth of approximately 12.5$147,631,000, up from $130,555,000 in Q1 2024, indicating a year-over-year increase of about 13.1$149,558,000, compared to $131,662,000 in Q1 2024, reflecting a growth of approximately 13.6$193,560,000, an increase from $163,508,000 in Q1 2024, which is a rise of about 18.4$178,857,000, compared to $148,549,000 in Q1 2024, showing an increase of approximately 20.3$174,919,000, up from $145,226,000 in Q1 2024, representing a growth of about 20.5$37.8 million, or 17.9%, to $248.8 million for the three months ended March 31, 2025, compared to$211.0 million for the same period in 2024[249]. - Same Property Portfolio rental income increased by $2.2 million, or 1.2$190.3 million for the three months ended March 31, 2025, compared to $188.1 million for the same period in 2024[249]. - Total Portfolio property expenses increased by$7.8 million, or 16.4%, to $55.3 million for the three months ended March 31, 2025, compared to$47.5 million for the same period in 2024[255]. - Total Portfolio depreciation and amortization expense increased by $20.5 million, or 30.9$12.6 million, or 86.0%, during the three months ended March 31, 2025, primarily due to a $13.2 million increase related to the exchangeable notes offering[259]. - Same Property Portfolio tenant reimbursements revenue increased by$0.6 million, or 1.8%, during the three months ended March 31, 2025, compared to the same period in 2024[251]. - Total Portfolio general and administrative expenses decreased by $0.1 million, or 0.6$10 thousand, or 7.6%, during the three months ended March 31, 2025, compared to the same period in 2024[253]. Capital Expenditures and Investments - The company anticipates requiring approximately $163.5 million for capital expenditures related to the repositioning/redevelopment of 31 properties[303]. - The company aims to acquire properties through off-market transactions that are often operating at below-market occupancy or rent[210]. - The company has not acquired any properties year to date as of the filing date of the Quarterly Report, but is monitoring potential investment opportunities[302]. - The company completed the sale of one property for a gross sales price of$52.5 million and net cash proceeds of $50.1 million during the three months ended March 31, 2025[291]. - During the first quarter of 2025, the company sold one property with 127,775 rentable square feet for a gross sale price of$52.5 million, recognizing $13.2 million in gains on sale of real estate[203]. Debt and Liquidity - As of March 31, 2025, the company had outstanding debt totaling$3.4 billion, with $567.7 million due within the next 12 months[280]. - The company reported cash and cash equivalents of$504.6 million as of March 31, 2025, with no borrowings outstanding under its unsecured revolving credit facility[281]. - Total scheduled interest payments on fixed-rate debt and projected net interest payments on variable-rate debt for the next 12 months amount to $113.6 million[280]. - The company expects to meet its short-term liquidity requirements through available cash, cash flow from operations, and drawing on its unsecured revolving credit facility[277]. - Cash flow from operations is a key liquidity source, influenced by occupancy levels, lease rates, rent collection, operating costs, and expense pass-throughs[282]. - As of March 31, 2025, approximately$927.4 million of common stock remains available for sale under the 2023 ATM Program[286]. - The company has an unsecured revolving credit facility with a borrowing capacity of $1.0 billion, maturing on May 26, 2026[294]. - The company authorized a stock repurchase program for up to$300.0 million of its outstanding common stock, which expires on February 3, 2027[308]. - Consolidated indebtedness as of March 31, 2025, is $3.4 billion, with a net debt to total combined market capitalization ratio of approximately 22.8%[315]. - The effective interest rate on total consolidated debt is 3.835% as of March 31, 2025[314]. - The company is in compliance with all required quarterly financial debt covenants as of March 31, 2025[320]. - The company maintains a ratio of total indebtedness to total asset value of not more than 60% as part of its debt covenants[318]. Market Conditions and Risks - Market rent growth within infill Southern California markets has decreased approximately 18% since peaking in mid-2023, while the Company's portfolio has seen a decrease of approximately 14%[200]. - Increased construction materials and labor costs, along with longer lead times for governmental approvals, may lead to higher budgeted and actual construction costs, potentially impacting future earnings[222]. - Inflation has resulted in increased operating expenses and capital expenditures, but the company believes that contractual rent increases may offset some of these costs[325]. - The company uses interest rate swaps to hedge against interest rate risks related to borrowings[326]. - If SOFR changes, there would be no impact on interest expense or future earnings and cash flows due to the fixed-rate nature of the debt[327]. - Interest risk estimates are based on hypothetical interest rates affecting financial instruments, with sensitivity analysis considering variable rate debt[328].