Rexford Industrial Realty(US:REXR)2022-07-26 01:41Financial Performance - Net income attributable to common stockholders increased by 76.0% to $80.0 million for the six months ended June 30, 2022, compared to the prior year[194]. - Core funds from operations (Core FFO) attributable to common stockholders increased by 56.5% to $158.3 million for the six months ended June 30, 2022, compared to the prior year[194]. - Net operating income (NOI) increased by 41.7% to $220.7 million for the six months ended June 30, 2022, compared to the prior year[194]. - Net income for the six months ended June 30, 2022, was $89.8 million, an increase of $33.1 million, or 58.4%, compared to the same period in 2021[261]. - Net income for Q2 2022 was $40.9 million, a 57% increase from $26.0 million in Q2 2021[288]. - Total Portfolio rental revenue increased by $36.3 million, or 41.8%, during the three months ended June 30, 2022, compared to the same period in 2021[248]. - Total Portfolio revenues increased by $85.7 million, or 42.0% for the six months ended June 30, 2022, compared to the same period in 2021[265]. - Funds From Operations (FFO) attributable to common stockholders was $170.395 million for the six months ended June 30, 2022, compared to $114.442 million for the same period in 2021[282]. Leasing Activity - Executed a total of 195 new and renewal leases with a combined 2.3 million rentable square feet, with leasing spreads of 77.7% on a GAAP basis and 59.5% on a cash basis[194]. - The average effective rent per square foot for new leases in Q2 2022 was $22.98, with a GAAP leasing spread of 107.6%[226]. - The average effective rent per square foot for renewal leases in Q2 2022 was $19.48, with a GAAP leasing spread of 73.0%[226]. - The company renewed 124 leases for 1.3 million rentable square feet during the six months ended June 30, 2022, resulting in a retention rate of 71.0%[232]. - Scheduled lease expirations represent approximately 6.6% and 14.6% of the total rentable square footage for the remainder of 2022 and 2023, respectively[232]. Property Acquisitions and Dispositions - Completed 14 acquisitions representing 17 properties with 1.5 million rentable square feet for an aggregate purchase price of $457.7 million in Q1 2022[199]. - Completed the acquisition of 18 properties with 1.4 million rentable square feet for an aggregate purchase price of $598.9 million in Q2 2022[199]. - Year to date, the company acquired 41 properties totaling 4.4 million rentable square feet for an aggregate purchase price of $1.7 billion, with over $500 million of acquisitions under contract or letter of intent[318]. - The company completed the disposition of one property for a sales price of $16.5 million during the first half of 2022[307]. Occupancy Rates - Total portfolio occupancy at June 30, 2022 was 95.2%[194]. - As of June 30, 2022, the consolidated portfolio occupancy rate was approximately 95.2%, while the stabilized portfolio occupancy rate was approximately 98.2%[222]. - Same Property Portfolio occupancy was approximately 98.9% as of June 30, 2022, compared to 98.4% in 2021[243]. - The weighted average occupancy for the Same Property Portfolio was approximately 99.1% for the three months ended June 30, 2022, compared to 98.1% in 2021[243]. Property Expenses and Income - Property expenses for the Same Property Portfolio increased by $2.4 million, or 11.0%, during the three months ended June 30, 2022[245]. - Same Property Portfolio property expenses increased by $5.0 million, or 11.6%, while Total Portfolio property expenses increased by $20.7 million, or 43.0%, during the six months ended June 30, 2022, compared to the same period in 2021[270]. - Total Portfolio property expenses increased by $10.9 million, or 44.2%, during the three months ended June 30, 2022, compared to the same period in 2021[254]. - Total Portfolio tenant reimbursements revenue increased by $16.2 million, or 48.0% during the six months ended June 30, 2022, compared to the same period in 2021[266]. Debt and Financing - The company has outstanding fixed-rate and variable-rate debt totaling $1.7 billion, with $6.0 million due within 12 months[299]. - Total consolidated debt as of June 30, 2022, was $1.674 billion, with an effective interest rate of 2.742%[326]. - The company amended its credit agreement on May 26, 2022, establishing a $700 million unsecured revolving credit facility and a $300 million senior unsecured term loan facility, with maturity dates of February 13, 2024, and May 26, 2027, respectively[311]. - The company anticipates continuing to selectively dispose of properties based on market conditions and capital needs[308]. - The company expects to fund acquisitions through available cash, cash flows from operations, and borrowings under the Revolver[318]. Capital Expenditures - The company estimates approximately $384.7 million in capital expenditures will be required over the next three years for property repositioning and redevelopment[319]. - Non-recurring capital expenditures for the six months ended June 30, 2022, totaled $41.459 million, while recurring capital expenditures amounted to $3.314 million[320]. Economic Conditions - Recent inflation and supply chain pressures have led to increased construction costs and delays, potentially impacting future earnings[219]. - Inflation has not materially impacted the company, but a prolonged period of high inflation could increase operating expenses and capital expenditures[340]. - If LIBOR and SOFR increase by 50 basis points, the increase in interest expense on variable-rate debt would decrease future earnings and cash flows by approximately $2.4 million annually[343].