Los Angeles-based Rexford Industrial Realty Inc., a real estate investment trust that specializes in acquiring, owning and operating industrial properties located in Southern California infill markets, recently revealed financial results for the second quarter of 2017.
According to Michael Frankel and Howard Schwimmer, co-CEOs of the company, they are pleased with the second quarter performance, “which included a 6.6% increase in Same Property NOI and double-digit GAAP and cash releasing spreads on over 780 thousand square feet of new and renewal leases.” They noted that those numbers demonstrate the continued strong demand for the REITs product within its infill Southern California industrial market.
They added that “During the quarter, we acquired $224.2 million and, subsequent to quarter-end, we acquired an additional $285.7 million of high quality, core and value-add industrial property investments in our severely supply constrained infill submarkets, with 60% of the quarter’s investments acquired through off-market or lightly-marketed transactions.”
According to the team, as the REIT progresses through the second half of 2017 and beyond, they believe the company is positioned to capitalize on its deep market presence, its strong balance sheet and its “talented team.” They add that the company focuses on “continuing to create long term value for our shareholders.”
Second Quarter 2017 Financial and Operational Highlights were as follows:
- Net income attributable to common stockholders of $0.26 per diluted share for the quarter ended June 30, 2017, compared to $0.19 per diluted share last year.
- Core Funds From Operations (FFO) and FFO of $0.23 per diluted share for the quarter ended June 30, 2017.
- Total second quarter rental revenues of $36.4 million, which represents an increase of 19.4% year-over-year. Property Net Operating Income (NOI) of $26.9 million, which represents an increase of 19.3% year-over-year.
- Same Property Portfolio NOI increased 6.6% in the second quarter of 2017 compared to the second quarter of 2016, driven by an 8.2% increase in Same Property Portfolio total rental revenue and a 12.7% increase in Same Property Portfolio operating expenses. Same Property Portfolio Cash NOI increased 5.1% compared to the second quarter of 2016.
- Signed new and renewal leases totaling 780,716 rentable square feet. Rental rates on new and renewal leases were 20.4% higher than prior rents on a GAAP basis and 10.6% higher on a cash basis.
- Stabilized Same Property Portfolio occupancy was 96.0%, which was unchanged year-over-year. Same Property Portfolio occupancy, inclusive of assets in value-add repositioning, was 93.5%, which represents an increase of 200 basis points year-over-year.
- At June 30, 2017, the consolidated portfolio including repositioning assets was 92.1% leased and 91.4% occupied, which represents an increase in occupancy of 130 basis points year-over-year. At June 30, 2017, the consolidated portfolio, excluding repositioning assets aggregating approximately 0.9 million rentable square feet, was 97.2% leased and 96.5% occupied.
- During the second quarter of 2017, the company acquired five industrial properties for a total purchase price of $224.2 million.
- During the second quarter of 2017, the company sold two industrial properties for a total sales price of $58.8 million.