Rexford Industrial Realty Inc. had a strong start to 2019. “The first quarter results reflecting that continued execution of our strategy and the ongoing strength of the infill Southern California industrial market. We increased the company’s share of Core FFO by 37% and increased Core FFO per share by a 11% to $0.30 per share over the prior year quarter,” says co-CEO, Michael Frankel.
According to Q1 results, same-property NOI grew for the REIT by 7.8% on a GAAP basis and by 10.1% on a cash basis. According to Frankel, “This was driven by a 6% increase in same-property portfolio rental revenue, while same-property expenses remains essentially flat. When we exclude the impacts based under repositioning, our organic growth remains strong with same-store NOI growth coming in at 4.5% on a GAAP basis and 7.6% on a cash basis.”
He pointed out that the REIT also achieved approximately 98% occupancy in its stabilized same-property portfolio. “Due to the favorable supply/demand fundamentals within infill Southern California, leasing spreads remain strong. During the first quarter, we signed 103 leases for 1.1 million square feet. Our leasing spreads were 26.2% on a GAAP basis and 17.3% on a cash basis.”
He also pointed out that the company increased its dividend during the first quarter by 15.6% to $0.185 per share. In addition, the company issued its inaugural environmental social and governance report. “We are particularly excited about this report as our value driven business model accrues many important and unique benefits to our broader communities and to the environment in which we work. For example, through our value-add repositioning work, we often recycle building structures instead of demolishing and replacing them with new construction. Our ESG report also highlights our commitment to a Rexford Industrial team, that reflects the diversity of our community and to providing opportunities for learning, innovation and advancement in a Rexford work environment defined by mutual respect and shared ownership in the company.”