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Rexford Industrial's Financial Success in 2024

Rexford Industrial Realty, Inc. (NYSE: REXR), a prominent real estate investment trust specializing in industrial properties within Southern California, recently revealed its impressive financials for the fourth quarter and the entirety of 2024. The company has demonstrated remarkable growth in several key performance indicators, marking a year of resilience and strategic expansion.

Annual Highlights

In 2024, Rexford Industrial achieved a net income attributable to common stockholders amounting to $262.9 million, translating to $1.20 per diluted share. This reflects a notable increase from $227.4 million or $1.12 per diluted share in the previous year. The company reported a core funds from operations (Core FFO) of $511.7 million, representing a 15% year-over-year increase.

The consolidated portfolio NOI reached $711.8 million, marking a significant rise of 17.3% compared to 2023. The same property portfolio NOI also experienced a 4.1% growth, showcasing the effectiveness of Rexford's operational strategies.

Leasing Performance

Rexford Industrial executed a total of 436 leases during 2024, encompassing 8.1 million rentable square feet. This resulted in a remarkable 38.9% increase in comparable rental rates compared to prior leases on a net effective basis. Noteworthy is the exclusion of the Tireco lease extension, which allowed a more accurate representation of the comparative rental escalation, leading to a 55.3% increase in net effective rental rates.

The average occupancy rate across the Same Property Portfolio stood at an impressive 96.6%, indicative of the strong demand for industrial spaces in the region. The successful leasing activity further underscores Rexford Industrial's exceptional market position.

Strategic Growth and Transactions

In the fourth quarter alone, Rexford completed nine acquisitions, totaling $1.5 billion and improving its portfolio with new, high-quality assets that promise continued return on investments. Throughout the year, the firm disposed of five properties for a cumulative sales price of $44.3 million, contributing to a strategic realignment of its asset portfolio.

Among the notable acquisitions was the purchase of a 300,217 square-foot Class-A building in Los Angeles’ South Bay area, acquired for $137.2 million. This property is expected to deliver a strong initial cash yield of 4.8% while providing growth through contractual rent increases.

Balance Sheet and Future Outlook

Rexford Industrial concluded the year with a robust balance sheet, maintaining a net debt-to-enterprise value ratio of 26.5% and a debt-to-adjusted EBITDA ratio of 4.6x. Following the strong financial performance, the board announced a quarterly cash dividend increase of 3.0%, reflecting the company’s commitment to direct value to shareholders.

Looking ahead, Rexford Industrial has established guidance for 2025, projecting continued growth across multiple areas, including an anticipated increase in net income and Core FFO. The company aims to capitalize on embedded income opportunities within their portfolio, ensuring sustained earnings expansion.

Conclusion

With 2024 showing record-high financial results and continued operational success, Rexford Industrial Realty, Inc. continues to strengthen its position as a leading player in the industrial real estate sector. Investors and stakeholders can remain optimistic as the company pushes forward into 2025 with a strategic focus on growth and stability in one of the nation’s most dynamic markets.