Q4 2024 Rexford Industrial Realty Inc Earnings Call Transcript
Key Points
- Rexford Industrial Realty Inc (REXR) delivered solid fourth-quarter results, executing 1 million square feet of leasing with net effective leasing spreads of 55% and cash leasing spreads of 41%.
- The company achieved a 7.5% unlevered stabilized yield on total investment for 10 repositioning and redevelopment projects completed in 2024.
- Rexford Industrial Realty Inc (REXR) maintained a low leverage profile with a net debt-to-EBITDA ratio of 4.6 times and strong liquidity totaling $1.4 billion.
- The company has a $300 million share repurchase program authorized, expanding opportunities for capital allocation.
- Rexford Industrial Realty Inc (REXR) projects a 40% increase in total incremental NOI, equal to $280 million, driven by embedded rent steps and repositioning projects.
- Market conditions have led to a decline in same-property average occupancies by 120 basis points sequentially.
- Rexford Industrial Realty Inc (REXR) observed a decline in market rents for quality products, with a 1.5% sequential and 8% year-over-year decrease.
- The company is experiencing longer projected downtime between tenant move-outs and new rent commencements, impacting occupancy rates.
- Rexford Industrial Realty Inc (REXR) has no acquisitions under contract or accepted offer, indicating a cautious approach to new investments.
- The company faces challenges from elevated downtime, increased concessions, and higher bad debt, impacting same-property net effective NOI growth.
Hello, and thank you for standing by. My name is Regina, and I will be your conference operator today. At this time, I would like to welcome everyone to the Rexford Industrial's fourth quarter 2024 earnings conference call. (Operator Instructions)
I would now like to turn the conference over to Makela Lynch, Director of Investor Relations and Capital Markets. Please go ahead.
Thank you, and welcome to Rexford Industrial's fourth quarter 2024 earnings conference call. In addition to yesterday's earnings release, we posted supplemental package and earnings presentation in the Investor Relations section on our website to support today's remarks.
As a reminder, management's remarks and responses to your questions may contain forward-looking statements as defined by Federal Securities Laws, which are based on certain assumptions and subject to risks and uncertainties outlined in our 10-K and other SEC filings. As such, actual results may differ, and
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