Rexford Industrial Realty (NYSE: REXR) reported Q4 EPS of $0.13, $0.08 better than the analyst estimate of $0.05. Revenue for the quarter came in at $57 million versus the consensus estimate of $56.2 million.

• Net income attributable to common stockholders of $0.13 per diluted share for the quarter ended December 31, 2018, compared to $0.15 per diluted share last year.
• Company share of Core FFO increased 35.9% year-over-year to $27.2 million for the quarter ended December 31, 2018.
• Company share of Core FFO per diluted share increased 11.5% year-over-year to $0.29 per diluted share for the quarter ended December 31, 2018.
• Total fourth quarter rental revenues of $56.1 million, which represents an increase of 22.6% year-over-year.
• Consolidated fourth quarter Portfolio Net Operating Income (NOI) of $42.5 million, which represents an increase of 26.4% year-over-year.
• Same Property Portfolio NOI increased 9.6% in the fourth quarter of 2018 compared to the fourth quarter of 2017, driven by an 8.0% increase in Same Property Portfolio total rental revenue and a 3.2% increase in Same Property Portfolio operating expenses. Same Property Portfolio Cash NOI increased 12.4% compared to the fourth quarter of 2017.
• Stabilized Same Property Portfolio NOI increased 5.1% in the fourth quarter of 2018 compared to the fourth quarter of 2017.
• Stabilized Same Property Portfolio Cash NOI increased 7.8% compared to the fourth quarter of 2017.
• Signed new and renewal leases totaling 631,823 rentable square feet. Rental rates on new and renewal leases were 25.1% higher than prior rents on a GAAP basis and 14.8% higher on a cash basis.
• Company share of Core FFO increased 41.3% to $97.6 million for the full year 2018 compared to the full year 2017.
• Company share of Core FFO per diluted share increased 16.7% to $1.12 per diluted share for the full year 2018 compared to the full year 2017.
• At December 31, 2018, the Stabilized Same Property Portfolio occupancy was 98.2% and the Same Property Portfolio occupancy, inclusive of assets in value-add repositioning, was 96.7%.
• At December 31, 2018, the consolidated portfolio, including repositioning assets, was 95.5% leased and 95.4% occupied and the consolidated portfolio, excluding repositioning assets aggregating approximately 0.5 million rentable square feet, was 97.6% leased and 97.5% occupied.
• During the fourth quarter of 2018, the Company acquired ten industrial properties for a total purchase price of $131.7 million.
• On February 11, 2018, the Company declared a quarterly dividend of $0.185 per share, an increase of 15.6% from the prior rate of $0.16 per share.

"Our fourth quarter and full year 2018 results represent a tremendous year for the Company, having achieved Core FFO growth of 41.3% for the full year, equal to 16.7% annual growth on a per share basis," stated Michael Frankel and Howard Schwimmer, Co-Chief Executive Officers of the Company. "Our portfolio continued to produce strong results, with a 10.6% increase in Same Property NOI for the full year. Our Same Property Portfolio Occupancy reached 96.7%, and our leasing spreads, driven by high levels of tenant demand and a scarcity of supply, were 25.1% and 14.8%, on a GAAP and cash basis, respectively. We also completed $132 million of acquisitions during the fourth quarter, bringing our full year total to $493 million of acquisitions comprising over 3 million square feet of high quality industrial property strategically positioned within prime infill Southern California locations. As we continue to capitalize upon our proprietary research, deep market relationships and local knowledge, we believe Rexford Industrial remains exceptionally well-positioned for accretive growth with the potential to drive favorable shareholder returns into the foreseeable future. Further, by maintaining a low-leverage balance sheet with about 16% debt to total enterprise value at year end, our team is poised to capitalize upon emerging value-creation opportunities, both within our existing portfolio as well as through accretive external growth through acquisitions as we continue to mine a robust pipeline of potential investments into future periods. Finally, we are pleased to report that we are increasing our quarterly dividend by 15.6% to $0.185 per share, representing our fourth consecutive year of dividend increases."

GUIDANCE:

Rexford Industrial Realty sees FY2019 EPS of $0.04-$0.08, versus the consensus of $0.20.

The Company is introducing its full year 2019 guidance as follows:

• Net income attributable to common stockholders within a range of $0.04 to $0.08 per diluted share
• Company share of Core FFO within a range of $1.16 to $1.20 per diluted share
• Year-end Same Property Portfolio occupancy within a range of 95.5% to 96.5%
• Year-end Stabilized Same Property Portfolio occupancy within a range of 96.5% to 97.5%
• Same Property Portfolio NOI growth for the year of 3.5% to 5.5%
• Stabilized Same Property Portfolio NOI growth for the year of 3.0% to 3.5%
• General and administrative expenses of $29.0 million to $30.0 million

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