Rexford Industrial Realty (NYSE: REXR) reported Q3 EPS of $0.21, $0.14 better than the analyst estimate of $0.07. Revenue for the quarter came in at $83.62 million versus the consensus estimate of $82.2 million.

Third Quarter 2020 Financial and Operational Highlights:

• Net income attributable to common stockholders of $25.9 million, or $0.21 per diluted share, as compared to $9.7 million, or $0.09 per diluted share, for the third quarter of last year.
• Company share of Core FFO of $40.6 million, an increase of 19.8% as compared to the third quarter 2019.
• Company share of Core FFO per diluted share of $0.33, an increase of 6.5% as compared to the third quarter 2019.
• Consolidated Portfolio Net Operating Income (NOI) of $62.9 million, an increase of 23.8% as compared to the third quarter 2019.
• Consolidated Portfolio Cash NOI of $57.1 million, an increase of 22.2% as compared to the third quarter 2019.
• Stabilized Same Property Portfolio GAAP NOI increased 4.4% and Stabilized Same Property Portfolio Cash NOI increased 5.0% as compared to the third quarter 2019.
• Stabilized Same Property Portfolio occupancy at quarter end of 98.4%.
• Comparable rental rates on approximately 1.6 million rentable square feet of new and renewal leases were 26.8% higher than prior rents on a GAAP basis and 17.4% higher on a cash basis.
• Acquired five properties for an aggregate purchase price of $68.7 million and, post-quarter end, acquired one additional property for a purchase price of $22.1 million.
• Sold three industrial properties for an aggregate sales price of $44.2 million.
• Ended the quarter with a low-leverage balance sheet measured by a net debt-to-enterprise value ratio of 9.7%.
• Increased Core FFO 2020 guidance range to $1.29 to $1.31 per diluted share.

"Our third quarter results demonstrate the consistent performance of Rexford's focused strategy and the stability of our infill Southern California tenant base within the nation's largest, lowest vacancy and highest demand industrial market," stated Michael Frankel and Howard Schwimmer, Co-Chief Executive Officers of the Company. "The strength of our third quarter rent collections, which performed very near strong pre-pandemic levels, reflect our tenants' superior aggregate credit quality. Despite the ongoing challenges presented by the COVID-19 pandemic and the unique California municipal orders allowing many tenants impacted by COVD-19 to defer their rent, we continue to benefit from scarce and diminishing supply driving an ongoing supply-demand imbalance fueled by growing tenant demand from a range of industry sectors including the dramatic growth in ecommerce. Our portfolio occupancy is above pre-pandemic levels, with leasing volumes and spreads also tracking at peak, pre-pandemic levels. We also continue to drive accretive external growth, with $374.6 million of acquisitions completed year to date and a favorable pipeline of additional acquisition opportunities currently in process. Our fortress-like balance sheet and strong liquidity position the company to capitalize on growth opportunities and to protect against ongoing market uncertainty. We are excited at the prospects ahead to continue to create long term shareholder value."

GUIDANCE:

Rexford Industrial Realty sees FY2020 EPS of $0.46-$0.48, versus the consensus of $0.36.

While the full economic impact of the COVID-19 pandemic and efforts to contain its spread, as well as the impact of

local California government mandates enabling some tenants impacted by COVID-19 to unilaterally defer rent, are difficult to predict or quantify, based on recent trends the Company has observed, the Company is increasing its full year 2020 guidance as follows:

• Net income attributable to common stockholders within a range of $0.46 to $0.48 per diluted share
• Company share of Core FFO within a range of $1.29 to $1.31 per diluted share
• Year-end Stabilized Same Property Portfolio occupancy within a range of 97.5% to 98.0%
• Stabilized Same Property Portfolio NOI growth for the year within a range of 3.0% to 3.5%
• General and administrative expenses within a range of $36.5 million to $37.0 million

The Core FFO guidance refers only to the Company's in-place portfolio as of October 20, 2020 and the pending acquisition of an industrial park with four buildings (the "Industrial Park") that is expected to close during the fourth quarter of 2020 (for additional details, refer to the Company's Form 8-K that was filed with the SEC on October 9, 2020) and does not include any assumptions for other acquisitions, dispositions or balance sheet activities that may or may not occur through the end of the year. A number of factors could impact the Company's ability to deliver results in line with its guidance, including, but not limited to, the number of tenants requesting rent relief or failing to pay rent in future periods, the duration and severity of the impact of the COVID-19 pandemic, interest rates, the economy, the supply and demand of industrial real estate, failure to satisfy the closing conditions for the Industrial Park, the availability and terms of financing to the Company or to potential acquirers of real estate and the timing and yields for divestment and investment. There can be no assurance that the Company can achieve such results.

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