Rexford Industrial Realty, Inc. (REXR) Q2 2023 Earnings Call Transcript

For the period ending June 30, 2023

July 20, 2023 1:00 p.m. ET

Prepared Remarks

Questions and Answers

Call Participants

Prepared Remarks:

Operator

Greetings. Welcome to Rexford Industrial Realty, Incorporated Second Quarter 2023 Earnings Call. At this time, all participants are in a listen-only mode. A question-and-answer session will follow the formal presentation. [Operator Instructions] Please note this conference is being recorded.

I will now turn the conference over to David Lanzer, General Counsel. Thank you. You may begin.

David Lanzer

We thank you for joining Rexford Industrial’s second quarter 2023 earnings conference call. In addition to the press release distributed yesterday after market close, we posted a supplemental package and investor presentation in the Investor Relations section on our website at rexfordindustrial.com.

On today’s call, management’s remarks and answers to your questions may contain forward-looking statements as defined by Federal Securities Laws. Forward-looking statements address matters that are subject to risks and uncertainties that may cause actual results to differ. For more information about these risk factors, please review our 10-K and other SEC filings. Rexford Industrial assumes no obligation to update any forward-looking statements in the future.

Additionally, certain financial information presented on this call represents non-GAAP financial measures. Our earnings release and supplemental package present GAAP reconciliations and explanation of why such non-GAAP financial measures are useful to investors.

Today’s conference call is hosted by Rexford Industrial’s Co-Chief Executive Officers, Michael Frankel and Howard Schwimmer; together with Chief Financial Officer, Laura Clark. They will make some prepared remarks, and then we will open the call for your questions.

Now, I turn the call over to Michael.

Michael Frankel

Thank you, David. I’d like to welcome everyone to Rexford Industrial’s second quarter 2023 earnings call. I will begin with a brief introduction. Howard will discuss our operations, followed by Laura, who will focus on our financial metrics.

I’d like to start by acknowledging our Rexford team for delivering an exceptional quarter, which included a 33% increase in quarterly earnings for FFO and a 10% increase in FFO per share over the prior year quarter. Our strong results were driven by value creation across all of Rexford Industrial’s internal and external growth strategies.

From an internal growth perspective, we maintained same property pool average occupancy of 98%. Our high occupancy was supported by 450,000 square feet of positive net absorption and 2.1 million square feet of lease activity achieved with record leasing spreads of 97% on a GAAP basis and 75% on a cash basis.