Rexford Industrial Realty, Inc. (REXR) Q4 2022 Earnings Call Transcript

For the period ending December 31, 2022

February 9, 2023 1:00 p.m. ET

Prepared Remarks

Questions and Answers

Call Participants

Prepared Remarks:

Operator

Greetings. Welcome to Rexford Industrial Realty, Incorporated Fourth Quarter and Full Year 2022 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 Aric Chang, Senior Vice President of Investor Relations and Capital Markets. Thank you. You may begin.

Aric Chang

We thank you for joining Rexford Industrial’s fourth quarter 2022 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.

In addition, certain financial information presented on this call represents non-GAAP financial measures. Our earnings release and supplemental package present GAAP reconciliation and an explanation on 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, Aric. I’d like to welcome everyone to Rexford Industrial’s fourth quarter 2022 earnings call. I will begin with a brief introduction. Howard will discuss our investment activity followed by Laura, who will discuss our financial results and guidance for 2023.

Our strong results reflect our unique position as the nation’s largest pure-play U.S.-focused industrial REIT driven by our entrepreneurial approach to creating value within infill Southern California.

For the full year 2022, Rexford increased earnings or FFO per share by 20%, enabled by a full 45% increase in core FFO. This brings our average earnings per share growth over the prior three years to 22%, substantially exceeding the earnings growth of all other industrial REITs, which averaged 13%. We grew consolidated NOI by 40% compared to the prior year driven by strong internal growth, lease-up of our value-add repositionings and accretive external growth.