Rexford Industrial Acquires Ten-Building Industrial Portfolio For $203.2 Million

- Adds 868,000 Square Feet to Infill Southern California Portfolio

Company Release - 3/5/2020 5:34 PM ET

LOS ANGELES, March 5, 2020 /PRNewswire/ -- Rexford Industrial Realty, Inc. (the "Company" or "Rexford Industrial") (NYSE: REXR), a real estate investment trust focused on creating value by investing in and operating industrial properties located in Southern California infill markets, today announced the acquisition of a ten-building industrial property portfolio for $203.2 million, including assumed debt. The acquisition was completed through a combination of cash and an UPREIT transaction, whereby the seller contributed a portion of the portfolio value to the Company's operating partnership, Rexford Industrial Realty, L.P. (the "Operating Partnership") in exchange for a blend of operating partnership units ("OP Units") and newly issued convertible preferred operating partnership units ("Series 2 CPOP Units"). The newly issued Series 2 CPOP Units are non-callable by the Company for five years and feature a $45.00 liquidation preference, 4.0% dividend and 0.7722% conversion premium, all of which are more fully described in the Company's Current Report on Form 8-K filed with the SEC on or about the date of this press release.

"We are pleased to announce Rexford's acquisition of this ten-building industrial portfolio located within our prime, infill Southern California target submarkets," stated Howard Schwimmer and Michael Frankel, Co-Chief Executive Officers of the Company. "Our team was able to leverage our proprietary research and relationship-driven originations capability to acquire this portfolio through a lightly-marketed transaction.  Currently 87.7% leased to 56 tenants with average in-place rents estimated to be materially below-market, this investment provides an above-market cash yield as well as the potential for favorable cash flow growth into future periods through a combination of leasing and value-add enhancements.  Located within some of the most supply-constrained and best performing submarkets within infill Southern California, these assets represent a strategic, accretive expansion within our core target markets. Our ability to offer OP and Series 2 CPOP Units provided the seller with a unique value proposition through a tax-efficient UPREIT structure delivering ownership in Rexford Industrial, one of the nation's largest logistics REITs differentiated by our entrepreneurial, value-driven focus on the nation's largest industrial market with leading tenant-demand fundamentals.  Looking forward, we are excited at the prospects before us to drive accretive internal and external growth to maximize shareholder value."

The portfolio consists of three single-tenant and seven multi-tenant industrial properties containing a total of 867,242 square feet on 43.06 acres of land. The portfolio was acquired for $203.2 million, or $234 per square foot. The properties are located in four of the Company's core infill Southern California markets, including LA – South Bay, LA – Mid Counties, Inland Empire – West and Orange County. Approximately two-thirds of the assets are located in the region's top-performing LA – South Bay submarket, which ended the fourth quarter of 2019 with a vacancy rate of 0.8%, according to CBRE. The portfolio's tenant pool is also highly diversified, with no single tenant occupying more than 12.9% of the total rentable area.

The properties are further detailed below:

Property Name

Square Feet

County

Submarket

Leased %

Kingshill Pl

169,069

Los Angeles

South Bay

73.3%

Manhattan Beach Blvd

126,726

Los Angeles

South Bay

95.5%

Santa Fe Ave

112,000

Los Angeles

South Bay

100.0%

W. 126th St

63,532

Los Angeles

South Bay

40.2%

La Cienega Blvd

63,462

Los Angeles

South Bay

93.4%

Knox St

39,400

Los Angeles

South Bay

100.0%

Woodwind Dr

62,377

Orange

Orange County West

100.0%

Atlantic Ocean Dr

27,960

Orange

Orange County South

100.0%

Los Nietos Rd

107,740

Los Angeles

Mid-Counties

100.0%

Richton St

94,976

San Bernardino

Inland Empire West

86.0%

Total Portfolio

867,242


Average

87.7%

About Rexford Industrial

Rexford Industrial, a real estate investment trust focused on creating value by investing in and operating industrial properties throughout Southern California infill markets, owns 223 properties with approximately 27.4 million rentable square feet and manages an additional 19 properties with approximately 1.0 million rentable square feet.

For additional information, visit www.rexfordindustrial.com.

Forward-Looking Statements

This press release may contain forward-looking statements within the meaning of the federal securities laws, which are based on current expectations, forecasts and assumptions that involve risks and uncertainties that could cause actual outcomes and results to differ materially. Forward-looking statements relate to expectations, beliefs, projections, future plans and strategies, anticipated events or trends and similar expressions concerning matters that are not historical facts. In some cases, you can identify forward-looking statements by the use of forward-looking terminology such as "may," "will," "should," "expects," "intends," "plans," "anticipates," "believes," "estimates," "predicts," or "potential" or the negative of these words and phrases or similar words or phrases which are predictions of or indicate future events or trends and which do not relate solely to historical matters. While forward-looking statements reflect the Company's good faith beliefs, assumptions and expectations, they are not guarantees of future performance. For a further discussion of these and other factors that could cause the Company's future results to differ materially from any forward-looking statements, see the reports and other filings by the Company with the U.S. Securities and Exchange Commission, including the Company's Annual Report on Form 10-K for the year ended December 31, 2019 and the Current Report on Form 8-K filed with the SEC on or about the date of this press release. The Company disclaims any obligation to publicly update or revise any forward-looking statement to reflect changes in underlying assumptions or factors, of new information, data or methods, future events or other changes.

Contact:

Investor Relations:

Stephen Swett

424 256 2153 ext. 401

investorrelations@rexfordindustrial.com

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SOURCE Rexford Industrial Realty, Inc.