September 3, 2013 - EX-99.1 - 8-K: Current report filing | Rexford Industrial Realty, Inc. (REXR)

Exhibit 99.1

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Rexford Industrial Realty, Inc.

NYSE: REXR

11620 Wilshire Blvd

Suite 1000

Los Angeles, CA 90025

310-966-1680

www.RexfordIndustrial.com

Table of Contents


Section		Page

Investor Company Summary		3

Consolidated Balance Sheets		4

Consolidated Statement of Operations		5 - 6

Non-GAAP FFO and AFFO Reconciliations		7

Statement of Operations Reconciliations		8

Same Property Portfolio Performance		9 - 10

Joint Venture Financial Summary		11 - 12

Debt Summary		13

Portfolio Overview		14

Leasing Statistics		15

Top Tenants and Lease Segmentation		16

Occupancy and Leasing Trends		17

Capital Expenditure Summary		18

Properties Under Repositioning		19

Acquisitions and Dispositions Summary		20

Definitions / Discussion of Non-GAAP Financial Measures		21 - 22

Disclosures:

Forward Looking Statements: This supplemental package contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. We caution investors that any forward-looking statements presented herein are based on managements beliefs and assumptions and information currently available to management. Such statements are subject to risks, uncertainties and assumptions and may be affected by known and unknown risks, trends, uncertainties and factors that are beyond our control. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those anticipated, estimated or projected. These risks and uncertainties include, without limitation: general risks affecting the real estate industry (including, without limitation, the market value of our properties, the inability to enter into or renew leases at favorable rates, dependence on tenants financial condition, and competition from other developers, owners and operators of real estate); risks associated with the disruption of credit markets or a global economic slowdown; risks associated with the potential loss of key personnel (most importantly, members of senior management); risks associated with our failure to maintain our status as a REIT under the Internal Revenue Code of 1986, as amended; possible adverse changes in tax and environmental laws; and potential liability for uninsured losses and environmental contamination.

For a further discussion of these and other factors that could cause our future results to differ materially from any forward-looking statements, see the section entitled Cautionary Note Regarding Forward-Looking Statements in our prospectus dated July 18, 2013, which was filed with the Securities and Exchange Commission (SEC) and other risks described in documents subsequently filed by us from time to time with the SEC. We disclaim 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.

Second Quarter 2013

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Page 2

Supplemental Financial Reporting Package

Investor Company Summary

Senior Management Team


Howard Schwimmer		Co-Chief Executive Officer, Director
Michael S. Frankel		Co-Chief Executive Officer, Director
Adeel Khan		Chief Financial Officer
Patrick Schlehuber		Director of Acquisitions
Bruce Herbkersman		Director of Construction & Development
Shannon Lewis		Director of Leasing & Asset Management

Board of Directors


Richard Ziman		Chairman
Howard Schwimmer		Co-Chief Executive Officer, Director
Michael S. Frankel		Co-Chief Executive Officer, Director
Robert L. Antin		Director
Leslie E. Bider		Director
Steven C. Good		Director
Joel S. Marcus		Director

Company Contact Information

11620 Wilshire Blvd

Suite 1000

Los Angeles, CA 90025

310-966-1680

www.RexfordIndustrial.com

Investor Relations Information

ICR

Brad Cohen and Stephen Swett

www.icrinc.com

212-849-3882

Equity Research Coverage


Bank of America Merrill Lynch		James Feldman
J.P. Morgan		Michael W. Mueller, CFA
FBR Capital Markets & Co.		Nikhil Bhalla
Wells Fargo Securities		Brendan Maiorana, CFA

Disclaimer: This list may not be complete and is subject to change as firms add or delete coverage of our company. Please note that any opinions, estimates, forecasts or predictions regarding our historical or predicted performance made by these analysts are theirs alone and do not represent opinions, estimates, forecasts or predictions of Rexford Industrial Realty, Inc. or its management. We are providing this listing as a service to our stockholders and do not by listing these firms imply our endorsement of, or concurrence with, such information, conclusions or recommendations. Interested persons may obtain copies of analysts reports on their own; we do not distribute these reports.

Second Quarter 2013

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Page 3

Supplemental Financial Reporting Package


Consolidated Balance Sheet

		(in thousands)


	Rexford Industrial Realty, Inc. Predecessor
	June 30, 2013			March 31, 2013			December 31, 2012
	(unaudited)			(unaudited)
Assets
Investments in real estate, net	$	385,691		$	318,886		$	320,962
Cash and cash equivalents		24,951			47,446			43,499
Restricted cash		2,026			2,086			1,882
Notes receivable		7,876			7,903			11,911
Rents and other receivables, net		685			446			560
Deferred rent receivable		3,969			3,949			3,768
Deferred leasing costs and in-place lease intangibles, net		7,805			4,518			5,012
Deferred loan costs, net		1,504			1,154			1,396
Acquired above-market leases, net		1,614			127			179
Other assets		4,574			3,875			1,870
Acquisition related deposits		210			2,483			260
Investment in unconsolidated real estate entities		11,486			12,362			12,697
Assets associated with real estate held for sale					15,156			16,500

Total Assets	$	452,391		$	420,391		$	420,496


Liabilities
Notes payable	$	351,187		$	306,958		$	302,830
Accounts payable, accrued expenses and other liabilities		2,518			3,030			2,589
Due to members								1,221
Interest rate contracts								49
Acquired below-market leases, net		65			32			39
Tenant security deposits		4,623			4,177			3,753
Prepaid rents		603			406			334
Liabilities associated with real estate held for sale					10,881			13,433

Total Liabilities		358,996			325,484			324,248


Equity
Rexford Industrial Realty, Inc. (Predecessor)	$	11,968		$	11,968		$	11,962
Accumulated deficit and distributions		(27,592	)		(25,271	)		(24,653	)

Total Rexford Industrial Realty, Inc. Equity		(15,624	)		(13,303	)		(12,691	)


Noncontrolling interests		109,019			108,210			108,939

Total Equity		93,395			94,907			96,248



Total Liabilities and Equity	$	452,391		$	420,391		$	420,496

Second Quarter 2013

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Supplemental Financial Reporting Package


Consolidated Statement of Operations

Quarter and Year-to-Date Results		(in thousands, except share count and per share figures)


	Rexford Industrial Realty, Inc. Predecessor
	Three Months Ended						Six Months Ended
	June 30, 2013			June 30, 2012			June 30, 2013			June 30, 2012
	(unaudited)			(unaudited)			(unaudited)			(unaudited)
Rental Revenues
Rental revenues	$	9,152		$	6,940		$	16,932		$	13,784
Tenant reimbursements		1,127			706			1,974			1,413
Management, leasing, and development services		170			106			431			170
Other income		49			33			167			50

Total rental revenues		10,498			7,785			19,504			15,417
Interest income		324			449			635			785

Total Revenues		10,822			8,234			20,139			16,202

Operating Expenses
Property expenses	$	2,442		$	2,184		$	4,562		$	4,170
General and administrative		1,396			1,180			2,535			2,157
Depreciation and amortization		3,564			2,849			6,739			6,203
Other property expenses		444			353			781			629

Total Operating Expenses		7,846			6,566			14,617			13,159

Other (Income) Expense
Acquisition expenses	$	624		$	167		$	717		$	234
Interest expense		4,467			4,346			8,324			8,504
Gain on mark-to-market of interest rate swaps					(612	)		(49	)		(1,223	)

Total Other Expense		5,091			3,901			8,992			7,515

Total Expenses		12,937			10,467			23,609			20,674


Equity in income (loss) from unconsolidated real estate entities	$	(712	)	$	(90	)	$	(925	)	$	(33	)
Gain from early repayment of note receivable								1,365
Loss on extinguishment of debt								(37	)

Net Income (Loss) from Continuing Operations	$	(2,827	)	$	(2,323	)	$	(3,067	)	$	(4,505	)


Discontinued Operations
(Loss) income from discontinued operations before gains on sale of real estate	$	(180	)	$	(145	)	$	(86	)	$	(68	)
Gain (loss) on extinguishment of debt		(41	)					(250	)
Gain on sale of real estate		2,580						4,989

Income from Discontinued Operations	$	2,359		$	(145	)	$	4,653		$	(68	)



Net Income (Loss)	$	(468	)	$	(2,468	)	$	1,586		$	(4,573	)


Net income (loss) attributable to noncontrolling interests	$	(1,818	)	$	1,009		$	(3,544	)	$	2,942

Net Income (Loss) Attributable to Rexford Industrial Realty, Inc. Predecessor	$	(2,286	)	$	(1,459	)	$	(1,958	)	$	(1,631	)

Second Quarter 2013

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Supplemental Financial Reporting Package


Consolidated Statement of Operations

Quarterly Results		(in thousands, except share count and per share figures)


	Rexford Industrial Realty, Inc. Predecessor
	Three Months Ended
	June 30, 2013			March 31, 2013
	(unaudited)			(unaudited)
Rental Revenues
Rental revenues	$	9,152		$	7,779
Tenant reimbursements		1,127			847
Management, leasing, and development services		170			261
Other income		49			118

Total rental revenues		10,498			9,005
Interest income		324			311

Total Revenues		10,822			9,316

Operating Expenses
Property expenses	$	2,442		$	2,120
General and administrative		1,396			1,139
Depreciation and amortization		3,564			3,175
Other property expenses		444			338

Total Operating Expenses		7,846			6,772

Other (Income) Expense
Acquisition expenses	$	624		$	93
Interest expense		4,467			3,857
Gain on mark-to-market of interest rate swaps					(49	)

Total Other Expense		5,091			3,901

Total Expenses		12,937			10,673


Equity in income (loss) from unconsolidated real estate entities	$	(712	)	$	(212	)
Gain from early repayment of note receivable					1,365
Loss on extinguishment of debt					(37	)

Net Income (Loss) from Continuing Operations	$	(2,827	)	$	(241	)


Discontinued Operations
(Loss) income from discontinued operations before gains on sale of real estate	$	(180	)	$	93
Gain (loss) on extinguishment of debt		(41	)		(209	)
Gain on sale of real estate		2,580			2,409

Income from Discontinued Operations	$	2,359		$	2,293



Net Income (Loss)	$	(468	)	$	2,052


Net income (loss) attributable to noncontrolling interests	$	(1,818	)	$	(1,726	)

Net Income (Loss) Attributable to Rexford Industrial Realty, Inc. Predecessor	$	(2,286	)	$	326

Second Quarter 2013

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Supplemental Financial Reporting Package


Non-GAAP FFO and AFFO Reconciliations*		(in thousands)

		(unaudited results)


	Rexford Industrial Realty, Inc. Predecessor
	Three Months Ended
	June 30, 2013			March 31, 2013
Funds From Operations (FFO)
Net income (loss)	$	(468	)	$	2,052
Add:
Depreciation and amortization, including amounts in discontinued operations		3,611			3,285
Depreciation and amortization from unconsolidated joint ventures and tenants in common		144			470
Impairment writedowns of depreciable real estate - unconsolidated joint ventures and tenants in common		837
Loss from early extinguishment of debt		41			246
Deduct:
Gains on sale of real estate		2,580			2,409

FFO	$	1,585		$	3,644


Adjusted Funds From Operations (AFFO)
Add:
Amortization of deferred financing costs		406			251
Fair value lease revenue		155			55
Acquisition costs		624			93
Non-cash stock compensation		20			66
Deduct:
Straight line rent adjustment		44			196
Gain on mark-to-market interest rate swaps					49
Capitalized payments**		79			84
Note Receivable discount amortization		32			62
Note Payable premium amortization		12			12
Recurring capital expenditures		385			72
2nd generation tenant improvements and leasing commissions		368			171
Unconsolidated joint venture AFFO adjustments		(18	)		(8	)

AFFO	$	1,888		$	3,471


Cash Available for Distribution (CAD)
Deduct:
1st generation tenant improvements and leasing commissions		599			61
Non-recurring capital expenditures		547			433

CAD	$	742		$	2,977

*	For a definition and discussion of non-GAAP financial measures, see the definitions section beginning on page 21 of this report.

**	Includes capitalized leasing and development payroll.

Second Quarter 2013

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Supplemental Financial Reporting Package


Statement of Operations Reconciliations*		(in thousands)

		(unaudited results)


	Predecessor
	Rexford Industrial Realty, Inc. Three Months Ended
	June 30, 2013			March 31, 2013
Net Operating Income (NOI)
Rental revenues	$	9,152		$	7,779
Tenant reimbursements		1,127			847
Other income		49			118

Total Operating Revenues		10,328			8,744
Property expenses		2,442			2,120
Other property expenses		444			338

Total Operating Expenses		2,886			2,458

NOI	$	7,442		$	6,286


Fair value lease revenue		155			55
Straight line rent adjustment		(44	)		(196	)

Cash NOI	$	7,553		$	6,145


Net Income (Loss)	$	(468	)	$	2,052
Add:
General and administrative		1,396			1,139
Depreciation and amortization		3,564			3,175
Acquisition expenses		624			93
Interest expense		4,467			3,857
Gain on mark-to-market of interest rate swaps					(49	)
Subtract:
Management, leasing, and development services		170			261
Interest income		324			311
Equity in income (loss) from unconsolidated real estate entities		(712	)		(212	)
Gain from early repayment of note receivable					1,365
Loss on extinguishment of debt					(37	)
Income from Discontinued Operations		2,359			2,293

NOI	$	7,442		$	6,286

Fair value lease revenue		155			55
Straight line rent adjustment		(44	)		(196	)

Cash NOI	$	7,553		$	6,145


EBITDA
Net income (loss)	$	(468	)	$	2,052
Interest expense		4,467			3,857
Gain on mark-to-market of interest rate swaps					(49	)
Depreciation and amortization		3,564			3,175

EBITDA	$	7,563		$	9,035

*	For a definition and discussion of non-GAAP financial measures, see the definitions section beginning on page 21 of this report.

Second Quarter 2013

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Supplemental Financial Reporting Package


Same Property Portfolio Performance*		(in thousands)

Statement of Operations and NOI Reconciliation		(unaudited results)

Same Property Portfolio Statement of Operations:


	Three Months Ending									Six Months Ending
	June 30									June 30
	2013			2012			Change			2013			2012			Change
Rental Revenues
Rental revenues	$	7,564		$	6,873			10	%	$	14,587		$	13,565			8	%
Tenant reimbursements		884			684			29	%		1,670			1,391			20	%
Other operating revenues		42			36			17	%		160			48			233	%

Total rental revenues		8,490			7,593			12	%		16,417			15,004			9	%
Interest income		324			250			30	%		572			500			14	%

Total Revenues		8,814			7,843			12	%		16,989			15,504			10	%

Operating Expenses
Property expenses	$	2,141		$	2,207			(3	%)	$	3,977		$	4,085			(3	%)
Depreciation and amortization		2,876			2,981			(4	%)		5,933			6,447			(8	%)
Other property expenses		303			280			8	%		588			485			21	%

Total Operating Expenses		5,320			5,468			(3	%)		10,498			11,017			(5	%)

Other (Income) Expense
Interest expense		4,195			4,960			(15	%)		7,982			8,895			(10	%)

Total Other Expense		4,195			4,960			(15	%)		7,982			8,895			(10	%)

Total Expenses		9,515			10,428			(9	%)		18,480			19,912			(7	%)

Net Income (Loss)	$	(701	)	$	(2,585	)		(73	%)	$	(1,491	)	$	(4,408	)		(66	%)

Same Property Portfolio NOI Reconciliation:


	Three Months Ending									Six Months Ending
	June 30									June 30
	2013			2012			Change			2013			2012			Change
NOI
Net Income (Loss)	$	(701	)	$	(2,585	)				$	(1,491	)	$	(4,408	)
Add:
Interest expense		4,195			4,960						7,982			8,895
Depreciation and amortization		2,876			2,981						5,933			6,447
Deduct:
Interest income		324			250						572			500

NOI	$	6,046		$	5,106			18	%	$	11,852		$	10,434			14	%


Straight-line rents		62			(55	)					6			(185	)
Amort. above/below market leases		25			28						60			68

Cash NOI	$	6,133		$	5,079			21	%	$	11,918		$	10,317			16	%

*	For a definition and discussion of non-GAAP financial measures, see the definitions section beginning on page 21 of this report.

Second Quarter 2013

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Supplemental Financial Reporting Package


Same Property Portfolio Performance*		(in thousands)

NOI Reconciliation, Portfolio Detail, and Occupancy		(unaudited results)

Same Property Portfolio NOI Reconciliation Continued:


	Three Months Ending								Six Months Ending
	June 30								June 30
	2013		2012			Change			2013		2012			Change
Rental revenues	$	7,564	$	6,873			10	%	$	14,587	$	13,565			8	%
Tenant reimbursements		884		684			29	%		1,670		1,391			20	%
Other operating revenues		42		36			17	%		160		48			233	%

Total rental revenue		8,490		7,593			12	%		16,417		15,004			9	%

Interest income		324		250			30	%		572		500			14	%

Total revenue		8,814		7,843			12	%		16,989		15,504			10	%

Property expenses		2,141		2,207			(3	%)		3,977		4,085			(3	%)
Other property expenses		303		280			8	%		588		485			21	%

Total property expense		2,444		2,487			(2	%)		4,565		4,570			(0	%)

NOI	$	6,046	$	5,106			18	%	$	11,852	$	10,434			14	%


Straight-line rents		62		(55	)		(213	%)		6		(185	)		(103	%)
Amort. above/below market leases		25		28			(12	%)		60		68			(11	%)

Cash NOI	$	6,133	$	5,079			21	%	$	11,918	$	10,317			16	%

Same Property Portfolio Detail:


	Three Months Ending June 30, 2013		Six Months Ending June 30, 2013
Same Property Portfolio:
Number of Properties		48		47
Square Feet (pro-rata)		4,236,316		4,128,455

Same Property Portfolio Occupancy:


	June 30, 2013			June 30, 2012			Change (ppt)
Occupancy:
Los Angeles County		90.7	%		83.2	%		7.5	%
Orange County		88.1	%		91.8	%		(3.7	%)
San Bernardino County		81.7	%		76.2	%		5.5	%
Ventura County		100.0	%		82.1	%		17.9	%
San Diego County		83.2	%		55.8	%		27.4	%

Total/Weighted Average		88.5	%		77.9	%		10.6	%

*	For a definition and discussion of non-GAAP financial measures, see the definitions section beginning on page 21 of this report.

Second Quarter 2013

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Supplemental Financial Reporting Package


Joint Venture Financial Summary		(in thousands)

Balance Sheet		(unaudited results)

Balance Sheet:


(Financials reflect 100% of property performance)	Three Months Ended June 30, 2013
	3233 Mission Oaks Blvd.			10439-10477 Roselle St.
	Mission Oaks			La Jolla Sorrento*
Rexford Industrial Realty, Inc. Ownership %:		15	%		70	%

Assets:
Investments in real estate, net	$	51,240		$	8,742
Cash and cash equivalents		1,758			367
Rents and other receivables, net		146			33
Deferred rent receivable		12			87
Deferred leasing costs and acquisition related intangible assets, net		6,165			54
Deferred loan costs, net		212			25
Acquired above-market leases, net		1,001
Other assets		101			48

Total Assets	$	60,634		$	9,356


Liabilities:
Notes payable	$	41,500		$
Accounts payable, accrued expenses and other liabilities		244			47
Tenant security deposits		267			123
Prepaid rents					19

Total Liabilities	$	42,011		$	190


Equity:
Equity		18,762			11,565
Accumulated deficit and distributions		(139	)		(2,399	)

Total Equity		18,623			9,166



Total Liabilities and Equity	$	60,634		$	9,356

*	At 6/30/13, La Jolla Sorrento (10439-10477 Roselle St.) was structured as an unconsolidated tenant-in-common interest. Rexford Industrial Realty, Inc.s ownership increased to 100% at its initial public offering (the IPO).

Second Quarter 2013

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Supplemental Financial Reporting Package


Joint Venture Financial Summary*		(in thousands)

Statement of Operations		(unaudited results)

Statement of Operations:


(Financials reflect 100% of property performance)	Three Months Ended June 30, 2013
	3233 Mission Oaks Blvd.			10439-10477 Roselle St.
	Mission Oaks			La Jolla Sorrento**
Rexford Industrial Realty, Inc. Ownership %:		15	%		70	%

Income Statement
Rental revenues	$	1,272		$	267
Tenant reimbursements		261			3
Other operating revenues		294			2

Total revenue		1,827			272

Total operating expense		696			122

NOI		1,131			149


General and administrative		39			4
Depreciation and amortization		650			66
Impairment of Long-Lived Assets					1,195
Interest expense		281			93

Total expense		1,667			1,480

Net Income (Loss)	$	160		$	(1,209	)


EBITDA
Net income (loss)	$	160		$	(1,209	)
Interest expense		281			93
Depreciation and amortization		650			66
Impairment of Long-Lived Assets					1,195

EBITDA	$	1,092		$	146

*	For a definition and discussion of non-GAAP financial measures, see the definitions section beginning on page 21 of this report.

**	At 6/30/13, La Jolla Sorrento (10439-10477 Roselle St.) was structured as an unconsolidated tenant-in-common interest. Rexford Industrial Realty, Inc.s ownership increased to 100% at its IPO.

Reconciliation - Equity Income in Joint Venture:


Net income (loss)	$	160		$	(1,209	)
Preferred income allocation					86

Adjusted net income (loss)		160			(1,123	)

Rexford Industrial Realty, Inc. Ownership %:		15	%		70	%
Company share		24			(786	)
Intercompany eliminations		35			15

Equity in net income (loss) from unconsolidated real estate entities	$	60		$	(771	)

Second Quarter 2013

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Supplemental Financial Reporting Package


Debt Summary		(in thousands)

		(unaudited results)

Debt Detail: (Pro-forma)

As of July 31, 2013


Debt Description	Initial Maturity Date	Maturity Date w/ Extensions	Stated Interest Rate	Effective Interest Rate			Balance
Secured Debt:
Glendale Commerce Center*	5/1/2016	5/1/2018	LIBOR + 2.00%		2.19	%	$	42,750
10700 Jersey Blvd.	1/1/2015	N/A	5.45%		5.45	%	$	5,189
Term Loan	8/1/2019	8/1/2020	LIBOR + 1.90%		2.09	%	$	60,000

Unsecured Credit Facility:
$200M facility	7/24/2016	7/24/2018	LIBOR + 1.35%		1.54	%	$	12,750

Total Consolidated:					2.21	%	$	120,689


Pro-rata Joint Venture Interest:
Mission Oaks**	6/28/2015	6/28/2017	LIBOR + 2.50%		2.75	%	$	6,225

*	Located at 3350 Tyburn St., 3332 - 3424 N. San Fernando Rd.

**	3001, 3175 & 3233 Mission Oaks Blvd. structured as 3 separate cross-collateralized loans with similar terms.

Consolidated Debt Composition:


Category	Avg. Term Remaining (yrs)	Stated Interest Rate	Effective Interest Rate			Balance		% of Total
Fixed	1.4	5.45%		5.45	%	$	5,189		4	%
Variable	4.5	LIBOR + 1.88%		2.06	%	$	115,500		96	%

Secured	4.5			2.29	%	$	107,939		89	%
Unsecured credit facility	3.0			1.54	%	$	12,750		11	%

Debt Maturity Schedule:


Year	Secured		Unsecured Credit Facility		Total		% Total			Interest Rate
2013	$		$		$			0	%
2014								0	%
2015		5,189				5,189		4	%		5.45	%
2016		42,750		12,750		55,500		46	%		2.04	%
2017								0	%
2018								0	%
2019		60,000				60,000		50	%		2.09	%
Thereafter								0	%

Total	$	107,939	$	12,750	$	120,689		100	%		2.21	%

Second Quarter 2013

Page 13

Supplemental Financial Reporting Package


Portfolio Overview		(in thousands, except PSF figures)

at 6/30/2013		(unaudited results)

Consolidated Portfolio:


										Ann. Base Rent
Market	# Properties	% Owned*			Pro-rata Sq. Ft.		Occ. %			Total		per SF

Greater San Fernando Valley**	12		99.9	%		1,235,592		93.1	%	$	11,236	$	9.77
San Gabriel Valley	6		100.0	%		612,482		96.8	%		5,643	$	9.52
Central LA	1		100.0	%		190,663		100.0	%		1,258	$	6.60
Mid-Counties	4		100.0	%		522,430		86.8	%		3,215	$	7.09
South Bay	6		100.0	%		335,258		73.8	%		1,855	$	7.49

Los Angeles County	29		99.9	%		2,896,425		90.9	%		23,207	$	8.81

North Orange County	2		80.0	%		178,908		90.9	%	$	1,417	$	8.71
Airport	4		100.0	%		289,040		86.4	%		1,952	$	7.81

Orange County	6		91.3	%		467,948		88.1	%		3,369	$	8.17

Inland Empire West	5		100.0	%		495,561		81.2	%	$	3,767	$	9.37
Inland Empire East	2		100.0	%		85,282		89.1	%		433	$	5.70

San Bernardino County	7		100.0	%		580,843		82.3	%		4,200	$	8.78

Camarillo / Oxnard	3		100.0	%		410,533		97.3	%	$	2,992	$	7.49

Ventura County	3		100.0	%		410,533		97.3	%		2,992	$	7.49

North County	7		100.0	%		709,251		83.9	%	$	4,976	$	8.36
Central	1		100.0	%		40,022		100.0	%		439	$	10.97
South County	1		100.0	%		78,615		68.1	%		467	$	8.73

San Diego County	9		100.0	%		827,888		83.2	%		5,882	$	8.54

Other	1		100.0	%		37,992		67.2	%	$	321	$	12.58

Cons. Total / Wtd. Avg.	55		99.1	%		5,221,629		88.8	%	$	39,971	$	8.62

*	Includes 901 W. Alameda Ave. (Burbank) and 2300-2386 East Walnut Ave. (Walnut), which were 96.8% and 72.2% owned, respectively as of 6/30/13. These properties are 100% owned following the IPO.

**	Does not include two properties, 18310 - 18330 Oxnard St. (Tarzana) and 8101 - 8117 Orion Ave. (Orion), acquired after 6/30/13. The two properties total 123,676 SF with $1,155,984 in annualized base rent.

Unconsolidated Joint Ventures:


Camarillo / Oxnard	3	15.0	%	178,261	73.0	%	$	787	$	6.05
San Diego Central	1	70.0	%	68,577	85.3	%	$	716	$	12.24

Uncons. Total / Wtd. Avg.	4	20.8	%	246,838	76.4	%	$	1,503	$	7.97

Total Portfolio:


Grand Total / Wtd. Avg.	59	83.4	%	5,468,467	88.3	%	$	41,474	$	8.59

Second Quarter 2013

Page 14

Supplemental Financial Reporting Package


Leasing Statistics		(in thousands, except PSF figures)

(unaudited results, data represents consolidated portfolio only on a pro rata basis)

Leasing Activity:


	# Leases Signed	SF of Leasing		Wtd. Avg. Lease Term		Rent Change - Cash			Rent Change - GAAP
Second Quarter 2013:
New	46		256,594		3.2		(1.8	%)		10.0	%
Renewal*	47		232,606		4.0		(3.2	%)		7.4	%

Total/Weighted Average	93		489,200		3.6		(2.8	%)		8.2	%

*	Over 80% of lease renewals during the quarter achieved flat or positive cash rent growth.

Uncommenced Leases by County:


Market	Leased SF		Uncomm. Lease Ann. Base Rent		Total Pro Forma Ann. Base Rent		Pro Forma Occupancy %			Pro Forma Ann. Base Rent per SF
Los Angeles County		66,555	$	519	$	23,318		91.6	%	$	8.79
Orange County		21,984		202		3,484		91.2	%	$	8.17
San Bernardino County		33,601		264		4,445		87.7	%	$	8.73
Ventura County						2,992		97.3	%	$	7.49
San Diego County		28,150		197		5,846		84.6	%	$	8.34
Other		678		9		331		69.0	%	$	12.62

Total/Weighted Average		150,968	$	1,191	$	40,417		90.3	%	$	8.57

Lease Expiration Schedule:


Year of Lease Expiration	# of Leases Expiring	Total Rentable SF		Ann. Base Rent		% of Ann. Base Rent			Ann. Base Rent per SF
Available			583,166
MTM Tenants	38		71,566	$	661		1.7	%	$	9.23
2013	122		680,831		6,301		15.8	%	$	9.25
2014	218		1,469,694		12,291		30.7	%	$	8.36
2015	122		901,799		7,107		17.8	%	$	7.88
2016	61		593,211		5,165		12.9	%	$	8.71
2017	17		341,415		2,880		7.2	%	$	8.44
2018	15		216,934		2,149		5.4	%	$	9.91
2019	3		55,787		583		1.5	%	$	10.44
2020	3		77,888		1,596		4.0	%	$	20.50
2021	1		1,680		29		0.1	%	$	17.29
2022	1		107,861		440		1.1	%	$	4.08
Thereafter	2		119,797		769		1.9	%	$	6.42

Total Portfolio	603		5,221,629	$	39,971		100.0	%	$	8.62

Second Quarter 2013

Page 15

Supplemental Financial Reporting Package


Top Tenants and Lease Segmentation		(in thousands)

(unaudited results, data represents consolidated portfolio only on a pro rata basis)

Top 10 Tenants:


Tenant	Submarket	Leased SF		% of Total Ann. Base Rent			Ann. Base Rent per SF		Lease Expiration
State of California	Inland Empire West		58,781		2.6	%	$	17.88		3/31/2020
Biosense	LA - San Gabriel Valley		76,000		2.4	%	$	12.73		10/31/2014
ITT Industries, Inc.	LA - San Gabriel Valley		67,838		2.3	%	$	13.83		9/30/2013
Dr. Bonners Magic Soaps	San Diego - North		118,597		1.9	%	$	6.24		11/30/2024
Towne Inc.	OC - Airport		122,060		1.7	%	$	5.56		7/31/2014
Team Acquisition Corp	LA - San Fern. Valley		19,782		1.5	%	$	30.28		12/31/2016
L&L Printers Carlsbad	San Diego - North		61,620		1.4	%	$	9.12		2/28/2017
Royal Printex	LA - Central		78,928		1.4	%	$	6.85		1/31/2017
Sonic Electronix	LA - San Fern. Valley		71,268		1.3	%	$	7.50		8/31/2014
PureTek	LA - San Fern. Valley		76,993		1.3	%	$	6.84		11/30/2015

Top 10 Total / Wtd. Avg.			751,867		17.9	%	$	9.49

Lease Segmentation by Size:


Square Feet	Number of Leases	Leased SF		Ann. Base Rent		% of Total Ann. Base Rent			Ann. Base Rent per SF
<4,999	409		844,917	$	7,956		19.9	%	$	9.42
5,000 - 9,999	76		516,499		4,659		11.7	%	$	9.02
10,000 - 24,999	80		1,240,073		11,384		28.5	%	$	9.18
25,000 - 49,999	22		762,675		6,167		15.4	%	$	8.09
>50,000	16		1,274,299		9,806		24.5	%	$	7.70

Total / Wtd. Avg.	603		4,638,463	$	39,971		100.0	%	$	8.62

Second Quarter 2013

Page 16

Supplemental Financial Reporting Package


Occupancy and Leasing Trends

(unaudited results, data represents consolidated portfolio only on a pro rata basis)

Occupancy by County:


	Jun. 30, 2013			Mar. 31, 2013			Dec. 31, 2012			Sep. 30 2012			Jun. 30, 2012
Occupancy:
Los Angeles County		90.9	%		90.9	%		90.2	%		86.1	%		83.9	%
Orange County		88.1	%		93.4	%		83.5	%		90.2	%		92.2	%
San Bernardino County		82.3	%		83.0	%		84.5	%		83.8	%		76.2	%
Ventura County		97.3	%		99.6	%		95.0	%		95.4	%		83.0	%
San Diego County		83.2	%		61.1	%		62.0	%		60.4	%		55.8	%
Other		67.2	%		75.6	%		85.3	%		85.5	%		91.6	%

Total/Weighted Average		88.8	%		85.6	%		84.6	%		82.6	%		79.1	%


Portfolio pro-rata SF		5,221,629			4,573,701			4,845,117			4,638,321			4,638,321

Leasing Activity:


	Three Months Ended
	Jun. 30, 2013			Mar. 31, 2013			Dec. 31, 2012			Sep. 30 2012			Jun. 30, 2012
Leasing Activity (SF):*
New leases		256,594			281,107			200,342			314,167			179,558
Renewal		232,606			331,315			223,883			221,099			441,337

Gross leasing		489,200			612,422			424,225			535,266			620,895

Expiring leases		327,747			417,639			282,837			357,825			592,594

Net absorption		161,453			194,783			141,388			177,441			28,301
Retention rate		71	%		79	%		79	%		62	%		74	%

*	Excludes month-to-month tenants.

Second Quarter 2013

Page 17

Supplemental Financial Reporting Package


Capital Expenditure Summary

(unaudited results, data represents consolidated portfolio only on a pro rata basis)

Most Recent Quarter:


	Amount			SF		PSF
Tenant Improvements:
New Leases - 1st Gen.	$	140,000			41,081	$	3.41
New Leases - 2nd Gen.	$	39,000			22,116	$	1.76
Renewals	$	27,000			21,186	$	1.27

Leasing Commissions:
New Leases - 1st Gen.	$	459,000			186,509	$	2.46
New Leases - 2nd Gen.	$	101,000			111,812	$	0.90
Renewals	$	200,000			190,866	$	1.05

Total Recurring Capex:
Recurring Capex	$	323,000			5,221,629	$	0.06
Recurring Capex % NOI		4.3	%

Nonrecurring Capex	$	200,000			5,221,629	$	0.04

Year-to-Date:


	Amount			SF		PSF
Tenant Improvements:
New Leases - 1st Gen.	$	152,000			77,267	$	1.97
New Leases - 2nd Gen.	$	93,000			78,623	$	1.18
Renewals	$	41,000			46,576	$	0.88

Leasing Commissions:
New Leases - 1st Gen.	$	498,000			218,420	$	2.28
New Leases - 2nd Gen.	$	154,000			159,164	$	0.97
Renewals	$	250,000			257,066	$	0.97

Total Recurring Capex:
Recurring Capex	$	395,000			4,994,586	$	0.08
Recurring Capex % NOI		2.9	%

Nonrecurring Capex	$	545,000			4,994,586	$	0.11

Second Quarter 2013

Page 18

Supplemental Financial Reporting Package


Properties Under Repositioning

		(unaudited results, all figures pro-rata except SF)

Acquisition and Investment Detail:


Property	Ownership %			Total SF presented on a wholly owned basis		Acquisition Date		Occupancy % at June 30, 2013			Purchase Price ($ in MM)		Inv.-to- date ($ in MM)		Projected Total Inv. ($ in MM)
Work In Progress:
3233 Mission Oaks Blvd.		15.0	%		452,111		Jun-12		32	%	$	2.3	$	2.6	$	3.5
Glendale*		100.0	%		38,665		Apr-08		0	%	$	6.0	$	7.5		N/A
1661 240th St.		100.0	%		100,851		May-13		39	%	$	5.0	$	5.0	$	7.6

Grand Total / Wtd. Avg.					591,627				31	%	$	13.3	$	15.1	$	11.1

*	Located at 700 Allen Ave., 1840 Dana St., & 1830 Flower St.

Second Quarter 2013

Page 19

Supplemental Financial Reporting Package


Acquisitions and Dispositions Summary

		(unaudited results, data presented on a wholly owned basis)

Acquisitions:


Date	Property	Address	Submarket	SF		Price ($ in MM)		Occ. % at Acquisition			Occ. % at June 30, 2013
May-11	Vinedo	122-125 North Vinedo Ave.	LA - San Fern. Valley		48,381	$	5.2		100	%		100	%
Aug-11	MacArthur	3441 W MacArthur Blvd.	OC - Airport		122,060	$	8.5		100	%		100	%
Aug-11	Odessa	6701 & 6711 Odessa Ave.	LA - San Fern. Valley		29,544	$	2.8		0	%		100	%
Nov-11	Golden Valley	13914-13932 Valley Blvd.	LA - San Gabriel		58,084	$	3.6		70	%		82	%
Nov-11	Jersey	10700 Jersey Blvd.	Inland Empire West		107,568	$	7.6		80	%		89	%
Dec-11	Shoemaker	14944, 14946 & 14948 Shoemaker Ave.	LA - Mid-counties		85,950	$	5.7		68	%		88	%
Dec-11	Arrow	15705, 15709 Arrow Highway & 5220 Forth St.	LA - San Gabriel		69,592	$	5.5		91	%		95	%
Dec-11	Normandie	20920-20950 Normandie Ave.	LA - South Bay		49,466	$	4.4		73	%		87	%
Dec-11	Paramount	6423-6431 & 6407-6119 Alondra Blvd.	LA - South Bay		30,224	$	2.6		100	%		74	%
Mar-12	Campus	1400 S. Campus Ave.	Inland Empire West		107,861	$	4.8		100	%		100	%
May-12	Zenith	500-560 Zenith Dr.	Illinois		37,992	$	1.6		72	%		67	%
Jun-12	Mission Oaks	3001, 3175 & 3233 Mission Oaks Blvd.	Ventura County		1,188,407	$	59.1		73	%		73	%
Dec-12	Calvert	15041 Calvert St.	LA - San Fern. Valley		81,282	$	5.6		100	%		100	%
Dec-12	Del Norte	701 Del Norte Blvd.	Ventura County		125,514	$	9.5		95	%		91	%
Apr-13	Broadway	18118-18120 S. Broadway	LA - South Bay		78,183	$	5.4		100	%		100	%
Apr-13	Glendale Commerce Center	3350 Tyburn St., 3332 - 3424 N. San Fernando Rd.	LA - San Fern. Valley		473,345	$	56.2		100	%		100	%
Apr-13	Benson	8900-8980 Benson Ave., 5637 Arrow Highway	Inland Empire West		88,146	$	7.2		84	%		86	%
May-13	240th Street	1661 240th St.	LA - South Bay		100,851	$	5.0		39	%		39	%
Jul-13	Orion	8101-8117 Orion Ave.	LA - San Fern. Valley		48,388	$	5.6		90	%		NA
Aug-13	Tarzana	18310-18330 Oxnard St.	LA - San Fern. Valley		75,288	$	8.4		81	%		NA

Dispositions:

Date

Property

Address

Submarket

Sale Price
($ in MM)

Reason for Selling

Jan-13

Bonnie Beach

4578 Worth Street

LA - Central

79,370

4.1

User sale

May-13

Glenoaks

9027 Glenoaks Blvd.

LA - San Fern. Valley

14,700

1.7

User sale

Apr-13

Williams

1950 East Williams Drive

Ventura County

161,682

8.5

Marketed sale

May-13

Interstate

2441, 2507, 2515 W. Erie Dr., & 2929 S. Fair Lane

Arizona

83,385

5.0

Non-strategic location

Jun-13

Knollwood

1255 Knollwood Circle

OC - North

25,162

2.8

User sale

Second Quarter 2013

Page 20

Supplemental Financial Reporting Package

Definitions / Discussion of Non-GAAP Financial Measures

Adjusted Funds from Operations (AFFO): We calculate adjusted funds from operations, or AFFO, by adding to or subtracting from FFO (i) non-cash operating revenues and expenses, (ii) capitalized operating expenditures such as leasing payroll, (iii) recurring capital expenditures required to maintain and re-tenant our properties, (iv) regular principal payments required to service our debt, and (v) 2nd generation tenant improvements and leasing commissions. Management uses AFFO as a supplemental performance measure because it provides a performance measure that, when compared year over year, captures trends in portfolio operating results. We also believe that, as a widely recognized measure of the performance of REITs, AFFO will be used by investors as a basis to assess our performance in comparison to other REITs. However, because AFFO may exclude certain non-recurring capital expenditures and leasing costs, the utility of AFFO as a measure of our performance is limited. Additionally, other Equity REITs may not calculate AFFO using the method we do. As a result, our AFFO may not be comparable to such other Equity REITs AFFO. AFFO should be considered only as a supplement to cash flow from operating activities (as computed in accordance with GAAP) as a measure of our performance.

Annualized Base Rent: Calculated for each lease as the latest monthly contracted base rent per the terms of such lease multiplied by 12. Excludes billboard and antenna revenue and rent abatements.

Capital Expenditures, Non-recurring: Expenditures made in respect of a property for improvement to the appearance of such property or any other major upgrade or renovation of such property, and further includes capital expenditures for seismic upgrades, or capital expenditures for deferred maintenance existing at the time such property was acquired.

Capital Expenditures, Recurring: Expenditures made in respect of a property for maintenance of such property and replacement of items due to ordinary wear and tear including, but not limited to, expenditures made for maintenance or replacement of parking lot, roofing materials, mechanical systems, HVAC systems and other structural systems. Recurring capital expenditures shall not include any of the following: (a) improvements to the appearance of such property or any other major upgrade or renovation of such property not necessary for proper maintenance or marketability of such property; (b) capital expenditures for seismic upgrades; or (c) capital expenditures for deferred maintenance for such property existing at the time such property was acquired.

Capital Expenditures, First Generation: Capital expenditures for newly acquired space, newly developed or redeveloped space, or change in use. These costs are subtracted in our calculation of Cash Available for Distribution.

Cash Available for Distribution (CAD): We calculate cash available for distribution, or CAD, by adding to or subtracting from AFFO (i) first generation tenant improvements and leasing commissions costs and (ii) non-recurring capital expenditures. Management uses CAD, together with FFO and AFFO, as a supplemental performance measure. Other Equity REITs may not calculate CAD using the method we do. As a result, our CAD may not be comparable to such other Equity REITs CAD. CAD should not be considered as an alternative to net income (determined in accordance with GAAP) as an indication of our performance, as an alternative to net cash flows from operating activities (determined in accordance with GAAP), or as a measure of our liquidity.

Cash NOI: Cash basis NOI is a non-GAAP measure, which we calculate by adding or subtracting from NOI i) fair value lease revenue and ii) straight-line rent adjustment. We use Cash NOI, together with NOI, as a supplemental performance measure. Cash NOI should not be used as a measure of our liquidity, nor is it indicative of funds available to fund our cash needs. Cash NOI should not be used as a substitute for cash flow from operating activities computed in accordance with GAAP. We use Cash NOI to help evaluate the performance of the Company as a whole, as well as the performance of our Same Property Portfolio.

EBITDA: We believe that EBITDA is helpful to investors as a supplemental measure of our operating performance as a real estate company because it is a direct measure of the actual operating results of our industrial properties. We also use this measure in ratios to compare our performance to that of our industry peers. In addition, we believe EBITDA is frequently used by securities analysts, investors and other interested parties in the evaluation of Equity REITs. However, because EBITDA is calculated before recurring cash charges including interest expense and income taxes, and is not adjusted for capital expenditures or other recurring cash requirements of our business, its utility as a measure of our liquidity is limited. Accordingly, EBITDA should not be considered an alternative to cash flow from operating activities (as computed in accordance with GAAP) as a measure of our liquidity. EBITDA should not be considered as an alternative to net income or loss as an indicator of our operating performance. Other Equity REITs may calculate EBITDA differently than we do; accordingly, our EBITDA may not be comparable to such other Equity REITs EBITDA.

Investment to Date and Total: Reflects the total purchase price for a property plus additional or planned tangible investment subsequent to acquisition.

Funds from Operations (FFO): We calculate FFO before non-controlling interest in accordance with the standards established by the National Association of Real Estate Investment Trusts (NAREIT). FFO represents net income (loss) (computed in accordance with GAAP), excluding gains (or losses) from sales of depreciable operating property, real estate related depreciation and amortization (excluding amortization of deferred financing costs) and after adjustments for unconsolidated partnerships and joint ventures. Management uses FFO as a supplemental performance measure because, in excluding real estate related depreciation and amortization, gains and losses from property dispositions, other than temporary impairments of unconsolidated real estate entities, and impairment on our investment in real estate, it provides a performance measure that, when compared year over year, captures trends in occupancy rates, rental rates and operating costs. We also believe that, as a widely recognized measure of performance used by other REITs, FFO may be used by investors as a basis to compare our operating performance with that of other REITs. However, because FFO excludes depreciation and amortization and captures neither the changes in the value of our properties that result from use or market conditions nor the level of capital expenditures and leasing commissions necessary to maintain the operating performance of our properties, all of which have real economic effects and could materially impact our results from operations, the utility of FFO as a measure of our performance is limited. Other equity REITs may not calculate or interpret FFO in accordance with the NAREIT definition as we do, and, accordingly, our FFO may not be comparable to such other REITs FFO. FFO should not be used as a measure of our liquidity, and is not indicative of funds available for our cash needs, including our ability to pay dividends.

Second Quarter 2013

LOGO

Page 21

Supplemental Financial Reporting Package

Definitions / Discussion of Non-GAAP Financial Measures

Properties Under Repositioning: Typically defined as properties were space is held vacant in order to implement capital improvements that improve the market rentability of that space. Considered completed once investment is fully or nearly fully deployed.

NOI: Includes the revenue and expense directly attributable to our real estate properties calculated in accordance with GAAP. Calculated as total revenue from real estate operations including i) rental revenues ii) tenant reimbursements, and iii) other income less property expenses and other property expenses (before interest expense, depreciation and amortization). We use NOI as a supplemental performance measure because, in excluding real estate depreciation and amortization expense and gains (or losses) from property dispositions, it provides a performance measure that, when compared year over year, captures trends in occupancy rates, rental rates and operating costs. We also believe that NOI will be useful to investors as a basis to compare our operating performance with that of other REITs. However, because NOI excludes depreciation and amortization expense and captures neither the changes in the value of our properties that result from use or market conditions, nor the level of capital expenditures and leasing commissions necessary to maintain the operating performance of our properties (all of which have real economic effect and could materially impact our results from operations), the utility of NOI as a measure of our performance is limited. Other equity REITs may not calculate NOI in a similar manner and, accordingly, our NOI may not be comparable to such other REITs NOI. Accordingly, NOI should be considered only as a supplement to net income as a measure of our performance. NOI should not be used as a measure of our liquidity, nor is it indicative of funds available to fund our cash needs. NOI should not be used as a substitute for cash flow from operating activities in accordance with GAAP. We use NOI to help evaluate the performance of the Company as a whole, as well as the performance of our Same Property Portfolio.

Rent Change - Cash: Compares the first month cash rent excluding any abatement on new leases to the last month rent for the most recent expiring lease. Data included for comparable leases only. Comparable leases generally exclude properties under repositioning, short-term leases, and space that has been vacant for over one year.

Rent Change - GAAP: Compares GAAP rent, which straightlines rental rate increases and abatement, on new leases to GAAP rent for the most recent expiring lease. Data included for comparable leases only. Comparable leases generally exclude properties under repositioning, short-term leases, and space that has been vacant for over one year.

Same Property Portfolio: Determined independently for each period presented. Comparable properties must have been owned for the entire current and prior periods presented. The companys computation of same property performance may not be comparable to other real estate companies.

Uncommenced Leases: Reflects signed leases that have not yet commenced as of the reporting date.

Second Quarter 2013

Page 22

Supplemental Financial Reporting Package

Form: 8-K

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