November 12, 2013 - EX-99.1 - 8-K: Current report filing | Rexford Industrial Realty, Inc. (REXR)

Exhibit 99.1

LOGO

Rexford Industrial Realty, Inc.

NYSE: REXR

11620 Wilshire Blvd

Suite 1000

Los Angeles, CA 90025

310-966-1680

www.RexfordIndustrial.com

LOGO

Table of Contents


Section		Page

Corporate Data:

Investor Company Summary		3

Financial and Portfolio Highlights and Common Stock Data		4

Consolidated and Combined Financial Results:

Consolidated and Combined Balance Sheet		5

Consolidated and Combined Statement of Operations		6 - 7

Non-GAAP FFO and AFFO Reconciliations		8

Statement of Operations Reconciliations		9

Same Property Portfolio Performance		10 -11

Joint Venture Financial Summary		12 -13

Capitalization Summary		14

Debt Summary		15

Portfolio Data:

Portfolio Overview		16

Leasing Statistics		17

Top Tenants and Lease Segmentation		18

Occupancy and Leasing Trends		19

Capital Expenditure Summary		20

Properties Under Repositioning		21

Acquisitions and Dispositions Summary		22

Definitions / Discussion of Non-GAAP Financial Measures		23 -24

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.

Third Quarter 2013

Supplemental Financial Reporting Package

Page 2

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
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.

Third Quarter 2013

Supplemental Financial Reporting Package

Page 3

Financial and Portfolio Highlights and Common Stock Data ⁽¹⁾

(in thousands except per share figures and portfolio statistics)


	Period Ended
	July 24, 2013 to Sep. 30, 2013⁽²⁾
Financial Results:
Total rental revenues	$	8,982
Straight line rent		290
Fair value lease revenue		(122	)
Net income attributable to common stockholders		256
Net income per common share - diluted	$	0.01
Company share of FFO		3,001
FFO per common share - diluted	$	0.12
EBITDA		4,074
Adjusted EBITDA		4,309
Portfolio Statistics:
Portfolio SF - consolidated		5,489,496
Ending occupancy - consolidated portfolio		88.0	%
Pro-forma occupancy including uncommenced leases		89.8	%
Leasing spreads - cash		-1.1	%
Leasing spreads - GAAP		6.7	%
Same Property Performance: ⁽³⁾
Total rental revenue growth		17	%
Total property expense growth		12	%
NOI growth		19	%
Cash NOI growth		15	%
Ending occupancy		87.3	%
Occupancy growth (ppt)		5.6	%
Capitalization:
Common stock price at quarter end	$	13.51
Common shares issued and outstanding		24,757,841
Total shares and units issued and outstanding at period end ⁽⁴⁾		28,454,927
Weighted average shares outstanding - diluted		24,574,432
Total equity market capitalization	$	384,426
Consolidated debt		122,795
Total debt (pro-rata) ⁽⁵⁾		129,020
Total combined market capitalization		513,446
Ratios:
Total debt (pro-rata) to total combined market capitalization		25.1	%
Total debt (pro-rata) to adjusted EBITDA (7/24/13-9/30/13 annualized)		5.7x

⁽¹⁾	For a definition and discussion of non-GAAP financial measures, see the definitions section beginning on page 23 of this report.

⁽²⁾	The financials reflect operations since the completion of our intial public offering on July 24, 2013.

⁽³⁾	Comparison of the three months ended September 30, 2013 to the three months ended September 30, 2012.

⁽⁴⁾	Includes 3,697,086 operating partnership units and excludes 920,734 unvested shares of restricted stock.

⁽⁵⁾	Includes our 15% share of debt in our Mission Oaks joint venture.

Third Quarter 2013

Supplemental Financial Reporting Package

Page 4

Consolidated and Combined Balance Sheet

(in thousands)


	Rexford Industrial Realty, Inc.		Rexford Industrial Realty, Inc. Predecessor
	September 30, 2013		June 30, 2013			March 31, 2013			December 31, 2012
	(unaudited)		(unaudited)			(unaudited)
Assets
Investments in real estate, net	$	438,761	$	385,691		$	318,886		$	320,962
Cash and cash equivalents		4,399		24,951			47,446			43,499
Restricted cash		298		2,026			2,086			1,882
Notes receivable		13,153		7,876			7,903			11,911
Rents and other receivables, net		869		685			446			560
Deferred rent receivable		3,746		3,969			3,949			3,768
Deferred leasing costs and in-place lease intangibles, net		11,601		7,805			4,518			5,012
Deferred loan costs, net		1,609		1,504			1,154			1,396
Acquired above-market leases, net		1,888		1,614			127			179
Other assets		2,321		4,574			3,875			1,870
Acquisition related deposits		1,435		210			2,483			260
Investment in unconsolidated real estate entities		8,982		11,486			12,362			12,697
Assets associated with real estate held for sale							15,156			16,500

Total Assets	$	489,062	$	452,391		$	420,391		$	420,496

Liabilities
Notes payable	$	122,857	$	351,187		$	306,958		$	302,830
Accounts payable, accrued expenses and other liabilities		4,602		2,518			3,030			2,589
Due to members										1,221
Interest rate contracts										49
Acquired below-market leases, net		535		65			32			39
Tenant security deposits		4,942		4,623			4,177			3,753
Prepaid rents		524		603			406			334
Liabilities associated with real estate held for sale							10,881			13,433

Total Liabilities		133,460		358,996			325,484			324,248

Equity
Rexford Industrial Realty Inc. common stock	$	257	$			$			$
Rexford Industrial Realty Inc. additional paid-in capital		308,937
Rexford Industrial Realty Inc. accumulated deficit		256

Total Rexford Industrial Realty Inc. stockholders equity		309,450

Predecessor equity				11,968			11,968			11,962
Predecessor accumulated deficit and distributions				(27,592	)		(25,271	)		(24,653	)

Total Rexford Industrial Realty, Inc./Predecessor Equity		309,450		(15,624	)		(13,303	)		(12,691	)

Noncontrolling interests		46,152		109,019			108,210			108,939

Total Equity		355,602		93,395			94,907			96,248

Total Liabilities and Equity	$	489,062	$	452,391		$	420,391		$	420,496

Third Quarter 2013

Supplemental Financial Reporting Package

Page 5

Consolidated and Combined Statement of Operations

Quarter and Year-to-Date Results

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


	Rexford Industrial Realty, Inc.			Rexford Industrial Realty, Inc. Predecessor						Rexford Industrial Realty, Inc.			Rexford Industrial Realty, Inc. Predecessor
	July 24, 2013 to Sep. 30, 2013 ⁽¹⁾			July 1, 2013 to July 23, 2013			Three months ended September 30, 2012			July 24, 2013 to Sep. 30, 2013 ⁽¹⁾			Jan. 1, 2013 to July 23, 2013			Nine months ended September 30, 2012
	(unaudited)			(unaudited)			(unaudited)			(unaudited)			(unaudited)			(unaudited)
Rental Revenues
Rental revenues	$	7,798		$	2,460		$	6,875		$	7,798		$	19,392		$	20,658
Tenant reimbursements		863			265			770			863			2,239			2,184
Management, leasing, and development services		281			13			174			281			444			344
Other income		40			20			28			40			187			78

Total rental revenues		8,982			2,758			7,847			8,982			22,262			23,264
Interest income		191			63			397			191			698			1,182

Total Revenues		9,173			2,821			8,244			9,173			22,960			24,446
Operating Expenses
Property expenses	$	2,060		$	576		$	2,073		$	2,060		$	5,139		$	6,241
General and administrative		2,500			1,885			1,727			2,500			4,420			3,884
Depreciation and amortization		3,062			901			3,037			3,062			7,641			9,240
Other property expenses		503			124			316			503			904			945

Total Operating Expenses		8,125			3,486			7,153			8,125			18,104			20,310
Other (Income) Expense
Acquisition expenses	$	119		$	7		$	11		$	119		$	724		$	245
Interest expense		717			1,270			4,426			717			9,593			12,931
Gain on mark-to-market of interest rate swaps								(611	)					(49	)		(1,835	)

Total Other Expense		836			1,277			3,826			836			10,268			11,341

Total Expenses		8,961			4,763			10,979			8,961			28,372			31,651

Equity in income (loss) from unconsolidated real estate entities	$	83		$	9		$	99		$	83		$	(915	)	$	66
Gain from early repayment of note receivable														1,365
Loss on extinguishment of debt					(3,935	)								(3,972	)

Net Income (Loss) from Continuing Operations	$	295		$	(5,868	)	$	(2,636	)	$	295		$	(8,934	)	$	(7,139	)

Discontinued Operations
Loss from discontinued operations before gains on sale of real estate	$			$			$	(68	)	$			$	(86	)	$	(136	)
Loss on extinguishment of debt														(250	)
Gain on sale of real estate														4,989

Income (Loss) from Discontinued Operations	$			$			$	(68	)	$			$	4,653		$	(136	)

Net Income (Loss)	$	295		$	(5,868	)	$	(2,704	)	$	295		$	(4,281	)	$	(7,275	)

Net (income) loss attributable to noncontrolling interests	$	(39	)	$	3,559		$	970		$	(39	)	$	15		$	3,912

Net Income (Loss) Attributable to Common Stockholders/Predecessor	$	256		$	(2,309	)	$	(1,734	)	$	256		$	(4,266	)	$	(3,363	)

Earnings per Common Share - Basic and Diluted
Net income per common share - basic	$	0.01								$	0.01

Weighted average shares outstanding - basic		24,574,432									24,574,432

Net income per common share - diluted	$	0.01								$	0.01

Weighted average shares outstanding - diluted		24,574,432									24,574,432

⁽¹⁾	The financials reflect operations since the completion of our intial public offering on July 24, 2013.

Third Quarter 2013

Supplemental Financial Reporting Package

Page 6

Consolidated and Combined Statement of Operations

Quarterly Results

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


	Rexford Industrial Realty, Inc.			Rexford Industrial Realty, Inc. Predecessor
	July 24, 2013 to Sep. 30, 2013 ⁽¹⁾			July 1, 2013 to July 23, 2013			Three months ended June 30, 2013			Three months ended March 31, 2013
	(unaudited)			(unaudited)			(unaudited)			(unaudited)
Rental Revenues
Rental revenues	$	7,798		$	2,460		$	9,152		$	7,779
Tenant reimbursements		863			265			1,127			847
Management, leasing, and development services		281			13			170			261
Other income		40			20			49			118

Total rental revenues		8,982			2,758			10,498			9,005
Interest income		191			63			324			311

Total Revenues		9,173			2,821			10,822			9,316
Operating Expenses
Property expenses	$	2,060		$	576		$	2,442		$	2,120
General and administrative		2,500			1,885			1,396			1,139
Depreciation and amortization		3,062			901			3,564			3,175
Other property expenses		503			124			444			338

Total Operating Expenses		8,125			3,486			7,846			6,772
Other (Income) Expense
Acquisition expenses	$	119		$	7		$	624		$	93
Interest expense		717			1,270			4,467			3,857
Gain on mark-to-market of interest rate swaps											(49	)

Total Other Expense		836			1,277			5,091			3,901

Total Expenses		8,961			4,763			12,937			10,673

Equity in income (loss) from unconsolidated real estate entities	$	83		$	9		$	(712	)	$	(212	)
Gain from early repayment of note receivable											1,365
Loss on extinguishment of debt					(3,935	)					(37	)

Net Income (Loss) from Continuing Operations	$	295		$	(5,868	)	$	(2,827	)	$	(241	)

Discontinued Operations
Income (loss) from discontinued operations before gains on sale of real estate	$			$			$	(180	)	$	93
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)	$	295		$	(5,868	)	$	(468	)	$	2,052

Net (income) loss attributable to noncontrolling interests	$	(39	)	$	3,559		$	(1,818	)	$	(1,726	)

Net Income (Loss) Attributable to Common Stockholders/Predecessor	$	256		$	(2,309	)	$	(2,286	)	$	326

Earnings per Common Share - Basic and Diluted
Net income per common share - basic	$	0.01

Weighted average shares outstanding - basic		24,574,432

Net income per common share - diluted	$	0.01

Weighted average shares outstanding - diluted		24,574,432

⁽¹⁾	The financials reflect operations since the completion of our intial public offering on July 24, 2013.

Third Quarter 2013

Supplemental Financial Reporting Package

Page 7

Non-GAAP FFO and AFFO Reconciliations ⁽¹⁾

(in thousands)

(unaudited results)


	Rexford Industrial Realty, Inc.			Rexford Industrial Realty, Inc. Predecessor
							Three Months Ended
	July 24, 2013 to Sep. 30, 2013 ⁽²⁾			July 1, 2013 to July 23, 2013			June 30, 2013			March 31, 2013
Funds From Operations (FFO)
Net income (loss)	$	256		$	(5,868	)	$	(468	)	$	2,052
Add:
Depreciation and amortization, including amounts in discontinued operations		3,062			901			3,611			3,285
Depreciation and amortization from unconsolidated joint ventures and tenants in common		96			107			144			470
Impairment writedowns of depreciable real estate - unconsolidated joint ventures and tenants in common								837
Loss from early extinguishment of debt					3,935			41			246
Net income attributable to noncontrolling interests		39
Deduct:
Gains on sale of real estate								2,580			2,409

FFO available to common shareholders and unitholders	$	3,453		$	(925	)	$	1,585		$	3,644

Company share of FFO ⁽³⁾	$	3,001

FFO per share - basic	$	0.12

FFO per share - diluted	$	0.12

Weighted-average shares outstanding - basic		24,574,432
Weighted-average shares outstanding - diluted		24,574,432
Weighted-average diluted shares and units		28,271,518
Adjusted Funds From Operations (AFFO)
Add:
Amortization of deferred financing costs		93			127			406			251
Fair value lease revenue		122			44			155			55
Acquisition costs		119			7			624			93
Non-cash stock compensation		326			900			20			66
Deduct:
Straight line rent adjustment		290			41			44			196
Gain on mark-to-market interest rate swaps											49
Capitalized payments⁽⁴⁾		67			23			79			84
Note Receivable discount amortization		25			8			32			62
Note Payable premium amortization		9			3			12			12
Recurring capital expenditures ⁽⁵⁾		139						385			72
2nd generation tenant improvements and leasing commissions ⁽⁶⁾		166			(1	)		368			171
Unconsolidated joint venture AFFO adjustments		(7	)		(10	)		(18	)		(8	)

AFFO	$	3,424		$	89		$	1,888		$	3,471

⁽¹⁾	For a definition and discussion of non-GAAP financial measures, see the definitions section beginning on page 23 of this report.

⁽²⁾	The financials reflect operations since the completion of our intial public offering on July 24, 2013.

⁽³⁾	Based on weighted average interest in our operating partnership of 12.7% for the period from July 24, 2013 to September 30, 2013.

⁽⁴⁾	Includes capitalized leasing and development payroll.

⁽⁵⁾	Excludes nonrecurring capital expenditures of $414,000, $1,000, $200,000, and $345,000 for the period from July 24, 2013 to September 30, 2013, the period from July 1, 2013 to July 23, 2013, the three months ended June 30, 2013 and the three months ended March 31, 2013, respectively.

⁽⁶⁾

Excludes 1st generation tenant improvements and leasing commissions of $86,000, $27,000, $599,000, and $51,000 for the period from July 24, 2013 to September 30, 2013, the period from July 1, 2013 to July 23, 2013, the three months ended June 30, 2013, and the three months ended March 31, 2013, respectively.

Third Quarter 2013

Supplemental Financial Reporting Package

Page 8

Statement of Operations Reconciliations⁽¹⁾

(in thousands)

(unaudited results)


	Rexford Industrial Realty, Inc.			Rexford Industrial Realty, Inc. Predecessor
	July 24, 2013 to Sep. 30, 2013 ⁽²⁾			July 1, 2013 to July 23, 2013			Three Months Ended
	July 24, 2013 to Sep. 30, 2013 ⁽²⁾			July 1, 2013 to July 23, 2013			June 30, 2013			March 31, 2013
Net Operating Income (NOI)
Rental revenues	$	7,798		$	2,460		$	9,152		$	7,779
Tenant reimbursements		863			265			1,127			847
Other income		40			20			49			118

Total operating revenues		8,701			2,745			10,328			8,744
Property expenses		2,060			576			2,442			2,120
Other property expenses		503			124			444			338

Total operating expenses		2,563			700			2,886			2,458

NOI	$	6,138		$	2,045		$	7,442		$	6,286

Fair value lease revenue		122			44			155			55
Straight line rent adjustment		(290	)		(41	)		(44	)		(196	)

Cash NOI	$	5,970		$	2,048		$	7,553		$	6,145

Net Income (Loss)	$	295		$	(5,868	)	$	(468	)	$	2,052
Add:
General and administrative		2,500			1,885			1,396			1,139
Depreciation and amortization		3,062			901			3,564			3,175
Acquisition expenses		119			7			624			93
Interest expense		717			1,270			4,467			3,857
Gain on mark-to-market of interest rate swaps											(49	)
Subtract:
Management, leasing, and development services		281			13			170			261
Interest income		191			63			324			311
Equity in income (loss) from unconsolidated real estate entities		83			9			(712	)		(212	)
Gain from early repayment of note receivable											1,365
Loss on extinguishment of debt					(3,935	)					(37	)
Income from discontinued operations								2,359			2,293

NOI	$	6,138		$	2,045		$	7,442		$	6,286

Fair value lease revenue		122			44			155			55
Straight line rent adjustment		(290	)		(41	)		(44	)		(196	)

Cash NOI	$	5,970		$	2,048		$	7,553		$	6,145

EBITDA
Net income (loss)	$	295		$	(5,868	)	$	(468	)	$	2,052
Interest expense		717			1,270			4,467			3,857
Gain on mark-to-market of interest rate swaps											(49	)
Depreciation and amortization		3,062			901			3,564			3,175

EBITDA	$	4,074		$	(3,697	)	$	7,563		$	9,035

Loss on extinguishment of debt					3,935						37
Non-recurring legal fees		235

Adjusted EBITDA	$	4,309		$	238		$	7,563		$	9,072

⁽¹⁾	For a definition and discussion of non-GAAP financial measures, see the definitions section beginning on page 23 of this report.

⁽²⁾	The financials reflect operations since the completion of our intial public offering on July 24, 2013.

Third Quarter 2013

Supplemental Financial Reporting Package

Page 9

Same Property Portfolio Performance⁽¹⁾

Statement of Operations and NOI Reconciliation

(in thousands)

(unaudited results)

Same Property Portfolio Statement of Operations:


	Three Months Ending									Nine Months Ending
	September 30									September 30
	2013 ⁽²⁾			2012			Change			2013 ⁽²⁾			2012			Change
Rental Revenues
Rental revenues	$	8,158		$	6,942			18	%	$	22,538		$	20,320			11	%
Tenant reimbursements		865			770			12	%		2,507			2,129			18	%
Other operating revenues		36			27			33	%		198			76			161	%

Total rental revenues		9,059			7,739			17	%		25,243			22,525			12	%
Interest income		254			253			0	%		825			752			10	%

Total Revenues		9,313			7,992			17	%		26,068			23,277			12	%
Operating Expenses
Property expenses	$	2,130		$	2,034			5	%	$	6,007		$	6,025			(0	%)
Depreciation and amortization		3,013			3,226			(7	%)		8,834			9,398			(6	%)
Other property expenses		435			247			76	%		990			726			36	%

Total Operating Expenses		5,578			5,507			1	%		15,831			16,149			(2	%)
Other (Income) Expense
Interest expense		1,240			4,545			(73	%)		9,214			13,353			(31	%)

Total Other Expense		1,240			4,545			(73	%)		9,214			13,353			(31	%)

Total Expenses		6,818			10,052			(32	%)		25,045			29,502			(15	%)
Loss on extinguishment of debt		(3,424	)								(3,399	)

Net Income (Loss)	$	(929	)	$	(2,060	)		(55	%)	$	(2,376	)	$	(6,225	)		(62	%)


Same Property Portfolio NOI Reconciliation:

	Three Months Ending									Nine Months Ending
	September 30									September 30
	2013⁽²⁾			2012			Change			2013⁽²⁾			2012			Change
NOI
Net Income (Loss)	$	(929	)	$	(2,060	)				$	(2,376	)	$	(6,225	)
Add:
Interest expense		1,240			4,545						9,214			13,353
Depreciation and amortization		3,013			3,226						8,834			9,398
Deduct:
Loss on extinguishment of debt		(3,424	)								(3,399	)
Interest income		254			253						825			752

NOI	$	6,494		$	5,458			19	%	$	18,246		$	15,774			16	%

Straight-line rents		(261	)		(50	)					(241	)		(234	)
Amort. above/below market leases		7			37						70			106

Cash NOI	$	6,239		$	5,444			15	%	$	18,075		$	15,646			16	%

⁽¹⁾	For a definition and discussion of non-GAAP financial measures, see the definitions section beginning on page 23 of this report.

⁽²⁾	Includes Predecessor and Rexford Industrial Realty, Inc. results.

Third Quarter 2013

Supplemental Financial Reporting Package

Page 10

Same Property Portfolio Performance ⁽¹⁾

NOI Reconciliation, Portfolio Detail, and Occupancy

(in thousands)

(unaudited results)

Same Property Portfolio NOI Reconciliation Continued:


	Three Months Ending									Nine Months Ending
	September 30									September 30
	2013 ⁽²⁾			2012			Change			2013 ⁽²⁾			2012			Change
Rental revenues	$	8,158		$	6,942			18	%	$	22,538		$	20,320			11	%
Tenant reimbursements		865			770			12	%		2,507			2,129			18	%
Other operating revenues		36			27			33	%		198			76			161	%

Total rental revenue		9,059			7,739			17	%		25,243			22,525			12	%
Interest income		254			253			0	%		825			752			10	%

Total revenue		9,313			7,992			17	%		26,068			23,277			12	%
Property expenses		2,130			2,034			5	%		6,007			6,025			(0	%)
Other property expenses		435			247			76	%		990			726			36	%

Total property expense		2,565			2,281			12	%		6,997			6,751			4	%

NOI	$	6,494		$	5,458			19	%	$	18,246		$	15,774			16	%

Straight-line rents		(261	)		(50	)		419	%		(241	)		(234	)		3	%
Amort. above/below market leases		7			37			(82	%)		70			106			(34	%)

Cash NOI	$	6,239		$	5,444			15	%	$	18,075		$	15,646			16	%

Same Property Portfolio Detail:


	Three Months Ending September 30, 2013	Three Months Ending June 30, 2013	Nine Months Ending September 30, 2013
Same Property Portfolio:
Number of Properties	49	48	47
Square Feet (pro-rata)	4,320,532	4,236,316	4,174,679
Weighted Average Occupancy	87.3%	88.5%	87.1%

Same Property Portfolio Occupancy:

	September 30, 2013	September 30, 2012	Change (ppt)
Occupancy:
Los Angeles County	86.9%	85.5%	1.3%
Orange County	92.6%	89.2%	3.5%
San Bernardino County	85.8%	83.8%	1.9%
Ventura County	100.0%	97.2%	2.8%
San Diego County	82.5%	60.4%	22.0%
Other	69.0%	75.7%	(6.7%)

Total/Weighted Average	87.3%	81.6%	5.6%

⁽¹⁾	For a definition and discussion of non-GAAP financial measures, see the definitions section beginning on page 23 of this report.

⁽²⁾	Includes Predecessor and Rexford Industrial Realty, Inc. results.

Third Quarter 2013

Supplemental Financial Reporting Package

Page 11

Joint Venture Financial Summary

Balance Sheet

(in thousands)

(unaudited results)

Balance Sheet:

(Financials reflect 100% of property performance)


	Mission Oaks
	Three Months Ended
	Sep. 30, 2013 ⁽¹⁾			Jun. 30, 2013
Rexford Industrial Realty, Inc./Predecessor Ownership %:		15	%		15	%
Assets:
Investments in real estate, net	$	53,316		$	51,240
Cash and cash equivalents		781			1,758
Rents and other receivables, net		286			146
Deferred rent receivable		62			12
Deferred leasing costs and acquisition related intangible assets, net		5,913			6,165
Deferred loan costs, net		185			212
Acquired above-market leases, net		912			1,001
Other assets		73			101

Total Assets	$	61,528		$	60,634

Liabilities:
Notes payable	$	41,500		$	41,500
Accounts payable, accrued expenses and other liabilities		755			244
Tenant security deposits		267			267

Total Liabilities	$	42,522		$	42,011

Equity:
Equity		18,762			18,762
Accumulated deficit and distributions		244			(139	)

Total Equity		19,006			18,623

Total Liabilities and Equity	$	61,528		$	60,634

⁽¹⁾	Includes Predecessor and Rexford Industrial Realty, Inc. results.

Third Quarter 2013

Supplemental Financial Reporting Package

Page 12

Joint Venture Financial Summary⁽¹⁾

Statement of Operations

(in thousands)

(unaudited results)

Statement of Operations:

(Financials reflect 100% of property performance)


	Mission Oaks
	Three Months Ended
	Sep. 30, 2013 ⁽²⁾			Jun. 30, 2013
Rexford Industrial Realty, Inc./Predecessor Ownership %:		15	%		15	%
Income Statement
Rental revenues	$	1,427		$	1,272
Tenant reimbursements		330			261
Other operating revenues		455			294

Total revenue		2,212			1,827
Total operating expense		912			696

NOI		1,300			1,131

General and administrative		1			39
Depreciation and amortization		637			650
Interest expense		280			281

Total expense		1,830			1,667

Net Income (Loss)	$	382		$	160

EBITDA
Net income (loss)	$	382		$	160
Interest expense		280			281
Depreciation and amortization		637			650

EBITDA	$	1,299		$	1,092

Reconciliation - Equity Income in Joint Venture:
Net income (loss)	$	382		$	160
Rexford Industrial Realty, Inc./Predecessor Ownership %:		15	%		15	%
Company share		57			24
Intercompany eliminations		39			35

Equity in net income (loss) from unconsolidated real estate entities	$	97		$	60

⁽¹⁾	For a definition and discussion of non-GAAP financial measures, see the definitions section beginning on page 23 of this report.

⁽²⁾	Includes Predecessor and Rexford Industrial Realty, Inc. results.

Third Quarter 2013

Supplemental Financial Reporting Package

Page 13

Capitalization Summary

(unaudited results)

Capitalization as of September 30, 2013


Description	September 30, 2013
Common shares ⁽¹⁾		24,757,841
Operating partnership units		3,697,086

Total shares and units at period end ⁽¹⁾		28,454,927
Share price at 9/30/2013	$	13.51

Total Equity Market Capitalization	$	384,426,064
Consolidated debt	$	122,794,765
Plus: pro-rata share of debt related to unconsolidated JVs		6,225,000

Total Debt (pro-rata)	$	129,019,765

Total Combined Market Capitalization	$	513,445,829

Total debt (pro-rata) to total combined market capitalization		25.1	%
Total debt (pro-rata) to adjusted EBITDA (7/24/13-9/30/13 annualized)		5.7x

⁽¹⁾	Excludes 920,734 unvested shares of restricted stock.

Third Quarter 2013

Supplemental Financial Reporting Package

Page 14

Debt Summary

(in thousands)

(unaudited results)

Debt Detail:

As of September 30, 2013


Debt Description	Initial Maturity Date		Maturity Date w/ Extensions	Stated Interest Rate	Effective Interest Rate			Balance
Secured Debt:
Glendale Commerce Center⁽¹⁾		5/1/2016	5/1/2018	LIBOR + 2.00%		2.18	%	$	42,750
10700 Jersey Blvd.		1/1/2015	N/A	5.45%		5.45	%		5,170
Term Loan		8/1/2019	8/1/2020	LIBOR + 1.90%		2.08	%		60,000
Unsecured Credit Facility:
$200M facility		7/24/2016	7/24/2018	LIBOR + 1.50%		1.68	%		14,875

Total Consolidated:						2.21	%	$	122,795

Pro-rata Joint Venture Interest:
Mission Oaks ⁽²⁾		6/28/2015	6/28/2017	LIBOR + 2.50%		2.69	%	$	6,225

⁽¹⁾	Located at 3350 Tyburn St., 33323424 N. San Fernando Rd.

⁽²⁾	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		1.3	5.45%		5.45	%	$	5,170		4	%
Variable		4.3	LIBOR + 1.89%		2.07	%	$	117,625		96	%

Secured		4.3			2.28	%	$	107,920		88	%
Unsecured credit facility		2.8			1.68	%	$	14,875		12	%

Debt Maturity Schedule:


Year	Secured		Unsecured Credit Facility		Total		% Total			Interest Rate
2013	$		$		$			0	%
2014								0	%
2015		5,170				5,170		4	%		5.45	%
2016		42,750		14,875		57,625		47	%		2.05	%
2017								0	%
2018								0	%
2019		60,000				60,000		49	%		2.08	%
Thereafter								0	%

Total	$	107,920	$	14,875	$	122,795		100	%		2.21	%

Third Quarter 2013

Supplemental Financial Reporting Package

Page 15

Portfolio Overview

at 9/30/2013

(unaudited results)

Consolidated Portfolio:


											Ann. Base Rent
Market	# Properties		% Owned			Pro-rata Sq. Ft.		Occ. %			Total (in thousands)		per SF
Greater San Fernando Valley		14		100.0	%		1,360,719		90.2	%	$	12,234	$	9.97
San Gabriel Valley		6		100.0	%		612,482		97.6	%		5,731	$	9.59
Central LA		1		100.0	%		190,663		100.0	%		1,272	$	6.67
Mid-Counties		4		100.0	%		522,430		73.0	%		2,884	$	7.56
South Bay		6		100.0	%		335,258		79.3	%		1,995	$	7.51

Los Angeles County		31		100.0	%		3,021,552		88.1	%		24,117	$	9.06
North Orange County		2		100.0	%		223,681		93.7	%	$	1,787	$	8.53
Airport		4		100.0	%		289,040		91.8	%		2,128	$	8.02

Orange County		6		100.0	%		512,721		92.6	%		3,915	$	8.24
Inland Empire West		5		100.0	%		495,561		85.1	%	$	3,928	$	9.31
Inland Empire East		2		100.0	%		85,282		89.1	%		443	$	5.83

San Bernardino County		7		100.0	%		580,843		85.7	%		4,371	$	8.78
Camarillo / Oxnard		3		100.0	%		410,533		97.3	%	$	3,051	$	7.64

Ventura County		3		100.0	%		410,533		97.3	%		3,051	$	7.64
North County		7		100.0	%		709,251		83.0	%	$	4,908	$	8.34
Central		2		100.0	%		137,989		93.9	%		1,596	$	12.32
South County		1		100.0	%		78,615		68.6	%		472	$	8.76

San Diego County		10		100.0	%		925,855		83.4	%		6,977	$	9.04
Other(6)		1		100.0	%		37,992		69.0	%	$	362	$	13.82

Cons. Total / Wtd. Avg.		58		100.0	%		5,489,496		88.0	%	$	42,794	$	8.85


Unconsolidated Joint Ventures:
Camarillo / Oxnard		3		15.0	%		178,261		87.9	%	$	921	$	5.88

Uncons. Total / Wtd. Avg.		3		15.0	%		178,261		87.9	%	$	921	$	5.88


Total Portfolio:
Grand Total / Wtd. Avg.		61		84.9	%		5,667,757		88.0	%	$	43,715	$	8.76

Third Quarter 2013

Supplemental Financial Reporting Package

Page 16

Leasing Statistics

(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
Third Quarter 2013:
New		57		143,973		2.3		(2.7	%)		4.5	%
Renewal ⁽¹⁾		58		194,978		1.7		(0.3	%)		7.8	%

Total/Weighted Average		115		338,951		2.0		(1.1	%)		6.7	%

⁽¹⁾	Over 92% 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 (in thousands)		Total Pro Forma Ann. Base Rent (in thousands)		Pro Forma Occupancy %			Pro Forma Ann. Base Rent per SF
Los Angeles County		37,498	$	357	$	24,222		89.3	%	$	8.98
Orange County		15,189		150		4,065		95.6	%	$	8.30
San Bernardino County		18,794		150		4,347		88.5	%	$	8.45
Ventura County		1,755		16		3,068		97.7	%	$	7.65
San Diego County		25,115		222		7,199		86.1	%	$	9.03
Other		2,400		23		385		75.3	%	$	13.46

Total/Weighted Average		100,751	$	918	$	43,286		89.8	%	$	8.78

Lease Expiration Schedule:


Year of Lease Expiration	# of Leases Expiring		Total Rentable SF		Ann. Base Rent (in thousands)		% of Ann. Base Rent			Ann. Base Rent per SF
Available				656,466
MTM Tenants		41		86,457	$	851		2.0	%	$	9.85
2013		67		299,474		2,938		6.9	%	$	9.81
2014		274		1,512,586		12,566		29.4	%	$	8.31
2015		178		1,054,848		8,692		20.3	%	$	8.24
2016		91		718,008		6,461		15.1	%	$	9.00
2017		21		396,370		3,415		8.0	%	$	8.62
2018		19		257,798		2,519		5.9	%	$	9.77
2019		3		55,787		583		1.4	%	$	10.44
2020		4		154,526		2,592		6.1	%	$	16.77
2021		1		1,680		29		0.1	%	$	17.28
2022		1		107,861		440		1.0	%	$	4.08
Thereafter		3		187,635		1,708		4.0	%	$	9.10

Total Portfolio		703		5,489,496	$	42,794		100.0	%	$	8.85

Third Quarter 2013

Supplemental Financial Reporting Package

Page 17

Top Tenants and Lease Segmentation

(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		2.5	%	$	17.88		3/31/2020
Biosense	LA - San Gabriel Valley		76,000		2.3	%	$	12.73		10/31/2020
ITT Industries, Inc.	LA - San Gabriel Valley		67,838		2.2	%	$	13.83		9/30/2023
Dr. Bonners Magic Soaps	San Diego - North		118,597		1.7	%	$	6.24		11/30/2024
Towne Inc	OC - Airport		122,060		1.6	%	$	5.73		7/31/2014
Team Acquisition Corp	LA - San Fern. Valley		20,442		1.5	%	$	31.19		12/31/2016
L&L Printers Carlsbad	San Diego - North		61,620		1.3	%	$	9.12		2/28/2017
Royal Printex	LA - Central		78,928		1.3	%	$	6.85		1/31/2017
Sonic Electronix	LA - San Fern. Valley		71,268		1.2	%	$	7.50		8/31/2014
PureTek	LA - San Fern. Valley		76,993		1.2	%	$	6.84		11/30/2015

Top 10 Total / Wtd. Avg.			752,527		16.8	%	$	9.56

Lease Segmentation by Size:


Square Feet	Number of Leases		Leased SF		Ann. Base Rent (in thousands)		% of Total Ann. Base Rent			Ann. Base Rent per SF
<4,999		503		1,021,591	$	10,033		23.4	%	$	9.82
5,000 - 9,999		80		540,859		4,930		11.5	%	$	9.12
10,000 - 24,999		81		1,278,386		11,957		27.9	%	$	9.35
25,000 - 49,999		24		814,653		6,555		15.3	%	$	8.05
>50,000		15		1,177,541		9,318		21.8	%	$	7.91

Total / Wtd. Avg.		703		4,833,030	$	42,794		100.0	%	$	8.85

Third Quarter 2013

Supplemental Financial Reporting Package

Page 18

Occupancy and Leasing Trends

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

Occupancy by County:


	Sep. 30, 2013			Jun. 30, 2013			Mar. 31, 2013			Dec. 31, 2012			Sep. 30, 2012
Occupancy:
Los Angeles County		88.1	%		90.9	%		90.9	%		90.2	%		86.1	%
Orange County		92.6	%		88.1	%		93.4	%		83.5	%		90.2	%
San Bernardino County		85.7	%		82.3	%		83.0	%		84.5	%		83.8	%
Ventura County		97.3	%		97.3	%		99.6	%		95.0	%		95.4	%
San Diego County		83.4	%		83.4	%		63.4	%		64.0	%		62.5	%
Other		69.0	%		67.2	%		75.6	%		85.3	%		85.5	%

Total/Weighted Average		88.0	%		88.8	%		85.6	%		84.6	%		82.7	%

Portfolio pro-rata SF		5,489,496			5,290,266			4,642,278			4,913,694			4,706,898

Leasing Activity:

	Three Months Ended
	Sep. 30, 2013 ⁽²⁾			Jun. 30, 2013			Mar. 31, 2013			Dec. 31, 2012			Sep. 30, 2012
Leasing Activity (SF): ⁽¹⁾
New leases		143,973			265,394			283,507			201,942			316,567
Renewal		194,978			244,206			337,887			231,655			228,677

Gross leasing		338,951			509,600			621,394			433,597			545,244
Expiring leases		328,098			339,347			425,011			291,409			367,803

Net absorption		10,853			170,253			196,383			142,188			177,441
Retention rate		59	%		72	%		80	%		79	%		62	%

Weighted Average Renewal Leasing Spreads:

	Sep. 30, 2013			Jun. 30, 2013
Cash Rent Change		(1.1	%)		(2.8	%)
GAAP Rent Change		6.7	%		8.2	%

⁽¹⁾	Excludes month-to-month tenants.

⁽²⁾	Includes Predecessor and Rexford Industrial Realty, Inc. results.

Third Quarter 2013

Supplemental Financial Reporting Package

Page 19

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.	$	43,000			241,520	$	0.18
New Leases - 2nd Gen.	$	35,000			60,329	$	0.58
Renewals	$	6,000			14,117	$	0.43

Leasing Commissions:
New Leases - 1st Gen.	$	70,000			85,707	$	0.82
New Leases - 2nd Gen.	$	122,000			102,260	$	1.19
Renewals	$	2,000			69,952	$	0.03

Total Recurring Capex:
Recurring Capex	$	139,000			5,489,496	$	0.03
Recurring Capex % NOI		1.7	%
Nonrecurring Capex	$	415,000			5,489,496	$	0.08

Year-to-Date:

	Amount			SF		PSF
Tenant Improvements:
New Leases - 1st Gen.	$	195,000			318,787	$	0.61
New Leases - 2nd Gen.	$	128,000			138,952	$	0.92
Renewals	$	47,000			60,693	$	0.77

Leasing Commissions:
New Leases - 1st Gen.	$	568,000			304,127	$	1.87
New Leases - 2nd Gen.	$	276,000			261,424	$	1.06
Renewals	$	252,000			327,018	$	0.77

Total Recurring Capex:
Recurring Capex	$	534,000			5,159,556	$	0.10
Recurring Capex % NOI		2.4	%
Nonrecurring Capex	$	960,000			5,159,556	$	0.19

Third Quarter 2013

Supplemental Financial Reporting Package

Page 20

Properties Under Repositioning

(unaudited results, all figures pro rata except SF)

Acquisition and Investment Detail:

As of September 30, 2013


Property	Ownership %			Total SF presented on a wholly owned basis		Acquisition Date		Occupancy % at Sep. 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		71	%	$	2.3	$	3.0	$	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		45	%	$	5.0	$	5.0	$	7.6

Grand Total / Wtd. Avg.					591,627				62	%	$	13.3	$	15.5	$	11.1

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

Third Quarter 2013

Supplemental Financial Reporting Package

Page 21

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 Sep. 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	%		86	%
Nov-11	Jersey	10700 Jersey Blvd.	Inland Empire West		107,568	$	7.6		80	%		79	%
Dec-11	Shoemaker	14944, 14946 & 14948 Shoemaker Ave.	LA - Mid-counties		85,950	$	5.7		68	%		97	%
Dec-11	Arrow	15705, 15709 Arrow Highway & 5220 Forth St.	LA - San Gabriel		69,592	$	5.5		91	%		94	%
Dec-11	Normandie	20920-20950 Normandie Ave.	LA - South Bay		49,466	$	4.4		73	%		96	%
Dec-11	Paramount	6423-6431 & 6407-6119 Alondra Blvd.	LA - South Bay		30,224	$	2.6		100	%		100	%
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	%		69	%
Jun-12	Mission Oaks	3001, 3175 & 3233 Mission Oaks Blvd.	Ventura County		1,188,407	$	59.1		73	%		88	%
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	%		85	%
May-13	240th Street	1661 240th St.	LA - South Bay		100,851	$	5.0		39	%		45	%
Jul-13	Orion	8101-8117 Orion Ave.	LA - San Fern. Valley		48,388	$	5.6		90	%		90	%
Aug-13	Tarzana	18310-18330 Oxnard St.	LA - San Fern. Valley		75,288	$	8.4		81	%		81	%
Nov-13	Yorba Linda Business Park	22343-22349 La Palma Ave.	OC - North		115,760	$	12.7		79	%		N/A
Nov-13	The Park	1100-1170 Gilbert St., 2353-2373 La Palma Ave.	OC - North		120,313	$	10.6		85	%		N/A

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

Apr-13

Williams

1950 East Williams Drive

Ventura County

161,682

8.5

Marketed sale

May-13

Glenoaks

9027 Glenoaks Blvd.

LA - San Fern. Valley

14,700

1.7

User 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

Third Quarter 2013

Supplemental Financial Reporting Package

Page 22

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 and Adjusted 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. Adjusted EBITDA includes add backs of loss on extinguishment of debt and non-recurring legal fees.

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.

Third Quarter 2013

Supplemental Financial Reporting Package

Page 23

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.

Third Quarter 2013

Supplemental Financial Reporting Package

Page 24

Form: 8-K

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