EX-99.1
Published on March 13, 2014
Exhibit 99.1
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 | |||
| 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 - 9 | |||
| Statement of Operations Reconciliations |
10 - 11 | |||
| Same Property Portfolio Performance |
12 - 13 | |||
| Joint Venture Financial Summary |
14 - 15 | |||
| Capitalization Summary |
16 | |||
| Debt Summary |
17 | |||
| Portfolio Data: |
||||
| Portfolio Overview |
18 | |||
| Occupancy and Leasing Trends |
19 | |||
| Leasing Statistics |
20 | |||
| Top Tenants and Lease Segmentation |
21 | |||
| Capital Expenditure Summary |
22 | |||
| Properties Under Repositioning |
23 | |||
| Acquisitions and Dispositions Summary |
24 | |||
| Definitions / Discussion of Non-GAAP Financial Measures |
25 | |||
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.
| Fourth 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 | |
| Peter Schwab |
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.
| Fourth 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)
| Three Months Ended December 31, 2013 |
Period From July 24, 2013 to Sep. 30, 2013 (2) |
|||||||
| Financial Results: |
||||||||
| Total rental revenues |
$ | 12,448 | $ | 8,789 | ||||
| Straight line rent |
515 | 290 | ||||||
| Fair value lease expense |
76 | 122 | ||||||
| Net (loss) income attributable to common stockholders |
(881 | ) | 256 | |||||
| Net (loss) income per common share - basic and diluted |
$ | (0.04 | ) | $ | 0.01 | |||
| Company share of FFO |
4,308 | 3,001 | ||||||
| FFO per common share - basic and diluted |
0.17 | 0.12 | ||||||
| EBITDA |
5,951 | 4,178 | ||||||
| Adjusted EBITDA |
6,489 | 4,605 | ||||||
| Dividend declared per common share |
$ | 0.12 | $ | 0.09 | ||||
| Portfolio Statistics: |
||||||||
| Portfolio SF - consolidated |
6,321,894 | 5,489,496 | ||||||
| Ending occupancy - consolidated portfolio |
89.7 | % | 88.0 | % | ||||
| Pro-forma occupancy including uncommenced leases |
91.7 | % | 89.8 | % | ||||
| Leasing spreads - cash |
3.5 | % | -1.1 | % | ||||
| Leasing spreads - GAAP |
12.9 | % | 6.7 | % | ||||
| Same Property Performance: (3) |
||||||||
| Total rental revenue growth |
9.7 | % | 17.0 | % | ||||
| Total property expense growth |
16.7 | % | 12.0 | % | ||||
| NOI growth |
7.1 | % | 19.0 | % | ||||
| Cash NOI growth |
14.5 | % | 15.0 | % | ||||
| Ending occupancy |
89.3 | % | 87.3 | % | ||||
| Occupancy growth (ppt) |
3.0 | % | 5.6 | % | ||||
| Capitalization: |
||||||||
| Common stock price at quarter end |
$ | 13.20 | $ | 13.51 | ||||
| Common shares issued and outstanding |
25,419,418 | 24,757,841 | ||||||
| Total shares and units issued and outstanding at period end (4) |
28,428,677 | 28,454,927 | ||||||
| Weighted average shares outstanding - basic and diluted |
25,191,570 | 24,574,432 | ||||||
| Total equity market capitalization |
$ | 375,259 | $ | 384,426 | ||||
| Total Consolidated Debt |
192,559 | 122,795 | ||||||
| Total debt (pro-rata) (5) |
198,784 | 129,020 | ||||||
| Total combined market capitalization |
574,043 | 513,446 | ||||||
| Ratios: |
||||||||
| Total debt (pro-rata) to total combined market capitalization |
34.6 | % | 25.1 | % | ||||
| Total consolidated debt to adjusted EBITDA (quarterly results annualized) |
7.7x | 5.3x | ||||||
| (1) | For a definition and discussion of non-GAAP financial measures, see the definitions section beginning on page 25 of this report. |
| (2) | The financials reflect operations since the completion of our initial public offering on July 24, 2013. |
| (3) | Comparison of the three months ended December 31, 2013 to the three months ended December 31, 2012. |
| (4) | Includes 3,009,259 OP units and excludes 140,468 unvested shares of restricted stock as of December 31, 2013. Includes 3,697,086 OP units and excludes 920,734 unvested shares of restricted stock as of September 30, 2013. |
| (5) | Includes our 15% share of debt in our Mission Oaks joint venture. |
| Fourth Quarter 2013 Supplemental Financial Reporting Package |
|
Page 4 |
Consolidated and Combined Balance Sheet
(in thousands)
|
Rexford Industrial Realty, Inc. |
Rexford Industrial Realty, Inc. Predecessor | |||||||||||||||||||
| 12/31/13 | 9/30/13 (1) | 6/30/13 (1) | 3/31/13 (1) | 12/31/12 (1) | ||||||||||||||||
| (unaudited) | (unaudited) | (unaudited) | (unaudited) | |||||||||||||||||
| Assets |
||||||||||||||||||||
| Investments in real estate, net |
$ | 487,842 | $ | 432,024 | $ | 378,911 | $ | 312,066 | $ | 313,608 | ||||||||||
| Cash and cash equivalents |
8,997 | 4,399 | 24,951 | 47,446 | 43,499 | |||||||||||||||
| Restricted cash |
325 | 298 | 2,026 | 2,086 | 1,882 | |||||||||||||||
| Notes receivable |
13,139 | 13,153 | 7,876 | 7,903 | 11,911 | |||||||||||||||
| Rents and other receivables, net |
929 | 869 | 685 | 446 | 559 | |||||||||||||||
| Deferred rent receivable |
3,642 | 3,428 | 3,862 | 3,910 | 3,727 | |||||||||||||||
| Deferred leasing costs and in-place lease intangibles, net |
14,189 | 11,199 | 7,394 | 4,510 | 5,003 | |||||||||||||||
| Deferred loan costs, net |
1,597 | 1,609 | 1,483 | 1,147 | 1,382 | |||||||||||||||
| Acquired above-market leases, net |
1,597 | 1,888 | 1,614 | 127 | 179 | |||||||||||||||
| Indefinite-lived intangible |
5,271 | | | | | |||||||||||||||
| Other assets |
2,334 | 2,317 | 4,550 | 3,840 | 1,868 | |||||||||||||||
| Acquisition related deposits |
1,510 | 1,435 | 210 | 2,483 | 260 | |||||||||||||||
| Investment in unconsolidated real estate entities |
5,687 | 8,982 | 11,486 | 12,362 | 12,697 | |||||||||||||||
| Assets associated with real estate held for sale |
7,616 | 7,461 | 7,343 | 22,065 | 23,921 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Total Assets |
$ | 554,675 | $ | 489,062 | $ | 452,391 | $ | 420,391 | $ | 420,496 | ||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Liabilities |
||||||||||||||||||||
| Notes payable |
$ | 192,491 | $ | 122,857 | $ | 343,663 | $ | 299,580 | $ | 295,419 | ||||||||||
| Accounts payable, accrued expenses and other liabilities |
6,024 | 4,586 | 2,328 | 3,013 | 2,575 | |||||||||||||||
| Due to members |
| | | | 1,221 | |||||||||||||||
| Interest rate contracts |
| | | | 49 | |||||||||||||||
| Dividends payable |
5,368 | | | | | |||||||||||||||
| Acquired lease intangible liabilities, net (2) |
1,160 | 535 | 65 | 32 | 39 | |||||||||||||||
| Tenant security deposits |
6,155 | 4,840 | 4,521 | 4,075 | 3,738 | |||||||||||||||
| Prepaid rents |
1,448 | 447 | 542 | 322 | 335 | |||||||||||||||
| Liabilities associated with real estate held for sale |
260 | 195 | 7,877 | 18,462 | 20,872 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Total Liabilities |
212,906 | 133,460 | 358,996 | 325,484 | 324,248 | |||||||||||||||
|
|
|
|
|
|
|
|
|
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|
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| Equity |
||||||||||||||||||||
| Rexford Industrial Realty Inc. common stock |
$ | 255 | $ | 257 | $ | | $ | | $ | | ||||||||||
| Rexford Industrial Realty Inc. additional paid-in capital |
311,936 | 308,937 | | | | |||||||||||||||
| Rexford Industrial Realty Inc. (accumulated deficit) retained earnings |
(5,993 | ) | 256 | | | | ||||||||||||||
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|
|||||||||||
| Total Rexford Industrial Realty Inc. stockholders equity |
306,198 | 309,450 | | | | |||||||||||||||
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|
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|
|||||||||||
| Predecessor equity |
| | 11,968 | 11,968 | 11,962 | |||||||||||||||
| Predecessor accumulated deficit and distributions |
| | (27,592 | ) | (25,271 | ) | (24,653 | ) | ||||||||||||
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|
|
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|||||||||||
| Total Rexford Industrial Realty, Inc./Predecessor Equity |
306,198 | 309,450 | (15,624 | ) | (13,303 | ) | (12,691 | ) | ||||||||||||
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|
|||||||||||
| Noncontrolling interests |
35,571 | 46,152 | 109,019 | 108,210 | 108,939 | |||||||||||||||
|
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|
|
|
|
|
|
|
|
|
|||||||||||
| Total Equity |
341,769 | 355,602 | 93,395 | 94,907 | 96,248 | |||||||||||||||
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|
|
|
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|||||||||||
| Total Liabilities and Equity |
$ | 554,675 | $ | 489,062 | $ | 452,391 | $ | 420,391 | $ | 420,496 | ||||||||||
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| (1) | For comparability, certain prior period amounts have been reclassified to conform to current period presentation of properties held for sale. |
| (2) | The balance at December 31, 2013 includes net below market lease of $883,000 and net above market ground lease of $277,000. All other periods include only net below market leases. |
| Fourth Quarter 2013 Supplemental Financial Reporting Package |
|
Page 5 |
Consolidated and Combined Statement of Operations
Quarterly Results
(unaudited and in thousands, except share count and per share figures)
| Rexford Industrial Realty, Inc. (1) |
Rexford Industrial Realty, Inc. Predecessor |
|||||||||||||||||||
| Quarter ended December 31, 2013 |
Period from July 24, 2013 to Sep. 30, 2013 |
Period from July 1, 2013 to July 23, 2013 |
Quarter ended June 30, 2013 |
Quarter ended March 31, 2013 |
||||||||||||||||
| Rental Revenues |
||||||||||||||||||||
| Rental revenues |
$ | 10,809 | $ | 7,640 | $ | 2,384 | $ | 9,062 | $ | 7,760 | ||||||||||
| Tenant reimbursements |
1,333 | 828 | 254 | 1,112 | 847 | |||||||||||||||
| Management, leasing, and development services |
253 | 281 | 13 | 170 | 261 | |||||||||||||||
| Other income |
53 | 40 | 20 | 49 | 118 | |||||||||||||||
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|
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| Total rental revenues |
12,448 | 8,789 | 2,671 | 10,393 | 8,986 | |||||||||||||||
| Interest income |
190 | 191 | 63 | 324 | 311 | |||||||||||||||
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|
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|
|
|
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|
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| Total Revenues |
12,638 | 8,980 | 2,734 | 10,717 | 9,297 | |||||||||||||||
| Operating Expenses |
||||||||||||||||||||
| Property expenses |
$ | 3,211 | $ | 2,026 | $ | 565 | $ | 2,397 | $ | 2,074 | ||||||||||
| General and administrative |
2,827 | 2,500 | 1,885 | 1,396 | 1,139 | |||||||||||||||
| Depreciation and amortization |
5,661 | 3,025 | 888 | 3,514 | 2,620 | |||||||||||||||
| Other property expenses |
666 | 501 | 124 | 438 | 326 | |||||||||||||||
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| Total Operating Expenses |
12,365 | 8,052 | 3,462 | 7,745 | 6,159 | |||||||||||||||
| Other (Income) Expense |
||||||||||||||||||||
| Acquisition expenses |
$ | 421 | $ | 119 | $ | 7 | $ | 624 | $ | 93 | ||||||||||
| Interest expense |
1,046 | 717 | 1,233 | 4,386 | 3,776 | |||||||||||||||
| Gain on mark-to-market of interest rate swaps |
| | | | (49 | ) | ||||||||||||||
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| Total Other Expense |
1,467 | 836 | 1,240 | 5,010 | 3,820 | |||||||||||||||
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| Total Expenses |
13,832 | 8,888 | 4,702 | 12,755 | 9,979 | |||||||||||||||
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| Equity in income (loss) from unconsolidated real estate entities |
$ | 9 | $ | 83 | $ | 9 | $ | (712 | ) | $ | (212 | ) | ||||||||
| Gain from early repayment of note receivable |
| | | | 1,365 | |||||||||||||||
| Loss on extinguishment of debt |
| | (3,919 | ) | | (37 | ) | |||||||||||||
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| Net Income (Loss) from Continuing Operations |
$ | (1,185 | ) | $ | 175 | $ | (5,878 | ) | $ | (2,750 | ) | $ | 434 | |||||||
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| Discontinued Operations |
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| Income (loss) from discontinued operationsbefore gains on sale of real estate |
$ | 179 | $ | 120 | $ | 27 | $ | (257 | ) | $ | (581 | ) | ||||||||
| Loss on extinguishment of debt |
| | (17 | ) | (41 | ) | (209 | ) | ||||||||||||
| Gain on sale of real estate |
| | | 2,580 | 2,409 | |||||||||||||||
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| Income from Discontinued Operations |
$ | 179 | $ | 120 | $ | 10 | $ | 2,282 | $ | 1,619 | ||||||||||
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| Net Income (Loss) |
$ | (1,006 | ) | $ | 295 | $ | (5,868 | ) | $ | (468 | ) | $ | 2,053 | |||||||
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| Net (income) loss attributable to noncontrolling interests |
$ | 125 | $ | (39 | ) | $ | 3,559 | $ | (1,818 | ) | $ | (1,726 | ) | |||||||
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| Net Income (Loss) Attributable to Common Stockholders/Predecessor |
$ | (881 | ) | $ | 256 | $ | (2,309 | ) | $ | (2,286 | ) | $ | 327 | |||||||
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| Earnings per Common Share - Basic and Diluted |
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| Net income (loss) available to common stockholders |
$ | (0.04 | ) | $ | 0.01 | |||||||||||||||
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| Weighted average shares outstanding - basic and diluted |
25,191,570 | 24,574,432 | ||||||||||||||||||
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| (1) | The financials reflect operations since the completion of our initial public offering on July 24, 2013. |
| Fourth Quarter 2013 Supplemental Financial Reporting Package |
|
Page 6 |
Consolidated and Combined Statement of Operations
Quarterly and Year-to-Date Results
(in thousands)
| Rexford Industrial Realty, Inc. |
Rexford Industrial Realty, Inc. Predecessor |
Rexford Industrial Realty, Inc. and Predecessor (1) |
Rexford Industrial Realty, Inc. Predecessor |
|||||||||||||
| Quarter ended December 31, | Year ended December31, | |||||||||||||||
| 2013 | 2012 | 2013 | 2012 | |||||||||||||
| (unaudited) | (unaudited) | (unaudited) | (unaudited) | |||||||||||||
| Rental Revenues |
||||||||||||||||
| Rental revenues |
$ | 10,809 | $ | 7,315 | $ | 37,655 | $ | 27,842 | ||||||||
| Tenant reimbursements |
1,333 | 768 | 4,373 | 2,952 | ||||||||||||
| Management, leasing, and development services |
253 | 174 | 978 | 518 | ||||||||||||
| Other income |
53 | 27 | 280 | 105 | ||||||||||||
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| Total rental revenues |
12,448 | 8,284 | 43,286 | 31,417 | ||||||||||||
| Interest income |
190 | 395 | 1,079 | 1,577 | ||||||||||||
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| Total Revenues |
12,638 | 8,679 | 44,365 | 32,994 | ||||||||||||
| Operating Expenses |
||||||||||||||||
| Property expenses |
3,211 | 1,837 | 10,276 | 7,950 | ||||||||||||
| General and administrative |
2,827 | 1,279 | 9,747 | 5,146 | ||||||||||||
| Depreciation and amortization |
5,661 | 2,777 | 15,708 | 11,921 | ||||||||||||
| Other property expenses |
666 | 357 | 2,052 | 1,300 | ||||||||||||
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| Total Operating Expenses |
12,365 | 6,250 | 37,783 | 26,317 | ||||||||||||
| Other (Income) Expense |
||||||||||||||||
| Acquisition expenses |
421 | 354 | 1,264 | 599 | ||||||||||||
| Interest expense |
1,046 | 4,221 | 11,158 | 16,875 | ||||||||||||
| Gain on mark-to-market of interest rate swaps |
| (526 | ) | (49 | ) | (2,361 | ) | |||||||||
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| Total Other Expense |
1,467 | 4,049 | 12,373 | 15,113 | ||||||||||||
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| Total Expenses |
13,832 | 10,299 | 50,156 | 41,430 | ||||||||||||
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| Equity in income (loss) from unconsolidated real estate entities |
9 | 56 | (823 | ) | 122 | |||||||||||
| Gain from early repayment of note receivable |
| | 1,365 | | ||||||||||||
| Loss on extinguishment of debt |
| | (3,955 | ) | | |||||||||||
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|||||||||
| Net Loss from Continuing Operations |
(1,185 | ) | (1,564 | ) | (9,204 | ) | (8,314 | ) | ||||||||
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| Discontinued Operations |
||||||||||||||||
| Loss from discontinued operations before gains on sale of real estate |
179 | (173 | ) | (510 | ) | (698 | ) | |||||||||
| Loss on extinguishment of debt |
| | (267 | ) | | |||||||||||
| Gain on sale of real estate |
| 55 | 4,989 | 55 | ||||||||||||
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| Income (Loss) from Discontinued Operations |
179 | (118 | ) | 4,212 | (643 | ) | ||||||||||
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| Net Loss |
(1,006 | ) | (1,682 | ) | (4,992 | ) | (8,957 | ) | ||||||||
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| Net loss attributable to noncontrolling interests |
125 | 154 | 101 | 4,066 | ||||||||||||
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|||||||||
| Net Loss Attributable to Common Stockholders/Predecessor |
$ | (881 | ) | $ | (1,528 | ) | $ | (4,891 | ) | $ | (4,891 | ) | ||||
|
|
|
|
|
|
|
|
|
|||||||||
| (1) | Reflects the results of operations for our Predecessor for the period from January 1, 2013 to July 23, 2013 and Rexford Industrial Realty, Inc. for the period from July 24, 2013 through December 31, 2013. |
| Fourth Quarter 2013 Supplemental Financial Reporting Package |
|
Page 7 |
Non-GAAP FFO (1)
(in thousands)
(unaudited results)
|
Rexford Industrial Realty, Inc. (2) |
Rexford Industrial Realty, Inc. Predecessor |
|||||||||||||||||||
| Three Months Ended | ||||||||||||||||||||
| Three Months Ended December 31, 2013 |
July 24, 2013 to Sep. 30, 2013 |
July 1, 2013 to July 23, 2013 |
June 30, 2013 |
March 31, 2013 |
||||||||||||||||
| Funds From Operations (FFO) |
||||||||||||||||||||
| Net income (loss) |
$ | (881 | ) | $ | 256 | $ | (5,868 | ) | $ | (468 | ) | $ | 2,053 | |||||||
| Add: |
||||||||||||||||||||
| Depreciation and amortization, including amounts in discontinued operations |
5,716 | 3,062 | 901 | 3,611 | 3,285 | |||||||||||||||
| Depreciation and amortization from unconsolidated joint ventures and tenants in common |
153 | 96 | 107 | 144 | 470 | |||||||||||||||
| Impairment write-downs 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 |
(125 | ) | 39 | | | | ||||||||||||||
| Deduct: |
||||||||||||||||||||
| Gains on sale of real estate |
| | | 2,580 | 2,409 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| FFO available to common shareholders and unitholders |
$ | 4,863 | $ | 3,453 | $ | (925 | ) | $ | 1,585 | $ | 3,645 | |||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Company share of FFO (3) |
$ | 4,308 | $ | 3,001 | ||||||||||||||||
|
|
|
|
|
|||||||||||||||||
| FFO per share - basic and diluted |
$ | 0.17 | $ | 0.12 | ||||||||||||||||
|
|
|
|
|
|||||||||||||||||
| FFO available to common shareholders and unitholders |
$ | 4,863 | $ | 3,453 | ||||||||||||||||
| Add: Non-recurring legal fees (4) |
225 | 235 | ||||||||||||||||||
|
|
|
|
|
|||||||||||||||||
| FFO available to common shareholders and unitholders before non-recurring legal fees |
$ | 5,088 | $ | 3,688 | ||||||||||||||||
|
|
|
|
|
|||||||||||||||||
| Company share of FFO before non-recurring legal fees (3) |
$ | 4,507 | $ | 3,267 | ||||||||||||||||
|
|
|
|
|
|||||||||||||||||
| FFO per share before non-recurring legal fees - basic and diluted |
$ | 0.18 | $ | 0.13 | ||||||||||||||||
|
|
|
|
|
|||||||||||||||||
| Weighted-average shares outstanding - basic and diluted |
25,191,570 | 24,574,432 | ||||||||||||||||||
| Weighted-average diluted shares and units |
28,436,531 | 28,271,518 | ||||||||||||||||||
| (1) | For a definition and discussion of non-GAAP financial measures, see the definitions section beginning on page 25 of this report. |
| (2) | The financials reflect operations since the completion of our initial public offering on July 24, 2013. |
| (3) | Based on weighted average interest in our operating partnership of 11.41% for the period from October 1, 2013 to December 31, 2013. |
| (4) | Non-recurring legal fees relate to Accommodation and Litigation. |
| Fourth Quarter 2013 Supplemental Financial Reporting Package |
|
Page 8 |
Non-GAAP AFFO (1)
(in thousands)
(unaudited results)
| Rexford Industrial Realty, Inc. (2) | Rexford Industrial Realty, Inc. Predecessor | |||||||||||||||||||
|
Three Months Ended December 31, 2013 |
July 24, 2013 to Sep. 30, 2013 |
July 1, 2013 to July 23, 2013 |
Three Months Ended June 30, 2013 |
Three Months Ended March 31, 2013 |
||||||||||||||||
| Adjusted Funds From Operations (AFFO) |
||||||||||||||||||||
| FFO available to common shareholders and unitholders |
$ | 4,863 | $ | 3,453 | $ | (925 | ) | $ | 1,585 | $ | 3,645 | |||||||||
| Add: |
||||||||||||||||||||
| Amortization of deferred financing costs |
124 | 93 | 127 | 406 | 251 | |||||||||||||||
| Fair value lease expense |
76 | 122 | 44 | 155 | 55 | |||||||||||||||
| Acquisition costs |
421 | 119 | 7 | 624 | 93 | |||||||||||||||
| Non-cash stock compensation |
(59 | ) | 326 | 900 | 20 | 66 | ||||||||||||||
| Deduct: |
||||||||||||||||||||
| Straight line rent adjustment |
515 | 290 | 41 | 44 | 196 | |||||||||||||||
| Gain on mark-to-market interest rate swaps |
| | | | 49 | |||||||||||||||
| Capitalized payments (3) |
246 | 67 | 23 | 79 | 84 | |||||||||||||||
| Note Receivable discount amortization |
50 | 25 | 8 | 32 | 62 | |||||||||||||||
| Note Payable premium amortization |
11 | 9 | 3 | 12 | 12 | |||||||||||||||
| Recurring capital expenditures (4) |
335 | 139 | | 385 | 72 | |||||||||||||||
| 2nd generation tenant improvements and leasing commissions (5) |
390 | 166 | (1 | ) | 368 | 171 | ||||||||||||||
| Unconsolidated joint venture AFFO adjustments |
(21 | ) | (7 | ) | (10 | ) | (18 | ) | (8 | ) | ||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| AFFO |
$ | 3,899 | $ | 3,424 | $ | 89 | $ | 1,888 | $ | 3,472 | ||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| (1) | For a definition and discussion of non-GAAP financial measures, see the definitions section beginning on page 25 of this report. |
| (2) | The financials reflect operations since the completion of our initial public offering on July 24, 2013. |
| (3) | Includes capitalized leasing and construction development payroll. |
| (4) | Excludes nonrecurring capital expenditures of $748,000, $414,000, $1,000, $200,000, and $345,000 for the three months ended December 31, 2013, 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. |
| (5) | Excludes 1st generation tenant improvements and leasing commissions of $370,000, $86,000, $27,000, $599,000, and $51,000 for the three months ended December 31, 2013, 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. |
| Fourth Quarter 2013 Supplemental Financial Reporting Package |
|
Page 9 |
Statement of Operations Reconciliations (1)
(in thousands)
(unaudited results)
| Rexford Industrial Realty, Inc. | Rexford Industrial Realty, Inc. Predecessor | |||||||||||||||||||
|
Three Months Ended December 31, 2013 |
July 24, 2013 to Sep. 30, 2013 |
July 1, 2013 to July 23, 2013 |
Three Months Ended | |||||||||||||||||
|
June 30, 2013 |
March 31, 2013 |
|||||||||||||||||||
| Net Operating Income (NOI) |
||||||||||||||||||||
| Rental revenues |
$ | 10,809 | $ | 7,640 | $ | 2,384 | $ | 9,062 | $ | 7,760 | ||||||||||
| Tenant reimbursements |
1,333 | 828 | 254 | 1,112 | 847 | |||||||||||||||
| Other income |
53 | 40 | 20 | 49 | 118 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Total operating revenues |
12,195 | 8,508 | 2,658 | 10,223 | 8,725 | |||||||||||||||
| Property expenses |
3,211 | 2,026 | 565 | 2,397 | 2,074 | |||||||||||||||
| Other property expenses |
666 | 501 | 124 | 438 | 326 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Total operating expenses |
3,877 | 2,527 | 689 | 2,835 | 2,400 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| NOI |
$ | 8,318 | $ | 5,981 | $ | 1,969 | $ | 7,388 | $ | 6,325 | ||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Fair value lease revenue |
76 | 122 | 44 | 155 | 55 | |||||||||||||||
| Straight line rent adjustment |
(515 | ) | (290 | ) | (41 | ) | (44 | ) | (196 | ) | ||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Cash NOI |
$ | 7,879 | $ | 5,813 | $ | 1,972 | $ | 7,499 | $ | 6,184 | ||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Net Income (Loss) |
$ | (1,006 | ) | $ | 295 | $ | (5,868 | ) | $ | (468 | ) | $ | 2,053 | |||||||
| Add: |
||||||||||||||||||||
| General and administrative |
2,827 | 2,500 | 1,885 | 1,396 | 1,139 | |||||||||||||||
| Depreciation and amortization |
5,661 | 3,025 | 888 | 3,514 | 2,620 | |||||||||||||||
| Acquisition expenses |
421 | 119 | 7 | 624 | 93 | |||||||||||||||
| Interest expense |
1,046 | 717 | 1,233 | 4,386 | 3,776 | |||||||||||||||
| Gain on mark-to-market of interest rate swaps |
| | | | (49 | ) | ||||||||||||||
| Subtract: |
||||||||||||||||||||
| Management, leasing, and development services |
253 | 281 | 13 | 170 | 261 | |||||||||||||||
| Interest income |
190 | 191 | 63 | 324 | 311 | |||||||||||||||
| Equity in income (loss) from unconsolidated real estate entities |
9 | 83 | 9 | (712 | ) | (212 | ) | |||||||||||||
| Gain from early repayment of note receivable |
| | | | 1,365 | |||||||||||||||
| Loss on extinguishment of debt |
| | (3,919 | ) | | (37 | ) | |||||||||||||
| Income from discontinued operations |
179 | 120 | 10 | 2,282 | 1,619 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| NOI |
$ | 8,318 | $ | 5,981 | $ | 1,969 | $ | 7,388 | $ | 6,325 | ||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Fair value lease revenue |
76 | 122 | 44 | 155 | 55 | |||||||||||||||
| Straight line rent adjustment |
(515 | ) | (290 | ) | (41 | ) | (44 | ) | (196 | ) | ||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Cash NOI |
$ | 7,879 | $ | 5,813 | $ | 1,972 | $ | 7,499 | $ | 6,184 | ||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| (1) | For a definition and discussion of non-GAAP financial measures, see the definitions section beginning on page 25 of this report. |
| Fourth Quarter 2013 Supplemental Financial Reporting Package |
|
Page 10 |
Statement of Operations Reconciliations (1)
(in thousands)
(unaudited results)
| Rexford Industrial Realty, Inc. | ||||||||
| Three Months Ended | July 24, 2013 to September 30, 2013 |
|||||||
| December 31, 2013 | ||||||||
| Net income (loss) |
$ | (1,006 | ) | $ | 295 | |||
| Interest expense |
1,046 | 717 | ||||||
| Proportionate share of interest expense from unconsolidated joint ventures |
42 | 32 | ||||||
| Depreciation and amortization |
5,661 | 3,025 | ||||||
| Depreciation and amortization included in discontinued operations |
55 | 37 | ||||||
| Proportionate share of real estate related depreciation and amortization from unconsolidated joint ventures |
153 | 72 | ||||||
|
|
|
|
|
|||||
| EBITDA |
$ | 5,951 | $ | 4,178 | ||||
|
|
|
|
|
|||||
| Stock-based compensation amortization |
(59 | ) | 326 | |||||
| Loss on extinguishment of debt |
| | ||||||
| Non-recurring legal fees (2) |
225 | 235 | ||||||
| Pro forma effect of acquisitions (3) |
606 | 23 | ||||||
| Pro forma effect of assets sold subsequent to December 31, 2013 (4) |
(234 | ) | (157 | ) | ||||
|
|
|
|
|
|||||
| Adjusted EBITDA |
$ | 6,489 | $ | 4,605 | ||||
|
|
|
|
|
|||||
| (1) | For a definition and discussion of non-GAAP financial measures, see the definitions section beginning on page 25 of this report. |
| (2) | Non-recurring legal fees relate to Accommodation and Litigation. |
| (3) | Represents the estimated impact of Q413 acquisitions as if they had been acquired on October 1, 2013, and Q313 acquisitions as if they had been acquired on July 24, 2013. We have made a number of assumptions in calculating such estimates and there can be no assurance that we would have generated the projected levels of EBITDA had we owned the acquired entities as of October 1, 2013. |
| (4) | Represents the estimated impact of Kaiser, which was sold on January 29, 2014, as if it had been disposed of as of the beginning of the period presented. |
| Fourth Quarter 2013 Supplemental Financial Reporting Package |
|
Page 11 |
Same Property Portfolio Performance (1)
Statement of Operations and NOI Reconciliation
(in thousands)
(unaudited results)
Same Property Portfolio Statement of Operations:
| Three Months Ended December 31, | The Year Ended December 31, | |||||||||||||||||||||||||||||||
| 2013 | 2012 | $ Change | % Change | 2013 (2) | 2012 | $ Change | % Change | |||||||||||||||||||||||||
| Rental Revenues |
||||||||||||||||||||||||||||||||
| Rental revenues |
$ | 7,901 | $ | 7,263 | $ | 638 | 8.8 | % | $ | 29,896 | $ | 27,268 | $ | 2,628 | 9.6 | % | ||||||||||||||||
| Tenant reimbursements |
881 | 771 | 110 | 14.3 | % | 3,275 | 2,843 | 432 | 15.2 | % | ||||||||||||||||||||||
| Other operating revenues |
33 | 3 | 30 | 1000.0 | % | 231 | 79 | 152 | 192.4 | % | ||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
| Total rental revenues |
8,815 | 8,037 | 778 | 9.7 | % | 33,402 | 30,190 | 3,212 | 10.6 | % | ||||||||||||||||||||||
| Interest income |
190 | 252 | (62 | ) | (24.6 | %) | 1,016 | 1,004 | 12 | 1.2 | % | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
| Total Revenues |
9,005 | 8,289 | 716 | 8.6 | % | 34,418 | 31,194 | 3,224 | 10.3 | % | ||||||||||||||||||||||
| Operating Expenses |
||||||||||||||||||||||||||||||||
| Property expenses |
$ | 2,532 | $ | 2,170 | $ | 362 | 16.7 | % | $ | 9,283 | $ | 8,777 | $ | 506 | 5.8 | % | ||||||||||||||||
| Depreciation and amortization |
3,695 | 2,967 | 728 | 24.5 | % | 11,313 | 12,129 | (816 | ) | (6.7 | %) | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
| Total Operating Expenses |
6,227 | 5,137 | 1,090 | 21.2 | % | 20,596 | 20,906 | (310 | ) | (1.5 | %) | |||||||||||||||||||||
| Other (Income) Expense |
||||||||||||||||||||||||||||||||
| Interest expense (3) |
60 | 4,299 | (4,239 | ) | (98.6 | %) | 9,075 | 17,339 | (8,264 | ) | (47.7 | %) | ||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||
| Total Other Expense |
60 | 4,299 | (4,239 | ) | (98.6 | %) | 9,075 | 17,339 | (8,264 | ) | (47.7 | %) | ||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
| Total Expenses |
6,287 | 9,436 | (3,149 | ) | (33.4 | %) | 29,671 | 38,245 | (8,574 | ) | (22.4 | %) | ||||||||||||||||||||
| Loss on extinguishment of debt |
| | | (3,382 | ) | | (3,382 | ) | ||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
| Net Income (Loss) |
$ | 2,718 | $ | (1,147 | ) | $ | 3,865 | 337.0 | % | $ | 1,365 | $ | (7,051 | ) | $ | 8,416 | 119.4 | % | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
| Same Property Portfolio NOI Reconciliation: | ||||||||||||||||||||||||||||||||
| Three Months Ended December 31, | The Year Ended December 31, | |||||||||||||||||||||||||||||||
| 2013 (2) | 2012 | $ Change | % Change | 2013 (2) | 2012 | $ Change | % Change | |||||||||||||||||||||||||
| NOI |
||||||||||||||||||||||||||||||||
| Net Income (Loss) |
$ | 2,718 | $ | (1,147 | ) | 1,365 | $ | (7,051 | ) | |||||||||||||||||||||||
| Add: |
||||||||||||||||||||||||||||||||
| Interest expense (3) |
60 | 4,299 | 9,075 | 17,339 | ||||||||||||||||||||||||||||
| Depreciation and amortization |
3,695 | 2,967 | 11,313 | 12,129 | ||||||||||||||||||||||||||||
| Deduct: |
||||||||||||||||||||||||||||||||
| Loss on extinguishment of debt |
| | (3,382 | ) | | |||||||||||||||||||||||||||
| Interest income |
190 | 252 | 1,016 | 1,004 | ||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
| NOI |
$ | 6,283 | $ | 5,867 | $ | 416 | 7.1 | % | $ | 24,119 | $ | 21,413 | $ | 2,706 | 12.6 | % | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
| Straight-line rents |
(209 | ) | (579 | ) | (158 | ) | (802 | ) | ||||||||||||||||||||||||
| Amort. above/below market leases |
24 | 36 | 77 | 142 | ||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
| Cash NOI |
$ | 6,098 | $ | 5,324 | $ | 774 | 14.5 | % | $ | 24,038 | $ | 20,753 | $ | 3,285 | 15.8 | % | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
| (1) | For a definition and discussion of non-GAAP financial measures, see the definitions section beginning on page 25 of this report. |
| (2) | Reflects the results of operations for our Predecessor for the period from January 1, 2013 to July 23, 2013 and Rexford Industrial Realty, Inc. for the period from July 24, 2013 through December 31, 2013. |
| (3) | Interest expense for the three months ended December 31, 2013 only reflects interest for the loan secured by our property located at 107700 Jersey Blvd. Interest on our post-IPO $60mm term loan, which is secured by multiple properties, is being treated as debt of the operating partnership and accordingly the interest is not being pushed down to the property. |
| Fourth Quarter 2013 Supplemental Financial Reporting Package |
|
Page 12 |
Same Property Portfolio Performance (1)
NOI Reconciliation, Portfolio Detail, and Occupancy
(in thousands)
(unaudited results)
Same Property Portfolio NOI Reconciliation Continued:
| Three Months Ended December 31, |
Year Ended December 31, | |||||||||||||||||||||||||||||||
| 2013 | 2012 | $ Change |
% Change |
2013 (2) | 2012 | $ Change |
% Change |
|||||||||||||||||||||||||
| Rental revenues |
$ | 7,901 | $ | 7,263 | $ | 638 | 8.8 | % | $ | 29,896 | $ | 27,268 | $ | 2,628 | 9.6 | % | ||||||||||||||||
| Tenant reimbursements |
881 | 771 | 110 | 14.3 | % | 3,275 | 2,843 | 432 | 15.2 | % | ||||||||||||||||||||||
| Other operating revenues |
33 | 3 | 30 | 1000.0 | % | 231 | 79 | 152 | 192.4 | % | ||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
| Total rental revenue |
8,815 | 8,037 | 778 | 9.7 | % | 33,402 | 30,190 | 3,212 | 10.6 | % | ||||||||||||||||||||||
| Property expenses |
2,085 | 1,853 | 232 | 12.5 | % | 7,884 | 7,664 | 220 | 2.9 | % | ||||||||||||||||||||||
| Other property expenses |
447 | 317 | 130 | 41.0 | % | 1,399 | 1,113 | 286 | 25.7 | % | ||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
| Total property expense |
2,532 | 2,170 | 362 | 16.7 | % | 9,283 | 8,777 | 506 | 5.8 | % | ||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
| NOI |
$ | 6,283 | $ | 5,867 | $ | 416 | 7.1 | % | $ | 24,119 | $ | 21,413 | $ | 2,706 | 12.6 | % | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
| Straight-line rents |
(209 | ) | (579 | ) | 370 | (63.9 | %) | (158 | ) | (802 | ) | 644 | (80.3 | %) | ||||||||||||||||||
| Amort. above/below market leases |
24 | 36 | (12 | ) | (33.3 | %) | 77 | 142 | (65 | ) | (45.8 | %) | ||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
| Cash NOI |
$ | 6,098 | $ | 5,324 | $ | 774 | 14.5 | % | $ | 24,038 | $ | 20,753 | $ | 3,285 | 15.8 | % | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Same Property Portfolio Detail:
| Quarterly Same Property Portfolio Detail | Annual Same Property Portfolio Detail | |||||||||||||||||||||||||||||||
| # of Properties |
Square Feet |
Wtd Avg. Occupancy |
# of Properties |
Square Feet |
Wtd Avg. Occupancy |
|||||||||||||||||||||||||||
| 2013 | 2012 | 2013 | 2012 | |||||||||||||||||||||||||||||
| Period ended September 30, 2013 and 2012 |
49 | 4,320,532 | 87.3 | % | 81.6 | % | 47 | 4,174,679 | 87.1 | % | 81.2 | % | ||||||||||||||||||||
| Additions (deductions) |
(1 | ) | (124,944 | ) | 100.0 | % | 5.1 | % | (1 | ) | (124,944 | ) | 100.0 | % | 5.1 | % | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||
| Period ended December 31, 2013 and 2012 |
48 | 4,195,588 | 89.3 | % | 86.3 | % | 46 | 4,049,735 | 89.1 | % | 86.1 | % | ||||||||||||||||||||
Same Property Portfolio Occupancy:
| Three Months Ended December 31, 2013 |
Three Months Ended December 31, 2012 |
Change (ppt) | ||||
| Occupancy: |
||||||
| Los Angeles County |
89.3% | 89.5% | -0.2% | |||
| Orange County |
95.7% | 87.6% | 8.1% | |||
| San Bernardino County |
88.4% | 84.5% | 3.9% | |||
| Ventura County |
100.0% | 100.0% | 0.0% | |||
| San Diego County |
81.6% | 72.2% | 9.4% | |||
| Other |
80.6% | 74.9% | 5.7% | |||
|
|
|
|
||||
| Total/Weighted Average |
89.3% | 86.3% | 3.0% | |||
|
|
|
|
| (1) | For a definition and discussion of non-GAAP financial measures, see the definitions section beginning on page 25 of this report. |
| (2) | Includes Predecessor and Rexford Industrial Realty, Inc. results. |
| Fourth Quarter 2013 Supplemental Financial Reporting Package |
|
Page 13 |
Joint Venture Financial Summary
Balance Sheet
(in thousands)
(unaudited results)
| Mission Oaks (1) | ||||||||||||
| December 31, 2013 | September 30, 2013 | June 30, 2013 | ||||||||||
| Assets: |
||||||||||||
| Investments in real estate, net |
$ | 54,074 | $ | 53,316 | 51,240 | |||||||
| Cash and cash equivalents |
811 | 781 | 1,758 | |||||||||
| Rents and other receivables, net |
152 | 286 | 145 | |||||||||
| Deferred rent receivable |
107 | 62 | 12 | |||||||||
| Deferred leasing costs and acquisition related intangible assets, net |
5,254 | 5,913 | 6,165 | |||||||||
| Deferred loan costs, net |
159 | 185 | 212 | |||||||||
| Acquired above-market leases, net |
823 | 912 | 1,001 | |||||||||
| Other assets |
42 | 73 | 101 | |||||||||
|
|
|
|
|
|
|
|||||||
| Total Assets |
$ | 61,422 | $ | 61,528 | $ | 60,634 | ||||||
|
|
|
|
|
|
|
|||||||
| Liabilities: |
||||||||||||
| Notes payable |
$ | 41,500 | $ | 41,500 | $ | 41,500 | ||||||
| Accounts payable, accrued expenses and other liabilities |
689 | 755 | 244 | |||||||||
| Tenant security deposits |
277 | 267 | 267 | |||||||||
| Prepaid rents |
9 | | | |||||||||
|
|
|
|
|
|
|
|||||||
| Total Liabilities |
42,475 | 42,522 | 42,011 | |||||||||
|
|
|
|
|
|
|
|||||||
| Equity: |
||||||||||||
| Equity |
18,762 | 18,762 | 18,762 | |||||||||
| Accumulated deficit and distributions |
185 | 244 | (139 | ) | ||||||||
|
|
|
|
|
|
|
|||||||
| Total Equity |
18,947 | 19,006 | 18,623 | |||||||||
|
|
|
|
|
|
|
|||||||
| Total Liabilities and Equity |
$ | 61,422 | $ | 61,528 | $ | 60,634 | ||||||
|
|
|
|
|
|
|
|||||||
| Rexford Industrial Realty, Inc./Predecessor Ownership %: |
15 | % | 15 | % | 15 | % | ||||||
| (1) | These financials represent amounts attributable to the entities and do not represent our proportionate share. |
| Fourth Quarter 2013 Supplemental Financial Reporting Package |
|
Page 14 |
Joint Venture Financial Summary (1)
Statement of Operations
(in thousands)
(unaudited results)
Statement of Operations:
| Mission Oaks (2) | ||||||||||||
| Three Months Ended | ||||||||||||
| December 31, 2013 | September 30, 2013 | June 30, 2013 | ||||||||||
| Income Statement |
||||||||||||
| Rental revenues |
$ | 1,419 | $ | 1,427 | $ | 1,272 | ||||||
| Tenant reimbursements |
330 | 330 | 261 | |||||||||
| Other operating revenues |
260 | 455 | 294 | |||||||||
|
|
|
|
|
|
|
|||||||
| Total revenue |
2,009 | 2,212 | 1,827 | |||||||||
| Total operating expense |
736 | 912 | 696 | |||||||||
|
|
|
|
|
|
|
|||||||
| NOI |
1,273 | 1,300 | 1,131 | |||||||||
|
|
|
|
|
|
|
|||||||
| General and administrative |
32 | 1 | 39 | |||||||||
| Depreciation and amortization |
1,021 | 637 | 650 | |||||||||
| Interest expense |
278 | 280 | 281 | |||||||||
|
|
|
|
|
|
|
|||||||
| Total expense |
2,067 | 1,830 | 1,666 | |||||||||
|
|
|
|
|
|
|
|||||||
| Net Income (Loss) |
$ | (58 | ) | $ | 382 | $ | 161 | |||||
|
|
|
|
|
|
|
|||||||
| EBITDA |
||||||||||||
| Net income (loss) |
$ | (58 | ) | $ | 382 | $ | 161 | |||||
| Interest expense |
278 | 280 | 281 | |||||||||
| Depreciation and amortization |
1,021 | 637 | 650 | |||||||||
|
|
|
|
|
|
|
|||||||
| EBITDA |
$ | 1,241 | $ | 1,299 | $ | 1,092 | ||||||
|
|
|
|
|
|
|
|||||||
| Rexford Industrial Realty, Inc./Predecessor Ownership %: |
15 | % | 15 | % | 15 | % | ||||||
| Reconciliation - Equity Income in Joint Venture: | ||||||||||||
| Net income (loss) |
$ | (58 | ) | $ | 382 | $ | 161 | |||||
| Rexford Industrial Realty, Inc./Predecessor Ownership %: |
15 | % | 15 | % | 15 | % | ||||||
| Company share |
(9 | ) | 57 | 24 | ||||||||
| Intercompany eliminations |
18 | 39 | 35 | |||||||||
|
|
|
|
|
|
|
|||||||
| Equity in net income (loss) from unconsolidated real estate entities |
$ | 9 | $ | 96 | $ | 59 | ||||||
|
|
|
|
|
|
|
|||||||
| (1) | For a definition and discussion of non-GAAP financial measures, see the definitions section beginning on page 25 of this report. |
| (2) | These financials represent amounts attributable to the entities and do not represent our proportionate share. |
| Fourth Quarter 2013 Supplemental Financial Reporting Package |
|
Page 15 |
Capitalization Summary
(unaudited results)
Capitalization as of December 31, 2013
| Description |
December 31, 2013 | September 30, 2013 | ||||||
| Common shares (1) |
25,419,418 | 24,757,841 | ||||||
| Operating partnership units |
3,009,259 | 3,697,086 | ||||||
|
|
|
|
|
|||||
| Total shares and units at period end (1) |
28,428,677 | 28,454,927 | ||||||
| Share price at 12/31/13 |
$ | 13.20 | $ | 13.51 | ||||
|
|
|
|
|
|||||
| Total Equity Market Capitalization |
$ | 375,258,536 | $ | 384,426,064 | ||||
| Total Consolidated Debt |
$ | 192,558,968 | $ | 122,794,765 | ||||
| Plus: pro-rata share of debt related to unconsolidated JVs |
6,225,000 | 6,225,000 | ||||||
|
|
|
|
|
|||||
| Total Debt (pro-rata) |
$ | 198,783,968 | $ | 129,019,765 | ||||
|
|
|
|
|
|||||
| Total Combined Market Capitalization |
$ | 574,042,504 | $ | 513,445,829 | ||||
|
|
|
|
|
|||||
| Total debt (pro-rata) to total combined market capitalization |
34.6 | % | 25.1 | % | ||||
| Total debt (pro-rata) to adjusted EBITDA (quarterly results annualized) |
7.7x | 5.3x | ||||||
| (1) | Excludes 140,468 and 920,734 unvested shares of restricted stock at December 31, 2013 and September 30, 2013, respectively. |
| Fourth Quarter 2013 Supplemental Financial Reporting Package |
|
Page 16 |
Debt Summary
(in thousands)
(unaudited results)
Debt Detail:
As of December 31, 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% | 2.169 | % | $ | 42,750 | |||||||||
| 10700 Jersey Blvd. |
1/1/2015 | N/A | 5.45% | 5.450 | % | 5,139 | ||||||||||
| Term Loan |
8/1/2019 | 8/1/2020 | LIBOR + 1.90% | 2.067 | % | 60,000 | ||||||||||
| Gilbert/La Palma |
3/1/2031 | N/A | 5.125% | 5.125 | % | 3,295 | ||||||||||
| Unsecured Credit Facility: |
||||||||||||||||
| $200M facility |
7/24/2016 | 7/24/2018 | LIBOR + 1.50% | 1.992 | %(2) | 81,375 | ||||||||||
|
|
|
|
|
|||||||||||||
| Total Consolidated: |
2.200 | % | $ | 192,559 | ||||||||||||
|
|
|
|
|
|||||||||||||
| Pro-rata Joint Venture Interest: |
||||||||||||||||
| Mission Oaks (3) |
6/28/2015 | 6/28/2017 | LIBOR + 2.50% | 2.688 | % | $ | 6,225 | |||||||||
| (1) | Located at 3350 Tyburn St., 33323424 N. San Fernando Rd. |
| (2) | Includes the effect of the unused commitment fee which is calculated as 0.30% of the daily unused commitment. |
| (3) | 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 |
7.3 | 5.32% | 5.32 | % | $ | 8,434 | 4 | % | ||||||||||
| Variable(1) |
3.5 | LIBOR + 1.75% | 2.06 | % | $ | 184,125 | 96 | % | ||||||||||
|
|
|
|
|
|
|
|
|
|
||||||||||
| Secured |
4.5 | 2.35 | % | $ | 111,184 | 58 | % | |||||||||||
| Unsecured credit facility |
2.6 | 1.99 | % | $ | 81,375 | 42 | % | |||||||||||
| (1) | On February 4, 2014 we executed two forward interest rate swaps to effectively fix the interest rate on our $60mm term loan in the future as follows: (i) $30 million at 3.726% annually from 1/15/15 to 2/15/19, and (ii) $30 million at 3.91% annually from 7/15/15 to 2/15/19. |
Debt Maturity Schedule:
| Year |
Secured | Unsecured Credit Facility |
Total | % Total | Interest Rate | |||||||||||||||
| 2014 |
$ | | $ | | $ | | 0 | % | | |||||||||||
| 2015 |
5,139 | | 5,139 | 3 | % | 5.45 | % | |||||||||||||
| 2016 |
42,750 | 81,375 | 124,125 | 64 | % | 2.05 | % | |||||||||||||
| 2017 |
| | | 0 | % | | ||||||||||||||
| 2018 |
| | | 0 | % | | ||||||||||||||
| 2019 |
60,000 | | 60,000 | 31 | % | 2.07 | % | |||||||||||||
| Thereafter |
3,295 | | 3,295 | 2 | % | 5.13 | % | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Total |
$ | 111,184 | $ | 81,375 | $ | 192,559 | 100 | % | 2.20 | % | ||||||||||
| Fourth Quarter 2013 Supplemental Financial Reporting Package |
|
Page 17 |
Portfolio Overview
at 12/31/2013
(unaudited results)
Consolidated Portfolio:
INDUSTRIAL:
| Ann. Base Rent | ||||||||||||||||||||||||
| Market |
# Properties | % Owned | Pro-rata Sq. Ft. |
Occ. % | Total (in thousands) |
per SF | ||||||||||||||||||
| Greater San Fernando Valley |
16 | 100.0 | % | 1,527,827 | 94.9 | % | $ | 14,308 | $ | 9.87 | ||||||||||||||
| San Gabriel Valley |
8 | 100.0 | % | 978,341 | 97.6 | % | 7,240 | $ | 7.58 | |||||||||||||||
| Central LA |
1 | 100.0 | % | 190,663 | 100.0 | % | 1,272 | $ | 6.67 | |||||||||||||||
| Mid-Counties |
4 | 100.0 | % | 522,430 | 75.0 | % | 2,974 | $ | 7.59 | |||||||||||||||
| South Bay |
6 | 100.0 | % | 335,311 | 79.5 | % | 2,009 | $ | 7.53 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
| Los Angeles County |
35 | 100.0 | % | 3,554,572 | 91.5 | % | 27,803 | $ | 8.55 | |||||||||||||||
| North Orange County |
4 | 100.0 | % | 459,754 | 88.5 | % | 3,877 | $ | 9.53 | |||||||||||||||
| Airport |
4 | 100.0 | % | 289,040 | 96.8 | % | 2,274 | $ | 8.13 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
| Orange County |
8 | 100.0 | % | 748,794 | 91.7 | % | 6,151 | $ | 8.96 | |||||||||||||||
| Inland Empire West |
5 | 100.0 | % | 495,561 | 86.4 | % | 3,995 | $ | 9.34 | |||||||||||||||
| Inland Empire East |
2 | 100.0 | % | 85,282 | 94.2 | % | 476 | $ | 5.92 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
| San Bernardino County |
7 | 100.0 | % | 580,843 | 87.5 | % | 4,471 | $ | 8.80 | |||||||||||||||
| Camarillo / Oxnard |
3 | 100.0 | % | 410,533 | 97.7 | % | 3,086 | $ | 7.69 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
| Ventura County |
3 | 100.0 | % | 410,533 | 97.7 | % | 3,086 | $ | 7.69 | |||||||||||||||
| North County |
7 | 100.0 | % | 709,251 | 84.9 | % | 5,034 | $ | 8.36 | |||||||||||||||
| Central |
2 | 100.0 | % | 137,989 | 93.9 | % | 1,615 | $ | 12.46 | |||||||||||||||
| South County |
1 | 100.0 | % | 78,615 | 72.4 | % | 505 | $ | 8.87 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
| San Diego County |
10 | 100.0 | % | 925,855 | 85.1 | % | 7,154 | $ | 9.08 | |||||||||||||||
| Other - Glenview, Illinois |
1 | 100.0 | % | 37,992 | 80.6 | % | 389 | $ | 12.70 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
| INDUSTRIAL CONSOLIDATED TOTAL / WEIGHTED AVERAGE |
64 | 100.0 | % | 6,258,589 | 90.6 | % | 49,054 | $ | 8.65 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
| OFFICE: |
||||||||||||||||||||||||
| Greater San Fernando Valley (1) |
1 | 100.0 | % | 63,305 | 0.0 | % | | $ | 0.00 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
| CONSOLIDATED TOTAL / WEIGHTED AVERAGE |
65 | 100.0 | % | 6,321,894 | 89.7 | % | $ | 49,054 | $ | 8.65 | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
|
(1) This office building, located at 2900 N. Madera Road was recently acquired on December 17, 2013. As of February 18, 2014, this property was in escrow for sale.
Unconsolidated Joint Ventures:
|
|
|||||||||||||||||||||||
| Camarillo / Oxnard |
3 | 15.0 | % | 178,261 | 73.0 | % | $ | 788 | $ | 6.05 | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
| UNCONSOLIDATED TOTAL / WEIGHTED AVERAGE |
3 | 15.0 | % | 178,261 | 73.0 | % | $ | 788 | $ | 6.06 | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
|
Total Portfolio:
|
||||||||||||||||||||||||
| GRAND TOTAL / WEIGHTED AVERAGE |
68 | 86.5 | % | 6,500,155 | 89.2 | % | $ | 49,842 | $ | 8.60 | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
| Fourth 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:
| Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | ||||||||||||||||
| Occupancy: |
||||||||||||||||||||
| Los Angeles County (1) |
89.9 | % | 88.1 | % | 90.9 | % | 90.9 | % | 90.2 | % | ||||||||||
| Orange County |
91.7 | % | 92.6 | % | 88.1 | % | 93.4 | % | 83.5 | % | ||||||||||
| San Bernardino County |
87.5 | % | 85.7 | % | 82.3 | % | 83.0 | % | 84.5 | % | ||||||||||
| Ventura County |
97.7 | % | 97.3 | % | 97.3 | % | 99.6 | % | 95.0 | % | ||||||||||
| San Diego County |
85.1 | % | 83.4 | % | 83.4 | % | 63.4 | % | 64.0 | % | ||||||||||
| Other |
80.6 | % | 69.0 | % | 67.2 | % | 75.6 | % | 85.3 | % | ||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Total/Weighted Average (2) |
89.7 | % | 88.0 | % | 88.8 | % | 85.6 | % | 84.6 | % | ||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Consolidated Portfolio SF |
6,321,894 | 10,978,992 | 10,580,532 | 9,284,556 | 14,672,505 | |||||||||||||||
| Leasing Activity: |
||||||||||||||||||||
| Three Months Ended | ||||||||||||||||||||
| Dec. 31, 2013 | Sep. 30, 2013 (4) | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | ||||||||||||||||
| Leasing Activity (SF): (3) |
||||||||||||||||||||
| New leases |
142,248 | 143,973 | 265,394 | 283,507 | 201,942 | |||||||||||||||
| Renewal |
244,068 | 194,978 | 244,206 | 337,887 | 231,655 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Gross leasing |
386,316 | 338,951 | 509,600 | 621,394 | 433,597 | |||||||||||||||
| Expiring leases |
309,769 | 328,098 | 339,347 | 425,011 | 291,409 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Net absorption |
76,547 | 10,853 | 170,253 | 196,383 | 142,188 | |||||||||||||||
| Retention rate |
79 | % | 59 | % | 72 | % | 80 | % | 79 | % | ||||||||||
| Weighted Average Renewal Leasing Spreads: |
|
|||||||||||||||||||
| Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | ||||||||||||||||||
| Cash Rent Change |
3.5 | % | (1.1 | %) | (2.8 | %) | ||||||||||||||
| GAAP Rent Change |
12.9 | % | 6.7 | % | 8.2 | % | ||||||||||||||
| (1) | Excluding the December 17, 2013 acquisition of the office building located at 2900 N. Madera Road, the occupancy at December 31, 2013 is 91.5%. |
| (2) | Excluding the December 17, 2013 acquisition of the office building located at 2900 N. Madera Road, the occupancy at December 31, 2013 is 90.6%. |
| (3) | Excludes month-to-month tenants. |
| (4) | Includes Predecessor and Rexford Industrial Realty, Inc. results. |
| Fourth Quarter 2013 Supplemental Financial Reporting Package |
|
Page 19 |
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 |
||||||||||||||||
| Fourth Quarter 2013: |
||||||||||||||||||||
| New |
38 | 142,248 | 3.5 | 4.5 | % | 15.2 | % | |||||||||||||
| Renewal (1) |
53 | 244,068 | 2.5 | 3.3 | % | 12.4 | % | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Total/Weighted Average |
91 | 386,316 | 2.9 | 3.5 | % | 12.9 | % | |||||||||||||
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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 |
14,495 | $ | 104 | $ | 27,908 | 91.9 | % | $ | 8.54 | |||||||||||
| Orange County |
12,713 | 130 | 6,281 | 93.4 | % | $ | 8.98 | |||||||||||||
| San Bernardino County |
18,004 | 123 | 4,594 | 90.6 | % | $ | 8.73 | |||||||||||||
| Ventura County |
| | 3,086 | 97.7 | % | $ | 7.69 | |||||||||||||
| San Diego County |
28,347 | 232 | 7,386 | 88.2 | % | $ | 9.04 | |||||||||||||
| Other |
| | 389 | 80.6 | % | $ | 12.70 | |||||||||||||
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|||||||||||
| Total/Weighted Average |
73,559 | $ | 589 | $ | 49,643 | 91.7 | % | $ | 8.65 | |||||||||||
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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 |
| 654,016 | | | | |||||||||||||||
| MTM Tenants |
44 | 106,434 | $ | 905 | 1.9 | % | $ | 8.51 | ||||||||||||
| 2013 (2) |
9 | 93,716 | $ | 1,126 | 2.3 | % | $ | 12.01 | ||||||||||||
| 2014 |
334 | 1,656,034 | $ | 14,090 | 28.7 | % | $ | 8.51 | ||||||||||||
| 2015 |
222 | 1,153,536 | $ | 9,774 | 19.9 | % | $ | 8.47 | ||||||||||||
| 2016 |
128 | 834,859 | $ | 7,616 | 15.5 | % | $ | 9.12 | ||||||||||||
| 2017 |
28 | 665,114 | $ | 4,714 | 9.6 | % | $ | 7.09 | ||||||||||||
| 2018 |
28 | 471,417 | $ | 3,873 | 7.9 | % | $ | 8.21 | ||||||||||||
| 2019 |
6 | 64,293 | $ | 674 | 1.4 | % | $ | 10.48 | ||||||||||||
| 2020 |
4 | 154,526 | $ | 2,612 | 5.3 | % | $ | 16.90 | ||||||||||||
| 2021 |
4 | 36,388 | $ | 804 | 1.6 | % | $ | 22.09 | ||||||||||||
| 2022 |
1 | 107,861 | $ | 440 | 0.9 | % | $ | 4.08 | ||||||||||||
| Thereafter |
4 | 323,700 | $ | 2,426 | 5.0 | % | $ | 7.49 | ||||||||||||
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| Total Portfolio |
812 | 6,321,894 | $ | 49,054 | 100.0 | % | $ | 8.65 | ||||||||||||
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| (1) | Over 96% of lease renewals during the quarter achieved flat or positive cash rent growth. |
| (2) | Of the nine leases expiring on 12/31/13, seven leases vacated totaling 33,745 SF and $398,352 of annualized base rent, one lease renewed totaling 33,799 SF and $251,472 of annualized base rent and one lease downsized totaling 26,172 SF and $476,028 of annualized base rent. |
| Fourth Quarter 2013 Supplemental Financial Reporting Package |
|
Page 20 |
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 |
|||||||||||||
| Warehouse Specialists |
LA - San Gabriel Valley | 245,961 | 2.2 | % | $ | 4.32 | 11/30/2017 | |||||||||||
| State of California |
Inland Empire West | 58,781 | 2.1 | % | $ | 17.88 | 3/31/2020 | |||||||||||
| Biosense |
LA - San Gabriel Valley | 76,000 | 2.0 | % | $ | 12.99 | 10/31/2020 | |||||||||||
| ITT Industries, Inc. |
LA - San Gabriel Valley | 67,838 | 1.8 | % | $ | 12.63 | 9/30/2023 | |||||||||||
| Kingsbridge International |
LA - San Fern. Valley | 136,065 | 1.6 | % | $ | 5.88 | 1/31/2024 | |||||||||||
| Dr. Bonners Magic Soaps |
San Diego - North | 118,597 | 1.5 | % | $ | 6.24 | 11/30/2024 | |||||||||||
| Towne, Inc. |
OC - Airport | 122,060 | 1.4 | % | $ | 5.73 | 7/31/2014 | |||||||||||
| Zag America |
LA - San Fern. Valley | 25,168 | 1.4 | % | $ | 27.60 | 12/31/2021 | |||||||||||
| Team Acquisition Corp. |
LA - San Fern. Valley | 20,442 | 1.3 | % | $ | 31.19 | 12/31/2016 | |||||||||||
| L&L Printers Carlsbad |
San Diego - North | 61,620 | 1.2 | % | $ | 9.12 | 2/28/2017 | |||||||||||
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||||||||||||
| Top 10 Total / Wtd. Avg. |
932,532 | 16.5 | % | $ | 8.68 | |||||||||||||
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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 |
598 | 1,218,853 | $ | 12,124 | 24.7 | % | $ | 9.95 | ||||||||||||
| 5,000 - 9,999 |
87 | 600,433 | 5,520 | 11.3 | % | $ | 9.19 | |||||||||||||
| 10,000 - 24,999 |
82 | 1,280,151 | 12,012 | 24.5 | % | $ | 9.38 | |||||||||||||
| 25,000 - 49,999 |
27 | 888,976 | 7,746 | 15.8 | % | $ | 8.71 | |||||||||||||
| >50,000 |
18 | 1,679,465 | 11,652 | 23.7 | % | $ | 6.94 | |||||||||||||
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| Total / Wtd. Avg. |
812 | 5,667,878 | $ | 49,054 | 100.0 | % | $ | 8.65 | ||||||||||||
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| Fourth Quarter 2013 Supplemental Financial Reporting Package |
|
Page 21 |
Capital Expenditure Summary
(unaudited results, data represents consolidated portfolio only on a pro rata basis)
Quarter Ended December 31, 2013:
| Amount | SF | PSF | ||||||||||
| Tenant Improvements: |
||||||||||||
| New Leases - 1st Generation |
$ | 260,000 | 78,249 | $ | 3.32 | |||||||
| New Leases - 2nd Generation |
$ | 117,000 | 82,649 | $ | 1.42 | |||||||
| Renewals |
$ | 121,000 | 173,326 | $ | 0.70 | |||||||
| Leasing Commissions: |
||||||||||||
| New Leases - 1st Generation |
$ | 110,000 | 89,166 | $ | 1.23 | |||||||
| New Leases - 2nd Generation |
$ | 52,000 | 63,310 | $ | 0.82 | |||||||
| Renewals |
$ | 100,000 | 141,992 | $ | 0.70 | |||||||
| Total Recurring Capex: |
||||||||||||
| Recurring Capex |
$ | 335,000 | 6,258,589 | $ | 0.05 | |||||||
| Recurring Capex % NOI |
4.0 | % | ||||||||||
| Recurring Capex % Operating Revenue |
2.7 | % | ||||||||||
| Nonrecurring Capex |
$ | 748,000 | 6,258,589 | $ | 0.12 | |||||||
| Year Ended December 31, 2013: |
||||||||||||
| Amount | SF | PSF | ||||||||||
| Tenant Improvements: |
||||||||||||
| New Leases - 1st Generation |
$ | 455,000 | 397,036 | $ | 1.15 | |||||||
| New Leases - 2nd Generation |
$ | 245,000 | 221,601 | $ | 1.11 | |||||||
| Renewals |
$ | 168,000 | 234,019 | $ | 0.72 | |||||||
| Leasing Commissions: |
||||||||||||
| New Leases - 1st Generation |
$ | 678,000 | 393,293 | $ | 1.72 | |||||||
| New Leases - 2nd Generation |
$ | 328,000 | 324,734 | $ | 1.01 | |||||||
| Renewals |
$ | 352,000 | 469,010 | $ | 0.75 | |||||||
| Total Recurring Capex: |
||||||||||||
| Recurring Capex (1) |
$ | 869,000 | 5,434,314 | $ | 0.16 | |||||||
| Recurring Capex % NOI |
2.9 | % | ||||||||||
| Recurring Capex % Operating Revenue |
2.1 | % | ||||||||||
| Nonrecurring Capex (1) |
$ | 1,708,000 | 5,434,314 | $ | 0.31 | |||||||
| (1) | Square footage based on the average of the last four quarters. |
| Fourth Quarter 2013 Supplemental Financial Reporting Package |
|
Page 22 |
Properties Under Repositioning
(unaudited results, all figures pro rata except SF)
Acquisition and Investment Detail:
As of December 31, 2013
| Property |
Ownership % |
Total SF presented on a wholly owned basis |
Acquisition Date |
Occupancy % at December 31, 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 | $ | 3.1 | $ | 3.5 | ||||||||||||||||
| Glendale* |
100.0 | % | 38,665 | Apr-08 | 65 | % | $ | 6.0 | $ | 7.7 | N/A | |||||||||||||||||
| 1661 240th St. |
100.0 | % | 100,851 | May-13 | 45 | % | $ | 5.0 | $ | 5.2 | $ | 7.6 | ||||||||||||||||
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|
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|||||||||||||||
| Grand Total / Wtd. Avg. |
591,627 | 36 | % | $ | 13.3 | $ | 15.9 | $ | 11.1 | |||||||||||||||||||
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| * | Located at 700 Allen Ave., 1840 Dana St., & 1830 Flower St. |
| Fourth Quarter 2013 Supplemental Financial Reporting Package |
|
Page 23 |
Acquisitions and Dispositions Summary
(unaudited results, data presented on a wholly owned basis)
Acquisitions:
| Date |
Property |
Address |
Submarket |
SF |
Price ($ in |
Occ. % at |
Occ. % at Dec. 31, 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 | % | 88 | % | ||||||||||||
| Dec-11 |
Shoemaker | 14944, 14946 & 14948 Shoemaker Ave. | LA - Mid-counties | 85,950 | $ | 5.7 | 68 | % | 95 | % | ||||||||||||
| Dec-11 |
Arrow | 15705, 15709 Arrow Highway & 5220 Forth St. | LA - San Gabriel | 69,592 | $ | 5.5 | 91 | % | 97 | % | ||||||||||||
| Dec-11 |
Normandie | 20920-20950 Normandie Ave. | LA - South Bay | 49,466 | $ | 4.4 | 73 | % | 98 | % | ||||||||||||
| 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 | % | 81 | % | ||||||||||||
| 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 | % | 92 | % | ||||||||||||
| 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 | % | 99 | % | ||||||||||||
| Apr-13 |
Benson | 8900-8980 Benson Ave., 5637 Arrow Highway | Inland Empire West | 88,146 | $ | 7.2 | 84 | % | 82 | % | ||||||||||||
| 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 | % | 97 | % | ||||||||||||
| Aug-13 |
Tarzana | 18310-18330 Oxnard St. | LA - San Fern. Valley | 75,288 | $ | 8.4 | 81 | % | 88 | % | ||||||||||||
| 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 | |||||||||||||
| Dec-13 |
Bonita Thompson | 280 Bonita Ave., 2743 Thompson Creek Rd. | LA - San Gabriel | 365,859 | $ | 27.2 | 100 | % | N/A | |||||||||||||
| Dec-13 |
Madera (1) | 2900-2950 N. Madera Road | LA - San Fern. Valley | 199,370 | $ | 15.8 | 68 | % | N/A | |||||||||||||
| Dec-13 |
Vanowen | 10635 W. Vanowen St. | LA - San Fern. Valley | 31,037 | $ | 3.4 | 100 | % | N/A | |||||||||||||
| (1) | Madera acquisition includes a 136,065 square foot industrial building which is 100% occupied, and an unoccupied 63,035 square foot office building. |
Dispositions:
| Date |
Property |
Address |
Submarket |
SF |
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 | |||||||||
| Fourth Quarter 2013 Supplemental Financial Reporting Package |
|
Page 24 |
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.
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 non-cash stock based compensaiton expense, loss on extinguishment of debt, non-recurring legal fees and the pro-forma effects of acquisitions and assets classified as held for sale.
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.
| Fourth Quarter 2013 Supplemental Financial Reporting Package |
|
Page 25 |
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.
| Fourth Quarter 2013 Supplemental Financial Reporting Package |
|
Page 26 |