EX-99.2
Published on August 7, 2014
Exhibit 99.2
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 26 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 management’s 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 Real Estate Investment Trust under the Internal Revenue Code of 1986, as amended; possible adverse changes in tax and environmental laws; litigation, including costs associated with prosecuting or defending pending or threatened claims and any adverse outcomes, 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 Item 1A. Risk Factors in our 2013 Annual Report on Form 10-K, which was filed with the Securities and Exchange Commission (“SEC”) on March 20, 2014. 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.
Investor Company Summary Howard Schwimmer Michael S. Frankel Adeel Khan Patrick Schlehuber Bruce Herbkersman Shannon Lewis Senior Management Team Co-Chief Executive Officer, Director Co-Chief Executive Officer, Director Chief Financial Officer Director of Acquisitions Director of Construction & Development Director of Leasing & Asset Management Richard Ziman Howard Schwimmer Michael S. Frankel Robert L. Antin Steven C. Good Joel S. Marcus Peter Schwab Board of Directors Chairman Co-Chief Executive Officer, Director Co-Chief Executive Officer, Director Director Director Director 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.
Financial and Portfolio Highlights and Common Stock Data (1) (in thousands except per share figures and portfolio statistics) Three Months Ended Three Months Ended Three Months Ended Period From July 24, 2013 June 30, 2014 March 31, 2014 December 31, 2013 to Sep. 30, 2013 (2) Financial Results: Total rental revenues $ 14,718 $ 13,415 $ 12,448 $ 8,789 Straight line rent 395 184 515 290 Fair value lease expense 73 81 76 122 Net income (loss) attributable to common stockholders 73 1,277 (881) 256 Net income (loss) per common share -basic and diluted $ 0.00 $ 0.05 $ (0.04) $ 0.01 Company share of FFO 5,532 4,941 4,308 3,001 FFO per common share -basic and diluted 0.22 0.19 0.17 0.12 EBITDA 7,769 8,959 5,951 4,178 Adjusted EBITDA 10,325 7,514 6,918 4,724 Dividend declared per common share $ 0.12 $ 0.12 $ 0.12 $ 0.09 Portfolio Statistics: Portfolio SF -consolidated 7,908,456 6,533,452 6,321,894 5,489,496 Ending occupancy -consolidated portfolio 90.5% 90.2% 89.7% 88.0% Pro-forma occupancy including uncommenced leases 91.1% 91.1% 91.7% 89.8% Leasing spreads -cash 5.2% 3.6% 3.5% -1.1% Leasing spreads -GAAP 17.1% 11.5% 12.9% 6.7% Same Property Performance: (3) Total rental revenue growth 4.8% 3.4% 9.7% 17.0% Total property expense growth -4.1% 15.0% 16.7% 12.0% NOI growth 8.3% -1.1% 7.1% 19.0% Cash NOI growth 3.3% 1.0% 14.5% 15.0% Ending occupancy 89.8% 89.1% 89.3% 87.3% Occupancy growth (ppt) 1.4% 1.4% 3.0% 5.6% Capitalization: Common stock price at quarter end $ 14.24 $ 14.18 $ 13.20 $ 13.51 Common shares issued and outstanding 25,420,381 25,419,418 25,419,418 24,757,841 Total shares and units issued and outstanding at period end (4) 28,429,640 28,428,677 28,428,677 28,454,927 Weighted average shares outstanding -basic and diluted 25,419,757 25,419,418 25,191,570 24,574,432 Total equity market capitalization $ 404,838 $ 403,119 $ 375,259 $ 384,426 Total consolidated debt 369,679 212,997 192,559 122,795 Total debt (pro-rata) (5) 375,904 219,222 198,784 129,020 Total combined market capitalization 780,742 622,341 574,043 513,446 Ratios: Total debt (pro-rata) to total combined market capitalization 48.1% 35.2% 34.6% 25.1% Total debt (pro-rata) to adjusted EBITDA (quarterly results annualized) 9.1x 7.2x 7.2x 5.2x Net debt (pro-rata) to adjusted EBITDA (quarterly results annualized) 8.9x 7.0x 6.9x 5.0x (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 June 30, 2014 to the three months ended June 30, 2013. (4) Includes 3,009,259 OP units and excludes 203,264, 131,786 and 140,468 unvested shares of restricted stock as of June 30, 2014, March 31, 2014 and December 31, 2013, respectively. 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.
Consolidated and Combined Balance Sheet 6/30/14 (unaudited and in thousands) Rexford Industrial Realty, Inc. Predecessor 3/31/14 12/31/13(1) 9/30/13 (1) 6/30/13(1) Rexford Industrial Realty, Inc. Investments in real estate, net $ 653,794 $ 512,573 $ 483,572 $ 432,024 $ 378,911 Cash and cash equivalents 9,272 6,344 8,997 4,399 24,951 Restricted cash 379 352 325 298 2,026 Notes receivable 13,136 13,135 13,139 13,153 7,876 Rents and other receivables, net 1,467 1,254 929 869 685 Deferred rent receivable 4,213 3,817 3,642 3,428 3,862 Deferred leasing costs, net 2,650 2,303 2,164 1,979 2,112 Deferred loan costs, net 3,197 1,476 1,597 1,609 1,483 Acquired lease intangible assets, net(2) 22,652 13,174 13,622 11,108 6,896 Indefinite-lived intangible 5,271 5,271 5,271 - - Other assets 2,583 4,588 2,322 2,317 4,550 Acquisition related deposits 1,450 1,550 1,510 1,435 210 Investment in unconsolidated real estate entities 5,758 5,778 5,687 8,982 11,486 Total Assets $ 725,822 $ 571,615 $ 554,675 $ 489,062 $ 452,391 Notes payable $ 369,873 $ 212,918 $ 192,491 $ 122,857 $ 343,663 Accounts payable, accrued expenses and other liabilities 6,281 6,345 6,024 4,586 2,328 Dividends payable 3,075 3,066 5,368 - - Acquired lease intangible liabilities, net(3) 1,977 1,553 1,160 535 65 Tenant security deposits 7,451 6,960 6,155 4,840 4,521 Prepaid rents 964 778 1,448 447 542 Liabilities associated with real estate held for sale - - 260 195 7,877 Equity Rexford Industrial Realty Inc. common stock $ 255 $ 255 $ 255 $ 257 $ -Rexford Industrial Realty Inc. additional paid-in capital 312,451 312,131 311,936 308,937 Accumulated other comprehensive income (410) 269 --- Predecessor equity ----11,968 Total Rexford Industrial Realty, Inc./Predecessor Equity 301,512 304,873 306,198 309,450 (15,624) Total Equity 336,201 339,995 341,769 355,602 93,395 (1) For comparability, certain prior period amounts have been reclassified to conform to current period presentation of properties held for sale. (2) Includes net above-market tenant lease intangibles of $3,443, $1,488 and $1,597 as of June 30, 2014, March 31, 2014 and December 31, 2013, respectively. (3) Includes net below-market tenant lease intangibles of $1,716, $1,284 and $883 as of June 30, 2014, March 31, 2014 and December 31, 2013, respectively. Second Quarter 2014
Consolidated and Combined Statement of Operations Quarterly Results (unaudited and in thousands, except share count and per share figures) Rexford Industrial Rexford Industrial Realty, Inc.(1) Realty, Inc. Predecessor Three Months Ended Three Months Ended Three Months Ended Period from July 24, Period from July 1, Rental revenues $ 12,773 $ 11,628 $ 10,809 $ 7,640 $ 2,384 Tenant reimbursements 1,681 1,511 1,333 828 254 Management, leasing, and development services 249 234 253 281 13 Total rental revenues 14,718 13,415 12,448 8,789 2,671 Total Revenues 14,996 13,691 12,638 8,980 2,734 Operating Expenses Property expenses $ 3,892 $ 4,134 $ 3,869 $ 2,527 $ 689 General and administrative 2,780 2,605 2,827 2,500 1,885 Depreciation and amortization 6,003 6,130 5,661 3,025 888 Other (Income) Expense Acquisition expenses $ 652 $ 333 $ 421 $ 119 $ 7 Interest expense 1,537 1,251 1,046 717 1,233 Total Expenses 14,864 14,453 13,824 8,888 4,702 Loss on extinguishment of debt ----(3,919) Discontinued Operations Income from discontinued operations before gains on sale of real estate $ - $ 21 $ 171 $ 120 $ 27 Loss on extinguishment of debt - - - - (17) Net Income (Loss) $ 81 $ 1,429 $ (1,006) $ 295 $ (5,868) Net Income (Loss) Attributable to Common Stockholders/Predecessor $ 73 $ 1,277 $ (881) $ 256 $ (2,309) Earnings per Common Share - Basic and Diluted (1) The financials reflect operations since the completion of our initial public offering on July 24, 2013. Second Quarter 2014 Page 6
Consolidated and Combined Statement of Operations Quarterly Results (in thousands) Rexford Industrial Rexford Industrial Rexford Industrial Realty, Inc. Rexford Industrial Realty, Inc. Realty, Inc. Predecessor Realty, Inc. Predecessor Six Months Ended June 30, Three Months Ended June 30, 2014 2013 2014 2013 (unaudited) (unaudited) (unaudited) (unaudited) Rental Revenues Rental revenues 12,773$ 9,062$ 24,401$ 16,822$ Tenant reimbursements 1,681 1,112 3,192 1,959 Total rental revenues 14,718 10,393 28,133 19,379 Total Revenues 14,996 10,717 28,687 20,014 Operating Expenses Property expenses 3,892 2,835 8,026 5,234 General and administrative 2,780 1,396 5,385 2,535 Other (Income) Expense Acquisition expenses 652 624 985 717 Total Other Expense 2,189 5,010 3,773 8,829 Equity in loss income from unconsolidated real estate entities (51) (712) (6) (925) Gain from early repayment of note receivable ---1,365 Discontinued Operations Income (loss) from discontinued operations before gains on sale of real estate - (257) 21 (838) Loss on extinguishment of debt - (41) - (250) Net Income (Loss) 81 (468) 1,510 1,586 Net Income (Loss) Attributable to Common Stockholders/Predecessor $ 73 $ (2,286) $ 1,350 $ (1,958)
Non-GAAP FFO (1) (in thousands) (unaudited results) Rexford Industrial Realty, Inc. (2) Rexford Industrial Realty, Inc. Predecessor June 30, 2014 March 31, 2014 Three Months Ended December 31, 2013 July 24, 2013 to Sep. 30, 2013 July 1, 2013 to July 23, 2013 Funds From Operations (FFO) Net income (loss) attributable to common stockholders/predecessor $ 73 1,277 $ (881) $ 256 $ (5,868) Add: Depreciation and amortization, including amounts in discontinued operations 6,003 6,137 5,716 3,062 901 Depreciation and amortization from unconsolidated joint ventures 103 85 153 96 107 Loss from early extinguishment of debt - - - - 3,935 Net income (loss) attributable to noncontrolling interests 8 152 (125) 39 - Deduct: Gains on sale of real estate - 2,125 - - - Company share of FFO (3) $ 5,532 $ 4,941 $ 4,308 $ 3,001 FFO per share -basic and diluted $ 0.22 $ 0.19 $ 0.17 $ 0.12 Add: Non-recurring legal fees(4) --225 235 FFO available to common shareholders and unitholders before non-recurring legal fees $ 6,839 $ 5,859 $ 5,509 $ 3,807 Company share of FFO before non-recurring legal fees and acquisition expenses (3) $ 6,115 $ 5,239 $ 4,880 $ 3,373 Weighted-average shares outstanding -basic and diluted Weighted-average diluted shares and units 25,419,757 28,429,016 25,419,418 28,428,677 25,191,570 28,436,531 24,574,432 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 10.6% for the three months ended June 30, 2014. (4) Non-recurring legal fees relate to Accommodation and Litigation. For more information, see Item 3. Legal Proceedings in our 2013 Annual Report on Form 10-K and Item 1. Legal Proceedings in our subsequent filings on Form 10-Q. Second Quarter 2014 Page 8
Non-GAAP AFFO (1) (in thousands) (unaudited results) Rexford Industrial Rexford Industrial Realty, Inc. (2) Realty, Inc. Predecessor Three Months Ended July 24, 2013 to July 1, 2013 to June 30, 2014 March 31, 2014 December 31, 2013 Sep. 30, 2013 July 23, 2013 Adjusted Funds From Operations (AFFO) FFO available to common shareholders and unitholders 6,187 $ 5,526 4,863$ 3,453$ (925)$ Add: Amortization of deferred financing costs 144 129 124 93 127 Fair value lease expense 73 81 76 122 44 Acquisition costs 655 333 421 119 7 Non-cash stock compensation 279 172 (59) 326 900 Deduct: Straight line rent adjustment 395 184 515 290 41 Capitalized payments (3) 222 249 246 67 23 Note Receivable discount amortization 65 64 50 25 8 Note Payable premium amortization 35 11 11 9 3 Recurring capital expenditures (4) 447 280 335 139 - 2nd generation tenant improvements and leasing commissions (5) 795 275 390 166 (1) (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 compensation. (4) Excludes nonrecurring capital expenditures of $1,708,000, $557,000, $748,000, $414,000, and $1,000 for the three months ended June 30, 2014, March 31, 2014, December 31, 2013, July 24, 2013 to September 30, 2013, and the period from July 1, 2013 to July 23, 2013, respectively. (5) Excludes 1st generation tenant improvements and leasing commissions of $31,000, $50,000, $370,000, $86,000, and $27,000 for the three months ended June 30, 2014, March 31, 2014, December 31, 2013, the period from July 24, 2013 to September 30, 2013, and the period from July 1, 2013 to July 23, 2013, respectively. Second Quarter 2014
Statement of Operations Reconciliations (1) (in thousands) (unaudited results) Net Operating Income (NOI) Rental revenues June 30, 2014 12,773 $ Rexford Industrial Realty, Inc. Three Months Ended March 31, 2014 December 31, 2013 11,628$ 10,809$ Period from 7,640$ July 24, 2013 to Sep. 30, 2013 Rexford Industrial Realty, Inc. Predecessor Period from 2,384$ July 1, 2013 to July 23, 2013 Property expenses 3,892 4,134 3,869 2,527 689 NOI $ 10,577 $ 9,047 $ 8,326 $ 5,981 $ 1,969 Straight line rent adjustment (395) (184) (515) (290) (41) Net Income (Loss) $ 81 $ 1,429 $ (1,006) $ 295 $ (5,868) Add: General and administrative 2,780 2,605 2,827 2,500 1,885 Depreciation and amortization 6,003 6,130 5,661 3,025 888 Acquisition expenses 652 333 421 119 7 Interest expense 1,537 1,251 1,046 717 1,233 Subtract: Management, leasing, and development services 249 234 253 281 13 Interest income 278 276 190 191 63 Equity in (loss) income from unconsolidated real estate entities (51) 45 9 83 9 Loss on extinguishment of debt ----(3,919) Income from discontinued operations -2,146 171 120 10 Fair value lease revenue 73 81 76 122 44 Cash NOI $ 10,255 $ 8,944 $ 7,887 $ 5,813 $ 1,972 (1) For a definition and discussion of non-GAAP financial measures, see the definitions section beginning on page 25 of this report. Second Quarter 2014
Statement of Operations Reconciliations (1) (in thousands) (unaudited results) Rexford Industrial Realty, Inc. Period from July Three Months Ended 24, 2013 to September 30, June 30, 2014 March 31, 2014 December 31, 2013 2013 Net income (loss) $ 81 $ 1,429 $ (1,006) $ 295 Interest expense 1,537 1,251 1,046 717 Proportionate share of interest expense from unconsolidated joint ventures 45 57 42 32 Depreciation and amortization 6,003 6,130 5,661 3,025 Depreciation and amortization included in discontinued operations -7 55 37 Proportionate share of real estate related depreciation and Stock-based compensation amortization 279 172 (59) 326 Gain on sale of real estate -(2,125) -Non-recurring legal fees(2) --225 235 Acquisition expenses 652 333 421 119 Pro forma effect of acquisitions(3) 1,625 203 606 23 Adjusted EBITDA $ 10,325 $ 7,514 $ 6,918 $ 4,724 (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. For more information, see Item 3. Legal Proceedings in our 2013 Annual Report on Form 10-K and Item 1. Legal Proceedings in oursubsequent filings on Form 10-Q. (3) Represents the estimated impact of Q2'14 acquisitions as if they had been acquired on April 1, 2014, Q1'14 acquisitions as if they had been acquired on January 1, 2014, Q4'13 acquisitions calculating as if they had been acquired on October 1, 2013, and Q3'13 acquisitions as if they had been acquired on July 24, 2013. We have made a number of assumptions in 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 the beginning of each period. (4) Represents the estimated impact of Kaiser, which was sold on January 29, 2014, and Madera, which was sold on March 13, 2014, as if they had been disposed of as of the beginning of each period presented.
Same Property Portfolio Performance (1) (in thousands) Statement of Operations and NOI Reconciliation (unaudited results) Rental revenues 8,344 7,906 438 5.5% $ 16,376 $ 15,645 $ 731 4.7% Tenant reimbursements 930 909 21 2.3% 1,865 1,756 109 6.2% Operating Expenses Property expenses $ 2,405 $ 2,509 $ (104) (4.1%) $ 5,190 $ 4,918 $ 272 5.5% Depreciation and amortization 3,411 3,042 369 12.1% 7,094 5,802 1,292 22.3% Other (Income) Expense Total Other Expense 58 4,167 (4,109) (98.6%) 115 7,941 (7,826) (98.6%) Net Income (Loss) $ 3,686 $ (537) $ 4,223 786.4% $ 6,439 $ (527) $ 6,966 1321.8% Net Income (Loss) 3,686 $ (537) 6,439 $ (527) Add: Interest expense (3) 58 4,167 115 7,941 Depreciation and amortization 3,411 3,042 7,094 5,802 Deduct: NOI Amort. above/below market leases 6,876$ 6,348$ 528$ 32 34 8.3% 13,093$ 12,644$ 449$ 64 78 3.6% (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 Rexford Industrial Realty, Inc. Predecessor for the three and six months ended June 30, 2013, respectively. (3) Interest expense for the three and six months ended June 30, 2014 only reflects interest for the loan secured by our property located at 107700 Jersey Blvd. Interest on our post-IPO $60mm term loan, which is secured by multiple properties, is being reported under the operating partnership and accordingly the interest is not being pushed down to the property. Second Quarter 2014 Supplemental Financial Reporting Package Page 12
Same Property Portfolio Performance (1) (in thousands) NOI Reconciliation, Portfolio Detail, and Occupancy (unaudited results) Straight-line rents (221) 92 (313) (340.2%) (245) (71) (174) 245.1% Three Month Same Property Portfolio Rollforward Six Month Same Property Portfolio Rollforward Period ended March 31, 2014 and 2013 50 4,402,399 89.1% 87.7% 50 4,402,399 89.1% 87.7% Period ended June 30, 2014 and 2013 50 4,402,399 89.8% 88.4% 50 4,402,399 89.8% 88.4% Los Angeles County 92.5% 91.1% 1.4% Orange County 99.3% 88.5% 10.8% San Bernardino County 86.4% 81.7% 4.7% Ventura County 87.6% 97.3% -9.7% Total/Weighted Average 89.8% 88.4% 1.4% (1) For a definition and discussion of non-GAAP financial measures, see the definitions section beginning on page 25 of this report. (2) Reflects the results of operations for Rexford Industrial Realty, Inc. Predecessor for the three and six months ended June 30, 2013, respectively. Second Quarter 2014
Joint Venture Financial Summary (in thousands) Balance Sheet (unaudited results) Mission Oaks (1) June 30, 2014 March 31, 2014 December 31, 2013 September 30, 2013 Assets: Investments in real estate, net 56,439$ 55,085$ 54,074$ 53,316$ Cash and cash equivalents 427 853 811 781 Rents and other receivables, net 182 133 152 286 Deferred rent receivable 212 161 107 62 Deferred leasing costs and acquisition - related intangible assets, net 4,569 4,912 5,254 5,913 Deferred loan costs, net 106 132 159 185 Acquired above-market leases, net 646 735 823 912 Other assets 64 81 42 73 Liabilities: Notes payable $ 41,500 $ 41,500 $ 41,500 $ 41,500 Accounts payable, accrued expenses and other liabilities 727 913 689 755 Tenant security deposits 277 277 277 267 Total Liabilities 42,628 42,833 42,475 42,522 Equity: Equity 19,462 18,867 18,762 18,762 Accumulated deficit and distributions 555 392 185 244 Rexford Industrial Realty, Inc./Predecessor Ownership %: 15% 15% 15% 15% (1) These financials represent amounts attributable to the entities and do not represent our proportionate share.
Joint Venture Financial Summary (1) (in thousands) Statement of Operations (unaudited results) Mission Oaks (2) Three Months Ended June 30, 2014 March 31, 2014 December 31, 2013 September 30, 2013 Income Statement Rental revenues $ 1,291 $ 1,286 1,419$ 1,427$ Tenant reimbursements 630 526 330 330 Total operating expense 745 629 736 912 General and administrative 28 29 32 1 Depreciation and amortization 686 564 1,021 637 Total expense 1,758 1,605 2,067 1,830 EBITDA Net income (loss) $ 163 $ 207 $ (58) $ 382 Interest expense 299 383 278 280 Depreciation and amortization 686 564 1,021 637 Rexford Industrial Realty, Inc./Predecessor Ownership %: 15% 15% 15% 15% Net income (loss) $ 163 $ 207 $ (58) $ 382 Rexford Industrial Realty, Inc./Predecessor Ownership %: 15% 15% 15% 15% Company share 24 31 (9) 57 (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. Second Quarter 2014
Capitalization Summary (unaudited results) Total consolidated debt $ 369,679,177 $ 212,997,286 $ 192,558,968 $ 122,794,765 Less: Cash and cash equivalents $ (9,272,000) $ (6,344,000) $ (8,997,000) $ (4,399,000) Net Debt (pro-rata) $ 366,632,177 $ 212,878,286 $ 189,786,968 $ 124,620,765 Total debt (pro-rata) to total combined market capitalization 48.1% 35.2% 34.6% 25.1% Total debt (pro-rata) to adjusted EBITDA (quarterly results annualized) 9.1x 7.2x 7.2x 5.2x Net debt (pro-rata) to adjusted EBITDA (quarterly results annualized) 8.9x 7.0x 6.9x 5.0x (1) Excludes 203,264, 131,786, 140,468 and 920,734 unvested shares of restricted stock at June 30, 2014, March 31, 2014, December 31, 2013 and September 30, 2013, respectively. Second Quarter 2014
Debt Summary (in thousands) (unaudited results) As of June 30, 2014 Initial Maturity Date w/ Stated Effective Debt Description Maturity Date Extensions Interest Rate Interest Rate Balance Secured Debt: Glendale Commerce Center (1) 5/1/2016 5/1/2018 LIBOR + 2.00% 2.150% $ 42,750 10700 Jersey Blvd. 1/1/2015 N/A 5.45% 5.450% 5,077 Term Loan 8/1/2019 8/1/2020 LIBOR + 1.90% 2.050% 60,000 Gilbert/La Palma 3/1/2031 N/A 5.125% 5.125% 3,234 2980 San Fernando 7/1/2015 N/A 5.088% 5.088% 10,243 Term Loan 7/24/2017 7/24/2019 LIBOR + 1.55% 1.701% 48,500 Unsecured Debt: Total Consolidated: 2.025% $ 369,679 Mission Oaks (3) 6/28/2015 6/28/2017 LIBOR + 2.50% 2.688% $ 6,225 (1) Located at 3350 Tyburn St., 3332 -3424 N. San Fernando Rd. (2) Includes the effect of the unused commitment fee which is calculated as 0.30% or 0.20% of the daily unused commitment if the balance is under $100,000,000 or over $100,000,000, respectively. (3) 3001, 3175 & 3233 Mission Oaks Blvd. structured as 3 separate cross-collateralized loans with similar terms. Avg. Term Stated Effective Interest Variable(1) 4.1 LIBOR + 1.65% 1.86% $ 351,125 95% Unsecured credit facility 4.5 1.77% $ 199,875 54% (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. Year Secured Unsecured Debt Total % Total Interest Rate 2014 $ -$ -$ -0% 2015 15,320 -15,320 4% 5.21% 2016 42,750 -42,750 12% 2.15% 2017 48,500 -48,500 13% 1.70% 2018 -99,875 99,875 27% 1.90% 2019 60,000 100,000 160,000 43% 1.80% Thereafter 3,234 -3,234 1% 5.13%
Portfolio Overview at 6/30/14 (unaudited results) Ann. Base Rent Total Market # Properties % Owned Pro-rata Sq. Ft. Occ. % (in thousands)(1) per SF Greater San Fernado Valley 18 100.0% 1,736,627 94.7% $ 16,406 $9.98 San Gabriel Valley 10 100.0% 1,213,095 97.0% 8,803 $7.48 Central LA 1 100.0% 190,663 100.0% 1,288 $6.76 Mid-Counties 4 100.0% 522,430 91.7% 3,512 $7.33 North Orange County 5 100.0% 579,446 94.8% 4,946 $9.01 West Orange County 1 100.0% 170,865 100.0% 1,308 $7.65 Inland Empire West 7 100.0% 721,063 88.6% 5,238 $8.20 Camarillo / Oxnard 3 100.0% 410,533 87.6% 2,808 $7.81 North County 6 100.0% 584,254 75.9% 3,788 $8.54 Central 7 100.0% 476,724 92.4% 4,234 $9.61 San Diego County 14 100.0% 1,139,593 83.6% 8,616 $9.05 Other - Glenview, Illinois 1 100.0% 37,992 79.5% 302 $10.00 Camarillo / Oxnard 3 15.0% 178,261 73.8% $ 806 $6.13 GRAND TOTAL / WEIGHTED AVERAGE 85 88.9% 8,086,717 90.1% $ 60,610 $8.32 (1) Calculated for each property as monthly contracted base rent per the terms of the lease(s) at such property, as of June 30, 2014, multiplied by 12 and then multiplied by our ownership interest for such property, and then aggregated by market. Excludes billboard and antenna revenue and rent abatements. Second Quarter 2014
Occupancy and Leasing Trends (unaudited results, data represents consolidated portfolio only on a pro rata basis) Jun. 30, 2014 Mar. 31, 2014 Dec. 31, 2013 Sep. 30, 2013 Jun. 30, 2013 Occupancy: Los Angeles County (1) 92.5% 91.6% 89.9% 88.1% 90.9% Orange County 91.9% 95.0% 91.7% 92.6% 88.1% San Bernardino County 88.9% 88.8% 87.5% 85.7% 82.3% Ventura County 87.6% 91.5% 97.7% 97.3% 97.3% Consolidated Portfolio SF 7,908,456 6,533,452 6,321,894 5,489,496 5,290,266 Three Months Ended Jun. 30, 2014 Mar. 31, 2014 Dec. 31, 2013 Sep. 30, 2013(4) Jun. 30, 2013 Leasing Activity (SF): (3) Expiring leases 582,344 618,303 309,769 328,098 339,347 Jun. 30, 2014 Mar. 31, 2014 Dec. 31, 2013 Sep. 30, 2013 Jun. 30, 2013 Cash Rent Change GAAP Rent Change 5.2% 17.1% 3.6% 11.5% 3.5% 12.9% (1.1%) 6.7% (2.8%) 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 Rexford Industrial Realty, Inc. Predecessor and Rexford Industrial Realty, Inc. results. Second Quarter 2014 Supplemental Financial Reporting Package Page 19
Leasing Statistics (unaudited results, data represents consolidated portfolio only on a pro rata basis) New 44 208,819 3.6 2.9% 12.9% Total/Weighted Average 116 572,617 2.8 5.2% 17.1% Uncomm. Lease Ann. Base Total Pro Forma Ann. Base Rent Rent Pro Forma Pro Forma Ann. Base Market Leased SF (in thousands) (in thousands) Occupancy % Rent per SF Los Angeles County 20,904 297$ 33,187$ 93.0% $8.48 Orange County - - 9,486 91.9% $7.90 San Bernardino County - - 5,702 88.9% $7.95 Ventura County - - 2,808 87.6% $7.81 San Diego County 32,586 293 8,909 86.4% $9.04 Total/Weighted Average 53,490 $ 590 $ 60,394 91.1% $8.38 Ann. Base Rent Ann. Base Rent Year of Lease Expiration # of Leases Expiring Total Rentable SF (in thousands) % of Ann. Base Rent per SF Available - 754,964 - - - MTM Tenants 124 196,305 $ 2,024 3.5% $10.31 2014 189 895,155 6,865 11.5% $7.67 2015 292 1,344,947 11,417 19.1% $8.49 2016 216 1,789,175 14,526 24.3% $8.12 2017 102 1,137,194 8,837 14.8% $7.77 2018 40 712,934 5,912 9.9% $8.29 2019 20 488,023 3,982 6.7% $8.16 2020 5 154,526 2,632 4.4% $17.03 2021 7 86,388 1,161 1.9% $13.44 (1) Over 99% of lease renewals during the quarter achieved flat or positive cash rent growth. Second Quarter 2014
Top Tenants and Lease Segmentation (unaudited results, data represents consolidated portfolio only on a pro rata basis) % of Total Ann. Ann. Base Rent Dendreon Corporation OC -West 170,865 2.2% $7.65 12/31/2019 State of California Inland Empire West 58,781 1.8% $18.13 3/31/2020 Warehouse Specialists LA -San Gabriel Valley 245,961 1.8% $4.32 11/30/2017 Biosense LA -San Gabriel Valley 76,000 1.7% $12.99 10/31/2020 Excelis (Formerly ITT Industries, Inc.) LA -San Gabriel Valley 67,838 1.4% $12.63 9/30/2023 Kingsbridge International LA -San Fern. Valley 136,065 1.3% $5.88 1/31/2024 Tree Island Wire LA -San Gabriel Valley 108,703 1.2% $6.49 11/30/2016 Towne Inc. OC -Airport 122,060 1.2% $5.73 7/31/2016 Ann. Base Rent % of Total Ann. Ann. Base Rent Square Feet Number of Leases Leased SF (in thousands) Base Rent per SF 5,000 -9,999 104 718,422 7,273 12.2% $10.12 10,000 -24,999 110 1,776,998 15,062 25.2% $8.48 Total / Wtd. Avg. 1,001 7,153,492 $ 59,804 100.0% $8.36
Capital Expenditure Summary (unaudited results, data represents consolidated portfolio only on a pro rata basis) New Leases 1st Generation New Leases 2nd Generation Renewals $ $ $ -302,000 37,000 237,755 176,995 - $ $ $ -1.27 0.21 Leasing Commissions & Lease Costs: New Leases 1st Generation New Leases 2nd Generation Renewals $ $ $ 31,000 374,000 82,000 16,444 293,363 116,788 $ $ $ 1.89 1.27 0.70 Total Recurring Capex: Recurring Capex Recurring Capex % NOI Recurring Capex % Operating Revenue $ 447,000 4.2% 3.1% 2,457,669 $ 0.18 Nonrecurring Capex $ 1,708,000 1,713,319 $ 1.00 Tenant Improvements: New Leases 1st Generation New Leases 2nd Generation Renewals Amount SF(1) 9,000$ 7,032 345,000$ 306,585 81,000$ 367,110 $ $ $ PSF 1.28 1.13 0.22 Leasing Commissions & Lease Costs: New Leases 1st Generation New Leases 2nd Generation Renewals 72,000$ 123,648 504,000$ 456,250 141,000$ 165,803 $ $ $ 0.58 1.10 0.85 Total Recurring Capex: Recurring Capex(1) Recurring Capex % NOI Recurring Capex % Operating Revenue 727,000$ 2,320,605 3.7% 2.6% $ 0.31 Nonrecurring Capex(1) 2,265,000$ 1,856,875 $ 1.22 (1) For tenant improvements and leasing commissions, reflects the aggregate square footage of the leases in which we incurred such costs, excluding new/renewal leases in which there were no tenant improvements and/or leasing commissions. For total recurring capex and nonrecurring capex, reflects the aggregate square footage of the properties in which we incurred such capital expenditures. Second Quarter 2014
Properties Under Repositioning (unaudited results, all figures pro rata except SF) As of June 30, 2014 Total SF presented on Purchase Projected a wholly Acquisition Occupancy % at Price Inv.-to-date Total Inv. Property Ownership % owned basis Date June 30, 2014 ($ in MM) ($ in MM) ($ in MM) Work In Progress: 3233 Mission Oaks Blvd. 15.0% 452,111 Jun-12 32% $2.3 $3.4 $3.5 Glendale* 100.0% 38,665 Apr-08 65% $6.0 $7.9 N/A 1661 240th St. 100.0% 100,851 May-13 0% $5.0 $6.2 $7.6 Grand Total / Wtd. Avg. 663,627 31% $18.3 $22.5 $16.6 * Located at 700 Allen Ave., 1840 Dana St., & 1830 Flower St. Second Quarter 2014
Acquisitions and Dispositions Summary (unaudited results, data presented on a wholly owned basis) Price Occ. % at Occ. % at Aug-13 Tarzana 18310-18330 Oxnard St. LA -San Fern. Valley 75,288 $8.4 81% 96% Nov-13 Yorba Linda Business Park 22343-22349 La Palma Ave. OC -North 115,760 $12.7 79% 77% Nov-13 The Park 1100-1170 Gilbert St., 2353-2373 La Palma Ave. OC -North 120,313 $10.6 85% 98% Dec-13 Bonita Thompson 280 Bonita Ave., 2743 Thompson Creek Rd. LA -San Gabriel 365,859 $27.2 100% 100% Dec-13 Madera (1) 2900-2950 N. Madera Road LA -San Fern. Valley 199,370 $15.8 68% 100% Dec-13 Vanowen 10635 W. Vanowen St. LA -San Fern. Valley 31,037 $3.4 100% 100% Jan-14 Rosecrans 7110 Rosecrans Avenue LA -South Bay 72,000 $5.0 50% 50% Jan-14 14723-14825 Oxnard 14723-14825 Oxnard Street LA -San Fern. Valley 78,000 $8.9 98% 98% Feb-14 Ontario Airport Ana Street Inland Empire West 113,612 $8.6 95% 92% Feb-14 228th Street 1500-1510 West 228th Street LA -South Bay 88,330 $6.6 100% 95% Mar-14 24105 Frampton 24105 & 24201 Frampton Avenue LA -South Bay 47,903 $3.9 100% 100% Apr-14 Saturn Way 1700 Saturn Way OC -West 170,865 $21.1 100% 100% May-14 San Fernando 2980 & 2990 N. San Fernando Blvd. OC -South 130,800 $15.4 100% 100% May-14 Crescent Bay 20531 Crescent Bay Drive LA -San Fern. Valley 46,178 $6.5 100% 100% Jun-14 Birch 2610 & 2701 S. Birch Street OC -Airport 98,105 $11.0 100% 100% Jun-14 Dupont 4051 Santa Ana St. & 701 Dupont Ave. Inland Empire West 111,890 $10.2 100% 100% Jun-14 9755 Distribution Ave 9755 Distribution Ave San Diego -Central 47,666 $5.4 100% 100% Jun-14 9855 Distribution Ave 9855 Distribution Ave San Diego -Central 60,819 $8.5 100% 100% Jun-14 9340 Cabot Drive 9340 Cabot Drive San Diego -Central 86,564 $11.0 84% 84% Jun-14 9404 Cabot Drive 9404 Cabot Drive San Diego -Central 46,846 $6.4 100% 100% Jun-14 9455 Cabot Drive 9455 Cabot Drive San Diego -Central 96,840 $12.1 84% 84% Jun-14 14955-14971 E Salt Lake Ave 14955-14971 E Salt Lake Ave LA -San Gabriel Valley 126,036 $10.9 100% 100% Jun-14 5235 Hunter Ave 5235 Hunter Ave OC -North 119,692 $11.3 100% 100% Jun-14 3880 W Valley Blvd 3880 W Valley Blvd LA -San Gabriel Valley 108,703 $9.6 100% 100% Jun-14 1601 & 1621 Alton Pkwy 1601 & 1621 Alton Pkwy OC -Airport 124,000 $13.3 40% 40% (1) Madera acquisition includes a 136,065 square foot industrial building and a 63,035 square foot office building, which was subsequently sold in Q1-2014. Sale Price 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 Jan-14 Kaiser 1335 Park Center Drive San Diego -North 124,997 $10.1 User sale Mar-14 Madera -Office 2900 N. Madera Road LA -San Fern. Valley 63,305 $4.4 Non core business Second Quarter 2014 Page 24 Supplemental Financial Reporting Package
Definitions / Discussion of Non-GAAP Financial Measures Adjusted Funds from Operations (AFFO): We calculate adjusted funds from operations, or AFFO, by adding to or subtracting from FFO (i) non-cash operating revenues and expenses, (ii) capitalized operating expenditures such as leasing payroll, (iii) recurring capital expenditures required to maintain and re-tenant our properties, (iv) regular principal payments required to service our debt, and (v) 2nd generation tenant improvements and leasing commissions. Management uses AFFO as a supplemental performance measure because it provides a performance measure that, when compared year over year, captures trends in portfolio operating results. We also believe that, as a widely recognized measure of the performance of REITs, AFFO will be used by investors as a basis to assess our performance in comparison to other REITs. 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. Second Quarter 2014 Page 25
Supplemental Financial Reporting Package Definitions / Discussion of Non-GAAP Financial Measures Properties Under Repositioning: Typically defined as properties where 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 company's computation of same property performance may not be comparable to other real estate companies. Uncommenced Leases: Reflects signed leases that have not yet commenced as of the reporting date. Second Quarter 2014