Exhibit 99.2

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Table of Contents.

Section	Page
Corporate Data:
Investor Company Summary	3
Financial and Portfolio Highlights and Common Stock Data	4
Consolidated Financial Results:
Consolidated Balance Sheets	5
Consolidated Statements of Operations	6-7
Non-GAAP FFO, Core FFO and AFFO Reconciliations	8-9
Statement of Operations Reconciliations	10
Same Property Portfolio Performance	11
Capitalization Summary	12
Debt Summary	13
Portfolio Data:
Portfolio Overview	14
Occupancy and Leasing Trends	15
Leasing Statistics	16-17
Top Tenants and Lease Segmentation	18
Capital Expenditure Summary	19
Properties and Space Under Repositioning	20-21
Current Year Acquisitions and Dispositions Summary	22
Guidance	23
Net Asset Value Components	24
Notes and Definitions	25-28

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 2016 Annual Report on Form 10-K, which was filed with the Securities and Exchange Commission (“SEC”) on February 23, 2017. We disclaim any obligation to publicly update or revise any forward-looking statement to reflect changes in underlying assumptions or factors, of new information, data or methods, future events or other changes.

	Second Quarter 2017 Supplemental Financial Reporting Package	Page 2

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Investor Company Summary.

Executive Management Team
Howard Schwimmer		Co-Chief Executive Officer, Director
Michael S. Frankel		Co-Chief Executive Officer, Director
Adeel Khan		Chief Financial Officer
David Lanzer		General Counsel and Corporate Secretary

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
Peter Schwab		Director
Tyler H. Rose		Director

Investor Relations Information
	ICR
Stephen Swett
www.icrinc.com
212-849-3882

		Equity Research Coverage
Bank of America Merrill Lynch		James Feldman		(646) 855-5808
Capital One		Chris Lucas		(571) 633-8151
Citigroup Investment Research		Emmanuel Korchman		(212) 816-1382
D.A Davidson		Barry Oxford		(212) 240-9871
J.P. Morgan		Michael W. Mueller, CFA		(212) 622-6689
Jefferies LLC		Jonathan Petersen		(212) 284-1705
National Securities Corporation		John R. Benda		(212) 417-8127
Stifel Nicolaus & Co.		John W. Guinee		(443) 224-1307
Wells Fargo Securities		Blaine Heck		(443) 263-6529
FBR & Co.		Craig Kucera		(540) 277-3366

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

	Second Quarter 2017 Supplemental Financial Reporting Package	Page 3

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Financial and Portfolio Highlights and Common Stock Data. (1)
	(in thousands except share and per share data and portfolio statistics)

	Three Months Ended
	June 30, 2017				March 31, 2017				December 31, 2016				September 30, 2016				June 30, 2016
Financial Results:
Total rental revenues	$	36,419			$	35,001			$	34,449			$	32,944			$	30,497
Net income	$	19,855			$	5,721			$	8,546			$	3,061			$	12,792
Net Operating Income (NOI)	$	26,883			$	25,779			$	25,310			$	23,966			$	22,538
Company share of Core FFO	$	15,893			$	15,104			$	15,048			$	14,240			$	13,920
Core FFO per common share - diluted	$	0.23			$	0.23			$	0.23			$	0.22			$	0.22
Company share of FFO	$	15,873			$	14,733			$	15,071			$	13,874			$	13,309
FFO per common share - diluted	$	0.23			$	0.22			$	0.23			$	0.21			$	0.21
Adjusted EBITDA	$	25,360			$	22,292			$	22,388			$	20,622			$	19,679
Dividend declared per common share	$	0.145			$	0.145			$	0.135			$	0.135			$	0.135
Portfolio Statistics:
Portfolio SF - consolidated	16,221,646				15,069,122				15,020,336				14,588,101				13,640,820
Ending occupancy - consolidated portfolio	91.4		%		88.9		%		91.7		%		89.7		%		90.1		%
Stabilized occupancy - consolidated portfolio	96.5		%		96.4		%		96.8		%		95.8		%		96.5		%
Leasing spreads - GAAP	20.4		%		23.3		%		16.1		%		15.6		%		23.5		%
Leasing spreads - cash	10.6		%		13.7		%		5.9		%		7.0		%		11.0		%
Same Property Performance:
Same Property Portfolio SF	11,211,536				11,211,536				11,211,536				11,211,536				11,211,536
Same Property Portfolio ending occupancy	93.5		%		93.1		%		94.9		%		93.0		%		91.5		%
Stabilized Same Property Portfolio ending occupancy	96.0		%		96.0		%		96.9		%		96.5		%		96.0		%
NOI growth(2)	6.6		%		8.3		%		n/a				n/a				n/a
Cash NOI growth(2)	5.1		%		10.1		%		n/a				n/a				n/a
Capitalization:
Common stock price at quarter end	$	27.44			$	22.52			$	23.19			$	22.89			$	21.09
Common shares issued and outstanding	70,810,523				66,375,624				66,166,548				65,725,504				65,679,483
Total shares and units issued and outstanding at period end (3)	72,785,007				68,365,436				68,175,212				67,704,346				67,679,046
Weighted average shares outstanding - diluted	68,331,234				66,626,239				66,079,935				67,985,177				64,304,713
5.875% Series A Cumulative Redeemable Preferred Stock	90,000				90,000				90,000				90,000				—
Total equity market capitalization	$	2,087,221			$	1,629,590			$	1,670,983			$	1,639,752			$	1,427,351
Total consolidated debt	$	564,242			$	512,504			$	502,476			$	502,776			$	503,009
Total combined market capitalization (net debt plus equity)	$	2,638,345			$	2,130,418			$	2,157,934			$	2,087,265			$	1,901,183
Ratios:
Net debt to total combined market capitalization	20.9		%		23.5		%		22.6		%		21.4		%		24.9		%
Net debt to Adjusted EBITDA (quarterly results annualized)	5.4x				5.6x				5.4x				5.4x				6.0x

(1)	For definition/discussion of non-GAAP financial measures and reconciliations to their nearest GAAP equivalents, see the definitions section and reconciliation section beginning on page 25 and page 8 of this report, respectively.

(2)	Represents the year over year percentage change in NOI and Cash NOI for the Same Property Portfolio. For comparability, NOI growth and Cash NOI growth for Q1’17 has been restated to remove the results of 2535 Midway Drive, which was sold during Q2’17. See page 22 for a list of dispositions completed during 2017.

(3)

Includes the following number of OP Units held by noncontrolling interests: 1,932,816 (Jun 30, 2017), 1,948,144 (Mar 31, 2017), 1,966,996 (Dec 31, 2016), 1,978,842 (Sep 30, 2016) and 1,999,563 (Jun 30, 2016). Excludes the following number of shares of unvested restricted stock: 312,379 (Jun 30, 2017), 333,128 (Mar 31, 2017), 287,827 (Dec 31, 2016), 322,837 (Sep 30, 2016) and 356,249 (Jun 30, 2016). Current period excludes 241,691 unvested LTIP units and 514,998 unvested performance units granted during Q4-15 and Q4-16.

	Second Quarter 2017 Supplemental Financial Reporting Package	Page 4

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Consolidated Balance Sheets.
		(unaudited and in thousands)

	June 30, 2017				March 31, 2017				December 31, 2016				September 30, 2016				June 30, 2016
Assets
Land	$	763,622			$	692,731			$	683,919			$	659,641			$	605,694
Buildings and improvements	923,760				816,912				811,614				778,066				745,968
Tenant improvements	43,717				39,595				38,644				36,687				33,873
Furniture, fixtures, and equipment	167				167				174				175				175
Construction in progress	25,792				21,792				17,778				23,300				23,714
Total real estate held for investment	1,757,058				1,571,197				1,552,129				1,497,869				1,409,424
Accumulated depreciation	(153,163		)		(143,199		)		(135,140		)		(126,601		)		(117,590		)
Investments in real estate, net	1,603,895				1,427,998				1,416,989				1,371,268				1,291,834
Cash and cash equivalents	13,118				11,676				15,525				55,263				29,177
Restricted cash	—				6,537				—				—				17,979
Notes receivable	—				6,090				5,934				5,817				—
Rents and other receivables, net	2,644				2,921				2,749				2,633				3,010
Deferred rent receivable	13,628				12,793				11,873				10,913				9,585
Deferred leasing costs, net	9,448				9,279				8,672				8,064				6,531
Deferred loan costs, net	2,239				2,352				847				996				1,146
Acquired lease intangible assets, net(1)	41,087				33,050				36,365				38,093				37,789
Indefinite-lived intangible	5,156				5,156				5,170				5,215				5,271
Interest rate swap asset	4,399				5,657				5,594				—				—
Other assets	7,388				5,944				5,290				5,522				5,589
Acquisition related deposits	2,250				500				—				400				400
Investment in unconsolidated real estate entities	—				—				—				—				4,203
Total Assets	$	1,705,252			$	1,529,953			$	1,515,008			$	1,504,184			$	1,412,514
Liabilities
Notes payable	$	561,530			$	509,693			$	500,184			$	500,428			$	500,608
Interest rate swap liability	1,094				1,356				2,045				5,938				7,551
Accounts payable and accrued expenses	14,298				18,005				13,585				18,433				10,877
Dividends and distributions payable	10,642				10,008				9,282				9,214				9,212
Acquired lease intangible liabilities, net(2)	10,785				8,653				9,130				5,722				4,346
Tenant security deposits	16,721				15,311				15,187				14,946				13,769
Prepaid rents	5,204				4,785				3,455				3,945				3,367
Total Liabilities	620,274				567,811				552,868				558,626				549,730
Equity
Preferred stock, net ($90,000 liquidation preference)	86,651				86,651				86,651				86,664				—
Common stock	708				664				662				658				657
Additional paid in capital	1,027,282				912,047				907,834				898,354				897,991
Cumulative distributions in excess of earnings	(56,992		)		(64,682		)		(59,277		)		(56,651		)		(50,733		)
Accumulated other comprehensive income (loss)	3,216				4,176				3,445				(5,764		)		(7,328		)
Total stockholders’ equity	1,060,865				938,856				939,315				923,261				840,587
Noncontrolling interests	24,113				23,286				22,825				22,297				22,197
Total Equity	1,084,978				962,142				962,140				945,558				862,784
Total Liabilities and Equity	$	1,705,252			$	1,529,953			$	1,515,008			$	1,504,184			$	1,412,514

(1)	Includes net above-market tenant lease intangibles of $5,640 (June 30, 2017), $5,420 (March 31, 2017), $5,779 (December 31, 2016), $6,204 (September 30, 2016) and $6,348 (June 30, 2016).

(2)	Includes net below-market tenant lease intangibles of $10,102 (June 30, 2017), $8,479 (March 31, 2017), 8,949 (December 31, 2016), $5,533 (September 30, 2016) and $4,149 (June 30, 2016).

	Second Quarter 2017 Supplemental Financial Reporting Package	Page 5

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Consolidated Statements of Operations.
Quarterly Results		(unaudited and in thousands, except share and per share data)

	Three Months Ended
	June 30, 2017				March 31, 2017				December 31, 2016				September 30, 2016				June 30, 2016
Revenues
Rental income	$	31,132			$	29,614			$	29,691			$	28,285			$	26,119
Tenant reimbursements	5,172				5,155				4,579				4,467				4,119
Other income	115				232				179				192				259
Total Rental Revenues	36,419				35,001				34,449				32,944				30,497
Management, leasing, and development services	145				126				97				131				111
Interest income	218				227				231				228				—
Total Revenues	36,782				35,354				34,777				33,303				30,608
Operating Expenses
Property expenses	9,536				9,222				9,139				8,978				7,959
General and administrative	5,123				5,086				4,225				5,067				4,521
Depreciation and amortization	14,515				13,599				14,242				13,341				12,610
Total Operating Expenses	29,174				27,907				27,606				27,386				25,090
Other Expenses
Acquisition expenses	20				385				365				380				635
Interest expense	4,302				3,998				4,074				3,804				3,716
Total Other Expenses	4,322				4,383				4,439				4,184				4,351
Total Expenses	33,496				32,290				32,045				31,570				29,441
Equity in income from unconsolidated real estate entities	—				11				—				1,328				62
Loss on extinguishment of debt	—				(22		)		—				—				—
Gains on sale of real estate	16,569				2,668				5,814				—				11,563
Net Income	19,855				5,721				8,546				3,061				12,792
Less: net income attributable to noncontrolling interest	(531		)		(132		)		(217		)		(63		)		(418		)
Net income attributable to Rexford Industrial Realty, Inc.	19,324				5,589				8,329				2,998				12,374
Less: preferred stock dividends	(1,322		)		(1,322		)		(1,322		)		(661		)		—
Less: earnings allocated to participating securities	(156		)		(91		)		(79		)		(70		)		(75		)
Net income attributable to common stockholders	$	17,846			$	4,176			$	6,928			$	2,267			$	12,299
Earnings per Common Share
Net income attributable to common stockholders per share - basic	$	0.26			$	0.06			$	0.11			$	0.03			$	0.19
Net income attributable to common stockholders per share - diluted	$	0.26			$	0.06			$	0.10			$	0.03			$	0.19
Weighted average shares outstanding - basic	67,920,773				66,341,138				65,785,226				65,707,476				64,063,337
Weighted average shares outstanding - diluted	68,331,234				66,626,239				66,079,935				67,985,177				64,304,713

	Second Quarter 2017 Supplemental Financial Reporting Package	Page 6

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Consolidated Statements of Operations.
Quarterly Results		(unaudited and in thousands)

	Three Months Ended June 30,								Six months ended June 30,
	2017				2016				2017				2016
Rental Revenues
Rental income	$	31,132			$	26,119			$	60,746			$	49,618
Tenant reimbursements	5,172				4,119				10,327				7,677
Other income	115				259				347				572
Total Rental Revenues	36,419				30,497				71,420				57,867
Management, leasing, and development services	145				111				271				245
Interest income	218				—				445				—
Total Revenues	36,782				30,608				72,136				58,112
Operating Expenses
Property expenses	9,536				7,959				18,758				15,502
General and administrative	5,123				4,521				10,209				8,123
Depreciation and amortization	14,515				12,610				28,114				23,824
Total Operating Expenses	29,174				25,090				57,081				47,449
Other Expenses
Acquisition expenses	20				635				405				1,110
Interest expense	4,302				3,716				8,300				6,970
Total Other Expenses	4,322				4,351				8,705				8,080
Total Expenses	33,496				29,441				65,786				55,529
Equity in income from unconsolidated real estate entities	—				62				11				123
Loss on extinguishment of debt	—				—				(22		)		—
Gains on sale of real estate	16,569				11,563				19,237				11,563
Net Income	19,855				12,792				25,576				14,269
Less: net income attributable to noncontrolling interest	(531		)		(418		)		(663		)		(470		)
Net income attributable to Rexford Industrial Realty, Inc.	19,324				12,374				24,913				13,799
Less: preferred stock dividends	(1,322		)		—				(2,644		)		—
Less: earnings allocated to participating securities	(156		)		(75		)		(247		)		(153		)
Net income attributable to common stockholders	$	17,846			$	12,299			$	22,022			$	13,646

	Second Quarter 2017 Supplemental Financial Reporting Package	Page 7

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Non-GAAP FFO and Core FFO Reconciliations. (1)
		(unaudited and in thousands, except share and per share data)

	Three Months Ended
	June 30, 2017				March 31, 2017				December 31, 2016				September 30, 2016				June 30, 2016
Net Income	$	19,855			$	5,721			$	8,546			$	3,061			$	12,792
Add:
Depreciation and amortization	14,515				13,599				14,242				13,341				12,610
Depreciation and amortization from unconsolidated joint ventures	—				—				—				—				5
Deduct:
Gains on sale of real estate	16,569				2,668				5,814				—				11,563
Gain on acquisition of unconsolidated joint venture property	—				11				—				1,332				—
Funds From Operations (FFO)	17,801				16,641				16,974				15,070				13,844
Less: preferred stock dividends	(1,322		)		(1,322		)		(1,322		)		(661		)		—
Less: FFO attributable to noncontrolling interests(2)	(468		)		(449		)		(457		)		(424		)		(421		)
Less: FFO attributable to participating securities(3)	(138		)		(137		)		(124		)		(111		)		(114		)
Company share of FFO	$	15,873			$	14,733			$	15,071			$	13,874			$	13,309
FFO per common share‐basic	$	0.23			$	0.22			$	0.23			$	0.21			$	0.21
FFO per common share‐diluted	$	0.23			$	0.22			$	0.23			$	0.21			$	0.21
FFO	$	17,801			$	16,641			$	16,974			$	15,070			$	13,844
Adjust:
Legal fee reimbursements(4)	—				—				(389		)		—				—
Acquisition expenses	20				385				365				380				635
Core FFO	17,821				17,026				16,950				15,450				14,479
Less: preferred stock dividends	(1,322		)		(1,322		)		(1,322		)		(661		)		—
Less: Core FFO attributable to noncontrolling interests(2)	(468		)		(460		)		(456		)		(435		)		(440		)
Less: Core FFO attributable to participating securities(3)	(138		)		(140		)		(124		)		(114		)		(119		)
Company share of Core FFO	$	15,893			$	15,104			$	15,048			$	14,240			$	13,920
Core FFO per common share‐basic	$	0.23			$	0.23			$	0.23			$	0.22			$	0.22
Core FFO per common share‐diluted	$	0.23			$	0.23			$	0.23			$	0.22			$	0.22
Weighted-average shares outstanding-basic	67,920,773				66,341,138				65,785,226				65,707,476				64,063,337
Weighted-average shares outstanding-diluted(5)	68,331,234				66,626,239				66,079,935				65,994,173				64,304,713

(1)	For a definition and discussion of non-GAAP financial measures, see the definitions section beginning on page 25 of this report.

(2)	Noncontrolling interests represent holders of outstanding common units of the Company’s operating partnership that are owned by unit holders other than us.

(3)	Participating securities include unvested shares of restricted stock, unvested LTIP units and unvested performance units.

(4)	Legal fee reimbursements relate to prior litigation of the Company. For more information, see Item 3. Legal Proceedings in our 2014 Annual Report on Form 10-K.

(5)	Weighted-average shares outstanding-diluted includes adjustments for unvested performance units and operating partnership units if their effect is dilutive for the reported period.

	Second Quarter 2017 Supplemental Financial Reporting Package	Page 8

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Non-GAAP AFFO Reconciliation. (1)
		(unaudited and in thousands, except share and per share data)

	Three Months Ended
	June 30, 2017				March 31, 2017				December 31, 2016				September 30, 2016				June 30, 2016
Funds From Operations(2)	$	17,801			$	16,641			$	16,974			$	15,070			$	13,844
Add:
Amortization of deferred financing costs	288				275				266				263				264
Net fair value lease revenue (expense)	(201		)		(117		)		(95		)		(39		)		60
Non-cash stock compensation	1,394				1,346				956				992				953
Straight line corporate office rent expense adjustment	(36		)		(36		)		(50		)		(12		)		(11		)
Loss on extinguishment of debt	—				22				—				—				—
Deduct:
Preferred stock dividends	1,322				1,322				1,322				661				—
Straight line rental revenue adjustment(3)	996				956				1,095				1,395				922
Capitalized payments(4)	1,021				976				726				833				735
Note payable premium amortization	36				58				60				60				59
Recurring capital expenditures(5)	857				390				667				691				848
2nd generation tenant improvements and leasing commissions(6)	1,621				1,545				1,311				1,988				1,483
Unconsolidated joint venture AFFO adjustments	—				—				—				2				9
Adjusted Funds From Operations (AFFO)	$	13,393			$	12,884			$	12,870			$	10,644			$	11,054

(1)	For a definition and discussion of non-GAAP financial measures, see the definitions section beginning on page 25 of this report.

(2)	A reconciliation of net income to Funds From Operations is set forth on page 8 of this report.

(3)	The straight line rental revenue adjustment includes concessions of $851, $612, $873, $1,072, and $767 for the three months ended June 30, 2017, March 31, 2017, December 31, 2016, September 30, 2016 and June 30, 2016, respectively.

(4)	Includes capitalized interest, and leasing and construction development compensation.

(5)	Excludes nonrecurring capital expenditures of $8,282, $5,388, $4,494, $7,030, and $5,430 for the three months ended June 30, 2017, March 31, 2017, December 31, 2016, September 30, 2016 and June 30, 2016, respectively.

(6)	Excludes 1st generation tenant improvements/space preparation and leasing commissions of $375, $569, $636, $1,407 and $1,064 for the three months ended June 30, 2017, March 31, 2017, December 31, 2016, September 30, 2016 and June 30, 2016, respectively.

	Second Quarter 2017 Supplemental Financial Reporting Package	Page 9

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Statement of Operations Reconciliations - NOI, Cash NOI, EBITDA and Adjusted EBITDA. (1)
		(unaudited and in thousands)

NOI and Cash NOI
	Three Months Ended
	June 30, 2017				March 31, 2017				December 31, 2016				September 30, 2016				June 30, 2016
Rental income	$	31,132			$	29,614			$	29,691			$	28,285			$	26,119
Tenant reimbursements	5,172				5,155				4,579				4,467				4,119
Other income	115				232				179				192				259
Total Rental Revenues	36,419				35,001				34,449				32,944				30,497
Property Expenses	9,536				9,222				9,139				8,978				7,959
Net Operating Income (NOI)	$	26,883			$	25,779			$	25,310			$	23,966			$	22,538
Net fair value lease revenue (expense)	(201		)		(117		)		(95		)		(39		)		60
Straight line rental revenue adjustment	(996		)		(956		)		(1,095		)		(1,395		)		(922		)
Cash NOI	$	25,686			$	24,706			$	24,120			$	22,532			$	21,676

EBITDA and Adjusted EBITDA
	Three Months Ended
	June 30, 2017				March 31, 2017				December 31, 2016				September 30, 2016				June 30, 2016
Net income	$	19,855			$	5,721			$	8,546			$	3,061			$	12,792
Interest expense	4,302				3,998				4,074				3,804				3,716
Depreciation and amortization	14,515				13,599				14,242				13,341				12,610
Proportionate share of real estate related depreciation and amortization from unconsolidated joint ventures	—				—				—				—				5
EBITDA	$	38,672			$	23,318			$	26,862			$	20,206			$	29,123
Stock-based compensation amortization	1,394				1,346				956				992				953
Gains on sale of real estate	(16,569		)		(2,668		)		(5,814		)		—				(11,563		)
Gain on sale of real estate from unconsolidated joint ventures	—				(11		)		—				(1,332		)		—
Loss on extinguishment of debt	—				22				—				—				—
Legal fee reimbursements(2)	—				—				(389		)		—				—
Acquisition expenses	20				385				365				380				635
Pro forma effect of acquisitions(3)	2,000				(15		)		521				376				567
Pro forma effect of dispositions(4)	(157		)		(85		)		(113		)		—				(36		)
Adjusted EBITDA	$	25,360			$	22,292			$	22,388			$	20,622			$	19,679

(1)	For a definition and discussion of non-GAAP financial measures, see the definitions section beginning on page 25 of this report.

(2)	Legal fee reimbursements relate to prior litigation of the Company. For more information, see Item 3. Legal Proceedings in our 2014 Annual Report on Form 10-K.

(3)

Represents the estimated impact on Q2’17 EBITDA of Q2’17 acquisitions as if they had been acquired April 1, 2017, the impact on Q1’17 EBITDA of Q1’17 acquisitions as if they had been acquired January 1, 2017, the impact on Q4’16 EBITDA of Q4’16 acquisitions as if they had been acquired October 1, 2016, the impact on Q3’16 EBITDA of Q3’16 acquisitions as if they had been acquired July 1, 2016 and the impact on Q2’16 EBITDA of Q2’16 acquisitions as if they had been acquired April 1, 2016. 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 impact on Q2’17 EBITDA of Q2’17 dispositions as if they had been sold as of April 1, 2017, the impact on Q1’17 EBITDA of Q1’17 dispositions as if they had been sold as of January 1, 2017, the impact on Q4’16 EBITDA of Q4’16 dispositions as if they had been sold as of October 1, 2016, and the impact on Q2’16 EBITDA of Q2’16 dispositions as if they had been sold as of April 1, 2016. See page 22 for a detail of current year disposition properties.

	Second Quarter 2017 Supplemental Financial Reporting Package	Page 10

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Same Property Portfolio Performance. (1)
		(unaudited and dollars in thousands)

Same Property Portfolio NOI and Cash NOI:
	Three Months Ended June 30,														Six months ended June 30,
	2017				2016				$ Change				% Change		2017				2016				$ Change				% Change
Rental income	$	24,551			$	22,647			$	1,904			8.4%		$	48,527			$	45,183			$	3,344			7.4%
Tenant reimbursements	3,752				3,368				384				11.4%		7,702				6,886				816				11.9%
Other income	93				241				(148		)		(61.4)%		302				420				(118		)		(28.1)%
Total rental revenues	28,396				26,256				2,140				8.2%		56,531				52,489				4,042				7.7%
Property expenses	7,640				6,778				862				12.7%		15,136				13,957				1,179				8.4%
Same property portfolio NOI	$	20,756			$	19,478			$	1,278			6.6%	(2)	$	41,395			$	38,532			$	2,863			7.4%	(2)
Straight-line rents	(738		)		(436		)		(302)				69.3%		(1,421		)		(1,290		)		(131		)		10.2%
Amort. above/below market leases	92				90				2				2.2%		173				83				90				108.4%
Same property portfolio Cash NOI	$	20,110			$	19,132			$	978			5.1%		$	40,147			$	37,325			$	2,822			7.6%

Same Property Portfolio Summary:
					Same Property Portfolio
Number of properties					114
Square Feet					11,211,536

Same Property Portfolio Occupancy:
	June 30, 2017				June 30, 2016				Change (basis points)
	Same Property Portfolio		Stabilized Same Property Portfolio(3)		Same Property Portfolio		Stabilized Same Property Portfolio(4)		Same Property Portfolio		Stabilized Same Property Portfolio
Occupancy:
Los Angeles County	93.8%		98.4%		89.7%		95.7%		410 bps		270 bps
Orange County	95.1%		96.2%		87.5%		98.9%		760 bps		(270) bps
San Bernardino County	89.7%		89.7%		97.3%		97.3%		(760) bps		(760) bps
San Diego County	95.3%		95.3%		97.0%		97.0%		(170) bps		(170) bps
Ventura County	91.5%		91.5%		91.8%		91.8%		(30) bps		(30) bps
Total/Weighted Average	93.5%		96.0%		91.5%		96.0%		200 bps		0 bps

(1)	For a definition and discussion of non-GAAP financial measures, see the definitions section beginning on page 25 of this report.

(2)	Excluding the three and six months operating results of properties under repositioning in 2016 and 2017, Same Property Portfolio NOI increased by approximately 4.0% and 4.7% during the three and six months ended June 30, 2017 compared to the three and six months ended June 30, 2016, respectively.

(3)	Reflects the occupancy of our Same Property Portfolio as of June 30, 2017, adjusted for space aggregating 298,442 rentable square feet at four of our properties that were classified as repositioning or lease-up as of June 30, 2017. For additional details, refer to pages 20-21 of this report.

(4)	Reflects the occupancy of our Same Property Portfolio as of June 30, 2016, adjusted for space aggregating 531,964 rentable square feet at six of our properties that were classified as repositioning or lease-up as of June 30, 2016.

	Second Quarter 2017 Supplemental Financial Reporting Package	Page 11

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Capitalization Summary.
		(unaudited and in thousands, except share and per share data)
Capitalization as of June 30, 2017

Description		June 30, 2017				March 31, 2017				December 31, 2016				September 30, 2016				June 30, 2016
Common shares outstanding(1)		70,810,523				66,375,624				66,166,548				65,725,504				65,679,483
Operating partnership units outstanding(2)		1,974,484				1,989,812				2,008,664				1,978,842				1,999,563
Total shares and units outstanding at period end		72,785,007				68,365,436				68,175,212				67,704,346				67,679,046
Share price at end of quarter		$	27.44			$	22.52			$	23.19			$	22.89			$	21.09
Common Stock and Operating Partnership Units - Capitalization		$	1,997,221			$	1,539,590			$	1,580,983			$	1,549,752			$	1,427,351
5.875% Series A Cumulative Redeemable Preferred Stock(3)		90,000				90,000				90,000				90,000				—
Total Equity Market Capitalization		$	2,087,221			$	1,629,590			$	1,670,983			$	1,639,752			$	1,427,351
Total Debt		$	564,242			$	512,504			$	502,476			$	502,776			$	503,009
Less: Cash and cash equivalents		(13,118		)		(11,676		)		(15,525		)		(55,263		)		(29,177		)
Net Debt		$	551,124			$	500,828			$	486,951			$	447,513			$	473,832
Total Combined Market Capitalization (Net Debt plus Equity)		$	2,638,345			$	2,130,418			$	2,157,934			$	2,087,265			$	1,901,183
Net debt to total combined market capitalization		20.9		%		23.5		%		22.6		%		21.4		%		24.9		%
Net debt to Adjusted EBITDA (quarterly results annualized)(4)		5.4x				5.6x				5.4x				5.4x				6.0x

(1)	Excludes the following number of shares of unvested restricted stock: 312,379 (Jun 30, 2017), 333,128 (Mar 31, 2017), 287,827 (Dec 31, 2016), 322,837 (Sep 30, 2016) and 356,249 (Jun 30, 2016).

(2)	Represents outstanding common units of the Company’s operating partnership, Rexford Industrial Realty, LP, that are owned by unit holders other than Rexford Industrial Realty, Inc. Represents the noncontrolling interest in our operating partnership. Includes 41,668 vested LTIP Units and excludes 241,691 unvested LTIP Units and 514,998 unvested performance units.

(3)	Value based on 3,600,000 outstanding shares of preferred stock at a liquidation preference of $25.00 per share.

(4)	For a definition and discussion of non-GAAP financial measures, see the definitions section beginning on page 25 of this report.

	Second Quarter 2017 Supplemental Financial Reporting Package	Page 12

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Debt Summary.
		(unaudited and dollars in thousands)
Debt Detail:
As of June 30, 2017

Debt Description		Maturity Date		Stated Interest Rate		Effective Interest Rate(1)		Principal Balance		Maturity Date of Effective Swaps
Secured Debt:
$60M Term Loan		8/1/2019(2)		LIBOR + 1.90%		3.817%		$59,282		2/15/2019
Gilbert/La Palma		3/1/2031		5.125%		5.125%		2,839		--
12907 Imperial Highway		4/1/2018		5.95%		5.950%		5,121		--
Unsecured Debt:
$100M Term Loan Facility		2/14/2022		LIBOR +1.20%(4)		3.098%		100,000		12/14/2018
$350M Revolving Credit Facility(5)		2/12/2021(3)		LIBOR +1.10%(4)		2.324%		72,000		--
$225M Term Loan Facility(6)		1/14/2023		LIBOR +1.50%(4)		2.724%		225,000		--
$100M Senior Notes		8/6/2025		4.29%		4.290%		100,000		--
Total Consolidated:						3.173%		$564,242

(1)	Includes the effect of interest rate swaps effective as of June 30, 2017, and excludes the effect of discounts/premiums, deferred loan costs and the facility fee.

(2)	One additional one-year extension is available, provided that certain conditions are satisfied.

(3)	Two additional six-month extensions are available, provided that certain conditions are satisfied.

(4)

The applicable LIBOR margin will range from 1.10% to 1.50% for the revolving credit facility, 1.20% to 1.70% for the $100M term loan facility and 1.50% to 2.25% for the $225M term loan facility depending on the ratio of our outstanding consolidated indebtedness to the value of our consolidated gross asset value, which is measured on a quarterly basis. As a result, the effective interest rate will fluctuate from period to period.

(5)	The credit facility is subject to a facility fee which is calculated as a percentage of the total commitment amount, regardless of usage. The facility fee ranges from 0.15% to 0.30% depending on the ratio of our outstanding consolidated indebtedness to the value of our consolidated gross asset value, which is measured on a quarterly basis.

(6)	We have two interest rate swaps that will effectively fix this $225M term loan as follows: (i) $125M at 1.349% + an applicable LIBOR margin from 2/14/18 to 1/14/22 and (ii) $100M at 1.406% + an applicable LIBOR margin from 8/14/18 to 1/14/22.

Debt Composition:
Category		Avg. Term Remaining (yrs)(1)		Stated Interest Rate		Effective Interest Rate		Balance		% of Total
Fixed(2)		5.4		3.78%		3.78%		$267,242		47%
Variable(2)		5.1		LIBOR + 1.40%		2.63%		$297,000		53%
Secured		2.5				4.03%		$67,242		12%
Unsecured		5.6				3.06%		$497,000		88%

(1)	The weighted average remaining term to maturity of our consolidated debt is 5.2 years.

(2)	If all of our interest rate swaps were effective as of June 30, 2017, our consolidated debt would be 87% fixed and 13% variable. See footnote (6) above.

Debt Maturity Schedule:
Year		Secured(1)				Unsecured				Total				% Total			Effective Interest Rate
2017		$	—			$	—			$	—			—	%		—	%
2018		5,121				—				5,121				1	%		5.950	%
2019		59,282				—				59,282				10	%		3.817	%
2020		—				—				—				—	%		—	%
2021		—				72,000				72,000				13	%		2.324	%
Thereafter		2,839				425,000				427,839				76	%		3.193	%
Total		$	67,242			$	497,000			$	564,242			100	%		3.173	%

(1)	Excludes the effect of scheduled monthly principal payments on amortizing loans.

	Second Quarter 2017 Supplemental Financial Reporting Package	Page 13

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Portfolio Overview.
at 6/30/17		(unaudited results)
Consolidated Portfolio:

				Rentable Square Feet									Occupancy %												Annualized Base Rent
Market		# Properties		Same Properties Portfolio			Non-Same Properties Portfolio			Total Portfolio			Same Properties Portfolio			Non-Same Properties Portfolio			Total Portfolio			Total Portfolio Excluding Repositioning(1)			Total (in 000’s)(2)				per SF
Central LA		4		387,310			—			387,310			100.0	%		—	%		100.0	%		100.0	%		$	4,121			$10.64
Greater San Fernando Valley		26		2,601,477			309,036			2,910,513			92.0	%		64.0	%		89.0	%		97.8	%		25,299				$9.76
Mid-Counties		10		672,090			198,062			870,152			99.3	%		100.0	%		99.4	%		99.4	%		7,991				$9.24
San Gabriel Valley		15		1,329,214			552,210			1,881,424			91.3	%		71.4	%		85.5	%		99.0	%		12,396				$7.71
South Bay		14		961,479			276,518			1,237,997			95.4	%		82.2	%		92.5	%		98.3	%		11,183				$9.77
Los Angeles County		69		5,951,570			1,335,826			7,287,396			93.8	%		76.2	%		90.5	%		98.5	%		60,990				$9.24
North Orange County		6		528,256			345,756			874,012			95.1	%		95.7	%		95.3	%		95.3	%		7,004				$8.41
OC Airport		7		511,692			116,575			628,267			92.1	%		100.0	%		93.5	%		95.8	%		5,867				$9.98
South Orange County		3		46,178			283,280			329,458			100.0	%		100.0	%		100.0	%		100.0	%		2,954				$8.97
West Orange County		4		285,777			243,274			529,051			100.0	%		55.6	%		79.6	%		100.0	%		3,220				$7.65
Orange County		20		1,371,903			988,885			2,360,788			95.1	%		87.6	%		92.0	%		97.0	%		19,045				$8.77
Inland Empire East		2		85,282			—			85,282			90.2	%		—	%		90.2	%		90.2	%		511				$6.65
Inland Empire West		14		1,108,197			1,781,176			2,889,373			89.6	%		99.0	%		95.4	%		95.4	%		19,543				$7.09
San Bernardino County		16		1,193,479			1,781,176			2,974,655			89.7	%		99.0	%		95.2	%		95.2	%		20,054				$7.08
Ventura		13		1,144,575			594,564			1,739,139			91.5	%		66.7	%		83.1	%		90.9	%		12,309				$8.52
Ventura County		13		1,144,575			594,564			1,739,139			91.5	%		66.7	%		83.1	%		90.9	%		12,309				$8.52
Central San Diego		13		889,050			254,919			1,143,969			94.5	%		97.3	%		95.2	%		95.2	%		12,445				$11.43
North County San Diego		7		584,258			54,740			638,998			96.5	%		100.0	%		96.8	%		96.8	%		6,103				$9.87
South County San Diego		1		76,701			—			76,701			95.1	%		—	%		95.1	%		95.1	%		676				$9.26
San Diego County		21		1,550,009			309,659			1,859,668			95.3	%		97.8	%		95.7	%		95.7	%		19,224				$10.80
CONSOLIDATED TOTAL / WTD AVG		139		11,211,536			5,010,110			16,221,646			93.5	%		86.7	%		91.4	%		96.5	%		$	131,622			$8.88

(1)	Excludes space aggregating 864,447 square feet at nine of our properties that were in various stages of repositioning or lease-up as of June 30, 2017. See pages 20-21 for additional details on these properties.

(2)	Calculated for each property as monthly contracted base rent per the terms of the lease(s) at such property, as of June 30, 2017, multiplied by 12 and then aggregated by market. Excludes billboard and antenna revenue and rent abatements.

	Second Quarter 2017 Supplemental Financial Reporting Package	Page 14

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Occupancy and Leasing Trends.
		(unaudited results, data represents consolidated portfolio only)
Occupancy by County:

		Jun 30, 2017		Mar 31, 2017		Dec 31, 2016		Sep 30, 2016		June 30, 2016
Occupancy:(1)
Los Angeles County		90.5%		89.8%		92.1%		91.2%		90.6%
Orange County		92.0%		92.7%		96.1%		92.3%		91.8%
San Bernardino County		95.2%		92.0%		96.4%		96.1%		97.9%
Ventura County		83.1%		88.1%		92.3%		86.2%		91.8%
San Diego County		95.7%		79.8%		81.0%		79.5%		79.9%
Total/Weighted Average		91.4%		88.9%		91.7%		89.7%		90.1%
Consolidated Portfolio SF		16,221,646		15,069,122		15,020,336		14,588,101		13,640,820

Leasing Activity:
		Three Months Ended
		Jun 30, 2017		Mar 31, 2017		Dec 31, 2016		Sep 30, 2016		June 30, 2016
Leasing Activity (SF):(2)
New leases(3)		310,950		423,766		401,081		519,212		476,858
Renewal leases(3)		469,766		439,602		363,601		318,179		598,301
Gross leasing		780,716		863,368		764,682		837,391		1,075,159
Expiring leases		663,128		914,098		477,966		619,461		936,655
Expiring leases - placed into repositioning		107,965		334,689		—		—		—
Net absorption		9,623		(385,419)		286,716		217,930		138,504
Retention rate(4)		71%		57%		76%		51%		64%

Weighted Average New / Renewal Leasing Spreads:
		Three Months Ended
		Jun 30, 2017		Mar 31, 2017		Dec 31, 2016		Sep 30, 2016		June 30, 2016
GAAP Rent Change		20.4%		23.3%		16.1%		15.6%		23.5%
Cash Rent Change		10.6%		13.7%		5.9%		7.0%		11.0%

(1)	See page 14 for the occupancy by County of our total consolidated portfolio excluding repositioning space.

(2)	Excludes month-to-month tenants.

(3)	Renewal leasing activity for Q1’17 excludes relocation/expansions within Rexford’s portfolio totaling 77,738 rentable square feet, which are included as part of new leasing activity.

(4)	Retention rate is calculated as renewal lease square footage plus relocation/expansion square footage noted in (3) above, divided by expiring lease square footage (excluding expiring lease square footage placed into repositioning).

	Second Quarter 2017 Supplemental Financial Reporting Package	Page 15

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Leasing Statistics.
		(unaudited results, data represents consolidated portfolio only)
Leasing Activity:

		# Leases Signed		SF of Leasing		Weighted Average Lease Term (Years)
Second Quarter 2017:
New		52		310,950		4.0
Renewal		87		469,766		3.5
Total/Weighted Average		139		780,716		3.7

Change in Annual Rental Rates for Current Quarter Leases:
		GAAP Rent								Cash Rent
Second Quarter 2017:		Current Lease		Prior Lease		Rent Change - GAAP		Weighted Average Abatement (Months)		Starting Cash Rent - Current Lease		Expiring Cash Rent - Prior Lease		Rent Change - Cash
New(1)		$9.51		$7.25		31.3%		1.2		$9.32		$7.51		24.2%
Renewal(2)		$10.61		$9.11		16.5%		0.7		$10.44		$9.86		5.9%
Total/Weighted Average		$10.27		$8.53		20.4%		0.9		$10.09		$9.12		10.6%

Uncommenced Leases by County:
Market		Leased SF		Uncommenced Leases Annualized Base Rent (in thousands)		Total Pro Forma Annualized Base Rent (in thousands)		Leased Percentage		Pro Forma Annualized Base Rent per SF
Los Angeles County		11,484		$121		$61,111		90.7%		$9.25
Orange County		1,800		23		19,068		92.0%		$8.77
San Bernardino County		88,613		633		20,687		98.2%		$7.08
San Diego County		6,689		114		19,338		96.1%		$10.82
Ventura County		—		—		12,309		83.1%		$8.52
Total/Weighted Average		108,586		$891		$132,513		92.1%		$8.87

(1)

GAAP and cash rent statistics for new leases exclude 15 leases aggregating 105,430 rentable square feet for which there was no comparable lease data. Of these 15 excluded leases, one lease with 18,033 rentable square feet relates to a recently completed repositioning project. Comparable leases generally exclude: (i) space that has never been occupied under our ownership, (ii) repositioned/redeveloped space, (iii) space that has been vacant for over one year, (iv) space with different lease structures (for example a change from a gross lease to a modified gross lease or an increase or decrease in the leased square footage) or (v) lease terms shorter than six months.

(2)	GAAP and cash rent statistics for renewal leases exclude 3 leases aggregating 16,499 rentable square feet for which there was no comparable lease data, due to either (i) space with different lease structures or (ii) lease terms shorter than six months.

	Second Quarter 2017 Supplemental Financial Reporting Package	Page 16

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Leasing Statistics (Continued).
		(unaudited results, data represents consolidated portfolio only)
Lease Expiration Schedule for Leases in Place as of June 30, 2017:

Year of Lease Expiration		# of Leases Expiring		Total Rentable SF		Annualized Base Rent (in thousands)				Annualized Base Rent per SF
Available		—		588,757		$	—			$—
Current Repositioning(1)		—		698,457		—				$—
MTM Tenants		99		351,183		2,794				$7.95
2017		186		1,419,038		12,602				$8.88
2018		352		2,252,875		20,559				$9.13
2019		276		2,296,725		20,587				$8.96
2020		202		2,374,376		21,079				$8.88
2021		103		2,592,387		22,371				$8.63
2022		63		1,313,605		10,148				$7.73
2023		15		488,229		5,225				$10.70
2024		11		695,500		6,421				$9.23
2025		3		133,671		1,563				$11.69
2026		7		338,904		3,857				$11.38
Thereafter		7		677,939		5,307				$7.83
Total Portfolio		1,324		16,221,646		$	132,513			$8.87

(1)	Represents space at seven of our properties that were classified as current repositioning as of June 30, 2017. Excludes completed repositioning properties and properties in lease-up. See pages 20-21 for additional details on these properties.

	Second Quarter 2017 Supplemental Financial Reporting Package	Page 17

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Top Tenants and Lease Segmentation.
		(unaudited results, data represents consolidated portfolio only)
Top 10 Tenants:

Tenant		Submarket		Leased SF		% of Total Annualized Base Rent		Annualized Base Rent per SF		Lease Expiration
32 Cold, LLC		Central LA		149,157		1.6%		$14.21		3/31/2026(1)
Cosmetic Laboratories of America, LLC		Greater San Fernando Valley		319,348		1.4%		$5.95		6/30/2020
Triscenic Production Services, Inc.		Greater San Fernando Valley		255,303		1.4%		$7.44		3/31/2022(2)
Universal Technical Institute of Southern California, LLC		South Bay		142,593		1.4%		$12.90		8/31/2030
Dendreon Corporation		West Orange County		170,865		1.1%		$8.24		12/31/2019
Triumph Processing, Inc.		South Bay		164,662		1.1%		$8.47		5/31/2030
Elliott Auto Supply Co., Inc.		North Orange County		228,379		1.0%		$5.95		12/31/2021(3)
Heritage Bag Company		Inland Empire West		284,676		0.9%		$4.34		11/27/2030
Senior Operations, Inc.		Greater San Fernando Valley		130,800		0.9%		$9.41		11/30/2024
Cox Communications California, LLC		South Orange County		102,299		0.9%		$11.49		9/30/2021
Top 10 Total / Weighted Average				1,948,082		11.7%		$7.99

(1)	Includes (i) 78,280 rentable square feet expiring September 30, 2025, and (ii) 70,877 rentable square feet expiring March 31, 2026.

(2)	Includes (i) 38,766 rentable square feet expiring November 30, 2019, (ii) 147,318 rentable square feet expiring September 30, 2021, and (iii) 69,219 rentable square feet expiring March 31, 2022.

(3)	Includes (i) 28,217 rentable square feet expiring October 31, 2021, and (ii) 200,162 rentable square feet expiring December 31, 2021.

Lease Segmentation by Size:
Square Feet		Number of Leases		Leased Rentable SF		Rentable SF		Leased %		Leased % Excluding Repositioning		Annualized Base Rent (in thousands)				% of Total Annualized Base Rent		Annualized Base Rent per SF
<4,999		813		1,708,063		1,827,353		93.5%		93.9%		$	19,510			14.7%		$11.42
5,000 - 9,999		182		1,267,097		1,375,810		92.1%		95.8%		13,012				9.8%		$10.27
10,000 - 24,999		207		3,310,999		3,668,592		90.3%		94.8%		30,596				23.1%		$9.24
25,000 - 49,999		57		2,043,674		2,158,494		94.7%		96.6%		19,166				14.5%		$9.38
>50,000		65		6,604,599		7,191,397		91.8%		100.0%		50,229				37.9%		$7.61
Total / Weighted Average		1,324		14,934,432		16,221,646		92.1%		97.2%		$	132,513			100.0%		$8.87

	Second Quarter 2017 Supplemental Financial Reporting Package	Page 18

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Capital Expenditure Summary.
(unaudited results, in thousands, except square feet and per square foot data)
Six months ended June 30, 2017

									Year to Date
	Q2-2017				Q1-2017				Total				SF(1)			PSF
Tenant Improvements and Space Preparation:
New Leases‐1st Generation	$	272			$	453			$	725			339,843			$	2.13
New Leases‐2nd Generation	$	640			$	483			$	1,123			518,385			$	2.17
Renewals	$	404			$	65			$	469			319,135			$	1.47
Leasing Commissions & Lease Costs:
New Leases‐1st Generation	$	103			$	116			$	219			78,909			$	2.78
New Leases‐2nd Generation	$	448			$	835			$	1,283			544,599			$	2.36
Renewals	$	129			$	162			$	291			310,374			$	0.94
Total Recurring Capex:
Recurring Capex	$	857			$	390			$	1,247			15,281,893			$	0.08
Recurring Capex % of NOI	3.2		%		1.5		%		4.6		%
Recurring Capex % of Operating Revenue	2.4		%		1.1		%		3.4		%
Nonrecurring Capex	$	8,282			$	5,388			$	13,670			9,142,696			$	1.50

(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 recurring capex, reflects the weighted average square footage of our consolidated portfolio for the period. For nonrecurring capex, reflects the aggregate square footage of the properties in which we incurred such capital expenditures.

	Second Quarter 2017 Supplemental Financial Reporting Package	Page 19

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Properties and Space Under Repositioning. (1)
As of June 30, 2017		(unaudited results, in thousands, except square feet)

										Estimated Construction Period
Property (Submarket)		Total Property Rentable Square Feet		Space Under Repositioning/ Lease-Up		Total Property Leased % 6/30/17		Same Property Portfolio		Start		Target Completion		Est. Period until Stabilized (months)(2)		Purchase Price				Projected Repositioning Costs				Projected Total Investment(3)				Cumulative Investment to Date(4)				Actual Quarterly Cash NOI 2Q-2017(5)				Est. Annual Stabilized Cash NOI(6)
CURRENT REPOSITIONING:
14750 Nelson (San Gabriel Valley)		147,360		147,360	(7)	0%		N		3Q-2016		1Q-2018		14 - 20		$	15,000			$	12,103			$	27,103			$	15,321			$	(24	)		$	1,774
301-445 Figueroa Street (South Bay)(8)		133,925		49,346		63%		N		4Q-2016		3Q-2017		9 - 12		$	13,000			$	3,872			$	16,872			$	13,604			$	86			$	1,128
3880 Valley Blvd. (San Gabriel Valley)		108,703		108,703		0%		Y		1Q-2017		3Q-2017		6 - 9		$	9,631			$	3,082			$	12,713			$	11,565			$	(24	)		$	813
12131 Western Avenue (West OC)		207,953		107,953		48%		N		1Q-2017		3Q-2017		6 - 12		$	27,000			$	3,515			$	30,515			$	29,242			$	75			$	1,758
28903 Avenue Paine - Repositioning		111,346		111,346		0%				1Q-2017		1Q-2018		8 - 11		$	17,060			$	2,631			$	19,691			$	17,319			$	(56	)		$	849
28903 Avenue Paine - Development		—		—		0%				1Q-2017		4Q-2018		21 - 24		$	—			$	9,275			$	9,275			$	2			$	—			$	966
28903 Avenue Paine (SF Valley)		111,346		111,346	(9)	0%		N		1Q-2017		4Q-2018		8 - 24		$	17,060			$	11,906			$	28,966			$	17,321			$	(56	)		$	1,815
TOTAL/WEIGHTED AVERAGE		709,287		524,708		26%										$	81,691			$	34,478			$	116,169			$	87,053			$	57		(10)	$	7,288
LEASE-UP:
1601 Alton Pkwy. (OC Airport)		124,273		15,159		88%		Y		4Q-2014		3Q-2017		3 - 6		$	13,276			$	6,187			$	19,463			$	19,213			$	209			$	1,330
9401 De Soto Avenue (SF Valley)		150,831		150,831		0%		Y		2Q-2015		1Q-2016		0 - 7		$	14,075			$	2,917			$	16,992			$	16,771			$	(97	)		$	1,165
TOTAL/WEIGHTED AVERAGE		275,104		165,990		40%										$	27,351			$	9,104			$	36,455			$	35,984			$	112		(10)	$	2,495
FUTURE REPOSITIONING:
9615 Norwalk Blvd. (Mid-Counties) (11)		38,362		—		100%		Y		1Q-2018		1Q-2019		TBD		$	9,642			$	14,803			$	24,445			$	10,011			$	193			$	1,556
COMPLETED AND LEASED-UP:
679-691 S. Anderson St. (Central LA)		47,490		—		100%		Y		N/A		N/A		--		$	6,490			$	635			$	7,125			$	7,125			$	60			$	449

(1)	See page 27 for a definition of Properties and Space Under Repositioning.

(2)	Represents the estimated remaining number of months, as of June 30, 2017, for the property to reach stabilization. Includes time to complete construction and lease-up the property. Actual number of months required to reach stabilization may vary materially from our estimates.

(3)	Projected total investment includes the purchase price of the property and an estimate of total expected nonrecurring capital expenditures to be incurred on each repositioning project to reach completion.

(4)	Cumulative investment-to-date includes the purchase price of the property and subsequent costs incurred for nonrecurring capital expenditures.

(5)	Represents the actual cash NOI for each property for the three months ended June 30, 2017. For a definition and discussion of non-GAAP financial measures, see the definitions section beginning on page 25 of this report.

(6)

Represents management’s estimate of each property’s cash NOI upon stabilization. Actual results may vary materially from our estimates. The Company does not provide a reconciliation to net income on a consolidated basis, because it is unable to provide a meaningful or accurate estimation of reconciling items due to the inherent difficulty of forecasting the timing and/or amount of various items that would impact net income.

(7)	Represents the RSF of the existing acquired building. Upon completion, the property will be approximately 200,000 RSF, which reflects an increase in RSF due to the construction of two additional buildings on the excess land.

(8)

The property located at 301-445 Figueroa has 14 units, all of which will be repositioned in various phases, beginning with the four units aggregating 49,346 RSF that are currently vacant. The estimated construction and stabilization periods presented above reflect the completion of these four units as well as planned exterior work. The projected total investment and estimated annual stabilized Cash NOI presented above reflect the repositioning of all 14 units and exterior work.

(9)	Represents the RSF of the existing acquired building. Upon completion, the property will be approximately 224,000 RSF, which reflects an increase in RSF due to the construction of one additional building on the excess land.

(10)

Actual NOI for the three months ended June 30, 2017, reflects the capitalization of $241 thousand of real estate property taxes and insurance for current repositioning and $5 thousand for lease-up properties, respectively. We will continue to capitalize real estate property taxes and insurance during the period in which construction is taking place to get each repositioning property ready for its intended use.

(11)	9615 Norwalk includes 10.26 acres of partially paved storage yard/industrial land that is currently under a MTM lease and generating $85 thousand per month in short term base rent. The current projected total investment and estimated stabilized cash NOI reflects the construction and lease-up of a new approximately 200,000 RSF building.

	Second Quarter 2017 Supplemental Financial Reporting Package	Page 20

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Properties and Space Under Repositioning (Continued). (1)
As of June 30, 2017		(unaudited results, in thousands, except square feet)

Repositioning Space
								Estimated Construction Period
Property (Submarket)		Property Rentable Square Feet		Space Under Repositioning/Lease-Up		Same Property Portfolio		Start		Target Completion		Est. Period until Stabilized (months)(2)		Projected Total Investment(3)				Repositioning Costs Incurred to Date				Total Property Leased % 6/30/17		Actual Quarterly Cash NOI 2Q-2017(4)				Estimated Annual Stabilized Cash NOI(5)
CURRENT REPOSITIONING:
228th Street (South Bay)(6)		89,236		23,749		Y		1Q-2016		4Q-2017		1 - 5		$	2,038			$	1,205			66%		$	(3	)		$	231
3233 Mission Oaks Blvd. (Ventura)(7):
Unit 3233-H		455,864		42,035		N		1Q-2017		3Q-2017		5 - 8		$	947			$	320			57%		$	(4	)		$	249
Unit 3233		455,864		107,965		N		2Q-2017		2Q-2018		18 - 24		$	5,414			$	280			57%		$	138			$	852
TOTAL				173,749										$	8,399			$	1,805					$	131		(8)	$	1,332
COMPLETED AND LEASED-UP:
18118 - 18120 S. Broadway St. (South Bay)		78,183		—		Y		N/A		N/A		--		$	411			$	280			100%		$	(4	)	(8)	$	138
Completed and Leased Repositionings: Properties and Space
Property (Submarket)				Rentable Square Feet								Stabilized Period												Stabilized Yield
7110 Rosecrans Ave. (South Bay)				73,439								2Q-2015												7.9%
7900 Nelson Rd. (SF Valley)				202,905								4Q-2015												6.6%
605 8th Street (SF Valley)				55,715								4Q-2015												6.8%
24105 Frampton Ave. (South Bay)				49,841								3Q-2016												7.0%
12247 Lakeland Rd. (Mid-Counties)				24,875								3Q-2016												6.4%
2610 & 2701 S. Birch St. (OC Airport)				98,230								4Q-2016												7.1%
15140 & 15148 Bledsoe St. (SF Valley)				72,000								4Q-2016												N/A(9)
679-691 S. Anderson St. (Central LA)				47,490								2Q-2017												6.3%
18118 - 18120 S. Broadway St. (South Bay)				18,033								2Q-2017												N/A(9)
TOTAL/WEIGHTED AVERAGE				642,528																				6.8%

(1)	See page 27 for a definition of Properties and Space Under Repositioning.

(2)	Represents the estimated remaining number of months, as of June 30, 2017, for the space to reach stabilization. Includes time to complete construction and lease-up the space. Actual number of months required to reach stabilization may vary materially from our estimates.

(3)	Projected total investment represents the estimated nonrecurring capital expenditures to be incurred on each repositioning project to reach completion.

(4)	Represents the actual cash NOI of repositioning space for the three months ended June 30, 2017. For a definition and discussion of non-GAAP financial measures, see the definitions section beginning on page 25 of this report.

(5)	Based on current management estimates. Actual results may vary materially from our estimates. The Company does not provide a reconciliation to net income on a consolidated basis, because it is unable to provide a meaningful or accurate estimation of reconciling items due to the inherent difficulty of forecasting the timing and/or amount of various items that would impact net income.

(6)	The property located at 228th Street includes eight buildings, of which three buildings aggregating 23,749 RSF are under repositioning as of June 30, 2017. The amounts presented on this page represent the actual and projected construction costs and the actual and estimated stabilized cash NOI of only these three buildings.

(7)	As of June 30, 2017, we are repositioning two spaces aggregating 150,000 RSF at 3233 Mission Oaks. The amounts presented on this page represent the actual and projected construction costs and the actual and estimated stabilized cash NOI of only these two spaces.

(8)	Actual NOI for the three months ended June 30, 2017, reflects the capitalization of $19 thousand of real estate property taxes and insurance for repositioning space. We will continue to capitalize real estate property taxes and insurance during the period in which construction is taking place to get each repositioning space ready for its intended use.

(9)	We are unable to provide a meaningful stabilized yield for these completed projects as these were partial repositionings of larger properties.

	Second Quarter 2017 Supplemental Financial Reporting Package	Page 21

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Current Year Acquisitions and Dispositions Summary.
As of June 30, 2017		(unaudited results, data represents consolidated portfolio only)

2017 Acquisitions
Acquisition Date		Property Address		County		Submarket		Rentable Square Feet		Acquisition Price ($ in MM)		Occ. % at Acquisition		Occ.% at June 30, 2017
2/17/2017		28903 Avenue Paine		Los Angeles		Greater San Fernando Valley		111,346		$17.06		—%		—%
4/28/2017		2390 Ward Avenue		Ventura		Ventura		138,700		$16.50		100%		100%
5/24/2017		Safari Business Center		San Bernardino		Inland Empire West		1,138,090		$141.20		97%		98%
6/14/2017		4175 Conant Street		Los Angeles		South Bay		142,593		$30.60		100%		100%
6/15/2017		5421 Argosy Avenue		Orange County		Orange County West		35,321		$5.30		100%		100%
6/30/2017		14820-14830 Carmenita Road		Los Angeles		Mid-Counties		198,062		$30.65		100%		100%
								1,764,112		$241.31

2017 Dispositions

Disposition Date

Property Address

County

Submarket

Rentable Square Feet

Sale Price ($ in MM)

Reason for Selling

3/31/2017

9375 Archibald Avenue

San Bernardino

Inland Empire West

62,677

$6.88

Investor Sale

5/17/2017

2535 Midway Drive

San Diego

Central San Diego

373,744

$40.05

Opportunistic Sale

6/28/2017

2811 Harbor Boulevard

Orange County

Airport

126,796

$18.70

Tenant Exercise of Purchase Option

563,217

$65.63

	Second Quarter 2017 Supplemental Financial Reporting Package	Page 22

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Guidance.

2017 OUTLOOK

METRIC	2017 GUIDANCE / ASSUMPTIONS
Core FFO (1)	$0.93 to $0.96 per share (2)
Same Property Portfolio NOI Growth	6.0% to 8.0% (3)
Year-End 2017 Same Property Portfolio Occupancy (4)	94.0% to 96.0% (5)
Year-End 2017 Stabilized Same Property Portfolio Occupancy (4)	96.0% to 98.0% (5)
General and Administrative Expenses	$20.0 million to $20.5 million (6)

(1)	Our Core FFO guidance refers to the Company's in-place portfolio as of August 1, 2017, and does not include any assumptions for acquisitions, dispositions or balance sheet activities that may or may not occur later during the year.

(2)

The Company does not provide a reconciliation for its guidance range of Core FFO per diluted share to net income attributable to common stockholders per diluted share, the most directly comparable forward-looking GAAP financial measure, because it is impractical to provide a meaningful or accurate estimation of reconciling items and the information is not available without unreasonable effort. This is due to the inherent difficulty of forecasting the timing and/or amount of various items that would impact net income available to common stockholders per diluted share, including, for example, acquisition costs, gains on sales of depreciable real estate and other items that have not yet occurred and are out of the Company’s control. For the same reasons, the Company is unable to address the probable significance of the unavailable information and believes that providing a reconciliation for its guidance range of Core FFO per diluted share would imply a degree of precision as to its forward-looking net income available to common stockholders per diluted share that would be confusing or misleading to investors.

(3)	Our 2017 guidance for Same Property Portfolio NOI growth includes an estimated $2.0 million impact on NOI from the completion and lease-up of the 2017 Same Property Portfolio repositioning properties identified on pages 20-21.

(4)

Our 2017 Same Property Portfolio is a subset of our consolidated portfolio and consists of 114 properties aggregating 11,211,536 rentable square feet that were wholly-owned by us as of January 1, 2016, and still owned by us as of June 30, 2017. Our 2017 Stabilized Same Property Portfolio represents the properties included in our Same Property Portfolio, adjusted to exclude space at four of our properties aggregating 298,442 rentable square feet that will be in various stages of repositioning (current and future) and lease-up in connection with completed repositioning during 2017. See pages 20-21 for additional details on these four properties.

(5)	As of December 31, 2016, the occupancy of our 2017 Same Property Portfolio was 94.9% and the occupancy of our 2017 Stabilized Same Property Portfolio was 96.9%.

(6)	Our general and administrative expense guidance includes estimated non-cash equity compensation expense of $5.1 million.

	Second Quarter 2017 Supplemental Financial Reporting Package	Page 23

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Net Asset Value Components.
At 6/30/2017		(unaudited and in thousands, except share data)

Net Operating Income
Pro Forma Net Operating Income (NOI)(1)	Three Months Ended June 30, 2017
Total operating revenues	$36,419
Property operating expenses	(9,536)
Pro forma effect of uncommenced leases(2)	209
Pro forma effect of acquisitions(3)	2,000
Pro forma effect of dispositions(4)	(157)
Pro forma NOI effect of properties and space under repositioning(5)	2,765
Pro Forma NOI	31,700
Fair value lease revenue	(201)
Straight line rental revenue adjustment	(996)
Pro Forma Cash NOI	$30,503
Balance Sheet Items
Other assets and liabilities	June 30, 2017
Cash and cash equivalents	$13,118
Rents and other receivables, net	2,644
Other assets	7,388
Acquisition related deposits	2,250
Accounts payable, accrued expenses and other liabilities	(14,298)
Dividends payable	(10,642)
Tenant security deposits	(16,721)
Prepaid rents	(5,204)
Estimated remaining cost to complete repositioning projects	(50,748)
Total other assets and liabilities	$(72,213)
Debt and Shares Outstanding
Total consolidated debt(6)	$564,242
Preferred stock - liquidation preference	$90,000
Common shares outstanding(7)	70,810,523
Operating partnership units outstanding(8)	1,974,484
Total common shares and operating partnership units outstanding	72,785,007

(1)	For a definition and discussion of non-GAAP financial measures, see the notes and definitions section beginning on page 25 of this report.

(2)	Represents the estimated incremental base rent from uncommenced leases as if they had commenced as of April 1, 2017.

(3)	Represents the estimated incremental NOI from Q2’17 acquisitions as if they had been acquired on April 1, 2017. 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 NOI had we actually owned the acquired entities as of April 1, 2017.

(4)	Represents the actual Q2’17 NOI for properties sold during the current quarter. See page 22 for a detail of current year disposition properties.

(5)

Represents the estimated incremental NOI from the properties that were classified as current or future repositioning or lease-up during the three months ended June 30, 2017, assuming that all repositioning work had been completed and all of the properties/space were fully stabilized as of April 1, 2017. See pages 20-21 for the properties included. 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 NOI had these properties actually been stabilized as of April 1, 2017.

(6)	Excludes net deferred loan fees and net loan premium aggregating $2.7 million.

(7)	Represents outstanding shares of common stock of the Company, which excludes 312,379 shares of unvested restricted stock.

(8)	Represents outstanding common units of the Company’s operating partnership, Rexford Industrial Realty, L.P., that are owned by unit holders other than Rexford Industrial Realty, Inc. Includes 41,668 vested LTIP Units.

	Second Quarter 2017 Supplemental Financial Reporting Package	Page 24

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Notes and Definitions.

Adjusted Funds from Operations (AFFO): We calculate adjusted funds from operations, or AFFO, by adding to or subtracting from FFO, as defined below, the following items: (i) certain non-cash operating revenues and expenses, (ii) capitalized operating expenditures such as leasing and construction payroll, (iii) recurring capital expenditures required to maintain and re-tenant our properties, (iv) capitalized interest costs resulting from the repositioning/redevelopment of certain of our properties, (v) 2nd generation tenant improvements and leasing commissions and (vi) gain (loss) on extinguishment of debt. 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 net income (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, and 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.

Core Funds From Operations (Core FFO): We calculate Core FFO by adjusting FFO, as defined below, to exclude the impact of certain items that we do not consider reflective of our core revenue or

 

expense streams. These adjustments consist of acquisition expenses and legal expenses or reimbursements related to prior litigation. For more information on prior litigation, see Item 3. Legal Proceedings in our 2014 Annual Report on Form 10-K. Management believes that Core FFO is a useful supplemental measure as it provides a more meaningful and consistent comparison of operating performance and allows investors to more easily compare the Company's operating results. Because certain of these adjustments have a real economic impact on our financial condition and results from operations, the utility of core FFO as a measure of our performance is limited. Other REITs may not calculate core FFO in a consistent manner. Accordingly, our core FFO may not be comparable to other REITs' core FFO. Core FFO should be considered only as a supplement to net income computed in accordance with GAAP as a measure of our performance.

Debt Covenants ($ in thousands):

			Jun 30, 2017				Mar 31, 2017
	Covenant		Amended Credit Facility and $225M Term Loan		$100M Senior Notes		Amended Credit Facility and $225M Term Loan		$100M Senior Notes
Maximum Leverage Ratio	less than 60%		29.9%		29.9%		30.6%		38.0%
Maximum Secured Leverage Ratio	less than 45%		3.5%		n/a		4.0%		4.2%
Maximum Secured Leverage Ratio	less than 40%		n/a		3.5%		n/a		n/a
Maximum Secured Recourse Debt	less than 15%		—%		—%		—%		—%
Minimum Tangible Net Worth	$856,665		$1,202,683		$1,202,683		$1,075,788		n/a
Minimum Tangible Net Worth	$789,104		n/a		n/a		n/a		$1,075,788
Minimum Fixed Charge Coverage Ratio	at least 1.50 to 1.00		4.1 to 1.00		4.1 to 1.00		3.90 to 1.00		3.70 to 1.00
Unencumbered Leverage Ratio	less than 60%		28.9%		28.9%		29.7%		31.5%
Unencumbered Interest Coverage Ratio	at least 1.75 to 1.00		7.02 to 1.00		7.02 to 1.00		6.75 to 1.00		3.53 to 1.00

Our actual performance for each covenant is calculated based on the definitions set forth in each loan agreement.

EBITDA and Adjusted EBITDA: EBITDA is calculated as earnings (net income) before interest expense, tax expense and depreciation and amortization, including our proportionate share from our unconsolidated joint venture. We calculate Adjusted EBITDA by adding or subtracting from EBITDA the following items: (i) non-cash stock based compensation expense, (ii) gains on sale of real estate (including our proportionate share from our unconsolidated joint venture), (iii) gain (loss) on extinguishment of debt, (iv) legal fee reimbursements related to prior litigation, (v) acquisition expenses and (vi) the pro-forma effects of acquisitions and dispositions. We believe that EBITDA and Adjusted EBITDA are 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 these measures in ratios to compare our performance to that of our industry peers. In addition, we believe EBITDA and Adjusted EBITDA are frequently used by securities analysts, investors and other interested parties in the evaluation of Equity REITs. However, because EBITDA and Adjusted EBITDA are calculated before recurring cash charges including interest expense and income taxes, and are not adjusted for capital expenditures or other recurring cash requirements of our business, their utility as a measure of our liquidity is limited. Accordingly, EBITDA and Adjusted EBITDA should not be considered alternatives to cash flow from operating activities (as computed in accordance with GAAP) as a measure of our liquidity. EBITDA and Adjusted EBITDA should not be considered as alternatives to net income or loss

	Second Quarter 2017 Supplemental Financial Reporting Package	Page 25

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Notes and Definitions.

as an indicator of our operating performance. Other Equity REITs may calculate EBITDA and Adjusted EBITDA differently than we do; accordingly, our EBITDA and Adjusted EBITDA may not be comparable to such other Equity REITs’ EBITDA and Adjusted EBITDA. EBITDA and Adjusted EBITDA should be considered only as supplements to net income (as computed in accordance with GAAP) as a measure of our performance.

Fixed Charge Coverage Ratio:

	For the Three Months Ended
	Jun 30, 2017				Mar 31, 2017				Dec 31, 2016				Sep 30, 2016				Jun 30, 2016
EBITDA	$	38,672			$	23,318			$	26,862			$	20,206			$	29,123
Cash distributions from unconsolidated joint ventures	—				—				(8		)		(4		)		75
Fair value lease expense	(201		)		(117		)		(95		)		(39		)		60
Non-cash stock compensation	1,394				1,346				956				992				953
Straight line corporate office rent expense adjustment	(36		)		(36		)		(50		)		(12		)		(11		)
Gains on sale of real estate	(16,569		)		(2,668		)		(5,814		)		—				(11,563		)
Loss on extinguishment of debt	—				22				—				—				—
Straight line rental revenue adjustment	(996		)		(956		)		(1,095		)		(1,395		)		(922		)
Capitalized payments	(563		)		(510		)		(388		)		(400		)		(292		)
Recurring capital expenditures	(857		)		(390		)		(667		)		(691		)		(848		)
2nd generation tenant improvements and leasing commissions	(1,621		)		(1,545		)		(1,311		)		(1,988		)		(1,483		)
Unconsolidated joint venture AFFO adjustments	—				—				—				(2		)		(9		)
Cash flow for fixed charge coverage calculation	19,223				18,464				18,390				16,667				15,083
Cash interest expense calculation detail:
Interest expense	4,302				3,998				4,074				3,804				3,716
Capitalized interest	458				466				338				433				443
Note payable premium amort.	36				58				60				60				59
Amortization of deferred financing costs	(288		)		(275		)		(266		)		(263		)		(264		)
Cash interest expense	4,508				4,247				4,206				4,034				3,954
Scheduled principal payments	222				301				300				234				102
Preferred stock dividends	1,322				1,322				1,322				661				—
Fixed charges	$	6,052			$	5,870			$	5,828			$	4,929			$	4,056
Fixed Charge Coverage Ratio	3.2		x		3.1		x		3.2		x		3.4		x		3.7		x

 

Funds from Operations (FFO): We calculate FFO 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, impairment losses, 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. FFO should be considered only as a supplement to net income computed in accordance with GAAP as a measure of our performance.

Net Operating Income (NOI): NOI is a non-GAAP measure which includes the revenue and expense directly attributable to our real estate properties. NOI is calculated as total revenue from real estate operations including i) rental income, ii) tenant reimbursements, and iii) other income less property expenses. We use NOI as a supplemental performance measure because, in excluding real estate depreciation and amortization expense, general and administrative expenses, interest expense, gains (or losses) on sale of real estate and other non-operating items, 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.

Proforma NOI: Proforma NOI is calculated by adding to NOI the following adjustments: (i) the estimated impact on NOI of uncommenced leases as if they had commenced at the beginning of the reportable period, (ii) the estimated impact on NOI of current period acquisitions as if they had been acquired at the beginning of the reportable period, (iii) the actual NOI of properties sold during the current period and (iv) the estimated incremental NOI from properties that were classified as repositioning/lease-up properties as of the end of the reporting period, assuming that all repositioning work had been completed and the properties/space were fully stabilized as of the beginning of the reportable period. These

	Second Quarter 2017 Supplemental Financial Reporting Package	Page 26

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Notes and Definitions.

estimates do not purport to be indicative of what operating results would have been had the acquisitions actually occurred at the beginning of the reportable period and may not be indicative of future operating results.

Properties and Space Under Repositioning: Typically defined as properties or units where a significant amount of space is held vacant in order to implement capital improvements that improve the functionality (not including basic refurbishments, i.e., paint and carpet), cash flow and value of that space. We define a significant amount of space in a building as the lower of (i) 20,000 square feet of space or (ii) 50% of a building’s square footage. Typically, we would include properties or space where the repositioning and lease-up time frame is estimated to be greater than six months. A repositioning is considered complete once the investment is fully or nearly fully deployed and the property is marketable for leasing. We consider a property to be stabilized once it reaches 95% occupancy.

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: (i) space that has never been occupied under our ownership, (ii) repositioned/redeveloped space, (iii) space that has been vacant for over one year, (iv) space with different lease structures (for example a change from a gross lease to a modified gross lease or an increase or decrease in the leased square footage) or (v) lease terms shorter than six months.

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: (i) space that has never been occupied under our ownership, (ii) repositioned/redeveloped space, (iii) space that has been vacant for over one year, (iv) space with different lease structures (for example a change from a gross lease to a modified gross lease or an increase or decrease in the leased square footage) or (v) lease terms shorter than six months.

Same Property Portfolio: Our Same Property Portfolio is a subset of our consolidated portfolio and includes properties that were wholly-owned by us as of January 1, 2016, and still owned by us as of June 30, 2017. The Company’s computation of same property performance may not be comparable to other REITs.

Stabilized Same Property Portfolio: Our Stabilized Same Property Portfolio represents the properties included in our Same Property Portfolio, adjusted to exclude space at properties that were in various stages of repositioning or lease-up in connection with a completed repositioning.

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

 

	Second Quarter 2017 Supplemental Financial Reporting Package	Page 27

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Notes and Definitions.

Reconciliation of Net Income to NOI and Cash NOI (in thousands):

	Three Months Ended
	Jun 30, 2017				Mar 31, 2017				Dec 31, 2016				Sep 30, 2016				Jun 30, 2016
Net Income	$	19,855			$	5,721			$	8,546			$	3,061			$	12,792
Add:
General and administrative	5,123				5,086				4,225				5,067				4,521
Depreciation and amortization	14,515				13,599				14,242				13,341				12,610
Acquisition expenses	20				385				365				380				635
Interest expense	4,302				3,998				4,074				3,804				3,716
Loss on extinguishment of debt	—				22				—				—				—
Subtract:
Management, leasing, and development services	145				126				97				131				111
Interest income	218				227				231				228				—
Equity in income from unconsolidated real estate entities	—				11				—				1,328				62
Gains on sale of real estate	16,569				2,668				5,814				—				11,563
NOI	$	26,883			$	25,779			$	25,310			$	23,966			$	22,538
Straight line rental revenue adjustment	(996		)		(956		)		(1,095		)		(1,395		)		(922		)
Net fair value lease revenue (expense)	(201		)		(117		)		(95		)		(39		)		60
Cash NOI	$	25,686			$	24,706			$	24,120			$	22,532			$	21,676

 

Reconciliation of Net Income to Same Property Portfolio NOI and Same Property Portfolio Cash NOI (in thousands):

	Three Months Ended June 30,						Six months ended June 30,
	2017			2016			2017			2016
Net income	19,855			12,792			25,576			14,269
Add:
General and administrative	5,123			4,521			10,209			8,123
Depreciation and amortization	14,515			12,610			28,114			23,824
Acquisition expenses	20			635			405			1,110
Interest expense	4,302			3,716			8,300			6,970
Loss on extinguishment of debt	—			—			22			—
Deduct:
Management, leasing and development services	145			111			271			245
Interest income	218			—			445			—
Equity in income from unconsolidated real estate entities	—			62			11			123
Gains on sale of real estate	16,569			11,563			19,237			11,563
NOI	26,883			22,538			52,662			42,365
Non-Same Property Portfolio operating revenues	(8,023	)		(4,241	)		(14,889	)		(5,378	)
Non-Same Property Portfolio property expenses	1,896			1,181			3,622			1,545
Same Property Portfolio NOI	20,756			19,478			41,395			38,532
Straight line rental revenue adjustment	(738	)		(436	)		(1,421	)		(1,290	)
Amort. above/below market leases	92			90			173			83
Same Property Portfolio Cash NOI	20,110			19,132			40,147			37,325

	Second Quarter 2017 Supplemental Financial Reporting Package	Page 28