First Quarter 2021 Supplemental Financial Reporting Package | Page 1 | ![]() | ||||||
Table of Contents. | ||||||||
Section | Page | ||||
Corporate Data: | |||||
Consolidated Financial Results: | |||||
Portfolio Data: | |||||
First Quarter 2021 Supplemental Financial Reporting Package | Page 2 | ![]() | ||||||
Investor Company Summary. | ||||||||
Executive Management Team | ||||||||
Howard Schwimmer | Co-Chief Executive Officer, Director | |||||||
Michael S. Frankel | Co-Chief Executive Officer, Director | |||||||
Laura Clark | 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 | |||||||
Diana J. Ingram | Director | |||||||
Debra L. Morris | Director | |||||||
Tyler H. Rose | Director | |||||||
Peter Schwab | Director |
Investor Relations Information | ||||||||
Kosta Karmaniolas | ||||||||
SVP, Corporate Finance & Investor Relations | ||||||||
kkarmaniolas@rexfordindustrial.com | ||||||||
(310) 691-5475 |
Equity Research Coverage | ||||||||||||||
Bank of America Merrill Lynch | James Feldman | (646) 855-5808 | ||||||||||||
Baird | David Rodgers | (216) 737-7341 | ||||||||||||
Berenberg Capital Markets | Connor Siversky | (646) 949-9037 | ||||||||||||
Capital One | Chris Lucas | (571) 633-8151 | ||||||||||||
Citigroup Investment Research | Emmanuel Korchman | (212) 816-1382 | ||||||||||||
Green Street | Vince Tibone | (949) 640-8780 | ||||||||||||
J.P. Morgan | Michael W. Mueller, CFA | (212) 622-6689 | ||||||||||||
Jefferies LLC | Jonathan Petersen | (212) 284-1705 | ||||||||||||
Wells Fargo Securities | Blaine Heck | (443) 263-6529 |
First Quarter 2021 Supplemental Financial Reporting Package | Page 3 | ![]() | ||||||
Company Overview. | ||||||||
First Quarter 2021 Supplemental Financial Reporting Package | Page 4 | ![]() | ||||||
Highlights - Consolidated Financial Results. | ||||||||
Quarterly Results | (in millions) |
First Quarter 2021 Supplemental Financial Reporting Package | Page 5 | ![]() | ||||||
Financial and Portfolio Highlights and Common Stock Data. (1) | ||||||||
(in thousands except share and per share data and portfolio statistics) |
Three Months Ended | |||||||||||||||||||||||||||||
March 31, 2021 | December 31, 2020 | September 30, 2020 | June 30, 2020 | March 31, 2020 | |||||||||||||||||||||||||
Financial Results: | |||||||||||||||||||||||||||||
Total rental income | $ | 99,644 | $ | 88,495 | $ | 83,622 | $ | 79,770 | $ | 77,490 | |||||||||||||||||||
Net income | $ | 30,643 | $ | 18,155 | $ | 31,197 | $ | 16,271 | $ | 15,272 | |||||||||||||||||||
Net Operating Income (NOI) | $ | 76,069 | $ | 66,461 | $ | 62,938 | $ | 60,886 | $ | 59,376 | |||||||||||||||||||
Company share of Core FFO | $ | 48,364 | $ | 43,099 | $ | 40,557 | $ | 38,832 | $ | 37,519 | |||||||||||||||||||
Company share of Core FFO per common share - diluted | $ | 0.37 | $ | 0.34 | $ | 0.33 | $ | 0.32 | $ | 0.33 | |||||||||||||||||||
Adjusted EBITDA | $ | 69,521 | $ | 65,328 | $ | 56,384 | $ | 55,982 | $ | 55,566 | |||||||||||||||||||
Dividend declared per common share | $ | 0.240 | $ | 0.215 | $ | 0.215 | $ | 0.215 | $ | 0.215 | |||||||||||||||||||
Portfolio Statistics: | |||||||||||||||||||||||||||||
Portfolio rentable square feet (“RSF”) - consolidated | 32,087,821 | 31,501,111 | 27,711,078 | 27,633,778 | 27,303,260 | ||||||||||||||||||||||||
Ending occupancy - consolidated portfolio | 95.8 | % | 95.2 | % | 97.2 | % | 95.4 | % | 95.6 | % | |||||||||||||||||||
Stabilized occupancy - consolidated portfolio | 98.3 | % | 96.7 | % | 97.9 | % | 97.0 | % | 97.4 | % | |||||||||||||||||||
Rent Change - GAAP | 47.1 | % | 29.9 | % | 26.8 | % | 32.3 | % | 36.6 | % | |||||||||||||||||||
Rent Change - Cash | 32.7 | % | 18.1 | % | 17.4 | % | 18.2 | % | 24.4 | % | |||||||||||||||||||
Stabilized Same Property Performance: | |||||||||||||||||||||||||||||
Stabilized Same Property Portfolio ending occupancy | 98.6 | % | 98.2 | % | 98.3 | % | 97.4 | % | 98.0 | % | |||||||||||||||||||
Stabilized Same Property Portfolio NOI growth(2) | 6.8 | % | |||||||||||||||||||||||||||
Stabilized Same Property Portfolio Cash NOI growth(2) | 8.2 | % | |||||||||||||||||||||||||||
Capitalization: | |||||||||||||||||||||||||||||
Total shares and units issued and outstanding at period end(3) | 140,299,354 | 137,799,832 | 127,455,361 | 127,454,636 | 120,004,376 | ||||||||||||||||||||||||
Series A, B and C Preferred Stock and Series 1 and 2 CPOP Units | $ | 319,068 | $ | 319,068 | $ | 319,068 | $ | 319,068 | $ | 319,068 | |||||||||||||||||||
Total equity market capitalization | $ | 7,390,155 | $ | 7,086,418 | $ | 6,151,425 | $ | 5,599,514 | $ | 5,240,447 | |||||||||||||||||||
Total consolidated debt | $ | 1,226,415 | $ | 1,223,494 | $ | 908,046 | $ | 908,250 | $ | 905,645 | |||||||||||||||||||
Total combined market capitalization (net debt plus equity) | $ | 8,492,637 | $ | 8,133,619 | $ | 6,815,852 | $ | 6,253,391 | $ | 6,033,660 | |||||||||||||||||||
Ratios: | |||||||||||||||||||||||||||||
Net debt to total combined market capitalization | 13.0 | % | 12.9 | % | 9.7 | % | 10.5 | % | 13.1 | % | |||||||||||||||||||
Net debt to Adjusted EBITDA (quarterly results annualized) | 4.0x | 4.0x | 2.9x | 2.9x | 3.6x |
First Quarter 2021 Supplemental Financial Reporting Package | Page 6 | ![]() | ||||||
Guidance. | ||||||||
As of March 31, 2021 |
2021 GUIDANCE / ASSUMPTIONS | ||||||||||||||||||||
METRIC | Q1’21 UPDATED GUIDANCE | INITIAL GUIDANCE | RESULTS AS OF MARCH 31, 2021 | |||||||||||||||||
Net Income Attributable to Common Stockholders per diluted share (1)(2) | $0.48 - $0.51 | $0.40 - $0.43 | $0.19 | |||||||||||||||||
Company share of Core FFO per diluted share (1)(2) | $1.41 - $1.44 | $1.40 - $1.43 | $0.37 | |||||||||||||||||
Stabilized Same Property Portfolio NOI Growth - GAAP (3) | 3.75% - 4.75% | 3.0% - 4.0% | 6.8% | |||||||||||||||||
Stabilized Same Property Portfolio NOI Growth - Cash (3) | 6.75% - 7.75% | 6.0% - 7.0% | 8.2% | |||||||||||||||||
Average 2021 Stabilized Same Property Portfolio Occupancy (FY) | 97.25% - 97.75% | 97.0% - 97.5% | 98.4% | |||||||||||||||||
General and Administrative Expenses (4) | $44.5M - $45.5M | $44.5M - $45.5M | $11.5M | |||||||||||||||||
Net Interest Expense | $36.0M - $36.5M | $36.0M - $36.5M | $9.8M | |||||||||||||||||
First Quarter 2021 Supplemental Financial Reporting Package | Page 7 | ![]() | ||||||
Guidance (Continued). | ||||||||
As of March 31, 2021 |
Range ($ per share) | ||||||||||||||||||||
Earnings Components | Low | High | Notes | |||||||||||||||||
2021 Core FFO Per Diluted Share Guidance (Previous) | $1.40 | $1.43 | ||||||||||||||||||
Same Property NOI Growth | 0.01 | 0.01 | ‘+75 basis point increase at the midpoint to 3.75% to 4.75% | |||||||||||||||||
2021 Acquisitions Closed to Date | 0.02 | 0.02 | $191M of acquisitions closed to date (2) | |||||||||||||||||
2021 Dispositions Closed to Date | (0.01) | (0.01) | Impact of $21M of dispositions completed in the first quarter | |||||||||||||||||
Other | (0.01) | (0.01) | Includes the incremental impact from Q1 equity issuance through ATM | |||||||||||||||||
2021 Core FFO Per Diluted Share Guidance (Current) | $1.41 | $1.44 | ||||||||||||||||||
Core FFO Annual Growth Per Diluted Share | 7% | 9% |
First Quarter 2021 Supplemental Financial Reporting Package | Page 8 | ![]() | ||||||
Consolidated Balance Sheets. | ||||||||
(unaudited and in thousands) |
March 31, 2021 | December 31, 2020 | September 30, 2020 | June 30, 2020 | March 31, 2020 | |||||||||||||||||||||||||
ASSETS | |||||||||||||||||||||||||||||
Land | $ | 2,769,614 | $ | 2,636,816 | $ | 2,163,518 | $ | 2,128,243 | $ | 2,068,460 | |||||||||||||||||||
Buildings and improvements | 2,244,948 | 2,201,187 | 1,791,668 | 1,770,930 | 1,748,675 | ||||||||||||||||||||||||
Tenant improvements | 86,245 | 84,462 | 80,541 | 77,211 | 75,341 | ||||||||||||||||||||||||
Furniture, fixtures, and equipment | 132 | 132 | 132 | 141 | 141 | ||||||||||||||||||||||||
Construction in progress | 35,083 | 25,358 | 41,941 | 39,860 | 26,791 | ||||||||||||||||||||||||
Total real estate held for investment | 5,136,022 | 4,947,955 | 4,077,800 | 4,016,385 | 3,919,408 | ||||||||||||||||||||||||
Accumulated depreciation | (401,122) | (375,423) | (354,203) | (337,938) | (316,812) | ||||||||||||||||||||||||
Investments in real estate, net | 4,734,900 | 4,572,532 | 3,723,597 | 3,678,447 | 3,602,596 | ||||||||||||||||||||||||
Cash and cash equivalents | 123,933 | 176,293 | 243,619 | 254,373 | 112,432 | ||||||||||||||||||||||||
Restricted cash | 47 | 1,230 | 42,387 | 67 | 46 | ||||||||||||||||||||||||
Rents and other receivables, net | 7,737 | 10,208 | 5,838 | 4,790 | 5,859 | ||||||||||||||||||||||||
Deferred rent receivable, net | 45,093 | 40,893 | 40,473 | 37,552 | 31,339 | ||||||||||||||||||||||||
Deferred leasing costs, net | 26,039 | 23,148 | 21,842 | 20,269 | 19,482 | ||||||||||||||||||||||||
Deferred loan costs, net | 2,060 | 2,240 | 2,419 | 2,599 | 2,770 | ||||||||||||||||||||||||
Acquired lease intangible assets, net(1) | 87,587 | 92,172 | 67,304 | 71,513 | 76,138 | ||||||||||||||||||||||||
Acquired indefinite-lived intangible | 5,156 | 5,156 | 5,156 | 5,156 | 5,156 | ||||||||||||||||||||||||
Other assets | 27,272 | 14,390 | 13,982 | 16,656 | 10,717 | ||||||||||||||||||||||||
Acquisition related deposits | 10,075 | 4,067 | 3,625 | 63,612 | 5,896 | ||||||||||||||||||||||||
Assets associated with real estate held for sale, net(2) | — | 8,845 | — | — | — | ||||||||||||||||||||||||
Total Assets | $ | 5,069,899 | $ | 4,951,174 | $ | 4,170,242 | $ | 4,155,034 | $ | 3,872,431 | |||||||||||||||||||
LIABILITIES & EQUITY | |||||||||||||||||||||||||||||
Liabilities | |||||||||||||||||||||||||||||
Notes payable | $ | 1,219,425 | $ | 1,216,160 | $ | 906,608 | $ | 906,687 | $ | 903,802 | |||||||||||||||||||
Interest rate swap liability | 14,081 | 17,580 | 20,869 | 22,916 | 22,690 | ||||||||||||||||||||||||
Accounts payable, accrued expenses and other liabilities | 41,871 | 45,384 | 45,212 | 33,731 | 39,000 | ||||||||||||||||||||||||
Dividends payable | 33,813 | 29,747 | 27,532 | 27,532 | 25,931 | ||||||||||||||||||||||||
Acquired lease intangible liabilities, net(3) | 66,883 | 67,256 | 61,148 | 61,108 | 63,914 | ||||||||||||||||||||||||
Tenant security deposits | 34,367 | 31,602 | 27,683 | 26,158 | 30,342 | ||||||||||||||||||||||||
Prepaid rents | 11,241 | 12,660 | 10,970 | 11,163 | 8,074 | ||||||||||||||||||||||||
Liabilities associated with real estate held for sale(2) | — | 193 | — | — | — | ||||||||||||||||||||||||
Total Liabilities | 1,421,681 | 1,420,582 | 1,100,022 | 1,089,295 | 1,093,753 | ||||||||||||||||||||||||
Equity | |||||||||||||||||||||||||||||
Preferred stock | 242,327 | 242,327 | 242,327 | 242,327 | 242,327 | ||||||||||||||||||||||||
Common stock | 1,338 | 1,313 | 1,236 | 1,236 | 1,162 | ||||||||||||||||||||||||
Additional paid in capital | 3,300,333 | 3,182,599 | 2,821,127 | 2,820,216 | 2,524,274 | ||||||||||||||||||||||||
Cumulative distributions in excess of earnings | (170,487) | (163,389) | (148,492) | (147,907) | (132,843) | ||||||||||||||||||||||||
Accumulated other comprehensive income | (13,996) | (17,709) | (20,231) | (22,214) | (21,950) | ||||||||||||||||||||||||
Total stockholders’ equity | 3,359,515 | 3,245,141 | 2,895,967 | 2,893,658 | 2,612,970 | ||||||||||||||||||||||||
Noncontrolling interests | 288,703 | 285,451 | 174,253 | 172,081 | 165,708 | ||||||||||||||||||||||||
Total Equity | 3,648,218 | 3,530,592 | 3,070,220 | 3,065,739 | 2,778,678 | ||||||||||||||||||||||||
Total Liabilities and Equity | $ | 5,069,899 | $ | 4,951,174 | $ | 4,170,242 | $ | 4,155,034 | $ | 3,872,431 |
First Quarter 2021 Supplemental Financial Reporting Package | Page 9 | ![]() | ||||||
Consolidated Statements of Operations. | ||||||||
Quarterly Results | (unaudited and in thousands, except share and per share data) |
Three Months Ended | |||||||||||||||||||||||||||||
Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | |||||||||||||||||||||||||
Revenues | |||||||||||||||||||||||||||||
Rental income(1) | $ | 99,644 | $ | 88,495 | $ | 83,622 | $ | 79,770 | $ | 77,490 | |||||||||||||||||||
Management, leasing, and development services | 105 | 95 | 118 | 114 | 93 | ||||||||||||||||||||||||
Interest income | 14 | 59 | 116 | 66 | 97 | ||||||||||||||||||||||||
Total Revenues | 99,763 | 88,649 | 83,856 | 79,950 | 77,680 | ||||||||||||||||||||||||
Operating Expenses | |||||||||||||||||||||||||||||
Property expenses | 23,575 | 22,034 | 20,684 | 18,884 | 18,114 | ||||||||||||||||||||||||
General and administrative | 11,480 | 9,042 | 9,464 | 8,972 | 9,317 | ||||||||||||||||||||||||
Depreciation and amortization | 35,144 | 30,554 | 28,811 | 28,381 | 27,523 | ||||||||||||||||||||||||
Total Operating Expenses | 70,199 | 61,630 | 58,959 | 56,237 | 54,954 | ||||||||||||||||||||||||
Other Expenses | |||||||||||||||||||||||||||||
Acquisition expenses | 29 | 35 | 70 | 14 | 5 | ||||||||||||||||||||||||
Interest expense | 9,752 | 8,673 | 7,299 | 7,428 | 7,449 | ||||||||||||||||||||||||
Total Expenses | 79,980 | 70,338 | 66,328 | 63,679 | 62,408 | ||||||||||||||||||||||||
Loss on extinguishment of debt | — | (104) | — | — | — | ||||||||||||||||||||||||
Gain (loss) on sale of real estate | 10,860 | (52) | 13,669 | — | — | ||||||||||||||||||||||||
Net Income | 30,643 | 18,155 | 31,197 | 16,271 | 15,272 | ||||||||||||||||||||||||
Less: net income attributable to noncontrolling interests | (1,969) | (1,160) | (1,531) | (1,084) | (717) | ||||||||||||||||||||||||
Net income attributable to Rexford Industrial Realty, Inc. | 28,674 | 16,995 | 29,666 | 15,187 | 14,555 | ||||||||||||||||||||||||
Less: preferred stock dividends | (3,636) | (3,636) | (3,636) | (3,637) | (3,636) | ||||||||||||||||||||||||
Less: earnings allocated to participating securities | (141) | (120) | (129) | (129) | (131) | ||||||||||||||||||||||||
Net income attributable to common stockholders | $ | 24,897 | $ | 13,239 | $ | 25,901 | $ | 11,421 | $ | 10,788 | |||||||||||||||||||
Earnings per Common Share | |||||||||||||||||||||||||||||
Net income attributable to common stockholders per share - basic | $ | 0.19 | $ | 0.11 | $ | 0.21 | $ | 0.10 | $ | 0.09 | |||||||||||||||||||
Net income attributable to common stockholders per share - diluted | $ | 0.19 | $ | 0.10 | $ | 0.21 | $ | 0.10 | $ | 0.09 | |||||||||||||||||||
Weighted average shares outstanding - basic | 131,612,881 | 125,995,123 | 123,548,978 | 119,810,283 | 114,054,434 | ||||||||||||||||||||||||
Weighted average shares outstanding - diluted | 131,758,744 | 126,401,077 | 123,843,977 | 120,068,176 | 114,314,331 |
First Quarter 2021 Supplemental Financial Reporting Package | Page 10 | ![]() | ||||||
Consolidated Statements of Operations. | ||||||||
Quarterly Results (continued) | (unaudited and in thousands, except share and per share data) |
Three Months Ended March 31, | ||||||||||||||
2021 | 2020 | |||||||||||||
Revenues | ||||||||||||||
Rental income(1) | $ | 99,644 | $ | 77,490 | ||||||||||
Management, leasing, and development services | 105 | 93 | ||||||||||||
Interest income | 14 | 97 | ||||||||||||
Total Revenues | 99,763 | 77,680 | ||||||||||||
Operating Expenses | ||||||||||||||
Property expenses | 23,575 | 18,114 | ||||||||||||
General and administrative | 11,480 | 9,317 | ||||||||||||
Depreciation and amortization | 35,144 | 27,523 | ||||||||||||
Total Operating Expenses | 70,199 | 54,954 | ||||||||||||
Other Expenses | ||||||||||||||
Acquisition expenses | 29 | 5 | ||||||||||||
Interest expense | 9,752 | 7,449 | ||||||||||||
Total Expenses | 79,980 | 62,408 | ||||||||||||
Gain on sale of real estate | 10,860 | — | ||||||||||||
Net Income | 30,643 | 15,272 | ||||||||||||
Less: net income attributable to noncontrolling interests | (1,969) | (717) | ||||||||||||
Net income attributable to Rexford Industrial Realty, Inc. | 28,674 | 14,555 | ||||||||||||
Less: preferred stock dividends | (3,636) | (3,636) | ||||||||||||
Less: earnings allocated to participating securities | (141) | (131) | ||||||||||||
Net income attributable to common stockholders | $ | 24,897 | $ | 10,788 | ||||||||||
Net income attributable to common stockholders per share – basic | $ | 0.19 | $ | 0.09 | ||||||||||
Net income attributable to common stockholders per share – diluted | $ | 0.19 | $ | 0.09 | ||||||||||
Weighted-average shares of common stock outstanding – basic | 131,612,881 | 114,054,434 | ||||||||||||
Weighted-average shares of common stock outstanding – diluted | 131,758,744 | 114,314,331 |
First Quarter 2021 Supplemental Financial Reporting Package | Page 11 | ![]() | ||||||
Non-GAAP FFO and Core FFO Reconciliations. (1) | ||||||||
(unaudited and in thousands, except share and per share data) |
Three Months Ended | |||||||||||||||||||||||||||||
March 31, 2021 | December 31, 2020 | September 30, 2020 | June 30, 2020 | March 31, 2020 | |||||||||||||||||||||||||
Net Income | $ | 30,643 | $ | 18,155 | $ | 31,197 | $ | 16,271 | $ | 15,272 | |||||||||||||||||||
Add: | |||||||||||||||||||||||||||||
Depreciation and amortization | 35,144 | 30,554 | 28,811 | 28,381 | 27,523 | ||||||||||||||||||||||||
Deduct: | |||||||||||||||||||||||||||||
Gain (loss) on sale of real estate | 10,860 | (52) | 13,669 | — | — | ||||||||||||||||||||||||
NAREIT Defined Funds From Operations (FFO) | 54,927 | 48,761 | 46,339 | 44,652 | 42,795 | ||||||||||||||||||||||||
Less: preferred stock dividends | (3,636) | (3,636) | (3,636) | (3,637) | (3,636) | ||||||||||||||||||||||||
Less: FFO attributable to noncontrolling interests(2) | (3,134) | (2,182) | (2,017) | (2,005) | (1,450) | ||||||||||||||||||||||||
Less: FFO attributable to participating securities(3) | (209) | (188) | (197) | (192) | (195) | ||||||||||||||||||||||||
Company share of FFO | $ | 47,948 | $ | 42,755 | $ | 40,489 | $ | 38,818 | $ | 37,514 | |||||||||||||||||||
Company share of FFO per common share‐basic | $ | 0.36 | $ | 0.34 | $ | 0.33 | $ | 0.32 | $ | 0.33 | |||||||||||||||||||
Company share of FFO per common share‐diluted | $ | 0.36 | $ | 0.34 | $ | 0.33 | $ | 0.32 | $ | 0.33 | |||||||||||||||||||
FFO | $ | 54,927 | $ | 48,761 | $ | 46,339 | $ | 44,652 | $ | 42,795 | |||||||||||||||||||
Add: | |||||||||||||||||||||||||||||
Acquisition expenses | 29 | 35 | 70 | 14 | 5 | ||||||||||||||||||||||||
Loss on extinguishment of debt | — | 104 | — | — | — | ||||||||||||||||||||||||
Amortization of loss on termination of interest rate swap | 410 | 218 | — | — | — | ||||||||||||||||||||||||
Core FFO | 55,366 | 49,118 | 46,409 | 44,666 | 42,800 | ||||||||||||||||||||||||
Less: preferred stock dividends | (3,636) | (3,636) | (3,636) | (3,637) | (3,636) | ||||||||||||||||||||||||
Less: Core FFO attributable to noncontrolling interests(2) | (3,155) | (2,193) | (2,019) | (2,005) | (1,450) | ||||||||||||||||||||||||
Less: Core FFO attributable to participating securities(3) | (211) | (190) | (197) | (192) | (195) | ||||||||||||||||||||||||
Company share of Core FFO | $ | 48,364 | $ | 43,099 | $ | 40,557 | $ | 38,832 | $ | 37,519 | |||||||||||||||||||
Company share of Core FFO per common share‐basic | $ | 0.37 | $ | 0.34 | $ | 0.33 | $ | 0.32 | $ | 0.33 | |||||||||||||||||||
Company share of Core FFO per common share‐diluted | $ | 0.37 | $ | 0.34 | $ | 0.33 | $ | 0.32 | $ | 0.33 | |||||||||||||||||||
Weighted-average shares outstanding-basic | 131,612,881 | 125,995,123 | 123,548,978 | 119,810,283 | 114,054,434 | ||||||||||||||||||||||||
Weighted-average shares outstanding-diluted(4) | 131,758,744 | 126,401,077 | 123,843,977 | 120,068,176 | 114,314,331 |
First Quarter 2021 Supplemental Financial Reporting Package | Page 12 | ![]() | ||||||
Non-GAAP FFO and Core FFO Reconciliations. (1) | ||||||||
(unaudited and in thousands, except share and per share data) |
Three Months Ended, | ||||||||||||||
March 31, 2021 | March 31, 2020 | |||||||||||||
Net Income | $ | 30,643 | $ | 15,272 | ||||||||||
Add: | ||||||||||||||
Depreciation and amortization | 35,144 | 27,523 | ||||||||||||
Deduct: | ||||||||||||||
Gain on sale of real estate | 10,860 | — | ||||||||||||
Funds From Operations (FFO) | 54,927 | 42,795 | ||||||||||||
Less: preferred stock dividends | (3,636) | (3,636) | ||||||||||||
Less: FFO attributable to noncontrolling interests | (3,134) | (1,450) | ||||||||||||
Less: FFO attributable to participating securities | (209) | (195) | ||||||||||||
Company share of FFO | $ | 47,948 | $ | 37,514 | ||||||||||
Company share of FFO per common share‐basic | $ | 0.36 | $ | 0.33 | ||||||||||
Company share of FFO per common share‐diluted | $ | 0.36 | $ | 0.33 | ||||||||||
FFO | $ | 54,927 | $ | 42,795 | ||||||||||
Add: | ||||||||||||||
Acquisition expenses | 29 | 5 | ||||||||||||
Amortization of loss on termination of interest rate swap | 410 | — | ||||||||||||
Core FFO | 55,366 | 42,800 | ||||||||||||
Less: preferred stock dividends | (3,636) | (3,636) | ||||||||||||
Less: Core FFO attributable to noncontrolling interests | (3,155) | (1,450) | ||||||||||||
Less: Core FFO attributable to participating securities | (211) | (195) | ||||||||||||
Company share of Core FFO | $ | 48,364 | $ | 37,519 | ||||||||||
Company share of Core FFO per common share‐basic | $ | 0.37 | $ | 0.33 | ||||||||||
Company share of Core FFO per common share‐diluted | $ | 0.37 | $ | 0.33 | ||||||||||
Weighted-average shares outstanding-basic | 131,612,881 | 114,054,434 | ||||||||||||
Weighted-average shares outstanding-diluted | 131,758,744 | 114,314,331 |
First Quarter 2021 Supplemental Financial Reporting Package | Page 13 | ![]() | ||||||
Non-GAAP AFFO Reconciliation. (1) | ||||||||
(unaudited and in thousands, except share and per share data) |
Three Months Ended | |||||||||||||||||||||||||||||
March 31, 2021 | December 31, 2020 | September 30, 2020 | June 30, 2020 | March 31, 2020 | |||||||||||||||||||||||||
Funds From Operations(2) | $ | 54,927 | $ | 48,761 | $ | 46,339 | $ | 44,652 | $ | 42,795 | |||||||||||||||||||
Add: | |||||||||||||||||||||||||||||
Amortization of deferred financing costs | 447 | 408 | 373 | 381 | 343 | ||||||||||||||||||||||||
Non-cash stock compensation | 4,261 | 2,491 | 3,101 | 3,709 | 3,570 | ||||||||||||||||||||||||
Loss on extinguishment of debt | — | 104 | — | — | — | ||||||||||||||||||||||||
Amortization of loss on termination of interest rate swap | 410 | 218 | — | — | — | ||||||||||||||||||||||||
Deduct: | |||||||||||||||||||||||||||||
Preferred stock dividends | 3,636 | 3,636 | 3,636 | 3,637 | 3,636 | ||||||||||||||||||||||||
Straight line rental revenue adjustment(3) | 4,199 | 434 | 3,088 | 6,212 | 1,672 | ||||||||||||||||||||||||
Amortization of net below-market lease intangibles | 2,712 | 2,711 | 2,751 | 2,669 | 2,402 | ||||||||||||||||||||||||
Capitalized payments(4) | 2,322 | 2,149 | 2,442 | 2,355 | 2,067 | ||||||||||||||||||||||||
Note payable premium amortization | 29 | 47 | 66 | 59 | 16 | ||||||||||||||||||||||||
Recurring capital expenditures(5) | 2,541 | 2,671 | 1,380 | 1,323 | 1,575 | ||||||||||||||||||||||||
2nd generation tenant improvements and leasing commissions(6) | 3,528 | 1,741 | 2,243 | 2,000 | 1,727 | ||||||||||||||||||||||||
Adjusted Funds From Operations (AFFO) | $ | 41,078 | $ | 38,593 | $ | 34,207 | $ | 30,487 | $ | 33,613 |
First Quarter 2021 Supplemental Financial Reporting Package | Page 14 | ![]() | ||||||
Statement of Operations Reconciliations - NOI, Cash NOI, EBITDAre and Adjusted EBITDA. (1) | ||||||||
(unaudited and in thousands) |
NOI and Cash NOI | |||||||||||||||||||||||||||||
Three Months Ended | |||||||||||||||||||||||||||||
Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | |||||||||||||||||||||||||
Rental income(2)(3) | $ | 99,644 | $ | 88,495 | $ | 83,622 | $ | 79,770 | $ | 77,490 | |||||||||||||||||||
Property expenses | 23,575 | 22,034 | 20,684 | 18,884 | 18,114 | ||||||||||||||||||||||||
Net Operating Income (NOI) | $ | 76,069 | $ | 66,461 | $ | 62,938 | $ | 60,886 | $ | 59,376 | |||||||||||||||||||
Amortization of above/below market lease intangibles | (2,712) | (2,711) | (2,751) | (2,669) | (2,402) | ||||||||||||||||||||||||
Straight line rental revenue adjustment | (4,199) | (434) | (3,088) | (6,212) | (1,672) | ||||||||||||||||||||||||
Cash NOI | $ | 69,158 | $ | 63,316 | $ | 57,099 | $ | 52,005 | $ | 55,302 |
EBITDAre and Adjusted EBITDA | |||||||||||||||||||||||||||||
Three Months Ended | |||||||||||||||||||||||||||||
Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | |||||||||||||||||||||||||
Net income | $ | 30,643 | $ | 18,155 | $ | 31,197 | $ | 16,271 | $ | 15,272 | |||||||||||||||||||
Interest expense | 9,752 | 8,673 | 7,299 | 7,428 | 7,449 | ||||||||||||||||||||||||
Depreciation and amortization | 35,144 | 30,554 | 28,811 | 28,381 | 27,523 | ||||||||||||||||||||||||
(Gain) loss on sale of real estate | (10,860) | 52 | (13,669) | — | — | ||||||||||||||||||||||||
EBITDAre | $ | 64,679 | $ | 57,434 | $ | 53,638 | $ | 52,080 | $ | 50,244 | |||||||||||||||||||
Stock-based compensation amortization | 4,261 | 2,491 | 3,101 | 3,709 | 3,570 | ||||||||||||||||||||||||
Loss on extinguishment of debt | — | 104 | — | — | — | ||||||||||||||||||||||||
Acquisition expenses | 29 | 35 | 70 | 14 | 5 | ||||||||||||||||||||||||
Pro forma effect of acquisitions(4) | 662 | 5,260 | 5 | 179 | 1,747 | ||||||||||||||||||||||||
Pro forma effect of dispositions(5) | (110) | 4 | (430) | — | — | ||||||||||||||||||||||||
Adjusted EBITDA | $ | 69,521 | $ | 65,328 | $ | 56,384 | $ | 55,982 | $ | 55,566 |
First Quarter 2021 Supplemental Financial Reporting Package | Page 15 | ![]() | ||||||
Stabilized Same Property Portfolio Performance. (1) | ||||||||
(unaudited and dollars in thousands) |
Stabilized Same Property Portfolio: | ||||||||||||||||||||||||||||||||||||||||||||||||||
Number of properties | 195 | |||||||||||||||||||||||||||||||||||||||||||||||||
Square Feet | 24,720,199 |
Stabilized Same Property Portfolio NOI and Cash NOI: | ||||||||||||||||||||||||||
Three Months Ended March 31, | ||||||||||||||||||||||||||
2021 | 2020 | $ Change | % Change | |||||||||||||||||||||||
Rental income(2)(3)(4) | $ | 77,348 | $ | 72,966 | $ | 4,382 | 6.0% | |||||||||||||||||||
Property expenses | 17,354 | 16,796 | 558 | 3.3% | ||||||||||||||||||||||
Stabilized same property portfolio NOI | $ | 59,994 | $ | 56,170 | $ | 3,824 | 6.8% | (4) | ||||||||||||||||||
Straight-line rental revenue | (1,756) | (1,680) | (76) | 4.5% | ||||||||||||||||||||||
Amort. of above/below market lease intangibles | (1,502) | (2,072) | 570 | (27.5)% | ||||||||||||||||||||||
Stabilized same property portfolio Cash NOI | $ | 56,736 | $ | 52,418 | $ | 4,318 | 8.2% | (4) |
Stabilized Same Property Portfolio Occupancy: | ||||||||||||||||||||
March 31, | ||||||||||||||||||||
2021 | 2020 | Change (basis points) | ||||||||||||||||||
Weighted Average Occupancy:(5) | ||||||||||||||||||||
Los Angeles County | 98.9% | 98.7% | 20 bps | |||||||||||||||||
Orange County | 99.3% | 98.3% | 100 bps | |||||||||||||||||
San Bernardino County | 99.4% | 97.6% | 180 bps | |||||||||||||||||
Ventura County | 94.6% | 96.5% | (190) bps | |||||||||||||||||
San Diego County | 96.7% | 96.3% | 40 bps | |||||||||||||||||
Total Portfolio Weighted Average Occupancy | 98.4% | 98.0% | 40 bps | |||||||||||||||||
Ending Occupancy: | 98.6% | 98.0% | 60 bps |
First Quarter 2021 Supplemental Financial Reporting Package | Page 16 | ![]() | ||||||
Capitalization Summary. | ||||||||
(unaudited and in thousands, except share and per share data) | ||||||||
Capitalization as of March 31, 2021 |
Description | March 31, 2021 | December 31, 2020 | September 30, 2020 | June 30, 2020 | March 31, 2020 | |||||||||||||||||||||||||||
Common shares outstanding(1) | 133,657,612 | 131,193,139 | 123,551,852 | 123,546,160 | 116,087,092 | |||||||||||||||||||||||||||
Operating partnership units outstanding(2) | 6,641,742 | 6,606,693 | 3,903,509 | 3,908,476 | 3,917,284 | |||||||||||||||||||||||||||
Total shares and units outstanding at period end | 140,299,354 | 137,799,832 | 127,455,361 | 127,454,636 | 120,004,376 | |||||||||||||||||||||||||||
Share price at end of quarter | $ | 50.40 | $ | 49.11 | $ | 45.76 | $ | 41.43 | $ | 41.01 | ||||||||||||||||||||||
Common Stock and Operating Partnership Units - Capitalization | $ | 7,071,087 | $ | 6,767,350 | $ | 5,832,357 | $ | 5,280,446 | $ | 4,921,379 | ||||||||||||||||||||||
Series A, B and C Cumulative Redeemable Preferred Stock(3) | $ | 251,250 | $ | 251,250 | $ | 251,250 | $ | 251,250 | $ | 251,250 | ||||||||||||||||||||||
4.43937% Series 1 Cumulative Redeemable Convertible Preferred Units(4) | 27,031 | 27,031 | 27,031 | 27,031 | 27,031 | |||||||||||||||||||||||||||
4.00% Series 2 Cumulative Redeemable Convertible Preferred Units(4) | 40,787 | 40,787 | 40,787 | 40,787 | 40,787 | |||||||||||||||||||||||||||
Preferred Equity | $ | 319,068 | $ | 319,068 | $ | 319,068 | $ | 319,068 | $ | 319,068 | ||||||||||||||||||||||
Total Equity Market Capitalization | $ | 7,390,155 | $ | 7,086,418 | $ | 6,151,425 | $ | 5,599,514 | $ | 5,240,447 | ||||||||||||||||||||||
Total Debt | $ | 1,226,415 | $ | 1,223,494 | $ | 908,046 | $ | 908,250 | $ | 905,645 | ||||||||||||||||||||||
Less: Cash and cash equivalents | (123,933) | (176,293) | (243,619) | (254,373) | (112,432) | |||||||||||||||||||||||||||
Net Debt | $ | 1,102,482 | $ | 1,047,201 | $ | 664,427 | $ | 653,877 | $ | 793,213 | ||||||||||||||||||||||
Total Combined Market Capitalization (Net Debt plus Equity) | $ | 8,492,637 | $ | 8,133,619 | $ | 6,815,852 | $ | 6,253,391 | $ | 6,033,660 | ||||||||||||||||||||||
Net debt to total combined market capitalization | 13.0 | % | 12.9 | % | 9.7 | % | 10.5 | % | 13.1 | % | ||||||||||||||||||||||
Net debt to Adjusted EBITDA (quarterly results annualized)(5) | 4.0x | 4.0x | 2.9x | 2.9x | 3.6x | |||||||||||||||||||||||||||
Net debt & preferred equity to Adjusted EBITDA (quarterly results annualized)(5) | 5.1x | 5.2x | 4.4x | 4.3x | 5.0x |
First Quarter 2021 Supplemental Financial Reporting Package | Page 17 | ![]() | ||||||
Debt Summary. | ||||||||
(unaudited and dollars in thousands) |
Debt Detail: | ||||||||||||||||||||||||||||||||
As of March 31, 2021 | ||||||||||||||||||||||||||||||||
Debt Description | Maturity Date | Stated Interest Rate | Effective Interest Rate(1) | Principal Balance(2) | Expiration Date of Effective Swaps | |||||||||||||||||||||||||||
Unsecured Debt: | ||||||||||||||||||||||||||||||||
$500M Revolving Credit Facility(3) | 2/13/2024(4) | LIBOR +0.85%(5) | 0.961% | $ | — | |||||||||||||||||||||||||||
$225M Term Loan Facility | 1/14/2023 | LIBOR +1.10%(5) | 2.474% | 225,000 | 1/14/2022 | |||||||||||||||||||||||||||
$150M Term Loan Facility | 5/22/2025 | LIBOR +1.55%(5) | 4.313% | 150,000 | 11/22/2024 | |||||||||||||||||||||||||||
$100M Senior Notes | 8/6/2025 | 4.290% | 4.290% | 100,000 | ||||||||||||||||||||||||||||
$125M Senior Notes | 7/13/2027 | 3.930% | 3.930% | 125,000 | ||||||||||||||||||||||||||||
$25M Series 2019A Senior Notes | 7/16/2029 | 3.880% | 3.880% | 25,000 | ||||||||||||||||||||||||||||
$400M Senior Notes | 12/1/2030 | 2.125% | 2.125% | 400,000 | ||||||||||||||||||||||||||||
$75M Series 2019B Senior Notes | 7/16/2034 | 4.030% | 4.030% | 75,000 | ||||||||||||||||||||||||||||
Secured Debt: | ||||||||||||||||||||||||||||||||
2601-2641 Manhattan Beach Boulevard | 4/5/2023 | 4.080% | 4.080% | 4,037 | ||||||||||||||||||||||||||||
$60M Term Loan | 8/1/2023(6) | LIBOR + 1.70% | 1.811% | 58,499 | ||||||||||||||||||||||||||||
960-970 Knox Street | 11/1/2023 | 5.000% | 5.000% | 2,466 | ||||||||||||||||||||||||||||
7612-7642 Woodwind Drive | 1/5/2024 | 5.240% | 5.240% | 3,874 | ||||||||||||||||||||||||||||
11600 Los Nietos Road | 5/1/2024 | 4.190% | 4.190% | 2,745 | ||||||||||||||||||||||||||||
5160 Richton Street | 11/15/2024 | 3.790% | 3.790% | 4,359 | ||||||||||||||||||||||||||||
22895 Eastpark Drive | 11/15/2024 | 4.330% | 4.330% | 2,733 | ||||||||||||||||||||||||||||
701-751 Kingshill Place | 1/5/2026 | 3.900% | 3.900% | 7,100 | ||||||||||||||||||||||||||||
13943-13955 Balboa Boulevard | 7/1/2027 | 3.930% | 3.930% | 15,577 | ||||||||||||||||||||||||||||
2205 126th Street | 12/1/2027 | 3.910% | 3.910% | 5,200 | ||||||||||||||||||||||||||||
2410-2420 Santa Fe Avenue | 1/1/2028 | 3.700% | 3.700% | 10,300 | ||||||||||||||||||||||||||||
11832-11954 La Cienega Boulevard | 7/1/2028 | 4.260% | 4.260% | 4,054 | ||||||||||||||||||||||||||||
1100-1170 Gilbert Street (Gilbert/La Palma) | 3/1/2031 | 5.125% | 5.125% | 2,250 | ||||||||||||||||||||||||||||
7817 Woodley Avenue | 8/1/2039 | 4.140% | 4.140% | 3,221 | ||||||||||||||||||||||||||||
3.064% | $ | 1,226,415 |
Debt Composition: | ||||||||||||||||||||||||||||||||
Category | Weighted Average Term Remaining (yrs)(7) | Stated Interest Rate | Effective Interest Rate | Balance | % of Total | |||||||||||||||||||||||||||
Fixed | 6.6 | 3.13% | 3.13% | $ | 1,167,916 | 95% | ||||||||||||||||||||||||||
Variable | 2.3 | LIBOR + 1.70% | 1.81% | $ | 58,499 | 5% | ||||||||||||||||||||||||||
Secured | 4.3 | 3.04% | $ | 126,415 | 10% | |||||||||||||||||||||||||||
Unsecured | 6.7 | 3.07% | $ | 1,100,000 | 90% |
First Quarter 2021 Supplemental Financial Reporting Package | Page 18 | ![]() | ||||||
Debt Summary (Continued). | ||||||||
(unaudited and dollars in thousands) |
Debt Maturity Schedule: | ||||||||||||||||||||||||||||||||
Year | Secured(8) | Unsecured | Total | % Total | Effective Interest Rate | |||||||||||||||||||||||||||
2021 | $ | — | $ | — | $ | — | — | % | — | % | ||||||||||||||||||||||
2022 | — | — | — | — | % | — | % | |||||||||||||||||||||||||
2023 | 65,003 | 225,000 | 290,003 | 24 | % | 2.384 | % | |||||||||||||||||||||||||
2024 | 13,710 | — | 13,710 | 1 | % | 4.387 | % | |||||||||||||||||||||||||
2025 | — | 250,000 | 250,000 | 20 | % | 4.304 | % | |||||||||||||||||||||||||
2026 | 7,100 | — | 7,100 | 1 | % | 3.900 | % | |||||||||||||||||||||||||
2027 | 20,777 | 125,000 | 145,777 | 12 | % | 3.929 | % | |||||||||||||||||||||||||
2028 | 14,354 | — | 14,354 | 1 | % | 3.858 | % | |||||||||||||||||||||||||
2029 | — | 25,000 | 25,000 | 2 | % | 3.880 | % | |||||||||||||||||||||||||
2030 | — | 400,000 | 400,000 | 33 | % | 2.125 | % | |||||||||||||||||||||||||
Thereafter | 5,471 | 75,000 | 80,471 | 6 | % | 4.065 | % | |||||||||||||||||||||||||
Total | $ | 126,415 | $ | 1,100,000 | $ | 1,226,415 | 100 | % | 3.064 | % |
First Quarter 2021 Supplemental Financial Reporting Package | Page 19 | ![]() | ||||||
Operations. | ||||||||
Quarterly Results |
First Quarter 2021 Supplemental Financial Reporting Package | Page 20 | ![]() | ||||||
Portfolio Overview. | ||||||||
At March 31, 2021 | (unaudited results) | |||||||
Consolidated Portfolio: |
Rentable Square Feet | Ending Occupancy % | In-Place ABR(2) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Market | # Properties | Stabilized Same Properties Portfolio | Non-Stabilized Same Properties Portfolio | Total Portfolio | Stabilized Same Properties Portfolio | Non-Stabilized Same Properties Portfolio | Total Portfolio | Total Portfolio Excluding Repositioning(1) | Total (in 000’s) | Per Square Foot | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Central LA | 16 | 1,892,144 | 657,530 | 2,549,674 | 99.5 | % | 100.0 | % | 99.6 | % | 99.6 | % | $ | 24,084 | $9.48 | |||||||||||||||||||||||||||||||||||||||||||||||
Greater San Fernando Valley | 47 | 3,758,135 | 1,369,890 | 5,128,025 | 99.1 | % | 90.5 | % | 96.8 | % | 98.2 | % | 56,264 | $11.33 | ||||||||||||||||||||||||||||||||||||||||||||||||
Mid-Counties | 21 | 1,000,336 | 1,549,038 | 2,549,374 | 98.6 | % | 78.7 | % | 86.5 | % | 94.8 | % | 24,254 | $11.00 | ||||||||||||||||||||||||||||||||||||||||||||||||
San Gabriel Valley | 23 | 3,314,010 | 235,127 | 3,549,137 | 99.8 | % | 70.0 | % | 97.8 | % | 99.8 | % | 30,370 | $8.75 | ||||||||||||||||||||||||||||||||||||||||||||||||
South Bay | 41 | 3,070,976 | 1,378,199 | 4,449,175 | 98.5 | % | 86.0 | % | 94.7 | % | 98.0 | % | 48,804 | $11.59 | ||||||||||||||||||||||||||||||||||||||||||||||||
Los Angeles County | 148 | 13,035,601 | 5,189,784 | 18,225,385 | 99.2 | % | 86.1 | % | 95.4 | % | 98.2 | % | 183,776 | $10.57 | ||||||||||||||||||||||||||||||||||||||||||||||||
North Orange County | 13 | 1,150,348 | 179,127 | 1,329,475 | 99.1 | % | 100.0 | % | 99.2 | % | 99.2 | % | 13,505 | $10.24 | ||||||||||||||||||||||||||||||||||||||||||||||||
OC Airport | 7 | 463,373 | 122,060 | 585,433 | 98.9 | % | 100.0 | % | 99.1 | % | 99.1 | % | 7,010 | $12.08 | ||||||||||||||||||||||||||||||||||||||||||||||||
South Orange County | 4 | 329,458 | 27,960 | 357,418 | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 3,681 | $10.30 | ||||||||||||||||||||||||||||||||||||||||||||||||
West Orange County | 8 | 939,996 | 183,177 | 1,123,173 | 100.0 | % | 34.1 | % | 89.2 | % | 100.0 | % | 9,358 | $9.34 | ||||||||||||||||||||||||||||||||||||||||||||||||
Orange County | 32 | 2,883,175 | 512,324 | 3,395,499 | 99.5 | % | 76.4 | % | 96.0 | % | 99.5 | % | 33,554 | $10.30 | ||||||||||||||||||||||||||||||||||||||||||||||||
Inland Empire East | 1 | 33,258 | — | 33,258 | 100.0 | % | — | % | 100.0 | % | 100.0 | % | 222 | $6.69 | ||||||||||||||||||||||||||||||||||||||||||||||||
Inland Empire West | 29 | 3,658,089 | 1,425,645 | 5,083,734 | 99.7 | % | 94.2 | % | 98.1 | % | 99.8 | % | 45,027 | $9.03 | ||||||||||||||||||||||||||||||||||||||||||||||||
San Bernardino County | 30 | 3,691,347 | 1,425,645 | 5,116,992 | 99.7 | % | 94.2 | % | 98.1 | % | 99.8 | % | 45,249 | $9.01 | ||||||||||||||||||||||||||||||||||||||||||||||||
Ventura | 16 | 2,403,672 | — | 2,403,672 | 94.9 | % | — | % | 94.9 | % | 94.9 | % | 23,173 | $10.16 | ||||||||||||||||||||||||||||||||||||||||||||||||
Ventura County | 16 | 2,403,672 | — | 2,403,672 | 94.9 | % | — | % | 94.9 | % | 94.9 | % | 23,173 | $10.16 | ||||||||||||||||||||||||||||||||||||||||||||||||
Central San Diego | 17 | 1,190,294 | 239,869 | 1,430,163 | 97.5 | % | 65.2 | % | 92.1 | % | 98.4 | % | 18,158 | $13.79 | ||||||||||||||||||||||||||||||||||||||||||||||||
North County San Diego | 14 | 1,516,110 | — | 1,516,110 | 96.0 | % | — | % | 96.0 | % | 96.0 | % | 17,193 | $11.81 | ||||||||||||||||||||||||||||||||||||||||||||||||
San Diego County | 31 | 2,706,404 | 239,869 | 2,946,273 | 96.7 | % | 65.2 | % | 94.1 | % | 97.1 | % | 35,351 | $12.75 | ||||||||||||||||||||||||||||||||||||||||||||||||
CONSOLIDATED TOTAL / WTD AVG | 257 | 24,720,199 | 7,367,622 | 32,087,821 | 98.6 | % | 86.3 | % | 95.8 | % | 98.3 | % | $ | 321,103 | $10.45 |
First Quarter 2021 Supplemental Financial Reporting Package | Page 21 | ![]() | ||||||
Occupancy and Leasing Trends. | ||||||||
(unaudited results, data represents consolidated portfolio only) | ||||||||
Occupancy by County: |
Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | ||||||||||||||||||||||||||||
Ending Occupancy:(1) | ||||||||||||||||||||||||||||||||
Los Angeles County | 95.4% | 97.2% | 98.2% | 97.3% | 97.2% | |||||||||||||||||||||||||||
Orange County | 96.0% | 95.7% | 94.4% | 91.6% | 91.2% | |||||||||||||||||||||||||||
San Bernardino County | 98.1% | 87.5% | 96.8% | 95.6% | 96.9% | |||||||||||||||||||||||||||
Ventura County | 94.9% | 94.6% | 96.3% | 95.0% | 96.8% | |||||||||||||||||||||||||||
San Diego County | 94.1% | 95.9% | 96.3% | 90.3% | 90.5% | |||||||||||||||||||||||||||
Total/Weighted Average | 95.8% | 95.2% | 97.2% | 95.4% | 95.6% | |||||||||||||||||||||||||||
Consolidated Portfolio RSF | 32,087,821 | 31,501,111 | 27,711,078 | 27,633,778 | 27,303,260 |
Leasing Activity: | ||||||||||||||||||||||||||||||||
Three Months Ended | ||||||||||||||||||||||||||||||||
Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | ||||||||||||||||||||||||||||
Leasing Activity (SF):(2) | ||||||||||||||||||||||||||||||||
New leases(2) | 909,694 | 672,134 | 987,176 | 550,977 | 424,435 | |||||||||||||||||||||||||||
Renewal leases(2) | 1,049,547 | 1,132,687 | 575,003 | 818,529 | 1,169,923 | |||||||||||||||||||||||||||
Gross leasing | 1,959,241 | 1,804,821 | 1,562,179 | 1,369,506 | 1,594,358 | |||||||||||||||||||||||||||
Expiring leases | 1,392,181 | 1,839,669 | 998,277 | 1,328,499 | 1,486,424 | |||||||||||||||||||||||||||
Expiring leases - placed into repositioning | 389,486 | 13,020 | — | — | 198,762 | |||||||||||||||||||||||||||
Net absorption | 177,574 | (47,868) | 563,902 | 41,007 | (90,828) | |||||||||||||||||||||||||||
Retention rate(3) | 79 | % | 79 | % | 68 | % | 67 | % | 81 | % | ||||||||||||||||||||||
Weighted Average New / Renewal Leasing Spreads: | ||||||||||||||||||||||||||||||||
Three Months Ended | ||||||||||||||||||||||||||||||||
Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | ||||||||||||||||||||||||||||
GAAP Rent Change | 47.1% | 29.9% | 26.8% | 32.3% | 36.6% | |||||||||||||||||||||||||||
Cash Rent Change | 32.7% | 18.1% | 17.4% | 18.2% | 24.4% |
First Quarter 2021 Supplemental Financial Reporting Package | Page 22 | ![]() | ||||||
Leasing Statistics. | ||||||||
(unaudited results, data represents consolidated portfolio only) | ||||||||
Leasing Activity: |
# Leases Signed | SF of Leasing | Weighted Average Lease Term (Years) | ||||||||||||||||||
First Quarter 2021: | ||||||||||||||||||||
New | 52 | 909,694 | 5.2 | |||||||||||||||||
Renewal | 70 | 1,049,547 | 4.6 | |||||||||||||||||
Total/Weighted Average | 122 | 1,959,241 | 4.9 |
Change in Annual Rental Rates and Turnover Costs for Current Quarter Leases: | ||||||||||||||||||||||||||||||||||||||||||||||||||
GAAP Rent | Cash Rent | |||||||||||||||||||||||||||||||||||||||||||||||||
First Quarter 2021: | Current Lease | Prior Lease | Rent Change - GAAP | Weighted Avg. Abatement (Months) | Starting Cash Rent - Current Lease | Expiring Cash Rent - Prior Lease | Rent Change - Cash | Turnover Costs per SF(2) | ||||||||||||||||||||||||||||||||||||||||||
New(1) | $13.71 | $9.54 | 43.8% | 1.6 | $13.02 | $10.27 | 26.7% | $5.65 | ||||||||||||||||||||||||||||||||||||||||||
Renewal | $12.71 | $8.56 | 48.5% | 1.5 | $12.41 | $9.17 | 35.4% | $1.60 | ||||||||||||||||||||||||||||||||||||||||||
Weighted Average | $13.00 | $8.84 | 47.1% | 1.5 | $12.58 | $9.48 | 32.7% | $2.77 |
Uncommenced Leases by County: | ||||||||||||||||||||||||||||||||||||||
Market | Uncommenced Renewal Leases: Leased SF(3) | Uncommenced New Leases: Leased SF(3) | Percent Leased | ABR Under Uncommenced Leases (in thousands)(4)(5) | In-Place + Uncommenced ABR (in thousands)(4)(5) | In-Place + Uncommenced ABR per SF(5) | ||||||||||||||||||||||||||||||||
Los Angeles County | 799,294 | 62,984 | 95.3% | $ | 1,345 | $ | 184,177 | $10.61 | ||||||||||||||||||||||||||||||
Orange County | 135,442 | — | 98.7% | 369 | 34,866 | $10.40 | ||||||||||||||||||||||||||||||||
San Bernardino County | 78,798 | — | 98.1% | 178 | 45,427 | $9.05 | ||||||||||||||||||||||||||||||||
San Diego County | 119,202 | 1,138 | 94.2% | 272 | 35,624 | $12.84 | ||||||||||||||||||||||||||||||||
Ventura County | 33,748 | 47,884 | 96.9% | 509 | 23,682 | $10.17 | ||||||||||||||||||||||||||||||||
Total/Weighted Average | 1,166,484 | 112,006 | 96.1% | $ | 2,673 | $ | 323,776 | $10.50 |
First Quarter 2021 Supplemental Financial Reporting Package | Page 23 | ![]() | ||||||
Leasing Statistics (Continued). | ||||||||
(unaudited results, data represents consolidated portfolio only) | ||||||||
Lease Expiration Schedule as of March 31, 2021: |
Year of Lease Expiration | # of Leases Expiring | Total Rentable Square Feet | In-Place + Uncommenced ABR (in thousands) | In-Place + Uncommenced ABR per SF | ||||||||||||||||||||||
Available | — | 577,031 | $ | — | $— | |||||||||||||||||||||
Repositioning/Redevelopment(1) | — | 668,334 | — | $— | ||||||||||||||||||||||
MTM Tenants | 22 | 163,496 | 2,728 | $16.68 | ||||||||||||||||||||||
2021 | 274 | 3,602,125 | 35,477 | $9.85 | ||||||||||||||||||||||
2022 | 400 | 4,644,177 | 51,568 | $11.10 | ||||||||||||||||||||||
2023 | 341 | 4,481,064 | 50,987 | $11.38 | ||||||||||||||||||||||
2024 | 214 | 4,893,209 | 50,431 | $10.31 | ||||||||||||||||||||||
2025 | 118 | 3,823,586 | 38,130 | $9.97 | ||||||||||||||||||||||
2026 | 81 | 4,203,229 | 39,942 | $9.50 | ||||||||||||||||||||||
2027 | 14 | 934,640 | 9,387 | $10.04 | ||||||||||||||||||||||
2028 | 11 | 591,074 | 5,551 | $9.39 | ||||||||||||||||||||||
2029 | 9 | 550,549 | 6,894 | $12.52 | ||||||||||||||||||||||
2030 | 11 | 1,212,453 | 13,184 | $10.87 | ||||||||||||||||||||||
Thereafter | 20 | 1,742,854 | 19,497 | $11.19 | ||||||||||||||||||||||
Total Portfolio | 1,515 | 32,087,821 | $ | 323,776 | $10.50 |
First Quarter 2021 Supplemental Financial Reporting Package | Page 24 | ![]() | ||||||
Top Tenants and Lease Segmentation. | ||||||||
(unaudited results, data represents consolidated portfolio only) | ||||||||
Top 20 Tenants: |
Tenant | Submarket | Leased Rentable SF | % of In-Place + Uncommenced ABR | In-Place + Uncommenced ABR per SF | Lease Expiration | |||||||||||||||||||||||||||
Federal Express Corporation | Multiple Submarkets(1) | 527,861 | 2.5% | $15.87(1) | 11/30/2032 (1) | |||||||||||||||||||||||||||
Unified Natural Foods, Inc. | Central LA | 695,120 | 1.7% | $7.76 | 5/8/2038 | |||||||||||||||||||||||||||
Michael Kors (USA), Inc. | Mid-Counties | 565,619 | 1.6% | $8.94 | 11/30/2026 | |||||||||||||||||||||||||||
Cosmetic Laboratories of America, LLC | Greater San Fernando Valley | 319,348 | 0.8% | $8.64 | 6/30/2027 | |||||||||||||||||||||||||||
Global Mail. Inc. | Mid-Counties | 240,959 | 0.8% | $10.68 | 6/30/2030 | |||||||||||||||||||||||||||
Omega/Cinema Props, Inc. | Central LA | 246,588 | 0.8% | $10.02 | 12/31/2029 | |||||||||||||||||||||||||||
32 Cold, LLC | Central LA | 149,157 | 0.7% | $16.00 | 3/31/2026 (2) | |||||||||||||||||||||||||||
Dendreon Pharmaceuticals, LLC | West Orange County | 184,000 | 0.7% | $12.36 | 2/28/2030 | |||||||||||||||||||||||||||
Command Logistic Services | South Bay | 228,903 | 0.7% | $9.60 | 9/30/2025 | |||||||||||||||||||||||||||
Lumber Liquidators Services, LLC | San Gabriel Valley | 504,016 | 0.6% | $4.14 | 11/30/2024 | |||||||||||||||||||||||||||
Top 10 Tenants | 3,661,571 | 10.9% | $9.64 | |||||||||||||||||||||||||||||
Top 11 - 20 Tenants | 2,166,974 | 5.9% | $8.80 | |||||||||||||||||||||||||||||
Total Top 20 Tenants | 5,828,545 | 16.8% | $9.32 |
Lease Segmentation by Size: | ||||||||||||||||||||||||||||||||||||||||||||||||||
Square Feet | Number of Leases | Leased Rentable SF | Rentable Square Feet | Leased % | Leased % Excluding Repositioning | In-Place + Uncommenced ABR (in thousands)(1) | % of In-Place + Uncommenced ABR | In-Place + Uncommenced ABR per SF(1) | ||||||||||||||||||||||||||||||||||||||||||
<4,999 | 680 | 1,532,181 | 1,705,668 | 89.8% | 93.3% | $ | 25,108 | 7.8% | $16.39 | |||||||||||||||||||||||||||||||||||||||||
5,000 - 9,999 | 227 | 1,620,287 | 1,773,533 | 91.4% | 95.0% | 21,803 | 6.7% | $13.46 | ||||||||||||||||||||||||||||||||||||||||||
10,000 - 24,999 | 311 | 5,003,614 | 5,260,543 | 95.1% | 97.3% | 61,995 | 19.2% | $12.39 | ||||||||||||||||||||||||||||||||||||||||||
25,000 - 49,999 | 145 | 5,251,290 | 5,442,692 | 96.5% | 98.9% | 56,394 | 17.4% | $10.74 | ||||||||||||||||||||||||||||||||||||||||||
>50,000 | 152 | 17,435,084 | 17,905,385 | 97.4% | 99.4% | 158,476 | 48.9% | $9.09 | ||||||||||||||||||||||||||||||||||||||||||
Total / Weighted Average | 1,515 | 30,842,456 | 32,087,821 | 96.1% | 98.4% | $ | 323,776 | 100.0% | $10.50 |
First Quarter 2021 Supplemental Financial Reporting Package | Page 25 | ![]() | ||||||
Capital Expenditure Summary. | ||||||||
(unaudited results, in thousands, except square feet and per square foot data) | ||||||||
Three Months Ended March 31, 2021 |
Year to Date | ||||||||||||||||||||
Total | SF(1) | PSF | ||||||||||||||||||
Tenant Improvements: | ||||||||||||||||||||
New Leases‐1st Generation | $ | 353 | 262,025 | $ | 1.35 | |||||||||||||||
New Leases‐2nd Generation | 4 | 27,125 | $ | 0.15 | ||||||||||||||||
Renewals | 58 | 267,945 | $ | 0.22 | ||||||||||||||||
Total Tenant Improvements | $ | 415 | ||||||||||||||||||
Leasing Commissions & Lease Costs: | ||||||||||||||||||||
New Leases‐1st Generation | $ | 1,016 | 420,285 | $ | 2.42 | |||||||||||||||
New Leases‐2nd Generation | 2,017 | 574,555 | $ | 3.51 | ||||||||||||||||
Renewals | 1,449 | 1,077,108 | $ | 1.35 | ||||||||||||||||
Total Leasing Commissions & Lease Costs | $ | 4,482 | ||||||||||||||||||
Total Recurring Capex | $ | 2,541 | 31,727,816 | $ | 0.08 | |||||||||||||||
Recurring Capex % of NOI | 3.3 | % | ||||||||||||||||||
Recurring Capex % of Rental Revenue | 3.1 | % | ||||||||||||||||||
Nonrecurring Capex: | ||||||||||||||||||||
Repositioning and Redevelopment in Process(2) | $ | 13,191 | ||||||||||||||||||
Unit Renovation(3) | 474 | |||||||||||||||||||
Other(4) | 2,919 | |||||||||||||||||||
Total Nonrecurring Capex | $ | 16,584 | 14,760,489 | $ | 1.12 | |||||||||||||||
Other Capitalized Costs(5) | $ | 2,400 |
First Quarter 2021 Supplemental Financial Reporting Package | Page 26 | ![]() | ||||||
Properties and Space Under Repositioning/Redevelopment.(1) | ||||||||
As of March 31, 2021 | (unaudited results, in thousands, except square feet) | |||||||
Repositioning | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Est. Constr. Period(1) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Property (Submarket) | Total Property RSF(2) | Repo/ Lease-Up RSF(2) | Total Property Leased % 3/31/2021 | Start | Target Complet. | Est. Stabilization Period(1)(3) | Purch. Price(1) | Projected Repo Costs(1) | Projected Total Invest.(1) | Cumulative Investment to Date(1) | Actual Cash NOI 1Q-2021(1) | Est. An. Stabilized Cash NOI(1) | Est. Stabilized Yield(1) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
SIGNIFICANT CURRENT REPOSITIONING IN PROCESS: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
12821 Knott Street (West OC)(4) | 165,171 | 165,171 | 0% | 1Q-19 | 3Q-21 | 4Q-21 | $ | 20,673 | $ | 11,687 | $ | 32,360 | $ | 24,876 | $ | 23 | $ | 1,800 | 5.6% | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Rancho Pacifica - Bldgs 1 & 6 (South Bay)(5) | 488,114 | 488,114 | 87% | 4Q-20 | 3Q-21 | 3Q-21 | $ | 89,123 | $ | 9,093 | $ | 98,216 | $ | 91,949 | $ | 638 | $ | 5,876 | 6.0% | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
12133 Greenstone Ave. (Mid-Counties)(6) | 12,586 | 12,586 | 0% | 1Q-21 | 4Q-21 | 2Q-22 | $ | 5,657 | $ | 6,973 | $ | 12,630 | $ | 5,818 | $ | — | $ | 783 | 6.2% | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
16221 Arthur Street (Mid-Counties)(7) | 61,372 | 61,372 | 100% | 1Q-21 | 2Q-21 | 2Q-21 | $ | 6,280 | $ | 1,525 | $ | 7,805 | $ | 6,953 | $ | 14 | $ | 613 | 7.9% | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
8745-8775 Production Ave. (Central SD) | 46,820 | 26,200 | 47% | 1Q-21 | 2Q-21 | 3Q-21 | $ | 8,050 | $ | 1,419 | $ | 9,469 | $ | 9,056 | $ | 34 | $ | 657 | 6.9% | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
TOTAL | 774,063 | 753,443 | $ | 129,783 | $ | 30,697 | $ | 160,480 | $ | 138,652 | $ | 709 | $ | 9,729 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
OTHER CURRENT REPOSITIONING IN PROCESS: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other Repositioning - 17 properties with estimated costs < $1 million individually(8) | $ | 10,460 | $ | 3,836 | 5.5%-6.5% | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
LEASE-UP: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
The Merge (Inland Empire West) | 333,544 | 333,544 | 75% | 2Q-19 | 4Q-20 | 3Q-21 | $ | 23,827 | $ | 33,018 | $ | 56,845 | $ | 54,855 | $ | 146 | $ | 3,341 | 5.9% | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
FUTURE REPOSITIONING: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
11529-11547 Tuxford St. (SF Valley) | 29,730 | 29,730 | 92% | 2Q-21 | 4Q-21 | 1Q-22 | $ | 5,025 | $ | 1,730 | $ | 6,755 | $ | 5,082 | $ | 34 | $ | 388 | 5.7% | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
11600 Los Nietos Road (Mid-Counties) | 103,982 | 103,982 | 100% | 2Q-21 | 1Q-22 | 2Q-22 | $ | 17,014 | $ | 5,689 | $ | 22,703 | $ | 17,026 | $ | 200 | $ | 1,103 | 4.9% | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
15650-15700 Avalon Blvd. (South Bay) | 98,259 | 98,259 | 92% | 2Q-21 | 3Q-21 | 1Q-22 | $ | 28,273 | $ | 4,805 | $ | 33,078 | $ | 28,429 | $ | 245 | $ | 1,752 | 5.3% | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
9920-10020 Pioneer Blvd (Mid-Counties) | 157,669 | 157,669 | 5% | 3Q-21 | 3Q-22 | 1Q-23 | $ | 23,598 | $ | 9,273 | $ | 32,871 | $ | 23,598 | $ | (8) | $ | 1,668 | 5.1% | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
3441 MacArthur Blvd. (OC Airport) | 122,060 | 122,060 | 100% | 4Q-21 | 2Q-22 | 4Q-22 | $ | 9,038 | $ | 5,767 | $ | 14,805 | $ | 9,083 | $ | 225 | $ | 1,200 | 8.1% | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
8985 Crestmar Point (Central SD) | 56,550 | 56,550 | 87% | 4Q-21 | 2Q-22 | 4Q-22 | $ | 8,045 | $ | 3,166 | $ | 11,211 | $ | 8,045 | $ | 70 | $ | 788 | 7.0% | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
TOTAL | 568,250 | 568,250 | $ | 90,993 | $ | 30,430 | $ | 121,423 | $ | 91,263 | $ | 766 | $ | 6,899 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
First Quarter 2021 Supplemental Financial Reporting Package | Page 27 | ![]() | ||||||
Properties and Space Under Repositioning/Redevelopment (Continued).(1) | ||||||||
As of March 31, 2021 | (unaudited results, in thousands, except square feet) | |||||||
Redevelopment | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Est. Constr. Period(1) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Property (Submarket) | Projected RSF(9) | Total Property Leased % 3/31/2021 | Start | Target Complet. | Estimated Stabilization Period(1)(3) | Purchase Price(1) | Projected Redev. Costs(1) | Projected Total Investment(1) | Cumulative Investment to Date(1) | Actual Cash NOI 1Q-2021(1) | Est. Annual Stabilized Cash NOI(1) | Estimated Stabilized Yield(1) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
CURRENT REDEVELOPMENT: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
28901-28903 Avenue Paine (SF Valley) | 111,024 | 0% | 1Q-21 | 4Q-21 | 2Q-22 | $ | 5,515 | $ | 12,262 | $ | 17,776 | $ | 7,795 | $ | — | $ | 1,075 | 6.0% | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
851 Lawrence Drive (Ventura) | 90,772 | 0% | 4Q-19 | 2Q-21 | 4Q-21 | $ | 6,663 | $ | 12,147 | $ | 18,810 | $ | 16,256 | $ | (3) | $ | 1,116 | 5.9% | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
TOTAL | 201,796 | $ | 12,178 | $ | 24,409 | $ | 36,586 | $ | 24,051 | $ | (3) | $ | 2,191 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
FUTURE REDEVELOPMENT: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
415-435 Motor Avenue (SG Valley) | 94,315 | 0% | 2Q-21 | 2Q-22 | 3Q-22 | $ | 7,376 | $ | 10,365 | $ | 17,741 | $ | 7,990 | $ | (23) | $ | 1,003 | 5.7% | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
1055 Sandhill Ave. (South Bay) | 127,853 | 0% | 2Q-21 | 1Q-23 | 3Q-23 | $ | 11,994 | $ | 14,271 | $ | 26,265 | $ | 12,647 | $ | (34) | $ | 1,485 | 5.7% | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
9615 Norwalk Blvd. (Mid-Counties)(10)(11) | 200,365 | 100% | 3Q-21 | 4Q-22 | 2Q-23 | $ | 9,642 | $ | 23,751 | $ | 33,393 | $ | 10,474 | $ | 232 | $ | 2,202 | 6.6% | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
15601 Avalon Blvd. (South Bay)(10)(12) | 87,300 | 100% | 3Q-21 | 4Q-22 | 1Q-23 | $ | 16,061 | $ | 10,039 | $ | 26,100 | $ | 16,237 | $ | (15) | $ | 1,305 | 5.0% | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
4416 Azusa Canyon Rd. (SG Valley)(10) | 129,835 | 0% | 4Q-21 | 3Q-22 | 1Q-23 | $ | 12,277 | $ | 13,271 | $ | 25,548 | $ | 12,427 | $ | (4) | $ | 1,347 | 5.3% | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
* | 12752-12822 Monarch St. (West OC)(10)(13) | 275,695 | 100% | 4Q-21 | 4Q-22 | 1Q-23 | $ | 34,098 | $ | 11,821 | $ | 45,919 | $ | 35,738 | $ | 274 | $ | 2,907 | 6.3% | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
900 East Ball Road (North OC)(10) | 105,100 | 100% | 4Q-21 | 4Q-22 | 1Q-23 | $ | 17,358 | $ | 11,403 | $ | 28,761 | $ | 17,383 | $ | 132 | $ | 1,325 | 4.6% | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
15010 Don Julian Rd. (SG Valley)(10) | 219,242 | 100% | 1Q-22 | 2Q-23 | 4Q-23 | $ | 22,891 | $ | 21,305 | $ | 44,196 | $ | 22,891 | $ | 121 | $ | 2,499 | 5.7% | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
8888-8892 Balboa Ave. (Central SD)(10) | 124,700 | 33% | 1Q-22 | 4Q-22 | 2Q-23 | $ | 19,940 | $ | 15,792 | $ | 35,732 | $ | 19,940 | $ | 474 | $ | 2,014 | 5.6% | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
12772 San Fernando Road (SF Valley)(10) | 146,746 | 52% | 3Q-22 | 3Q-23 | 1Q-24 | $ | 22,114 | $ | 16,247 | $ | 38,361 | $ | 22,168 | $ | 209 | $ | 1,740 | 4.5% | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
TOTAL | 1,511,151 | $ | 173,751 | $ | 148,265 | $ | 322,016 | $ | 177,895 | $ | 1,366 | $ | 17,827 |
First Quarter 2021 Supplemental Financial Reporting Package | Page 28 | ![]() | ||||||
Properties and Space Under Repositioning/Redevelopment (Continued).(1) | ||||||||
As of March 31, 2021 | (unaudited results, in thousands, except square feet) | |||||||
Stabilized Repositionings: Properties and Space | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Property (Submarket) | Rentable Square Feet | Stabilized Period | Stabilized Yield | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2455 Conejo Spectrum St.(Ventura) | 98,218 | 1Q-20 | 5.3% | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
635 8th Street (SF Valley) | 72,250 | 1Q-20 | 5.0% | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
16121 Carmenita Road (Mid-Counties) | 109,780 | 3Q-20 | 5.9% | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
10015 Waples Court (Central SD) | 106,412 | 3Q-20 | 5.7% | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
1210 N. Red Gum Street (North OC) | 64,570 | 3Q-20 | 6.9% | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
7110 E. Rosecrans Avenue - Unit B (South Bay) | 37,417 | 3Q-20 | n/a(14) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
29003 Avenue Sherman (SF Valley) | 68,123 | 4Q-20 | 5.1% | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
727 Kingshill Place (South Bay) | 46,005 | 4Q-20 | 4.9% |
First Quarter 2021 Supplemental Financial Reporting Package | Page 29 | ![]() | ||||||
Current Year Acquisitions and Dispositions Summary. | ||||||||
As of March 31, 2021 | (unaudited results) |
2021 Current Period Acquisitions | ||||||||||||||||||||||||||||||||||||||||||||
Acquisition Date | Property Address | County | Submarket | Rentable Square Feet | Acquisition Price ($ in MM) | Occ. % at Acquisition | Occ.% at Mar 31, 2021 | |||||||||||||||||||||||||||||||||||||
1/5/2021 | 15010 Don Julian Road | Los Angeles | San Gabriel Valley | 92,925 | $ | 22.20 | 100% | 100% | ||||||||||||||||||||||||||||||||||||
1/11/2021 | 5002-5018 Lindsay Court | San Bernardino | Inland Empire - West | 64,960 | 12.65 | 100% | 100% | |||||||||||||||||||||||||||||||||||||
1/14/2021 | 514 East C Street | Los Angeles | South Bay | 3,436 | 9.95 | 100% | 100% | |||||||||||||||||||||||||||||||||||||
1/26/2021 | 17907-18001 Figueroa Street | Los Angeles | South Bay | 74,810 | 20.20 | 100% | 100% | |||||||||||||||||||||||||||||||||||||
1/27/2021 | 7817 Woodley Avenue(1) | Los Angeles | Greater San Fernando Valley | 36,900 | 9.96 | 100% | 100% | |||||||||||||||||||||||||||||||||||||
2/4/2021 | 8888-8892 Balboa Avenue | San Diego | Central San Diego | 86,637 | 19.80 | 56% | 33% | |||||||||||||||||||||||||||||||||||||
2/19/2021 | 9920-10020 Pioneer Boulevard | Los Angeles | Mid-Counties | 157,669 | 23.50 | 5% | 5% | |||||||||||||||||||||||||||||||||||||
3/19/2021 | 2553 Garfield Avenue | Los Angeles | Los Angeles - Central | 25,615 | 3.90 | 100% | 100% | |||||||||||||||||||||||||||||||||||||
3/19/2021 | 6655 East 26th Street | Los Angeles | Los Angeles - Central | 47,500 | 6.50 | 100% | 100% | |||||||||||||||||||||||||||||||||||||
3/19/2021 | 560 Main Street | Orange | Orange County - North | 17,000 | 2.60 | 100% | 100% | |||||||||||||||||||||||||||||||||||||
3/23/2021 | 4225 Etiwanda Avenue | San Bernardino | Inland Empire - West | 134,500 | 32.25 | 100% | 100% | |||||||||||||||||||||||||||||||||||||
Total 2021 Current Period Acquisitions: | 741,952 | $ | 163.51 | |||||||||||||||||||||||||||||||||||||||||
2021 Subsequent Period Acquisitions | ||||||||||||||||||||||||||||||||||||||||||||
Acquisition Date | Property Address | County | Submarket | Rentable Square Feet | Acquisition Price ($ in MM) | Occ. % at Acquisition | Occ.% at Mar 31, 2021 | |||||||||||||||||||||||||||||||||||||
4/14/2021 | 12118 Bloomfield Avenue | Los Angeles | Mid-Counties | 63,000 | $ | 16.65 | 100% | n/a | ||||||||||||||||||||||||||||||||||||
4/15/2021 | 256 Alondra Boulevard | Los Angeles | South Bay | 2,456 | 11.25 | 100% | n/a | |||||||||||||||||||||||||||||||||||||
Total 2021 YTD Acquisitions | 807,408 | $ | 191.41 | |||||||||||||||||||||||||||||||||||||||||
2021 Current Period Dispositions | |||||||||||||||||||||||||||||||||||
Disposition Date | Property Address | County | Submarket | Rentable Square Feet | Sale Price ($ in MM) | ||||||||||||||||||||||||||||||
2/12/2021 | 14723-14825 Oxnard | Los Angeles | Greater San Fernando Valley | 77,790 | $ | 19.25 | |||||||||||||||||||||||||||||
3/15/2021 | 6760 Central Avenue, Unit B | San Bernardino | Inland Empire East | 9,943 | 1.53 | ||||||||||||||||||||||||||||||
Total 2021 Current Period Dispositions: | 87,733 | $ | 20.78 | ||||||||||||||||||||||||||||||||
First Quarter 2021 Supplemental Financial Reporting Package | Page 30 | ![]() | ||||||
Net Asset Value Components. | ||||||||
As of March 31, 2021 | (unaudited and in thousands, except share data) |
Net Operating Income | ||||||||
Pro Forma Net Operating Income (NOI)(1) | Three Months Ended Mar 31, 2021 | |||||||
Total operating rental income | $99,644 | |||||||
Property operating expenses | (23,575) | |||||||
Pro forma effect of uncommenced leases(2) | 500 | |||||||
Pro forma effect of acquisitions(3) | 662 | |||||||
Pro forma effect of dispositions(4) | (110) | |||||||
Pro forma NOI effect of significant properties classified as repositioning, redevelopment and lease-up(5) | 7,014 | |||||||
Pro Forma NOI | 84,135 | |||||||
Amortization of net below-market lease intangibles | (2,712) | |||||||
Straight line rental revenue adjustment | (4,199) | |||||||
Pro Forma Cash NOI | $77,224 | |||||||
Balance Sheet Items | ||||||||
Other assets and liabilities | March 31, 2021 | |||||||
Cash and cash equivalents | $123,933 | |||||||
Restricted cash | 47 | |||||||
Rents and other receivables, net | 7,737 | |||||||
Other assets | 27,272 | |||||||
Acquisition related deposits | 10,075 | |||||||
Accounts payable, accrued expenses and other liabilities | (41,871) | |||||||
Dividends payable | (33,813) | |||||||
Tenant security deposits | (34,367) | |||||||
Prepaid rents | (11,241) | |||||||
Estimated remaining cost to complete repositioning/redevelopment projects | (210,634) | |||||||
Total other assets and liabilities | $(162,862) | |||||||
Debt and Shares Outstanding | ||||||||
Total consolidated debt(6) | $1,226,415 | |||||||
Preferred stock/units - liquidation preference | $319,068 | |||||||
Common shares outstanding(7) | 133,657,612 | |||||||
Operating partnership units outstanding(8) | 6,641,742 | |||||||
Total common shares and operating partnership units outstanding | 140,299,354 |
First Quarter 2021 Supplemental Financial Reporting Package | Page 31 | ![]() | ||||||
Notes and Definitions. | ||||||||
First Quarter 2021 Supplemental Financial Reporting Package | Page 32 | ![]() | ||||||
Notes and Definitions. | ||||||||
March 31, 2021 | |||||||||||||||||
Current Period Covenant | Credit Facility, $225M Term Loan and $150M Term Loan | Senior Notes ($100M, $125M, $25M, $75M) | |||||||||||||||
Maximum Leverage Ratio | less than 60% | 22.4% | 23.7% | ||||||||||||||
Maximum Secured Leverage Ratio | less than 45% | 2.3% | N/A | ||||||||||||||
Maximum Secured Leverage Ratio | less than 40% | N/A | 2.4% | ||||||||||||||
Maximum Secured Recourse Debt | less than 15% | N/A | —% | ||||||||||||||
Minimum Tangible Net Worth | $2,938,639 | $4,023,480 | N/A | ||||||||||||||
Minimum Tangible Net Worth | $2,850,049 | N/A | $4,023,480 | ||||||||||||||
Minimum Fixed Charge Coverage Ratio | at least 1.50 to 1.00 | 4.8 to 1.00 | 4.8 to 1.00 | ||||||||||||||
Unencumbered Leverage Ratio | less than 60% | 22.4% | 23.7% | ||||||||||||||
Unencumbered Interest Coverage Ratio | at least 1.75 to 1.00 | 8.03 to 1.00 | 8.03 to 1.00 |
March 31, 2021 | |||||||||||
Current Period Covenant | $400M 2.125% Senior Notes | ||||||||||
Maximum Debt to Total Asset Ratio | less than 60% | 22.3% | |||||||||
Maximum Secured Debt to Total Asset Ratio | less than 40% | 2.3% | |||||||||
Minimum Debt Service Coverage Ratio | at least 1.50 to 1.00 | 4.5 to 1.00 | |||||||||
Minimum Unencumbered Assets to Unsecured Debt Ratio | at least 1.50 to 1.00 | 4.5 to 1.00 |
For the Three Months Ended | |||||||||||||||||||||||||||||
Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | |||||||||||||||||||||||||
EBITDAre | $ | 64,679 | $ | 57,434 | $ | 53,638 | $ | 52,080 | $ | 50,244 | |||||||||||||||||||
Amortization of above/below market lease intangibles | (2,712) | (2,711) | (2,751) | (2,669) | (2,402) | ||||||||||||||||||||||||
Non-cash stock compensation | 4,261 | 2,491 | 3,101 | 3,709 | 3,570 | ||||||||||||||||||||||||
Loss on extinguishment of debt | — | 104 | — | — | — | ||||||||||||||||||||||||
Straight line rental revenue adj. | (4,199) | (434) | (3,088) | (6,212) | (1,672) | ||||||||||||||||||||||||
Capitalized payments | (1,590) | (1,331) | (1,279) | (1,294) | (1,185) | ||||||||||||||||||||||||
Recurring capital expenditures | (2,541) | (2,671) | (1,380) | (1,323) | (1,575) | ||||||||||||||||||||||||
2nd gen. tenant improvements & leasing commissions | (3,528) | (1,741) | (2,243) | (2,000) | (1,727) | ||||||||||||||||||||||||
Cash flow for fixed charge coverage calculation | 54,370 | 51,141 | 45,998 | 42,291 | 45,253 | ||||||||||||||||||||||||
Cash interest expense calculation detail: | |||||||||||||||||||||||||||||
Interest expense | 9,752 | 8,673 | 7,299 | 7,428 | 7,449 | ||||||||||||||||||||||||
Capitalized interest | 732 | 818 | 1,163 | 1,061 | 882 | ||||||||||||||||||||||||
Note payable premium amort. | 29 | 47 | 66 | 59 | 16 | ||||||||||||||||||||||||
Amort. of deferred financing costs | (447) | (408) | (373) | (381) | (343) | ||||||||||||||||||||||||
Amort. of swap termination fee | (410) | (218) | — | — | — | ||||||||||||||||||||||||
Cash interest expense | 9,656 | 8,912 | 8,155 | 8,167 | 8,004 | ||||||||||||||||||||||||
Scheduled principal payments | 319 | 241 | 205 | 175 | 50 | ||||||||||||||||||||||||
Preferred stock/unit dividends | 4,344 | 4,344 | 4,344 | 4,344 | 4,059 | ||||||||||||||||||||||||
Fixed charges | $ | 14,319 | $ | 13,497 | $ | 12,704 | $ | 12,686 | $ | 12,113 | |||||||||||||||||||
Fixed Charge Coverage Ratio | 3.8 | x | 3.8 | x | 3.6 | x | 3.3 | x | 3.7 | x |
First Quarter 2021 Supplemental Financial Reporting Package | Page 33 | ![]() | ||||||
Notes and Definitions. | ||||||||
First Quarter 2021 Supplemental Financial Reporting Package | Page 34 | ![]() | ||||||
Notes and Definitions. | ||||||||
Three Months Ended | |||||||||||||||||||||||||||||
Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | |||||||||||||||||||||||||
Rental revenue (before collectability adjustment) | $ | 83,349 | $ | 75,990 | $ | 71,632 | $ | 68,408 | $ | 65,650 | |||||||||||||||||||
Tenant reimbursements | 16,644 | 14,468 | 13,247 | 12,433 | 11,993 | ||||||||||||||||||||||||
Other income | 147 | 151 | 222 | (12) | 242 | ||||||||||||||||||||||||
(Reduction) increase in revenue due to change in collectability assessment | (496) | (2,114) | (1,479) | (1,059) | (395) | ||||||||||||||||||||||||
Rental income | 99,644 | 88,495 | 83,622 | 79,770 | 77,490 |
Three Months Ended March 31, | |||||||||||||||||||||||
2021 | 2020 | $ Change | % Change | ||||||||||||||||||||
Rental revenue | $ | 64,931 | $ | 61,505 | $ | 3,426 | 5.6% | ||||||||||||||||
Tenant reimbursements | 12,316 | 11,255 | 1,061 | 9.4% | |||||||||||||||||||
Other income | 101 | 206 | (105) | (51.0)% | |||||||||||||||||||
Rental income | $ | 77,348 | $ | 72,966 | $ | 4,382 | 6.0% |
2021 Estimate | |||||||||||
Low | High | ||||||||||
Net income attributable to common stockholders | $ | 0.48 | $ | 0.51 | |||||||
Company share of depreciation and amortization | $ | 1.01 | $ | 1.01 | |||||||
Company share of gains on sale of real estate | $ | (0.08) | $ | (0.08) | |||||||
Company share of Core FFO | $ | 1.41 | $ | 1.44 |
Three Months Ended | |||||||||||||||||||||||||||||
Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | |||||||||||||||||||||||||
Net Income | $ | 30,643 | $ | 18,155 | $ | 31,197 | $ | 16,271 | $ | 15,272 | |||||||||||||||||||
Add: | |||||||||||||||||||||||||||||
General and administrative | 11,480 | 9,042 | 9,464 | 8,972 | 9,317 | ||||||||||||||||||||||||
Depreciation & amortization | 35,144 | 30,554 | 28,811 | 28,381 | 27,523 | ||||||||||||||||||||||||
Acquisition expenses | 29 | 35 | 70 | 14 | 5 | ||||||||||||||||||||||||
Interest expense | 9,752 | 8,673 | 7,299 | 7,428 | 7,449 | ||||||||||||||||||||||||
Loss on extinguishment of debt | — | 104 | — | — | — | ||||||||||||||||||||||||
Subtract: | |||||||||||||||||||||||||||||
Mgmt, leasing, & dvlpmt services | 105 | 95 | 118 | 114 | 93 | ||||||||||||||||||||||||
Interest income | 14 | 59 | 116 | 66 | 97 | ||||||||||||||||||||||||
Gain (loss) on sale of real estate | 10,860 | (52) | 13,669 | — | — | ||||||||||||||||||||||||
NOI | $ | 76,069 | $ | 66,461 | $ | 62,938 | $ | 60,886 | $ | 59,376 | |||||||||||||||||||
S/L rental revenue adj. | (4,199) | (434) | (3,088) | (6,212) | (1,672) | ||||||||||||||||||||||||
Amortization of above/below market lease intangibles | (2,712) | (2,711) | (2,751) | (2,669) | (2,402) | ||||||||||||||||||||||||
Cash NOI | $ | 69,158 | $ | 63,316 | $ | 57,099 | $ | 52,005 | $ | 55,302 |
First Quarter 2021 Supplemental Financial Reporting Package | Page 35 | ![]() | ||||||
Notes and Definitions. | ||||||||
Three Months Ended March 31, | |||||||||||
2021 | 2020 | ||||||||||
Net income | $ | 30,643 | $ | 15,272 | |||||||
Add: | |||||||||||
General and administrative | 11,480 | 9,317 | |||||||||
Depreciation and amortization | 35,144 | 27,523 | |||||||||
Acquisition expenses | 29 | 5 | |||||||||
Interest expense | 9,752 | 7,449 | |||||||||
Deduct: | |||||||||||
Management, leasing and development services | 105 | 93 | |||||||||
Interest income | 14 | 97 | |||||||||
Gain on sale of real estate | 10,860 | — | |||||||||
NOI | $ | 76,069 | $ | 59,376 | |||||||
Non-Stabilized Same Prop. Portfolio rental income | (22,296) | (4,524) | |||||||||
Non-Stabilized Same Prop. Portfolio property exp. | 6,221 | 1,318 | |||||||||
Stabilized Same Property Portfolio NOI | $ | 59,994 | $ | 56,170 | |||||||
Straight line rental revenue adjustment | (1,756) | (1,680) | |||||||||
Amort. of above/below market lease intangibles | (1,502) | (2,072) | |||||||||
Stabilized Same Property Portfolio Cash NOI | $ | 56,736 | $ | 52,418 |
First Quarter 2021 Supplemental Financial Reporting Package | Page 36 | ![]() | ||||||