rexr-20211020
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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549  
FORM 8-K  
CURRENT REPORT
Pursuant to Section 13 or 15(d) of
The Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): October 20, 2021
REXFORD INDUSTRIAL REALTY, INC.
(Exact name of registrant as specified in its charter) 
 
Maryland001-3600846-2024407
(State or other jurisdiction of
incorporation)
(Commission File Number)(IRS Employer Identification No.)
11620 Wilshire Boulevard, Suite 1000
 Los Angeles
California90025
(Address of principal executive offices)(Zip Code)
Registrant’s telephone number, including area code: (310966-1680

N/A
(Former name or former address, if changed since last report.)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:
Title of each classTrading symbolsName of each exchange on which registered
Common Stock, $0.01 par valueREXRNew York Stock Exchange
5.875% Series B Cumulative Redeemable Preferred StockREXR-PBNew York Stock Exchange
5.625% Series C Cumulative Redeemable Preferred StockREXR-PCNew York Stock Exchange
 Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.



ITEM 2.02 RESULTS OF OPERATIONS AND FINANCIAL CONDITION
On October 20, 2021, Rexford Industrial Realty, Inc. (“Rexford Industrial”) issued a press release announcing its earnings for the quarter ended September 30, 2021, and distributed certain supplemental financial information. On October 20, 2021, Rexford Industrial also posted the supplemental financial information on its website located at www.rexfordindustrial.com.  Copies of the press release and supplemental financial information are furnished herewith as Exhibits 99.1 and 99.2, respectively.
The information included in this Current Report on Form 8-K under this Item 2.02 (including Exhibits 99.1 and 99.2 hereto) are being “furnished” and shall not be deemed to be “filed” for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of the Exchange Act, nor shall it be incorporated by reference into a filing under the Securities Act of 1933, as amended (the “Securities Act”), or the Exchange Act, except as shall be expressly set forth by specific reference in such filing.

ITEM 7.01 REGULATION FD DISCLOSURE  
As discussed in Item 2.02 above, Rexford Industrial issued a press release announcing its earnings for the quarter ended September 30, 2021 and distributed certain supplemental information. On October 20, 2021, Rexford Industrial also posted the supplemental financial information on its website located at www.rexfordindustrial.com.  
The information included in this Current Report on Form 8-K under this Item 7.01 (including Exhibit 99.1 and 99.2 hereto) is being “furnished” and shall not be deemed to be “filed” for the purposes of the Exchange Act, or otherwise subject to the liabilities of the Exchange Act, nor shall it be incorporated by reference into a filing under the Securities Act or the Exchange Act, except as shall be expressly set forth by specific reference in such filing. The information included in this Current Report on Form 8-K under this Item 7.01 (including Exhibit 99.1 and 99.2 hereto) will not be deemed an admission as to the materiality of any information required to be disclosed solely to satisfy the requirements of Regulation FD.

ITEM 9.01 FINANCIAL STATEMENTS AND EXHIBITS
(d)    Exhibits.
 
Exhibit
Number
  Description
99.1
99.2
104Cover Page Interactive Data File (embedded within the Inline XBRL document)




SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
 
 Rexford Industrial Realty, Inc.
October 20, 2021
 
/s/ Michael S. Frankel
 Michael S. Frankel
Co-Chief Executive Officer
(Principal Executive Officer)
 Rexford Industrial Realty, Inc.
October 20, 2021
 
/s/ Howard Schwimmer
 Howard Schwimmer
Co-Chief Executive Officer
(Principal Executive Officer)


Document
Exhibit 99.1
https://cdn.kscope.io/8fde0cc23dcdc2b474aa0ec6df77b3e4-rexlogo11520a05.jpg
REXFORD INDUSTRIAL ANNOUNCES THIRD QUARTER 2021 FINANCIAL RESULTS

Los Angeles, California - October 20, 2021 - Rexford Industrial Realty, Inc. (the “Company” or “Rexford Industrial”) (NYSE: REXR), a real estate investment trust (“REIT”) focused on creating value by investing in and operating industrial properties within Southern California infill markets, today announced financial and operating results for the third quarter of 2021.

Third Quarter 2021 Financial and Operational Highlights:
Net income attributable to common stockholders of $31.5 million, or $0.23 per diluted share, as compared to $25.9 million, or $0.21 per diluted share, for the third quarter of 2020.
Company share of Core FFO of $59.6 million, an increase of 46.9% as compared to the third quarter 2020.
Company share of Core FFO per diluted share of $0.43, an increase of 30.3% as compared to the third quarter 2020.
Consolidated Portfolio Net Operating Income (NOI) of $87.8 million, an increase of 39.4% as compared to the third quarter of 2020.
Same Property Portfolio(1) NOI increased 9.7% and Same Property Portfolio(1) Cash NOI increased 13.3% as compared to the third quarter 2020.
Average Same Property Portfolio occupancy was 98.6%.
Comparable rental rates on 1.8 million rentable square feet of new and renewal leases were 54.3% higher than prior rents on a GAAP basis and 38.5% higher on a cash basis.
Acquired thirteen properties for an aggregate purchase price of $880.5 million and sold one property for a sales price of $18.6 million.
Completed a debt offering of $400 million aggregate principal 2.150% Senior Notes due September 1, 2031.
Issued a total of 13.7 million shares of common stock for total net proceeds of $783 million through a range of equity transactions.
Ended the quarter with a low-leverage balance sheet measured by a net debt-to-enterprise value ratio of 12.7%.

“Our team produced another quarter of extraordinary results, reflecting the unique, entrepreneurial nature of the Rexford business model and the strength of our infill Southern California industrial market. We achieved Core FFO growth of 47% and 30% on a per share basis, fueled by consolidated NOI growth of 39%, compared to the prior year quarter. Our team executed 1.8 million square feet of leasing activity at outstanding GAAP and cash releasing spreads of 54% and 39%, respectively,” stated Michael Frankel and Howard Schwimmer, Co-Chief Executive Officers of the Company. “We continued to scale our operating platform and deepen our market penetration with thirteen acquisitions during the quarter for $880 million, surpassing $1.3 billion of investments completed year-to-date. Our investment activity is planting the seeds for what we believe will be sustained cash flow growth into future periods. Meanwhile, with over $300 million of opportunities under contract or accepted offer, we remain well-positioned with substantial liquidity and a best-in-class, low leverage balance sheet at 12.7% net debt to enterprise value to drive substantial value creation and long-term shareholder value.”






_____________________________
(1)The Same Property Portfolio was previously referred to as the “Stabilized Same Property Portfolio.” No definitional changes have been made.




Financial Results:

The Company reported net income attributable to common stockholders of $31.5 million, or $0.23 per diluted share, for the three months ended September 30, 2021, as compared to net income attributable to common stockholders of $25.9 million, or $0.21 per diluted share, for the three months ended September 30, 2020. Net income for both the three months ended September 30, 2021 and the three months ended September 30, 2020, include $13.7 million of gains on sale of real estate.

The Company reported net income attributable to common stockholders of $77.0 million, or $0.57 per diluted share, for the nine months ended September 30, 2021, as compared to net income attributable to common stockholders of $48.1 million, or $0.40 per diluted share, for the nine months ended September 30, 2020. Net income for the nine months ended September 30, 2021 includes $27.3 million of gains on sale of real estate, as compared to $13.7 million for the nine months ended September 30, 2020.

For the three months ended September 30, 2021, Company share of Core FFO increased 46.9% year-over-year to $59.6 million, or $0.43 per diluted share of common stock, equal to a 30.3% increase, as compared to Company share of Core FFO of $40.6 million, or $0.33 per diluted share of common stock, for the three months ended September 30, 2020.

For the nine months ended September 30, 2021, Company share of Core FFO increased 37.5% year-over-year to $160.7 million, or $1.19 per diluted share of common stock, equal to a 21.4% increase, as compared to Company share of Core FFO of $116.9 million, or $0.98 per diluted share of common stock, for the nine months ended September 30, 2020.

For the three months ended September 30, 2021, the Company’s consolidated portfolio NOI increased 39.4% compared to the three months ended September 30, 2020, and the Company’s consolidated portfolio Cash NOI increased 37.8% compared to the three months ended September 30, 2020.

For the nine months ended September 30, 2021, the Company’s consolidated portfolio NOI increased 32.9% compared to the nine months ended September 30, 2020, and the Company’s consolidated portfolio Cash NOI increased 33.4% compared to the nine months ended September 30, 2020.

For the three months ended September 30, 2021, the Company’s Same Property Portfolio NOI increased 9.7% compared to the three months ended September 30, 2020, driven by a 7.7% increase in Same Property Portfolio rental income and a 1.3% increase in Same Property Portfolio expenses. Same Property Portfolio Cash NOI increased 13.3% compared to the three months ended September 30, 2020. When adjusted for the impact of short-term rent deferral agreements executed in response to the COVID-19 pandemic, Same Property Portfolio Cash NOI increased 12.0% compared to the three months ended September 30, 2020.

For the nine months ended September 30, 2021, the Company’s Same Property Portfolio NOI increased 8.9% compared to the nine months ended September 30, 2020, driven by a 7.7% increase in Same Property Portfolio rental income and a 3.6% increase in Same Property Portfolio expenses. Same Property Portfolio Cash NOI increased 14.3% compared to the nine months ended September 30, 2020. When adjusted for the impact of short-term rent deferral agreements executed in response to the COVID-19 pandemic, Same Property Portfolio Cash NOI increased 10.3% compared to the nine months ended September 30, 2020.




Operating Results:

Third quarter 2021 leasing activity demonstrates strong tenant demand fundamentals within Rexford’s target Southern California infill markets:

Q3-2021 Leasing Activity
Releasing Spreads
# of Leases Executed
SF of Leasing
GAAP
Cash
New Leases
65717,10442.2%28.4%
Renewal Leases
681,104,42460.8%43.7%
Total Leases
1331,821,52854.3%38.5%


At September 30, 2021, the Company’s Same Property Portfolio occupancy was 98.8%. Average Same Property Portfolio occupancy for the third quarter 2021 was 98.6%. At September 30, 2021, the Company’s consolidated portfolio, excluding value-add repositioning assets, was 98.4% occupied and 98.9% leased, and the Company’s consolidated portfolio, including value-add repositioning assets, was 96.1% occupied and 96.6% leased.

Transaction Activity:

During the third quarter of 2021, the Company acquired thirteen properties, including 2,083,892 square feet of buildings and 139.7 acres of low-coverage outdoor storage sites and land for future redevelopment for an aggregate purchase price of $880.5 million. These investments are projected to generate an aggregate stabilized unlevered yield on total investment of 5.9%. Additionally, the Company sold one property for a sales price of $18.6 million.

Subsequent to the third quarter of 2021, the Company acquired two properties with a total of 118,023 rentable square feet of buildings for an aggregate purchase price of $33.5 million.

Balance Sheet:
The Company ended the third quarter with $1.1 billion in liquidity, including $60.2 million in cash on hand, $700.0 million available under its unsecured revolving credit facility and an estimated $379.6 million of forward equity proceeds to be settled by the first quarter 2023. As of September 30, 2021, the Company had $1.4 billion of outstanding debt, with an average interest rate of 2.8% and an average term-to-maturity of 7.8 years. The Company has no debt maturities until 2023.

In August 2021, the Company completed a public bond offering of $400.0 million 2.15% senior notes due in 2031 (the “Notes”). The Notes were priced at 99.014% of the principal amount and will mature on September 1, 2031. The proceeds from the Notes are expected to be allocated to investments in recently completed or future green building, energy and resource efficiency and renewable energy projects, including the redevelopment of such projects. Pending the allocation to eligible green projects, net proceeds of the Notes were used to repay the Company’s $225 million term loan due in 2023, fund the redemption of all shares of the Company’s 5.875% Series A Cumulative Redeemable Preferred Stock and acquisition activities.

During the third quarter, the Company executed on its ATM program, selling 3,397,958 shares of common stock at a weighted average share price of $61.43 per share, or $208.7 million of common stock, as follows:
Issued 786,174 shares of common stock at an average price of $60.42 per share, receiving proceeds of approximately $47.5 million before issuance costs.
Sold 2,611,784 shares of common stock that were subject to a forward equity sale agreement at an average price of $61.73 per share for a gross value of $161.2 million. The Company fully settled this forward sale agreement in the third quarter and received net proceeds of approximately $159.1 million.

As of September 30, 2021, the ATM program had approximately $299.4 million of remaining capacity.

In September 2021, the Company fully settled the remaining 7,190,474 shares outstanding under the forward equity sale agreements from the Company’s May 2021 public offering for total net proceeds of approximately $395.0 million.




In September 2021, the Company completed a public offering of 9,600,000 shares of common stock comprising 3,100,000 shares of common stock offered directly by the Company for gross proceeds of $181.8 million and 6,500,000 shares of common stock subject to forward equity sale agreements at an initial forward price of $58.65 per share for a gross offering value of $381.2 million. As of September 30, 2021, the Company expects to receive approximately $379.6 million upon the settlement of the forward equity sale agreements which is expected to occur by March 22, 2023.

Dividends:

On October 18, 2021, the Company’s Board of Directors declared a dividend in the amount of $0.24 per share for the fourth quarter of 2021, payable in cash on January 18, 2022, to common stockholders and common unit holders of record as of December 31, 2021.

On October 18, 2021, the Company’s Board of Directors declared a quarterly dividend of $0.367188 per share of its Series B Cumulative Redeemable Preferred Stock and a quarterly dividend of $0.351563 per share of its Series C Cumulative Redeemable Preferred Stock, in each case, payable in cash on December 31, 2021, to preferred stockholders of record as of December 15, 2021.

COVID-19 Collections Update

Through October 18, 2021, the Company collected 98.5% of contractual third quarter billings, which includes contractual base rent (including COVID-19 deferral billings) and tenant reimbursements charged to tenants.

As of September 30, 2021, the Company had 1,559 leases representing in-place annualized base rent (“ABR”) of $391.9 million. As of September 30, 2021, the Company had outstanding COVID-19 related deferrals of $251,000 or 0.1% of ABR, of which $110,000 will be charged to tenants through December 2021.

Guidance

The Company is revising its full year 2021 guidance as follows:
2021 Outlook (1)
Q3’21 UPDATED GUIDANCEQ2’21 GUIDANCE
Net Income Attributable to Common Stockholders per diluted share$0.70 - $0.71$0.53 - $0.56
Company share of Core FFO per diluted share$1.60 - $1.61$1.48 - $1.51
Same Property Portfolio NOI Growth (2)
8.25% - 8.75%5.75% - 6.75%
Same Property Portfolio Cash NOI Growth (2)
11.50% - 12.00%9.00% - 10.00%
Average 2021 Same Property Portfolio Occupancy (Full Year) (2)
98.0% - 98.5%97.75% - 98.25%
General and Administrative Expenses (3)
$46.0M - $47.0M$45.0M - $46.0M
Net Interest Expense$39.5M - $40.0M$36.0M - $36.5M
(1)2021 Guidance represents the in-place portfolio as of October 20, 2021, and does not include any assumptions for prospective acquisitions, dispositions or balance sheet activities that have not closed.
(2)The Same Property Portfolio was previously referred to as the “Stabilized Same Property Portfolio.” No definitional changes have been made. For a full definition of the Same Property Portfolio please see definitions herein.
(3)2021 General and Administrative expense guidance includes estimated non-cash equity compensation expense of $17.1 million. Non-cash equity compensation includes restricted stock, time-based LTIP units and performance units that are tied to the Company’s overall performance and may or may not be realized based on actual results.

The Core FFO guidance refers only to the Company’s in-place portfolio as of October 20, 2021, and does not include any assumptions for other acquisitions, dispositions or balance sheet activities that have not closed. A number of factors could impact the Company’s ability to deliver results in line with its guidance, including, but not limited to, the duration and severity of the impact of the COVID-19 pandemic, interest rates, the economy, the supply and demand of industrial real estate, the availability and terms of financing to the Company or to potential acquirers of real estate and the timing and yields for divestment and investment. There can be no assurance that the Company can achieve such results.




Supplemental Information and Investor Presentation:

The Company’s supplemental financial reporting package as well as an updated investor presentation are available on the Company’s investor relations website at www.ir.rexfordindustrial.com.

Earnings Release, Investor Conference Webcast and Conference Call:

The Company will host a webcast and conference call on Thursday, October 21, 2021, at 1:00 p.m. Eastern Time to review third quarter results, discuss recent events and conduct a question-and-answer period. The live webcast will be available on the Company’s investor relations website at ir.rexfordindustrial.com.

To Participate in the Telephone Conference Call:
Dial in at least 5 minutes prior to start time:
Domestic: 1-877-407-0789
International: 1-201-689-8562

Conference Call Playback:
Domestic: 1-844-512-2921
International: 1-412-317-6671
Pass code: 13722855
The playback can be accessed through November 21, 2021.

About Rexford Industrial:

Rexford Industrial, a real estate investment trust focused on owning and operating industrial properties throughout Southern California infill markets, owns 280 properties with approximately 35.1 million rentable square feet and manages an additional 20 properties with approximately 1.0 million rentable square feet.
For additional information, visit www.rexfordindustrial.com.

Forward Looking Statements:

This press release may contain forward-looking statements within the meaning of the federal securities laws, which are based on current expectations, forecasts and assumptions that involve risks and uncertainties that could cause actual outcomes and results to differ materially. Forward-looking statements relate to expectations, beliefs, projections, future plans and strategies, anticipated events or trends and similar expressions concerning matters that are not historical facts. In some cases, you can identify forward-looking statements by the use of forward-looking terminology such as “may,” “will,” “should,” “expects,” “intends,” “plans,” “anticipates,” “believes,” “estimates,” “predicts,” or “potential” or the negative of these words and phrases or similar words or phrases which are predictions of or indicate future events or trends and which do not relate solely to historical matters. While forward-looking statements reflect the Company’s good faith beliefs, assumptions and expectations, they are not guarantees of future performance. For a further discussion of these and other factors that could cause the Company’s future results to differ materially from any forward-looking statements, see the reports and other filings by the Company with the U.S. Securities and Exchange Commission, including the Company’s Annual Report on Form 10-K for the year ended December 31, 2020, and other filings with the Securities and Exchange Commission. The Company disclaims 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.
  



Definitions / Discussion of Non-GAAP Financial Measures:

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, gains (or losses) from sales of assets incidental to our business, impairment losses of depreciable operating property or assets incidental to our business, real estate related depreciation and amortization (excluding amortization of deferred financing costs and amortization of above/below-market lease intangibles) and after adjustments for unconsolidated 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. A reconciliation of net income, the nearest GAAP equivalent, to FFO is set forth below. “Company Share of FFO” reflects FFO attributable to common stockholders, which excludes amounts allocable to noncontrolling interests, participating securities and preferred stockholders (which consists of preferred stock dividends and any preferred stock redemption charges related to the write-off of original issuance costs).

Core Funds from Operations (Core FFO): We calculate Core FFO by adjusting FFO to exclude the impact of certain items that we do not consider reflective of our core revenue or expense streams. These adjustments consist of (i) acquisition expenses, (ii) loss on extinguishment of debt, (iii) the amortization of the loss on termination of interest rate swaps and (iv) other amounts as they may occur. 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. A reconciliation of FFO to Core FFO is set forth below. “Company Share of Core FFO” reflects Core FFO attributable to common stockholders, which excludes amounts allocable to noncontrolling interests, participating securities and preferred stockholders (which consists of preferred stock dividends, but excludes non-recurring preferred stock redemption charges related to the write-off of original issuance costs which we do not consider reflective of our core revenue or expense streams).

Reconciliation of Net Income Attributable to Common Stockholders per Diluted Share Guidance to Company share of Core FFO per Diluted Share Guidance:

The following is a reconciliation of the Company’s 2021 guidance range of net income attributable to common stockholders per diluted share, the most directly comparable forward-looking GAAP financial measure, to Company share of Core FFO per diluted share.
2021 Estimate
LowHigh
Net income attributable to common stockholders$0.70 $0.71 
Company share of depreciation and amortization1.06 1.06 
Company share of gains on sale of real estate(0.19)(0.19)
Company share of FFO$1.57 $1.58 
Add: Series A Preferred Stock redemption charge(1)
0.02 0.02 
Add: Amortization of loss on termination of interest rate swap0.01 0.01 
Company share of Core FFO$1.60 $1.61 



(1)In connection with the redemption of the 5.875% Series A Cumulative Redeemable Preferred Stock on August 16, 2021, the Company incurred an associated non-cash charge of approximately $3.3 million, as a reduction to net income attributable to common stockholders for the original related issuance costs.

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 rental income from real estate operations less property expenses (before interest expense, depreciation and amortization). We use NOI as a supplemental performance measure because, in excluding real estate depreciation and amortization expense and gains (or losses) from property dispositions, it provides a performance measure that, when compared year over year, captures trends in occupancy rates, rental rates and operating costs. We also believe that NOI will be useful to investors as a basis to compare our operating performance with that of other REITs. However, because NOI excludes depreciation and amortization expense and captures neither the changes in the value of our properties that result from use or market conditions, nor the level of capital expenditures and leasing commissions necessary to maintain the operating performance of our properties (all of which have a 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. A calculation of NOI for our Same Property Portfolio, as well as a reconciliation of net income to NOI for our Same Property Portfolio, is set forth below.

Cash NOI: Cash 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 adjustments. 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. A calculation of Cash NOI for our Same Property Portfolio, as well as a reconciliation of net income to Cash NOI for our Same Property Portfolio, is set forth below.

Same Property Portfolio:

Our Same Property Portfolio is a subset of our consolidated portfolio and includes properties that were wholly owned by us for the period from January 1, 2020 through September 30, 2021, and excludes properties that were acquired or sold during the period from January 1, 2020 through September 30, 2021, and properties acquired prior to January 1, 2020, that were classified as current or future repositioning, redevelopment or lease-up during 2020 or 2021 (unless otherwise noted), which we believe significantly affected the properties’ results during the comparative periods. As of September 30, 2021, our 2021 Same Property Portfolio consists of 194 properties aggregating 24,652,152 rentable square feet. The Same Property Portfolio was previously referred to as the "Stabilized Same Property Portfolio." No definitional changes have been made.

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. A repositioning is generally considered complete once the investment is fully or nearly fully deployed and the property is available for occupancy. We consider a repositioning property to be stabilized at the earlier of the following: (i) upon reaching 90% occupancy or (ii) one year from the date of completion of repositioning construction work.

Net Debt to Enterprise Value: At September 30, 2021, we had consolidated indebtedness of $1.4 billion, reflecting a net debt to enterprise value of approximately 12.7%. Our enterprise value is defined as the sum of the liquidation preference of our outstanding preferred stock and preferred units plus the market value of our common stock excluding shares of nonvested restricted stock, plus the aggregate value of common units not owned by us, plus the value of our net debt.  Our net debt is defined as our consolidated indebtedness less cash and cash equivalents. 




In-Place Annualized Base Rent (ABR): Calculated as the monthly contractual base rent (before rent abatements) per the terms of the lease, as of September 30, 2021, multiplied by 12. Includes leases that have commenced as of September 30, 2021 or leases where tenant has taken early possession of space as of September 30, 2021. Excludes tenant reimbursements.

Contact:
Investor Relations:
Stephen Swett
424-256-2153 ext 401
investorrelations@rexfordindustrial.com



Rexford Industrial Realty, Inc.
Consolidated Balance Sheets
(In thousands except share data)
September 30, 2021December 31, 2020
(unaudited)
ASSETS  
Land$3,714,038 $2,636,816 
Buildings and improvements2,466,435 2,201,187 
Tenant improvements124,156 84,462 
Furniture, fixtures, and equipment132 132 
Construction in progress50,823 25,358 
Total real estate held for investment6,355,584 4,947,955 
Accumulated depreciation(452,019)(375,423)
Investments in real estate, net5,903,565 4,572,532 
Cash and cash equivalents60,154 176,293 
Restricted cash50 1,230 
Rents and other receivables, net9,863 10,208 
Deferred rent receivable, net55,726 40,893 
Deferred leasing costs, net33,531 23,148 
Deferred loan costs, net2,192 2,240 
Acquired lease intangible assets, net125,697 92,172 
Acquired indefinite-lived intangible5,156 5,156 
Other assets18,213 14,390 
Acquisition related deposits9,610 4,067 
Assets associated with real estate held for sale, net— 8,845 
Total Assets$6,223,757 $4,951,174 
LIABILITIES & EQUITY  
Liabilities  
Notes payable$1,386,649 $1,216,160 
Interest rate swap liability10,205 17,580 
Accounts payable, accrued expenses and other liabilities77,968 45,384 
Dividends and distributions payable37,970 29,747 
Acquired lease intangible liabilities, net111,444 67,256 
Tenant security deposits55,487 31,602 
Prepaid rents16,358 12,660 
Liabilities associated with real estate held for sale— 193 
Total Liabilities1,696,081 1,420,582 
Equity  
Rexford Industrial Realty, Inc. stockholders’ equity 
Preferred stock, $0.01 par value per share, 10,050,000 shares authorized:
5.875% series A cumulative redeemable preferred stock, zero and 3,600,000 shares outstanding at September 30, 2021 and December 31, 2020, respectively ($90,000 liquidation preference)
— 86,651 
5.875% series B cumulative redeemable preferred stock, 3,000,000 shares outstanding at September 30, 2021 and December 31, 2020 ($75,000 liquidation preference)
72,443 72,443 
5.625% series C cumulative redeemable preferred stock, 3,450,000 shares outstanding at September 30, 2021 and December 31, 2020 ($86,250 liquidation preference)
83,233 83,233 
Common Stock,$ 0.01 par value per share, 489,950,000 authorized and 151,444,908 and 131,426,038 shares outstanding at September 30, 2021 and December 31, 2020, respectively
1,514 1,313 
Additional paid in capital4,283,600 3,182,599 
Cumulative distributions in excess of earnings(187,510)(163,389)
Accumulated other comprehensive loss(13,234)(17,709)
Total stockholders’ equity4,240,046 3,245,141 
Noncontrolling interests287,630 285,451 
Total Equity4,527,676 3,530,592 
Total Liabilities and Equity$6,223,757 $4,951,174 



Rexford Industrial Realty, Inc.
Consolidated Statements of Operations
(Unaudited and in thousands, except per share data)

 Three Months Ended September 30,Nine Months Ended September 30,
 2021202020212020
REVENUES  
Rental income$115,260 $83,622 $319,140 $240,882 
Management, leasing and development services136 118 350 325 
Interest income116 36 279 
TOTAL REVENUES115,403 83,856 319,526 241,486 
OPERATING EXPENSES
Property expenses27,501 20,684 75,631 57,682 
General and administrative11,806 9,464 33,981 27,753 
Depreciation and amortization38,676 28,811 110,048 84,715 
TOTAL OPERATING EXPENSES77,983 58,959 219,660 170,150 
OTHER EXPENSES
Acquisition expenses70 35 89 
Interest expense10,427 7,299 29,772 22,176 
TOTAL EXPENSES88,414 66,328 249,467 192,415 
Loss on extinguishment of debt(505)— (505)— 
Gains on sale of real estate13,702 13,669 27,312 13,669 
NET INCOME40,186 31,197 96,866 62,740 
Less: net income attributable to noncontrolling interests(2,173)(1,531)(5,852)(3,332)
NET INCOME ATTRIBUTABLE TO REXFORD INDUSTRIAL REALTY, INC.38,013 29,666 91,014 59,408 
Less: preferred stock dividends(2,976)(3,636)(10,249)(10,909)
Less: original issuance costs of redeemed preferred stock(3,349)— (3,349)— 
Less: earnings attributable to participating securities (143)(129)(423)(389)
NET INCOME ATTRIBUTABLE TO COMMON STOCKHOLDERS$31,545 $25,901 $76,993 $48,110 
Net income attributable to common stockholders per share basic
$0.23 $0.21 $0.57 $0.40 
Net income attributable to common stockholders per share diluted
$0.23 $0.21 $0.57 $0.40 
Weighted-average shares of common stock outstanding – basic138,762 123,549 134,922 119,154 
Weighted-average shares of common stock outstanding – diluted139,630 123,844 135,429 119,425 




Rexford Industrial Realty, Inc.
Same Property Portfolio Occupancy and NOI and Cash NOI
(Unaudited, dollars in thousands)
 
 
Same Property Portfolio Occupancy:
September 30,
20212020Change (basis points)
Weighted Average Occupancy:(1)
Los Angeles County98.7%98.4%30 bps
Orange County98.9%97.5%140 bps
San Bernardino County98.9%98.2%70 bps
San Diego County98.3%96.2%210 bps
Ventura County97.1%95.8%130 bps
Same Property Portfolio Weighted Average Occupancy98.6%97.8%80 bps
Ending Occupancy:98.8%98.3%50 bps
(1)Calculated by averaging the occupancy rate at the end of each month in 3Q-2021 and June 2021 (for 3Q-2021) and the end of each month in 3Q-2020 and June 2020 (for 3Q-2020).


Same Property Portfolio NOI and Cash NOI:    
Three Months Ended September 30,Nine Months Ended September 30,
20212020$ Change% Change20212020$ Change% Change
Rental income$80,278 $74,543 $5,735 7.7%$236,442 $219,630 $16,812 7.7%
Property expenses18,104 17,866 238 1.3%53,278 51,412 1,866 3.6%
Same Property Portfolio NOI$62,174 $56,677 $5,497 9.7%$183,164 $168,218 $14,946 8.9%
Straight line rental revenue adjustment(2,096)(2,842)746 (26.2)%(5,713)(10,588)4,875 (46.0)%
Amortization of above/below market lease intangibles(1,280)(1,956)676 (34.6)%(4,122)(6,030)1,908 (31.6)%
Same Property Portfolio Cash NOI$58,798 $51,879 $6,919 13.3%$173,329 $151,600 $21,729 14.3%




Rexford Industrial Realty, Inc.
Reconciliation of Net Income to NOI, Cash NOI, Same Property Portfolio NOI and
Same Property Portfolio Cash NOI
(Unaudited and in thousands)

Three Months Ended September 30,Nine Months Ended September 30,
2021202020212020
Net income$40,186 $31,197 $96,866 $62,740 
Add:
General and administrative11,806 9,464 33,981 27,753 
Depreciation and amortization38,676 28,811 110,048 84,715 
Acquisition expenses70 35 89 
Interest expense10,427 7,299 29,772 22,176 
Loss on extinguishment of debt505 — 505 — 
Deduct:
Management, leasing and development services136 118 350 325 
Interest income116 36 279 
Gain on sale of real estate13,702 13,669 27,312 13,669 
Net operating income (NOI)$87,759 $62,938 $243,509 $183,200 
Straight line rental revenue adjustment(5,865)(3,088)(14,904)(10,968)
Amortization of above/below market lease intangibles(3,191)(2,751)(9,289)(7,822)
Cash NOI$78,703 $57,099 $219,316 $164,410 
NOI$87,759 $62,938 $243,509 $183,200 
Non-Same Property Portfolio rental income(34,982)(9,079)(82,698)(21,252)
Non-Same Property Portfolio property expenses9,397 2,818 22,353 6,270 
Same Property Portfolio NOI$62,174 $56,677 $183,164 $168,218 
Straight line rental revenue adjustment(2,096)(2,842)(5,713)(10,588)
Amortization of above/below market lease intangibles(1,280)(1,956)(4,122)(6,030)
Same Property Portfolio Cash NOI$58,798 $51,879 $173,329 $151,600 




Rexford Industrial Realty, Inc.
Reconciliation of Net Income to Funds From Operations and Core Funds From Operations
(Unaudited and in thousands, except per share data)

 
 Three Months Ended September 30,Nine Months Ended September 30,
 2021202020212020
Net income$40,186 $31,197 $96,866 $62,740 
Add:  
Depreciation and amortization38,676 28,811 110,048 84,715 
Deduct:
Gain on sale of real estate13,702 13,669 27,312 13,669 
Funds From Operations (FFO)$65,160 $46,339 $179,602 $133,786 
Less: preferred stock dividends(2,976)(3,636)(10,249)(10,909)
Less: original issuance costs of redeemed preferred stock(3,349)— (3,349)— 
Less: FFO attributable to noncontrolling interests(1)
(3,277)(2,017)(9,667)(5,472)
Less: FFO attributable to participating securities(2)
(223)(197)(656)(584)
Company share of FFO$55,335 $40,489 $155,681 $116,821 
Company Share of FFO per common share – basic$0.40 $0.33 $1.15 $0.98 
Company Share of FFO per common share – diluted$0.40 $0.33 $1.15 $0.98 
FFO$65,160 $46,339 $179,602 $133,786 
Adjust:  
Acquisition expenses70 35 89 
Loss on extinguishment of debt505 — 505 — 
Amortization of loss on termination of interest rate swaps615 — 1,435 — 
Core FFO$66,284 $46,409 $181,577 $133,875 
Less: preferred stock dividends(2,976)(3,636)(10,249)(10,909)
Less: Core FFO attributable to noncontrolling interest(1)
(3,475)(2,019)(9,905)(5,474)
Less: Core FFO attributable to participating securities(2)
(241)(197)(678)(584)
Company share of Core FFO$59,592 $40,557 $160,745 $116,908 
Company share of Core FFO per common share – basic$0.43 $0.33 $1.19 $0.98 
Company share of Core FFO per common share – diluted$0.43 $0.33 $1.19 $0.98 
Weighted-average shares of common stock outstanding – basic138,762 123,549 134,922 119,154 
Weighted-average shares of common stock outstanding – diluted139,630 123,844 135,429 119,425 
(1)Noncontrolling interests relate to interests in the Company’s operating partnership, represented by common units and preferred units (Series 1 & 2 CPOP units) of partnership interests in the operating partnership that are owned by unit holders other than the Company.
(2)Participating securities include unvested shares of restricted stock, unvested LTIP units and unvested performance units.

Document
Exhibit 99.2
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Table of Contents.
SectionPage
Corporate Data:
Consolidated Financial Results:
Portfolio Data:
Top Tenants and Lease Segmentation
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; an epidemic or pandemic (such as the outbreak and worldwide spread of novel coronavirus (COVID-19), and the measures that international, federal, state and local governments, agencies, law enforcement and/or health authorities may implement to address it, which may (as with COVID-19) precipitate or exacerbate one or more of the above-mentioned factors and/or other risks, and significantly disrupt or prevent us from operating our business in the ordinary course for an extended period; 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 2020 Annual Report on Form 10-K, which was filed with the Securities and Exchange Commission (“SEC”) on February 19, 2021. 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.
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Supplemental Financial Reporting Package
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Investor Company Summary.
Executive Management Team
Howard SchwimmerCo-Chief Executive Officer, Director
Michael S. FrankelCo-Chief Executive Officer, Director
Laura ClarkChief Financial Officer
David LanzerGeneral Counsel and Corporate Secretary
Board of Directors
Richard ZimanChairman
Howard SchwimmerCo-Chief Executive Officer, Director
Michael S. FrankelCo-Chief Executive Officer, Director
Robert L. AntinDirector
Diana J. IngramDirector
Debra L. MorrisDirector
Tyler H. RoseDirector
Peter SchwabDirector
Investor Relations Information
ICR
Stephen Swett
www.icrinc.com
(212) 849-3882
Equity Research Coverage
Bank of America Merrill LynchJames Feldman(646) 855-5808
BairdDavid Rodgers(216) 737-7341
Berenberg Capital MarketsConnor Siversky(646) 949-9037
Capital OneChris Lucas(571) 633-8151
Citigroup Investment ResearchEmmanuel Korchman(212) 816-1382
Green StreetVince Tibone(949) 640-8780
J.P. MorganMichael W. Mueller, CFA(212) 622-6689
Jefferies LLCJonathan Petersen(212) 284-1705
Wells Fargo SecuritiesBlaine Heck(443) 263-6529
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.

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Company Overview.
As of September 30, 2021
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Highlights - Consolidated Financial Results.
Quarterly Results(in millions)

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Financial and Portfolio Highlights and Capitalization Data. (1)
(in thousands except share and per share data and portfolio statistics)
Three Months Ended
September 30, 2021June 30, 2021March 31, 2021December 31, 2020September 30, 2020
Financial Results:
Total rental income$115,260 $104,236 $99,644 $88,495 $83,622 
Net income$40,186 $26,037 $30,643 $18,155 $31,197 
Net Operating Income (NOI)$87,759 $79,681 $76,069 $66,461 $62,938 
Company share of Core FFO$59,592 $52,789 $48,364 $43,099 $40,557 
Company share of Core FFO per common share - diluted$0.43 $0.39 $0.37 $0.34 $0.33 
Adjusted EBITDA$88,988 $75,675 $69,521 $65,328 $56,384 
Dividend declared per common share$0.240 $0.240 $0.240 $0.215 $0.215 
Portfolio Statistics:
Portfolio rentable square feet (“RSF”)34,932,613 32,955,385 32,087,821 31,501,111 27,711,078 
Ending occupancy96.1 %95.4 %95.8 %95.2 %97.2 %
Stabilized occupancy98.4 %98.2 %98.3 %96.7 %97.9 %
Rent Change - GAAP54.3 %33.9 %47.1 %29.9 %26.8 %
Rent Change - Cash38.5 %21.3 %32.7 %18.1 %17.4 %
Same Property Portfolio Performance(2):
Same Property Portfolio ending occupancy(3)
98.8 %98.4 %98.6 %98.2 %98.3 %
Same Property Portfolio NOI growth(3)(4)
9.7 %10.1 %6.8 %
Same Property Portfolio Cash NOI growth(3)(4)
13.3 %22.1 %8.3 %
Capitalization:
Total shares and units issued and outstanding at period end(5)
157,609,745 143,920,170 140,299,354 137,799,832 127,455,361 
Series A, B and C Preferred Stock and Series 1 and 2 CPOP Units(6)
$229,068 $319,068 $319,068 $319,068 $319,068 
Total equity market capitalization$9,173,421 $8,515,322 $7,390,155 $7,086,418 $6,151,425 
Total consolidated debt$1,400,552 $1,226,083 $1,226,415 $1,223,494 $908,046 
Total combined market capitalization (net debt plus equity)$10,513,819 $9,677,186 $8,492,637 $8,133,619 $6,815,852 
Ratios:
Net debt to total combined market capitalization12.7 %12.0 %13.0 %12.9 %9.7 %
Net debt to Adjusted EBITDA (quarterly results annualized)3.8x3.8x4.0x4.0x2.9x
(1)For definition/discussion of non-GAAP financial measures and reconciliations to their nearest GAAP equivalents, see the definitions section & reconciliation section beginning on page 33 and page 12 of this report, respectively.
(2)The Same Property Portfolio was previously referred to as the "Stabilized Same Property Portfolio." No definitional changes have been made.
(3)For comparability, Same Property Portfolio ending occupancy, NOI growth and Cash NOI growth for all comparable periods has been restated to remove the results of 5803 Newton Drive, which was sold during Q3’21. See page 31 for details related to dispositions.
(4)Represents the year over year percentage change in NOI and Cash NOI for the Same Property Portfolio.
(5)Includes the following # of OP Units/vested LTIP units held by noncontrolling interests: 6,415,276 (Sep 30, 2021), 6,428,125 (Jun 30, 2021), 6,641,742 (Mar 31, 2021), 6,606,693 (Dec 31, 2020) and 3,903,509 (Sep 30, 2020). Excludes the following # of shares of unvested restricted stock: 250,439 (Sep 30, 2021), 235,953 (Jun 30, 2021), 239,748 (Mar 31, 2021), 232,899 (Dec 31, 2020) and 236,739 (Sep 30, 2020). Excludes unvested LTIP units and unvested performance units.
(6)On August 16, 2021, we redeemed all 3,600,000 shares of our 5.875% Series A Cumulative Redeemable Preferred Stock (the “Series A Preferred Stock”) at a redemption price equal to the stated liquidation preference of $25.00 per share, representing $90,000 in aggregate, plus all accrued and unpaid dividends.
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Guidance.
As of September 30, 2021
2021 OUTLOOK*
2021 GUIDANCE / ASSUMPTIONS
METRICQ3'21 UPDATED GUIDANCEQ2'21 GUIDANCEYTD RESULTS AS OF SEPTEMBER 30, 2021
Net Income Attributable to Common Stockholders per diluted share (1)(2)
$0.70 - $0.71$0.53 - $0.56$0.57
Company share of Core FFO per diluted share (1)(2)
$1.60 - $1.61$1.48 - $1.51$1.19
Same Property Portfolio NOI Growth - GAAP (3)
8.25% - 8.75%5.75% - 6.75%8.9%
Same Property Portfolio NOI Growth - Cash (3)
11.50% - 12.00%9.00% - 10.00%14.3%
Average Same Property Portfolio Occupancy (FY) (3)
98.0% - 98.5%97.75% - 98.25%98.5%
General and Administrative Expenses (4)
$46.0M - $47.0M$45.0M - $46.0M$34.0M
Net Interest Expense$39.5M - $40.0M$36.0M - $36.5M$29.8M
(1)Our 2021 Net Income and Core FFO guidance refers to the Company's in-place portfolio as of October 20, 2021, and does not include any assumptions for prospective acquisitions, dispositions or balance sheet activities that have not closed, unless otherwise noted. The Company’s in-place portfolio as of October 20, 2021, reflects the acquisition of two properties that occurred subsequent to September 30, 2021.
(2)See page 37 for a reconciliation of the Company’s 2021 guidance range of net income attributable to common stockholders per diluted share, the most directly comparable forward-looking GAAP financial measure, to Company share of Core FFO per diluted share.
(3)Our Same Property Portfolio is a subset of our consolidated portfolio and includes properties that were wholly owned by us for the period from January 1, 2020 through October 20, 2021 and excludes properties that were or will be classified as repositioning/redevelopment (current and future) or lease-up during 2020 and 2021 (unless otherwise noted). As of September 30, 2021, our Same Property Portfolio consists of 194 properties aggregating 24,652,152 rentable square feet. The Same Property Portfolio was previously referred to as the "Stabilized Same Property Portfolio." No definitional changes have been made.
(4)Our 2021 General and Administrative expense guidance includes estimated non-cash equity compensation expense of $17.1 million.
* A number of factors could impact the Company’s ability to deliver results in line with its guidance, including, but not limited to, interest rates, the economy, the supply and demand of industrial real estate, the availability and terms of financing to potential acquirers of real estate, the impact of COVID-19 and actions taken to contain its spread on the Company, the Company’s tenants and the economy, and the timing and yields for divestment and investment. There can be no assurance that the Company can achieve such results.
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Guidance (Continued).
As of September 30, 2021

2021 Guidance Rollforward(1)

Range
($ per share)
Earnings ComponentsLowHighNotes
2021 Core FFO Per Diluted Share Guidance (Previous)$1.48$1.51
Same Property Portfolio NOI Growth0.040.032021 SP NOI growth 8.25% - 8.75% increased from 5.75% -6.75% prior guidance
3Q 2021 Acquisitions0.100.10$914M 3Q acquisitions (including subsequent to quarter-end)
3Q 2021 Dispositions$19.0M 3Q dispositions
Net G&A Expense(0.01)2021 Net G&A Expense $46M - $47M increased from $45M - $46M prior guidance
Net Interest Expense(0.02)(0.02)Q3 $400M bond offering; proceeds used to redeem Series A Preferred Stock, repay $225M term loan and fund acquisitions
2021 Core FFO Per Diluted Share Guidance (Current)$1.60$1.61
Core FFO Annual Growth Per Diluted Share21%22%
(1)2021 Guidance and Guidance Rollforward represent the in-place portfolio as of October 20, 2021, and does not include any assumptions for prospective acquisitions, dispositions or balance sheet activities that have not closed unless otherwise noted.


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Consolidated Balance Sheets.
(unaudited and in thousands)
September 30, 2021June 30, 2021March 31, 2021December 31, 2020September 30, 2020
ASSETS
Land$3,714,038 $2,942,639 $2,769,614 $2,636,816 $2,163,518 
Buildings and improvements2,466,435 2,339,640 2,244,948 2,201,187 1,791,668 
Tenant improvements124,156 93,221 86,245 84,462 80,541 
Furniture, fixtures, and equipment132 132 132 132 132 
Construction in progress50,823 33,250 35,083 25,358 41,941 
  Total real estate held for investment6,355,584 5,408,882 5,136,022 4,947,955 4,077,800 
Accumulated depreciation(452,019)(427,387)(401,122)(375,423)(354,203)
Investments in real estate, net5,903,565 4,981,495 4,734,900 4,572,532 3,723,597 
Cash and cash equivalents60,154 64,219 123,933 176,293 243,619 
Restricted cash50 26 47 1,230 42,387 
Rents and other receivables, net9,863 8,228 7,737 10,208 5,838 
Deferred rent receivable, net55,726 49,933 45,093 40,893 40,473 
Deferred leasing costs, net33,531 31,183 26,039 23,148 21,842 
Deferred loan costs, net2,192 2,545 2,060 2,240 2,419 
Acquired lease intangible assets, net(1)
125,697 89,560 87,587 92,172 67,304 
Acquired indefinite-lived intangible5,156 5,156 5,156 5,156 5,156 
Other assets18,213 18,841 27,272 14,390 13,982 
Acquisition related deposits9,610 14,540 10,075 4,067 3,625 
Assets associated with real estate held for sale, net(2)
— — — 8,845 — 
Total Assets$6,223,757 $5,265,726 $5,069,899 $4,951,174 $4,170,242 
LIABILITIES & EQUITY
Liabilities
Notes payable$1,386,649 $1,219,021 $1,219,425 $1,216,160 $906,608 
Interest rate swap liability10,205 12,694 14,081 17,580 20,869 
Accounts payable, accrued expenses and other liabilities77,968 49,699 41,871 45,384 45,212 
Dividends and distributions payable37,970 34,681 33,813 29,747 27,532 
Acquired lease intangible liabilities, net(3)
111,444 65,646 66,883 67,256 61,148 
Tenant security deposits55,487 38,489 34,367 31,602 27,683 
Prepaid rents16,358 12,724 11,241 12,660 10,970 
Liabilities associated with real estate held for sale(2)
— — — 193 — 
Total Liabilities1,696,081 1,432,954 1,421,681 1,420,582 1,100,022 
Equity
Preferred stock155,676 242,327 242,327 242,327 242,327 
Common stock1,514 1,377 1,338 1,313 1,236 
Additional paid in capital4,283,600 3,499,623 3,300,333 3,182,599 2,821,127 
Cumulative distributions in excess of earnings(187,510)(182,851)(170,487)(163,389)(148,492)
Accumulated other comprehensive loss(13,234)(12,319)(13,996)(17,709)(20,231)
Total stockholders’ equity4,240,046 3,548,157 3,359,515 3,245,141 2,895,967 
Noncontrolling interests287,630 284,615 288,703 285,451 174,253 
Total Equity4,527,676 3,832,772 3,648,218 3,530,592 3,070,220 
Total Liabilities and Equity$6,223,757 $5,265,726 $5,069,899 $4,951,174 $4,170,242 
(1)Includes net above-market tenant lease intangibles of $11,086 (September 30, 2021), $8,723 (June 30, 2021), $7,950 (March 31, 2021), $8,308 (December 31, 2020) and $5,900 (September 30, 2020).
(2)At December 31, 2020, our property located at 14723-14825 Oxnard Street was classified as held for sale.
(3)Represents net below-market tenant lease intangibles as of the balance sheet date.
Third Quarter 2021
Supplemental Financial Reporting Package
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Consolidated Statements of Operations.
Quarterly Results(unaudited and in thousands, except share and per share data)
Three Months Ended
Sep 30, 2021Jun 30, 2021Mar 31, 2021Dec 31, 2020Sep 30, 2020
Revenues
Rental income(1)
$115,260 $104,236 $99,644 $88,495 $83,622 
Management, leasing, and development services136 109 105 95 118 
Interest income15 14 59 116 
Total Revenues115,403 104,360 99,763 88,649 83,856 
Operating Expenses
Property expenses27,501 24,555 23,575 22,034 20,684 
General and administrative11,806 10,695 11,480 9,042 9,464 
Depreciation and amortization38,676 36,228 35,144 30,554 28,811 
Total Operating Expenses77,983 71,478 70,199 61,630 58,959 
Other Expenses
Acquisition expenses29 35 70 
Interest expense10,427 9,593 9,752 8,673 7,299 
Total Expenses88,414 81,073 79,980 70,338 66,328 
Loss on extinguishment of debt(505)— — (104)— 
Gain (loss) on sale of real estate13,702 2,750 10,860 (52)13,669 
Net Income40,186 26,037 30,643 18,155 31,197 
Less: net income attributable to noncontrolling interests(2,173)(1,710)(1,969)(1,160)(1,531)
Net income attributable to Rexford Industrial Realty, Inc. 38,013 24,327 28,674 16,995 29,666 
Less: preferred stock dividends(2,976)(3,637)(3,636)(3,636)(3,636)
Less: original issuance costs of redeemed preferred stock(2)
(3,349)— — — — 
Less: earnings allocated to participating securities (143)(139)(141)(120)(129)
Net income attributable to common stockholders$31,545 $20,551 $24,897 $13,239 $25,901 
Earnings per Common Share
Net income attributable to common stockholders per share - basic$0.23 $0.15 $0.19 $0.11 $0.21 
Net income attributable to common stockholders per share - diluted$0.23 $0.15 $0.19 $0.10 $0.21 
Weighted average shares outstanding - basic138,762,384134,312,672131,612,881125,995,123123,548,978
Weighted average shares outstanding - diluted139,630,475134,819,742131,758,744126,401,077123,843,977
(1)See footnote (1) on page 11 for details related to our presentation of “Rental income” in the consolidated statements of operations for all periods presented.
(2)In connection with the redemption of our Series A Preferred Stock on August 16, 2021, we recognized a non-cash charge of $3,349, as a reduction to net income attributable to common stockholders for the original issuance costs related to the Series A Preferred Stock.
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Supplemental Financial Reporting Package
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Consolidated Statements of Operations.
Quarterly Results (continued)(unaudited and in thousands, except share and per share data)
Three Months Ended September 30,Nine Months Ended September 30,
2021202020212020
Revenues
Rental income(1)
$115,260 $83,622 $319,140 $240,882 
Management, leasing, and development services136 118 350 325 
Interest income116 36 279 
Total Revenues115,403 83,856 319,526 241,486 
Operating Expenses
Property expenses27,501 20,684 75,631 57,682 
General and administrative11,806 9,464 33,981 27,753 
Depreciation and amortization38,676 28,811 110,048 84,715 
Total Operating Expenses77,983 58,959 219,660 170,150 
Other Expenses
Acquisition expenses70 35 89 
Interest expense10,427 7,299 29,772 22,176 
Total Expenses88,414 66,328 249,467 192,415 
Loss on extinguishment of debt(505)— (505)— 
Gain on sale of real estate13,702 13,669 27,312 13,669 
Net Income40,186 31,197 96,866 62,740 
 Less: net income attributable to noncontrolling interests(2,173)(1,531)(5,852)(3,332)
Net income attributable to Rexford Industrial Realty, Inc. 38,013 29,666 91,014 59,408 
 Less: preferred stock dividends(2,976)(3,636)(10,249)(10,909)
 Less: original issuance costs of redeemed preferred stock(2)
(3,349)— (3,349)— 
 Less: earnings allocated to participating securities (143)(129)(423)(389)
Net income attributable to common stockholders$31,545 $25,901 $76,993 $48,110 
Net income attributable to common stockholders per share – basic$0.23 $0.21 $0.57 $0.40 
Net income attributable to common stockholders per share – diluted$0.23 $0.21 $0.57 $0.40 
Weighted-average shares of common stock outstanding – basic138,762,384 123,548,978 134,922,168 119,153,997 
Weighted-average shares of common stock outstanding – diluted139,630,475 123,843,977 135,429,176 119,424,927 
(1)On January 1, 2019, we adopted ASC 842 and, among other practical expedients, elected the “non-separation practical expedient” in ASC 842, which allows us to avoid separating lease and non-lease rental income. As a result of this election, all rental income earned pursuant to tenant leases, including tenant reimbursements, is reflected as one line, “Rental income,” in the consolidated statements of operations. Prior to the adoption of ASC 842, we presented rental revenues, tenant reimbursements and other income related to leases separately in our consolidated statements of operations. Under the section “Rental Income” on page 36 in the definitions section of this report, we include a presentation of rental revenues, tenant reimbursements and other income for all periods because we believe this information is frequently used by management, investors, securities analysts and other interested parties to evaluate our performance.
(2)In connection with the redemption of our Series A Preferred Stock on August 16, 2021, we recognized a non-cash charge of $3,349, as a reduction to net income attributable to common stockholders for the original issuance costs related to the Series A Preferred Stock.
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Supplemental Financial Reporting Package
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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
September 30, 2021June 30, 2021March 31, 2021December 31, 2020September 30, 2020
Net Income$40,186 $26,037 $30,643 $18,155 $31,197 
Add:
Depreciation and amortization38,676 36,228 35,144 30,554 28,811 
Deduct:
Gain (loss) on sale of real estate13,702 2,750 10,860 (52)13,669 
NAREIT Defined Funds From Operations (FFO)
65,160 59,515 54,927 48,761 46,339 
Less: preferred stock dividends(2,976)(3,637)(3,636)(3,636)(3,636)
Less: original issuance costs of redeemed preferred stock(2)
(3,349)— — — — 
Less: FFO attributable to noncontrolling interests(3)
(3,277)(3,256)(3,134)(2,182)(2,017)
Less: FFO attributable to participating securities(4)
(223)(224)(209)(188)(197)
Company share of FFO$55,335 $52,398 $47,948 $42,755 $40,489 
Company share of FFO per common share‐basic$0.40 $0.39 $0.36 $0.34 $0.33 
Company share of FFO per common share‐diluted$0.40 $0.39 $0.36 $0.34 $0.33 
FFO$65,160 $59,515 $54,927 $48,761 $46,339 
Add:
Acquisition expenses29 35 70 
Loss on extinguishment of debt505 — — 104 — 
Amortization of loss on termination of interest rate swaps615 410 410 218 — 
Core FFO 66,284 59,927 55,366 49,118 46,409 
Less: preferred stock dividends(2,976)(3,637)(3,636)(3,636)(3,636)
Less: Core FFO attributable to noncontrolling interests(3)
(3,475)(3,275)(3,155)(2,193)(2,019)
Less: Core FFO attributable to participating securities(4)
(241)(226)(211)(190)(197)
Company share of Core FFO$59,592 $52,789 $48,364 $43,099 $40,557 
Company share of Core FFO per common share‐basic$0.43 $0.39 $0.37 $0.34 $0.33 
Company share of Core FFO per common share‐diluted$0.43 $0.39 $0.37 $0.34 $0.33 
Weighted-average shares outstanding-basic138,762,384 134,312,672 131,612,881 125,995,123 123,548,978 
Weighted-average shares outstanding-diluted(5)
139,630,475 134,819,742 131,758,744 126,401,077 123,843,977 
(1)For a definition and discussion of non-GAAP financial measures, see the definitions section beginning on page 33 of this report.
(2)In connection with the redemption of our Series A Preferred Stock on August 16, 2021, we recognized a non-cash charge of $3,349, as a reduction to net income attributable to common stockholders for the original issuance costs related to the Series A Preferred Stock.
(3)Noncontrolling interests relate to interests in the Company’s operating partnership, represented by common units and preferred units (Series 1 & Series 2 CPOP units) of partnership interests in the operating partnership that are owned by unit holders other than the Company.
(4)Participating securities include unvested shares of restricted stock, unvested LTIP units and unvested performance units.
(5)Weighted-average shares outstanding-diluted includes adjustments for unvested performance units and shares issuable under forward equity sales agreements if the effect is dilutive for the reported period.
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Non-GAAP FFO and Core FFO Reconciliations. (1)
(unaudited and in thousands, except share and per share data)
Three Months EndedNine Months Ended
September 30, 2021September 30, 2020September 30, 2021September 30, 2020
Net Income$40,186 $31,197 $96,866 $62,740 
Add:
Depreciation and amortization38,676 28,811 110,048 84,715 
Deduct:
Gain on sale of real estate13,702 13,669 27,312 13,669 
Funds From Operations (FFO)65,160 46,339 179,602 133,786 
Less: preferred stock dividends(2,976)(3,636)(10,249)(10,909)
Less: original issuance costs of redeemed preferred stock(2)
(3,349)— (3,349)— 
Less: FFO attributable to noncontrolling interests(3,277)(2,017)(9,667)(5,472)
Less: FFO attributable to participating securities(223)(197)(656)(584)
Company share of FFO$55,335 $40,489 $155,681 $116,821 
Company share of FFO per common share‐basic$0.40 $0.33 $1.15 $0.98 
Company share of FFO per common share‐diluted$0.40 $0.33 $1.15 $0.98 
FFO$65,160 $46,339 $179,602 $133,786 
Add:
Acquisition expenses70 35 89 
Loss on extinguishment of debt505 — 505 — 
Amortization of loss on termination of interest rate swaps615 — 1,435 — 
Core FFO66,284 46,409 181,577 133,875 
Less: preferred stock dividends(2,976)(3,636)(10,249)(10,909)
Less: Core FFO attributable to noncontrolling interests(3,475)(2,019)(9,905)(5,474)
Less: Core FFO attributable to participating securities(241)(197)(678)(584)
Company share of Core FFO$59,592 $40,557 $160,745 $116,908 
Company share of Core FFO per common share‐basic$0.43 $0.33 $1.19 $0.98 
Company share of Core FFO per common share‐diluted$0.43 $0.33 $1.19 $0.98 
Weighted-average shares outstanding-basic138,762,384 123,548,978 134,922,168 119,153,997 
Weighted-average shares outstanding-diluted139,630,475 123,843,977 135,429,176 119,424,927 
(1)For a definition and discussion of non-GAAP financial measures, see the definitions section beginning on page 33 of this report.
(2)In connection with the redemption of our Series A Preferred Stock on August 16, 2021, we recognized a non-cash charge of $3,349, as a reduction to net income attributable to common stockholders for the original issuance costs related to the Series A Preferred Stock.
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Non-GAAP AFFO Reconciliation. (1)
(unaudited and in thousands, except share and per share data)
Three Months Ended
September 30, 2021June 30, 2021March 31, 2021December 31, 2020September 30, 2020
Funds From Operations(2)
$65,160 $59,515 $54,927 $48,761 $46,339 
Add:
Amortization of deferred financing costs508 447 447 408 373 
Non-cash stock compensation4,506 4,463 4,261 2,491 3,101 
Loss on extinguishment of debt505 — — 104 — 
Amortization of loss on termination of interest rate swaps655 410 410 218 — 
Deduct:
Preferred stock dividends2,976 3,637 3,636 3,636 3,636 
Straight line rental revenue adjustment(3)
5,865 4,840 4,199 434 3,088 
Amortization of net below-market lease intangibles3,191 3,386 2,712 2,711 2,751 
Capitalized payments(4)
3,339 2,593 2,322 2,149 2,442 
Note payable (discount) premium amortization, net(23)28 29 47 66 
Recurring capital expenditures(5)
2,509 2,053 2,541 2,671 1,380 
2nd generation tenant improvements and leasing commissions(6)
2,523 4,885 3,528 1,741 2,243 
Adjusted Funds From Operations (AFFO)$50,954 $43,413 $41,078 $38,593 $34,207 

(1)For a definition and discussion of non-GAAP financial measures, see the definitions section beginning on page 33 of this report.
(2)A quarterly reconciliation of net income to Funds From Operations is set forth on page 12 of this report.
(3)The straight line rental revenue adjustment includes concessions of $3,239, $3,127, $2,563 (including deferral of $62 of base rent provided by COVID-19 rent relief agreements), $2,358 (including deferral of $250 of base rent provided by COVID-19 rent relief agreements), $2,273 (including deferral of $686 of base rent provided by COVID-19 rent relief agreements), for the three months ended September 30, 2021, June 30, 2021, March 31, 2021, December 31, 2020, and September 30, 2020, respectively.
(4)Includes capitalized interest, taxes, insurance and construction related compensation costs.
(5)Excludes nonrecurring capital expenditures of $20,271, $21,968, $16,584, $20,569 and $18,835 for the three months ended September 30, 2021, June 30, 2021, March 31, 2021, December 31, 2020, and September 30, 2020, respectively.
(6)Excludes 1st generation tenant improvements and leasing commissions of $2,531, $3,272, $1,369, $1,327 and $1,744 for the three months ended September 30, 2021, June 30, 2021, March 31, 2021, December 31, 2020, and September 30, 2020, respectively.

Third Quarter 2021
Supplemental Financial Reporting Package
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Statement of Operations Reconciliations - NOI, Cash NOI, EBITDAre and Adjusted EBITDA. (1)
(unaudited and in thousands)