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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 19, 2022
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 19, 2022, Rexford Industrial Realty, Inc. (“Rexford Industrial”) issued a press release announcing its earnings for the quarter ended September 30, 2022, and distributed certain supplemental financial information. On October 19, 2022, 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, 2022 and distributed certain supplemental information. On October 19, 2022, 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 19, 2022
 
/s/ Michael S. Frankel
 Michael S. Frankel
Co-Chief Executive Officer
(Principal Executive Officer)
 Rexford Industrial Realty, Inc.
October 19, 2022
 
/s/ Howard Schwimmer
 Howard Schwimmer
Co-Chief Executive Officer
(Principal Executive Officer)


Document
Exhibit 99.1
https://cdn.kscope.io/84acadf84e36d9340d457398b77f51fe-rexlogo11520a05.jpg
REXFORD INDUSTRIAL ANNOUNCES THIRD QUARTER 2022 FINANCIAL RESULTS

Los Angeles, California - October 19, 2022 - 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 2022.

Third Quarter 2022 Financial and Operational Highlights:
Net income attributable to common stockholders of $36.8 million, or $0.21 per diluted share, as compared to $31.5 million, or $0.23 per diluted share, for the prior year quarter.
Company share of Core FFO of $86.1 million, an increase of 44.5% as compared to the prior year quarter.
Company share of Core FFO per diluted share of $0.50, an increase of 16.3% as compared to the prior year quarter.
Consolidated Portfolio Net Operating Income (NOI) of $123.0 million, an increase of 40.1% as compared to the prior year quarter.
Same Property Portfolio NOI increased 7.2% and Same Property Portfolio Cash NOI increased 9.7% as compared to the prior year quarter.
98.6% Average Same Property Portfolio occupancy.
Comparable rental rates on 1.7 million rentable square feet of new and renewal leases increased by 88.6% compared to prior rents on a GAAP basis and by 62.9% on a cash basis.
Acquired 15 properties for an aggregate purchase price of $977.5 million.
Issued a total of 11.5 million shares of common stock for total net proceeds of $697.0 million.
Ended the quarter with a low-leverage balance sheet measured by a net debt-to-enterprise value ratio of 15.9%.
Received credit rating upgrades to BBB+ (S&P) and Baa2 (Moody’s).

“Our team produced exceptional third quarter results, a testament to our entrepreneurial and differentiated business model focused on value creation within the infill Southern California industrial market. Despite growing macroeconomic uncertainty, our infill Southern California industrial markets continue to demonstrate healthy tenant demand, operating at 99% occupancy amidst a persistent, virtually incurable supply-demand imbalance,” stated Michael Frankel and Howard Schwimmer, Co-Chief Executive Officers of the Company. “In the third quarter Rexford Industrial grew Core FFO on a per share basis by 16% compared to the prior year, driven by Core FFO growth of 45%. Our team executed 1.7 million square feet of leasing activity at re-leasing spreads of 89% and 63%, on a GAAP and cash basis, respectively. We completed $977 million of investments in the third quarter, plus an additional $22 million of acquisitions completed subsequent to quarter end, bringing our year-to-date total investments to $2.1 billion. The Company is well-positioned, with over $250 million of additional investments under contract or accepted offer, which are subject to customary closing conditions, that are projected to deliver an aggregate stabilized unlevered yield on total investment of approximately 5.5%, well in-excess of current market yields. Our highly selective approach to capital allocation combined with our investment grade, fortress-like balance sheet, positions the Company to capitalize on accretive internal and external growth strategies that drive long-term value creation for our shareholders through all phases of the economic cycle.”





Financial Results:

The Company reported net income attributable to common stockholders for the third quarter of $36.8 million, or $0.21 per diluted share, compared to $31.5 million, or $0.23 per diluted share, for the prior year quarter. The net income in the prior year quarter includes $13.7 million of gains on sale of real estate. For the nine months ended September 30, 2022, net income attributable to common stockholders was $116.8 million, or $0.70 per diluted share, compared to $77.0 million, or $0.57 per diluted share for the prior year. The net income for the nine months ended September 30, 2022, includes $8.5 million of gains on sale of real estate, as compared to $27.3 million for the prior year.

The Company reported Core FFO for the third quarter of $86.1 million, representing a 44.5% increase compared to $59.6 million for the prior year quarter. The Company reported Core FFO of $0.50 per diluted share, representing an increase of 16.3% compared to $0.43 per diluted share for the prior year quarter. For the nine months ended September 30, 2022, Core FFO was $244.4 million, representing a 52.1% increase compared to $160.7 million for the prior year. For the nine months ended September 30, 2022, the Company reported Core FFO of $1.47 per diluted share, representing an increase of 23.5% compared to $1.19 per diluted share for the prior year.

In the third quarter, the Company’s consolidated portfolio NOI and Cash NOI increased 40.1% and 36.6%, respectively, compared to the prior year quarter. For the nine months ended September 30, 2022, the Company’s consolidated portfolio NOI and Cash NOI increased 41.1% and 37.6%, respectively, compared to the prior year.

In the third quarter, the Company’s Same Property Portfolio NOI and Cash NOI increased 7.2% and 9.7%, respectively, compared to the prior year quarter. For the nine months ended September 30, 2022, the Company’s Same Property Portfolio NOI and Cash NOI increased 7.4% and 10.5%, respectively compared to the prior year.

Operating Results:

Third quarter 2022 leasing activity demonstrates strong tenant demand fundamentals within Rexford Industrial’s target Southern California infill markets:

Q3-2022 Leasing Activity
Releasing Spreads
# of Leases Executed
SF of Leasing
GAAP
Cash
New Leases
53702,88270.5%53.6%
Renewal Leases
77994,94595.3%66.3%
Total Leases
1301,697,82788.6%62.9%

As of September 30, 2022, the Company’s Same Property Portfolio occupancy was 98.4%. Average Same Property Portfolio occupancy for the third quarter 2022 was 98.6%. As of September 30, 2022, the Company’s consolidated portfolio, excluding value-add repositioning assets, was 97.8% occupied and 98.0% leased, and the Company’s consolidated portfolio, including value-add repositioning assets, was 94.5% occupied and 95.3% leased.

Transaction Activity:

During the third quarter of 2022, the Company completed 13 acquisitions with 2.2 million square feet of buildings on 105.1 acres of land, including 1.0 acres of land for near term redevelopment, for an aggregate purchase price of $977.5 million. This includes one transaction not previously disclosed that was acquired through an off-market transaction in mid-September:

13301 Main Street, Los Angeles, located within the LA – South Bay submarket, was acquired for $51.2 million, or $478 per square foot. The 106,969 square foot, single-tenant modern industrial building, situated on 4.5 acres, is leased and generates an initial 4.2% unlevered yield on investment, growing over time by 4.0% annual contractual rent increases.

Subsequent to the third quarter of 2022, the Company completed one acquisition through an off-market transaction in October:




20851 Currier Road, City of Industry, located within the LA – San Gabriel Valley submarket, was acquired for $21.8 million, or $367 per square foot. The 59,412 square foot, Class-A single tenant building, situated on 2.8 acres, is currently vacant and projected to generate a 5.0% unlevered stabilized yield on total investment following a light renovation and lease up at market rents.

Year-to-date, including the property acquired subsequent to quarter end, the Company has completed 46 acquisitions with 5.1 million square feet of buildings on 275.6 acres of land, including 31.4 acres of land for near term redevelopment, for an aggregate purchase price of $2.1 billion. In aggregate, these investments are projected to generate a weighted average unlevered initial yield of 3.0% and an estimated weighted average stabilized yield on total investment of 4.7%.

During the third quarter of 2022, the Company stabilized two repositioning projects with 230,353 square feet and $35.7 million of total investment at a weighted average 11.1% unlevered stabilized yield. Year to date, the Company has stabilized four repositioning/redevelopment projects with 404,220 square feet and $72.6 million of total investment at a weighted average 8.9% unlevered stabilized yield.

Balance Sheet:
The Company ended the third quarter with $1.2 billion in liquidity, including $37.1 million in cash on hand, $1.0 billion available under its unsecured revolving credit facility and an estimated $188.6 million of forward equity proceeds available for settlement to occur before the fourth quarter of 2023. As of September 30, 2022, the Company had $1.9 billion of outstanding debt, with an average interest rate of 3.2% and an average term-to-maturity of 5.8 years.

As previously disclosed, on July 19, 2022, the Company amended its senior unsecured credit agreement to add a $400 million unsecured term loan with a maturity date of July 19, 2024 (with two extension options of one year each). Proceeds from the $400 million term loan were used to fund acquisitions, reduce outstanding borrowings under the unsecured revolving credit facility and for general corporate purposes.

On July 21, 2022, the Company executed five interest rate swap agreements to manage its exposure to changes in 1-month term SOFR related to $300 million of its variable-rate debt. These swaps, which are effective July 27, 2022, and mature on May 26, 2027, fix 1-month term SOFR at a weighted average rate of 2.81725%. Including the impact of these interest rate swaps, the hedged effective interest rate on the $300 million unsecured term loan maturing in May 2027 is 3.717%.

During the third quarter of 2022, the Company executed on its ATM program, selling 5,127,587 shares of common stock subject to forward sale agreements at an average price of $65.43 per share for a gross value of $335.5 million. On September 22, 2022, the Company partially settled these forward equity sale agreements and all the outstanding forward equity sale agreements from prior quarter sales by issuing 11,515,553 shares of common stock for net proceeds of $697.0 million.

As of September 30, 2022, the $1.0 billion ATM program had approximately $201.0 million of remaining capacity.

In the third quarter of 2022, Rexford Industrial’s investment grade issuer and senior unsecured ratings were upgraded by Moody’s Investors Service (“Moody’s”) and S&P Global Ratings (“S&P”). Moody's upgraded the Company's ratings to Baa2 from Baa3 with a stable outlook. S&P upgraded the Company's ratings to BBB+ from BBB with a stable outlook.

Dividends:

On October 17, 2022, the Company’s Board of Directors declared a dividend in the amount of $0.315 per share for the fourth quarter of 2022, payable in cash on January 17, 2023, to common stockholders and common unit holders of record as of December 30, 2022.

On October 17, 2022, 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, payable in cash on December 30, 2022, to preferred stockholders of record as of December 15, 2022.




Guidance

The Company is revising its full year 2022 guidance as indicated below. The Core FFO guidance refers only to the Company’s in-place portfolio as of October 19, 2022, and does not include any assumptions for other acquisitions, dispositions or related balance sheet activities that have not closed. Please refer to the Company’s supplemental information package for a complete list of guidance and 2022 Guidance Rollforward.

2022 Outlook (1)
Q3’22 Updated GuidanceQ2’22 Guidance
Net Income Attributable to Common Stockholders per diluted share$0.88 - $0.90$0.84 - $0.87
Company share of Core FFO per diluted share$1.93 - $1.95$1.87 - $1.90
Same Property Portfolio NOI Growth7.00% - 7.25%5.75% - 6.25%
Same Property Portfolio Cash NOI Growth9.75% - 10.00%8.50% - 9.00%
Average Same Property Portfolio Occupancy (Full Year)98.50% - 98.75%98.50% - 98.75%
General and Administrative Expenses (2)
$62.5M - $63.5M$60.5M - $61.5M
Net Interest Expense$50.5M - $51.0M$51.0M - $52.0M
(1)2022 Guidance represents the in-place portfolio as of October 19, 2022, and does not include any assumptions for prospective acquisitions, dispositions or related balance sheet activities that have not closed.
(2)2022 General and Administrative expense guidance includes estimated non-cash equity compensation expense of $26.0 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.

A number of factors could impact the Company’s ability to deliver results in line with its guidance, including, but not limited to, the impact of the ongoing COVID-19 pandemic, interest rates, inflation, 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:

A conference call with senior management will be held on Thursday, October 20, 2022, at 1:00 p.m. Eastern Time.

To participate in the live telephone conference call, please access the following dial-in numbers at least five minutes prior to the start time.
1-877-407-0789 (for domestic callers)
1-201-689-8562 (for international callers)

Conference call playback will be available through November 20, 2022 and can be accessed using the following numbers and pass code 13733021.
1-844-512-2921 (for domestic callers)
1-412-317-6671 (for international callers)

A live webcast and replay of the conference call will also be available at www.ir.rexfordindustrial.com.




About Rexford Industrial:

Rexford Industrial creates value by investing in, operating and redeveloping industrial properties throughout infill Southern California, the world's fourth largest industrial market and consistently the highest-demand, lowest supply market in the nation. The Company’s highly differentiated strategy enables internal and external growth opportunities through its proprietary value creation and asset management capabilities. Rexford Industrial’s high-quality, irreplaceable portfolio comprises 346 properties with approximately 41.8 million rentable square feet occupied by a stable and diverse tenant base. Structured as a real estate investment trust (REIT) listed on the New York Stock Exchange under the ticker “REXR,” Rexford Industrial is an S&P MidCap 400 Index member. For more information, please 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, 2021, 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.

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, (iv) preferred stock redemption charges and (v) 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.

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 2022 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.
2022 Estimate
LowHigh
Net income attributable to common stockholders$0.88 $0.90 
Company share of depreciation and amortization1.09 1.09 
Company share of gains on sale of real estate(0.05)(0.05)
Company share of FFO$1.92 $1.94 
Add: Core FFO adjustments(1)
0.01 0.01 
Company share of Core FFO$1.93 $1.95 
(1)Core FFO adjustments consist of (i) acquisition expenses, (ii) loss on extinguishment of debt and (iii) the amortization of the loss on termination of interest rate swaps.




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 2022 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, 2021 through September 30, 2022, and excludes properties that were acquired or sold during the period from January 1, 2021 through September 30, 2022, and properties acquired prior to January 1, 2021, that were classified as current or future repositioning, redevelopment or lease-up during 2021 or 2022 (unless otherwise noted), which we believe significantly affected the properties’ results during the comparative periods. As of September 30, 2022, our 2022 Same Property Portfolio consists of 224 properties aggregating 28,581,460 rentable square feet.

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: As of September 30, 2022, we had consolidated indebtedness of $1.9 billion, reflecting a net debt to enterprise value of approximately 15.9%. 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.

Contact:

Aric Chang
Senior Vice President, Investor Relations and Capital Markets
310.734.6952
achang@rexfordindustrial.com



Rexford Industrial Realty, Inc.
Consolidated Balance Sheets
(In thousands except share data)
September 30, 2022December 31, 2021
(unaudited)
ASSETS  
Land$5,559,795 $4,143,021 
Buildings and improvements3,275,572 2,588,836 
Tenant improvements141,413 127,708 
Furniture, fixtures, and equipment132 132 
Construction in progress88,545 71,375 
Total real estate held for investment9,065,457 6,931,072 
Accumulated depreciation(576,004)(473,382)
Investments in real estate, net8,489,453 6,457,690 
Cash and cash equivalents37,141 43,987 
Restricted cash— 11 
Rents and other receivables, net12,592 11,027 
Deferred rent receivable, net81,867 61,511 
Deferred leasing costs, net42,758 32,940 
Deferred loan costs, net5,184 1,961 
Acquired lease intangible assets, net175,913 132,158 
Acquired indefinite-lived intangible5,156 5,156 
Interest rate swap asset12,565 — 
Other assets27,868 19,066 
Acquisition related deposits8,200 8,445 
Assets associated with real estate held for sale, net— 7,213 
Total Assets$8,898,697 $6,781,165 
LIABILITIES & EQUITY  
Liabilities  
Notes payable$1,934,082 $1,399,565 
Interest rate swap liability— 7,482 
Accounts payable, accrued expenses and other liabilities113,770 65,833 
Dividends and distributions payable59,926 40,143 
Acquired lease intangible liabilities, net154,851 127,017 
Tenant security deposits69,756 57,370 
Prepaid rents19,992 15,829 
Liabilities associated with real estate held for sale— 231 
Total Liabilities2,352,377 1,713,470 
Equity  
Rexford Industrial Realty, Inc. stockholders’ equity 
Preferred stock, $0.01 par value per share, 10,050,000 shares authorized:
5.875% series B cumulative redeemable preferred stock, 3,000,000 shares outstanding at September 30, 2022 and December 31, 2021 ($75,000 liquidation preference)
72,443 72,443 
5.625% series C cumulative redeemable preferred stock, 3,450,000 shares outstanding at September 30, 2022 and December 31, 2021 ($86,250 liquidation preference)
83,233 83,233 
Common Stock,$ 0.01 par value per share, 489,950,000 authorized and 182,576,706 and 160,511,482 shares outstanding at September 30, 2022 and December 31, 2021, respectively
1,826 1,605 
Additional paid in capital6,254,853 4,828,292 
Cumulative distributions in excess of earnings(237,135)(191,120)
Accumulated other comprehensive loss9,223 (9,874)
Total stockholders’ equity6,184,443 4,784,579 
Noncontrolling interests361,877 283,116 
Total Equity6,546,320 5,067,695 
Total Liabilities and Equity$8,898,697 $6,781,165 



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,
 2022202120222021
REVENUES  
Rental income$162,581 $115,260 $452,156 $319,140 
Management and leasing services163 136 456 350 
Interest income36 
TOTAL REVENUES162,747 115,403 452,617 319,526 
OPERATING EXPENSES
Property expenses39,614 27,501 108,448 75,631 
General and administrative14,951 11,806 44,531 33,981 
Depreciation and amortization51,146 38,676 140,226 110,048 
TOTAL OPERATING EXPENSES105,711 77,983 293,205 219,660 
OTHER EXPENSES
Other expenses(1)
413 746 35 
Interest expense14,975 10,427 34,826 29,772 
TOTAL EXPENSES121,099 88,414 328,777 249,467 
Loss on extinguishment of debt— (505)(877)(505)
Gains on sale of real estate— 13,702 8,486 27,312 
NET INCOME41,648 40,186 131,449 96,866 
Less: net income attributable to noncontrolling interests(2,368)(2,173)(7,142)(5,852)
NET INCOME ATTRIBUTABLE TO REXFORD INDUSTRIAL REALTY, INC.39,280 38,013 124,307 91,014 
Less: preferred stock dividends(2,314)(2,976)(6,943)(10,249)
Less: original issuance costs of redeemed preferred stock— (3,349)— (3,349)
Less: earnings attributable to participating securities (201)(143)(605)(423)
NET INCOME ATTRIBUTABLE TO COMMON STOCKHOLDERS$36,765 $31,545 $116,759 $76,993 
Net income attributable to common stockholders per share basic
$0.21 $0.23 $0.70 $0.57 
Net income attributable to common stockholders per share diluted
$0.21 $0.23 $0.70 $0.57 
Weighted-average shares of common stock outstanding – basic171,909 138,762 165,852 134,922 
Weighted-average shares of common stock outstanding – diluted172,831 139,630 166,401 135,429 

(1)Acquisition expenses for the three and nine months ended September 30, 2021, have been reclassified to “Other expenses” to conform to the current period presentation.



Rexford Industrial Realty, Inc.
Same Property Portfolio Occupancy and NOI and Cash NOI
(Unaudited, dollars in thousands)
 
 
Same Property Portfolio Occupancy:
September 30,
20222021Change (basis points)
Quarterly Weighted Average Occupancy:(1)
Los Angeles County99.1%98.6%50 bps
Orange County98.8%98.9%(10) bps
Riverside / San Bernardino County96.5%99.1%(260) bps
San Diego County98.9%98.3%60 bps
Ventura County99.2%97.3%190 bps
Same Property Portfolio Weighted Average Occupancy98.6%98.6%— bps
Ending Occupancy:98.4%98.8%(40) bps
(1)Calculated by averaging the occupancy rate at the end of each month in 3Q-2022 and June 2022 (for 3Q-2022) and the end of each month in 3Q-2021 and June 2021 (for 3Q-2021).



Same Property Portfolio NOI and Cash NOI:    
Three Months Ended September 30,Nine Months Ended September 30,
20222021$ Change% Change20222021$ Change% Change
Rental income$103,463 $96,156 $7,307 7.6 %$305,883 $282,791 $23,092 8.2 %
Property expenses24,286 22,320 1,966 8.8 %72,278 65,321 6,957 10.7 %
Same Property Portfolio NOI$79,177 $73,836 $5,341 7.2 %$233,605 $217,470 $16,135 7.4 %
Straight line rental revenue adjustment(2,329)(3,137)808 (25.8)%(8,251)(10,864)2,613 (24.1)%
Amortization of above/below market lease intangibles(1,527)(2,018)491 (24.3)%(4,734)(6,907)2,173 (31.5)%
Same Property Portfolio Cash NOI$75,321 $68,681 $6,640 9.7 %$220,620 $199,699 $20,921 10.5 %




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,
2022202120222021
Net income$41,648 $40,186 $131,449 $96,866 
Add:
General and administrative14,951 11,806 44,531 33,981 
Depreciation and amortization51,146 38,676 140,226 110,048 
Other expenses413 746 35 
Interest expense14,975 10,427 34,826 29,772 
Loss on extinguishment of debt— 505 877 505 
Deduct:
Management, leasing and development services163 136 456 350 
Interest income36 
Gain on sale of real estate— 13,702 8,486 27,312 
Net operating income (NOI)$122,967 $87,759 $343,708 $243,509 
Straight line rental revenue adjustment(8,411)(5,865)(23,753)(14,904)
Amortization of above/below market lease intangibles(7,033)(3,191)(18,250)(9,289)
Cash NOI$107,523 $78,703 $301,705 $219,316 
NOI$122,967 $87,759 $343,708 $243,509 
Non-Same Property Portfolio rental income(59,118)(19,104)(146,273)(36,349)
Non-Same Property Portfolio property expenses15,328 5,181 36,170 10,310 
Same Property Portfolio NOI$79,177 $73,836 $233,605 $217,470 
Straight line rental revenue adjustment(2,329)(3,137)(8,251)(10,864)
Amortization of above/below market lease intangibles(1,527)(2,018)(4,734)(6,907)
Same Property Portfolio Cash NOI$75,321 $68,681 $220,620 $199,699 




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,
 2022202120222021
Net income$41,648 $40,186 $131,449 $96,866 
Add:  
Depreciation and amortization51,146 38,676 140,226 110,048 
Deduct:
Gain on sale of real estate— 13,702 8,486 27,312 
Funds From Operations (FFO)$92,794 $65,160 $263,189 $179,602 
Less: preferred stock dividends(2,314)(2,976)(6,943)(10,249)
Less: original issuance costs of redeemed preferred stock— (3,349)— (3,349)
Less: FFO attributable to noncontrolling interests(1)
(4,454)(3,277)(12,372)(9,667)
Less: FFO attributable to participating securities(2)
(306)(223)(909)(656)
Company share of FFO$85,720 $55,335 $242,965 $155,681 
Company Share of FFO per common share – basic$0.50 $0.40 $1.46 $1.15 
Company Share of FFO per common share – diluted$0.50 $0.40 $1.46 $1.15 
FFO$92,794 $65,160 $263,189 $179,602 
Adjust:  
Acquisition expenses359 451 35 
Loss on extinguishment of debt— 505 877 505 
Amortization of loss on termination of interest rate swaps59 615 194 1,435 
Core FFO$93,212 $66,284 $264,711 $181,577 
Less: preferred stock dividends(2,314)(2,976)(6,943)(10,249)
Less: Core FFO attributable to noncontrolling interest(1)
(4,471)(3,475)(12,433)(9,905)
Less: Core FFO attributable to participating securities(2)
(307)(241)(914)(678)
Company share of Core FFO$86,120 $59,592 $244,421 $160,745 
Company share of Core FFO per common share – basic$0.50 $0.43 $1.47 $1.19 
Company share of Core FFO per common share – diluted$0.50 $0.43 $1.47 $1.19 
Weighted-average shares of common stock outstanding – basic171,909 138,762 165,852 134,922 
Weighted-average shares of common stock outstanding – diluted172,831 139,630 166,401 135,429 
(1)Noncontrolling interests relate to interests in the Company’s operating partnership, represented by common units and preferred units (Series 1, 2 & 3 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:
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 2021 Annual Report on Form 10-K, which was filed with the Securities and Exchange Commission (“SEC”) on February 17, 2022. 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
Angela L. KleimanDirector
Debra L. MorrisDirector
Tyler H. RoseLead Independent Director
Investor Relations Information
Aric Chang
SVP, Investor Relations and Capital Markets
achang@rexfordindustrial.com
(310) 734-6952
Equity Research Coverage
Berenberg Capital MarketsConnor Siversky(646) 949-9037
BofA SecuritiesCamille Bonnel(416) 369-2140
Capital One SecuritiesChris Lucas(571) 633-8151
Citigroup Investment ResearchCraig Mailman(212) 816-4471
Green Street AdvisorsVince Tibone(949) 640-8780
J.P. Morgan SecuritiesMichael Mueller(212) 622-6689
Jefferies LLCJonathan Petersen(212) 284-1705
Robert W. Baird & Co.David Rodgers(216) 737-7341
StifelStephen Manaker(212) 271-3716
Wells Fargo SecuritiesBlaine Heck(443) 263-6529
Wolfe ResearchAndrew Rosivach(646) 582-9250
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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Supplemental Financial Reporting Package
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Company Overview.
For the Quarter Ended September 30, 2022
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Highlights - Consolidated Financial Results.
Quarterly Results(in millions)

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Supplemental Financial Reporting Package
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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, 2022June 30, 2022March 31, 2022December 31, 2021September 30, 2021
Financial Results:
Total rental income$162,581$148,987$140,588$132,593$115,260
Net income$41,648$40,901$48,900$39,380$40,186
Net Operating Income (NOI)$122,967$113,582$107,159$100,503$87,759
Company share of Core FFO$86,120$81,671$76,630$69,591$59,592
Company share of Core FFO per common share - diluted$0.50$0.49$0.48$0.45$0.43
Adjusted EBITDA$117,532$108,329$101,546$95,804$88,988
Dividend declared per common share$0.315$0.315$0.315$0.240$0.240
Portfolio Statistics:
Portfolio rentable square feet (“RSF”)41,716,18239,441,05538,133,16636,922,02134,932,613
Ending occupancy94.5%95.2%96.3%96.3%96.1%
Ending occupancy excluding repositioning/redevelopment(2)
97.8%98.8%99.2%99.5%99.4%
Rent Change - GAAP88.6%83.0%71.1%34.2%54.3%
Rent Change - Cash62.9%61.5%56.9%21.5%38.5%
Same Property Portfolio Performance:
Same Property Portfolio ending occupancy(3)
98.4%98.9%99.3%99.1%98.8%
Same Property Portfolio NOI growth(4)
7.2%7.0%8.0%
Same Property Portfolio Cash NOI growth(4)
9.7%10.1%11.7%
Capitalization:
Total shares and units issued and outstanding at period end(5)
189,606,738178,087,557171,153,722166,663,680157,609,745
Series B and C Preferred Stock and Series 1, 2 and 3 CPOP Units$241,068$241,068$241,068$229,068$229,068
Total equity market capitalization$10,100,618$10,497,130$13,007,424$13,747,159$9,173,421
Total consolidated debt$1,948,390$1,673,936$1,537,486$1,413,121$1,400,552
Total combined market capitalization (net debt plus equity)$12,011,867$12,136,749$14,496,066$15,116,293$10,513,819
Ratios:
Net debt to total combined market capitalization15.9%13.5%10.3%9.1%12.7%
Net debt to Adjusted EBITDA (quarterly results annualized)4.1x3.8x3.7x3.6x3.8x
(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 32 and page 12 of this report, respectively.
(2)Beginning in Q3-22, “Ending occupancy excluding repositioning/redevelopment” excludes “Other Repositioning” projects as well as those listed individually on pages 26-27. Prior quarters have been adjusted to conform to the current definition.
(3)Reflects the ending occupancy for the current 2022 Same Property Portfolio for each period presented. For historical ending occupancy as reported in prior Supplemental packages, see “SPP Historical Information” on page 35.
(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: 7,305,749 (Sep 30, 2022), 7,305,749 (Jun 30, 2022), 6,417,107 (Mar 31, 2022), 6,401,377 (Dec 31, 2021) and 6,415,276 (Sep 30, 2021). Excludes the following # of shares of unvested restricted stock: 275,717 (Sep 30, 2022), 282,611 (Jun 30, 2022), 280,972 (Mar 31, 2022), 249,179 (Dec 31, 2021) and 250,439 (Sep 30, 2021). Excludes unvested LTIP units and unvested performance units.
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Guidance.
As of September 30, 2022
2022 OUTLOOK*
METRICYTD RESULTS AS OF SEPTEMBER 30, 2022Q3-2022 UPDATED GUIDANCEQ2-2022 GUIDANCE
Net Income Attributable to Common Stockholders per diluted share (1)(2)
$0.70$0.88 - $0.90$0.84 - $0.87
Company share of Core FFO per diluted share (1)(2)
$1.47$1.93 - $1.95$1.87 - $1.90
Same Property Portfolio NOI Growth - GAAP (3)
7.4%7.00% - 7.25%5.75% - 6.25%
Same Property Portfolio NOI Growth - Cash (3)
10.5%9.75% - 10.00%8.50% - 9.00%
Average Same Property Portfolio Occupancy (3)
98.9%98.50% - 98.75%98.50% - 98.75%
General and Administrative Expenses (4)
$44.5M$62.5M - $63.5M$60.5M - $61.5M
Net Interest Expense$34.8M$50.5M - $51.0M$51.0M - $52.0M
(1)Our 2022 Net Income and Core FFO guidance refers to the Company's in-place portfolio as of October 19, 2022, and does not include any assumptions for prospective acquisitions, dispositions or related balance sheet activities that have not closed.
(2)See page 36 for a reconciliation of the Company’s 2022 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 2022 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, 2021 through October 19, 2022 and excludes properties that were or will be classified as repositioning/redevelopment (current and future) or lease-up during 2021 and 2022 (unless otherwise noted). As of September 30, 2022, our 2022 Same Property Portfolio consists of 224 properties aggregating 28.6 million rentable square feet.
(4)Our 2022 General and Administrative expense guidance includes estimated non-cash equity compensation expense of $26.0 million.
* A number of factors could impact the Company’s ability to deliver results in line with its guidance, including, but not limited to, the impact of the ongoing COVID-19 pandemic, interest rates, inflation, 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.
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Guidance (Continued).
As of September 30, 2022

2022 Guidance Rollforward (1)

Earnings ComponentsRange
($ per share)
Notes
2022 Core FFO Per Diluted Share Guidance (Previous)
$1.87$1.90Guidance at Q2 2022
Same Property Portfolio NOI Growth0.020.02
FY 2022 SP NOI Guidance range of 7.00% - 7.25%
NOI, 3Q-4Q Acquisitions0.030.03Incremental NOI related to $390M 3Q acquisitions closed post-2Q earnings release and $22M 4Q acquisitions closed subsequent to quarter-end
Net G&A Expense(0.01)(0.01)
Guidance range of $62.5M - $63.5M
Net Interest Expense0.01
Guidance range of $50.5M - $51.0M
Other0.010.01Includes incremental NOI from prior acquisitions and redevelopment/repositionings related to rental rate growth/higher occupancy; impact of investment related funding activity
2022 Core FFO Per Diluted Share Guidance (Current)
$1.93$1.95
Core FFO Per Diluted Share Annual Growth18%19%
(1)2022 Guidance and Guidance Rollforward represent the in-place portfolio as of October 19, 2022, and does not include any assumptions for prospective acquisitions, dispositions or related balance sheet activities that have not closed unless otherwise noted.


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Consolidated Balance Sheets.
(unaudited and in thousands)
September 30, 2022June 30, 2022March 31, 2022December 31, 2021September 30, 2021
ASSETS
Land$5,559,795 $4,896,343 $4,466,240 $4,143,021 $3,714,038 
Buildings and improvements3,275,572 2,923,571 2,737,575 2,588,836 2,466,435 
Tenant improvements141,413 136,905 131,169 127,708 124,156 
Furniture, fixtures, and equipment132 132 132 132 132 
Construction in progress88,545 90,192 71,147 71,375 50,823 
  Total real estate held for investment9,065,457 8,047,143 7,406,263 6,931,072 6,355,584 
Accumulated depreciation(576,004)(538,711)(505,196)(473,382)(452,019)
Investments in real estate, net8,489,453 7,508,432 6,901,067 6,457,690 5,903,565 
Cash and cash equivalents37,141 34,317 48,844 43,987 60,154 
Restricted cash— — — 11 50 
Rents and other receivables, net12,592 10,382 11,130 11,027 9,863 
Deferred rent receivable, net81,867 75,024 67,832 61,511 55,726 
Deferred leasing costs, net42,758 37,343 33,703 32,940 33,531 
Deferred loan costs, net5,184 5,532 1,729 1,961 2,192 
Acquired lease intangible assets, net(1)
175,913 164,764 153,665 132,158 125,697 
Acquired indefinite-lived intangible5,156 5,156 5,156 5,156 5,156 
Interest rate swap asset12,565 — — — — 
Other assets27,868 19,513 22,671 19,066 18,213 
Acquisition related deposits8,200 18,475 18,275 8,445 9,610 
Assets associated with real estate held for sale, net(2)
— — — 7,213 — 
Total Assets$8,898,697 $7,878,938 $7,264,072 $6,781,165 $6,223,757 
LIABILITIES & EQUITY
Liabilities
Notes payable$1,934,082 $1,660,521 $1,524,279 $1,399,565 $1,386,649 
Interest rate swap liability— — 1,212 7,482 10,205 
Accounts payable, accrued expenses and other liabilities113,770 81,742 85,465 65,833 77,968 
Dividends and distributions payable59,926 56,300 54,115 40,143 37,970 
Acquired lease intangible liabilities, net(3)
154,851 149,580 135,275 127,017 111,444 
Tenant security deposits69,756 64,436 61,701 57,370 55,487 
Prepaid rents19,992 14,661 14,265 15,829 16,358 
Liabilities associated with real estate held for sale(2)
— — — 231 — 
Total Liabilities2,352,377 2,027,240 1,876,312 1,713,470 1,696,081 
Equity
Preferred stock155,676 155,676 155,676 155,676 155,676 
Common stock1,826 1,711 1,650 1,605 1,514 
Additional paid in capital6,254,853 5,556,819 5,133,875 4,828,292 4,283,600 
Cumulative distributions in excess of earnings(237,135)(216,588)(198,999)(191,120)(187,510)
Accumulated other comprehensive loss9,223 (2,974)(3,674)(9,874)(13,234)
Total stockholders’ equity6,184,443 5,494,644 5,088,528 4,784,579 4,240,046 
Noncontrolling interests361,877 357,054 299,232 283,116 287,630 
Total Equity6,546,320 5,851,698 5,387,760 5,067,695 4,527,676 
Total Liabilities and Equity$8,898,697 $7,878,938 $7,264,072 $6,781,165 $6,223,757 
(1)Includes net above-market tenant lease intangibles of $14,434 (September 30, 2022), $13,810 (June 30, 2022), $10,312 (March 31, 2022), $10,671 (December 31, 2021) and $11,086 (September 30, 2021). Balance also includes net below-market ground lease intangible of $12,888 (September 30, 2022), $12,929 (June 30, 2022) and $12,970 (March 31, 2022) related to a ground lease that was assumed by Company, for which the Company is the lessee, in connection with its acquisition of 2970 East 50th Street.
(2)At December 31, 2021, our property located at 28159 Avenue Stanford was classified as held for sale.
(3)Represents net below-market tenant lease intangibles as of the balance sheet date.
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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, 2022Jun 30, 2022Mar 31, 2022Dec 31, 2021Sep 30, 2021
Revenues
Rental income(1)
$162,581 $148,987 $140,588 $132,593 $115,260 
Management and leasing services163 130 163 118 136 
Interest income
Total Revenues162,747 149,118 140,752 132,712 115,403 
Operating Expenses
Property expenses39,614 35,405 33,429 32,090 27,501 
General and administrative14,951 14,863 14,717 15,009 11,806 
Depreciation and amortization51,146 46,609 42,471 41,221 38,676 
Total Operating Expenses105,711 96,877 90,617 88,320 77,983 
Other Expenses
Other expenses(2)
413 295 38 1,262 
Interest expense14,975 10,168 9,683 10,367 10,427 
Total Expenses121,099 107,340 100,338 99,949 88,414 
Loss on extinguishment of debt— (877)— — (505)
Gain on sale of real estate— — 8,486 6,617 13,702 
Net Income41,648 40,901 48,900 39,380 40,186 
Less: net income attributable to noncontrolling interests(2,368)(2,290)(2,484)(2,153)(2,173)
Net income attributable to Rexford Industrial Realty, Inc. 39,280 38,611 46,416 37,227 38,013 
Less: preferred stock dividends(2,314)(2,315)(2,314)(2,314)(2,976)
Less: original issuance costs of redeemed preferred stock(3)
— — — — (3,349)
Less: earnings allocated to participating securities (201)(203)(201)(145)(143)
Net income attributable to common stockholders$36,765 $36,093 $43,901 $34,768 $31,545 
Earnings per Common Share
Net income attributable to common stockholders per share - basic$0.21 $0.22 $0.27 $0.23 $0.23 
Net income attributable to common stockholders per share - diluted$0.21 $0.22 $0.27 $0.23 $0.23 
Weighted average shares outstanding - basic171,908,895164,895,701160,628,843152,270,435138,762,384
Weighted average shares outstanding - diluted172,831,173165,200,577161,048,592153,872,639139,630,475
(1)We 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. Under the section “Rental Income” on page 35 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)Acquisition expenses for all periods prior to December 31, 2021 have been reclassified to “Other expenses.” Other expenses for the three months ended December 31, 2021 include (i) a $992 impairment charge related to the right-of-use asset for one of our leased office spaces that we subleased, (ii) $211 of construction costs related to cancelled projects and (iii) $59 of acquisition expenses.
(3)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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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,
2022202120222021
Revenues
Rental income$162,581 $115,260 $452,156 $319,140 
Management and leasing services163 136 456 350 
Interest income36 
Total Revenues162,747 115,403 452,617 319,526 
Operating Expenses
Property expenses39,614 27,501 108,448 75,631 
General and administrative14,951 11,806 44,531 33,981 
Depreciation and amortization51,146 38,676 140,226 110,048 
Total Operating Expenses105,711 77,983 293,205 219,660 
Other Expenses
Other expenses413 746 35 
Interest expense14,975 10,427 34,826 29,772 
Total Expenses121,099 88,414 328,777 249,467 
Loss on extinguishment of debt— (505)(877)(505)
Gain on sale of real estate— 13,702 8,486 27,312 
Net Income41,648 40,186 131,449 96,866 
 Less: net income attributable to noncontrolling interests(2,368)(2,173)(7,142)(5,852)
Net income attributable to Rexford Industrial Realty, Inc. 39,280 38,013 124,307 91,014 
 Less: preferred stock dividends(2,314)(2,976)(6,943)(10,249)
 Less: original issuance costs of redeemed preferred stock(1)
— (3,349)— (3,349)
 Less: earnings allocated to participating securities (201)(143)(605)(423)
Net income attributable to common stockholders$36,765 $31,545 $116,759 $76,993 
Net income attributable to common stockholders per share – basic$0.21 $0.23 $0.70 $0.57 
Net income attributable to common stockholders per share – diluted$0.21 $0.23 $0.70 $0.57 
Weighted-average shares of common stock outstanding – basic171,908,895 138,762,384 165,852,466 134,922,168 
Weighted-average shares of common stock outstanding – diluted172,831,173 139,630,475 166,401,434 135,429,176 
(1)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 FFO and Core FFO Reconciliations. (1)
(unaudited and in thousands, except share and per share data)
Three Months Ended
September 30, 2022June 30, 2022March 31, 2022December 31, 2021September 30, 2021
Net Income$41,648 $40,901 $48,900 $39,380 $40,186 
Add:
Depreciation and amortization51,146 46,609 42,471 41,221 38,676 
Deduct:
Gain on sale of real estate— — 8,486 6,617 13,702 
NAREIT Defined Funds From Operations (FFO)
92,794 87,510 82,885 73,984 65,160 
Less: preferred stock dividends(2,314)(2,315)(2,314)(2,314)(2,976)
Less: original issuance costs of redeemed preferred stock(2)
— — — — (3,349)
Less: FFO attributable to noncontrolling interests(3)
(4,454)(4,131)(3,787)(3,528)(3,277)
Less: FFO attributable to participating securities(4)
(306)(307)(296)(258)(223)
Company share of FFO$85,720 $80,757 $76,488 $67,884 $55,335 
Company share of FFO per common share‐basic$0.50 $0.49 $0.48 $0.45 $0.40 
Company share of FFO per common share‐diluted$0.50 $0.49 $0.47 $0.44 $0.40 
FFO$92,794 $87,510 $82,885 $73,984 $65,160 
Add:
Acquisition expenses359 56 36 59 
Impairment of right-of-use asset(5)
— — — 992 — 
Loss on extinguishment of debt— 877 — — 505 
Amortization of loss on termination of interest rate swaps59 23 112 734 615 
Core FFO 93,212 88,466 83,033 75,769 66,284 
Less: preferred stock dividends(2,314)(2,315)(2,314)(2,314)(2,976)
Less: Core FFO attributable to noncontrolling interests(3)
(4,471)(4,169)(3,793)(3,599)(3,475)
Less: Core FFO attributable to participating securities(4)
(307)(311)(296)(265)(241)
Company share of Core FFO$86,120 $81,671 $76,630 $69,591 $59,592 
Company share of Core FFO per common share‐basic$0.50 $0.50 $0.48 $0.46 $0.43 
Company share of Core FFO per common share‐diluted$0.50 $0.49 $0.48 $0.45 $0.43 
Weighted-average shares outstanding-basic171,908,895 164,895,701 160,628,843 152,270,435 138,762,384 
Weighted-average shares outstanding-diluted(6)
172,831,173 165,200,577 161,048,592 153,872,639 139,630,475 
(1)For a definition and discussion of non-GAAP financial measures, see the definitions section beginning on page 32 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 and Series 3 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)Represents an impairment charge related to the right-of-use asset for one of our leased office spaces that we decided to sublease.
(6)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 Ended September 30,Nine Months Ended September 30,
2022202120222021
Net Income$41,648 $40,186 $131,449 $96,866 
Add:
Depreciation and amortization51,146 38,676 140,226 110,048 
Deduct:
Gain on sale of real estate— 13,702 8,486 27,312 
Funds From Operations (FFO)92,794 65,160 263,189 179,602 
Less: preferred stock dividends(2,314)(2,976)(6,943)(10,249)
Less: original issuance costs of redeemed preferred stock(2)
— (3,349)— (3,349)
Less: FFO attributable to noncontrolling interests(4,454)(3,277)(12,372)(9,667)
Less: FFO attributable to participating securities(306)(223)(909)(656)
Company share of FFO$85,720 $55,335 $242,965 $155,681 
Company share of FFO per common share‐basic$0.50 $0.40 $1.46 $1.15 
Company share of FFO per common share‐diluted$0.50 $0.40 $1.46 $1.15 
FFO$92,794 $65,160 $263,189 $179,602 
Add:
Acquisition expenses359 451 35 
Loss on extinguishment of debt— 505 877 505 
Amortization of loss on termination of interest rate swaps59 615 194 1,435 
Core FFO93,212 66,284 264,711 181,577 
Less: preferred stock dividends(2,314)(2,976)(6,943)(10,249)
Less: Core FFO attributable to noncontrolling interests(4,471)(3,475)(12,433)(9,905)
Less: Core FFO attributable to participating securities(307)(241)(914)(678)
Company share of Core FFO$86,120 $59,592 $244,421 $160,745 
Company share of Core FFO per common share‐basic$0.50 $0.43 $1.47 $1.19 
Company share of Core FFO per common share‐diluted$0.50 $0.43 $1.47 $1.19 
Weighted-average shares outstanding-basic171,908,895 138,762,384 165,852,466 134,922,168 
Weighted-average shares outstanding-diluted172,831,173 139,630,475 166,401,434 135,429,176 
(1)For a definition and discussion of non-GAAP financial measures, see the definitions section beginning on page 32 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,
2022
June 30,
2022
March 31,
2022
December 31,
2021
September 30,
2021
Funds From Operations(2)
$92,794 $87,510 $82,885 $73,984 $65,160 
Add:
Amortization of deferred financing costs766 563 520 517 508 
Non-cash stock compensation6,316 6,342 6,052 6,277 4,506 
Loss on extinguishment of debt— 877 — — 505 
Impairment of right-of-use asset— — — 992 — 
Amortization related to termination/settlement of interest rate derivatives128 93 181 804 655 
Deduct:
Preferred stock dividends2,314 2,315 2,314 2,314 2,976 
Straight line rental revenue adjustment(3)
8,411 8,441 6,901 5,999 5,865 
Amortization of net below-market lease intangibles7,033 6,126 5,091 6,154 3,191 
Capitalized payments(4)
7,272 5,715 4,878 4,150 3,339 
Note payable (discount) premium amortization, net(63)(62)(61)(60)(23)
Recurring capital expenditures(5)
2,658 2,063