rexr-20231018
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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 18, 2023
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 18, 2023, Rexford Industrial Realty, Inc. (“Rexford Industrial”) issued a press release announcing its earnings for the quarter ended September 30, 2023, and distributed certain supplemental financial information. On October 18, 2023, 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, 2023 and distributed certain supplemental information. On October 18, 2023, 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 18, 2023
 
/s/ Michael S. Frankel
 Michael S. Frankel
Co-Chief Executive Officer
(Principal Executive Officer)
 Rexford Industrial Realty, Inc.
October 18, 2023
 
/s/ Howard Schwimmer
 Howard Schwimmer
Co-Chief Executive Officer
(Principal Executive Officer)


Document
Exhibit 99.1
https://cdn.kscope.io/fc64e54c5b5393e6755ac513a3f6f6a7-rexlogo11520a05.jpg
Rexford Industrial Announces Third Quarter 2023 Financial Results

Los Angeles, California - October 18, 2023 - 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 2023.

Third Quarter 2023 Financial and Operational Highlights:
Net income attributable to common stockholders of $56.3 million, or $0.27 per diluted share, as compared to $36.8 million, or $0.21 per diluted share, for the prior year quarter.
Company share of Core FFO of $115.0 million, an increase of 33.5% as compared to the prior year quarter.
Company share of Core FFO per diluted share of $0.56, an increase of 12.0% as compared to the prior year quarter.
Consolidated Portfolio Net Operating Income (NOI) of $156.1 million, an increase of 27.0% as compared to the prior year quarter.
Same Property Portfolio NOI increased 8.9% and Same Property Portfolio Cash NOI increased 9.5% as compared to the prior year quarter.
97.8% Average Same Property Portfolio occupancy.
Comparable rental rates on 1.5 million rentable square feet of new and renewal leases increased by 64.8% compared to prior rents on a GAAP basis and by 51.4% on a cash basis.
Completed six acquisitions for an aggregate purchase price of $314.8 million.
Ended the quarter with a low-leverage balance sheet measured by a net debt-to-enterprise value ratio of 16.7%.

“Rexford Industrial’s third quarter results continue to demonstrate the strength of our value creation driven business model, our entrepreneurial team and the favorable long-term tenant demand fundamentals associated with our infill Southern California industrial markets,” stated Michael Frankel and Howard Schwimmer, Co-Chief Executive Officers of the Company. “In the third quarter, our team increased Core FFO by 33% and Core FFO per diluted share by 12% compared to the prior year quarter. The Company’s differentiated, high-quality portfolio delivered superior results driving 434,000 square feet of positive net absorption, equal to 100 basis points, through the execution of 1.5 million square feet of leases generating leasing spreads of 65% and 51% on a GAAP and cash basis, respectively. As we look forward, the Company remains well-positioned with an estimated 33% embedded cash NOI growth within our in-place portfolio realizable over the subsequent two years. The Company’s unique positioning includes a near-term pipeline of over 4.0 million square feet of value-add repositioning and redevelopment projects projected to deliver an aggregate 6.4% unlevered stabilized yield on total investment. We are also well-positioned as we continue to roll expiring leases to higher market rents, capitalizing upon today’s 56% net effective mark-to-market comparing our in-place lease rates to current market rental rates. In addition, we have completed approximately $1.2 billion of accretive investments year-to-date with approximately $400 million of additional investments under contract or accepted offer, which are subject to customary closing conditions. Looking forward, our investment grade, low-leverage balance sheet favorably positions the Company to capitalize upon our value creation strategies and opportunities on behalf of our stakeholders.”




Financial Results:

The Company reported net income attributable to common stockholders for the third quarter of $56.3 million, or $0.27 per diluted share, compared to $36.8 million, or $0.21 per diluted share for the prior year quarter. For the nine months ended September 30, 2023, net income attributable to common stockholders was $165.8 million, or $0.83 per diluted share, compared to $116.8 million, or $0.70 per diluted share for the prior year. Net income for the nine months ended September 30, 2023, includes $12.1 million of gains on sale of real estate, as compared to $8.5 million for the prior year.

The Company reported Core FFO for the third quarter of $115.0 million, representing a 33.5% increase compared to $86.1 million for the prior year quarter. The Company reported Core FFO of $0.56 per diluted share, representing an increase of 12.0% compared to $0.50 per diluted share for the prior year quarter. For the nine months ended September 30, 2023, Core FFO was $326.0 million, representing a 33.4% increase compared to $244.4 million for the prior year. For the nine months ended September 30, 2023, the Company reported Core FFO of $1.62 per diluted share, representing an increase of 10.2% compared to $1.47 per diluted share for the prior year.

In the third quarter, the Company’s consolidated portfolio NOI and Cash NOI increased 27.0% and 27.5%, respectively, compared to the prior year quarter. For the nine months ended September 30, 2023, the Company’s consolidated portfolio NOI and Cash NOI increased 30.4% and 32.1%, respectively, compared to the prior year.

In the third quarter, the Company’s Same Property Portfolio NOI and Cash NOI increased 8.9% and 9.5%, respectively, compared to the prior year quarter. For the nine months ended September 30, 2023, the Company’s Same Property Portfolio NOI and Cash NOI increased 8.0% and 10.0%, respectively compared to the prior year.

Operating Results:

Third quarter 2023 leasing activity demonstrates strong tenant demand fundamentals within Rexford Industrial’s target Southern California infill markets:

Q3-2023 Leasing Activity
Releasing Spreads
# of Leases Executed
SF of Leasing
GAAP
Cash
New Leases
57862,42074.0%56.0%
Renewal Leases
47667,17960.5%49.1%
Total Leases
1041,529,59964.8%51.4%

As of September 30, 2023, the Company’s Same Property Portfolio occupancy was 97.9%. Average Same Property Portfolio occupancy for the third quarter was 97.8%. The Company’s consolidated portfolio, excluding value-add repositioning assets, was 97.9% occupied and 98.0% leased, and the Company’s consolidated portfolio, including value-add repositioning assets, was 94.1% occupied and 94.4% leased. Lease expirations for the remainder of 2023 totaled 1.2 million rentable square feet, representing approximately 2.8% of portfolio rentable square feet.

Transaction Activity:

During the third quarter of 2023, the Company completed six acquisitions with 1.1 million square feet of buildings on 44 acres of land for an aggregate purchase price of $314.8 million. These investments are projected to generate a weighted average unlevered initial yield of 5.2% and stabilized yield on total investment of 6.0%

Year to date, the Company has completed $1.2 billion of acquisitions with 3.1 million square feet of buildings on 159 acres of land. In aggregate, these investments are projected to generate a weighted average unlevered initial yield of 5.1% and a projected weighted average unlevered stabilized yield on total investment of 5.9%.

Balance Sheet:
The Company ended the third quarter with $83.3 million in cash on hand and $1.0 billion available under its unsecured revolving credit facility. As of September 30, 2023, the Company had $2.2 billion of outstanding debt, with an average



interest rate of 3.6%, an average term-to-maturity of 4.8 years and no floating rate debt exposure. Including extension options available at the Company’s option, the Company has no significant debt maturities until 2026.

During the third quarter of 2023, the Company partially settled the outstanding forward equity sale agreements related to its May 2023 public offering by issuing 5,400,000 shares of common stock in exchange for net proceeds of $298.4 million. As of October 18, 2023, the Company had approximately $449.8 million of forward net proceeds remaining for settlement prior to October 11, 2024.

During the third quarter of 2023, the Company did not execute on its at-the-market equity offering program (“ATM Program”). As of September 30, 2023, the Company’s at-the-market equity offering program had approximately $1.1 billion of remaining capacity.

Dividends:

On October 16, 2023, the Company’s Board of Directors declared a dividend in the amount of $0.38 per share for the fourth quarter of 2023, payable in cash on January 16, 2024, to common stockholders and common unit holders of record as of December 29, 2023.

On October 16, 2023, 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 29, 2023, to preferred stockholders of record as of December 15, 2023.

Guidance

The Company is updating its full year 2023 guidance as indicated below. The Core FFO guidance refers to the Company’s in-place portfolio as of October 18, 2023 and the imminent closing of $245.0 million of transactions in the LA — San Gabriel Valley market, and does not include any assumptions for additional acquisitions, dispositions or related balance sheet activities that have not closed. Please refer to the Company’s supplemental information package for a complete detail of guidance and 2023 Guidance Rollforward.

2023 Outlook (1)
Q3 2023 Updated
Guidance
Q2 2023
Guidance
Net Income Attributable to Common Stockholders per diluted share$1.06 - $1.08$1.03 - $1.06
Company share of Core FFO per diluted share$2.16 - $2.18$2.13 - $2.16
Same Property Portfolio NOI Growth - GAAP8.00% - 8.25%7.75% - 8.50%
Same Property Portfolio NOI Growth - Cash9.75% - 10.00%9.50% - 10.25%
Average Same Property Portfolio Occupancy (Full Year) +/- 97.75%97.5% - 98.0%
General and Administrative Expenses (2)
$76.0M - $76.5M$75.0M - $76.0M
Net Interest Expense$62.0M - $62.5M$64.5M - $65.5M

(1)2023 Guidance represents the in-place portfolio as of October 18, 2023 and the imminent closing of $245.0 million of transactions in the LA — San Gabriel Valley market, which are subject to customary closing conditions, and does not include any assumptions for additional prospective acquisitions, dispositions or related balance sheet activities that have not closed.
(2)2023 General and Administrative expense guidance includes estimated non-cash equity compensation expense of $32.0 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 potential impacts related to 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 19, 2023, 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 19, 2023, and can be accessed using the following numbers and pass code 13734483.
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 with lowest-supply major 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 371 properties with approximately 45.0 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. In addition, projections, assumptions and estimates of our future performance and the future performance of the industry in which we operate are necessarily subject to a high degree of uncertainty and risk due to a variety of factors, including those described above. These and other factors could cause results to differ materially from those expressed in our estimates and beliefs and in the estimates prepared by independent parties. 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, 2022, 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 in the Financial Statements and Reconciliations section. “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 for non-comparable items outlined in the “Reconciliation of Net Income to Funds From Operations and Core Funds From Operations” table which is located in the Financial Statements and Reconciliations section below. We believe that Core FFO is a useful supplemental measure and that by adjusting for items that are not considered by the Company to be part of its on-going operating performance, provides a more meaningful and consistent comparison of the Company’s operating and financial performance period-over-period. Because 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. “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 2023 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.
2023 Estimate
LowHigh
Net income attributable to common stockholders$1.06 $1.08 
Company share of depreciation and amortization1.16 1.16 
Company share of gains on sale of real estate(0.06)(0.06)
Company share of FFO$2.16 $2.18 

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 in the Financial Statements and Reconciliations section.

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 in the Financial Statements and Reconciliations section.

Same Property Portfolio: Our 2023 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, 2022 through September 30, 2023, and excludes (i) properties that were acquired or sold during the period from January 1, 2022 through September 30, 2023, and (ii) properties acquired prior to January 1, 2022 that were or will be classified as repositioning/redevelopment (current and future) or lease-up during 2022 and 2023 and select buildings in “Other Repositioning,” which we believe will significantly affect the properties’ results during the comparative periods. As of September 30, 2023, our 2023 Same Property Portfolio consists of buildings aggregating 32,496,313 rentable square feet at 256 of our properties.

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, 2023, we had consolidated indebtedness of $2.2 billion, reflecting a net debt to enterprise value of approximately 16.7%. 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.

Contact:

investorrelations@rexfordindustrial.com



Financial Statements and Reconciliations:

Rexford Industrial Realty, Inc.
Consolidated Balance Sheets
(In thousands except share data)
September 30, 2023December 31, 2022
(unaudited)
ASSETS  
Land$6,606,022 $5,841,195 
Buildings and improvements3,869,303 3,370,494 
Tenant improvements160,108 147,632 
Furniture, fixtures, and equipment132 132 
Construction in progress188,079 110,934 
Total real estate held for investment10,823,644 9,470,387 
Accumulated depreciation(739,369)(614,332)
Investments in real estate, net10,084,275 8,856,055 
Cash and cash equivalents83,268 36,786 
Rents and other receivables, net18,973 15,227 
Deferred rent receivable, net114,927 88,144 
Deferred leasing costs, net56,735 45,080 
Deferred loan costs, net3,783 4,829 
Acquired lease intangible assets, net154,036 169,986 
Acquired indefinite-lived intangible5,156 5,156 
Interest rate swap asset24,494 11,422 
Other assets31,817 24,973 
Acquisition related deposits— 1,625 
Total Assets$10,577,464 $9,259,283 
LIABILITIES & EQUITY  
Liabilities  
Notes payable$2,227,637 $1,936,381 
Accounts payable, accrued expenses and other liabilities155,103 97,496 
Dividends and distributions payable81,423 62,033 
Acquired lease intangible liabilities, net155,582 147,384 
Tenant security deposits83,643 71,935 
Prepaid rents30,772 20,712 
Total Liabilities2,734,160 2,335,941 
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, 2023 and December 31, 2022 ($75,000 liquidation preference)
72,443 72,443 
5.625% series C cumulative redeemable preferred stock, 3,450,000 shares outstanding at September 30, 2023 and December 31, 2022 ($86,250 liquidation preference)
83,233 83,233 
Common Stock,$ 0.01 par value per share, 489,950,000 authorized and 206,484,287 and 189,114,129 shares outstanding at September 30, 2023 and December 31, 2022, respectively
2,065 1,891 
Additional paid in capital7,613,354 6,646,867 
Cumulative distributions in excess of earnings(320,180)(255,743)
Accumulated other comprehensive loss21,142 8,247 
Total stockholders’ equity7,472,057 6,556,938 
Noncontrolling interests371,247 366,404 
Total Equity7,843,304 6,923,342 
Total Liabilities and Equity$10,577,464 $9,259,283 



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,
 2023202220232022
REVENUES  
Rental income$204,212 $162,581 $583,474 $452,156 
Management and leasing services158 163 519 456 
Interest income1,029 3,408 
TOTAL REVENUES205,399 162,747 587,401 452,617 
OPERATING EXPENSES
Property expenses48,085 39,614 135,220 108,448 
General and administrative18,575 14,951 55,039 44,531 
Depreciation and amortization60,449 51,146 178,671 140,226 
TOTAL OPERATING EXPENSES127,109 105,711 368,930 293,205 
OTHER EXPENSES
Other expenses551 413 1,504 746 
Interest expense15,949 14,975 46,830 34,826 
TOTAL EXPENSES143,609 121,099 417,264 328,777 
Loss on extinguishment of debt— — — (877)
Gains on sale of real estate— — 12,133 8,486 
NET INCOME61,790 41,648 182,270 131,449 
Less: net income attributable to noncontrolling interests(2,824)(2,368)(8,605)(7,142)
NET INCOME ATTRIBUTABLE TO REXFORD INDUSTRIAL REALTY, INC.58,966 39,280 173,665 124,307 
Less: preferred stock dividends(2,314)(2,314)(6,943)(6,943)
Less: earnings attributable to participating securities (314)(201)(952)(605)
NET INCOME ATTRIBUTABLE TO COMMON STOCKHOLDERS$56,338 $36,765 $165,770 $116,759 
Net income attributable to common stockholders per share basic
$0.27 $0.21 $0.83 $0.70 
Net income attributable to common stockholders per share diluted
$0.27 $0.21 $0.83 $0.70 
Weighted-average shares of common stock outstanding – basic205,280 171,909 200,455 165,852 
Weighted-average shares of common stock outstanding – diluted205,448 172,831 200,668 166,401 





Rexford Industrial Realty, Inc.
Same Property Portfolio Occupancy and NOI and Cash NOI
(Unaudited, dollars in thousands)
 
 
Same Property Portfolio Occupancy:
September 30,
20232022Change (basis points)
Quarterly Weighted Average Occupancy:(1)
Los Angeles County97.8%98.4%(60) bps
Orange County98.7%99.4%(70) bps
Riverside / San Bernardino County97.5%97.3%20 bps
San Diego County97.1%98.7%(160) bps
Ventura County98.4%99.3%(90) bps
Same Property Portfolio Weighted Average Occupancy97.8%98.4%(60) bps
Ending Occupancy:97.9%98.1%(20) bps
(1)Calculated by averaging the occupancy rate at the end of each month in 3Q-2023 and June 2023 (for 3Q-2023) and the end of each month in 3Q-2022 and June 2022 (for 3Q-2022).


Same Property Portfolio NOI and Cash NOI:    
Three Months Ended September 30,Nine Months Ended September 30,
20232022$ Change% Change20232022$ Change% Change
Rental income$140,077 $128,954 $11,123 8.6 %$410,318 $383,024 $27,294 7.1 %
Property expenses32,353 29,999 2,354 7.8 %92,207 88,474 3,733 4.2 %
Same Property Portfolio NOI$107,724 $98,955 $8,769 8.9 %$318,111 $294,550 $23,561 8.0 %
Straight line rental revenue adjustment(4,928)(4,356)(572)13.1 %(14,166)(15,509)1,343 (8.7)%
Amortization of above/below market lease intangibles(3,625)(4,054)429 (10.6)%(11,024)(12,825)1,801 (14.0)%
Same Property Portfolio Cash NOI$99,171 $90,545 $8,626 9.5 %$292,921 $266,216 $26,705 10.0 %




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,
2023202220232022
Net income$61,790 $41,648 $182,270 $131,449 
General and administrative18,575 14,951 55,039 44,531 
Depreciation and amortization60,449 51,146 178,671 140,226 
Other expenses551 413 1,504 746 
Interest expense15,949 14,975 46,830 34,826 
Loss on extinguishment of debt— — — 877 
Management and leasing services(158)(163)(519)(456)
Interest income(1,029)(3)(3,408)(5)
Gains on sale of real estate— — (12,133)(8,486)
Net operating income (NOI)$156,127 $122,967 $448,254 $343,708 
Straight line rental revenue adjustment(11,792)(8,411)(28,073)(23,753)
Amortization of above/below market lease intangibles(1)
(7,241)(7,033)(21,763)(18,250)
Cash NOI$137,094 $107,523 $398,418 $301,705 
NOI$156,127 $122,967 $448,254 $343,708 
Non-Same Property Portfolio rental income(64,135)(33,627)(173,156)(69,132)
Non-Same Property Portfolio property expenses15,732 9,615 43,013 19,974 
Same Property Portfolio NOI$107,724 $98,955 $318,111 $294,550 
Straight line rental revenue adjustment(4,928)(4,356)(14,166)(15,509)
Amortization of above/below market lease intangibles(3,625)(4,054)(11,024)(12,825)
Same Property Portfolio Cash NOI$99,171 $90,545 $292,921 $266,216 

(1)The amortization of net below-market lease intangibles for the nine months ended September 30, 2023 includes the write-off of $1,318 that is attributable to a below-market fixed rate renewal option that was not exercised due to the termination of the lease at the end of the initial lease term.



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,
 2023202220232022
Net income$61,790 $41,648 $182,270 $131,449 
Adjustments:  
Depreciation and amortization60,449 51,146 178,671 140,226 
Gains on sale of real estate— — (12,133)(8,486)
Funds From Operations (FFO)$122,239 $92,794 $348,808 $263,189 
Less: preferred stock dividends(2,314)(2,314)(6,943)(6,943)
Less: FFO attributable to noncontrolling interests(1)
(4,909)(4,454)(14,554)(12,372)
Less: FFO attributable to participating securities(2)
(461)(306)(1,339)(909)
Company share of FFO$114,555 $85,720 $325,972 $242,965 
Company Share of FFO per common share – basic$0.56 $0.50 $1.63 $1.46 
Company Share of FFO per common share – diluted$0.56 $0.50 $1.62 $1.46 
FFO$122,239 $92,794 $348,808 $263,189 
Adjustments:  
Acquisition expenses10 359 330 451 
Impairment of right-of-use asset— — 188 — 
Loss on extinguishment of debt— — — 877 
Amortization of loss on termination of interest rate swaps59 59 177 194 
Non-capitalizable demolition costs361 — 701 — 
Write-offs of below-market lease intangibles related to unexercised renewal options(3)
— — (1,318)— 
Core FFO$122,669 $93,212 $348,886 $264,711 
Less: preferred stock dividends(2,314)(2,314)(6,943)(6,943)
Less: Core FFO attributable to noncontrolling interest(1)
(4,924)(4,471)(14,556)(12,433)
Less: Core FFO attributable to participating securities(2)
(462)(307)(1,339)(914)
Company share of Core FFO$114,969 $86,120 $326,048 $244,421 
Company share of Core FFO per common share – basic$0.56 $0.50 $1.63 $1.47 
Company share of Core FFO per common share – diluted$0.56 $0.50 $1.62 $1.47 
Weighted-average shares of common stock outstanding – basic205,280 171,909 200,455 165,852 
Weighted-average shares of common stock outstanding – diluted205,448 172,831 200,668 166,401 
(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.
(3)Reflects the write-off of the portion of a below-market lease intangible attributable to a below-market fixed rate renewal option that was not exercised due to the termination of the lease at the end of the initial lease term.

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, portfolio occupancy varying from our expectations, 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 2022 Annual Report on Form 10-K, which was filed with the Securities and Exchange Commission (“SEC”) on February 13, 2023, and other risks described in documents we subsequently file from time to time with the SEC. 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.
Our credit ratings, which are disclosed on page 4, may not reflect the potential impact of risks relating to the structure or trading of the Company's securities and are provided solely for informational purposes. Credit ratings are not recommendations to buy, sell or hold any security, and may be revised or withdrawn at any time by the issuing organization in its sole discretion. The Company does not undertake any obligation to maintain the ratings or to advise of any change in ratings. Each agency's rating should be evaluated independently of any other agency's rating. An explanation of the significance of the ratings may be obtained from each of the rating agencies.

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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
Tyler H. RoseLead Independent Director
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
Investor Relations Information
investorrelations@rexfordindustrial.com
Equity Research Coverage
BofA SecuritiesCamille Bonnel(646) 855-5042
BMO Capital MarketsJohn Kim(212) 885-4115
BNP Paribas ExaneNate Crossett(646) 725-3716
Citigroup Investment ResearchCraig Mailman(212) 816-4471
Colliers Securities
Barry Oxford
(203) 961-6573
Green Street AdvisorsVince Tibone(949) 640-8780
J.P. Morgan SecuritiesMichael Mueller(212) 622-6689
Jefferies LLCJonathan Petersen(212) 284-1705
Mizuho Securities USAVikram Malhotra(212) 282-3827
Robert W. Baird & Co.Nicholas Thillman(414) 298-5053
ScotiabankGreg McGinniss(212) 225-6906
StifelStephen Manaker(212) 271-3716
Truist Securities
Anthony Hau
(212) 303-4176
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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Company Overview.
For the Quarter Ended September 30, 2023
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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, 2023June 30, 2023March 31, 2023December 31, 2022September 30, 2022
Financial Results:
Total rental income$204,212$194,098$185,164$178,422$162,581
Net income$61,790$56,910$63,570$45,708$41,648
Net Operating Income (NOI)$156,127$149,788$142,339$136,367$122,967
Company share of Core FFO$114,969$108,419$102,660$90,318$86,120
Company share of Core FFO per common share - diluted$0.56$0.54$0.52$0.49$0.50
Adjusted EBITDA$147,925$141,258$139,755$129,451$117,532
Dividend declared per common share$0.380$0.380$0.380$0.315$0.315
Portfolio Statistics:
Portfolio rentable square feet (“RSF”)44,998,61344,167,77443,954,27242,403,73541,716,182
Ending occupancy94.1%94.0%93.8%94.6%94.5%
Ending occupancy excluding repositioning/redevelopment(2)
97.9%97.3%97.4%97.9%97.8%
Rent Change - GAAP64.8%96.8%80.2%77.0%88.6%
Rent Change - Cash51.4%74.8%59.7%52.4%62.9%
Same Property Portfolio Performance:
Same Property Portfolio ending occupancy(3)
97.9%98.1%98.0%98.1%98.1%
Same Property Portfolio NOI growth(4)
8.9%8.0%7.1%
Same Property Portfolio Cash NOI growth(4)
9.5%10.0%10.6%
Capitalization:
Total shares and units issued and outstanding at period end(5)
213,435,271208,031,757208,016,268196,400,973189,606,738
Series B and C Preferred Stock and Series 1, 2 and 3 CPOP Units$241,068$241,068$241,068$241,068$241,068
Total equity market capitalization$10,774,099$11,104,486$12,649,238$10,972,417$10,100,618
Total consolidated debt$2,245,605$2,245,972$2,250,136$1,950,515$1,948,390
Total combined market capitalization (net debt plus equity)$12,936,436$13,214,176$14,645,756$12,886,146$12,011,867
Ratios:
Net debt to total combined market capitalization16.7%16.0%13.6%14.9%15.9%
Net debt to Adjusted EBITDA (quarterly results annualized)3.7x3.7x3.6x3.7x4.1x
(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 31 and page 12 of this report, respectively.
(2)Ending occupancy excluding repositioning/redevelopment excludes “Other Repositioning” projects as well as those listed individually on pages 26-27.
(3)Reflects the ending occupancy for the current 2023 Same Property Portfolio for each period presented. For historical ending occupancy as reported in prior Supplemental packages, see “SPP Historical Information” on page 34.
(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: 7,300,541 (Sep 30, 2023), 7,351,049 (Jun 30, 2023), 7,597,554 (Mar 31, 2023), 7,561,260 (Dec 31, 2022) and 7,305,749 (Sep 30, 2022). Excludes the following # of shares of unvested restricted stock: 349,557 (Sep 30, 2023), 361,033 (Jun 30, 2023), 365,416 (Mar 31, 2023), 274,416 (Dec 31, 2022) and 275,717 (Sep 30, 2022). Excludes unvested LTIP units and unvested performance units.

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Guidance.
As of September 30, 2023
2023 OUTLOOK*
METRICYTD RESULTS AS OF SEPTEMBER 30, 2023
Q3-2023
 UPDATED GUIDANCE
Q2-2023
GUIDANCE
Net Income Attributable to Common Stockholders per diluted share (1)(2)
$0.83$1.06 - $1.08$1.03 - $1.06
Company share of Core FFO per diluted share (1)(2)
$1.62$2.16 - $2.18$2.13 - $2.16
Same Property Portfolio NOI Growth - GAAP (3)
8.0%8.00% - 8.25%7.75% - 8.50%
Same Property Portfolio NOI Growth - Cash (3)
10.0%9.75% - 10.00%9.50% - 10.25%
Average Same Property Portfolio Occupancy (Full Year) (3)
97.9%+/- 97.75%97.5% - 98.0%
General and Administrative Expenses (4)
$55.0M$76.0M - $76.5M$75.0M - $76.0M
Net Interest Expense$46.8M$62.0M - $62.5M$64.5M - $65.5M
(1)Our 2023 Net Income and Core FFO guidance refers to the Company's in-place portfolio as of October 18, 2023, and the imminent closing of $245.0 million of transactions in the LA-San Gabriel Valley market, which is subject to customary closing conditions, and does not include any assumptions for additional prospective acquisitions, dispositions or related balance sheet activities that have not closed.
(2)See page 35 for a reconciliation of the Company’s 2023 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 2023 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, 2022 through October 18, 2023, and excludes properties that were or will be classified as repositioning/redevelopment (current and future) or lease-up during 2022 and 2023 (as separately listed on pages 26-27) and select buildings in “Other Repositioning.” As of September 30, 2023, our 2023 Same Property Portfolio consists of buildings aggregating 32.5 million rentable square feet at 256 of our properties.
(4)Our 2023 General and Administrative expense guidance includes estimated non-cash equity compensation expense of $32.0 million.
* A number of factors could impact the Company’s ability to deliver results in line with its guidance, including, but not limited to, 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, 2023

2023 Guidance Rollforward (1)

Earnings ComponentsRange
($ per share)
Notes
2023 Core FFO Per Diluted Share Guidance (Previous)
$2.13$2.16Q2 2023 Guidance
Same Property Portfolio NOI Growth
FY 2023 SP NOI (GAAP) Guidance range of 8.00% - 8.25%
3Q-4Q Acquisitions
0.020.02
Incremental NOI related to $45M of acquisitions closed since prior
guidance and the imminent closing of two transactions totaling $245M; no
additional prospective activity included for guidance purposes
Repositioning/Redevelopment NOI(0.01)(0.01)Incremental NOI from repositionings/redevelopments
Net G&A Expense
FY 2023 Guidance range of $76.0M - $76.5M
Net Interest Expense0.020.01
FY 2023 Guidance range of $62.0M - $62.5M
Other
2023 Core FFO Per Diluted Share Guidance (Current)
$2.16$2.18
Core FFO Per Diluted Share Annual Growth10%11%
(1)2023 Guidance and Guidance Rollforward represent the in-place portfolio as of October 18, 2023, and the imminent closing of $245.0 million of transactions in the LA-San Gabriel Valley market, which is subject to customary closing conditions, and does not include any assumptions for additional 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, 2023June 30, 2023March 31, 2023December 31, 2022September 30, 2022
ASSETS
Land$6,606,022 $6,400,698 $6,334,926 $5,841,195 $5,559,795 
Buildings and improvements3,869,303 3,723,837 3,671,384 3,370,494 3,275,572 
Tenant improvements160,108 155,182 153,019 147,632 141,413 
Furniture, fixtures, and equipment132 132 132 132 132 
Construction in progress188,079 127,416 102,633 110,934 88,545 
  Total real estate held for investment10,823,644 10,407,265 10,262,094 9,470,387 9,065,457 
Accumulated depreciation(739,369)(695,129)(652,722)(614,332)(576,004)
Investments in real estate, net10,084,275 9,712,136 9,609,372 8,856,055 8,489,453 
Cash and cash equivalents83,268 136,282 253,618 36,786 37,141 
Restricted cash— — 16,239 — — 
Rents and other receivables, net18,973 14,126 13,845 15,227 12,592 
Deferred rent receivable, net114,927 103,192 94,980 88,144 81,867 
Deferred leasing costs, net56,735 54,848 47,739 45,080 42,758 
Deferred loan costs, net3,783 4,139 4,474 4,829 5,184 
Acquired lease intangible assets, net(1)
154,036 147,990 161,339 169,986 175,913 
Acquired indefinite-lived intangible5,156 5,156 5,156 5,156 5,156 
Interest rate swap asset24,494 19,869 6,947 11,422 12,565 
Other assets31,817 19,055 21,811 24,973 27,868 
Acquisition related deposits— 8,700 3,625 1,625 8,200 
Total Assets$10,577,464 $10,225,493 $10,239,145 $9,259,283 $8,898,697 
LIABILITIES & EQUITY
Liabilities
Notes payable$2,227,637 $2,227,154 $2,230,687 $1,936,381 $1,934,082 
Interest rate swap liability— — 835 — — 
Accounts payable, accrued expenses and other liabilities155,103 109,881 110,272 97,496 113,770 
Dividends and distributions payable81,423 79,370 79,370 62,033 59,926 
Acquired lease intangible liabilities, net(2)
155,582 130,511 138,339 147,384 154,851 
Tenant security deposits83,643 81,163 77,029 71,935 69,756 
Prepaid rents30,772 42,600 44,303 20,712 19,992 
Total Liabilities2,734,160 2,670,679 2,680,835 2,335,941 2,352,377 
Equity
Series B preferred stock, net ($75,000 liquidation preference)72,443 72,443 72,443 72,443 72,443 
Series C preferred stock, net ($86,250 liquidation preference)83,233 83,233 83,233 83,233 83,233 
Preferred stock155,676 155,676 155,676 155,676 155,676 
Common stock2,065 2,010 2,008 1,891 1,826 
Additional paid in capital7,613,354 7,311,458 7,299,837 6,646,867 6,254,853 
Cumulative distributions in excess of earnings(320,180)(298,367)(273,849)(255,743)(237,135)
Accumulated other comprehensive income (loss)21,142 16,525 3,117 8,247 9,223 
Total stockholders’ equity7,472,057 7,187,302 7,186,789 6,556,938 6,184,443 
Noncontrolling interests371,247 367,512 371,521 366,404 361,877 
Total Equity7,843,304 7,554,814 7,558,310 6,923,342 6,546,320 
Total Liabilities and Equity$10,577,464 $10,225,493 $10,239,145 $9,259,283 $8,898,697 
(1)Includes net above-market tenant lease intangibles of $11,402 (September 30, 2023), $12,034 (June 30, 2023), $13,587 (March 31, 2023), $14,181 (December 31, 2022) and $14,434 (September 30, 2022). Balance also includes net below-market ground lease intangible of $12,724 (September 30, 2023), $12,765 (June 30, 2023), $12,806 (March 31, 2023), $12,847 (December 31, 2022) and $12,888 (September 30, 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)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, 2023Jun 30, 2023Mar 31, 2023Dec 31, 2022Sep 30, 2022
Revenues
Rental income(1)
$204,212 $194,098 $185,164 $178,422 $162,581 
Management and leasing services158 171 190 160 163 
Interest income1,029 1,497 882 
Total Revenues205,399 195,766 186,236 178,587 162,747 
Operating Expenses
Property expenses48,085 44,310 42,825 42,055 39,614 
General and administrative18,575 18,267 18,197 19,733 14,951 
Depreciation and amortization60,449 58,793 59,429 56,568 51,146 
Total Operating Expenses127,109 121,370 120,451 118,356 105,711 
Other Expenses
Other expenses551 306 647 815 413 
Interest expense15,949 17,180 13,701 13,670 14,975 
Total Expenses143,609 138,856 134,799 132,841 121,099 
Loss on extinguishment of debt— — — (38)— 
Gains on sale of real estate— — 12,133 — — 
Net Income61,790 56,910 63,570 45,708 41,648 
Less: net income attributable to noncontrolling interests(2,824)(2,717)(3,064)(2,431)(2,368)
Net income attributable to Rexford Industrial Realty, Inc. 58,966 54,193 60,506 43,277 39,280 
Less: preferred stock dividends(2,314)(2,315)(2,314)(2,315)(2,314)
Less: earnings allocated to participating securities (314)(318)(320)(240)(201)
Net income attributable to common stockholders$56,338 $51,560 $57,872 $40,722 $36,765 
Earnings per Common Share
Net income attributable to common stockholders per share - basic$0.27 $0.26 $0.30 $0.22 $0.21 
Net income attributable to common stockholders per share - diluted$0.27 $0.26 $0.30 $0.22 $0.21 
Weighted average shares outstanding - basic205,279,681200,610,890195,366,969184,161,577171,908,895
Weighted average shares outstanding - diluted205,447,532200,667,250195,779,007184,558,301172,831,173
(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 34 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.

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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,
2023202220232022
Revenues
Rental income$204,212 $162,581 $583,474 $452,156 
Management and leasing services158 163 519 456 
Interest income1,029 3,408 
Total Revenues205,399 162,747 587,401 452,617 
Operating Expenses
Property expenses48,085 39,614 135,220 108,448 
General and administrative18,575 14,951 55,039 44,531 
Depreciation and amortization60,449 51,146 178,671 140,226 
Total Operating Expenses127,109 105,711 368,930 293,205 
Other Expenses
Other expenses551 413 1,504 746 
Interest expense15,949 14,975 46,830 34,826 
Total Expenses143,609 121,099 417,264 328,777 
Loss on extinguishment of debt— — — (877)
Gains on sale of real estate— — 12,133 8,486 
Net Income61,790 41,648 182,270 131,449 
 Less: net income attributable to noncontrolling interests(2,824)(2,368)(8,605)(7,142)
Net income attributable to Rexford Industrial Realty, Inc. 58,966 39,280 173,665 124,307 
 Less: preferred stock dividends(2,314)(2,314)(6,943)(6,943)
 Less: earnings allocated to participating securities (314)(201)(952)(605)
Net income attributable to common stockholders$56,338 $36,765 $165,770 $116,759 
Net income attributable to common stockholders per share – basic$0.27 $0.21 $0.83 $0.70 
Net income attributable to common stockholders per share – diluted$0.27 $0.21 $0.83 $0.70 
Weighted-average shares of common stock outstanding – basic205,279,681 171,908,895 200,455,490 165,852,466 
Weighted-average shares of common stock outstanding – diluted205,447,532 172,831,173 200,667,573 166,401,434 


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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, 2023June 30, 2023March 31, 2023December 31, 2022September 30, 2022
Net Income$61,790 $56,910 $63,570 $45,708 $41,648 
Adjustments:
Depreciation and amortization60,449 58,793 59,429 56,568 51,146 
Gains on sale of real estate— — (12,133)— — 
NAREIT Defined Funds From Operations (FFO)
122,239 115,703 110,866 102,276 92,794 
Less: preferred stock dividends(2,314)(2,315)(2,314)(2,315)(2,314)
Less: FFO attributable to noncontrolling interests(2)
(4,909)(4,812)(4,833)(4,591)(4,454)
Less: FFO attributable to participating securities(3)
(461)(451)(427)(387)(306)
Company share of FFO114,555 108,125 103,292 94,983 85,720 
Company share of FFO per common share‐basic$0.56 $0.54 $0.53 $0.52 $0.50 
Company share of FFO per common share‐diluted$0.56 $0.54 $0.53 $0.51 $0.50 
FFO$122,239 $115,703 $110,866 $102,276 $92,794 
Adjustments:
Acquisition expenses10 247 73 162 359 
Impairment of right-of-use asset(4)
— — 188 — — 
Loss on extinguishment of debt— — — 38 — 
Amortization of loss on termination of interest rate swaps59 59 59 59 59 
Non-capitalizable demolition costs361 — 340 663 — 
Write-offs of below-market lease intangibles related to unexercised renewal options(5)
— — (1,318)(5,792)— 
Core FFO 122,669 116,009 110,208 97,406 93,212 
Less: preferred stock dividends(2,314)(2,315)(2,314)(2,315)(2,314)
Less: Core FFO attributable to noncontrolling interests(2)
(4,924)(4,823)(4,809)(4,405)(4,471)
Less: Core FFO attributable to participating securities(3)
(462)(452)(425)(368)(307)
Company share of Core FFO114,969 108,419 102,660 90,318 86,120 
Company share of Core FFO per common share‐basic$0.56 $0.54 $0.53 $0.49 $0.50 
Company share of Core FFO per common share‐diluted$0.56 $0.54 $0.52 $0.49 $0.50 
Weighted-average shares outstanding-basic205,279,681 200,610,890 195,366,969 184,161,577 171,908,895 
Weighted-average shares outstanding-diluted(6)
205,447,532 200,667,250 195,779,007 184,558,301 172,831,173 
(1)For a definition and discussion of non-GAAP financial measures, see the definitions section beginning on page 31 of this report.
(2)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.
(3)Participating securities include unvested shares of restricted stock, unvested LTIP units and unvested performance units.
(4)Represents an impairment charge related to the right-of-use asset for one of our leased office spaces.
(5)Reflects the write-off of the portion of a below-market lease intangible attributable to below-market fixed rate renewal options that were not exercised due to the termination of the lease at the end of the initial lease term.
(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,
2023202220232022
Net Income$61,790 $41,648 $182,270 $131,449 
Adjustments:
Depreciation and amortization60,449 51,146 178,671 140,226 
Gains on sale of real estate— — (12,133)(8,486)
Funds From Operations (FFO)122,239 92,794 348,808 263,189 
Less: preferred stock dividends(2,314)(2,314)(6,943)(6,943)
Less: FFO attributable to noncontrolling interests(4,909)(4,454)(14,554)(12,372)
Less: FFO attributable to participating securities(461)(306)(1,339)(909)
Company share of FFO$114,555 $85,720 $325,972 $242,965 
Company share of FFO per common share‐basic$0.56 $0.50 $1.63 $1.46 
Company share of FFO per common share‐diluted$0.56 $0.50 $1.62 $1.46 
FFO$122,239 $92,794 $348,808 $263,189 
Adjustments:
Acquisition expenses10 359 330 451 
Impairment of right-of-use asset— — 188 — 
Loss on extinguishment of debt— — — 877 
Amortization of loss on termination of interest rate swaps59 59 177 194 
Non-capitalizable demolition costs361 — 701 — 
Write-offs of below-market lease intangibles related to unexercised renewal options(2)
— — (1,318)— 
Core FFO122,669 93,212 348,886 264,711 
Less: preferred stock dividends(2,314)(2,314)(6,943)(6,943)
Less: Core FFO attributable to noncontrolling interests(4,924)(4,471)(14,556)(12,433)
Less: Core FFO attributable to participating securities(462)(307)(1,339)(914)
Company share of Core FFO$114,969 $86,120 $326,048 $244,421 
Company share of Core FFO per common share‐basic$0.56 $0.50 $1.63 $1.47 
Company share of Core FFO per common share‐diluted$0.56 $0.50 $1.62 $1.47 
Weighted-average shares outstanding-basic205,279,681 171,908,895 200,455,490 165,852,466 
Weighted-average shares outstanding-diluted205,447,532 172,831,173 200,667,573 166,401,434 
(1)For a definition and discussion of non-GAAP financial measures, see the definitions section beginning on page 31 of this report.
(2)Reflects the write-off of the portion of a below-market lease intangible attributable to below-market fixed rate renewal options that were not exercised due to the termination of the lease at the end of the initial lease term.

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Non-GAAP AFFO Reconciliation. (1)
(unaudited and in thousands, except share and per share data)
Three Months Ended
September 30,
2023
June 30,
2023
March 31,
2023
December 31,
2022
September 30,
2022
Funds From Operations(2)
$122,239 $115,703 $110,866 $102,276 $92,794 
Adjustments:
Amortization of deferred financing costs1,001 999 856 840 766 
Non-cash stock compensation8,166 7,956 8,178 9,716 6,316 
Loss on extinguishment of debt— — — 38 — 
Impairment of right-of-use asset— — 188 — — 
Amortization related to termination/settlement of interest rate derivatives137 136 129 129 128 
Note payable (discount) premium amortization, net205 203 66 64 63 
Non-capitalizable demolition costs361 — 340 663 — 
Deduct:
Preferred stock dividends(2,314)(2,315)(2,314)(2,315)(2,314)
Straight line rental revenue adjustment(3)
(11,792)(8,653)(7,628)(7,467)(8,411)
Amortization of net below-market lease intangibles(4)
(7,241)(6,232)(8,290)(12,959)(7,033)
Capitalized payments(5)
(10,581)(8,885)(8,924)(7,757)(7,272)
Recurring capital expenditures(6)
(10,874)(6,683)(2,194)(2,593)(2,658)
2nd generation tenant improvements and leasing commissions(7)
(4,406)(5,623)(5,259)(5,437)(3,940)
Adjusted Funds From Operations (AFFO)$84,901 $86,606 $86,014 $75,198 $68,439 

(1)For a definition and discussion of non-G