8-K

 

 

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):

March 13, 2014

 

 

REXFORD INDUSTRIAL REALTY, INC.

(Exact name of registrant as specified in its charter)

 

 

 

Maryland   001-36008   46-2024407

(State or other jurisdiction of

incorporation)

 

(Commission

File Number)

 

(IRS Employer

Identification No.)

11620 Wilshire Boulevard, Suite 1000, Los Angeles, California   90025
(Address of principal executive offices)   (Zip Code)

Registrant’s telephone number, including area code: (310) 966-1680

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 (see General Instructions A.2.):

 

¨ 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))

 

 

 


ITEM 2.02 RESULTS OF OPERATIONS AND FINANCIAL CONDITION

On March 13, 2014, Rexford Industrial Realty, Inc. (“Rexford Industrial”) issued a press release announcing its earnings for the quarter ended December 31, 2013 and distributed certain supplemental financial information. On March 13, 2014, Rexford Industrial also posted the supplemental information on its website located at www.rexfordindustrial.com. Copies of the press release and supplemental 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 December 31, 2013 and distributed certain supplemental information. The press release also announced the declaration of the Dividend (as defined below). On March 13, 2014, Rexford Industrial also posted the supplemental 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 8.01 OTHER EVENTS

On March 13, 2014, Rexford Industrial announced that its Board of Directors (the “Board”) has declared a dividend of $0.12 per share of common stock for the full first quarter 2014 (the “Dividend”). Rexford Industrial expects to pay the Dividend in cash on or about April 15, 2014 to stockholders of record on March 31, 2014.

ITEM 9.01 FINANCIAL STATEMENTS AND EXHIBITS

 

(d) Exhibits.

 

99.1    Fourth Quarter 2013 Supplemental Financial Report
99.2    Press Release dated March 13, 2014


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.
March 13, 2014  

/s/ JONATHAN L. ABRAMS

  Jonathan L. Abrams
  General Counsel


EXHIBIT INDEX

 

Exhibit

Number

  

Description

99.1    Fourth Quarter 2013 Supplemental Financial Report
99.2    Press Release dated March 13, 2014
EX-99.1

Exhibit 99.1

 

 

LOGO

Rexford Industrial Realty, Inc.

NYSE: REXR

11620 Wilshire Blvd

Suite 1000

Los Angeles, CA 90025

310-966-1680

www.RexfordIndustrial.com

 

 

LOGO


Table of Contents

 

 

 

Section

   Page  

Corporate Data:

  

Investor Company Summary

     3   

Financial and Portfolio Highlights and Common Stock Data

     4   

Consolidated and Combined Financial Results:

  

Consolidated and Combined Balance Sheet

     5   

Consolidated and Combined Statement of Operations

     6 - 7   

Non-GAAP FFO and AFFO Reconciliations

     8 - 9   

Statement of Operations Reconciliations

     10 - 11   

Same Property Portfolio Performance

     12 - 13   

Joint Venture Financial Summary

     14 - 15   

Capitalization Summary

     16   

Debt Summary

     17   

Portfolio Data:

  

Portfolio Overview

     18   

Occupancy and Leasing Trends

     19   

Leasing Statistics

     20   

Top Tenants and Lease Segmentation

     21   

Capital Expenditure Summary

     22   

Properties Under Repositioning

     23   

Acquisitions and Dispositions Summary

     24   

Definitions / Discussion of Non-GAAP Financial Measures

     25   

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 REIT under the Internal Revenue Code of 1986, as amended; possible adverse changes in tax and environmental laws; 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 the section entitled “Cautionary Note Regarding Forward-Looking Statements” in our prospectus dated July 18, 2013, which was filed with the Securities and Exchange Commission (“SEC”) and other risks described in documents subsequently filed by us 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.

 

 

Fourth Quarter 2013

Supplemental Financial Reporting Package

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Investor Company Summary

 

 

 

Senior Management Team

Howard Schwimmer

   Co-Chief Executive Officer, Director

Michael S. Frankel

   Co-Chief Executive Officer, Director

Adeel Khan

   Chief Financial Officer

Patrick Schlehuber

   Director of Acquisitions

Bruce Herbkersman

   Director of Construction & Development

Shannon Lewis

   Director of Leasing & Asset Management

 

Board of Directors

Richard Ziman

   Chairman

Howard Schwimmer

   Co-Chief Executive Officer, Director

Michael S. Frankel

   Co-Chief Executive Officer, Director

Robert L. Antin

   Director

Steven C. Good

   Director

Joel S. Marcus

   Director

Peter Schwab

   Director

 

Company Contact Information

11620 Wilshire Blvd

Suite 1000

Los Angeles, CA 90025

310-966-1680

www.RexfordIndustrial.com

 

Investor Relations Information

ICR

Brad Cohen and Stephen Swett

www.icrinc.com

212-849-3882

 

Equity Research Coverage

Bank of America Merrill Lynch

   James Feldman

J.P. Morgan

   Michael W. Mueller, CFA

FBR Capital Markets & Co.

   Nikhil Bhalla

Wells Fargo Securities

   Brendan Maiorana, CFA

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.

 

 

Fourth Quarter 2013

Supplemental Financial Reporting Package

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Financial and Portfolio Highlights and Common Stock Data (1)

(in thousands except per share figures and portfolio statistics)

 

 

     Three Months Ended
December 31, 2013
    Period From
July 24, 2013 to
Sep. 30, 2013 (2)
 

Financial Results:

    

Total rental revenues

   $ 12,448      $ 8,789   

Straight line rent

     515        290   

Fair value lease expense

     76        122   

Net (loss) income attributable to common stockholders

     (881     256   

Net (loss) income per common share - basic and diluted

   $ (0.04   $ 0.01   

Company share of FFO

     4,308        3,001   

FFO per common share - basic and diluted

     0.17        0.12   

EBITDA

     5,951        4,178   

Adjusted EBITDA

     6,489        4,605   

Dividend declared per common share

   $ 0.12      $ 0.09   

Portfolio Statistics:

    

Portfolio SF - consolidated

     6,321,894        5,489,496   

Ending occupancy - consolidated portfolio

     89.7     88.0

Pro-forma occupancy including uncommenced leases

     91.7     89.8

Leasing spreads - cash

     3.5     -1.1

Leasing spreads - GAAP

     12.9     6.7

Same Property Performance: (3)

    

Total rental revenue growth

     9.7     17.0

Total property expense growth

     16.7     12.0

NOI growth

     7.1     19.0

Cash NOI growth

     14.5     15.0

Ending occupancy

     89.3     87.3

Occupancy growth (ppt)

     3.0     5.6

Capitalization:

    

Common stock price at quarter end

   $ 13.20      $ 13.51   

Common shares issued and outstanding

     25,419,418        24,757,841   

Total shares and units issued and outstanding at period end (4)

     28,428,677        28,454,927   

Weighted average shares outstanding - basic and diluted

     25,191,570        24,574,432   

Total equity market capitalization

   $ 375,259      $ 384,426   

Total Consolidated Debt

     192,559        122,795   

Total debt (pro-rata) (5)

     198,784        129,020   

Total combined market capitalization

     574,043        513,446   

Ratios:

    

Total debt (pro-rata) to total combined market capitalization

     34.6     25.1

Total consolidated debt to adjusted EBITDA (quarterly results annualized)

     7.7x        5.3x   

 

(1)  For a definition and discussion of non-GAAP financial measures, see the definitions section beginning on page 25 of this report.
(2)  The financials reflect operations since the completion of our initial public offering on July 24, 2013.
(3)  Comparison of the three months ended December 31, 2013 to the three months ended December 31, 2012.
(4)  Includes 3,009,259 OP units and excludes 140,468 unvested shares of restricted stock as of December 31, 2013. Includes 3,697,086 OP units and excludes 920,734 unvested shares of restricted stock as of September 30, 2013.
(5)  Includes our 15% share of debt in our Mission Oaks joint venture.

 

 

Fourth Quarter 2013

Supplemental Financial Reporting Package

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Consolidated and Combined Balance Sheet

(in thousands)

 

 

     Rexford
Industrial
Realty, Inc.
     Rexford Industrial Realty, Inc. Predecessor  
     12/31/13     9/30/13 (1)      6/30/13 (1)     3/31/13 (1)     12/31/12 (1)  
     (unaudited)     (unaudited)      (unaudited)     (unaudited)        

Assets

           

Investments in real estate, net

   $ 487,842      $ 432,024       $ 378,911      $ 312,066      $ 313,608   

Cash and cash equivalents

     8,997        4,399         24,951        47,446        43,499   

Restricted cash

     325        298         2,026        2,086        1,882   

Notes receivable

     13,139        13,153         7,876        7,903        11,911   

Rents and other receivables, net

     929        869         685        446        559   

Deferred rent receivable

     3,642        3,428         3,862        3,910        3,727   

Deferred leasing costs and in-place lease intangibles, net

     14,189        11,199         7,394        4,510        5,003   

Deferred loan costs, net

     1,597        1,609         1,483        1,147        1,382   

Acquired above-market leases, net

     1,597        1,888         1,614        127        179   

Indefinite-lived intangible

     5,271        —           —          —          —     

Other assets

     2,334        2,317         4,550        3,840        1,868   

Acquisition related deposits

     1,510        1,435         210        2,483        260   

Investment in unconsolidated real estate entities

     5,687        8,982         11,486        12,362        12,697   

Assets associated with real estate held for sale

     7,616        7,461         7,343        22,065        23,921   
  

 

 

   

 

 

    

 

 

   

 

 

   

 

 

 

Total Assets

   $ 554,675      $ 489,062       $ 452,391      $ 420,391      $ 420,496   
  

 

 

   

 

 

    

 

 

   

 

 

   

 

 

 

Liabilities

           

Notes payable

   $ 192,491      $ 122,857       $ 343,663      $ 299,580      $ 295,419   

Accounts payable, accrued expenses and other liabilities

     6,024        4,586         2,328        3,013        2,575   

Due to members

     —          —           —          —          1,221   

Interest rate contracts

     —          —           —          —          49   

Dividends payable

     5,368        —           —          —          —     

Acquired lease intangible liabilities, net (2)

     1,160        535         65        32        39   

Tenant security deposits

     6,155        4,840         4,521        4,075        3,738   

Prepaid rents

     1,448        447         542        322        335   

Liabilities associated with real estate held for sale

     260        195         7,877        18,462        20,872   
  

 

 

   

 

 

    

 

 

   

 

 

   

 

 

 

Total Liabilities

     212,906        133,460         358,996        325,484        324,248   
  

 

 

   

 

 

    

 

 

   

 

 

   

 

 

 

Equity

           

Rexford Industrial Realty Inc. common stock

   $ 255      $ 257       $ —        $ —        $ —     

Rexford Industrial Realty Inc. additional paid-in capital

     311,936        308,937         —          —          —     

Rexford Industrial Realty Inc. (accumulated deficit) retained earnings

     (5,993     256         —          —          —     
  

 

 

   

 

 

    

 

 

   

 

 

   

 

 

 

Total Rexford Industrial Realty Inc. stockholders’ equity

     306,198        309,450         —          —          —     
  

 

 

   

 

 

    

 

 

   

 

 

   

 

 

 

Predecessor equity

     —          —           11,968        11,968        11,962   

Predecessor accumulated deficit and distributions

     —          —           (27,592     (25,271     (24,653
  

 

 

   

 

 

    

 

 

   

 

 

   

 

 

 

Total Rexford Industrial Realty, Inc./Predecessor Equity

     306,198        309,450         (15,624     (13,303     (12,691
  

 

 

   

 

 

    

 

 

   

 

 

   

 

 

 

Noncontrolling interests

     35,571        46,152         109,019        108,210        108,939   
  

 

 

   

 

 

    

 

 

   

 

 

   

 

 

 

Total Equity

     341,769        355,602         93,395        94,907        96,248   
  

 

 

   

 

 

    

 

 

   

 

 

   

 

 

 

Total Liabilities and Equity

   $ 554,675      $ 489,062       $ 452,391      $ 420,391      $ 420,496   
  

 

 

   

 

 

    

 

 

   

 

 

   

 

 

 

 

(1)  For comparability, certain prior period amounts have been reclassified to conform to current period presentation of properties held for sale.
(2)  The balance at December 31, 2013 includes net below market lease of $883,000 and net above market ground lease of $277,000. All other periods include only net below market leases.

 

 

Fourth Quarter 2013

Supplemental Financial Reporting Package

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Consolidated and Combined Statement of Operations

Quarterly Results

(unaudited and in thousands, except share count and per share figures)

 

 

     Rexford Industrial Realty,
Inc. (1)
    Rexford Industrial Realty,
Inc. Predecessor
 
     Quarter ended
December 31,
2013
    Period from
July 24, 2013
to Sep. 30,
2013
    Period from
July 1, 2013
to July 23,
2013
    Quarter ended
June 30,

2013
    Quarter ended
March 31,
2013
 

Rental Revenues

          

Rental revenues

   $ 10,809      $ 7,640      $ 2,384      $ 9,062      $ 7,760   

Tenant reimbursements

     1,333        828        254        1,112        847   

Management, leasing, and development services

     253        281        13        170        261   

Other income

     53        40        20        49        118   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total rental revenues

     12,448        8,789        2,671        10,393        8,986   

Interest income

     190        191        63        324        311   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total Revenues

     12,638        8,980        2,734        10,717        9,297   

Operating Expenses

          

Property expenses

   $ 3,211      $ 2,026      $ 565      $ 2,397      $ 2,074   

General and administrative

     2,827        2,500        1,885        1,396        1,139   

Depreciation and amortization

     5,661        3,025        888        3,514        2,620   

Other property expenses

     666        501        124        438        326   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total Operating Expenses

     12,365        8,052        3,462        7,745        6,159   

Other (Income) Expense

          

Acquisition expenses

   $ 421      $ 119      $ 7      $ 624      $ 93   

Interest expense

     1,046        717        1,233        4,386        3,776   

Gain on mark-to-market of interest rate swaps

     —          —          —          —          (49
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total Other Expense

     1,467        836        1,240        5,010        3,820   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total Expenses

     13,832        8,888        4,702        12,755        9,979   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Equity in income (loss) from unconsolidated real estate entities

   $ 9      $ 83      $ 9      $ (712   $ (212

Gain from early repayment of note receivable

     —          —          —          —          1,365   

Loss on extinguishment of debt

     —          —          (3,919     —          (37
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net Income (Loss) from Continuing Operations

   $ (1,185   $ 175      $ (5,878   $ (2,750   $ 434   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Discontinued Operations

          

Income (loss) from discontinued operationsbefore gains on sale of real estate

   $ 179      $ 120      $ 27      $ (257   $ (581

Loss on extinguishment of debt

     —          —          (17     (41     (209

Gain on sale of real estate

     —          —          —          2,580        2,409   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Income from Discontinued Operations

   $ 179      $ 120      $ 10      $ 2,282      $ 1,619   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net Income (Loss)

   $ (1,006   $ 295      $ (5,868   $ (468   $ 2,053   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net (income) loss attributable to noncontrolling interests

   $ 125      $ (39   $ 3,559      $ (1,818   $ (1,726
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net Income (Loss) Attributable to Common Stockholders/Predecessor

   $ (881   $ 256      $ (2,309   $ (2,286   $ 327   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Earnings per Common Share - Basic and Diluted

          

Net income (loss) available to common stockholders

   $ (0.04   $ 0.01         
  

 

 

   

 

 

       

Weighted average shares outstanding - basic and diluted

     25,191,570        24,574,432         
  

 

 

   

 

 

       

 

(1)  The financials reflect operations since the completion of our initial public offering on July 24, 2013.

 

 

Fourth Quarter 2013

Supplemental Financial Reporting Package

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Consolidated and Combined Statement of Operations

Quarterly and Year-to-Date Results

(in thousands)

 

 

     Rexford
Industrial
Realty, Inc.
    Rexford Industrial
Realty, Inc.
Predecessor
    Rexford Industrial
Realty, Inc. and
Predecessor (1)
    Rexford Industrial
Realty, Inc.
Predecessor
 
     Quarter ended December 31,     Year ended December31,  
     2013     2012     2013     2012  
     (unaudited)     (unaudited)     (unaudited)     (unaudited)  

Rental Revenues

        

Rental revenues

   $ 10,809      $ 7,315      $ 37,655      $ 27,842   

Tenant reimbursements

     1,333        768        4,373        2,952   

Management, leasing, and development services

     253        174        978        518   

Other income

     53        27        280        105   
  

 

 

   

 

 

   

 

 

   

 

 

 

Total rental revenues

     12,448        8,284        43,286        31,417   

Interest income

     190        395        1,079        1,577   
  

 

 

   

 

 

   

 

 

   

 

 

 

Total Revenues

     12,638        8,679        44,365        32,994   

Operating Expenses

        

Property expenses

     3,211        1,837        10,276        7,950   

General and administrative

     2,827        1,279        9,747        5,146   

Depreciation and amortization

     5,661        2,777        15,708        11,921   

Other property expenses

     666        357        2,052        1,300   
  

 

 

   

 

 

   

 

 

   

 

 

 

Total Operating Expenses

     12,365        6,250        37,783        26,317   

Other (Income) Expense

        

Acquisition expenses

     421        354        1,264        599   

Interest expense

     1,046        4,221        11,158        16,875   

Gain on mark-to-market of interest rate swaps

     —          (526     (49     (2,361
  

 

 

   

 

 

   

 

 

   

 

 

 

Total Other Expense

     1,467        4,049        12,373        15,113   
  

 

 

   

 

 

   

 

 

   

 

 

 

Total Expenses

     13,832        10,299        50,156        41,430   
  

 

 

   

 

 

   

 

 

   

 

 

 

Equity in income (loss) from unconsolidated real estate entities

     9        56        (823     122   

Gain from early repayment of note receivable

     —          —          1,365        —     

Loss on extinguishment of debt

     —          —          (3,955     —     
  

 

 

   

 

 

   

 

 

   

 

 

 

Net Loss from Continuing Operations

     (1,185     (1,564     (9,204     (8,314
  

 

 

   

 

 

   

 

 

   

 

 

 

Discontinued Operations

        

Loss from discontinued operations before gains on sale of real estate

     179        (173     (510     (698

Loss on extinguishment of debt

     —          —          (267     —     

Gain on sale of real estate

     —          55        4,989        55   
  

 

 

   

 

 

   

 

 

   

 

 

 

Income (Loss) from Discontinued Operations

     179        (118     4,212        (643
  

 

 

   

 

 

   

 

 

   

 

 

 

Net Loss

     (1,006     (1,682     (4,992     (8,957
  

 

 

   

 

 

   

 

 

   

 

 

 

Net loss attributable to noncontrolling interests

     125        154        101        4,066   
  

 

 

   

 

 

   

 

 

   

 

 

 

Net Loss Attributable to Common Stockholders/Predecessor

   $ (881   $ (1,528   $ (4,891   $ (4,891
  

 

 

   

 

 

   

 

 

   

 

 

 

 

(1)  Reflects the results of operations for our Predecessor for the period from January 1, 2013 to July 23, 2013 and Rexford Industrial Realty, Inc. for the period from July 24, 2013 through December 31, 2013.

 

 

Fourth Quarter 2013

Supplemental Financial Reporting Package

  LOGO   Page 7


Non-GAAP FFO (1)

(in thousands)

(unaudited results)

 

 

     Rexford
Industrial
Realty, Inc. (2)
     Rexford Industrial Realty, Inc.
Predecessor
 
                        Three Months Ended  
     Three Months
Ended
December 31,
2013
    July 24, 2013 to
Sep. 30, 2013
     July 1, 2013 to
July 23, 2013
    June 30,
2013
    March 31,
2013
 

Funds From Operations (FFO)

           

Net income (loss)

   $ (881   $ 256       $ (5,868   $ (468   $ 2,053   

Add:

           

Depreciation and amortization, including amounts in discontinued operations

     5,716        3,062         901        3,611        3,285   

Depreciation and amortization from unconsolidated joint ventures and tenants in common

     153        96         107        144        470   

Impairment write-downs of depreciable real estate - unconsolidated joint ventures and tenants in common

     —          —           —          837        —     

Loss from early extinguishment of debt

     —          —           3,935        41        246   

Net income attributable to noncontrolling interests

     (125     39         —          —          —     

Deduct:

           

Gains on sale of real estate

     —          —           —          2,580        2,409   
  

 

 

   

 

 

    

 

 

   

 

 

   

 

 

 

FFO available to common shareholders and unitholders

   $ 4,863      $ 3,453       $ (925   $ 1,585      $ 3,645   
  

 

 

   

 

 

    

 

 

   

 

 

   

 

 

 

Company share of FFO (3)

   $ 4,308      $ 3,001          
  

 

 

   

 

 

        

FFO per share - basic and diluted

   $ 0.17      $ 0.12          
  

 

 

   

 

 

        

FFO available to common shareholders and unitholders

   $ 4,863      $ 3,453          

Add: Non-recurring legal fees (4)

     225        235          
  

 

 

   

 

 

        

FFO available to common shareholders and unitholders before non-recurring legal fees

   $ 5,088      $ 3,688          
  

 

 

   

 

 

        

Company share of FFO before non-recurring legal fees (3)

   $ 4,507      $ 3,267          
  

 

 

   

 

 

        

FFO per share before non-recurring legal fees - basic and diluted

   $ 0.18      $ 0.13          
  

 

 

   

 

 

        

Weighted-average shares outstanding - basic and diluted

     25,191,570        24,574,432          

Weighted-average diluted shares and units

     28,436,531        28,271,518          

 

(1)  For a definition and discussion of non-GAAP financial measures, see the definitions section beginning on page 25 of this report.
(2)  The financials reflect operations since the completion of our initial public offering on July 24, 2013.
(3)  Based on weighted average interest in our operating partnership of 11.41% for the period from October 1, 2013 to December 31, 2013.
(4)  Non-recurring legal fees relate to Accommodation and Litigation.

 

 

Fourth Quarter 2013

Supplemental Financial Reporting Package

  LOGO   Page 8


Non-GAAP AFFO (1)

(in thousands)

(unaudited results)

 

 

    Rexford Industrial Realty, Inc. (2)     Rexford Industrial Realty, Inc. Predecessor  
    Three Months
Ended December 31,
2013
    July 24, 2013 to
Sep. 30, 2013
    July 1, 2013 to July 23,
2013
    Three Months
Ended June 30,
2013
    Three Months
Ended March 31,
2013
 

Adjusted Funds From Operations (AFFO)

         

FFO available to common shareholders and unitholders

  $ 4,863      $ 3,453      $ (925   $ 1,585      $ 3,645   

Add:

         

Amortization of deferred financing costs

    124        93        127        406        251   

Fair value lease expense

    76        122        44        155        55   

Acquisition costs

    421        119        7        624        93   

Non-cash stock compensation

    (59     326        900        20        66   

Deduct:

         

Straight line rent adjustment

    515        290        41        44        196   

Gain on mark-to-market interest rate swaps

    —          —          —          —          49   

Capitalized payments (3)

    246        67        23        79        84   

Note Receivable discount amortization

    50        25        8        32        62   

Note Payable premium amortization

    11        9        3        12        12   

Recurring capital expenditures (4)

    335        139        —          385        72   

2nd generation tenant improvements and leasing commissions (5)

    390        166        (1     368        171   

Unconsolidated joint venture AFFO adjustments

    (21     (7     (10     (18     (8
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

AFFO

  $ 3,899      $ 3,424      $ 89      $ 1,888      $ 3,472   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

 

(1)  For a definition and discussion of non-GAAP financial measures, see the definitions section beginning on page 25 of this report.
(2)  The financials reflect operations since the completion of our initial public offering on July 24, 2013.
(3)  Includes capitalized leasing and construction development payroll.
(4)  Excludes nonrecurring capital expenditures of $748,000, $414,000, $1,000, $200,000, and $345,000 for the three months ended December 31, 2013, July 24, 2013 to September 30, 2013, the period from July 1, 2013 to July 23, 2013, the three months ended June 30, 2013 and the three months ended March 31, 2013, respectively.
(5)  Excludes 1st generation tenant improvements and leasing commissions of $370,000, $86,000, $27,000, $599,000, and $51,000 for the three months ended December 31, 2013, the period from July 24, 2013 to September 30, 2013, the period from July 1, 2013 to July 23, 2013, the three months ended June 30, 2013, and the three months ended March 31, 2013, respectively.

 

 

Fourth Quarter 2013

Supplemental Financial Reporting Package

  LOGO   Page 9


Statement of Operations Reconciliations (1)

(in thousands)

(unaudited results)

 

 

     Rexford Industrial Realty, Inc.     Rexford Industrial Realty, Inc. Predecessor  
     Three Months Ended
December 31, 2013
    July 24, 2013 to
Sep. 30, 2013
    July 1, 2013 to
July 23, 2013
    Three Months Ended  
           June 30,
2013
    March 31,
2013
 

Net Operating Income (NOI)

          

Rental revenues

   $ 10,809      $ 7,640      $ 2,384      $ 9,062      $ 7,760   

Tenant reimbursements

     1,333        828        254        1,112        847   

Other income

     53        40        20        49        118   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total operating revenues

     12,195        8,508        2,658        10,223        8,725   

Property expenses

     3,211        2,026        565        2,397        2,074   

Other property expenses

     666        501        124        438        326   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total operating expenses

     3,877        2,527        689        2,835        2,400   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

NOI

   $ 8,318      $ 5,981      $ 1,969      $ 7,388      $ 6,325   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Fair value lease revenue

     76        122        44        155        55   

Straight line rent adjustment

     (515     (290     (41     (44     (196
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Cash NOI

   $ 7,879      $ 5,813      $ 1,972      $ 7,499      $ 6,184   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net Income (Loss)

   $ (1,006   $ 295      $ (5,868   $ (468   $ 2,053   

Add:

          

General and administrative

     2,827        2,500        1,885        1,396        1,139   

Depreciation and amortization

     5,661        3,025        888        3,514        2,620   

Acquisition expenses

     421        119        7        624        93   

Interest expense

     1,046        717        1,233        4,386        3,776   

Gain on mark-to-market of interest rate swaps

     —          —          —          —          (49

Subtract:

          

Management, leasing, and development services

     253        281        13        170        261   

Interest income

     190        191        63        324        311   

Equity in income (loss) from unconsolidated real estate entities

     9        83        9        (712     (212

Gain from early repayment of note receivable

     —          —          —          —          1,365   

Loss on extinguishment of debt

     —          —          (3,919     —          (37

Income from discontinued operations

     179        120        10        2,282        1,619   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

NOI

   $ 8,318      $ 5,981      $ 1,969      $ 7,388      $ 6,325   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Fair value lease revenue

     76        122        44        155        55   

Straight line rent adjustment

     (515     (290     (41     (44     (196
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Cash NOI

   $ 7,879      $ 5,813      $ 1,972      $ 7,499      $ 6,184   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

 

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

 

 

Fourth Quarter 2013

Supplemental Financial Reporting Package

  LOGO   Page 10


Statement of Operations Reconciliations (1)

(in thousands)

(unaudited results)

 

 

     Rexford Industrial Realty, Inc.  
     Three Months Ended     July 24, 2013 to
September 30, 2013
 
     December 31, 2013    

Net income (loss)

   $ (1,006   $ 295   

Interest expense

     1,046        717   

Proportionate share of interest expense from unconsolidated joint ventures

     42        32   

Depreciation and amortization

     5,661        3,025   

Depreciation and amortization included in discontinued operations

     55        37   

Proportionate share of real estate related depreciation and amortization from unconsolidated joint ventures

     153        72   
  

 

 

   

 

 

 

EBITDA

   $ 5,951      $ 4,178   
  

 

 

   

 

 

 

Stock-based compensation amortization

     (59     326   

Loss on extinguishment of debt

     —          —     

Non-recurring legal fees (2)

     225        235   

Pro forma effect of acquisitions (3)

     606        23   

Pro forma effect of assets sold subsequent to December 31, 2013 (4)

     (234     (157
  

 

 

   

 

 

 

Adjusted EBITDA

   $ 6,489      $ 4,605   
  

 

 

   

 

 

 

 

(1)  For a definition and discussion of non-GAAP financial measures, see the definitions section beginning on page 25 of this report.
(2)  Non-recurring legal fees relate to Accommodation and Litigation.
(3)  Represents the estimated impact of Q4’13 acquisitions as if they had been acquired on October 1, 2013, and Q3’13 acquisitions as if they had been acquired on July 24, 2013. We have made a number of assumptions in calculating such estimates and there can be no assurance that we would have generated the projected levels of EBITDA had we owned the acquired entities as of October 1, 2013.
(4)  Represents the estimated impact of Kaiser, which was sold on January 29, 2014, as if it had been disposed of as of the beginning of the period presented.

 

 

Fourth Quarter 2013

Supplemental Financial Reporting Package

  LOGO   Page 11


Same Property Portfolio Performance (1)

Statement of Operations and NOI Reconciliation

(in thousands)

(unaudited results)

 

Same Property Portfolio Statement of Operations:

 

     Three Months Ended December 31,                 The Year Ended December 31,              
     2013     2012     $ Change     % Change     2013 (2)     2012     $ Change     % Change  

Rental Revenues

                

Rental revenues

   $ 7,901      $ 7,263      $ 638        8.8   $ 29,896      $ 27,268      $ 2,628        9.6

Tenant reimbursements

     881        771        110        14.3     3,275        2,843        432        15.2

Other operating revenues

     33        3        30        1000.0     231        79        152        192.4
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total rental revenues

     8,815        8,037        778        9.7     33,402        30,190        3,212        10.6

Interest income

     190        252        (62     (24.6 %)      1,016        1,004        12        1.2
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total Revenues

     9,005        8,289        716        8.6     34,418        31,194        3,224        10.3

Operating Expenses

                

Property expenses

   $ 2,532      $ 2,170      $ 362        16.7   $ 9,283      $ 8,777      $ 506        5.8

Depreciation and amortization

     3,695        2,967        728        24.5     11,313        12,129        (816     (6.7 %) 
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total Operating Expenses

     6,227        5,137        1,090        21.2     20,596        20,906        (310     (1.5 %) 

Other (Income) Expense

                

Interest expense (3)

     60        4,299        (4,239     (98.6 %)      9,075        17,339        (8,264     (47.7 %) 
  

 

 

   

 

 

   

 

 

     

 

 

   

 

 

   

 

 

   

 

 

 

Total Other Expense

     60        4,299        (4,239     (98.6 %)      9,075        17,339        (8,264     (47.7 %) 
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total Expenses

     6,287        9,436        (3,149     (33.4 %)      29,671        38,245        (8,574     (22.4 %) 

Loss on extinguishment of debt

     —          —          —            (3,382     —          (3,382  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net Income (Loss)

   $ 2,718      $ (1,147   $ 3,865        337.0   $ 1,365      $ (7,051   $ 8,416        119.4
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
Same Property Portfolio NOI Reconciliation:   
     Three Months Ended December 31,                 The Year Ended December 31,              
     2013 (2)     2012     $ Change     % Change     2013 (2)     2012     $ Change     % Change  

NOI

                

Net Income (Loss)

   $ 2,718      $ (1,147         1,365      $ (7,051    

Add:

                

Interest expense (3)

     60        4,299            9,075        17,339       

Depreciation and amortization

     3,695        2,967            11,313        12,129       

Deduct:

                

Loss on extinguishment of debt

     —          —              (3,382     —         

Interest income

     190        252            1,016        1,004       
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

NOI

   $ 6,283      $ 5,867      $ 416        7.1   $ 24,119      $ 21,413      $ 2,706        12.6
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Straight-line rents

     (209     (579         (158     (802    

Amort. above/below market leases

     24        36            77        142       
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Cash NOI

   $ 6,098      $ 5,324      $ 774        14.5   $ 24,038      $ 20,753      $ 3,285        15.8
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

 

(1)  For a definition and discussion of non-GAAP financial measures, see the definitions section beginning on page 25 of this report.
(2)  Reflects the results of operations for our Predecessor for the period from January 1, 2013 to July 23, 2013 and Rexford Industrial Realty, Inc. for the period from July 24, 2013 through December 31, 2013.
(3)  Interest expense for the three months ended December 31, 2013 only reflects interest for the loan secured by our property located at 107700 Jersey Blvd. Interest on our post-IPO $60mm term loan, which is secured by multiple properties, is being treated as debt of the operating partnership and accordingly the interest is not being pushed down to the property.

 

 

Fourth Quarter 2013

Supplemental Financial Reporting Package

  LOGO   Page 12


Same Property Portfolio Performance (1)

NOI Reconciliation, Portfolio Detail, and Occupancy

(in thousands)

(unaudited results)

 

Same Property Portfolio NOI Reconciliation Continued:

 

     Three Months Ended
December 31,
          Year Ended December 31,        
     2013     2012     $
Change
    %
Change
    2013 (2)     2012     $
Change
    %
Change
 

Rental revenues

   $ 7,901      $ 7,263      $ 638        8.8   $ 29,896      $ 27,268      $ 2,628        9.6

Tenant reimbursements

     881        771        110        14.3     3,275        2,843        432        15.2

Other operating revenues

     33        3        30        1000.0     231        79        152        192.4
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total rental revenue

     8,815        8,037        778        9.7     33,402        30,190        3,212        10.6

Property expenses

     2,085        1,853        232        12.5     7,884        7,664        220        2.9

Other property expenses

     447        317        130        41.0     1,399        1,113        286        25.7
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total property expense

     2,532        2,170        362        16.7     9,283        8,777        506        5.8
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

NOI

   $ 6,283      $ 5,867      $ 416        7.1   $ 24,119      $ 21,413      $ 2,706        12.6
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Straight-line rents

     (209     (579     370        (63.9 %)      (158     (802     644        (80.3 %) 

Amort. above/below market leases

     24        36        (12     (33.3 %)      77        142        (65     (45.8 %) 
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Cash NOI

   $ 6,098      $ 5,324      $ 774        14.5   $ 24,038      $ 20,753      $ 3,285        15.8
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Same Property Portfolio Detail:

 

     Quarterly Same Property Portfolio Detail     Annual Same Property Portfolio Detail  
     # of
Properties
    Square
Feet
    Wtd Avg.
Occupancy
    # of
Properties
    Square
Feet
    Wtd Avg.
Occupancy
 
                 2013     2012                 2013     2012  

Period ended September 30, 2013 and 2012

     49        4,320,532        87.3     81.6     47        4,174,679        87.1     81.2

Additions (deductions)

     (1     (124,944     100.0     5.1     (1     (124,944     100.0     5.1
  

 

 

   

 

 

       

 

 

   

 

 

     

Period ended December 31, 2013 and 2012

     48        4,195,588        89.3     86.3     46        4,049,735        89.1     86.1

Same Property Portfolio Occupancy:

 

     Three Months Ended
December 31, 2013
  Three Months Ended
December 31, 2012
  Change (ppt)

Occupancy:

      

Los Angeles County

   89.3%   89.5%   -0.2%

Orange County

   95.7%   87.6%   8.1%

San Bernardino County

   88.4%   84.5%   3.9%

Ventura County

   100.0%   100.0%   0.0%

San Diego County

   81.6%   72.2%   9.4%

Other

   80.6%   74.9%   5.7%
  

 

 

 

 

 

Total/Weighted Average

   89.3%   86.3%   3.0%
  

 

 

 

 

 

 

(1)  For a definition and discussion of non-GAAP financial measures, see the definitions section beginning on page 25 of this report.
(2)  Includes Predecessor and Rexford Industrial Realty, Inc. results.

 

 

Fourth Quarter 2013

Supplemental Financial Reporting Package

  LOGO   Page 13


Joint Venture Financial Summary

Balance Sheet

(in thousands)

(unaudited results)

 

 

     Mission Oaks (1)  
     December 31, 2013     September 30, 2013     June 30, 2013  

Assets:

      

Investments in real estate, net

   $ 54,074      $ 53,316        51,240   

Cash and cash equivalents

     811        781        1,758   

Rents and other receivables, net

     152        286        145   

Deferred rent receivable

     107        62        12   

Deferred leasing costs and acquisition related intangible assets, net

     5,254        5,913        6,165   

Deferred loan costs, net

     159        185        212   

Acquired above-market leases, net

     823        912        1,001   

Other assets

     42        73        101   
  

 

 

   

 

 

   

 

 

 

Total Assets

   $ 61,422      $ 61,528      $ 60,634   
  

 

 

   

 

 

   

 

 

 

Liabilities:

      

Notes payable

   $ 41,500      $ 41,500      $ 41,500   

Accounts payable, accrued expenses and other liabilities

     689        755        244   

Tenant security deposits

     277        267        267   

Prepaid rents

     9        —          —     
  

 

 

   

 

 

   

 

 

 

Total Liabilities

     42,475        42,522        42,011   
  

 

 

   

 

 

   

 

 

 

Equity:

      

Equity

     18,762        18,762        18,762   

Accumulated deficit and distributions

     185        244        (139
  

 

 

   

 

 

   

 

 

 

Total Equity

     18,947        19,006        18,623   
  

 

 

   

 

 

   

 

 

 

Total Liabilities and Equity

   $ 61,422      $ 61,528      $ 60,634   
  

 

 

   

 

 

   

 

 

 

Rexford Industrial Realty, Inc./Predecessor Ownership %:

     15     15     15

 

(1)  These financials represent amounts attributable to the entities and do not represent our proportionate share.

 

 

Fourth Quarter 2013

Supplemental Financial Reporting Package

  LOGO   Page 14


Joint Venture Financial Summary (1)

Statement of Operations

(in thousands)

(unaudited results)

 

 

Statement of Operations:

     Mission Oaks (2)  
     Three Months Ended  
     December 31, 2013     September 30, 2013     June 30, 2013  

Income Statement

      

Rental revenues

   $ 1,419      $ 1,427      $ 1,272   

Tenant reimbursements

     330        330        261   

Other operating revenues

     260        455        294   
  

 

 

   

 

 

   

 

 

 

Total revenue

     2,009        2,212        1,827   

Total operating expense

     736        912        696   
  

 

 

   

 

 

   

 

 

 

NOI

     1,273        1,300        1,131   
  

 

 

   

 

 

   

 

 

 

General and administrative

     32        1        39   

Depreciation and amortization

     1,021        637        650   

Interest expense

     278        280        281   
  

 

 

   

 

 

   

 

 

 

Total expense

     2,067        1,830        1,666   
  

 

 

   

 

 

   

 

 

 

Net Income (Loss)

   $ (58   $ 382      $ 161   
  

 

 

   

 

 

   

 

 

 

EBITDA

      

Net income (loss)

   $ (58   $ 382      $ 161   

Interest expense

     278        280        281   

Depreciation and amortization

     1,021        637        650   
  

 

 

   

 

 

   

 

 

 

EBITDA

   $ 1,241      $ 1,299      $ 1,092   
  

 

 

   

 

 

   

 

 

 

Rexford Industrial Realty, Inc./Predecessor Ownership %:

     15     15     15
Reconciliation - Equity Income in Joint Venture:       

Net income (loss)

   $ (58   $ 382      $ 161   

Rexford Industrial Realty, Inc./Predecessor Ownership %:

     15     15     15

Company share

     (9     57        24   

Intercompany eliminations

     18        39        35   
  

 

 

   

 

 

   

 

 

 

Equity in net income (loss) from unconsolidated real estate entities

   $ 9      $ 96      $ 59   
  

 

 

   

 

 

   

 

 

 

 

(1)  For a definition and discussion of non-GAAP financial measures, see the definitions section beginning on page 25 of this report.
(2)  These financials represent amounts attributable to the entities and do not represent our proportionate share.

 

 

Fourth Quarter 2013

Supplemental Financial Reporting Package

  LOGO   Page 15


Capitalization Summary

(unaudited results)

 

Capitalization as of December 31, 2013

 

Description

   December 31, 2013     September 30, 2013  

Common shares (1)

     25,419,418        24,757,841   

Operating partnership units

     3,009,259        3,697,086   
  

 

 

   

 

 

 

Total shares and units at period end (1)

     28,428,677        28,454,927   

Share price at 12/31/13

   $ 13.20      $ 13.51   
  

 

 

   

 

 

 

Total Equity Market Capitalization

   $ 375,258,536      $ 384,426,064   

Total Consolidated Debt

   $ 192,558,968      $ 122,794,765   

Plus: pro-rata share of debt related to unconsolidated JV’s

     6,225,000        6,225,000   
  

 

 

   

 

 

 

Total Debt (pro-rata)

   $ 198,783,968      $ 129,019,765   
  

 

 

   

 

 

 

Total Combined Market Capitalization

   $ 574,042,504      $ 513,445,829   
  

 

 

   

 

 

 

Total debt (pro-rata) to total combined market capitalization

     34.6     25.1

Total debt (pro-rata) to adjusted EBITDA (quarterly results annualized)

     7.7x        5.3x   

 

(1)  Excludes 140,468 and 920,734 unvested shares of restricted stock at December 31, 2013 and September 30, 2013, respectively.

 

 

Fourth Quarter 2013

Supplemental Financial Reporting Package

  LOGO   Page 16


Debt Summary

(in thousands)

(unaudited results)

 

Debt Detail:

As of December 31, 2013

Debt Description

   Initial Maturity
Date
     Maturity Date
w/ Extensions
   Stated
Interest Rate
  Effective
Interest Rate
    Balance  

Secured Debt:

            

Glendale Commerce Center (1)

     5/1/2016       5/1/2018    LIBOR + 2.00%     2.169   $ 42,750   

10700 Jersey Blvd.

     1/1/2015       N/A    5.45%     5.450     5,139   

Term Loan

     8/1/2019       8/1/2020    LIBOR + 1.90%     2.067     60,000   

Gilbert/La Palma

     3/1/2031       N/A    5.125%     5.125     3,295   

Unsecured Credit Facility:

            

$200M facility

     7/24/2016       7/24/2018    LIBOR + 1.50%     1.992 %(2)      81,375   
          

 

 

   

 

 

 

Total Consolidated:

             2.200   $ 192,559   
          

 

 

   

 

 

 

Pro-rata Joint Venture Interest:

            

Mission Oaks (3)

     6/28/2015       6/28/2017    LIBOR + 2.50%     2.688   $ 6,225   

 

(1)  Located at 3350 Tyburn St., 3332—3424 N. San Fernando Rd.
(2)  Includes the effect of the unused commitment fee which is calculated as 0.30% of the daily unused commitment.
(3)  3001, 3175 & 3233 Mission Oaks Blvd. structured as 3 separate cross-collateralized loans with similar terms.

Consolidated Debt Composition:

 

Category

   Avg. Term
Remaining (yrs)
     Stated
Interest Rate
  Effective
Interest Rate
    Balance      % of Total  

Fixed

     7.3       5.32%     5.32   $ 8,434         4

Variable(1)

     3.5       LIBOR + 1.75%     2.06   $ 184,125         96
  

 

 

    

 

 

 

 

   

 

 

    

 

 

 

Secured

     4.5           2.35   $ 111,184         58

Unsecured credit facility

     2.6           1.99   $ 81,375         42

 

(1)  On February 4, 2014 we executed two forward interest rate swaps to effectively fix the interest rate on our $60mm term loan in the future as follows: (i) $30 million at 3.726% annually from 1/15/15 to 2/15/19, and (ii) $30 million at 3.91% annually from 7/15/15 to 2/15/19.

Debt Maturity Schedule:

 

Year

   Secured      Unsecured
Credit Facility
     Total      % Total     Interest Rate  

2014

   $ —         $ —         $ —           0     —     

2015

     5,139         —           5,139         3     5.45

2016

     42,750         81,375         124,125         64     2.05

2017

     —           —           —           0     —     

2018

     —           —           —           0     —     

2019

     60,000         —           60,000         31     2.07

Thereafter

     3,295         —           3,295         2     5.13
  

 

 

    

 

 

    

 

 

    

 

 

   

 

 

 

Total

   $ 111,184       $ 81,375       $ 192,559         100     2.20

 

 

Fourth Quarter 2013

Supplemental Financial Reporting Package

  LOGO   Page 17


Portfolio Overview

at 12/31/2013

(unaudited results)

 

Consolidated Portfolio:

INDUSTRIAL:

 

                               Ann. Base Rent  

Market

   # Properties      % Owned     Pro-rata
Sq. Ft.
     Occ. %     Total
(in thousands)
     per SF  

Greater San Fernando Valley

     16         100.0     1,527,827         94.9   $ 14,308       $ 9.87   

San Gabriel Valley

     8         100.0     978,341         97.6     7,240       $ 7.58   

Central LA

     1         100.0     190,663         100.0     1,272       $ 6.67   

Mid-Counties

     4         100.0     522,430         75.0     2,974       $ 7.59   

South Bay

     6         100.0     335,311         79.5     2,009       $ 7.53   
  

 

 

    

 

 

   

 

 

    

 

 

   

 

 

    

 

 

 

Los Angeles County

     35         100.0     3,554,572         91.5     27,803       $ 8.55   

North Orange County

     4         100.0     459,754         88.5     3,877       $ 9.53   

Airport

     4         100.0     289,040         96.8     2,274       $ 8.13   
  

 

 

    

 

 

   

 

 

    

 

 

   

 

 

    

 

 

 

Orange County

     8         100.0     748,794         91.7     6,151       $ 8.96   

Inland Empire West

     5         100.0     495,561         86.4     3,995       $ 9.34   

Inland Empire East

     2         100.0     85,282         94.2     476       $ 5.92   
  

 

 

    

 

 

   

 

 

    

 

 

   

 

 

    

 

 

 

San Bernardino County

     7         100.0     580,843         87.5     4,471       $ 8.80   

Camarillo / Oxnard

     3         100.0     410,533         97.7     3,086       $ 7.69   
  

 

 

    

 

 

   

 

 

    

 

 

   

 

 

    

 

 

 

Ventura County

     3         100.0     410,533         97.7     3,086       $ 7.69   

North County

     7         100.0     709,251         84.9     5,034       $ 8.36   

Central

     2         100.0     137,989         93.9     1,615       $ 12.46   

South County

     1         100.0     78,615         72.4     505       $ 8.87   
  

 

 

    

 

 

   

 

 

    

 

 

   

 

 

    

 

 

 

San Diego County

     10         100.0     925,855         85.1     7,154       $ 9.08   

Other - Glenview, Illinois

     1         100.0     37,992         80.6     389       $ 12.70   
  

 

 

    

 

 

   

 

 

    

 

 

   

 

 

    

 

 

 

INDUSTRIAL CONSOLIDATED TOTAL / WEIGHTED AVERAGE

     64         100.0     6,258,589         90.6     49,054       $ 8.65   
  

 

 

    

 

 

   

 

 

    

 

 

   

 

 

    

 

 

 

OFFICE:

               

Greater San Fernando Valley (1)

     1         100.0     63,305         0.0     —         $ 0.00   
  

 

 

    

 

 

   

 

 

    

 

 

   

 

 

    

 

 

 

CONSOLIDATED TOTAL / WEIGHTED AVERAGE

     65         100.0     6,321,894         89.7   $ 49,054       $ 8.65   
  

 

 

    

 

 

   

 

 

    

 

 

   

 

 

    

 

 

 

 

(1)       This office building, located at 2900 N. Madera Road was recently acquired on December 17, 2013. As of February 18,

         2014, this property was in escrow for sale.

 

Unconsolidated Joint Ventures:

 

          

             

  

Camarillo / Oxnard

     3         15.0     178,261         73.0   $ 788       $ 6.05   
  

 

 

    

 

 

   

 

 

    

 

 

   

 

 

    

 

 

 

UNCONSOLIDATED TOTAL / WEIGHTED AVERAGE

     3         15.0     178,261         73.0   $ 788       $ 6.06   
  

 

 

    

 

 

   

 

 

    

 

 

   

 

 

    

 

 

 

 

Total Portfolio:

 

               

GRAND TOTAL / WEIGHTED AVERAGE

     68         86.5     6,500,155         89.2   $ 49,842       $ 8.60   
  

 

 

    

 

 

   

 

 

    

 

 

   

 

 

    

 

 

 

 

 

Fourth Quarter 2013

Supplemental Financial Reporting Package

  LOGO   Page 18


Occupancy and Leasing Trends

(unaudited results, data represents consolidated portfolio only on a pro rata basis)

 

Occupancy by County:

     Dec. 31, 2013     Sep. 30, 2013     Jun. 30, 2013     Mar. 31, 2013     Dec. 31, 2012  

Occupancy:

          

Los Angeles County (1)

     89.9     88.1     90.9     90.9     90.2

Orange County

     91.7     92.6     88.1     93.4     83.5

San Bernardino County

     87.5     85.7     82.3     83.0     84.5

Ventura County

     97.7     97.3     97.3     99.6     95.0

San Diego County

     85.1     83.4     83.4     63.4     64.0

Other

     80.6     69.0     67.2     75.6     85.3
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total/Weighted Average (2)

     89.7     88.0     88.8     85.6     84.6
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Consolidated Portfolio SF

     6,321,894        10,978,992        10,580,532        9,284,556        14,672,505   

Leasing Activity:

          
     Three Months Ended  
     Dec. 31, 2013     Sep. 30, 2013 (4)     Jun. 30, 2013     Mar. 31, 2013     Dec. 31, 2012  

Leasing Activity (SF): (3)

          

New leases

     142,248        143,973        265,394        283,507        201,942   

Renewal

     244,068        194,978        244,206        337,887        231,655   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Gross leasing

     386,316        338,951        509,600        621,394        433,597   

Expiring leases

     309,769        328,098        339,347        425,011        291,409   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net absorption

     76,547        10,853        170,253        196,383        142,188   

Retention rate

     79     59     72     80     79

Weighted Average Renewal Leasing Spreads:

  

     Dec. 31, 2013     Sep. 30, 2013     Jun. 30, 2013        

Cash Rent Change

     3.5     (1.1 %)      (2.8 %)   

GAAP Rent Change

     12.9     6.7     8.2  

 

(1) Excluding the December 17, 2013 acquisition of the office building located at 2900 N. Madera Road, the occupancy at December 31, 2013 is 91.5%.
(2) Excluding the December 17, 2013 acquisition of the office building located at 2900 N. Madera Road, the occupancy at December 31, 2013 is 90.6%.
(3)  Excludes month-to-month tenants.
(4)  Includes Predecessor and Rexford Industrial Realty, Inc. results.

 

 

Fourth Quarter 2013

Supplemental Financial Reporting Package

  LOGO   Page 19


Leasing Statistics

(unaudited results, data represents consolidated portfolio only on a pro rata basis)

 

Leasing Activity:

     # Leases
Signed
     SF of
Leasing
     Wtd. Avg.
Lease Term
     Rent Change -
Cash
    Rent Change -
GAAP
 

Fourth Quarter 2013:

             

New

     38         142,248         3.5         4.5     15.2

Renewal (1)

     53         244,068         2.5         3.3     12.4
  

 

 

    

 

 

    

 

 

    

 

 

   

 

 

 

Total/Weighted Average

     91         386,316         2.9         3.5     12.9
  

 

 

    

 

 

    

 

 

    

 

 

   

 

 

 

Uncommenced Leases by County:

 

Market

   Leased
SF
     Uncomm.
Lease Ann.
Base Rent (in
thousands)
     Total Pro
Forma Ann.
Base Rent (in
thousands)
     Pro Forma
Occupancy %
    Pro Forma
Ann. Base
Rent per SF
 

Los Angeles County

     14,495       $ 104       $ 27,908         91.9   $ 8.54   

Orange County

     12,713         130         6,281         93.4   $ 8.98   

San Bernardino County

     18,004         123         4,594         90.6   $ 8.73   

Ventura County

     —           —           3,086         97.7   $ 7.69   

San Diego County

     28,347         232         7,386         88.2   $ 9.04   

Other

     —           —           389         80.6   $ 12.70   
  

 

 

    

 

 

    

 

 

    

 

 

   

 

 

 

Total/Weighted Average

     73,559       $ 589       $ 49,643         91.7   $ 8.65   
  

 

 

    

 

 

    

 

 

    

 

 

   

 

 

 

Lease Expiration Schedule:

 

Year of Lease Expiration

   # of Leases
Expiring
     Total Rentable
SF
     Ann. Base
Rent (in
thousands)
     % of Ann.
Base Rent
    Ann. Base
Rent per SF
 

Available

     —           654,016         —           —          —     

MTM Tenants

     44         106,434       $ 905         1.9   $ 8.51   

2013 (2)

     9         93,716       $ 1,126         2.3   $ 12.01   

2014

     334         1,656,034       $ 14,090         28.7   $ 8.51   

2015

     222         1,153,536       $ 9,774         19.9   $ 8.47   

2016

     128         834,859       $ 7,616         15.5   $ 9.12   

2017

     28         665,114       $ 4,714         9.6   $ 7.09   

2018

     28         471,417       $ 3,873         7.9   $ 8.21   

2019

     6         64,293       $ 674         1.4   $ 10.48   

2020

     4         154,526       $ 2,612         5.3   $ 16.90   

2021

     4         36,388       $ 804         1.6   $ 22.09   

2022

     1         107,861       $ 440         0.9   $ 4.08   

Thereafter

     4         323,700       $ 2,426         5.0   $ 7.49   
  

 

 

    

 

 

    

 

 

    

 

 

   

 

 

 

Total Portfolio

     812         6,321,894       $ 49,054         100.0   $ 8.65   
  

 

 

    

 

 

    

 

 

    

 

 

   

 

 

 

 

(1)  Over 96% of lease renewals during the quarter achieved flat or positive cash rent growth.
(2) Of the nine leases expiring on 12/31/13, seven leases vacated totaling 33,745 SF and $398,352 of annualized base rent, one lease renewed totaling 33,799 SF and $251,472 of annualized base rent and one lease downsized totaling 26,172 SF and $476,028 of annualized base rent.

 

 

Fourth Quarter 2013

Supplemental Financial Reporting Package

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Top Tenants and Lease Segmentation

(unaudited results, data represents consolidated portfolio only on a pro rata basis)

 

Top 10 Tenants:

 

Tenant

  

Submarket

   Leased SF      % of Total
Ann. Base
Rent
    Ann. Base
Rent per SF
     Lease
Expiration
 

Warehouse Specialists

   LA - San Gabriel Valley      245,961         2.2   $ 4.32         11/30/2017   

State of California

   Inland Empire West      58,781         2.1   $ 17.88         3/31/2020   

Biosense

   LA - San Gabriel Valley      76,000         2.0   $ 12.99         10/31/2020   

ITT Industries, Inc.

   LA - San Gabriel Valley      67,838         1.8   $ 12.63         9/30/2023   

Kingsbridge International

   LA - San Fern. Valley      136,065         1.6   $ 5.88         1/31/2024   

Dr. Bonner’s Magic Soaps

   San Diego - North      118,597         1.5   $ 6.24         11/30/2024   

Towne, Inc.

   OC - Airport      122,060         1.4   $ 5.73         7/31/2014   

Zag America

   LA - San Fern. Valley      25,168         1.4   $ 27.60         12/31/2021   

Team Acquisition Corp.

   LA - San Fern. Valley      20,442         1.3   $ 31.19         12/31/2016   

L&L Printers Carlsbad

   San Diego - North      61,620         1.2   $ 9.12         2/28/2017   
  

 

  

 

 

    

 

 

   

 

 

    

Top 10 Total / Wtd. Avg.

        932,532         16.5   $ 8.68      
  

 

  

 

 

    

 

 

   

 

 

    

Lease Segmentation by Size:

 

Square Feet

   Number of Leases      Leased SF      Ann. Base
Rent (in
thousands)
     % of Total
Ann. Base
Rent
    Ann. Base
Rent per SF
 

<4,999

     598         1,218,853       $ 12,124         24.7   $ 9.95   

5,000 - 9,999

     87         600,433         5,520         11.3   $ 9.19   

10,000 - 24,999

     82         1,280,151         12,012         24.5   $ 9.38   

25,000 - 49,999

     27         888,976         7,746         15.8   $ 8.71   

>50,000

     18         1,679,465         11,652         23.7   $ 6.94   
  

 

 

    

 

 

    

 

 

    

 

 

   

 

 

 

Total / Wtd. Avg.

     812         5,667,878       $ 49,054         100.0   $ 8.65   
  

 

 

    

 

 

    

 

 

    

 

 

   

 

 

 

 

 

Fourth Quarter 2013

Supplemental Financial Reporting Package

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Capital Expenditure Summary

(unaudited results, data represents consolidated portfolio only on a pro rata basis)

 

Quarter Ended December 31, 2013:

 

     Amount     SF      PSF  

Tenant Improvements:

       

New Leases - 1st Generation

   $ 260,000        78,249       $ 3.32   

New Leases - 2nd Generation

   $ 117,000        82,649       $ 1.42   

Renewals

   $ 121,000        173,326       $ 0.70   

Leasing Commissions:

       

New Leases - 1st Generation

   $ 110,000        89,166       $ 1.23   

New Leases - 2nd Generation

   $ 52,000        63,310       $ 0.82   

Renewals

   $ 100,000        141,992       $ 0.70   

Total Recurring Capex:

       

Recurring Capex

   $ 335,000        6,258,589       $ 0.05   

Recurring Capex % NOI

     4.0     

Recurring Capex % Operating Revenue

     2.7     

Nonrecurring Capex

   $ 748,000        6,258,589       $ 0.12   

Year Ended December 31, 2013:

       
     Amount     SF      PSF  

Tenant Improvements:

       

New Leases - 1st Generation

   $ 455,000        397,036       $ 1.15   

New Leases - 2nd Generation

   $ 245,000        221,601       $ 1.11   

Renewals

   $ 168,000        234,019       $ 0.72   

Leasing Commissions:

       

New Leases - 1st Generation

   $ 678,000        393,293       $ 1.72   

New Leases - 2nd Generation

   $ 328,000        324,734       $ 1.01   

Renewals

   $ 352,000        469,010       $ 0.75   

Total Recurring Capex:

       

Recurring Capex (1)

   $ 869,000        5,434,314       $ 0.16   

Recurring Capex % NOI

     2.9     

Recurring Capex % Operating Revenue

     2.1     

Nonrecurring Capex (1)

   $ 1,708,000        5,434,314       $ 0.31   

 

(1)  Square footage based on the average of the last four quarters.

 

 

Fourth Quarter 2013

Supplemental Financial Reporting Package

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Properties Under Repositioning

(unaudited results, all figures pro rata except SF)

 

Acquisition and Investment Detail:

As of December 31, 2013

 

Property

   Ownership
%
    Total SF
presented
on a wholly
owned basis
     Acquisition
Date
     Occupancy %
at December 31,
2013
    Purchase
Price

($ in MM)
     Inv.-to-
date

($ in MM)
     Projected
Total Inv.

($ in MM)
 

Work In Progress:

                  

3233 Mission Oaks Blvd.

     15.0     452,111         Jun-12         32   $ 2.3       $ 3.1       $ 3.5   

Glendale*

     100.0     38,665         Apr-08         65   $ 6.0       $ 7.7         N/A   

1661 240th St.

     100.0     100,851         May-13         45   $ 5.0       $ 5.2       $ 7.6   
  

 

 

   

 

 

    

 

 

    

 

 

   

 

 

    

 

 

    

 

 

 

Grand Total / Wtd. Avg.

       591,627            36   $ 13.3       $ 15.9       $ 11.1   
  

 

 

   

 

 

    

 

 

    

 

 

   

 

 

    

 

 

    

 

 

 

 

* Located at 700 Allen Ave., 1840 Dana St., & 1830 Flower St.

 

 

 

Fourth Quarter 2013

Supplemental Financial Reporting Package

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Acquisitions and Dispositions Summary

(unaudited results, data presented on a wholly owned basis)

 

Acquisitions:

Date

  

Property

 

Address

 

Submarket

 

SF

   

Price

($ in
MM)

   

Occ. % at
Acquisition

   

Occ. % at

Dec. 31, 2013

 

May-11

   Vinedo   122-125 North Vinedo Ave.   LA - San Fern. Valley     48,381      $ 5.2        100     100

Aug-11

   MacArthur   3441 W MacArthur Blvd.   OC - Airport     122,060      $ 8.5        100     100

Aug-11

   Odessa   6701 & 6711 Odessa Ave.   LA - San Fern. Valley     29,544      $ 2.8        0     100

Nov-11

   Golden Valley   13914-13932 Valley Blvd.   LA - San Gabriel     58,084      $ 3.6        70     82

Nov-11

   Jersey   10700 Jersey Blvd.   Inland Empire West     107,568      $ 7.6        80     88

Dec-11

   Shoemaker   14944, 14946 & 14948 Shoemaker Ave.   LA - Mid-counties     85,950      $ 5.7        68     95

Dec-11

   Arrow   15705, 15709 Arrow Highway & 5220 Forth St.   LA - San Gabriel     69,592      $ 5.5        91     97

Dec-11

   Normandie   20920-20950 Normandie Ave.   LA - South Bay     49,466      $ 4.4        73     98

Dec-11

   Paramount   6423-6431 & 6407-6119 Alondra Blvd.   LA - South Bay     30,224      $ 2.6        100     100

Mar-12

   Campus   1400 S. Campus Ave.   Inland Empire West     107,861      $ 4.8        100     100

May-12

   Zenith   500-560 Zenith Dr.   Illinois     37,992      $ 1.6        72     81

Jun-12

   Mission Oaks   3001, 3175 & 3233 Mission Oaks Blvd.   Ventura County     1,188,407      $ 59.1        73     73

Dec-12

   Calvert   15041 Calvert St.   LA - San Fern. Valley     81,282      $ 5.6        100     100

Dec-12

   Del Norte   701 Del Norte Blvd.   Ventura County     125,514      $ 9.5        95     92

Apr-13

   Broadway   18118-18120 S. Broadway   LA - South Bay     78,183      $ 5.4        100     100

Apr-13

   Glendale Commerce Center   3350 Tyburn St., 3332 - 3424 N. San Fernando Rd.   LA - San Fern. Valley     473,345      $ 56.2        100     99

Apr-13

   Benson   8900-8980 Benson Ave., 5637 Arrow Highway   Inland Empire West     88,146      $ 7.2        84     82

May-13

   240th Street   1661 240th St.   LA - South Bay     100,851      $ 5.0        39     45

Jul-13

   Orion   8101-8117 Orion Ave.   LA - San Fern. Valley     48,388      $ 5.6        90     97

Aug-13

   Tarzana   18310-18330 Oxnard St.   LA - San Fern. Valley     75,288      $ 8.4        81     88

Nov-13

   Yorba Linda Business Park   22343-22349 La Palma Ave.   OC - North     115,760      $ 12.7        79     N/A   

Nov-13

   The Park   1100-1170 Gilbert St., 2353-2373 La Palma Ave.   OC - North     120,313      $ 10.6        85     N/A   

Dec-13

   Bonita Thompson   280 Bonita Ave., 2743 Thompson Creek Rd.   LA - San Gabriel     365,859      $ 27.2        100     N/A   

Dec-13

   Madera (1)   2900-2950 N. Madera Road   LA - San Fern. Valley     199,370      $ 15.8        68     N/A   

Dec-13

   Vanowen   10635 W. Vanowen St.   LA - San Fern. Valley     31,037      $ 3.4        100     N/A   

 

(1) Madera acquisition includes a 136,065 square foot industrial building which is 100% occupied, and an unoccupied 63,035 square foot office building.

Dispositions:

 

Date

  

Property

  

Address

  

Submarket

  

SF

    

Sale Price

($ in MM)

    

Reason for Selling

Jan-13

   Bonnie Beach    4578 Worth Street    LA - Central      79,370       $ 4.1       User sale

Apr-13

   Williams    1950 East Williams Drive    Ventura County      161,682       $ 8.5       Marketed sale

May-13

   Glenoaks    9027 Glenoaks Blvd.    LA - San Fern. Valley      14,700       $ 1.7       User sale

May-13

   Interstate    2441, 2507, 2515 W. Erie Dr., & 2929 S. Fair Lane    Arizona      83,385       $ 5.0       Non-strategic location

Jun-13

   Knollwood    1255 Knollwood Circle    OC - North      25,162       $ 2.8       User sale

 

 

Fourth Quarter 2013

Supplemental Financial Reporting Package

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Definitions / Discussion of Non-GAAP Financial Measures

 

 

Adjusted Funds from Operations (AFFO): We calculate adjusted funds from operations, or AFFO, by adding to or subtracting from FFO (i) non-cash operating revenues and expenses, (ii) capitalized operating expenditures such as leasing payroll, (iii) recurring capital expenditures required to maintain and re-tenant our properties, (iv) regular principal payments required to service our debt, and (v) 2nd generation tenant improvements and leasing commissions. Management uses AFFO as a supplemental performance measure because it provides a performance measure that, when compared year over year, captures trends in portfolio operating results. We also believe that, as a widely recognized measure of the performance of REITs, AFFO will be used by investors as a basis to assess our performance in comparison to other REITs.

However, because AFFO may exclude certain non-recurring capital expenditures and leasing costs, the utility of AFFO as a measure of our performance is limited. Additionally, other Equity REITs may not calculate AFFO using the method we do. As a result, our AFFO may not be comparable to such other Equity REITs’ AFFO. AFFO should be considered only as a supplement to cash flow from operating activities (as computed in accordance with GAAP) as a measure of our performance.

Annualized Base Rent: Calculated for each lease as the latest monthly contracted base rent per the terms of such lease multiplied by 12. Excludes billboard and antenna revenue and rent abatements.

Capital Expenditures, Non-recurring: Expenditures made in respect of a property for improvement to the appearance of such property or any other major upgrade or renovation of such property, and further includes capital expenditures for seismic upgrades, or capital expenditures for deferred maintenance existing at the time such property was acquired.

Capital Expenditures, Recurring: Expenditures made in respect of a property for maintenance of such property and replacement of items due to ordinary wear and tear including, but not limited to, expenditures made for maintenance or replacement of parking lot, roofing materials, mechanical systems, HVAC systems and other structural systems. Recurring capital expenditures shall not include any of the following: (a) improvements to the appearance of such property or any other major upgrade or renovation of such property not necessary for proper maintenance or marketability of such property; (b) capital expenditures for seismic upgrades; or (c) capital expenditures for deferred maintenance for such property existing at the time such property was acquired.

Capital Expenditures, First Generation: Capital expenditures for newly acquired space, newly developed or redeveloped space, or change in use.

Cash NOI: Cash basis NOI is a non-GAAP measure, which we calculate by adding or subtracting from NOI i) fair value lease revenue and ii) straight-line rent adjustment. We use Cash NOI, together with NOI, as a supplemental performance measure. Cash NOI should not be used as a measure of our liquidity, nor is it indicative of funds available to fund our cash needs. Cash NOI should not be used as a substitute for cash flow from operating activities computed in accordance with GAAP. We use Cash NOI to help evaluate the performance of the Company as a whole, as well as the performance of our Same Property Portfolio.

EBITDA and Adjusted EBITDA: We believe that EBITDA is helpful to investors as a supplemental measure of our operating performance as a real estate company because it is a direct measure of the actual operating results of our industrial properties. We also use this measure in ratios to compare our performance to that of our industry peers. In addition, we believe EBITDA is frequently used by securities analysts, investors and other interested parties in the evaluation of Equity REITs. However, because EBITDA is calculated before recurring cash charges including interest expense and income taxes, and is not adjusted for capital expenditures or other recurring cash requirements of our business, its utility as a measure of our liquidity is limited. Accordingly, EBITDA should not be considered an alternative to cash flow from operating activities (as computed in accordance with GAAP) as a measure of our liquidity. EBITDA should not be considered as an alternative to net income or loss as an indicator of our operating performance. Other Equity REITs may calculate EBITDA differently than we do; accordingly, our EBITDA may not be comparable to such other Equity REITs’ EBITDA. Adjusted EBITDA includes add backs of non-cash stock based compensaiton expense, loss on extinguishment of debt, non-recurring legal fees and the pro-forma effects of acquisitions and assets classified as held for sale.

Investment to Date and Total: Reflects the total purchase price for a property plus additional or planned tangible investment subsequent to acquisition.

Funds from Operations (FFO): We calculate FFO before non-controlling interest 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, real estate related depreciation and amortization (excluding amortization of deferred financing costs) and after adjustments for unconsolidated partnerships and joint ventures. Management uses FFO as a supplemental performance measure because, in excluding real estate related depreciation and amortization, gains and losses from property dispositions, other than temporary impairments of unconsolidated real estate entities, and impairment on our investment in real estate, it provides a performance measure that, when compared year over year, captures trends in occupancy rates, rental rates and operating costs. We also believe that, as a widely recognized measure of performance used by other REITs, FFO may be used by investors as a basis to compare our operating performance with that of other REITs. However, because FFO excludes depreciation and amortization and captures neither the changes in the value of our properties that result from use or market conditions nor the level of capital expenditures and leasing commissions necessary to maintain the operating performance of our properties, all of which have real economic effects and could materially impact our results from operations, the utility of FFO as a measure of our performance is limited. Other equity REITs may not calculate or interpret FFO in accordance with the NAREIT definition as we do, and, accordingly, our FFO may not be comparable to such other REITs’ FFO. FFO should not be used as a measure of our liquidity, and is not indicative of funds available for our cash needs, including our ability to pay dividends.

 

 

 

Fourth Quarter 2013

Supplemental Financial Reporting Package

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Definitions / Discussion of Non-GAAP Financial Measures

 

 

Properties Under Repositioning: Typically defined as properties were space is held vacant in order to implement capital improvements that improve the market rentability of that space. Considered completed once investment is fully or nearly fully deployed.

NOI: Includes the revenue and expense directly attributable to our real estate properties calculated in accordance with GAAP. Calculated as total revenue from real estate operations including i) rental revenues ii) tenant reimbursements, and iii) other income less property expenses and other 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 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.

Rent Change - Cash: Compares the first month cash rent excluding any abatement on new leases to the last month rent for the most recent expiring lease. Data included for comparable leases only. Comparable leases generally exclude properties under repositioning, short-term leases, and space that has been vacant for over one year.

Rent Change - GAAP: Compares GAAP rent, which straightlines rental rate increases and abatement, on new leases to GAAP rent for the most recent expiring lease. Data included for comparable leases only. Comparable leases generally exclude properties under repositioning, short-term leases, and space that has been vacant for over one year.

Same Property Portfolio: Determined independently for each period presented. Comparable properties must have been owned for the entire current and prior periods presented. The company’s computation of same property performance may not be comparable to other real estate companies.

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

 

 

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Supplemental Financial Reporting Package

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EX-99.2

Exhibit 99.2

LOGO

REXFORD INDUSTRIAL ANNOUNCES FOURTH QUARTER 2013 FINANCIAL RESULTS

– Reports FFO of $0.17 Per Diluted Share –

– Same Store Cash NOI Increases 15% –

– Completes Acquisitions of $186.4 Million Since the Start of 2013 –

Los Angeles, California – March 13, 2014 – Rexford Industrial Realty, Inc. (the “Company” or “Rexford Industrial”) (NYSE: REXR), a real estate investment trust (“REIT”) that specializes in acquiring, owning and operating industrial properties located in Southern California infill markets, today announced financial results for the fourth quarter and full year 2013.

Fourth Quarter and Full Year 2013 Financial and Operational Highlights:

 

    Reported Funds From Operations (FFO) of $0.17 per share for the 3 months ended December 31, 2013.

 

    As previously reported, same property portfolio occupancy increased 3.0 percentage points to 89.3% compared to the fourth quarter of 2012.

 

    Achieved same store NOI growth of 7% in the fourth quarter 2013 compared to the prior year period, driven by a 10% increase in same store revenue, more than offsetting a 17% increase in same store expenses. Same store cash NOI increased 15% compared to the fourth quarter 2012.

 

    As previously reported, signed new and renewal leases totaling approximately 386,000 square feet, resulting in approximately 77,000 square feet of positive net absorption and increased GAAP leasing spreads of 12.9% and cash leasing spreads of 3.5% during the fourth quarter of 2013.

 

    In the fourth quarter, acquired six properties totaling approximately 832,000 square feet for an aggregate cost of $69.7 million. Subsequent to year end, acquired four properties totaling approximately 352,000 square feet for an aggregate cost of $29.1 million.

“Our fourth quarter 2013 financial results reflect the strong operating and leasing metrics which we pre-released in February. The execution of our operating and leasing strategies combined with the steady improvement in our core Southern California infill industrial markets drive these positive results,” stated Michael Frankel and Howard Schwimmer, Rexford Industrial’s Co-Chief Executive Officers. “In addition, with our initial public offering completed last July, we were well-positioned to accelerate our investment pace, acquiring six properties in the fourth quarter for $69.7 million. This activity has continued into early 2014, with another 4 acquisitions closed, for a total cost of $29.1 million. In the eight months since our initial public offering, we have acquired 1.3 million square feet of industrial property, representing a 24.6% increase in our owned portfolio and we continue to review and pursue a substantial pipeline of potential investment opportunities from a variety of sources.”


Financial Results:

The Company reported a net loss of $0.88 million (or a net loss of $1.0 million before noncontrolling interests), or negative $0.04 per diluted share, for the three months ended December 31, 2013. In comparison, Rexford Industrial’s predecessor entities reported a net loss of $1.53 million (or a net loss of $1.68 million before noncontrolling interests) for the three months ended December 31, 2012

For the twelve months ending December 31, 2013, the Company reported a net loss of $4.9 million (or a net loss of $5.0 million before noncontrolling interests), compared to a net loss of $4.9 million (or a net loss of $9.0 million before noncontrolling interests) for the twelve months ended December 31, 2012. The net loss in 2013 included approximately $4.0 million of loss on extinguishment of debt associated with pay down of mortgage debt at the consummation of the IPO, $5.0 million of gains related to the disposition of five of the Company’s properties, and $1.4 million of gains associated with early repayment of a note receivable. Financial results for periods ending on or prior to July 24, 2013 reflect the results of Rexford Industrial’s predecessor entities.

The Company reported funds from operations (FFO) of $4.3 million, or $0.17 per diluted share, for the three months ended December 31, 2013. The Company’s share of Funds from Operations (FFO) for the period from July 24, 2013 through December 31, 2013 was $7.3 million, or $0.29 per diluted share.

Operating Results:

For the three months ended December 31, 2013, the Company’s same property portfolio produced a 7.1% increase in NOI compared to the fourth quarter of 2012, driven by a 9.7% increase in same property portfolio revenue, more than offsetting a 16.7% increase in same property portfolio expenses. Cash NOI on the Company’s same property portfolio was up 14.5% compared to the fourth quarter of 2012.

For the full year 2013, NOI on the Company’s same property portfolio increased 12.6%, driven by a 10.6% increase in same property portfolio revenue offsetting a 5.8% increase in same property portfolio expenses, compared to 2012. Cash NOI on the Company’s same property portfolio was up 15.8% in 2013, compared to 2012.

In the fourth quarter, the Company signed 91 new and renewal leases in its consolidated portfolio, totaling approximately 386,000 square feet. Average rental rates on comparable new and renewal leases were up 12.9% on a GAAP basis, and up 3.5% on a cash basis. The Company signed 38 new leases for approximately 142,000 square feet, with GAAP rents up 15.2%, compared to the prior in place leases. The Company signed 53 renewal leases for approximately 244,000 square feet, with GAAP rents up 12.4% compared to the prior in place leases. For the 38 new leases, cash rents were up 4.5%, and for the 53 renewal leases, cash rents were up 3.3%, compared to the ending cash rents for the prior leases.

The Company has included in a supplemental information package the results and operating statistics that reflect the activities of the Company for the three months ended December 31, 2013. See below for information regarding the supplemental information package.

Transaction Activity:

In November, the Company acquired Yorba Linda Business Park, a four-building Orange County, multi-tenant industrial park totaling 115,760 square feet, in Yorba Linda, California. The property was acquired for $12.7 million, or $109.71 per square foot, and was 79% occupied at the time of purchase.


In November, the Company acquired The Park, an Orange County industrial business park located in Anaheim, California, for $10.6 million, or $88.10 per square foot. The Park is located adjacent to the Interstate 5 Freeway in Anaheim, California, and consists of six multi-tenant buildings totaling 120,313 square feet. The buildings are situated on 6.9 acres of land, and were 85% occupied at the time of acquisition.

In December, the Company acquired Bonita Thompson, an industrial property in Pomona, California, for $27.2 million, or $74.34 per square foot. Located in the San Gabriel Valley sub-market, Bonita Thompson is in close proximity to three major highways, and consists of two 24’ clear single-tenant, rail-served distribution buildings, with 52 dock-high loading positions, totaling 365,859 square feet. The divisible buildings are situated on 16.3 acres of land, and are currently 100% occupied.

In December, the Company acquired a 199,370 square foot industrial and office property located in Simi Valley, California, for $15.8 million, or $79 per square foot. The project consists of a 30’ clear, ESFR single-tenant industrial building with 136,065 square feet and a two-story 63,305 square foot Class A office building, situated on 16.3 acres of land. The industrial building is 100% leased to Kingsbridge International, Inc. for ten years. The office building, which is situated on a separate parcel, is currently vacant and is currently in escrow for sale.

In December, the Company acquired Vanowen, a 31,037 square foot industrial building located in the San Fernando Valley, for $3.4 million, or $109.55 per square foot, adjacent to the Burbank (Bob Hope) Airport. The property is 100% leased to four tenants.

Subsequent to year-end and through February 24, the Company acquired four additional properties totaling approximately 352,000 square feet for an aggregate cost of $29.1 million, detailed below.

In January, the Company acquired Rosecrans, a 72,000 square foot industrial building located in Paramount, California, for $5.0 million, or $69.44 per square foot. The seller is consolidating into half of the building under a five year lease-back, enabling the Company to execute its value-add improvement and leasing plan for the remainder of the property.

In January, the Company acquired Oxnard Street, located in Van Nuys, California, for $8.9 million, or $114 per square foot. The property consists of a six-building multi-tenant business park totaling 78,000 square feet. The buildings are situated on 3.25 acres of land and are currently 98% occupied. The Company plans to upgrade the property through overall aesthetic improvements and operational enhancements to facilitate accelerated rent growth.

In February, the Company acquired Ontario Airport Business Park, an industrial property located in Ontario, California, for $8.6 million, or $75.69 per square foot. The project consists of a five-building multi-tenant business park totaling 113,612 square feet and is currently 95.4% occupied.

In February, the Company acquired an 88,330 square foot, six-building industrial complex located at 1500-1510 W. 228th Street, Los Angeles, California, for $6.6 million, or $74.72 per square foot. The complex is located within the South Bay submarket, and is currently 98.0% occupied.

Also, in January, the Company sold Kaiser, a 124,997 square foot industrial property in San Diego, California, for $10.1 million. Proceeds from the sale of Kaiser were reinvested into Ontario Airport Business Park and 1500-1510 W. 228th Street acquisitions in a tax-deferred 1031 exchange.


Subsequent Events:

In March, the Company announced that Peter Schwab was elected as an independent director to the Company’s Board of Directors.

On March 12, 2014, the Board of Directors declared a dividend of $0.12 per share for the first quarter 2014, payable in cash on April 15, 2014 to stockholders and unitholders of record on March 31, 2014.

Earnings Release, Investor Conference Webcast and Conference Call:

The company will release its fourth quarter and full year 2013 results after the market closes on Thursday, March 13, 2014. The Company will host a webcast and conference call that same day at 5:00 p.m. Eastern time to review fourth quarter results and discuss recent events. The live webcast will be available on the Company’s investor relations website at www.ir.rexfordindustrial.com. To participate in the call, please dial 877-407-0789 (domestic) or 201-689-8562 (international). A replay of the conference call will be available through March 27, 2014, by dialing 877-870-5176 (domestic) or 858-384-5517 (international) and entering the pass code 13576279.

About Rexford Industrial:

Rexford Industrial is a real estate investment trust that specializes in acquiring, owning and operating industrial properties in Southern California infill markets. The Company owns interests in 70 properties with approximately 7.7 million rentable square feet and manages an additional 20 properties with approximately 1.2 million rentable square feet.

For additional information, visit www.rexfordindustrial.com.

Forward Looking Statements:

This press release may contain forward-looking statements within the meaning of the federal securities laws, which are based on current expectations, forecasts and assumptions that involve risks and uncertainties that could cause actual outcomes and results to differ materially. Forward-looking statements relate to expectations, beliefs, projections, future plans and strategies, anticipated events or trends and similar expressions concerning matters that are not historical facts. In some cases, you can identify forward-looking statements by the use of forward-looking terminology such as “may,” “will,” “should,” “expects,” “intends,” “plans,” “anticipates,” “believes,” “estimates,” “predicts,” or “potential” or the negative of these words and phrases or similar words or phrases which are predictions of or indicate future events or trends and which do not relate solely to historical matters. While forward-looking statements reflect the Company’s good faith beliefs, assumptions and expectations, they are not guarantees of future performance. For a further discussion of these and other factors that could cause the Company’s future results to differ materially from any forward-looking statements, see the section entitled “Cautionary Note Regarding Forward-Looking Statements” in the Company’s prospectus for its July 2013 IPO and other risks described in documents subsequently filed by the Company from time to time with the Securities and Exchange Commission (in particular under the caption “Risk Factors” in our periodic filings). 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.


Contact:

Investor Relations:

Stephen Swett or Rodny Nacier

424 256 2153 ext 401

investorrelations@rexfordindustrial.com


REXFORD INDUSTRIAL REALTY, INC. AND

REXFORD INDUSTRIAL REALTY, INC. PREDECESSOR

CONSOLIDATED AND COMBINED BALANCE SHEETS

 

     Rexford Industrial
Realty, Inc.
    Rexford Industrial
Realty, Inc.
Predecessor
 
     December 31, 2013
(Unaudited)
    December 31, 2012  

ASSETS

    

Land

   $ 219,301,000      $ 151,057,000   

Buildings and improvements

     314,064,000        205,473,000   

Tenant improvements

     13,267,000        12,260,000   

Furniture, fixtures, and equipment

     188,000        188,000   
  

 

 

   

 

 

 

Total real estate held for investment

     546,820,000        368,978,000   

Accumulated depreciation

     (58,978,000     (55,370,000
  

 

 

   

 

 

 

Investments in real estate, net

     487,842,000        313,608,000   

Cash and cash equivalents

     8,997,000        43,499,000   

Restricted cash

     325,000        1,882,000   

Notes receivable

     13,139,000        11,911,000   

Rents and other receivables, net

     929,000        559,000   

Deferred rent receivable

     3,642,000        3,727,000   

Deferred leasing costs and in-place lease intangibles, net

     14,189,000        5,003,000   

Deferred loan costs, net

     1,597,000        1,382,000   

Acquired above-market leases, net

     1,597,000        179,000   

Acquired indefinite-lived intangible

     5,271,000        —     

Other assets

     2,334,000        1,868,000   

Acquisition related deposits

     1,510,000        260,000   

Investment in unconsolidated real estate entities

     5,687,000        12,697,000   

Assets associated with real estate held for sale

     7,616,000        23,921,000   
  

 

 

   

 

 

 

Total Assets

   $ 554,675,000      $ 420,496,000   
  

 

 

   

 

 

 

LIABILITIES & EQUITY

    

Liabilities

    

Notes payable

   $ 192,491,000      $ 295,419,000   

Accounts payable, accrued expenses and other liabilities

     6,024,000        2,575,000   

Due to members

     —          1,221,000   

Interest rate contracts

     —          49,000   

Dividends payable

     5,368,000        —     

Acquired lease intangible liabilities, net

     1,160,000        39,000   

Tenant security deposits

     6,155,000        3,738,000   

Prepaid rents

     1,448,000        335,000   

Liabilities associated with real estate held for sale

     260,000        20,872,000   
  

 

 

   

 

 

 

Total Liabilities

     212,906,000        324,248,000   

Equity

    

Rexford Industrial Realty, Inc. stockholders’ equity and Predecessor equity Common Stock, $0.01 par value 490,000,000 authorized and 25,559,886 outstanding at December 31, 2013

     255,000        —     

Additional paid in capital

     311,936,000        —     

Accumulated deficit

     (5,993,000     —     
  

 

 

   

 

 

 

Total stockholders’ equity

     306,198,000        —     
  

 

 

   

 

 

 

Predecessor equity

     —          (12,691,000

Noncontrolling interests

     35,571,000        108,939,000   
  

 

 

   

 

 

 

Total Equity

     341,769,000        96,248,000   
  

 

 

   

 

 

 

Total Liabilities and Equity

   $ 554,675,000      $ 420,496,000   
  

 

 

   

 

 

 

 


REXFORD INDUSTRIAL REALTY, INC. AND

REXFORD INDUSTRIAL REALTY, INC. PREDECESSOR

CONSOLIDATED AND COMBINED STATEMENTS OF OPERATION (Unaudited)

 

     Rexford Industrial
Realty, Inc.
    Rexford Industrial Realty, Inc. Predecessor  
     Period from
July 24, 2013 to
December 31, 2013
    Period from
January 1, 2013 to
July 23, 2013
    Year
Ended
December 31, 2012
    Year
Ended
December 31, 2011
 

RENTAL REVENUES

        

Rental revenues

   $ 18,449,000      $ 19,206,000      $ 27,842,000      $ 23,311,000   

Tenant reimbursements

     2,161,000        2,212,000        2,952,000        2,387,000   

Management, leasing and development services

     534,000        444,000        518,000        316,000   

Other income

     93,000        187,000        105,000        147,000   
  

 

 

   

 

 

   

 

 

   

 

 

 

TOTAL RENTAL REVENUES

     21,237,000        22,049,000        31,417,000        26,161,000   

Interest income

     381,000        698,000        1,577,000        1,577,000   
  

 

 

   

 

 

   

 

 

   

 

 

 

TOTAL REVENUES

     21,618,000        22,747,000        32,994,000        27,738,000   
  

 

 

   

 

 

   

 

 

   

 

 

 

OPERATING EXPENSES

        

Property expenses

     5,237,000        5,039,000        7,950,000        6,643,000   

General and administrative

     5,327,000        4,420,000        5,146,000        3,729,000   

Depreciation and amortization

     8,686,000        7,022,000        11,921,000        9,667,000   

Other property expenses

     1,167,000        885,000        1,300,000        1,015,000   
  

 

 

   

 

 

   

 

 

   

 

 

 

TOTAL OPERATING EXPENSES

     20,417,000        17,366,000        26,317,000        21,054,000   

OTHER (INCOME) EXPENSE

        

Acquisition expenses

     540,000        724,000        599,000        1,022,000   

Interest expense

     1,763,000        9,395,000        16,875,000        17,466,000   

Gain on mark-to-market of interest rate swaps

     —          (49,000     (2,361,000     (4,185,000
  

 

 

   

 

 

   

 

 

   

 

 

 

TOTAL OTHER EXPENSE

     2,303,000        10,070,000        15,113,000        14,303,000   

TOTAL EXPENSES

     22,720,000        27,436,000        41,430,000        35,357,000   
  

 

 

   

 

 

   

 

 

   

 

 

 

Equity in income (loss) from unconsolidated real estate entities

     92,000        (915,000     122,000        185,000   

Gain from early repayment of note receivable

     —          1,365,000        —          —     

Loss on extinguishment of debt

     —          (3,955,000     —          —     
  

 

 

   

 

 

   

 

 

   

 

 

 

NET LOSS FROM CONTINUING OPERATIONS

     (1,010,000     (8,194,000     (8,314,000     (7,434,000
  

 

 

   

 

 

   

 

 

   

 

 

 

DISCONTINUED OPERATIONS

        

Income (loss) from discontinued operations before gain (loss) on sale of real estate and extinguishment of debt

     299,000        (809,000     (698,000     (1,406,000

Loss on extinguishment of debt

     —          (267,000     —          —     

Gain on sale of real estate

     —          4,989,000        55,000        2,503,000   
  

 

 

   

 

 

   

 

 

   

 

 

 

INCOME (LOSS) FROM DISCONTINUED OPERATIONS

     299,000        3,913,000        (643,000     1,097,000   
  

 

 

   

 

 

   

 

 

   

 

 

 

NET LOSS

     (711,000     (4,281,000     (8,957,000     (6,337,000
  

 

 

   

 

 

   

 

 

   

 

 

 

Net loss attributable to noncontrolling interests

     86,000        15,000        4,066,000        2,585,000   
  

 

 

   

 

 

   

 

 

   

 

 

 

NET LOSS ATTRIBUTABLE TO REXFORD INDUSTRIAL REALTY, INC.

   $ (625,000   $ (4,266,000   $ (4,891,000   $ (3,752,000
  

 

 

   

 

 

   

 

 

   

 

 

 

Net loss available to common stockholders per share - basic and diluted

   $ (0.03      
  

 

 

       


REXFORD INDUSTRIAL REALTY, INC. AND

REXFORD INDUSTRIAL REALTY, INC. PREDECESSOR

Same Property Portfolio Statement of Operations and NOI Reconciliation (unaudited)

Same Property Portfolio Statement of Operations:

     Three Months Ending     Year Ending  
     December 31           December 31        
     2013(1)     2012     Change     2013(1)     2012     Change  

Rental Revenues

            

Rental revenues

   $ 7,901      $ 7,263        9   $ 29,896      $ 27,268        10

Tenant reimbursements

     881        771        14     3,275        2,843        15

Other operating revenues

     33        3        1000     231        79        192
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total rental revenues

     8,815        8,037        10     33,402        30,190        11

Interest income

     190        252        25     1,016        1,004        1
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total Revenues

     9,005        8,289        9     34,418        31,194        10

Operating Expenses

            

Property expenses

   $ 2,532      $ 2,170        17   $ 9,283      $ 8,777        6

Depreciation and amortization

     3,695        2,967        25     11,313        12,129        (7 %) 
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total Operating Expenses

     6,227        5,137        21     20,596        20,906        (2 %) 

Other (Income) Expense

            

Interest expense

     60        4,299        (99 %)      9,075        17,339        (48 %) 
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total Other Expense

     60        4,299        (99 %)      9,075        17,339        (48 %) 
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total Expenses

     6,287        9,436        (33 %)      29,671        38,245        (22 %) 

Loss on extinguishment of debt

     —          —            (3,382     —       
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net Income (Loss)

   $ 2,718      $ (1,147     337   $ 1,365      $ (7,051     119
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Same Property Portfolio NOI Reconciliation:

            
     Three Months Ending     Year Ending  
     December 31           December 31        
     2013(1)     2012     Change     2013(1)     2012     Change  

NOI

            

Net Income (Loss)

   $ 2,718      $ (1,147     $ 1,365      $ (7,051  

Add:

            

Interest expense

     60        4,299          9,075        17,339     

Depreciation and amortization

     3,695        2,967          11,313        12,129     

Deduct:

            

Loss on extinguishment of debt

     —          —            (3,382     —       

Interest income

     190        252          1,016        1,004     
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

NOI

   $ 6,283      $ 5,867        7   $ 24,119      $ 21,413        13
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Straight-line rents

     (209     (579       (158     (802  

Amort. above/below market leases

     24        36          77        142     
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Cash NOI

   $ 6,098      $ 5,324        15   $ 24,038      $ 20,753        16
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

 

(1) Includes Predecessor and Rexford Industrial Realty, Inc. results.


REXFORD INDUSTRIAL REALTY, INC. AND

REXFORD INDUSTRIAL REALTY, INC. PREDECESSOR

NOI Reconciliation, Portfolio Detail, and Occupancy (unaudited)

Same Property Portfolio NOI Reconciliation Continued:

 

     Three Months Ending     Year Ending  
     December 31           December 31        
     2013 (1)     2012     Change     2013 (1)     2012     Change  

Rental revenues

   $ 7,901      $ 7,263        9   $ 29,896      $ 27,268        10

Tenant reimbursements

     881        771        14     3,275        2,843        15

Other operating revenues

     33        3        1000     231        79        192
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total rental revenue

     8,815        8,037        10     33,402        30,190        11

Property expenses

     2,085        1,853        13     7,884        7,664        3

Other property expenses

     447        317        41     1,399        1,113        26
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total property expense

     2,532        2,170        17     9,283        8,777        6
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

NOI

   $ 6,283      $ 5,867        7   $ 24,119      $ 21,413        13
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Straight-line rents

     (209     (579     (64 %)      (158     (802     (80 %) 

Amort. above/below market leases

     24        36        (34 %)      77        142        (46 %) 
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Cash NOI

   $ 6,098      $ 5,324        15   $ 24,038      $ 20,573        16
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

 

     Quarterly Same Property Portfolio Detail     Annual Same Property Portfolio Detail  
     # of
Properties
    Square
Feet
    Wtd Avg.
Occupancy
    # of
Properties
    Square
Feet
    Wtd Avg.
Occupancy
 
                 2013     2012                 2013     2012  

Period ended Sept. 30, 2013 and 2012

     49        4,320,532        87.3     81.6     47        4,174,679        87.1     81.2

Additions (deductions)

     (1     (124,944     100.0     5.1     (1     (124,944     100.0     5.1
  

 

 

   

 

 

       

 

 

   

 

 

     

Period ended Dec. 31, 2013 and 2012

     48        4,195,588        89.3     86.3     46        4,049,735        89.1     86.1

Same Property Portfolio Occupancy:

 

     December 31, 2013    December 31, 2012    Change (ppt)

Occupancy:

                 

Los Angeles County

   89.3%    89.5%    -0.2%

Orange County

   95.7%    87.6%    8.1%

San Bernardino County

   88.4%    84.5%    3.9%

Ventura County

   100.0%    100.0%    0.0%

San Diego County

   81.6%    72.2%    9.4%

Other

   80.6%    74.9%    5.7%
  

 

  

 

  

 

Total/Weighted Average

   89.3%    86.3%    3.0%
  

 

  

 

  

 

 

(1) Includes Predecessor and Rexford Industrial Realty, Inc. results