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):

February 26, 2015

 

REXFORD INDUSTRIAL REALTY, INC.

(Exact name of registrant as specified in its charter)

 

 

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.):

 

 

 

 

 

 

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ITEM 2.02 RESULTS OF OPERATIONS AND FINANCIAL CONDITION

On February 26, 2015, Rexford Industrial Realty, Inc. (“Rexford Industrial”) issued a press release announcing its earnings for the quarter ended December 31, 2014 and distributed certain supplemental financial information. On February 26, 2015, 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, 2014 and distributed certain supplemental information.  On February 26, 2015, 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 9.01 FINANCIAL STATEMENTS AND EXHIBITS

(d)Exhibits.

 

 

 

 

 

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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.

 

 

 

 

 

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EXHIBIT INDEX

 

 

 

Exhibit 99.1

 

REXFORD INDUSTRIAL announces Fourth QUARTER and FUll Year 2014 financial RESULTS

 

– Reports Recurring FFO of $0.21 Per Diluted Share for Fourth Quarter, Up 11% From Prior Year Period –

– Consolidated NOI Up 67% Compared to Fourth Quarter 2013 –

– Stabilized Same Property Portfolio Occupancy At 93.7%, Up 400 Basis Points Year-Over-Year –

– Acquires Nearly $400 Million Of Property During 2014 –

 

 

Los Angeles, California – February 26, 2015 – 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 2014.

 

Fourth Quarter and Full Year 2014 Financial and Operational Highlights:

 

 

“Our fourth quarter 2014 financial results, including leasing metrics and portfolio performance, reflect the strong fundamentals that are driving our core Southern California infill industrial markets, as well as the hard work and dedication of the entire Rexford team,” stated Michael Frankel and Howard Schwimmer, Rexford Industrial’s Co-Chief Executive Officers. “In 2014, we successfully acquired nearly $400 million of industrial properties, continuing to demonstrate the tremendous opportunity we have in executing our growth strategies, with many of these

 

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investments providing solid initial returns with incremental upside from leasing, re-tenanting, or redevelopment.  With our recently completed equity offering in January, we have ample financial capacity and a strong balance sheet that will allow us to continue to pursue our active pipeline of attractive growth opportunities in 2015 and beyond.”

 

Financial Results:

 

Financial results for the three months ended December 31, 2014 and 2013, the year ended December 31, 2014, and for the period from July 24, 2013, through December 31, 2013, contain the consolidated results of the Company. Financial results for the period from January 1, 2013, through July 23, 2013, contain the combined results of Rexford Industrial’s predecessor entities. For comparative purposes, we have combined the results of the Company and Rexford Industrial’s predecessor entities.

 

The Company reported net income of $0.1 million (income of $0.1 million before non-controlling interests), for the three months ended December 31, 2014. This compares to net loss of $0.9 million (net loss of $1.0 million before non-controlling interests) for the three months ending December 31, 2013.

 

The Company reported net income of $0.9 million (income of $1.0 million before non-controlling interests) for the year ended December 31, 2014. In comparison, the Company and Rexford Industrial’s predecessor entities reported a loss of $4.9 million (loss of $5.0 million before non-controlling interests) for the year ended December 31, 2013.

 

The Company reported Company share of Recurring FFO of $9.0 million, or $0.21 per diluted share of common stock, for the three months ended December 31, 2014. This compares to Company share of Recurring FFO of $4.9 million, or $0.19 per diluted share of common stock, for the three months ending December 31, 2013. Including non-recurring expenses and acquisition expenses of $0.8 million incurred during the fourth quarter, Company share of FFO was $8.2 million, or $0.19 per diluted share of common stock.

 

For the year ended December 31, 2014, the Company reported Company share of Recurring FFO of $28.0 million, or $0.89 per diluted share of common stock. Including non-recurring expenses and acquisition expenses of $2.6 million incurred during 2014, Company share of FFO was $25.6 million, or $0.81 per diluted share of common stock.

 

 

Operating Results:

 

For the three months ended December 31, 2014, the Company’s Same Property Portfolio NOI increased 10.7% compared to the fourth quarter of 2013, driven by an 8.8% increase in Same Property Portfolio rental revenue, while Same Property Portfolio expenses increased by only 4.1%. Same Property Portfolio Cash NOI increased 9.7% compared to the fourth quarter 2013. Adjusting for some one-time charges which benefited Same Property Portfolio NOI during the quarter, Same Property Portfolio revenue growth would have been 5.6%, and Same Property Portfolio NOI growth would have been 6.2%.

 

In the fourth quarter, the Company signed 99 new and renewal leases in its consolidated portfolio, totaling 430,495 square feet. Average rental rates on comparable new and renewal leases were up 11.8% on a GAAP basis and up 1.9% on a cash basis. The Company signed 43 new leases for 201,269 square feet, with GAAP rents up 10.7% compared to the prior in place leases. The Company signed 56 renewal leases for 229,226 square feet, with GAAP rents up 12.4% compared to the prior in place leases. For the 43 new leases, cash rents

 

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were down 0.7%, and for the 56 renewal leases, cash rents were up 3.6%, compared to the ending cash rents for the prior leases.

 

The Company has included in a supplemental information package detailing the results and operating statistics that reflect the activities of the Company for the three months ended December 31, 2014. See below for information regarding the supplemental information package.

 

 

Transaction Activity:

 

In the fourth quarter, the Company acquired 12 industrial properties totaling approximately 1,196,149 square feet, for an aggregate cost of $136.2 million, as detailed below. All but one of the acquisitions were off-market or lightly marketed sales.

 

In November 2014, the Company acquired 679-691 S Anderson St, a 47,490 square foot, two-story industrial building in downtown Los Angeles for $6.5 million, or approximately $137 per square foot.

 

In November 2014, the Company acquired 7900 Nelson Road, a 203,082 square foot single tenant industrial building in the San Fernando Valley for $24.3 million, or approximately $120 per square foot.

 

In December 2014, the Company acquired two industrial buildings, located at 10509 Business Drive and 13231 Slover Avenue in Fontana containing an aggregate of 240,251 square feet from a single seller for $16.7 million, or approximately $69 per square foot.

 

In December 2014, the Company acquired 240 W. Ivy, a 45,685 square foot industrial building near LAX for approximately $5.9 million, or approximately $129 per square foot.

 

In December 2014, the Company acquired a five-property industrial portfolio in Oxnard, the largest industrial market in Ventura County, containing an aggregate of 408,224 square feet for $38.7 million, or approximately $95 per square foot.

 

In December 2014, the Company acquired a three-building industrial complex located at 11120, 11160 and 11200 Hindry Avenue at LAX, consisting of three multi-tenant industrial buildings, with a total of 63,654 square feet for $11.9 million, or approximately $187 per square foot.

 

In December 2014, the Company acquired 6970-7170 & 7310-7374 Convoy Court, Kearny Mesa in Central San Diego County, consisting of 13 multi-tenant industrial buildings with a total of 187,763 square feet for $32.3 million, or approximately $172 per square foot.

 

Subsequent to the end of the quarter, in January 2015, the Company acquired 12907 Imperial Highway, a 101,080 square foot property in Santa Fe Springs, for $12.2 million, or approximately $120 per square foot and 8902-8940 Activity Road, a 112,500 square foot business park within the Central San Diego submarket for $18.5 million, or approximately $164 per square foot.

 

 

Balance Sheet

 

At December 31, 2014, the Company had $357.1 million of debt outstanding, with an average interest rate of 1.95% and an average term-to-maturity of 3.6 years. Approximately $13.3 million of debt was fixed-rate with an

 

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average interest rate of 5.10% and an average term-to-maturity of 4.2 years, and the remaining debt was floating-rate, with an average interest rate of LIBOR+1.65% and an average term-to-maturity of 3.5 years.

 

The Company has executed two forward interest rate swaps that will effectively fix the annual rate on the $60 million term loan in the future as follows (i) $30 million at 3.762% from 1/15/15 to 2/15/19 and (ii) $30 million at 3.91% from 7/15/15 to 2/15/19. The Company has executed two forward interest rate swaps that will effectively fix the annual interest rate on the $100 million term loan in the future as follows: (i) $50 million at 1.79% plus the applicable term loan facility margin from 8/14/15 to 12/14/18, and (ii) $50 million at 2.005% plus the applicable term loan facility margin from 2/16/16 to 12/14/18. If the Company’s swaps were effective as of December 31, 2014, its consolidated debt would be 49% fixed and 51% variable.

 

Subsequent to the end of the quarter, in January the Company issued 11.5 million shares of its common stock at $16.00 per share, raising net proceeds of approximately $176.6 million after deducting the underwriting discount. Proceeds from the offering were used to reduce the balance outstanding on the Company’s unsecured revolving credit facility, to fund acquisitions and for general corporate purposes.

 

Dividend

 

On February 26, 2015, the Board of Directors declared a dividend of $0.12 per share for the first quarter of 2015, payable in cash on April 15, 2015 to stockholders and unit holders of record on March 31, 2015.

 

Outlook

 

In 2015, the Company expects: i) same property portfolio NOI growth within a range of 5% to 7%; ii) year-end same property portfolio occupancy within a range of 93% to 94%; iii) G&A of $14.5 to $15.5 million, and; iv) acquisitions of $250 million, or more.

 

 

Earnings Release, Investor Conference Webcast and Conference Call:

 

The Company will host a webcast and conference call on Thursday February 26, 2015 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 December March 26, 2015, by dialing 877-870-5176 (domestic) or 858-384-5517 (international) and entering the pass code 13600268.

 

 

About Rexford Industrial:

Rexford Industrial is a real estate investment trust focused on owning and operating industrial properties in Southern California infill markets. The Company owns interests in 101 properties with approximately 10.5 million rentable square feet and manages an additional 19 properties with approximately 1.17 million rentable square feet.

 

For additional information, visit www.rexfordindustrial.com.

 

Forward Looking Statements:

 

 

 

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This press release may contain forward-looking statements within the meaning of the federal securities laws, which are based on current expectations, forecasts and assumptions that involve risks and uncertainties that could cause actual outcomes and results to differ materially. Forward-looking statements relate to expectations, beliefs, projections, future plans and strategies, anticipated events or trends and similar expressions concerning matters that are not historical facts. In some cases, you can identify forward-looking statements by the use of forward-looking terminology such as "may," "will," "should," "expects," "intends," "plans," "anticipates," "believes," "estimates," "predicts," or "potential" or the negative of these words and phrases or similar words or phrases which are predictions of or indicate future events or trends and which do not relate solely to historical matters. While forward-looking statements reflect the Company's good faith beliefs, assumptions and expectations, they are not guarantees of future performance. For a further discussion of these and other factors that could cause the Company's future results to differ materially from any forward-looking statements, see the reports and other filings by the Company with the U.S. Securities and Exchange Commission, including the Company’s Annual Report on Form 10-K for the year ended December 31, 2013. The Company disclaims any obligation to publicly update or revise any forward-looking statement to reflect changes in underlying assumptions or factors, of new information, data or methods, future events or other changes.

 

 

 

 

Definitions / Discussion of Non-GAAP Financial Measures:

 

Funds from Operations (FFO): We calculate FFO 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. A reconciliation of FFO before noncontrolling interest to net income, the nearest GAAP equivalent, is set forth below.

 

Recurring Funds from Operations (Recurring FFO): We calculate Recurring FFO by adjusting FFO to exclude the effect of non-recurring expenses and acquisition expenses. A reconciliation of FFO to Recurring FFO is set forth below.

 

Net Operating Income (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 (before interest expense, depreciation and amortization). We use NOI as a supplemental performance measure because, in excluding real

 

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

 

Cash NOI: Cash NOI is a non-GAAP measure, which we calculate by adding or subtracting from NOI i) fair value lease revenue and ii) straight-line rent 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. A calculation of Cash NOI for our Same Property Portfolio, as well as a reconciliation of Cash NOI for our Same Property Portfolio to net income for our Same Property Portfolio, is set forth below.

 

Same Property Portfolio: Determined independently for each period presented. Our Same Property Portfolio is a subset of our consolidated portfolio and includes properties that were wholly-owned by us during the entire span of both periods being compared. Therefore, we excluded from our Same Properties Portfolio any properties that were acquired or sold during the period from October 1, 2013 through December 31, 2014. The Company’s computation of same property performance may not be comparable to other REITs.

 

Stabilized Same Property Portfolio: Our Stabilized Same Property Portfolio represents the properties included in our Same Property Portfolio, adjusted to exclude spaces that were under repositioning. As of December 31, 2014, spaces aggregating 88,399 square feet were under repositioning.

 

 

Contact:

Investor Relations:

Stephen Swett or Rodny Nacier

424 256 2153 ext 401

investorrelations@rexfordindustrial.com

 

 

 

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Rexford Industrial Realty, Inc.

Consolidated Balance Sheets (Unaudited)

 

 

 

 

 

 

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Rexford Industrial Realty, Inc. and

Rexford Industrial Realty, Inc. Predecessor

Consolidated and Combined Statements of Operations (Unaudited)

 

 

 

 

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Rexford Industrial Realty, Inc. and

Rexford Industrial Realty, Inc. Predecessor

Same Property Portfolio Statements of Operations and NOI Reconciliation (Unaudited and in thousands)

 

 

 

 

 

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Rexford Industrial Realty, Inc.

Funds From Operations (Unaudited and in thousands)

 

 

 

 

 

 

Exhibit 99.2

Supplemental Financial ReporSupplemental Financial Reporting Package  Fourth Quarter 2014  Rexford Industrial Realty, Inc.  NYSE: REXR  11620 Wilshire Blvd  Suite 1000  Los Angeles, CA 90025  310-966-1680   www.RexfordIndustrial.com ting Package  Fourth Quarter 2014  Rexford Industrial Realty, Inc.  NYSE: REXR  11620 Wilshire Blvd  Suite 1000  Los Angeles, CA 90025  310-966-1680  www.RexfordIndustrial.com  

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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       Net Asset Value Components 25       Fixed Charge Coverage Ratio 26       Definitions / Discussion of Non-GAAP Financial Measures 27 - 28       Disclosures:    "Forward Looking Statements: This supplemental package contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. We caution investors that any forward-looking statements presented herein are based on management’s beliefs and assumptions and information currently available to management. Such statements are subject to risks, uncertainties and assumptions and may be affected by known and unknown risks, trends, uncertainties and factors that are beyond our control. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those anticipated, estimated or projected. These risks and uncertainties include, without limitation: general risks affecting the real estate industry (including, without limitation, the market value of our properties, the inability to enter into or renew leases at favorable rates, dependence on tenants’ financial condition, and competition from other developers, owners and operators of real estate); risks associated with the disruption of credit markets or a global economic slowdown; risks associated with the potential loss of key personnel (most importantly, members of senior management); risks associated with our failure to maintain our status as a Real Estate Investment Trust under the Internal Revenue Code of 1986, as amended; possible adverse changes in tax and environmental laws; litigation, including costs associated with prosecuting or defending pending or threatened claims and any adverse outcomes, and potential liability for uninsured losses and environmental contamination.  For a further discussion of these and other factors that could cause our future results to differ materially from any forward-looking statements, see Item 1A. Risk Factors in our 2013 Annual Report on Form 10-K,  which was filed with the Securities and Exchange Commission (“SEC”) on March 20, 2014. 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 2014   Page 2 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    Ashley Arthur  Director of Property Operations          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    Peter Schwab  Director    Tyler H. Rose  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    Wells Fargo Securities  Brendan Maiorana, CFA    Jeffries LLC  Tayo Okusanya    MLV & Co  Jonathan M. Peterson         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 2014     Page 3 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, 2014  September 30, 2014  June 30, 2014  March 31, 2014 Financial Results:            Total rental revenues    $19,576    $17,755    $14,718    $13,415   Net income (loss)    $145    $(679)   $81    $1,429   Net income (loss) per common share - basic and diluted    $0.00    $(0.02)   $0.00    $0.05   Company share of Recurring FFO    $8,970    $7,724    $6,115    $5,239   Recurring FFO per common share - basic and diluted    $0.21    $0.23    $0.24    $0.21   Company share of FFO    $8,183    $6,984    $5,532    $4,941   FFO per common share - basic and diluted    $0.19    $0.21    $0.22    $0.19   EBITDA    $10,334    $9,456    $7,769    $8,959   Adjusted EBITDA    $12,585    $11,149    $10,325    $7,514   Dividend declared per common share    $0.12    $0.12    $0.12    $0.12             Portfolio Statistics:            Portfolio SF - consolidated   9,829,020  8,633,812  7,908,456  6,533,452  Ending occupancy - consolidated portfolio   90.7%  91.8%  90.5%  90.2%  Pro-forma occupancy including uncommenced leases   90.7%  92.3%  91.1%  91.1%  Leasing spreads - cash(2)   1.9%  3.6%  5.2%  3.6%  Leasing spreads - GAAP(3)   11.8%  10.3%  17.1%  11.5%            Same Property Performance:             Total rental revenue growth   8.8%  3.6%  4.8%  3.4%  Total property expense growth   4.1%  3.9%  -4.1%  15.0%  NOI growth   10.7%  3.5%  8.3%  -1.1%  Cash NOI growth   9.7%  3.8%  3.3%  1.0%  Same Property Portfolio ending occupancy   #REF!  90.4%  89.8%  89.1%  Stabilized Same Property Portfolio ending occupancy   93.7%  91.7%  --  --  Same Property Portfolio occupancy growth (ppt)     2.5%  1.4%  1.4%            Capitalization:            Common stock price at quarter end    $15.71    $13.84    $14.24    $14.18   Common shares issued and outstanding    43,382,425    43,059,742    25,420,381    25,419,418   Total shares and units issued and outstanding at period end (4)    45,705,769    45,705,769    28,429,640    28,428,677   Weighted average shares outstanding - basic and diluted    43,234,602    33,527,183    25,419,757    25,419,418   Total equity market capitalization    $718,038    $632,568    $404,838    $403,119   Total consolidated debt    357,076    269,699    369,679    212,997   Total debt (pro-rata)(5)    357,076    275,924    375,904    219,222   Total combined market capitalization    1,066,508    847,951    771,470    615,997             Ratios:            Net debt (pro-rata) to total combined market capitalization   32.7%  25.4%  47.5%  34.6%  Net debt (pro-rata) to adjusted EBITDA (quarterly results annualized)   6.9x  4.9x  8.9x  7.0x             (1) For a definition and discussion of non-GAAP financial measures, see the definitions section beginning on page 27 of this report.           (2) Excluding the effect of one new 15,040 sqft lease transaction in our San Diego market, the weighted average cash growth for total combined new and renewal leases executed during Q4-14 is 3.3%.           (3) Excluding the effect of one new 15,040 sqft lease transaction in our San Diego market, the weighted average GAAP growth for total combined new and renewal leases executed during Q4-14 is 13.3%.           (4) Includes 2,323,344  OP units held by noncontrolling interests (NCI) and excludes 320,017 unvested shares of restricted stock as of December 31, 2014.  Includes 2,646,027 OP units held by NCI and excludes 198,141 unvested               shares of restricted stock as of September 30, 2014.  Includes 3,009,259 OP units held by NCI and excludes 203,264 and 131,786 unvested shares of restricted stock as of June 30, 2014, and March 31, 2014, respectively.            (5) Includes our 15% share of debt in our Mission Oaks joint venture for the three months ended September 30, 2014, June 30, 2014 and March 31, 2014.  During the three months ended December 31, 2014,  in connection                with the JV's disposition of 3001 & 3175 Mission Oaks Blvd., the JV repaid the $41.5 million loan secured by the properties located at 3001, 3175 and 3233 Mission Oaks Blvd.                     Fourth Quarter 2014          Page 4 Supplemental Financial Reporting Package          

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Consolidated and Combined Balance Sheet                         (in thousands)                  Rexford Industrial Realty, Inc.             12/31/14  9/30/14  6/30/14(1)  3/31/14(1)  12/31/13(1) Assets             Investments in real estate, net     $854,477    $722,689    $651,920    $510,690    $481,673  Cash and cash equivalents     8,606    60,541    9,272    6,344    8,997  Restricted cash     -      307    379    352    325  Notes receivable     13,137    13,138    13,136    13,135    13,139  Rents and other receivables, net     1,812    1,738    1,455    1,238    917  Deferred rent receivable     5,014    4,420    4,197    3,809    3,637  Deferred leasing costs, net     3,608    3,275    2,640    2,294    2,153  Deferred loan costs, net     2,789    2,995    3,197    1,476    1,597  Acquired lease intangible assets, net(2)     28,136    23,558    22,621    13,110    13,508  Indefinite-lived intangible      5,271    5,271    5,271    5,271    5,271  Other assets     3,800    4,552    2,568    4,573    2,309  Acquisition related deposits     2,110    -      1,450    1,550    1,510  Investment in unconsolidated real estate entities     4,018    5,744    5,758    5,778    5,687  Assets associated with real estate held for sale     -      -      1,958    1,995    13,952  Total Assets     $932,778    $848,228    $725,822    $571,615    $554,675  Liabilities             Notes payable     $357,106    $269,811    $369,873    $212,918    $192,491  Accounts payable, accrued expenses and other liabilities     11,304    9,620    6,050    6,140    5,783  Dividends payable     5,244    5,191    3,075    3,066    5,368  Acquired lease intangible liabilities, net(3)     3,016    1,921    1,970    1,547    1,143  Tenant security deposits     8,768    7,927    7,396    6,901    6,099  Prepaid rents     1,463    1,329    964    766    1,426  Liabilities associated with real estate held for sale     -      -      293    282    596  Total Liabilities     386,901    295,799    389,621    231,620    212,906  Equity             Common stock     434    431    255    255    255  Additional paid in capital     542,318    538,248    312,451    312,131    311,936  Cumulative distributions in excess of earnings     (21,673)   (16,574)   (10,784)   (7,782)   (5,993) Accumulated other comprehensive income (loss)      (1,331)   158    (410)   269    -    Total stockholders' equity     519,748    522,263    301,512    304,873    306,198  Noncontrolling interests     26,129    30,166    34,689    35,122    35,571  Total Equity     545,877    552,429    336,201    339,995    341,769  Total Liabilities and Equity     $932,778    $848,228    $725,822    $571,615    $554,675               (1) For comparability, certain prior period amounts have been reclassified to conform to current period presentation of properties held for sale.             (2) Includes net above-market tenant lease intangibles of $3,644 (Dec. 31 2014), $3,474 (Sept. 30, 2014), $3,443 (June 30, 2014), $1,488 (March 31, 2014), and $1,597 (Dec. 31, 2013).             (3) Includes net below-market tenant lease intangibles of $2,771 (Dec. 31 2014), $1,668 (Sept. 30, 2014), $1,716 (June 30, 2014), $1,284 (March 31, 2014), and $866 (Dec. 31, 2013).                          Fourth Quarter 2014            Page 5 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.           Three Months Ended           December 31, 2014  September 30, 2014  June 30, 2014  March 31, 2014 Rental Revenues           Rental revenues     $16,719    $15,516    $12,773    $11,628  Tenant reimbursements     2,417    2,052    1,681    1,511  Management, leasing, and development services     206    171    249    234  Other income     234    16    15    42  Total rental revenues     19,576    17,755    14,718    13,415  Interest income     282    281    278    276  Total Revenues     19,858    18,036    14,996    13,691  Operating Expenses           Property expenses     5,477    4,879    3,892    4,134  General and administrative     3,486    3,273    2,780    2,605  Depreciation and amortization     8,443    8,032    6,003    6,130  Total Operating Expenses     17,406    16,184    12,675    12,869  Other Expense           Acquisition expenses     627    426    652    333  Interest expense     1,655    1,957    1,537    1,251  Total Other Expense     2,282    2,383    2,189    1,584  Total Expenses     19,688    18,567    14,864    14,453  Equity in income (loss) from unconsolidated real estate entities     (25)   2    (51)   45  Loss on sale of real estate     -    (150)     Net Income (Loss) from Continuing Operations     145    (679)   81    (717) Discontinued Operations           Income from discontinued operations           before gains on sale of real estate     -      -      -      21  Gain on sale of real estate     -      -      -      2,125  Income from Discontinued Operations     -      -      -      2,146  Net Income (Loss)     $145    $(679)   $81    $1,429             Net Income (Loss) attributable to:           Common shareholders     $107    $(623)   $49    $1,261  Noncontrolling interests     -      (80)   8    152  Participating securities     38    24    24    16  Net Income (Loss)     $145    $(679)   $81    $1,429             Earnings per Common Share - Basic and Diluted           Net income (loss) available to common stockholders     $0.00    $(0.02)   $0.00    $0.05  Weighted average shares outstanding - basic and diluted     43,234,602    33,527,183    25,419,757    25,419,418                                   Fourth Quarter 2014          Page 6 Supplemental Financial Reporting Package          

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Consolidated and Combined Statement of Operations         (in thousands) Quarterly Results         (unaudited results)              Rexford Industrial Realty, Inc.      Rexford Industrial Realty, Inc. and Predecessor (1)    Three Months Ended December 31    Year Ended December 31,      2014  2013  2014  2013 Rental Revenues          Rental revenues    $16,719    $10,809    $56,636    $37,655  Tenant reimbursements    2,417    1,333    7,661    4,373  Management, leasing, and development services    206    253    860    978  Other income    234    53    307    280  Total rental revenues    19,576    12,448    65,464    43,286  Interest income    282    190    1,117    1,079  Total Revenues    19,858    12,638    66,581    44,365  Operating Expenses          Property expenses    5,477    3,869    18,382    12,320  General and administrative    3,486    2,827    12,144    9,747  Depreciation and amortization    8,443    5,661    28,608    15,708  Total Operating Expenses    17,406    12,357    59,134    37,775  Other (Income) Expense          Acquisition expenses    627    421    2,038    1,264  Interest expense    1,655    1,046    6,400    11,158  Gain on mark-to-market of interest rate swaps    -      -      -      (49) Total Other Expense    2,282    1,467    8,438    12,373  Total Expenses    19,688    13,824    67,572    50,148  Equity in income (loss) from unconsolidated real estate entities    (25)   9    (29)   (823) Gain from early repayment of note receivable    -      -      -      1,365  Loss on extinguishment of debt    -      -      -      (3,955) Loss on sale of real estate    -      -      (150)   -    Net Income (Loss) from Continuing Operations    145    (1,177)   (1,170)   (9,196) Discontinued Operations          Income (loss) from discontinued operations before gains on sale of real estate    -      171    21    (518) Loss on extinguishment of debt    -      -      -      (267) Gain on sale of real estate    -      -      2,125    4,989  Income from Discontinued Operations    -      171    2,146    4,204  Net Income (Loss)    $145    $(1,006)   $976    $(4,992)           Net Income (Loss) attributable to:          Common shareholders    $107    $(910)   $794    $(4,920) Noncontrolling interests    -      (125)   80    (101) Participating securities    38    29    102    29  Net Income (Loss)    $145    $(1,006)   $976    $(4,992)           (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 2014         Page 7 Supplemental Financial Reporting Package          

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Non-GAAP FFO (1)          (in thousands)            (unaudited results)                  Rexford Industrial Realty, Inc.            Three Months Ended            December 31, 2014  September 30, 2014  June 30, 2014  March 31, 2014  Funds From Operations (FFO)             Net Income (loss)    145    (679)   81    1,429   Add:             Depreciation and amortization, including amounts in discontinued operations    8,443    8,032    6,003    6,137    Depreciation and amortization from unconsolidated joint ventures     66    103    103    85    Loss on sale of real estate    -      150    -    -   Deduct:             Gain on sale of real estate    -      -    -    2,125    Gain on sale of real estate from unconsolidated joint ventures    3    -    -    -   Funds From Operations     8,651    7,606    6,187    5,526   Company share of FFO (2)     $8,183    $6,984    $5,532    $4,941               FFO per share - basic and diluted     $0.19    $0.21    $0.22    $0.19               Funds From Operations     $8,651    $7,606    $6,187    $5,526   Add:             Non-recurring legal fees(3)    205    380    -    -    Acquisition Expenses    627    426    652    333   FFO available to common shareholders and unitholders before non-recurring legal fees     $9,483    $8,412    $6,839    $5,859   Company share of FFO before non-recurring legal fees and acquisition expenses (2)     $8,970    $7,724    $6,115    $5,239               FFO per share before non-recurring legal fees and acquisition expenses - basic and diluted     $0.21    $0.23    $0.24    $0.21               Weighted-average shares outstanding - basic and diluted     43,234,602    33,527,183    25,419,757    25,419,418   Weighted-average diluted shares and units     45,705,769    36,511,737    28,429,016    28,428,677               (1) For a definition and discussion of non-GAAP financial measures, see the definitions section beginning on page 27 of this report.            (2) Company share of FFO is based on the weighted average interest in our operating partnership of 94.6% , 91.8% , 89.4% and 89.4% for the three months ended December 31, 2014, September 30, 2014,                June 30, 2014, and March 31, 2014, respectively.  Company share of FFO includes FFO allocated to participating securities of $38, $24, $24 and $16 for the three months ended December 31, 2014,                 September 30, 2014, June 30, 2014, and March 31, 2014, respectively.            (3) Non-recurring legal fees relate to Accommodation and Litigation.  For more information, see Item 3. Legal Proceedings in our 2013 Annual Report on Form 10-K and Item 1. Legal Proceedings               in our subsequent filings on Form 10-Q.                                                Fourth Quarter 2014          Page 8  Supplemental Financial Reporting Package            

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Non-GAAP AFFO (1)          (in thousands)           (unaudited results)                Rexford Industrial Realty, Inc.           Three Months Ended           December 31, 2014  September 30, 2014  June 30, 2014  March 31, 2014 Adjusted Funds From Operations (AFFO)           Funds From Operations     $8,651    $7,606    $6,187    5,526  Add:            Amortization of deferred financing costs    206    205    144    129   Fair value lease expense    115    151    73    81   Acquisition costs    627    426    655    333   Non-cash stock compensation    250    340    279    172  Deduct:            Straight line rent adjustment    595    227    395    184   Capitalized payments (2)    302    216    222    249   Note Receivable discount amortization    68    66    65    64   Note Payable premium amortization    82    81    35    11   Recurring capital expenditures(3)    908    752    447    280   2nd generation tenant improvements and leasing commissions(4)    918    1,174    795    275   Unconsolidated joint venture AFFO adjustments    3    (2)   (3)   (9) AFFO     $6,973    $6,214    $5,382    $5,187             (1) For a definition and discussion of non-GAAP financial measures, see the definitions section beginning on page 27 of this report.           (2) Includes capitalized leasing and construction development compensation.           (3) Excludes nonrecurring capital expenditures of $4,118, $2,670, $1,708, and $557 for the three months ended December 31, 2014, September 30, 2014,             June 30, 2014, and March 31, 2014, respectively.          (4) Excludes 1st generation tenant improvements and leasing commissions of $640, $423, $31, and $50 for the three months ended December 31, 2014,            September 30, 2014, June 30, 2014, and March 31, 2014, respectively.           Fourth Quarter 2014          Page 9 Supplemental Financial Reporting Package          

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Statement of Operations Reconciliations (1)          (in thousands)           (unaudited results)                Rexford Industrial Realty, Inc.            Three Months Ended           December 31, 2014  September 30, 2014  June 30, 2014  March 31, 2014 Net Operating Income (NOI)           Rental revenues     $16,719    $15,516    $12,773    $11,628  Tenant reimbursements     2,417    2,052    1,681    1,511  Other income     234    16    15    42  Total operating revenues     19,370    17,584    14,469    13,181             Property expenses     5,477    4,879    3,892    4,134  Total operating expenses     5,477    4,879    3,892    4,134  NOI     $13,893    $12,705    $10,577    $9,047  Fair value lease revenue     115    151    73    81  Straight line rent adjustment     (595)   (227)   (395)   (184) Cash NOI     $13,413    $12,629    $10,255    $8,944             Net Income (Loss)     $145    $(679)   $81    $1,429  Add:           General and administrative     3,486    3,273    2,780    2,605  Depreciation and amortization     8,443    8,032    6,003    6,130  Acquisition expenses     627    426    652    333  Interest expense     1,655    1,957    1,537    1,251  Loss on sale of real estate     -    150    -    -  Subtract:           Management, leasing, and development services     206    171    249    234  Interest income     282    281    278    276  Equity in income (loss) from unconsolidated real estate entities     (25)   2    (51)   45  Income from discontinued operations     -    -    -    2,146  NOI     $13,893    $12,705    $10,577    $9,047  Fair value lease revenue     115    151    73    81  Straight line rent adjustment     (595)   (227)   (395)   (184) Cash NOI     $13,413    $12,629    $10,255    $8,944             (1) For a definition and discussion of non-GAAP financial measures, see the definitions section beginning on page 27 of this report.                                                                  Fourth Quarter 2014          Page 10 Supplemental Financial Reporting Package          

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Statement of Operations Reconciliations (1)          (in thousands)           (unaudited results)                Rexford Industrial Realty, Inc.            Three Months Ended           December 31, 2014  September 30, 2014  June 30, 2014  March 31, 2014 Net income (loss)     $145    $(679)   $81    $1,429  Interest expense     1,655    1,957    1,537    1,251  Proportionate share of interest expense from unconsolidated joint ventures     25    43    45    57  Depreciation and amortization     8,443    8,032    6,003    6,130  Depreciation and amortization included in discontinued operations     -      -      -      7     Proportionate share of real estate related depreciation and              amortization from unconsolidated joint ventures     66    103    103    85  EBITDA     $10,334    $9,456    $7,769    $8,959  Stock-based compensation amortization     250    340    279    172  Loss (Gain) on sale of real estate     -    150    -    (2,125) Non-recurring legal fees(2)     205    380    -    -  Acquisition expenses     627    426    652    333  Pro forma effect of acquisitions(3)     1,169    497    1,625    203  Pro forma effect of dispositions(4)     -      (100)   -      (28) Adjusted EBITDA     $12,585    $11,149    $10,325    $7,514             (1) For a definition and discussion of non-GAAP financial measures, see the definitions section beginning on page 27 of this report.           (2) Non-recurring legal fees relate to Accommodation and Litigation. For more information, see Item 3. Legal Proceedings in our 2013 Annual Report on Form 10-K and Item 1. Legal            Proceedings in our subsequent filings on Form 10-Q.           (3) Represents the estimated impact of Q4'14 acquisitions as if they had been acquired October 1, 2014, Q3'14 acquisitions as if they had been acquired July 1, 2014,            Q2'14 acquisitions as if they had been acquired on April 1, 2014, and Q1'14 acquisitions as if they had been acquired on January 1, 2014.  We have made a number of assumptions            in 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 the beginning of each period.           (4)Represents the effect of dispositions as if they had occurred at the beginning of the quarter disposed.  See the dispositions section on page 24 for additional details.     Fourth Quarter 2014          Page 11 Supplemental Financial Reporting Package          

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Same Property Portfolio Performance (1)                (in thousands) Statement of Operations and NOI Reconciliation                (unaudited results)                  Same Property Portfolio Statement of Operations:                                    Three Months Ended December 31,        Year Ended December 31,         2014  2013  $ Change  % Change  2014  2013 (2)  $ Change  % Change Rental Revenues                 Rental revenues   $10,830    $10,193    $637  (3) 6.2%   $33,156    $31,796    $1,360   4.3% Tenant reimbursements   1,325    1,132    193   17.0%   3,720    3,355    365   10.9% Other operating revenues   211    43    168  (4) 390.7%   262    234    28   12.0% Total rental revenues   12,366    11,368    998   8.8%   37,138    35,385    1,753   5.0% Interest income   282    190    92   48.4%   1,118    1,016    102   10.0% Total Revenues   12,648    11,558    1,090   9.4%   38,256    36,401    1,855   5.1% Operating Expenses                 Property expenses   3,507    3,368    139   4.1%   10,326    9,807    519   5.3% Depreciation and amortization   4,188    5,529    (1,341)  (24.3%)   13,299    12,566    733   5.8% Total Operating Expenses   7,695    8,897    (1,202)  (13.5%)   23,625    22,373    1,252   5.6% Other (Income) Expense                 Interest expense (5)   220    290    (70)  (24.1%)   161    9,193    (9,032)  (98.2%) Total Other Expense   220    290    (70)  (24.1%)   161    9,193    (9,032)  (98.2%) Total Expenses   7,915    9,187    (1,272)  (13.8%)   23,786    31,566    (7,780)  (24.6%) Loss on extinguishment of debt   -    -    -      -    (3,451)   3,451   (100.0%) Net Income (Loss)   $4,733    $2,371    $2,362   (99.6%)   $14,470    $1,384    $13,086   (945.5%)                  Same Property Portfolio NOI Reconciliation:                                    Three Months Ended December 31,        Year Ended December 31,       NOI  2014  2013  $ Change  % Change  2014  2013 (2)  $ Change  % Change Net Income (Loss)   $4,733    $2,371        $14,470    $1,384      Add:                 Interest expense (5)   220    290        161    9,193      Depreciation and amortization   4,188    5,529        13,299    12,566      Deduct:                 Loss on extinguishment of debt   -    -        -    (3,451)     Interest income   282    190        1,118    1,016      NOI   $8,859    $8,000    $859   10.7%   $26,812    $25,578    $1,234   4.8% Straight-line rents   (389)   (267)       (438)   (350)     Amort. above/below market leases   97    80        136    162      Cash NOI   $8,567    $7,813    $754   9.7%   $26,510    $25,390    $1,120   4.4%                  (1) For a definition and discussion of non-GAAP financial measures, see the definitions section beginning on page 27 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) Increase in rental revenues during Q4'14 includes the reversal of a $190 cumulative bad debt allowance for one of our tenants.                 (4) The increase in other operating revenues during Q4-14 reflects the receipt of $176 easement income at one of our properties.                 (5) Interest expense for the three and twelve months ended December 31, 2014 only reflects interest for the loans secured by our properties located at 107700 Jersey Blvd. and Glendale Commerce Center.                    Interest on our post-IPO $60mm term loan, which is secured by multiple properties, is being reported under the operating partnership and accordingly the interest is not being pushed down to the property.                 Fourth Quarter 2014                Page 12 Supplemental Financial Reporting Package    

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Same Property Portfolio Performance (1)                (in thousands) NOI Reconciliation, Portfolio Detail, and Occupancy                (unaudited results)                  Same Property Portfolio NOI Reconciliation Continued:                                    Three Months Ended December 31,        Year Ended December 31,         2014  2013   $ Change  % Change  2014  2013 (2)  $ Change  % Change Rental revenues   $10,830    $10,193    $637   6.2%   $33,156    $31,796    $1,360   4.3% Tenant reimbursements   1,325    1,132    193   17.0%   3,720    3,355    365   10.9% Other operating revenues   211    43    168   390.7%   262    234    28   12.0% Total rental revenue   12,366    11,368    998   8.8%   37,138    35,385    1,753   5.0% Property expenses   3,507    3,368    139   4.1%   10,326    9,807    519   5.3% NOI   $8,859    $8,000    $859   10.7%   $26,812    $25,578    $1,234   4.8% Straight-line rents   (389)   (267)   (122)  45.7%   (438)   (350)   (88)  25.1% Amort. above/below market leases   97    80    17   21.3%   136    162    (26)  (16.0%) Cash NOI   8,567    7,813    $754   9.7%   $26,510    $25,390    $1,120   4.4%                  Same Property Portfolio Rollforward:                                    Three Month Same Property Portfolio Rollforward        Twelve Month Same Property Portfolio Rollforward         # of Properties  Square Feet  Wtd Avg. Occupancy    # of Properties  Square Feet  Wtd Avg. Occupancy         2014  2013      2014  2013 Period ended Sept. 30, 2014 and 2013(3)  53   5,099,658  90.4%  87.9%  49   4,363,498  89.2%  87.4% Additions(4)  3   #REF!      0    -        Deductions  0   #REF!      0   #REF!     Period ended Dec. 31, 2014 and 2013  56   #REF!  #REF!  #REF!  49   #REF!  #REF!  #REF!                  Same Property Portfolio Occupancy:                                    Three Months Ended December 31,        Year Ended December 31,         2014    2013    2014    2013     Same Property  Stabilized Same  Same Property  Stabilized Same  Same Property  Stabilized Same  Same Property  Stabilized Same Occupancy:  Portfolio  Property Portfolio(5)   Portfolio  Property Portfolio(5)   Portfolio  Property Portfolio(5)   Portfolio  Property Portfolio(5)  Los Angeles County    97.5%    89.8%    96.6%    89.2% Orange County    98.5%    95.7%    98.5%    95.7% San Bernardino County    87.6%    87.5%    88.2%    88.4% Ventura County    92.5%    97.7%    92.5%    97.7% San Diego County    81.7%    82.8%    79.9%    81.6% Total/Weighted Average  #REF!  93.7%  #REF!  89.7%  #REF!  92.7%  #REF!  89.5%                  (1) For a definition and discussion of non-GAAP financial measures, see the definitions section beginning on page 27 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) Square footage decreased by 1,066 due to renovations at our property located at 28340 - 28400 Avenue Crocker during the current quarter.                 (4) Reflects the addition of Orion, Tarzana and La Jolla Sorrento to the Same Property Portfolio for the three months ended December 31, 2014.                 (5) Reflects the occupancy of our Same Property Portfolio adjusted for spaces aggregating 88,399 sqft that were under repositioning as of December 31, 2014.  For additional details, refer to page 23 of this report.                                    Fourth Quarter 2014                Page 13 Supplemental Financial Reporting Package                

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Joint Venture Financial Summary          (in thousands) Balance Sheet          (unaudited results)                Mission Oaks (1)           December 31, 2014  September 30, 2014  June 30, 2014  March 31, 2014 Assets:           Investments in real estate, net     $20,268    $56,488    56,439    $55,085  Cash and cash equivalents     2,331    1,105    427    853  Rents and other receivables, net     231    309    182    133  Deferred rent receivable     (11)   251    212    161  Deferred leasing costs and acquisition     -      -      -      related intangible assets, net     290    4,211    4,569    4,912  Deferred loan costs, net     -      79    106    132  Acquired above-market leases, net     110    557    646    735  Other assets     19    54    64    81  Total Assets     $23,238    $63,054    62,645    $62,092             Liabilities:           Notes payable     $-      $41,500    $41,500    $41,500  Accounts payable, accrued expenses and other liabilities     678    930    727    913  Tenant security deposits     292    277    277    277  Prepaid rents     -      127    124    143  Total Liabilities     970    42,834    42,628    42,833             Equity:           Equity     8,202    19,462    19,462    18,867  Accumulated deficit and distributions     14,066    758    555    392  Total Equity     22,268    20,220    20,017    19,259             Total Liabilities and Equity     $23,238    $63,054    $62,645    $62,092             Rexford Industrial Realty, Inc. Ownership %:    15%  15%  15%  15%            (1) These financials represent amounts attributable to the entities and do not represent our proportionate share.                                                       Fourth Quarter 2014          Page 14 Supplemental Financial Reporting Package        

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Statement of Operations          (unaudited results)            Statement of Operations:                          Mission Oaks (2)           Three Months Ended           December 31, 2014  September 30, 2014  June 30, 2014  March 31, 2014 Income Statement           Rental revenues     $807    $1,300    $1,291    $1,286  Tenant reimbursements     355    823    630    526  Other operating revenues     -      -      -      -    Total revenue     1,162    2,123    1,921    1,812             Total operating expense     555    934    745    629  NOI     607    1,189    1,176    1,183             General and administrative     11    14    28    29  Depreciation and amortization     442    687    686    564  Interest expense     165    285    299    383  Loss on Extinguishment of Debt     70    -      -      -    Gain on sale of assets/investments     (13,389)   -      -      -    Total expense     (12,146)   1,920    1,758    1,605  Net Income      $13,308    $203    $163    $207             EBITDA           Net income     $13,308    $203    $163    $207  Interest expense     165    285    299    383  Depreciation and amortization     442    687    686    564  EBITDA     $13,915    $1,175    $1,148    $1,154             Rexford Industrial Realty, Inc. Ownership %:    15%  15%  15%  15%            Reconciliation - Equity Income in Joint Venture:                      Net income     $13,308    $203    $163    $207             Rexford Industrial Realty, Inc. Ownership %:    15%  15%  15%  15%  Company share     1,996    30    24    31   Intercompany eliminations/basis adjustments     (2,021)   (28)   (75)   14  Equity in net income from unconsolidated real estate entities     $(25)   $2    $(51)   $45             (1) For a definition and discussion of non-GAAP financial measures, see the definitions section beginning on page 27 of this report.           (2) These financials represent amounts attributable to the entities and do not represent our proportionate share.                      Fourth Quarter 2014          Page 15 Supplemental Financial Reporting Package          

Capitalization Summary                       (unaudited results)             Capitalization as of December 31, 2014                                    Description     December 31, 2014  September 30, 2014  June 30, 2014  March 31, 2014 Common shares (1)      43,382,425    43,059,742    25,420,381    25,419,418  Operating partnership units      2,323,344    2,646,027    3,009,259    3,009,259  Total shares and units at period end (1)      45,705,769    45,705,769    28,429,640    28,428,677  Share price at end of quarter      $15.71    $13.84    $14.24    $14.18  Total Equity Market Capitalization      $718,037,631    $632,567,843    $404,838,074    $403,118,640              Total consolidated debt      $357,076,000    $269,699,000    $369,679,177    $212,997,286  Plus: pro-rata share of debt related to unconsolidated JV's      -      6,225,000    6,225,000    6,225,000  Total Debt (pro-rata)      $357,076,000    $275,924,000    $375,904,177    $219,222,286  Less: Cash and cash equivalents      (8,606,000)   (60,541,000)   (9,272,000)   (6,344,000) Net Debt (pro-rata)      $348,470,000    $215,383,000    $366,632,177    $212,878,286              Total Combined Market Capitalization      $1,066,507,631    $847,950,843    $771,470,251    $615,996,926              Net debt (pro-rata) to total combined market capitalization     32.7%  25.4%  47.5%  34.6% Net debt (pro-rata) to adjusted EBITDA (quarterly results annualized)     6.9x  4.9x  8.9x  7.0x             (1) Excludes the following number of unvested shares of restricted stock: 320,017 (December 31, 2014), 198,141 (September 30, 2014), 203,264 (June 30, 2014),                  and 131,786 (March 31, 2014).                         Fourth Quarter 2014           Page 16 Supplemental Financial Reporting Package            

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Debt Summary           (in thousands)            (unaudited results)             Debt Detail:            As of December 31, 2014            Debt Description   "Initial  Maturity Date"  Maturity Date w/ Extensions  "Stated Interest Rate"  "Effective  Interest Rate"  Balance Secured Debt:            Glendale Commerce Center   5/1/2016  5/1/2018  LIBOR + 2.00%  2.171%   $42,750  Term Loan   8/1/2019  8/1/2020  LIBOR + 1.90%  2.071%   60,000  Gilbert/La Palma   3/1/2031  N/A  5.125%  5.125%   3,173  2980 San Fernando   7/1/2015  N/A  5.088%  5.088%   10,153  Term Loan   7/24/2017  7/24/2019  LIBOR + 1.55%  1.738%   48,500  Unsecured Debt:            $100M Term Loan Facility   6/11/2019  N/A  LIBOR + 1.50%  1.671%   100,000  $200M Revolving Credit Facility   6/11/2018  6/11/2019  LIBOR + 1.55%  1.721% (1)  92,500  Total Consolidated:         1.948%   $357,076  Pro-rata Joint Venture Interest:            Mission Oaks (2)   6/28/2015  6/28/2017  LIBOR + 2.50%  --   $-                (1) At December 31, 2014, the total outstanding balance was comprised of 4 separate loan draws locked at various LIBOR rates.  We incur an unused commitment fee calculated at 0.30% or 0.20% of the daily                 unused commitment if the balance is under $100,000,000 or over $100,000,000, respectively.            (2) In connection with the JV's disposition of 3001 & 3175 Mission Oaks Blvd. on 11/17/14, the JV repaid the $41.5 million loan secured by the properties located at 3001, 3175 and 3233 Mission Oaks Blvd.                        Consolidated Debt Composition:            Category   Avg. Term Remaining (yrs)  "Stated Interest Rate"  Effective Interest Rate  Balance  % of Total Fixed   4.2  5.10%  5.10%   $13,326   4% Variable(1)   3.5  LIBOR + 1.65%  1.83%   $343,750   96% Secured   3.1    2.24%   $164,576   46% Unsecured  facility   4.0    1.70%   $192,500   54%             (1) On February 4, 2014 we executed two forward interest rate swaps that will effectively fix the annual interest rate on our $60mm term loan in the future as follows: (i) $30mm at 3.726%  from 1/15/15 to 2/15/19, and                (ii) $30mm at 3.91% from 7/15/15 to 2/15/19.  On August 19, 2014 we executed two forward interest rate swaps that will effectively fix the annual interest rate on our $100mm term loan in the future as follows:                 (i) $50mm at 1.79% plus the applicable term loan facility margin from 8/14/15 - 12/14/18, and (ii) $50mm at 2.005% plus the applicable term loan facility margin from 2/16/16 to 12/14/18.  If our swaps                 were effective as of December 31, 2014, our consolidated debt would be 49% fixed and 51% variable.                        Debt Maturity Schedule:            Year   Secured  Unsecured Debt  Total  % Total  Interest Rate 2015    10,153    -      10,153   3%  5.088% 2016    42,750    -      42,750   12%  2.171% 2017    48,500    -      48,500   13%  1.738% 2018    -      92,500    92,500   26%  1.721% 2019    60,000    100,000    160,000   45%  1.821% Thereafter    3,173    -    3,173   1%  5.125% Total    $164,576    $192,500    $357,076   100%  1.948%             Fourth Quarter 2014           Page 17 Supplemental Financial Reporting Package            

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Portfolio Overview               at 12/31/14              (unaudited results)                Consolidated Portfolio:                                           Annualized Base Rent   Market    # Properties  % Owned  Pro-rata Sq. Ft.  Occ. %  "Total  (in thousands)(1)"  per SF Greater San Fernando Valley    24  100.0%  2,706,356  86.0%   $20,697   $8.89 San Gabriel Valley    10  100.0%  1,213,095  95.8%   8,920   $7.67 Central LA    2  100.0%  238,153  100.0%   1,602   $6.73 Mid-Counties    4  100.0%  522,430  100.0%   3,832   $7.34 South Bay    11  100.0%  648,648  90.7%   4,678   $7.95 Los Angeles County    51  100.0%  5,328,682  90.8%   39,729   $8.21                North Orange County    5  100.0%  579,446  95.6%   5,036   $9.09 West Orange County    1  100.0%  170,865  100.0%   1,308   $7.65 South Orange County    1  100.0%  46,178  100.0%   371   $8.04 OC Airport    6  100.0%  511,270  84.9%   3,286   $7.57 Orange County    13  100.0%  1,307,759  92.1%   10,001   $8.30                Inland Empire West    9  100.0%  961,184  93.1%   6,511   $7.28 Inland Empire East    2  100.0%  85,282  81.1%   422   $6.10 San Bernardino County    11  100.0%  1,046,466  92.1%   6,933   $7.19                Ventura    8  100.0%  818,757  92.7%   6,150   $8.11 Ventura County    8  100.0%  818,757  92.7%   6,150   $8.11                North County San Diego    6  100.0%  584,254  76.1%   4,006   $9.01 Central San Diego    8  100.0%  664,487  93.9%   6,676   $10.70 South County San Diego    1  100.0%  78,615  98.0%   607   $7.88 San Diego County    15  100.0%  1,327,356  86.3%   11,289   $9.85 CONSOLIDATED TOTAL / WEIGHTED AVERAGE    98  100.0%  9,829,020  90.7%   $74,102   $8.31                Unconsolidated Joint Ventures:               Ventura    1  15.0%  68,370  39.7%   $242   $8.92 UNCONSOLIDATED TOTAL / WEIGHTED AVERAGE    1  15.0%  68,370  39.7%   $242   $8.91                Total Portfolio:               GRAND TOTAL / WEIGHTED AVERAGE    99  96.2%  9,897,390  90.3%   $74,344   $8.32                (1) Calculated for each property as monthly contracted base rent per the terms of the lease(s) at such property, as of December 31, 2014, multiplied by 12 and then multiplied by our ownership interest for such property,                and then aggregated by market.  Excludes billboard and antenna revenue and rent abatements.                               Fourth Quarter 2014              Page 18 Supplemental Financial Reporting Package              

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Occupancy and Leasing Trends                     (unaudited results, data represents consolidated portfolio only on a pro rata basis)            Occupancy by County:                        Dec. 31, 2014  Sep. 30, 2014  Jun. 30, 2014  Mar. 31, 2014  Dec. 31, 2013 Occupancy:           Los Angeles County (1)  90.8%  #REF!  #REF!  #REF!  #REF! Orange County  92.1%  #REF!  #REF!  #REF!  #REF! San Bernardino County  92.1%  #REF!  #REF!  #REF!  #REF! Ventura County  92.7%  #REF!  #REF!  #REF!  #REF! San Diego County  86.3%  #REF!  #REF!  #REF!  #REF! Other  --  --  #REF!  #REF!  #REF! Total/Weighted Average(2)  90.7%  #REF!  #REF!  #REF!  #REF!            Consolidated Portfolio SF  9,829,020  #REF!  #REF!  #REF!  #REF!            Leasing Activity:                       Three Months Ended            Dec. 31, 2014  Sep. 30, 2014  Jun. 30, 2014  Mar. 31, 2014  Dec. 31, 2013 Leasing Activity (SF): (3)           New leases  201,269  253,422  208,819  307,102  142,248 Renewal  229,226  438,251  363,798  351,995  244,068 Gross leasing  430,495  691,673  572,617  659,097  386,316            Expiring leases  388,816  624,995  582,344  618,303  309,769 Net absorption  41,679  66,678  -9,727  40,794  76,547 Retention rate  59%  70%  62%  57%  79%            Weighted Average New/Renewal Leasing Spreads:                        Dec. 31, 2014  Sep. 30, 2014  Jun. 30, 2014  Mar. 31, 2014  Dec. 31, 2013            Cash Rent Change  1.9%(4)  3.6%  5.2%  3.6%  3.5% GAAP Rent Change  11.8%(5)  10.3%  17.1%  11.5%  12.9%            (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) Excluding the effect of one new 15,040 sqft lease transaction in our San Diego market, the weighted average cash growth total leases is 3.3%.             (5) Excluding the effect of one new 15,040 sqft lease transaction in our San Diego market, the weighted average GAAP growth for  total leases is 13.3%.                       Fourth Quarter 2014          Page 19 Supplemental Financial Reporting Package          

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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 2014:           New   43   201,269  3.9   (0.7%)(1)  10.7%(2) Renewal (3)  56   229,226  2.8   3.6%  12.4% Total/Weighted Average  99   430,495   3.2   1.9%(1)  11.8%(2)            Uncommenced Leases by County:           Market  Leased SF  " Uncommenced Leases Annual Base Rent  (in thousands)"  "Total Pro Forma Annualized Base Rent  (in thousands)"  "Pro Forma  Occupancy %"   Pro Forma Annualized Base Rent per SF Los Angeles County  -   $-      $39,730   90.8%  $8.21 Orange County  1,450   16    10,017   92.2%  $8.30 San Bernardino County  -   -    6,933   92.1%  $7.19 Ventura County  -   -    6,150   92.7%  $8.11 San Diego County  3,497   31    11,320   86.6%  $9.85 Total/Weighted Average  4,947   $47    $74,149   90.7%  $8.32            Lease Expiration Schedule:           Year of Lease Expiration  # of Leases Expiring  Total Rentable SF  "Annualized Base Rent  (in thousands)"  % of Annualized Base Rent  " Annualized Base  Rent per SF" Available  -   916,942   -  -  - MTM Tenants  112    226,721    $2,177   2.9%  $9.60 2014 (4)  28    348,399    2,009   2.7%  $5.77 2015  364    1,636,014    14,466   19.5%  $8.84 2016  313    2,533,568    19,961   26.9%  $7.88 2017  183    1,652,805    13,591   18.4%  $8.22 2018  67    784,754    6,707   9.1%  $8.55 2019  27    494,627    4,264   5.8%  $8.62 2020  11    607,312    5,455   7.4%  $8.98 2021  7    149,433    1,861   2.5%  $12.46 2022  3    143,742    767   1.0%  $5.34 Thereafter  3    334,703    2,844   3.8%  $8.50 Total Portfolio  1,118    9,829,020    $74,102   100.0%  $8.31            (1) Excluding the effect of one new 15,040 sqft lease transaction in our San Diego market, the weighted average cash growth for new leases and total leases is 2.8% and 3.3%, respectively.           (2) Excluding the effect of one new 15,040 sqft lease transaction in our San Diego market, the weighted average GAAP growth for new leases and total leases is 14.9% and 13.3%, respectively.           (3) Over 96% of lease renewals during the quarter achieved flat or positive cash rent growth.           (4) Of the 28 leases expiring on 12/31/14, 14 leases vacated totaling 228,424 SF and $1,450,627 of annualized base rent, 4 leases subsequently renewed totaling 5,501 SF and $40,540 of annualized base                rent and 10 leases are holdover leases  totaling 114,474 SF and $517,656 of annualized base rent.           Fourth Quarter 2014          Page 20 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 Cosmetic Laboratories of America  LA - San Fern. Valley  319,348   2.4%  $5.64  6/30/2020 Dendreon Corporation  OC - West  170,865   1.8%  $7.65  12/31/2019 Senior Operations  LA - San Fern. Valley  130,800   1.6%  $8.88  11/30/2024 Biosense Webster  LA - San Gabriel Valley  89,920   1.5%  $12.76  10/31/2020(1) Warehouse Specialists  LA - San Gabriel Valley  245,961   1.5%  $4.44  11/30/2017 Department of Corrections  Inland Empire West  58,781   1.4%  $18.13  3/31/2020 Tarnik, Inc.  LA - San Fern. Valley  138,980   1.2%  $6.60  4/30/2016 Exelis Inc.  LA - San Gabriel Valley  67,838   1.2%  $13.01  9/30/2023 Kingsbridge International  LA - San Fern. Valley  136,065   1.1%  $5.88  1/31/2024 Tree Island Wire  LA - San Gabriel Valley  108,703   1.0%  $6.69  11/30/2016 Top 10 Total / Wtd. Avg.    1,467,261   14.7%  $7.43              (1)Includes 1,120 square feet expiring 9/30/2016, 12,800 square feet expiring 9/30/2017 and 76,000 square feet expiring 10/31/2020, as of December 31, 2014.                      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  805   1,645,124   $16,831   22.7%  $10.23 5,000 - 9,999  121   830,755   8,199   11.1%  $9.87 10,000 - 24,999  123   1,919,342   16,808   22.7%  $8.76 25,000 - 49,999  36   1,311,656   10,833   14.6%  $8.26 >50,000  33   3,205,201   21,431   28.9%  $6.69 Total / Wtd. Avg.  1,118   8,912,078   $74,102   100.0%  $8.31 Fourth Quarter 2014          Page 21 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, 2014:           Amount  SF(1)  PSF Tenant Improvements:        New Leases - 1st Generation    $436,000   238,045   $1.83  New Leases - 2nd Generation    $570,000   182,790   $3.12  Renewals    $53,000   67,357   $0.79          Leasing Commissions & Lease Costs:        New Leases - 1st Generation    $204,000   147,845   $1.38  New Leases - 2nd Generation    $83,000   99,159   $0.84  Renewals    $212,000   284,349   $0.75          Total Recurring Capex:        Recurring Capex    $908,000   8,934,006   $0.10  Recurring Capex % NOI   6.5%     Recurring Capex % Operating Revenue   4.7%             Nonrecurring Capex    $4,118,000   3,312,081   $1.24          Year Ended December 31, 2014:           Amount  SF(1)   PSF  Tenant Improvements:        New Leases - 1st Generation    $547,000   272,523   $2.01  New Leases - 2nd Generation    $1,303,000   679,558   $1.92  Renewals    $419,000   568,956   $0.74          Leasing Commissions & Lease Costs:        New Leases - 1st Generation    $597,000   426,427   $1.40  New Leases - 2nd Generation    $767,000   704,126   $1.09  Renewals    $674,000   671,935   $1.00          Total Recurring Capex:        Recurring Capex    $2,387,000   7,621,459   $0.31  Recurring Capex % NOI   5.2%     Recurring Capex % Operating Revenue   3.7%             Nonrecurring Capex    $9,053,000   4,575,916   $1.98  (1) For tenant improvements and leasing commissions, reflects the aggregate square footage of the leases in which we incurred such costs, excluding new/renewal leases in which there were no         tenant improvements and/or leasing commissions.  For recurring capex, reflects the weighted average square footage of our consolidated portfolio for the period.  For nonrecurring capex,         reflects the aggregate square footage of the properties in which we incurred such capital expenditures.        Fourth Quarter 2014       Page 22 Supplemental Financial Reporting Package    

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Properties and Space Under Repositioning                                     (unaudited results, in millions, except square footage)                    Repositioning Properties                   As of December 31, 2014                         Estimated Construction Period    Costs Incurred         Property  Rentable Square Feet  Acquisition Date  Start  Completion  Purchase Price  Repositioning  Cumulative Investment-to-date(1)  Projected Total Investment(2)  "Occupancy % 12/31/14" CURRENT REPOSITIONING:                   7110 Rosecrans Ave.  72,000  Jan-14  3Q-2014  1Q-2015  $5.0  $0.4  $5.4  $5.9  #REF! 1601 Alton Pkwy.  #REF!  Jun-14  4Q-2014  4Q-2015  $13.3  $0.0  $13.3  $15.3  #REF! 605 8th Street  #REF!  Aug-14  4Q-2014  3Q-2015  $5.1  $0.0  $5.1  $6.6  #REF! 7900 Nelson Rd.  203,082  Nov-14  1Q-2015  3Q-2015  $24.3  $0.0  $24.3  $26.7  #REF! TOTAL/WEIGHTED AVERAGE  #REF!        $47.7  $0.4   $48.1   $54.5   #REF!                    FUTURE REPOSITIONING:                   2610 & 2701 S. Birch Street  98,105  Jun-14      $11.0  $0.0  $11.0  $13.6  #REF! 679-691 S. Anderson St.  47,490  Nov-14      $6.5  $0.0  $6.5  $9.0  #REF! TOTAL/WEIGHTED AVERAGE  145,595        $17.5   $0.0   $17.5   $22.6   #REF!                    (1)Investment-to-date includes the purchase price of the property and subsequent costs incurred for for nonrecurring capital expenditures.                   (2)Projected Total Investment includes the purchase price of the property and an estimate of total expected nonrecurring capital expenditures to be incurred on each                   repositioning project to reach completion.                                      Repositioning Space                   As of December 31, 2014                             Estimated Construction Period         Property      Rentable Square Feet  Space Under Repositioning  Start  Completion  "Occupancy % 12/31/14"     CURRENT REPOSITIONING:                   28340 - 28400 Avenue Crocker      #REF!  70,325  4Q-2014  1Q-2015  #REF!     28159 Avenue Stanford      #REF!  18,074  4Q-2014  2Q-2015  #REF!     TOTAL/WEIGHTED AVERAGE      #REF!  88,399      #REF!                        FUTURE REPOSITIONING:                   15140 & 15148 Bledsoe St.      #REF!  77,118      #REF!                        Fourth Quarter 2014                  Page 23 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  December 31, 2014" Jun-14  Birch  2610 & 2701 S. Birch Street  OC - Airport  98,105  $11.0   100%  #REF! Jun-14  Dupont  4051 Santa Ana St. & 701 Dupont Ave.  Inland Empire West  111,890  $10.2   100%  #REF! Jun-14  9755 Distribution Ave  9755 Distribution Ave  San Diego - Central  47,666  $5.4   100%  #REF! Jun-14  9855 Distribution Ave  9855 Distribution Ave  San Diego - Central  60,819  $8.5   100%  #REF! Jun-14  9340 Cabot Drive  9340 Cabot Drive  San Diego - Central  86,564  $11.0   84%  #REF! Jun-14  9404 Cabot Drive  9404 Cabot Drive  San Diego - Central  46,846  $6.4   100%  #REF! Jun-14  9455 Cabot Drive  9455 Cabot Drive  San Diego - Central  96,840  $12.1   84%  #REF! Jun-14  14955-14971 E Salt Lake Ave  14955-14971 E Salt Lake Ave  LA - San Gabriel Valley  126,036  $10.9   100%  #REF! Jun-14  5235 Hunter Ave  5235 Hunter Ave  OC - North  119,692  $11.3   100%  #REF! Jun-14  3880 W Valley Blvd  3880 W Valley Blvd  LA - San Gabriel Valley  108,703  $9.6   100%  #REF! Jun-14  1601 & 1621 Alton Pkwy  1601 & 1621 Alton Pkwy  OC - Airport  124,000  $13.3   40%  #REF! Jul-14  #REF!  #REF!  LA - San Fern. Valley  100,500  $11.0   100%  #REF! Jul-14  Chatsworth Industrial Park  21040 Nordoff St.; 9035 Independence Ave.; 21019-21045 Osborne St.  LA - San Fern. Valley  153,212  $16.8   100%  #REF! Jul-14  Avenue Kearny  #REF!  LA - San Fern. Valley  138,980  $11.5   100%  #REF! Aug-14  #REF!  #REF!  LA - San Fern. Valley  55,516  $5.1   65%  #REF! Sep-14  #REF!  #REF!  LA - San Fern. Valley  319,348  $30.5   100%  #REF! Nov-14  679 Anderson  679-691 S. Anderson St.  LA - Central  47,490  $6.5   100%  #REF! Nov-14  7900 Nelson Rd.  7900 Nelson Road  LA - San Fern. Valley  203,082  $24.3   0%  #REF! Dec-14  10509 Business Dr.  10509 Business Dr.  Inland Empire West  130,788  $9.0   100%  #REF! Dec-14  13231 Slover Ave  13231 Slover Ave  Inland Empire West  109,463  $7.6   100%  #REF! Dec-14  240 Ivy Ave.  240 West Ivy Ave.  LA - South Bay  45,685  $5.9   100%  #REF! Dec-14  3000-3150 Paseo Mercado  3000-3150 Paseo Mercado  Ventura County  132,187  $11.6   86%  #REF! Dec-14  2350-2380 Eastman Ave  2350-2380 Eastman Avenue  Ventura County  55,296  $6.0   93%  #REF! Dec-14  1800 Eastman Ave  1800 Eastman Avenue  Ventura County  33,332  $3.3   100%  #REF! Dec-14  2360-2364 E. Sturgis Rd  2360-2364 E. Sturgis Road  Ventura County  49,624  $4.1   96%  #REF! Dec-14  201 Rice Avenue  201 Rice Avenue  Ventura County  137,785  $13.7   97%  #REF! Dec-14  11120-11160 Hindry Ave  11120, 11160, 11200 Hindry Ave  LA - South Bay  63,654  $11.9   88%  #REF! Dec-14  6970-7374 Convoy Court  6970-7170 and 7310-7374 Convoy Court  San Diego - Central  187,763  $32.3   98%  #REF!                Dispositions:               Date  Property  Address  Submarket  SF  "Sale Price ($ 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   Jan-14  Kaiser  1335 Park Center Drive  San Diego - North  124,997  $10.1   User sale   Mar-14  Madera - Office  2900 N. Madera Road  LA - San Fern. Valley  63,305  $4.4   Non core business   Aug-14  Zenith  500-560 Zenith Dr.  Other  37,992  $1.8   Non-strategic location                  Fourth Quarter 2014              Page 24 Supplemental Financial Reporting Package              

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Net Asset Value Components     at 12/31/14    (unaudited and in thousands, except share count)      Net Operating Income          ProForma Net Operating Income (NOI)(1)(2)   For the Three Months Ended December 31, 2014  Total operating revenues    $19,370   Property operating expenses    (5,477)  Pro forma effect of acquisitions(3)    1,169   ProForma NOI    15,062   Fair value lease revenue    115   Straight line rent adjustment    (595)  ProForma Cash NOI    $14,582        Balance Sheet Items          Other assets and liabilities   December 31, 2014  Cash and cash equivalents    $8,606   Notes receivable    13,137   Rents and other receivables, net    1,812   Other assets    3,800   Acquisition related deposits    2,110   Accounts payable, accrued expenses and other liabilities    (11,304)  Dividends payable    (5,244)  Tenant security deposits    (8,768)  Prepaid rents    (1,463)  Total other assets and liabilities    $2,686        Debt and Shares Outstanding          Total consolidated debt(4)    $357,076   Common shares outstanding    43,382,425   Operating partnership units outstanding    2,323,344        (1) For a definition and discussion of non-GAAP financial measures, see the definitions section beginning on page 27 of this report.     (2) ProForma Net Operating Income as calculated does not reflect the potential incremental value from properties and space under repositioning.  See page 23 for additional details.     (3) Represents the estimated impact of Q4'14 acquisitions as if they had been acquired October 1, 2014.       (4) Excludes the net loan premium of $30.          Fourth Quarter 2014    Page 25 Supplemental Financial Reporting Package    

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Fixed Charge Coverage Ratio     at 12/31/14    (unaudited and in thousands)                   For the Three Months Ended December 31, 2014  Total revenues    $19,858   Property expenses    (5,477)  General and administrative    (3,486)  Expenses from discontinued operations    -     Recurring operating EBITDA (excluding discontinued operations and joint ventures)    10,895   Recurring cash distributions from unconsolidated joint ventures    89   Non-cash above (below) market lease adjustments    115   Recurring Operating EBITDA    11,099   Straight line rent adjustment    (595)  Maintenance Capital Expenditures    (908)  Tenant improvements - New Leases - 2nd Generation     (570)  Tenant improvements - Renewals    (53)  Leasing Commissions & Lease Costs - New Leases - 2nd Generation    (83)  Leasing Commissions & Lease Costs - Renewals    (212)  Cash flow for fixed charge coverage calculation    $8,678        Interest expense calculation detail:     Interest expense    $1,655   Interest expense from discontinued operations    -     Capitalized interest    42   Cash interest expense    $1,697        Fixed Charge Coverage Ratio   5.1x  Fourth Quarter 2014    Page 26 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 net income (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 compensation 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 2014  Page 27 Supplemental Financial Reporting Package  

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Definitions / Discussion of Non-GAAP Financial Measures         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.      Proforma NOI: Proforma NOI is calculated by adding to NOI the estimated impact of current period acquisitions as if they had been acquired at the beginning of the reportable period.  These estimates do not purport to be indicative of what operating results would have been had the acquisitions actually occured at the beginning of the reportable period and may not be indicative of future operating results.      Properties Under Repositioning: Typically defined as properties where a significant amount of space is held vacant in order to implement capital improvements that improve the market rentability and leasing functionality of that space.  Considered completed once investment is fully or nearly fully deployed and the property is marketable for leasing.       Recurring Funds From Operations (Recurring FFO): We calculate Recurring FFO by adjusting FFO to exclude the effect of non-recurring expenses and acquisition expenses.      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. Our Same Property Portfolio is a subset of our consolidated portfolio and includes properties that were wholly-owned by us during the entire span of both periods being compared.  The Company’s computation of same property performance may not be comparable to other REITs.      Space Under Repositioning: Defined as space held vacant in order to implement capital improvements to change the leasing functionality of that space.  Considered completed once the repositioning has been completed and the unit is marketable for leasing.      Stabilized Same Property Portfolio: Our Stabilized Same Property Portfolio represents the properties included in our Same Property Portfolio, adjusted to exclude spaces that were under repositioning.       Uncommenced Leases: Reflects signed leases that have not yet commenced as of the reporting date.   Fourth Quarter 2014  #REF! Supplemental Financial Reporting Package